HF 710

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to employment; mandatory retirement; deleting 
  1.3             obsolete language; amending Minnesota Statutes 2002, 
  1.4             section 181.81, subdivision 1; repealing Minnesota 
  1.5             Statutes 2002, section 181.811. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 181.81, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [RESTRICTION ON MANDATORY RETIREMENT AGE.] 
  1.10  (a) It is unlawful for any private sector employer to refuse to 
  1.11  hire or employ, or to discharge, dismiss, reduce in grade or 
  1.12  position, or demote any individual on the grounds that the 
  1.13  individual has reached an age of less than 70, except in cases 
  1.14  where federal statutes or rules or other state statutes, not 
  1.15  including special laws compel or specifically authorize such 
  1.16  action.  Nothing in this section shall prohibit compulsory 
  1.17  retirement of employees who have attained 70 years of age or 
  1.18  more; provided further that nothing in this section shall 
  1.19  prohibit compulsory retirement of an employee who has attained 
  1.20  at least 65 years of age and who for the two-year period 
  1.21  immediately before retirement is employed in an executive or a 
  1.22  high policymaking position if that employee is entitled to an 
  1.23  immediate nonforfeitable annual retirement benefit from a 
  1.24  pension, profit sharing, savings or deferred compensation plan 
  1.25  of an employer, or any combination of these benefits which 
  2.1   totals in the aggregate at least $27,000.  If the retirement 
  2.2   benefit is in a form other than a straight life annuity, the 
  2.3   equivalent annualized payment value of the benefit shall be 
  2.4   actuarially determined according to rules promulgated by the 
  2.5   commissioner of labor and industry.  Pilots and flight crew 
  2.6   members shall not be subject to the provisions of this section 
  2.7   or section 363.02, subdivision 6, but shall be retired from this 
  2.8   employment pursuant to standards contained in regulations 
  2.9   promulgated by the federal aviation administration for airline 
  2.10  pilots and flight officers and are subject to the bona fide 
  2.11  occupational requirements for these employees as promulgated by 
  2.12  the federal aviation administration.  
  2.13     (b) Prior to June 1, 1982, every employer shall notify an 
  2.14  employee in writing at least 90 days but no more than 120 days 
  2.15  prior to the employee's 65th birthday of the option to continue 
  2.16  employment beyond that date.  The notice shall state in a 
  2.17  conspicuous manner that the employee shall respond to the notice 
  2.18  within 30 days of the employee's desire to continue employment 
  2.19  beyond the employee's 65th birthday.  Every employer shall post 
  2.20  in a conspicuous place a notice written or approved by the 
  2.21  commissioner of labor and industry stating that the mandatory 
  2.22  retirement age is age 70.  Employment shall continue for as long 
  2.23  as the employee desires or until the employer demonstrates that 
  2.24  the employee no longer can meet the bona fide requirements, 
  2.25  consistently applied, for the job or position or until the 
  2.26  employee reaches the compulsory retirement age established by 
  2.27  the employer.  When an employer intends to terminate an employee 
  2.28  who is 65 years of age or older earlier than age 70 on the 
  2.29  ground that the employee no longer can meet the bona fide 
  2.30  requirements for the job or position the employer shall give the 
  2.31  employee 30 days' notice of that intention.  
  2.32     (c) If there exists a date on which the accrual of pension 
  2.33  benefits or credits, or the contributions therefor by the 
  2.34  employee or the employer, or the employee's employment related 
  2.35  health and welfare benefits or insurance coverages are 
  2.36  diminished or eliminated by virtue of the employee attaining a 
  3.1   certain age, the employer shall notify the employee of the 
  3.2   changes at least 90 but not more than 120 days prior to the 
  3.3   effective date of the change.  This section, in and of itself, 
  3.4   shall not be construed to require any change in the employer 
  3.5   contribution levels of any pension or retirement plan, or to 
  3.6   require any employer to increase an employer's or employee's 
  3.7   payments for the provision of insurance benefits contained in 
  3.8   any employee benefit or insurance plan.  
  3.9      (d) The definitions of "employer" and "employee" in section 
  3.10  363.01 apply to this section. 
  3.11     Sec. 2.  [REPEALER.] 
  3.12     Minnesota Statutes 2002, section 181.811, is repealed.