1.1 	A bill for an act
1.2 	relating to public employment; creating a
1.3 	postretirement employment option; authorizing a
1.4 	voluntary hours reduction plan; proposing coding for
1.5 	new law in Minnesota Statutes, chapter 43A.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [43A.346] POSTRETIREMENT EMPLOYMENT.
1.8 		Subdivision 1.Definition. For purposes of this section,
1.9 	"state employee" means a person currently occupying a civil
1.10 	service position in the executive branch of state government,
1.11 	the Minnesota State Retirement System, or the Office of the
1.12 	Legislative Auditor, or a person employed by the Metropolitan
1.13 	Council.
1.14 		Subd. 2.Eligibility. This section applies to a state or
1.15 	Metropolitan Council employee who:
1.16 	(1) for at least the five years immediately preceding
1.17 	separation under clause (2), has been regularly scheduled to
1.18 	work 1,044 or more hours a year in a position covered by a
1.19 	pension plan administered by the Minnesota State Retirement
1.20 	System;
1.21 	(2) terminates state or Metropolitan Council employment;
1.22 	(3) at the time of termination under clause (2), meets the
1.23 	age and service requirements necessary to receive an unreduced
1.24 	retirement annuity from the plan and satisfies requirements for
1.25 	the commencement of the retirement annuity or, for an employee
2.1 	under the unclassified employees retirement plan, meets the age
2.2 	and service requirements necessary to receive an unreduced
2.3 	retirement annuity from the plan and satisfies requirements for
2.4 	the commencement of the retirement annuity or elects a lump-sum
2.5 	payment; and 
2.6 	(4) agrees to accept a postretirement option position with
2.7 	the same or a different appointing authority, working a reduced
2.8 	schedule that is both (i) a reduction of at least 25 percent
2.9 	from the employee's number of regularly scheduled work hours;
2.10 	and (ii) 1,044 hours or less in state or Metropolitan Council
2.11 	service.
2.12 		Subd. 3.Unclassified service. Notwithstanding any law
2.13 	to the contrary, postretirement option positions shall be in the
2.14 	unclassified service but shall not be covered by the Minnesota
2.15 	State Retirement System unclassified employees plan.
2.16 		Subd. 4.Annuity reduction not applicable.
 2.17 	Notwithstanding any law to the contrary, when an eligible state
2.18 	employee in a postretirement option position commences receipt
2.19 	of the annuity, the provisions of Minnesota Statutes, section
2.20 	352.115, subdivision 10, governing annuities of reemployed
2.21 	annuitants, shall not apply for the duration of employment in
2.22 	the position.
2.23 		Subd. 5.Appointing authority discretion. The appointing
2.24 	authority has sole discretion to determine if and the extent to
2.25 	which a postretirement option position under this section is
2.26 	available to a state employee.  Any offer of such a position
2.27 	must be made in writing to the employee by the appointing
2.28 	authority on a form prescribed by the Department of Employee
2.29 	Relations and the Minnesota State Retirement System.  The
2.30 	appointing authority may not require a person to waive any
2.31 	rights under a collective bargaining agreement or unrepresented
2.32 	employee compensation plan as a condition of participation.
2.33 		Subd. 6.Duration. Postretirement option employment
2.34 	shall be for an initial period not to exceed one year.  During
2.35 	that period, the appointing authority may not modify the
2.36 	conditions specified in the written offer without the employee's
3.1 	agreement, except as required by law or by the collective
3.2 	bargaining agreement or compensation plan applicable to the
3.3 	employee.  At the end of the initial period, the appointing
3.4 	authority has sole discretion to determine if the offer of a
3.5 	postretirement option position will be renewed, renewed with
3.6 	modifications, or terminated.  Postretirement option employment
3.7 	may be renewed for periods of up to one year, not to exceed a
3.8 	total duration of five years.  No person shall be employed in
3.9 	one or a combination of postretirement option positions under
3.10 	this section for a total of more than five years.
3.11 		Subd. 7.Copy to msrs. The appointing authority shall
3.12 	provide the Minnesota State Retirement System with a copy of the
3.13 	offer, the employee's acceptance of the terms, and any
3.14 	subsequent renewal agreement.
3.15 		Subd. 8.No service credit. Notwithstanding any law to
3.16 	the contrary, a person may not earn service credit in the
3.17 	Minnesota State Retirement System for employment covered under
3.18 	this section, and employer contributions and payroll deductions
3.19 	for the retirement fund must not be made based on earnings of a
3.20 	person working under this section.  No change shall be made to a
3.21 	monthly annuity or retirement allowance based on employment
3.22 	under this section.
3.23 		Subd. 9.Insurance contribution. Notwithstanding any law
3.24 	to the contrary, the appointing authority will make an employer
3.25 	insurance contribution for a person who is employed in a
3.26 	postretirement option position under this section and who is not
3.27 	receiving any other state-paid or Metropolitan Council-paid
3.28 	employer insurance contribution.  The amount of the contribution
3.29 	will be equal to the percent time worked in the postretirement
3.30 	option position (hours scheduled to be worked annually divided
3.31 	by 2,088) times 1.5 times the full employer contribution for
3.32 	employee only health and dental coverage.  The appointing
3.33 	authority will contribute that amount to a health reimbursement
3.34 	arrangement.
3.35 		Subd. 10.Subsequent employment. If a person has been in
3.36 	a postretirement option position and accepts any other position
4.1 	in state or Metropolitan Council service, in the subsequent
4.2 	state or Metropolitan Council employment the person may not earn
4.3 	service credit in the Minnesota State Retirement System, no
4.4 	employer contributions or payroll deductions for the retirement
4.5 	fund shall be made, and the provisions of Minnesota Statutes,
4.6 	section 352.115, subdivision 10, shall apply.

4.7 	Sec. 2. VOLUNTARY HOURS REDUCTION PLAN.
 4.8 	(a) For the purposes of this section, "state employee" has
4.9 	the meaning given it in Minnesota Statutes, section 43A.346.
4.10 	(b) This section applies to a state employee who:
4.11 	(1) is regularly scheduled to work 1,044 or more hours a
4.12 	year in a position covered by a pension plan administered by the
4.13 	Minnesota State Retirement System; and 
4.14 	(2) enters into an agreement with the appointing authority
4.15 	to work a reduced schedule of 1,044 hours or less in the covered
4.16 	position.
4.17 	(c) Notwithstanding any law to the contrary, for service
4.18 	under an agreement entered into under paragraph (b),
4.19 	contributions may be made to the applicable plan of the
4.20 	Minnesota State Retirement System as if the employee had not
4.21 	reduced hours.  The employee must pay the additional employee
4.22 	contributions and the employer must pay the additional employer
4.23 	contributions necessary to bring the service credit and salary
4.24 	up to the level prior to the voluntary reduction in hours.
4.25 	Contributions must be made in a time and manner prescribed by
4.26 	the executive director of the Minnesota State Retirement System.
4.27 	(d) The appointing authority has sole discretion to
4.28 	determine if and the extent to which voluntary hours reduction
4.29 	under this section is available to an employee.  The number of
4.30 	hours to be worked per pay period and the end date of the
4.31 	voluntary hours reduction arrangement must be agreed to, in
4.32 	writing, by the employee and the appointing authority.  Either
4.33 	the appointing authority or the employee may terminate the hours
4.34 	reduction arrangement prior to the end date with 30 days'
4.35 	written notice to the other.  The appointing authority shall
4.36 	provide the Minnesota State Retirement System with a copy of the
5.1 	agreement and any termination notice.
5.2 	(e) Implementation of the voluntary hours reduction
5.3 	arrangement or of any change required by the termination of an
5.4 	arrangement is subject to provisions of the applicable
5.5 	collective bargaining agreement or unrepresented employee
5.6 	compensation plan.  The appointing authority may not require a
5.7 	person to waive any rights under a collective bargaining
5.8 	agreement or unrepresented employee compensation plan as a
5.9 	condition of participation under this section.
5.10 	(f) No person shall be employed in one or a combination of
5.11 	voluntary hours reduction arrangements under this section for a
5.12 	total of more than three years.