When DCP Coverage is Mandatory

An individual who is first elected or hired to a position eligible for the Defined Contribution Plan (DCP) can make a one-time election to participate in the DCP within their first 30 days of work in the position. This one-time election is permanent and applies to all current and future service with the same employer.  

However, if the public official or employee previously had PERA coverage with that same employer, they do not have a choice and must participate in the DCP. An exception may apply for positions that would otherwise require Coordinated Plan membership. Contact us if you have questions. 

Example of Mandatory DCP Participation 

Former employee Ari was a member of the Coordinated Plan with Township B and was recently elected as a township supervisor. As an elected official for Township B, Ari must participate in the DCP for their earnings as a supervisor. Township B has contributed to another PERA plan on their behalf, therefore Ari’s DCP participation is required to ensure IRS compliance.