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<br />Public Employees Retirement Association of MN <br /> <br />Page 1 of3 <br /> <br />Back to Web Site <br />Public Employees Retirement Association of MN <br />Creating opportunities for a successful retirement <br /> <br />Elected Officials <br /> <br />The Defined Contribution Plan (DCP) administered by PERA is a tax-deferred retirement savings <br />program for elected public officials (and public physicians and ambulance service personnel) in which <br />participants determine how employee and employer contributions are to be invested through the <br />purchase of shares in accounts of the Minnesota Supplemental Investment Fund. Total contributions plus <br />investment performance determine the ultimate benefit, which is paid as a lump sum upon withdrawal. <br /> <br />Eligibility <br />All local public officials (except sheriffs) elected to their positions by the public at large are eligible to <br />participate in the plan. Officials appointed to vacant elective positions are also eligible for the plan for the <br />remainder of the office's term. DCP is the only PERA retirement plan available to officials elected to <br />governing body positions (ex: city council, county board, school board, etc.) after June 20,2002. <br /> <br />Participation in the plan is completely voluntary for each individual and there is no minimum salary <br />requirement. Elected officials participating in the plan may choose to discontinue participation at any <br />time. <br /> <br />How It Works <br />Elected public officials contribute five percent of their elective salary and their employers contribute an <br />identical amount. Elective salary fncludes only compensation the official receives for services rendered in <br />the position to which the official was elected by the public at large. (Among other things, elective salary <br />does not include compensation or reimbursement for expenses. Nor does it include compensation <br />received by the official for services rendered to an entity or agency in a position not filled by election of <br />the public at large.) I <br /> <br /> <br />Plan participants deSig~ate a percentage of total contributions to be placed in one or more of seven <br />accounts of the MinnesCDta Supplemental Investment Fund. This investment fund is administered by the <br />Minnesota State Board Ef Investment and includes the Income Share Account, the Growth Share <br />Account, the Common ~tock Index Account, the International Share Account, the Money Market <br />Account, the Bond MarRet Account, and the Fixed Interest Account. The investment goals of these <br />accounts and the return~ the accounts have actually achieved are described in Investment Options, <br />Minnesota Supplemental Investment Fund, published by the Minnesota State Board of Investment. <br />I ., <br />, <br />, <br /> <br />Contributions made by the elected official and matched by the employer are combined and used to <br />purchase shares in accounts selected by the participant. Shares belong entirely to the elected official <br />participant. Except for the Money Market and Fixed Interest Accounts, whose shares are always one <br />dollar each, shares are purchased at market prices. <br /> <br />Interest paid by the Money Market and Fixed Interest Accounts is reinvested in additional shares of the <br />respective .accounts. Interest and dividends earned by the stocks and bonds held in the other five <br />accounts are used to purchase additional stocks and bonds in those accounts. These purchases and the <br />gains and losses in market value of the stocks and bonds held in the accounts are reflected in the value <br />of the accounts' shares, in much the same way as with mutual funds. <br /> <br />DCP participants may change their investment selections any time and may also transfer all or portions <br /> <br />http://www.mnpera.org/index.asp?Type=B_BASIC&SEC={ IF I 54A6F -38A2-4426-BDC9-50 1... 6/7/2007 <br />