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<br />Public Employees Retirement Association of MN <br /> <br />Page 3 of3 <br /> <br />Employee payments for past service are recorded in the participant's account as taxed <br />contributions. Consequently, the participant will not have tax liability for these contributions upon <br />withdrawal. <br /> <br />Because the OCP is tax-qualified, enrollment in the plan may lower the maximum contribution <br />participants may make to a deferred compensation plan and may also, depending upon income level, <br />eliminate the tax deductibility of contributions to an individual retirement account (IRA). <br /> <br />Administrative Charges <br />Two percent of the employer contributions to the OCP (2 cents for each $1.00 contributed by your <br />employer) is used by PERA for administrative costs of the plan. In addition, 0.25 percent (one quarter of <br />one percent) of the value of your shares is also retained by PERA each year to help defray the costs of <br />administering the plan. This asset-based charge amounts to $2.50 for each $1,000 in your account. <br /> <br />60 Empire Drive, Suite 200, St. Paul, MN 55103/1-800-652-9026 or 651-296-7460 / FAX 651-297-2547 <br /> <br />http://www.mnpera.org/index.asp?Type=B_ BASIC&SEC={ IF154A6F -38A2-4426-BDC9-50 1... 6/7/2007 <br />