Defined Benefit Plans (DBP) provide retirement benefits to public employees who meet the eligibility requirements set in law. Members receive a lifetime defined benefit payment, or pension, at retirement.
Membership is mandatory for every employee of a local government or school district who is expected to have monthly earnings of more than $425, unless a valid exclusion applies. Monthly salary is calculated by pay date.
Generally, all full-time and most part-time employees will be enrolled immediately upon hire. Employees with variable pay become eligible in the first month their earnings exceed $425. Enrollment and deductions should start with the paycheck that caused the monthly earnings to exceed $425.
Once an employee is eligible for PERA coverage, their membership continues until termination of employment with that employer. This is true even if their earnings fall below the salary threshold in subsequent months.
Coordinated Plan
Members of PERA’s largest plan include employees from cities, counties, townships, and school districts who perform the work of public service.
Minnesota statutes allow specific positions a choice between the Coordinated Plan and Defined Contribution Plan when monthly earnings exceed $425—city manager, physician, and non-governing elected official.
Correctional Plan
Members of this plan are certified as eligible by their employer and responsible for the security, custody, and control of local government correctional facilities and inmates.
Police & Fire Plan
Membership is limited to include full-time police officers and firefighters who meet specific job-related duties. Part-time police officers and firefighters participate in the Coordinated Plan by default unless the employer chooses to pass a resolution to provide P&F coverage. Sample resolutions are located with other PERA forms.
