HF 3246

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/10/2022 02:06pm

A bill for an act
relating to unemployment; clarifying pension offset; amending Minnesota Statutes
2020, section 268.085, subdivision 3c.

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

Section 1.

Minnesota Statutes 2020, section 268.085, subdivision 3c, is amended to read:

Subd. 3c.

Pension or retirement payment offset.

(a) An applicant is not eligible to
receive unemployment benefits for any week the applicant is receiving, has received, will
receive, or has applied for pension, retirement, or annuity payments from any plan contributed
to by a base period employer including the United States government. The base period
employer is considered to have contributed to the plan if the contribution is excluded from
the definition of wages under section 268.035, subdivision 29. new text begin This paragraph does not
apply if a base period employer previously contributed to the applicant's pension plan but
is no longer contributing to the applicant's pension plan on behalf of the applicant due to
the applicant's retirement from the base period employer.
new text end

(b) If the pension, retirement, or annuity payment is paid in a lump sum, an applicant is
not considered to have received a payment if:

(1) the applicant immediately deposits that payment in a qualified pension plan or
account; or

(2) that payment is an early distribution for which the applicant paid an early distribution
penalty under the Internal Revenue Code, United States Code, title 26, section 72(t)(1).

(c) This subdivision does not apply to Social Security benefits under subdivision 4 or
4a.

(d) This subdivision applies to all the weeks of payment.

If the payment is made in a lump sum, that sum is divided by the applicant's last level
of regular weekly pay from the employer to determine the weeks of payment.

The "last level of regular weekly pay" includes commissions, bonuses, and overtime
pay if that is part of the applicant's ongoing regular compensation.

(e) Under this subdivision, if the payment with respect to a week is equal to or more
than the applicant's weekly unemployment benefit amount, the applicant is ineligible for
benefits for that week. If the payment with respect to a week is less than the applicant's
weekly unemployment benefit amount, unemployment benefits are reduced by the amount
of the payment.