HF 950

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:43am

A bill for an act
relating to retirement; authorizing the Public Employees Retirement Association
to offer a postretirement option for members of the public employees retirement
general plan; proposing coding for new law in Minnesota Statutes, chapter 353.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [353.371] POSTRETIREMENT OPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) This section applies to a terminated basic or
coordinated member who:
new text end

new text begin (1) for at least the five years immediately preceding separation under clause (2), was
regularly scheduled to work 1,044 or more hours per year in a position covered by the
pension plan administered by the Public Employees Retirement Association;
new text end

new text begin (2) terminated public employment as defined under section 353.01, subdivision 11a;
new text end

new text begin (3) at the time of termination under clause (2), was at least age 62 and met the age
and service requirements necessary to receive a retirement annuity from the plan and
satisfied requirements for the commencement of the retirement annuity;
new text end

new text begin (4) agrees to accept a postretirement option position with the same or a different
governmental subdivision, working a reduced schedule that is both:
new text end

new text begin (i) a reduction of at least 25 percent from the employee's number of previously
regularly scheduled work hours; and
new text end

new text begin (ii) 1,044 hours or less in public; and
new text end

new text begin (5) is not eligible for participation in the state employee postretirement option
program under section 43A.346.
new text end

new text begin (b) For purposes of this section, the length of separation requirement and termination
of service requirement prohibiting return to work agreements under section 353.01,
subdivisions 11a and 28, are not applicable.
new text end

new text begin Subd. 2. new text end

new text begin Annuity reduction not applicable. new text end

new text begin Notwithstanding any law to the
contrary, the provisions of section 353.37 governing annuities of reemployed annuitants
shall not apply for the duration of a terminated member's employment in a postretirement
option position.
new text end

new text begin Subd. 3. new text end

new text begin Governing body discretion. new text end

new text begin The governing body of the governmental
subdivision has sole discretion to determine if and the extent to which a postretirement
option position under this section is available to a terminated member. Any offer of such
a position must be made in writing to the person by the governing body's designee in a
manner prescribed by the executive director.
new text end

new text begin Subd. 4. new text end

new text begin Duration. new text end

new text begin Postretirement option employment shall be for an initial period
not to exceed one year. At the end of the initial period, the governing body has sole
discretion to determine if the offer of a postretirement option position will be renewed,
renewed with modifications, or terminated. Postretirement option employment may be
renewed for periods of up to one year, not to exceed a total duration of five years. A
person may not be employed in one postretirement option position or a combination of
postretirement option positions under this section for a total of more than five years.
new text end

new text begin Subd. 5. new text end

new text begin Copy to fund. new text end

new text begin The appointing authority shall provide the Public
Employees Retirement Association with documentation, as prescribed by the executive
director, of the terms of any agreement entered into with a member who accepts continuing
employment with the appointing authority under the terms of this section, and any
subsequent renewal agreement.
new text end

new text begin Subd. 6. new text end

new text begin No service credit. new text end

new text begin Notwithstanding any law to the contrary, a person may
not earn service credit in the Public Employees Retirement Association for employment
covered under this section, and employer contributions and payroll deductions for
the retirement fund must not be made based on earnings of a person working under an
agreement covered by this section. No change shall be made to a monthly annuity or
retirement allowance based on employment under this section.
new text end

new text begin Subd. 7. new text end

new text begin Subsequent employment. new text end

new text begin If a person has been in a postretirement option
position and accepts any other position in public service beyond the period of time for
which the person participated in the postretirement option provided under this section, the
person may not earn service credit in the Public Employees Retirement Association, no
employer contributions or payroll deductions for the retirement fund shall be made, and
the provisions of section 353.37 shall apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and sunsets June 30, 2011.
new text end