PERA Exclusion Report

The Annual Exclusion Report is a yearly employer report required by the Minnesota Public Employees Retirement Association (PERA). It lists employees and public officials who worked for the employer during the reporting period but were excluded from participation in PERA retirement plans because they were not covered under PERA or another Minnesota public retirement system.

In simpler terms, it’s a way employers officially report people who were employed but not subject to PERA contributions due to specific exclusion criteria.

An employee or elected official is considered excluded from PERA if they worked for the employer during the report period but did not have PERA or another Minnesota public retirement system contribution withheld. Reasons for exclusion typically involve standardized exclusion codes (e.g., temporary status, under certain age/student conditions, elected official with optional coverage, low pay threshold).

PERA provides a detailed set of three-digit exclusion codes that indicate the reason an individual is excluded from PERA membership.

The purpose of PERA Exclusion reporting is to ensure:

• Compliance With Minnesota Law:
  Under Minnesota Statutes §353.27, the head of each employer must annually furnish PERA with an exclusion report listing eligible positions that were not reported for PERA membership. The statute even allows PERA to conduct audits to ensure completeness.

• Accurate Retirement Records:
  PERA uses this report to cross-check that all employees who should have been enrolled and reported for retirement contributions were indeed included in PERA plans, and that any exclusions were properly applied.

• Transparency of Public Officials’ Coverage:
  Employers must also list elected officials or appointed governing body members who were not participating in PERA, often using a specific exclusion code for these roles.

For more information, refer to the Annual Exclusion Reports section in the PERA Employer Manual.

Menu path

From the Human Resources menu, select State. From the State - MN menu, select PERA Exclusion Report.

Submission period

At the end of the fiscal year, by August 31.

Selection rule

Employees who were paid during the fiscal year but did not have any PERA retirement deductions withheld on their most recent check within the fiscal year period are selected and reported.

Prerequisites

• Enter the PERA Employer Number on the Human Resources Profile - State page.

• Enter valid values in the following fields on the Payroll Information - State Required page:

  • PERA Member ID

  • PERA Elig Date

  • Annuitant Type

  • PERA Position

  • PERA Pos Class

  • PERA Exclusion

  • PERA Job Title

• Ensure that the following Employee Information fields are populated with accurate information:

  • General section:

    • Social Security

    • Last Day Worked (for terminated employees)

  • Employment tab:

    • Hire Date

    • Original Hire

  • Payroll tab:

    • Pay Frequency

• Ensure that PERA Retirement deductions are configured.

• Ensure that the User Defined table EX has been configured with the correct PERA exclusion codes.

• Ensure that pay codes are configured with the correct deduction exemptions on the Deductions tab of the Pay Codes page.

•  Employees must have posted check history records within the fiscal year date range.