Minnesota Legislature
HF 2633
as introduced - 91st Legislature (2019 - 2020) Posted on 03/21/2019 05:33pm
Bill Text Versions
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| Introduction | Posted on 03/19/2019 |
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 officesnew 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
terminationnew text end ;
(4) deleted text begin agrees to accept a postretirement option positiondeleted text end new text begin accepts a phased retirement
agreement to continue employment new text end with the same deleted text begin or 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 begin public new text end service 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 begin Notwithstanding 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 end new text begin tonew text end employment deleted text begin in a postretirement option positiondeleted text end new text begin
under a phased retirement agreementnew 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 begin Governing bodydeleted text end new text begin Governmental subdivision new text end discretion.
The deleted text begin governing body
of thedeleted text end governmental subdivision has sole discretion to determine if and the extent to which
a deleted text begin postretirement optiondeleted text end new text begin phased retirement new text end position under this section is available to deleted text begin a
terminated memberdeleted text end new text begin an employeenew text end . Any offer of such a position must be made in writing to
the deleted text begin persondeleted text end new text begin employeenew text end by the deleted text begin governing body's designeedeleted text end new text begin governmental subdivision new text end in 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 begin Postretirement option employment may be for an initial perioddeleted text end new text begin The
term of employment under a phased retirement agreement must new text end not deleted text begin todeleted text end exceed deleted text begin one yeardeleted text end new text begin five
yearsnew text end . deleted text begin At the end of the initial period,deleted text end new text begin If 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 end The deleted text begin governing bodydeleted text end new text begin governmental subdivision new text end has sole discretion to determine
if deleted text begin the offer of a postretirement option positiondeleted text end new text begin a phased retirement agreement new text end will be renewed,
renewed with modifications, or terminated. deleted text begin Postretirement 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 begin appointing authoritydeleted text end new text begin governmental subdivision new text end shall provide
the deleted text begin Public Employees Retirement Associationdeleted text end new 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 begin a
memberdeleted text end new text begin an employee new text end who accepts continuing employment with the deleted text begin appointing authoritydeleted text end
new text begin governmental subdivision new text end under the terms of this sectiondeleted text begin , and any subsequent renewal
agreementdeleted text end new text begin . The documentation must be provided before the employee's termination of
membershipnew 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 end Notwithstanding any law to the contrary, a person may
not earn new text begin allowable new text end service deleted text begin creditdeleted 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 begin Termination and new text end subsequent 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 end If a person deleted text begin has been in a postretirement option position anddeleted text end new text begin previously employed
under a phased retirement agreement subsequently new text end accepts new text begin employment with new text end any 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 sectiondeleted text end new text begin governmental subdivisionnew text end , the person
may not earn new text begin allowable new text end service deleted text begin creditdeleted 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 employmentnew 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 begin REPEALER.
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.