In all 50 states in the United States, public sector employees have access to at least one type of state pension plans. In some states, such as MN, there may be several different plans at the federal, state, and even local levels. For public employees in MN, PERA, or the Public Employees Retirement Association provides both retirement benefits as well as disability benefits for members who qualify.
The Plan Basics
In most cases, PERA retirement is provided to employees who are full or part-time. Full-time employees must have yearly earnings that exceed $5100 for 12 months, or that are at least $3800 for employees that work the school year. If an employee does not meet these minimum earnings, the employer can exclude the employee; otherwise, the employer is required to complete the enrollment process and make the required contributions to the plan.
All employees that are considered to be active members of a PERA retirement plan should receive a statement on an annual basis. This provides information on their retirement eligibility, and it should be reviewed on an annual basis.
Refunds and Retirement Waiting Period
All employees applying for PERA retirement or a PERA refund after termination but before retirement, must wait at least 30 days and be out of public employment during that time to receive benefits. For a refund, the amount contributed to the fund, as long as the individual is vested, is provided in a lump sum. This eliminates the possibility of collecting retirement benefits at a later time. Keep in mind; it is only the employee’s contributions that are refunded, the employer contributions are maintained in the system.
There are several issues involved in the choice of a refund or even when to retire. If you have questions or do not understand the information provided by PERA, talking to an MN attorney familiar with the PERA application process for retirement or refunds is an effective step in the process.
