It may be the case that no problems with federal tax qualification will occur providing the plan s membership group is primarily public. Within PERA, various groups have at times been included for plan coverage where the group is quasi-public or private sector in nature. At one point in time, coverage was provided to employees of the Suburban Health Nurses Association. This latter organization no longer exists. General Plan, and would authorize Dakota County to provide financial and accounting services to Metropolitan Inter-County Association employees.
Local approval is required.
The issue is the nature of the proposed new coverage group and whether the group is sufficiently public in nature to justify inclusion in a public sector plan. The LCPR may wish to hear brief testimony from PERA s Executive Director regarding any reservations she may have regarding the proposal, in addition to any testimony from a representative of the proposed coverage group. Match between type of employment and the plan. In addition to questions of whether the group is sufficiently public in nature to justify coverage, the LCPR may also wish to inquire about the approximate salary levels of the various employees, turnover, and whether the organization is likely to continue for a prolonged or indefinite period. If turnover is high or if there is a fair chance that the organization may not endure for the long term, the employees who do gain access to PERA may never vest, and even if they do vest, the best option may be to take a refund.