Retirement Flyer
Retirement represents a major change in your lifestyle. Many people simply base this retirement decision on their birthdate, but there are other factors to consider.
Check out the Retirement Flyer for more information and direct contact to a professional who can assist you in better understanding your options, including Medicare.
Pension
A pension is a type of retirement savings plan with a lifetime benefit. This means once you start collecting it, it pays every month for the rest of your life. The amount of benefit depends on your years of service, your salary and your age. As a local government employee in Minnesota, your pension is a defined benefit plan administered by PERA (Public Employee Retirement Association).
PERA is a public pension fund that serves over 450,000 current and former public employees from over 3,500 local units of government throughout the state of Minnesota. The plan you contribute to is referred to as the General Plan (aka: Coordinated Plan). Both you and your employer automatically contribute to this plan on your behalf each pay period. The money contributed is professionally managed by the Minnesota State Board of Investment.
Contributions:
Employee - 6.5% of employee salary per pay period
Employer - 7.5% of employee salary per pay period
For more information on your pension plan, please visit the website and links below.
Supplemental Insurance
When you turn age 65 or become Medicare-eligible, you may elect to enroll in Medicare with a Supplemental plan. If you have continued Dakota 911 insurance up to that time, you may be eligible to participate in a supplemental plan offered through Dakota 911.
Gallagher Benefits Representative Leif Peterson specializes in Medicare and Supplemental plans and is available for individual consultation at 952/345-2302.
Deferred Compensation
A deferred compensation plan is a voluntary savings plan intended for long-term investing for retirement. Contributing pre-tax dollars to a Deferred Compensation 457 plan is a smart and easy way to supplement retirement income from your pension and social security benefits. Employees have two deferred compensation administrator options, MissionSquare and MNDCP (MN Deferred Compensation Program offered through Minnesota State Retirement System).
No matter which plan you use, the message is the same -
"Contribute something, anything...your future self will thank you!"
2024 Deferred Compensation Contribution Limit: $23,000
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"Age 50" catch-up limit: $7,500
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"Pre-retirement" catch-up limit: $23,000
2024 Roth IRA Contribution Limit: $7,000
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"Age 50" catch-up limit: $1,000
Click here to learn how to grow your savings by contributing to Deferred Compensation.
MissionSquare (previously ICMA)
Your Retirement Specialist: Christina Clemons: cclemons@missionsq.org or 202/759-7039
Roth IRA
A Roth IRA is an Individual Retirement Account to which you contribute after-tax dollars. While there are no current-year benefits, your contributions and earnings can grow tax-free. Employees are eligible to enroll in a Roth IRA, administered by MissionSquare.
MissionSquare (previously ICMA)
A Roth is the only IRA currently sponsored.