SF 1845

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state employment; creating a
postretirement employment option; authorizing a
voluntary hours reduction plan.

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

Section 1. new text begin DEFINITION.
new text end

new text begin For purposes of sections 2 and 3, "state employee" means a
person currently occupying a civil service position in the
executive branch of state government, the Minnesota State
Retirement System, or the Office of the Legislative Auditor.
new text end

Sec. 2. new text begin POSTRETIREMENT OPTION.
new text end

new text begin (a) This section applies to a state employee who:
new text end

new text begin (1) for at least the five years immediately preceding
separation under clause (2), has been regularly scheduled to
work 1,044 or more hours a year in a position covered by a
pension plan administered by the Minnesota State Retirement
System;
new text end

new text begin (2) terminates state employment;
new text end

new text begin (3) at the time of termination under clause (2), meets the
age and service requirements necessary to receive an unreduced
retirement annuity from the plan and satisfies requirements for
the commencement of the retirement annuity or, for an employee
under the state unclassified employees retirement plan, meets
the age and service requirements necessary to receive an
unreduced retirement annuity from the plan and satisfies
requirements for the commencement of the retirement annuity or
elects a lump-sum payment; and
new text end

new text begin (4) agrees to accept a postretirement option position with
the same or a different appointing authority, working a reduced
schedule that is both (i) a reduction of at least 25 percent
from the employee's number of regularly scheduled work hours;
and (ii) 1,044 hours or less in state service.
new text end

new text begin (b) Notwithstanding any law to the contrary, postretirement
option positions shall be in the unclassified service but shall
not be covered by the Minnesota State Retirement System
unclassified employees plan.
new text end

new text begin (c) Notwithstanding any law to the contrary, when an
eligible state employee in a postretirement option position
commences receipt of the annuity, the provisions of Minnesota
Statutes, section 352.115, subdivision 10, governing annuities
of reemployed annuitants, shall not apply for the duration of
employment in the position.
new text end

new text begin (d) The appointing authority has sole discretion to
determine if and the extent to which a postretirement option
position under this section is available to a state employee.
Any offer of such a position must be made in writing to the
employee by the appointing authority on a form prescribed by the
Department of Employee Relations and the Minnesota State
Retirement System. The appointing authority may not require a
person to waive any rights under a collective bargaining
agreement or unrepresented employee compensation plan as a
condition of participation.
new text end

new text begin (e) Postretirement option employment shall be for an
initial period not to exceed one year. During that period, the
appointing authority may not modify the conditions specified in
the written offer without the employee's agreement, except as
required by law or by the collective bargaining agreement or
compensation plan applicable to the employee. At the end of the
initial period, the appointing authority has sole discretion to
determine if the offer of a postretirement option position will
be renewed, renewed with modifications, or terminated.
Postretirement option employment may be renewed for periods of
up to one year, not to exceed a total duration of five years.
No person shall be employed in one or a combination of
postretirement option positions under this section for a total
of more than five years.
new text end

new text begin (f) The appointing authority shall provide the Minnesota
State Retirement System with a copy of the offer, the employee's
acceptance of the terms, and any subsequent renewal agreement.
new text end

new text begin (g) Notwithstanding any law to the contrary, a person may
not earn service credit in the Minnesota State Retirement System
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
this section. No change shall be made to a monthly annuity or
retirement allowance based on employment under this section.
new text end

new text begin (h) Notwithstanding any law to the contrary, the appointing
authority will make an employer insurance contribution for a
person who is employed in a postretirement option position under
this section and who is not receiving any other state-paid
employer insurance contribution. The amount of the contribution
will be equal to the percent time worked in the postretirement
option position (hours scheduled to be worked annually divided
by 2,088) times 1.5 times the full employer contribution for
employee only health and dental coverage. The appointing
authority will contribute that amount to a health reimbursement
arrangement.
new text end

new text begin (i) If a person has been in a postretirement option
position and accepts any other position in state service, in the
subsequent state employment the person may not earn service
credit in the Minnesota State Retirement System, no employer
contributions or payroll deductions for the retirement fund
shall be made, and the provisions of Minnesota Statutes, section
352.115, subdivision 10, shall apply.
new text end

Sec. 3. new text begin VOLUNTARY HOURS REDUCTION PLAN.
new text end

new text begin (a) This section applies to a state employee who:
new text end

new text begin (1) is regularly scheduled to work 1,044 or more hours a
year in a position covered by a pension plan administered by the
Minnesota State Retirement System; and
new text end

new text begin (2) enters into an agreement with the appointing authority
to work a reduced schedule of 1,044 hours or less in the covered
position.
new text end

new text begin (b) Notwithstanding any law to the contrary, for service
under an agreement entered into under paragraph (a),
contributions may be made to the applicable plan of the
Minnesota State Retirement System as if the employee had not
reduced hours. The employee must pay the additional employee
contributions and the employer must pay the additional employer
contributions necessary to bring the service credit and salary
up to the level prior to the voluntary reduction in hours.
Contributions must be made in a time and manner prescribed by
the executive director of the Minnesota State Retirement System.
new text end

new text begin (c) The appointing authority has sole discretion to
determine if and the extent to which voluntary hours reduction
under this section is available to an employee. The number of
hours to be worked per pay period and the end date of the
voluntary hours reduction arrangement must be agreed to, in
writing, by the employee and the appointing authority. Either
the appointing authority or the employee may terminate the hours
reduction arrangement prior to the end date with 30 days'
written notice to the other. The appointing authority shall
provide the Minnesota State Retirement System with a copy of the
agreement and any termination notice.
new text end

new text begin (d) Implementation of the voluntary hours reduction
arrangement or of any change required by the termination of an
arrangement is subject to provisions of the applicable
collective bargaining agreement or unrepresented employee
compensation plan. The appointing authority may not require a
person to waive any rights under a collective bargaining
agreement or unrepresented employee compensation plan as a
condition of participation under this section.
new text end

new text begin (e) No person shall be employed in one or a combination of
voluntary hours reduction arrangements under this section for a
total of more than three years.
new text end