State law identifies specific conditions that exclude an employee or position from mandatory participation in a Defined Benefit Plan (DBP). An exclusion code is a three-digit number that identifies why an employee is excluded from PERA. A complete list of codes is available in Chapter 3 of the Employer Manual.
Each exclusion code falls into one of four categories based on the type of exclusion:
Category
Reason for Exclusion
ZERO (0) CODES
Affiliation with another entity: Full time student under age 23 (001), PERA retiree/disabilitant (003)
ONE (1) CODES
Type of position held: Temporary under six months (101), Election officers (105), Seasonal under six months (106)
CODE 201
Optional DCP coverage for specific positions or elected officials as defined in statute
CODE 301
Monthly pay doesn’t exceed the threshold ($425)
Determining Eligibility
To determine membership eligibility, start with the zero (0) codes (affiliation with another entity) and review in sequence. If you find an exclusion that applies, stop—use that code to exclude the employee. If not, continue to the next group. If you review all four categories and no exclusions apply, the employee is eligible and must be enrolled immediately.
When an exclusion code is no longer valid
An excluded employee may become eligible for membership after a status change such as:
A full-time student turning 23 or no longer attending school
Employment changes, such as extension of temporary or seasonal employment beyond six months
The review sequence should be repeated any time the employee’s reason for exclusion ends. If no other code applies, PERA membership is required.
