1.1 	A bill for an act
1.2 	relating to retirement; modifying state employee postretirement employment 
1.3 	provisions;amending Minnesota Statutes 2006, sections 43A.346, subdivisions 
1.4 	5, 6; 352.115, subdivision 10; 356.47, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 43A.346, subdivision 5, is amended to 
1.7 	read:
1.8 		Subd. 5.Appointing authority discretion. The appointing authority has sole 
1.9 	discretion to determine if and the extent to which a postretirement option position under 
1.10 	this section is available to a state employee. Any offer of such a position must be made 
1.11 	in writing to the employee by the appointing authority on a form prescribed by the 
1.12 	Department of Employee Relations and the Minnesota State Retirement System or the 
1.13 	Public Employees Retirement Association. The offer, and any related verbal offer or 
1.14 	agreement, must not be made until at least 30 days after the employee's retirement. The 
1.15 	appointing authority may not require a person to waive any rights under a collective 
1.16 	bargaining agreement or unrepresented employee compensation plan as a condition of 
1.17 	participation.

1.18 	EFFECTIVE DATE. This section is effective the day following final enactment 
1.19 	and applies to employees retiring after that date.

1.20 	Sec. 2. Minnesota Statutes 2006, section 43A.346, subdivision 6, is amended to read:
1.21 		Subd. 6.Duration. Postretirement option employment shall be for an initial period 
1.22 	not to exceed one year. During that period, the appointing authority may not modify the 
1.23 	conditions specified in the written offer without the employee's agreement, except as 
2.1 	required by law or by the collective bargaining agreement or compensation plan applicable 
2.2 	to the employee. At the end of the initial period, the appointing authority has sole 
2.3 	discretion to determine if the offer of a postretirement option position will be renewed, 
2.4 	renewed with modifications, or terminated. For retirees employed under this section on 
2.5 	the effective date of this section, an offer of renewal, and any related verbal offer or 
2.6 	agreement, must not be made until at least 30 days after termination of the employee's 
2.7 	previous position. Postretirement option employment may be renewed for periods of up 
2.8 	to one year, not to exceed a total duration of five years. No person shall be employed in 
2.9 	one or a combination of postretirement option positions under this section for a total 
2.10 	of more than five years.

2.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.12 	Sec. 3. Minnesota Statutes 2006, section 352.115, subdivision 10, is amended to read:
2.13 		Subd. 10.Reemployment of annuitant. (a) If any retired employee again becomes 
2.14 	entitled to receive salary or wages from the state, or any employer who employs state 
2.15 	employees as that term is defined in section 352.01, subdivision 2, other than salary or 
2.16 	wages received as a temporary employee of the legislature during a legislative session, 
2.17 	the annuity or retirement allowance shall cease when the retired employee has earned an 
2.18 	amount equal to the annual maximum earnings allowable for that age for the continued 
2.19 	receipt of full benefit amounts monthly under the federal old age, survivors, and disability 
2.20 	insurance program as set by the secretary of health and human services under United 
2.21 	States Code, title 42, section 403, worked 1,045 hours in any calendar year. If When
2.22 	the retired employee has not yet reached reaches the minimum age for the receipt of 
2.23 	Social Security benefits, the maximum earnings for the retired employee shall be equal to 
2.24 	the annual maximum earnings allowable for the minimum age for the receipt of Social 
2.25 	Security benefits this limit does not apply. 
2.26 	(b) The balance of the annual retirement annuity after cessation must be handled or 
2.27 	disposed of as provided in section 356.47.
2.28 	(c) The annuity must be resumed when state service ends, or, if the retired employee 
2.29 	is still employed at the beginning of the next calendar year, at the beginning of that 
2.30 	calendar year, and payment must again end when the retired employee has earned the 
2.31 	applicable reemployment earnings maximum specified in this subdivision. If the retired 
2.32 	employee is granted a sick leave without pay, but not otherwise, the annuity or retirement 
2.33 	allowance must be resumed during the period of sick leave.
2.34 	(d) (c) No payroll deductions for the retirement fund may be made from the earnings 
2.35 	of a reemployed retired employee.
3.1 	(e) (d) No change shall be made in the monthly amount of an annuity or retirement 
3.2 	allowance because of the reemployment of an annuitant.

3.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
3.4 	and applies to employees retiring after that date.

3.5 	Sec. 4. Minnesota Statutes 2006, section 356.47, subdivision 1, is amended to read:
3.6 		Subdivision 1.Application. This section applies to the balance of annual retirement 
3.7 	annuities on the amount of retirement annuity reductions after reemployed annuitant 
3.8 	earnings limitations for retirement plans governed by section 352.115, subdivision 10;
3.9 	353.37; 354.44, subdivision 5; or 354A.31, subdivision 3. 

3.10 	EFFECTIVE DATE. This section is effective the day following final enactment.