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r <br />I- The League of Minnesota Cities opposes "high, year" benefit <br />five" formula. The adoption in 1973ade Lhe ate pension benefits for <br />formula for PERA has 1pprovidedu err.ther shortening of the averaging <br />career municipal mp Y <br />windfalls for some service <br />a members andmaimultiply <br />period would create <br />mize <br />opportunities for manipulation Of <br />al contributions to oto themfund. <br />pension benefits without proportion <br />2. Any increases in PERA benefits should be granted only to the <br />extent that proposed contributions and currennion t reserves aone re <br />sufficient to fully fund the increases in the oplof the fPERA <br />or. more <br />recognized pension actuaries who are independent <br />organization. Any benefit increase or contribution reductions <br />permitted by excess reserves or excessive current contributions or <br />such uas to <br />combinations of the two should beaopercentageofsoverallbenefit employeehe <br />employer and employee equally a <br />;salary. _ <br />3. PERA should not be authorized to create any additional health care <br />plans for retired employees. HoweI'.r, direct transfer of premiums <br />request of <br />from PERA �o the Minnesota Comprehensive Health Association or e <br />new statewide insurance plan should be authorized at the requ <br />any PERA member from the member's own account. <br />The present PERA retirement system n effect provides a cafeteria <br />plan approach to retirement benefits. Those who neAurchasouthese <br />retirement annuity or life insurance <br />actuariallyrreduced purchase <br />retirement <br />benefits from PERA , accepting health <br />benefits. Retirees who are not eligible to remainare the group can <br />Insurance plan of the local unit from which they are adequate to <br />always use their retirement funds to the extent they <br />buy health coverage through the Minnesota Comprehensive Health <br />Association or the statewide <br />zof ageuandclessan'Personswhen t65sandeover� for <br />persons that are 65 y <br />without automatic medicare coverage can buy that coverage at <br />reasonable cost. <br />ially benefitted classes of <br />4. Legislation creating new, spec <br />ees <br />employees, as in the case of the newly created correctional employees <br />can <br />plan, should not be implemented <br />becauses for theinclusionroups of employees can <br />make equally cotl,pelling <br />-1973 <br />5. If any increase, is but lrather <br />the t <br />resulting ro riation from the state general `r <br />should be financed by a direct, app p <br />fund. <br />26 - <br />