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Minnesota Legislature

Office of the Revisor of Statutes

HF 2633

as introduced - 91st Legislature (2019 - 2020) Posted on 03/21/2019 05:33pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to retirement; Public Employees Retirement Association phased retirement
option; eliminating expiration of the program and annual renewal requirement;
clarifying language; amending Minnesota Statutes 2018, section 353.371,
subdivisions 1, 2, 3, 4, 5, 6, 7; repealing Minnesota Statutes 2018, section 353.371,
subdivision 8.

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

Section 1.

Minnesota Statutes 2018, section 353.371, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) This section applies to a basic or coordinated member of
the general employees retirement plan of the Public Employees Retirement Association
who:

(1) for at least the five years immediately preceding separation under clause (2), was
regularly scheduled to work 1,044 or more hours per year in a position covered by the
general employees retirement plan of the Public Employees Retirement Associationnew text begin not
including positions that are elected offices
new text end;

(2) terminates membership as defined under section 353.01, subdivision 11b;

(3) at the time of termination under clause (2), was at least age 62 and met the age and
service requirements necessary to receive a retirement annuity from the plan and satisfied
requirements for the commencement of the retirement annuitynew text begin in the month following
termination
new text end;

(4) deleted text beginagrees to accept a postretirement option positiondeleted text end new text beginaccepts a phased retirement
agreement to continue employment
new text endwith the same deleted text beginor a differentdeleted text end governmental subdivision,
working a reduced schedule that is both:

(i) a reduction of at least 25 percent from the employee's number of previously regularly
scheduled work hours; and

(ii) 1,044 hours or less in publicnew text begin servicenew text end; and

(5) is not eligible for participation in the state employee postretirement option program
under section 43A.346.

(b) For purposes of this section, the length of separation requirement and termination
of new text beginpublic new text endservice requirement prohibiting return to work agreements under section 353.01,
subdivisions 11a and 28, are not applicablenew text begin except as specified in subdivision 7, paragraph
(a)
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 353.371, subdivision 2, is amended to read:


Subd. 2.

Annuity reduction not applicable.

deleted text beginNotwithstanding any law to the contrary,deleted text end
The provisions of section 353.37 governing annuities of reemployed annuitants do not apply
deleted text begin for the duration of a terminated member'sdeleted text endnew text begin tonew text end employment deleted text beginin a postretirement option positiondeleted text endnew text begin
under a phased retirement agreement
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 3.

Minnesota Statutes 2018, section 353.371, subdivision 3, is amended to read:


Subd. 3.

deleted text beginGoverning bodydeleted text end new text beginGovernmental subdivision new text enddiscretion.

The deleted text begingoverning body
of the
deleted text end governmental subdivision has sole discretion to determine if and the extent to which
a deleted text beginpostretirement optiondeleted text end new text beginphased retirement new text endposition under this section is available to deleted text begina
terminated member
deleted text endnew text begin an employeenew text end. Any offer of such a position must be made in writing to
the deleted text beginpersondeleted text endnew text begin employeenew text end by the deleted text begingoverning body's designeedeleted text end new text begingovernmental subdivision new text endin a manner
prescribed by the executive director.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 4.

Minnesota Statutes 2018, section 353.371, subdivision 4, is amended to read:


Subd. 4.

Duration.

deleted text beginPostretirement option employment may be for an initial perioddeleted text end new text beginThe
term of employment under a phased retirement agreement must
new text endnot deleted text begintodeleted text end exceed deleted text beginone yeardeleted text endnew text begin five
years
new text end. deleted text beginAt the end of the initial period,deleted text end new text beginIf the term of a phased retirement agreement is less
than five years, the agreement may be renewed for a period not to exceed a combined total
of five years.
new text endThe deleted text begingoverning bodydeleted text end new text begingovernmental subdivision new text endhas sole discretion to determine
if deleted text beginthe offer of a postretirement option positiondeleted text end new text begina phased retirement agreement new text endwill be renewed,
renewed with modifications, or terminated. deleted text beginPostretirement option employment may be
renewed annually, but no more than four renewals may occur.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 5.

Minnesota Statutes 2018, section 353.371, subdivision 5, is amended to read:


Subd. 5.

Copy to fund.

The deleted text beginappointing authoritydeleted text end new text begingovernmental subdivision new text endshall provide
the deleted text beginPublic Employees Retirement Associationdeleted text endnew text begin executive directornew text end with documentation, as
prescribed by the executive director, of the terms of any agreement entered into with deleted text begina
member
deleted text end new text beginan employee new text endwho accepts continuing employment with the deleted text beginappointing authoritydeleted text end
new text begin governmental subdivision new text endunder the terms of this sectiondeleted text begin, and any subsequent renewal
agreement
deleted text endnew text begin. The documentation must be provided before the employee's termination of
membership
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 6.

Minnesota Statutes 2018, section 353.371, subdivision 6, is amended to read:


Subd. 6.

No service credit.

new text begin(a) new text endNotwithstanding any law to the contrary, a person may
not earn new text beginallowable new text endservice deleted text begincreditdeleted text end in the general employees retirement plan of the Public
Employees Retirement Association 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 an agreement covered by this section. No change may
be made to a monthly annuity or retirement allowance based on employment under this
section.

new text begin (b) The governmental subdivision shall report to the executive director the salary earned
by an employee in a phased retirement position. The report must include the number of
compensated hours the employee worked and must be made on a pay period basis in a
manner prescribed by the executive director. Reports must be submitted no later than 14
calendar days following the last day of each pay period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 7.

Minnesota Statutes 2018, section 353.371, subdivision 7, is amended to read:


Subd. 7.

new text beginTermination and new text endsubsequent employment.

new text begin (a) Upon termination of
employment under a phased retirement agreement, the governmental subdivision and
employee must inform the executive director, in a manner prescribed by the executive
director, of the effective date of the employee's termination of public service. The termination
from public service must meet the termination and length of separation requirements under
section 353.01, subdivisions 11a and 28.
new text end

new text begin (b) new text endIf a person deleted text beginhas been in a postretirement option position anddeleted text end new text beginpreviously employed
under a phased retirement agreement subsequently
new text endaccepts new text beginemployment with new text endany other
deleted text begin position in public service beyond the period of time for which the person participated in the
postretirement option provided under this section
deleted text endnew text begin governmental subdivisionnew text end, the person
may not earn new text beginallowable new text endservice deleted text begincreditdeleted text end in the general employees retirement plan of the Public
Employees Retirement Association, no employer contributions or payroll deductions for
the retirement fund may be made, and the provisions of section 353.37 applynew text begin to the
subsequent employment
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 8. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 353.371, subdivision 8, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-4692

353.371 POSTRETIREMENT OPTION.

Subd. 8.

Program expiration.

(a) Initial postretirement option employment agreements must not be entered into after June 30, 2019.

(b) This section expires on June 30, 2024.