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recreational operations. These <br />modifications should include the use <br />of pro -rated service credit, which <br />would make PERA consistent with the <br />other major Minnesota pension plans. <br />b) A comprehensive review of exclusions <br />from pension participation with the <br />goal of 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 transfer of all school district <br />employees out of the PERA General <br />Plan and into another fund that is <br />more appropriate for school district <br />employees as long as the change would <br />not negatively impact the financial <br />health of the pension funds nor result <br />in employer contribution increases. <br />The continued authority of cities 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 and <br />supports keeping the required break <br />in service at 30 days and opposes <br />suspending payments to retirees. <br />For PERA Police and Fire, 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 initial increase in the employee <br />contribution of at least 1.0% of salary <br />with subsequent increases split evenly <br />between employee and employer so <br />that the contribution ratio moves <br />toward a more equitable split between <br />employees and employers; or <br />b) An additional state general fund <br />appropriation to fund the deficiency <br />in police and fire pension aid <br />payments so that the state equalizes <br />the contributions of employers and <br />employees. <br />The League also supports: <br />a) Maintaining the statutory changes <br />made to Minn. Stat. § 353.01 in 2007 <br />that 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. <br />b) A thorough study by PERA of the <br />current effects of overtime <br />accumulation and outside employment <br />compensation on individual pension <br />benefits and the overall funding of the <br />plan. The study should also include <br />recommendations on whether the <br />overtime or outside employment <br />should be factored into or excluded <br />from high five average wage <br />calculations. <br />For PERA Corrections Plan the League <br />supports: <br />a) Maintaining the current definition of <br />covered employees for the PERA <br />corrections plan, which does not <br />include dispatchers due to the <br />substantial differences between the <br />dispatchers and the existing <br />corrections positions covered by this <br />plan. <br />For all PERA defined benefit plans the <br />League supports: <br />a) Adjustments to the benefits for active <br />members and retirees to reduce the <br />cost of the plans. <br />b) Requiring special legislation for <br />individual employee pension benefit <br />increases be initiated or approved by <br />League of Minnesota Cities <br />2016 City Policies Page 78 <br />