HF 2654

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; raising post-retirement 
  1.3             earnings limitations for certain plan participants; 
  1.4             amending Minnesota Statutes 1999 Supplement, sections 
  1.5             136F.48; 352.1155, subdivisions 1 and 4; and 354.445. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.8   136F.48, is amended to read: 
  1.9      136F.48 [EMPLOYER-PAID HEALTH INSURANCE.] 
  1.10     (a) This section applies to a person who:  
  1.11     (1) retires from the Minnesota state colleges and 
  1.12  universities system with at least ten years of combined service 
  1.13  credit in a system under the jurisdiction of the board of 
  1.14  trustees of the Minnesota state colleges and universities; 
  1.15     (2) was employed on a full-time basis immediately preceding 
  1.16  retirement as a faculty member or as an unclassified 
  1.17  administrator in the Minnesota state colleges and universities 
  1.18  system; 
  1.19     (3) begins drawing a retirement benefit from the individual 
  1.20  retirement account plan or an annuity from the teachers 
  1.21  retirement association, from the general state employees 
  1.22  retirement plan or the unclassified state employees retirement 
  1.23  program of the Minnesota state retirement system, or from a 
  1.24  first class city teacher retirement plan; and 
  1.25     (4) returns to work on not less than a one-third time basis 
  2.1   and not more than a two-thirds time basis in the system from 
  2.2   which the person retired under an agreement in which the person 
  2.3   may not earn a salary of more than $35,000 in a calendar year 
  2.4   from employment after retirement in the system from which the 
  2.5   person retired.  
  2.6      (b) Initial participation, the amount of time worked, and 
  2.7   the duration of participation under this section must be 
  2.8   mutually agreed upon by the president of the institution where 
  2.9   the person returns to work and the employee.  The president may 
  2.10  require up to one-year notice of intent to participate in the 
  2.11  program as a condition of participation under this section.  The 
  2.12  president shall determine the time of year the employee shall 
  2.13  work.  The employer or the president may not require a person to 
  2.14  waive any rights under a collective bargaining agreement as a 
  2.15  condition of participation under this section.  
  2.16     (c) For a person eligible under paragraphs (a) and (b), the 
  2.17  employing board shall make the same employer contribution for 
  2.18  hospital, medical, and dental benefits as would be made if the 
  2.19  person were employed full time.  
  2.20     (d) For work under paragraph (a), a person must receive a 
  2.21  percentage of the person's salary at the time of retirement that 
  2.22  is equal to the percentage of time the person works compared to 
  2.23  full-time work.  
  2.24     (e) If a collective bargaining agreement covering a person 
  2.25  provides for an early retirement incentive that is based on age, 
  2.26  the incentive provided to the person must be based on the 
  2.27  person's age at the time employment under this section ends.  
  2.28  However, the salary used to determine the amount of the 
  2.29  incentive must be the salary that would have been paid if the 
  2.30  person had been employed full time for the year immediately 
  2.31  preceding the time employment under this section ends. 
  2.32     (f) A person who returns to work under this section is a 
  2.33  member of the appropriate bargaining unit and is covered by the 
  2.34  appropriate collective bargaining contract.  Except as provided 
  2.35  in this section, the person's coverage is subject to any part of 
  2.36  the contract limiting rights of part-time employees. 
  3.1      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  3.2   352.1155, subdivision 1, is amended to read: 
  3.3      Subdivision 1.  [ELIGIBILITY.] Except as indicated in 
  3.4   subdivision 4, the annuity reduction provisions of section 
  3.5   352.115, subdivision 10, do not apply to a person who: 
  3.6      (1) retires from the Minnesota state colleges and 
  3.7   universities system with at least ten years of combined service 
  3.8   credit in a system under the jurisdiction of the board of 
  3.9   trustees of the Minnesota state colleges and universities; 
  3.10     (2) was employed on a full-time basis immediately preceding 
  3.11  retirement as a faculty member or as an unclassified 
  3.12  administrator in that system; 
  3.13     (3) begins drawing an annuity from the general state 
  3.14  employees retirement plan of the Minnesota state retirement 
  3.15  system; and 
  3.16     (4) returns to work on not less than a one-third time basis 
  3.17  and not more than a two-thirds time basis in the system from 
  3.18  which the person retired under an agreement in which the person 
  3.19  may not earn a salary of more than $35,000 $50,000 in a calendar 
  3.20  year from employment after retirement in the system from which 
  3.21  the person retired.  
  3.22     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  3.23  352.1155, subdivision 4, is amended to read: 
  3.24     Subd. 4.  [EXEMPTION LIMIT.] For a person eligible under 
  3.25  this section who earns more than $35,000 $50,000 in a calendar 
  3.26  year from reemployment in the Minnesota state colleges and 
  3.27  universities system following retirement, the annuity reduction 
  3.28  provisions of section 352.115, subdivision 10, apply only to 
  3.29  income over $35,000 $50,000. 
  3.30     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  3.31  354.445, is amended to read: 
  3.32     354.445 [NO ANNUITY REDUCTION.] 
  3.33     (a) The annuity reduction provisions of section 354.44, 
  3.34  subdivision 5, do not apply to a person who: 
  3.35     (1) retires from the Minnesota state colleges and 
  3.36  universities system with at least ten years of combined service 
  4.1   credit in a system under the jurisdiction of the board of 
  4.2   trustees of the Minnesota state colleges and universities; 
  4.3      (2) was employed on a full-time basis immediately preceding 
  4.4   retirement as a faculty member or as an unclassified 
  4.5   administrator in that system; 
  4.6      (3) begins drawing an annuity from the teachers retirement 
  4.7   association; and 
  4.8      (4) returns to work on not less than a one-third time basis 
  4.9   and not more than a two-thirds time basis in the system from 
  4.10  which the person retired under an agreement in which the person 
  4.11  may not earn a salary of more than $35,000 $50,000 in a calendar 
  4.12  year from employment after retirement in the system from which 
  4.13  the person retired. 
  4.14     (b) Initial participation, the amount of time worked, and 
  4.15  the duration of participation under this section must be 
  4.16  mutually agreed upon by the president of the institution where 
  4.17  the person returns to work and the employee.  The president may 
  4.18  require up to one-year notice of intent to participate in the 
  4.19  program as a condition of participation under this section.  The 
  4.20  president shall determine the time of year the employee shall 
  4.21  work.  The employer or the president may not require a person to 
  4.22  waive any rights under a collective bargaining agreement as a 
  4.23  condition of participation under this section.  
  4.24     (c) Notwithstanding any law to the contrary, a person 
  4.25  eligible under paragraphs (a) and (b) may not, based on 
  4.26  employment to which the waiver in this section applies, earn 
  4.27  further service credit in a Minnesota public defined benefit 
  4.28  plan and is not eligible to participate in a Minnesota public 
  4.29  defined contribution plan, other than a volunteer fire plan 
  4.30  governed by chapter 424A.  No employer or employee contribution 
  4.31  to any of these plans may be made on behalf of such a person. 
  4.32     (d) For a person eligible under paragraphs (a) and (b) who 
  4.33  earns more than $35,000 $50,000 in a calendar year from 
  4.34  employment after retirement due to employment by the Minnesota 
  4.35  state colleges and universities system, the annuity reduction 
  4.36  provisions of section 354.44, subdivision 5, apply only to 
  5.1   income over $35,000 $50,000. 
  5.2      (e) A person who returns to work under this section is a 
  5.3   member of the appropriate bargaining unit and is covered by the 
  5.4   appropriate collective bargaining contract.  Except as provided 
  5.5   in this section, the person's coverage is subject to any part of 
  5.6   the contract limiting rights of part-time employees. 
  5.7