Minnesota Legislature
SF 1679
1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:17pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to retirement; authorizing retirement incentives; requiring a report.
1.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.4 Section 1. RETIREMENT INCENTIVE.
1.5 Subdivision 1. Eligibility. (a) An eligible appointing authority may provide the
1.6retirement incentive in this section to an employee who:
1.7(1) has at least 15 years of allowable service in one or more of the funds listed in
1.8Minnesota Statutes, section 356.30, subdivision 3, or has at least 15 years of coverage by
1.9the individual retirement account plan governed by Minnesota Statutes, chapter 354B,
1.10and upon retirement is immediately eligible for a retirement annuity or benefit from one
1.11or more of these funds;
1.12(2) accepts the incentive no later than December 31, 2010, and retires no later than
1.13June 30, 2011; and
1.14(3) is not in receipt of a retirement plan, retirement annuity, retirement allowance, or
1.15service pension from a fund listed in Minnesota Statutes, section 356.30, subdivision 3,
1.16during the month preceding the termination of qualified employment.
1.17(b) An eligible appointing authority is any appointing authority in the executive,
1.18legislative, or judicial branch of state government, the Public Employees Retirement
1.19Association, the Minnesota State Retirement System, the Teachers Retirement Association,
1.20or the Minnesota State Colleges and Universities.
1.21(c) An elected official is not eligible to receive an incentive under this section.
1.22(d) An employee who, after termination of employment, receives an employer
1.23contribution for health insurance, may not receive a payment for health insurance under
1.24this section from that appointing authority.
2.1 Subd. 2. Incentive. For an employee eligible under subdivision 1, the appointing
2.2authority will deposit into the employee's account in the health care savings plan
2.3established in Minnesota Statutes, section 352.98, up to 24 months of the employer
2.4contribution, as specified in the collective bargaining agreement or compensation plan
2.5covering the position from which the employee terminates service, for health and dental
2.6insurance for the employee, and, if the employee had dependent coverage immediately
2.7before retirement, for the employee's dependents. The contributions provided under this
2.8section are those the employee was receiving as of the date of termination, subject to any
2.9changes in contributions specified in the collective bargaining agreement or compensation
2.10plan covering the position from which the employee terminated service.
2.11 Subd. 3. Employer discretion; implementation. Provision of an incentive under
2.12this section is at the discretion of the appointing authority. Appointing authorities in the
2.13executive branch must apply for approval from the commissioner of management and
2.14budget before providing early retirement incentives under this section. All appointing
2.15authorities and the commissioner's review must give consideration to issues such as
2.16equity within the agency, budgetary constraints, and workforce planning concerns. The
2.17appointing authority will determine the date of retirement upon consultation with the
2.18employee. Unilateral implementation of this section by the appointing authority is not an
2.19unfair labor practice under Minnesota Statutes, chapter 179A.
2.20 Subd. 4. Acceptance. An employee who is eligible for an incentive under this
2.21section, who is offered an incentive by the appointing authority, and who accepts the
2.22incentive offer, must do so in writing. A copy of the acceptance document must be
2.23provided by the appointing authority to the applicable retirement plan within 15 days of
2.24its execution.
2.25 Subd. 5. Reemployment prohibition. An individual who receives an incentive
2.26payment under this section may not be reemployed or hired as a consultant by any agency
2.27or entity that participates in the State Employee Group Insurance Program for a period
2.28of three years after termination of service.
2.29 Subd. 6. Report. The commissioner of management and budget must report to the
2.30legislature by April 2, 2011, regarding use of the retirement incentive for calendar year
2.312010, with a recommendation regarding renewal of the incentive.
2.32 Sec. 2. EFFECTIVE DATE.
2.33This act is effective the day following final enactment.
1.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.4 Section 1. RETIREMENT INCENTIVE.
1.5 Subdivision 1. Eligibility. (a) An eligible appointing authority may provide the
1.6retirement incentive in this section to an employee who:
1.7(1) has at least 15 years of allowable service in one or more of the funds listed in
1.8Minnesota Statutes, section 356.30, subdivision 3, or has at least 15 years of coverage by
1.9the individual retirement account plan governed by Minnesota Statutes, chapter 354B,
1.10and upon retirement is immediately eligible for a retirement annuity or benefit from one
1.11or more of these funds;
1.12(2) accepts the incentive no later than December 31, 2010, and retires no later than
1.13June 30, 2011; and
1.14(3) is not in receipt of a retirement plan, retirement annuity, retirement allowance, or
1.15service pension from a fund listed in Minnesota Statutes, section 356.30, subdivision 3,
1.16during the month preceding the termination of qualified employment.
1.17(b) An eligible appointing authority is any appointing authority in the executive,
1.18legislative, or judicial branch of state government, the Public Employees Retirement
1.19Association, the Minnesota State Retirement System, the Teachers Retirement Association,
1.20or the Minnesota State Colleges and Universities.
1.21(c) An elected official is not eligible to receive an incentive under this section.
1.22(d) An employee who, after termination of employment, receives an employer
1.23contribution for health insurance, may not receive a payment for health insurance under
1.24this section from that appointing authority.
2.1 Subd. 2. Incentive. For an employee eligible under subdivision 1, the appointing
2.2authority will deposit into the employee's account in the health care savings plan
2.3established in Minnesota Statutes, section 352.98, up to 24 months of the employer
2.4contribution, as specified in the collective bargaining agreement or compensation plan
2.5covering the position from which the employee terminates service, for health and dental
2.6insurance for the employee, and, if the employee had dependent coverage immediately
2.7before retirement, for the employee's dependents. The contributions provided under this
2.8section are those the employee was receiving as of the date of termination, subject to any
2.9changes in contributions specified in the collective bargaining agreement or compensation
2.10plan covering the position from which the employee terminated service.
2.11 Subd. 3. Employer discretion; implementation. Provision of an incentive under
2.12this section is at the discretion of the appointing authority. Appointing authorities in the
2.13executive branch must apply for approval from the commissioner of management and
2.14budget before providing early retirement incentives under this section. All appointing
2.15authorities and the commissioner's review must give consideration to issues such as
2.16equity within the agency, budgetary constraints, and workforce planning concerns. The
2.17appointing authority will determine the date of retirement upon consultation with the
2.18employee. Unilateral implementation of this section by the appointing authority is not an
2.19unfair labor practice under Minnesota Statutes, chapter 179A.
2.20 Subd. 4. Acceptance. An employee who is eligible for an incentive under this
2.21section, who is offered an incentive by the appointing authority, and who accepts the
2.22incentive offer, must do so in writing. A copy of the acceptance document must be
2.23provided by the appointing authority to the applicable retirement plan within 15 days of
2.24its execution.
2.25 Subd. 5. Reemployment prohibition. An individual who receives an incentive
2.26payment under this section may not be reemployed or hired as a consultant by any agency
2.27or entity that participates in the State Employee Group Insurance Program for a period
2.28of three years after termination of service.
2.29 Subd. 6. Report. The commissioner of management and budget must report to the
2.30legislature by April 2, 2011, regarding use of the retirement incentive for calendar year
2.312010, with a recommendation regarding renewal of the incentive.
2.32 Sec. 2. EFFECTIVE DATE.
2.33This act is effective the day following final enactment.