HF 2028

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; creating an early retirement incentive for school
district employees for school districts experiencing declining enrollment;
appropriating money.

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

Section 1. new text begin EARLY RETIREMENT INCENTIVES FOR DISTRICTS WITH
DECLINING ENROLLMENT.
new text end

new text begin Subdivision 1. new text end

new text begin District eligibility. new text end

new text begin A school district that serves fewer students in
average daily membership in fiscal year 2007 than in fiscal year 2006, and fewer students
in average daily membership in fiscal year 2006 than in fiscal year 2005 is eligible to offer
an employee an early retirement benefit under this section.
new text end

new text begin Subd. 2. new text end

new text begin Qualifying employee. new text end

new text begin The board of directors of a school district may grant
an employee with at least 25 years of allowable service credit in the applicable pension
plan an early retirement incentive under subdivisions 3, 4 and 5. The qualifying employee
must terminate employment with the district after the effective date of this section and
before September 1, 2007.
new text end

new text begin Subd. 3. new text end

new text begin Employee benefit; additional service credit. new text end

new text begin (a) An employee with at
least 25 years of allowable service credit in the applicable pension plan who accepts
an early retirement under this section may purchase up to two additional years of
allowable service credit from the applicable pension plan. To do so, the former employee
must pay the member contributions to the pension plan annually in a manner and in
accord with a schedule specified by the executive director of the applicable fund. If the
former employee makes the member contribution, the board shall make the applicable
employer contribution. The salary used to determine these contributions is the salary of
the employee in the last year that the former employee was employed by the district.
During the period of continuing member and employer contributions, the person is not
considered to be an active member of the applicable pension plan, is not eligible for
any active member disability or survivorship benefit coverage, and is not included in
any postemployment termination benefit plan changes unless specifically authorized to
do so by other legislation.
new text end

new text begin (b) Continued eligibility to purchase service credit under this subdivision expires if
the qualifying former employee is subsequently employed during the service purchase
period by a public employer with retirement coverage under a pension plan specified in
Minnesota Statutes, section 356.30, subdivision 3.
new text end

new text begin Subd. 4. new text end

new text begin Employee benefit; employer-paid health insurance. new text end

new text begin The board may
offer a former employee continued employer-paid health insurance coverage. Coverage
may not extend beyond the earliest of:
new text end

new text begin (1) age 65;
new text end

new text begin (2) the former employee's receipt of Medicare; or
new text end

new text begin (3) the end of the first month in which the employee is eligible for employer-paid
health insurance coverage from a new employer.
new text end

new text begin For purposes of this subdivision, "employer-paid health insurance coverage" means
medical, hospitalization, or health insurance coverage provided through an insurance
company that is licensed to do business in the state and for which the employing unit pays
more than one-half of the cost of the insurance premiums.
new text end

new text begin Subd. 5. new text end

new text begin Employee benefit; cast payment for specified purposes. new text end

new text begin The board may
make a payment of up to $....... to the qualifying employee. The payment must be used:
new text end

new text begin (1) for deposit in the employee's account in the health care savings plan established
by Minnesota Statutes, section 352.98; or
new text end

new text begin (2) notwithstanding Minnesota Statutes, section 352.01, subdivision 11, or 354.05,
subdivision 13, whichever applies, for purchase of service credit for unperformed service
sufficient to enable the employee to retire under Minnesota Statutes, section 352.116,
subdivision 1, paragraph (b); 353.30; or 354.44, subdivision 6, paragraph (b), whichever
applies or, if the employee uses money from a deferred compensation account that,
combined with the payment would be sufficient to purchase enough service credit to
qualify for retirement under the applicable retirement plan. The cost to purchase service
credit under this subdivision must be made in accordance with Minnesota Statutes, section
356.551.
new text end

new text begin Subd. 6. new text end

new text begin Early retirement incentive aid. new text end

new text begin A school district that offers an early
retirement incentive under this section qualifies for state aid equal to $....... times the
number of qualifying employees that accept early retirement under this section. This aid is
available for fiscal years 2008 and 2009 only.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2008 and $....... in fiscal year 2009 are appropriated from the
general fund to the commissioner of education for payment of early retirement incentive
aid under section 1.
new text end