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to contest or appeal payment of <br />unemployment benefits as part of a <br />settlement agreement at termination of <br />employment. Because most cities are <br />"reimbursement employers," the benefits <br />paid to the employee are at the direct <br />expense of the city. <br />Response: Public sector temporary or <br />seasonal employees should not be eligible <br />for re-employment benefits. In addition, <br />cities (as reimbursement employers) <br />should be allowed to enter into <br />agreements with employees not to <br />contest/appeal payment of unemployment <br />benefits as part of a settlement <br />agreement. <br />HR -8. Public Employee Defined <br />Benefit Pension Plans <br />Issue: Public pensions are an important <br />employee benefit that can help cities attract <br />and retain employees. However, unlike <br />salary and other employee benefits that are <br />established by each city, the pension <br />contribution rates and benefit levels are set <br />by the state legislature. Benefit levels and <br />plan costs must be carefully balanced to <br />assure long-term sustainability of the <br />pension plans and affordability to employers <br />and employees. <br />Recent adjustments to balance PERA plan <br />costs have largely focused on contribution <br />increases rather than benefit adjustments. On <br />January 1, 2015, the employer and employee <br />contribution rates for the PERA General <br />Plan each increased by 0.25% of salary, <br />resulting in the current employer rate of 7.5 <br />percent of salary and an employee rate of <br />6.5 percent of salary. For PERA Police and <br />Fire (P&F) employees, the employer <br />contribution was increased to 16.2% and the <br />employee contribution was increased to <br />10.8% beginning January 1, 2015. <br />For the PERA General Plan, an additional <br />one percent employer contribution is <br />required under Minn. Stat. § 353.27, subd. <br />3a, which will continue until the actuarial <br />value of the plan assets equal or exceed the <br />liabilities. Employees do not have a similar <br />obligation to help the General Plan reach full <br />funding. When the additional employer <br />contribution was increased to 0.43 percent in <br />1997, the state instituted a PERA aid <br />program for employers to partially offset the <br />cost of increased employer contributions. <br />However, the PERA aid payment rate is <br />frozen at 1999 levels, while the additional <br />employer contribution has since increased <br />from .43% to 1.0%. <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 />For the PERA General Plan, any further <br />increases in employer contributions <br />should only be considered by the <br />Legislature after other measures have <br />been considered, including: <br />a) An increase in employee <br />contributions so that employees and <br />employers truly bear the same <br />responsibility to bring the pension <br />plans to full funding; or <br />b) The removal of the cap on PERA <br />Pension Aid payments so the state <br />equalizes the contributions of <br />employees and employers. <br />The League also supports: <br />a) Modifications to the PERA eligibility <br />guidelines to take into account <br />temporary, seasonal, unique part- <br />time, and student employment <br />situations in cities, particularly in <br />League of Minnesota Cities <br />2016 City Policies Page 77 <br />