SF 1679

1st Unofficial Engrossment - 86th Legislature (2009 - 2010)

Posted on 12/26/2012 11:17 p.m.

1.1A bill for an act 1.2relating to retirement; authorizing retirement incentives; requiring a report. 1.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.4    Section 1. new text begin RETIREMENT INCENTIVE. new text end 1.5     new text begin Subdivision 1. new text end new text begin Eligibility. new text end new text begin (a) An eligible appointing authority may provide the new text end 1.6 new text begin retirement incentive in this section to an employee who: new text end 1.7 new text begin (1) has at least 15 years of allowable service in one or more of the funds listed in new text end 1.8 new text begin Minnesota Statutes, section 356.30, subdivision 3, or has at least 15 years of coverage by new text end 1.9 new text begin the individual retirement account plan governed by Minnesota Statutes, chapter 354B, new text end 1.10 new text begin and upon retirement is immediately eligible for a retirement annuity or benefit from one new text end 1.11 new text begin or more of these funds; new text end 1.12 new text begin (2) accepts the incentive no later than December 31, 2010, and retires no later than new text end 1.13 new text begin June 30, 2011; and new text end 1.14 new text begin (3) is not in receipt of a retirement plan, retirement annuity, retirement allowance, or new text end 1.15 new text begin service pension from a fund listed in Minnesota Statutes, section 356.30, subdivision 3, new text end 1.16 new text begin during the month preceding the termination of qualified employment. new text end 1.17 new text begin (b) An eligible appointing authority is any appointing authority in the executive, new text end 1.18 new text begin legislative, or judicial branch of state government, the Public Employees Retirement new text end 1.19 new text begin Association, the Minnesota State Retirement System, the Teachers Retirement Association, new text end 1.20 new text begin or the Minnesota State Colleges and Universities. new text end 1.21 new text begin (c) An elected official is not eligible to receive an incentive under this section. new text end 1.22 new text begin (d) An employee who, after termination of employment, receives an employer new text end 1.23 new text begin contribution for health insurance, may not receive a payment for health insurance under new text end 1.24 new text begin this section from that appointing authority. new text end 2.1     new text begin Subd. 2. new text end new text begin Incentive. new text end new text begin For an employee eligible under subdivision 1, the appointing new text end 2.2 new text begin authority will deposit into the employee's account in the health care savings plan new text end 2.3 new text begin established in Minnesota Statutes, section 352.98, up to 24 months of the employer new text end 2.4 new text begin contribution, as specified in the collective bargaining agreement or compensation plan new text end 2.5 new text begin covering the position from which the employee terminates service, for health and dental new text end 2.6 new text begin insurance for the employee, and, if the employee had dependent coverage immediately new text end 2.7 new text begin before retirement, for the employee's dependents. The contributions provided under this new text end 2.8 new text begin section are those the employee was receiving as of the date of termination, subject to any new text end 2.9 new text begin changes in contributions specified in the collective bargaining agreement or compensation new text end 2.10 new text begin plan covering the position from which the employee terminated service. new text end 2.11     new text begin Subd. 3. new text end new text begin Employer discretion; implementation. new text end new text begin Provision of an incentive under new text end 2.12 new text begin this section is at the discretion of the appointing authority. Appointing authorities in the new text end 2.13 new text begin executive branch must apply for approval from the commissioner of management and new text end 2.14 new text begin budget before providing early retirement incentives under this section. All appointing new text end 2.15 new text begin authorities and the commissioner's review must give consideration to issues such as new text end 2.16 new text begin equity within the agency, budgetary constraints, and workforce planning concerns. The new text end 2.17 new text begin appointing authority will determine the date of retirement upon consultation with the new text end 2.18 new text begin employee. Unilateral implementation of this section by the appointing authority is not an new text end 2.19 new text begin unfair labor practice under Minnesota Statutes, chapter 179A. new text end 2.20     new text begin Subd. 4. new text end new text begin Acceptance. new text end new text begin An employee who is eligible for an incentive under this new text end 2.21 new text begin section, who is offered an incentive by the appointing authority, and who accepts the new text end 2.22 new text begin incentive offer, must do so in writing. A copy of the acceptance document must be new text end 2.23 new text begin provided by the appointing authority to the applicable retirement plan within 15 days of new text end 2.24 new text begin its execution. new text end 2.25     new text begin Subd. 5. new text end new text begin Reemployment prohibition. new text end new text begin An individual who receives an incentive new text end 2.26 new text begin payment under this section may not be reemployed or hired as a consultant by any agency new text end 2.27 new text begin or entity that participates in the State Employee Group Insurance Program for a period new text end 2.28 new text begin of three years after termination of service. new text end 2.29     new text begin Subd. 6. new text end new text begin Report. new text end new text begin The commissioner of management and budget must report to the new text end 2.30 new text begin legislature by April 2, 2011, regarding use of the retirement incentive for calendar year new text end 2.31 new text begin 2010, with a recommendation regarding renewal of the incentive. new text end 2.32    Sec. 2. new text begin EFFECTIVE DATE. new text end 2.33 new text begin This act is effective the day following final enactment. new text end