AFSME Local 602 - MSU Moorhead

How Public Employee Pensions Benefit Minnesota

pension-blegen
A secure etirement gives Janice Blegen the chance to help raise her grandchildren and to sing for senior citizens.

Pensions for most Council 5 members are covered by the Minnesota State Retirement System or the Public Employee Retirement Association. MSRS covers most employees who work for the state, the University of Minnesota and the Metropolitan Council. PERA covers current and former public employees of more than 2,000 local governments and school districts.

  • Minnesota taxpayers pay only 15 cents for every $1 that is paid out in pension benefits. 
  • Every paycheck, AFSCME members pay half of their own pension contribution. 
  • 92 percent of Minnesota’s public employees stay in Minnesota when they retire. They add $3.3 billion to the state economy and create 22,500 additional jobs. 
  • Minnesota’s retired public employees generate $80 million a year more in state and local taxes than public employers pay in pension contributions. 
  • Research shows that defined-benefit pension plans are far more effective than defined-contribution plans: They deliver the same level of benefits but cost half as much.

Source: Retirement Systems of Minnesota: “Measuring the Economic Benefits”

Follow Us!

AFSME Local 602 - MSU Moorhead Logo

Sign Up
Email:
Password:
Remember me