Defined Contribution Plans
The Defined Contribution Plans (DCP) administered by PERA is exclusively for physicians, elected local governmental officials, city managers, and governmental volunteer ambulance service personnel.
Members of the DCP designate a percentage of total contributions to be placed in one or more of seven accounts of the Minnesota Supplemental Investment Fund. Employee and employer contributions are combined and used to purchase shares in the accounts selected by the employee. Upon termination of service, a DCP member is entitled to a lump-sum payment of the values of shares held, with interest or dividends that have accrued. No monthly retirement benefits are available.
PERA’s Defined Contribution Plans are tax-qualified plans under Section 401(a) of the Internal Revenue Code. As a result, federal and state taxes on DCP contributions are deferred until the member withdraws the funds.