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SF 3711

Introduction - 84th Legislature (2005 - 2006)

Posted on 12/15/2009 12:00 a.m.

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to employment; prohibiting mandatory retirement; amending Minnesota
Statutes 2004, section 181.81, subdivision 1; repealing Minnesota Statutes 2004,
section 363A.20, subdivision 9.

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

Section 1.

Minnesota Statutes 2004, section 181.81, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Restriction ondeleted text end new text begin Prohibition of new text end mandatory retirement deleted text begin agedeleted text end .

(a) It
is unlawful for any private sector employer to refuse to hire or employ, or to discharge,
dismiss, reduce in grade or position, or demote any individual on the grounds that the
individual has reached deleted text begin andeleted text end new text begin a certain new text end age deleted text begin of less than 70deleted text end , except in cases where federal
statutes or rules or other state statutes, not including special laws compel or specifically
authorize such action. deleted text begin Nothing in this section shall prohibit compulsory retirement of
employees who have attained 70 years of age or more; provided further that nothing in this
section shall prohibit compulsory retirement of an employee who has attained at least 65
years of age and who for the two-year period immediately before retirement is employed in
an executive or a high policy-making position if that employee is entitled to an immediate
nonforfeitable annual retirement benefit from a pension, profit sharing, savings or deferred
compensation plan of an employer, or any combination of these benefits which totals in
the aggregate at least $27,000. If the retirement benefit is in a form other than a straight
life annuity, the equivalent annualized payment value of the benefit shall be actuarially
determined according to rules promulgated by the commissioner of labor and industry.
deleted text end
Pilots and flight crew members shall not be subject to the provisions of this section or
section 363A.20, subdivision 9, but shall be retired from this employment pursuant to
standards contained in regulations promulgated by the federal aviation administration for
airline pilots and flight officers and are subject to the bona fide occupational requirements
for these employees as promulgated by the federal aviation administration.

(b) Every employer shall post in a conspicuous place a notice written or approved
by the commissioner of labor and industry stating that deleted text begin thedeleted text end mandatory retirement deleted text begin age is
age 70
deleted text end new text begin is prohibitednew text end . Employment shall continue for as long as the employee desires or
until the employer demonstrates that the employee no longer can meet the bona fide
requirements, consistently applied, for the job or position deleted text begin or until the employee reaches
the compulsory retirement age established by the employer. When an employer intends to
terminate an employee who is 65 years of age or older earlier than age 70 on the ground
that the employee no longer can meet the bona fide requirements for the job or position the
employer shall give the employee 30 days' notice of that intention
deleted text end .

(c) If there exists a date on which the accrual of pension benefits or credits, or the
contributions therefor by the employee or the employer, or the employee's employment
related health and welfare benefits or insurance coverages are diminished or eliminated
by virtue of the employee attaining a certain age, the employer shall notify the employee
of the changes at least 90 but not more than 120 days prior to the effective date of the
change. This section, in and of itself, shall not be construed to require any change in the
employer contribution levels of any pension or retirement plan, or to require any employer
to increase an employer's or employee's payments for the provision of insurance benefits
contained in any employee benefit or insurance plan.

(d) The definitions of "employer" and "employee" in section 363A.03 apply to
this section.

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 363A.20, subdivision 9, new text end new text begin is repealed.
new text end