HF 2079

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; extending eligibility for an early retirement incentive;
amending Laws 2006, chapter 271, article 3, section 43.

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

Section 1.

Laws 2006, chapter 271, article 3, section 43, is amended to read:

Sec. 43. EARLY RETIREMENT INCENTIVE.

Subdivision 1.

Eligibility.

An appointing authority in the executive or legislative
branch of state government or the Board of Public Defense or the Minnesota Historical
Society or the Minnesota State Colleges and Universities or any school district may offer
the early retirement incentive in this section to an employee who:

(1) has at least 15 years of allowable service in one or more of the funds listed in
Minnesota Statutes, section 356.30, subdivision 3, or has at least five years of coverage by
the individual retirement account plan governed by Minnesota Statutes, chapter 354B, and
upon retirement is immediately eligible for a retirement annuity or benefit from one or
more of these funds; and

(2) terminates state or teaching service after the effective date of this section deleted text begin and
before September 1, 2006 deleted text end .

Subd. 2.

Incentive.

(a) For an employee eligible under subdivision 1, the employer
may provide an amount up to $17,000, to be used:

(1) for an employee who terminates state service after the effective date of this
section deleted text begin and on or before July 15, 2006, deleted text end for deposit in the employee's account in the health
care savings plan established by Minnesota Statutes, section 352.98; deleted text begin or deleted text end

(2) deleted text begin for an employee who terminates state service after July 15, 2006, and before
September 1, 2006: deleted text end

deleted text begin (i) deleted text end notwithstanding Minnesota Statutes, section 352.01, subdivision 11, or 354.05,
subdivision 13, whichever applies, 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); 353.30; or 354.44, subdivision 6, paragraph (b), whichever
applies; or

deleted text begin (ii) deleted text end new text begin (3) new text end 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.

(b) An employee is eligible for the payment under paragraph (a), clause (2), deleted text begin item
(i), deleted text end if the employee uses money from a deferred compensation account that, combined
with the payment under paragraph (a), clause (2), deleted text begin item (i), deleted text end would be sufficient to purchase
enough service credit to qualify for retirement under Minnesota Statutes, section 352.116,
subdivision 1, paragraph (b); 353.30, subdivision 1a; or 354.44, subdivision 6, paragraph
(b), whichever applies.

(c) The cost to purchase service credit under this section must be made in accordance
with Minnesota Statutes, section 356.551.

Subd. 3.

Designation of positions; employer discretion.

Before offering an
incentive under this section, an appointing authority must be experiencing employee
layoffs due to budget shortfalls or a reorganization that would be offset by offering the
incentive. The appointing authority must document that the incentive payment is equal
to or less than the cost of the employee layoff. The appointing authority must designate
the job classifications or positions within the 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.

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective retroactively from June 1, 2006.
new text end