HF 1953

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state employment; creating a
postretirement employment option; authorizing a
voluntary hours reduction plan; proposing coding for
new law in Minnesota Statutes, chapter 43A.

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

Section 1.

new text begin [43A.346] DEFINITION.
new text end

new text begin For purposes of sections 2 and 3, "state employee" means a
person currently occupying a civil service position in the
executive branch of state government, the Minnesota State
Retirement System, or the Office of the Legislative Auditor.
new text end

Sec. 2.

new text begin [43A.347] POSTRETIREMENT OPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

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

new text begin (1) for at least the five years immediately preceding
separation under clause (2), has been regularly scheduled to
work 1,044 or more hours a year in a position covered by a
pension plan administered by the Minnesota State Retirement
System;
new text end

new text begin (2) terminates state employment;
new text end

new text begin (3) at the time of termination under clause (2), meets the
age and service requirements necessary to receive an unreduced
retirement annuity from the plan and satisfies requirements for
the commencement of the retirement annuity or, for an employee
under the state unclassified employees retirement plan, meets
the age and service requirements necessary to receive an
unreduced retirement annuity from the plan and satisfies
requirements for the commencement of the retirement annuity or
elects a lump-sum payment; and
new text end

new text begin (4) agrees to accept a postretirement option position with
the same or a different appointing authority, working a reduced
schedule that is both (i) a reduction of at least 25 percent
from the employee's number of regularly scheduled work hours;
and (ii) 1,044 hours or less in state service.
new text end

new text begin Subd. 2. new text end

new text begin Unclassified service. new text end

new text begin Notwithstanding any law
to the contrary, postretirement option positions shall be in the
unclassified service but shall not be covered by the Minnesota
State Retirement System unclassified employees plan.
new text end

new text begin Subd. 3. new text end

new text begin Annuity reduction not applicable.
new text end

new text begin Notwithstanding any law to the contrary, when an eligible state
employee in a postretirement option position commences receipt
of the annuity, the provisions of Minnesota Statutes, section
352.115, subdivision 10, governing annuities of reemployed
annuitants, shall not apply for the duration of employment in
the position.
new text end

new text begin Subd. 4. new text end

new text begin Appointing authority discretion. new text end

new text begin The appointing
authority has sole discretion to determine if and the extent to
which a postretirement option position under this section is
available to a state employee. Any offer of such a position
must be made in writing to the employee by the appointing
authority on a form prescribed by the Department of Employee
Relations and the Minnesota State Retirement System. The
appointing authority may not require a person to waive any
rights under a collective bargaining agreement or unrepresented
employee compensation plan as a condition of participation.
new text end

new text begin Subd. 5. new text end

new text begin Duration. new text end

new text begin Postretirement option employment
shall be for an initial period not to exceed one year. During
that period, the appointing authority may not modify the
conditions specified in the written offer without the employee's
agreement, except as required by law or by the collective
bargaining agreement or compensation plan applicable to the
employee. At the end of the initial period, the appointing
authority has sole discretion to determine if the offer of a
postretirement option position will be renewed, renewed with
modifications, or terminated. Postretirement option employment
may be renewed for periods of up to one year, not to exceed a
total duration of five years. No person shall be employed in
one or a combination of postretirement option positions under
this section for a total of more than five years.
new text end

new text begin Subd. 6. new text end

new text begin Copy to msrs. new text end

new text begin The appointing authority shall
provide the Minnesota State Retirement System with a copy of the
offer, the employee's acceptance of the terms, and any
subsequent renewal agreement.
new text end

new text begin Subd. 7. new text end

new text begin No service credit. new text end

new text begin 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 Subd. 8. new text end

new text begin Insurance contribution. new text end

new text begin Notwithstanding any law
to the contrary, the appointing authority will make an employer
insurance contribution for a person who is employed in a
postretirement option position under this section and who is not
receiving any other state-paid employer insurance contribution.
The amount of the contribution will be equal to the percent time
worked in the postretirement option position (hours scheduled to
be worked annually divided by 2,088) times 1.5 times the full
employer contribution for employee only health and dental
coverage. The appointing authority will contribute that amount
to a health reimbursement arrangement.
new text end

new text begin Subd. 9. new text end

new text begin Subsequent employment. new text end

new text begin If a person has been in
a postretirement option position and accepts any other position
in state service, in the subsequent state employment the person
may not earn service credit in the Minnesota State Retirement
System, no employer contributions or payroll deductions for the
retirement fund shall be made, and the provisions of Minnesota
Statutes, section 352.115, subdivision 10, shall apply.
new text end

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

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

new text begin (1) is regularly scheduled to work 1,044 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 1,044 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 appointing authority has sole discretion to
determine if and the extent to which voluntary hours reduction
under this section is available to an employee. The number of
hours to be worked per pay period and the end date of the
voluntary hours reduction arrangement must be agreed to, in
writing, by the employee and the appointing authority. Either
the appointing authority or the employee may terminate the hours
reduction arrangement prior to the end date with 30 days'
written notice to the other. The appointing authority shall
provide the Minnesota State Retirement System with a copy of the
agreement and any termination notice.
new text end

new text begin (d) Implementation of the voluntary hours reduction
arrangement or of any change required by the termination of an
arrangement is subject to provisions of the applicable
collective bargaining agreement or unrepresented employee
compensation plan. The appointing authority may not require a
person to waive any rights under a collective bargaining
agreement or unrepresented employee compensation plan as a
condition of participation under this section.
new text end

new text begin (e) No person shall be employed in one or a combination of
voluntary hours reduction arrangements under this section for a
total of more than three years.
new text end