Individuals in Minneapolis considering retirement from the public sector should start early to plan for PERA retirement. While this is typically a very easy process, there are some issues and complex details to the plan that can result in delays for employees, largely due to issues in the record keeping or in changes of employment over the years of service.
All PERA retirement is based on years of service and age. However, other factors can impact this, such as specific types of leave of absence. Paid leave of absence does not impact receiving service credits, so it does not impact the retirement date. On the other hand, unless you agree to make the employer contribution as well as your own, unpaid leaves of absence, including FMLA, parental leave or medical leave will not be considered for service credit.
Retirement Issues
In many cases, Minneapolis employees may be retiring from public sector jobs and moving into working as an independent contractor. However, there is a 30 day break before collecting retirement benefits where the employee cannot work for any public sector employer.
The plan does not allow for the employer and the employee to have an agreement that after the 30 days, the employer will hire the past employee as an independent contractor. This can be a somewhat complex issue, and it can impact PERA retirement eligibility.
In general, it is possible to work for another company in the 30 day break period, but it is critical to make sure that the company is not a PERA-eligible employer or to wait for the 30 days.
With any type of complex PERA retirement, it is a wise decision to talk to a PERA attorney if you have any questions or concerns. This can prevent any violation of the retirement policy and protect your future benefits.
