Tax Aids and Credits

Pension Aids - PERA Aid

Statewide Outcome(s):

PERA Aid supports the following statewide outcome(s).

Efficient and accountable government services.

Context:

PERA aid is paid to any county, city, town or special taxing district with an account or accounts in the Public Employees Retirement Association (PERA). It is intended to offset the cost of the increase to the PERA employer contribution rates that were effective beginning in fiscal year 1998.

Funding Source: State General Fund.

Strategies:

Provide a state aid to cities, counties, towns and other non-school jurisdictions to offset a 1998 employer contribution rate increase for the Public Employees Retirement Association.

The aid is equal to 0.7 percent of the jurisdiction’s fiscal year 1997 PERA payroll. The amounts paid have remained the same from year to year, but could potentially decrease in the future if the current PERA payroll drops significantly below the fiscal year 1997 level.

The aid is scheduled to terminate on June 30, 2020.

Results:

State assistance helps increase affordability of local government employee pensions.

Performance Measures Notes:

Compares payable year 2009 (previous) to 2011 (current).