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investment returns on pension plan assets, <br />the long-term financial health of <br />Minnesota's public employee pensions is <br />reliant upon numerous statutory and <br />administrative guidelines that impact the <br />level of benefits paid to retirees, and <br />committed to employees. The first <br />consideration whenever modifying any of <br />these guidelines must be the long-term <br />financial health of the plan. <br />Response: The League of Minnesota <br />Cities opposes any benefit improvements <br />for retirees or active employees until the <br />financial health of the General Plan and <br />the Police and Fire Plan is restored. <br />The League also supports the following <br />plan modifications that will help align <br />PERA contributions and costs, and <br />reduce the need for additional <br />contribution increases: <br />a) The League believes the legislative <br />intent of "in -line of duty" disability <br />retirement benefits for police officers <br />and firefighters was to provide special <br />protection for police officers and <br />firefighters when they are performing <br />the type of duties that are uniquely <br />required for their jobs. The League <br />supports the statutory changes made <br />to Minn. Stat. § 353.01 in 2007 that <br />separate injuries resulting from <br />"hazardous duties" from injuries <br />resulting from "non -hazardous <br />duties" for purposes of police and fire <br />disability retirement benefits. The <br />League will monitor the effects of the <br />2007 changes as they are <br />implemented. <br />b) The PERA eligibility guidelines must <br />be modified to take into account <br />temporary, seasonal, unique part- <br />time, and student employment <br />situations in cities —particularly in <br />recreational operations. The plan <br />should be modified to use pro -rated <br />service credit, which would make <br />PERA consistent with the other major <br />Minnesota pension plans. The League <br />supports a comprehensive review of <br />exclusions with an eye toward <br />simplifying current eligibility <br />guidelines. Such a review should also <br />include a possible revision of current <br />penalties for employers that fail to <br />report covered employees to ensure <br />that these penalties are not overly <br />harsh and punitive. <br />c) The League opposes the expansion of <br />the PERA corrections plan to include <br />dispatchers due to the substantial <br />differences between the dispatchers <br />and the other positions covered by this <br />plan. <br />The League supports the following <br />policies to the extent that their <br />implementation would not negatively <br />impact the financial health of the pension <br />funds nor result in employer contribution <br />increases: <br />a) The League supports the transfer of <br />all school district employees out of the <br />PERA General Plan and into another <br />fund that is more appropriate for <br />school district employees. <br />b) Cities should be allowed to continue to <br />effectively use retirees in <br />reemployment situations. The League <br />supports policy changes which would <br />include an increase in the earnings <br />threshold for such retirees. The <br />League supports keeping the required <br />break in service at 30 days and <br />opposes suspending payments to <br />retirees. <br />League of Minnesota Cities <br />2015 City Policies Page 78 <br />