SF 1417

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:20am

A bill for an act
relating to retirement; modifying early retirement initiative; amending Minnesota
Statutes 2008, section 356.351, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2008, section 356.351, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) An eligible appointing authority may offer the early
retirement incentive in this section to an employee who:

(1) has at least 15 years of allowable service in one or more of the funds listed
in section 356.30, subdivision 3, or has at least 15 years of coverage by the individual
retirement account plan governed by chapter 354B and upon retirement is immediately
eligible for a retirement annuity or benefit from one or more of these funds;

(2) terminates service after the effective date of this section, and before deleted text begin July 15,
2009 deleted text end new text begin October 1, 2010 new text end ; and

(3) is not in receipt of a public retirement plan retirement annuity, retirement
allowance, or service pension during the month preceding the termination of qualified
employment.

(b) An eligible appointing authority is any Minnesota governmental employing unit
which employs one or more employees with retirement coverage by a retirement plan
listed in section 356.30 by virtue of that employment.

(c) An elected official is not eligible to receive an incentive under this section.

Sec. 2.

Minnesota Statutes 2008, section 356.351, subdivision 2, is amended to read:

Subd. 2.

Incentive.

(a) For an employee eligible under subdivision 1, if approved
under paragraph (b), the employer may provide an amount up to deleted text begin $17,000 deleted text end new text begin the cost of
purchasing an additional six months of health insurance plus the amount that would be
received for 72 weeks of unemployment compensation new text end , to an employee who terminates
service, to be used:

(1) unless the appointing authority has designated the use under clause (2) or the use
under clause (3) for the initial retirement incentive applicable to that employing entity
under Laws 2007, chapter 134, after May 26, 2007, for deposit in the employee's account
in the health care savings plan established by section 352.98;

(2) notwithstanding section 352.01, subdivision 11, or 354.05, subdivision 13,
whichever applies, if the appointing authority has designated the use under this clause
for the initial retirement incentive applicable to that employing entity under Laws 2007,
chapter 134, after May 26, 2007, for purchase of service credit for unperformed service
sufficient to enable the employee to retire under section 352.116, subdivision 1, paragraph
(b); 353.30; 354.44, subdivision 6, paragraph (b), or 354A.31, subdivision 6, paragraph
(b), whichever applies; or

(3) if the appointing authority has designated the use under this clause for the initial
retirement incentive applicable to the employing entity under Laws 2007, chapter 134,
after May 26, 2007, for purchase of a lifetime annuity or an annuity for a specific number
of years from the applicable retirement plan to provide additional benefits, as provided in
paragraph (d).

(b) Approval to provide the incentive must be obtained from the commissioner
of finance if the eligible employee is a state employee and must be obtained from the
applicable governing board with respect to any other employing entity. An employee is
eligible for the payment under paragraph (a), clause (2), if the employee uses money from
a deferred compensation account that, combined with the payment under paragraph (a),
clause (2), would be sufficient to purchase enough service credit to qualify for retirement
under section 352.116, subdivision 1, paragraph (b); 353.30, subdivision 1a; 354.44,
subdivision 6, paragraph (b), or 354A.31, subdivision 6, paragraph (b), whichever applies.

(c) The cost to purchase service credit under paragraph (a), clause (2), must be
made in accordance with section 356.551.

(d) The annuity purchase under paragraph (a), clause (3), must be made using
annuity factors derived from the applicable factors used by the applicable retirement plan
to transfer amounts to the Minnesota postretirement investment fund and to calculate
optional annuity forms. The purchased annuity must be the actuarial equivalent of the
incentive amount.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end