HF 1120

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state employment; providing voluntary
unpaid leave options and early retirement incentives
to state employees.

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

Section 1. new text begin EARLY RETIREMENT INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin An appointing authority in
the executive or legislative branch of state government may
offer the early retirement incentive in this section to an
employee who:
new text end

new text begin (1) has at least five years of allowable service in one or
more of the funds listed in Minnesota Statutes, section 356.30,
subdivision 3, and upon retirement is immediately eligible for a
retirement annuity from one or more of these funds; and
new text end

new text begin (2) terminates state service after the effective date of
this section and before September 1, 2005.
new text end

new text begin Subd. 2. new text end

new text begin Incentive. new text end

new text begin (a) For an employee eligible under
subdivision 1, the employer may provide an amount up to $15,000,
to be used:
new text end

new text begin (1) for an employee who terminates state service after the
effective date of this section and on or before July 15, 2005,
for deposit in the employee's account in the health care savings
plan established by Minnesota Statutes, section 352.98; or
new text end

new text begin (2) for an employee who terminates state service after July
15, 2005, and before September 1, 2005:
new text end

new text begin (i) notwithstanding Minnesota Statutes, section 352.01,
subdivision 11, for purchase of service credit for unperformed
service sufficient to enable the employee to retire under
Minnesota Statutes, section 352.116, subdivision 1, paragraph
(b); or
new text end

new text begin (ii) for purchase of a lifetime annuity or annuity for a
specific number of years from the state unclassified retirement
program to provide additional benefits under Minnesota Statutes,
section 352D.06, subdivision 1.
new text end

new text begin (b) An employee is eligible for the payment under paragraph
(a), clause (2), item (i), if the employee uses money from a
deferred compensation account that, combined with the payment
under paragraph (a), clause (2), item (i), would be sufficient
to purchase enough service credit to qualify for retirement
under Minnesota Statutes, section 352.116, subdivision 1,
paragraph (b).
new text end

new text begin Subd. 3. new text end

new text begin Designation of positions; employer
discretion. new text end

new text begin Before offering an incentive under this section, an
appointing authority must designate the job classifications or
positions within job classifications that qualify for the
incentive. The appointing authority may modify this designation
at any time. Designation of positions eligible for the
incentive under this section, participation of individual
employees, and the amount of the payment under this section are
at the sole discretion of the appointing authority. Unilateral
implementation of this section by the employer is not an unfair
labor practice under Minnesota Statutes, chapter 179A.
new text end

Sec. 2. new text begin PHASED RETIREMENT.
new text end

new text begin (a) This section applies to a state employee who:
new text end

new text begin (1) on the effective date of this section is regularly
scheduled to work 1,040 or more hours a year in a position
covered by the Minnesota state retirement system general
employees retirement plan, correctional plan, or unclassified
plan;
new text end

new text begin (2) enters into an agreement with the appointing authority
to work a reduced schedule that is both (i) a reduction of at
least 25 percent from the number of regularly scheduled work
hours; and (ii) 1,040 hours or less in the covered position; and
new text end

new text begin (3) at the time of entering into the agreement under clause
(2), meets the age and service requirements necessary to receive
an unreduced retirement benefit from the plan.
new text end

new text begin (b) Notwithstanding any law to the contrary, for service
under an agreement entered into under paragraph (a), an employee:
new text end

new text begin (1) may receive a retirement annuity from the plan without
separating from state service; and
new text end

new text begin (2) is not subject to the cessation of annuity provisions
in Minnesota Statutes, section 352.115, subdivision 10.
new text end

new text begin (c) The amount of hours worked, the work schedule, and the
duration of the phased retirement employment must be mutually
agreed to by the employee and the appointing authority. The
appointing authority may not require a person to waive any
rights under a collective bargaining agreement as a condition of
participation under this section. The appointing authority has
sole discretion to determine if and the extent to which phased
retirement under this section is available to an employee.
new text end

new text begin (d) Notwithstanding any law to the contrary, a person may
not earn service credit in the Minnesota state retirement system
for employment covered under this section, and employer
contributions and payroll deductions for the retirement fund
must not be made based on earnings of a person working under
this section. No change shall be made to a monthly annuity or
retirement allowance based on employment under this section.
new text end

new text begin (e) A person who works under this section is a member of
the appropriate bargaining unit; is covered by the appropriate
collective bargaining contract or compensation plan; and is
eligible for health care coverage as provided in the collective
bargaining contract or compensation plan.
new text end

new text begin (f) An agreement under this section may apply only to work
through June 30, 2007.
new text end

Sec. 3. new text begin VOLUNTARY HOUR REDUCTION PLAN.
new text end

new text begin (a) This section applies to a state employee who:
new text end

new text begin (1) on the effective date of this section is regularly
scheduled to work 1,040 or more hours a year in a position
covered by a pension plan administered by the Minnesota state
retirement system; and
new text end

new text begin (2) enters into an agreement with the appointing authority
to work a reduced schedule of 1,040 hours or less in the covered
position.
new text end

new text begin (b) Notwithstanding any law to the contrary, for service
under an agreement entered into under paragraph (a),
contributions may be made to the applicable plan of the
Minnesota state retirement system as if the employee had not
reduced hours. The employee must pay the additional employee
contributions and the employer must pay the additional employer
contributions necessary to bring the service credit and salary
up to the level prior to the voluntary reduction in hours.
Contributions must be made in a time and manner prescribed by
the executive director of the Minnesota state retirement system.
new text end

new text begin (c) The amount of hours worked, the work schedule, and the
duration of the voluntary hour reduction must be mutually agreed
to by the employee and the appointing authority. The appointing
authority may not require a person to waive any rights under a
collective bargaining agreement as a condition of participation
under this section. The appointing authority has sole
discretion to determine if and the extent to which voluntary
hour reduction under this section is available to an employee.
new text end

new text begin (d) A person who works under this section is a member of
the appropriate bargaining unit; is covered by the appropriate
collective bargaining contract or compensation plan; and is
eligible for health care coverage as provided in the collective
bargaining contract or compensation plan.
new text end

new text begin (e) An agreement under this section may apply only to work
through June 30, 2007.
new text end

Sec. 4. new text begin VOLUNTARY UNPAID LEAVE OF ABSENCE.
new text end

new text begin Appointing authorities in state government may allow each
employee to take unpaid leaves of absence for up to 1,040 hours
between June 1, 2005, and June 30, 2007. Each appointing
authority approving such a leave shall allow the employee to
continue accruing vacation and sick leave, be eligible for paid
holidays and insurance benefits, accrue seniority, and accrue
service credit and credited salary in the state retirement plans
as if the employee had actually been employed during the time of
leave. An employee covered by the unclassified plan may
voluntarily make both the employee and employer contributions to
the unclassified plan during the leave of absence. If the leave
of absence is for one full pay period or longer, any holiday pay
shall be included in the first payroll warrant after return from
the leave of absence. The appointing authority shall attempt to
grant requests for the unpaid leaves of absence consistent with
the need to continue efficient operation of the agency.
However, each appointing authority shall retain discretion to
grant or refuse to grant requests for leaves of absence and to
schedule and cancel leaves, subject to the applicable provisions
of collective bargaining agreements and compensation plans.
new text end

Sec. 5. new text begin RELATIONSHIP OF SECTIONS.
new text end

new text begin (a) An employee covered by a phased retirement agreement
under section 2 may not be covered by the voluntary hour
reduction provisions of section 3 or by a voluntary unpaid leave
of absence agreement under section 4 during the same time period
or any later time period.
new text end

new text begin (b) An employee covered by the voluntary hour reduction
provisions of section 3:
new text end

new text begin (1) may not be covered by a phased retirement agreement
under section 2 during the same time period, but may be covered
by a phased retirement agreement under section 2 during a later
time period; and
new text end

new text begin (2) may be covered by the voluntary leave of absence
provision of section 4 during an earlier or later time period.
new text end

new text begin (c) An employee may receive the early retirement incentive
in section 1 after being covered under section 2, 3, or 4. An
employee who receives an incentive under section 1 may not later
be covered by section 2, 3, or 4.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective the day following final
enactment.
new text end