Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 602-H.F.No. 2658 
                  An act relating to retirement; waiving the annuity 
                  reduction for certain faculty in the state university 
                  and community college systems who return to teaching 
                  part-time after retirement; mandating employer-paid 
                  health insurance for these faculty; proposing coding 
                  for new law in Minnesota Statutes, chapters 136 and 
                  354. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [136.90] [EMPLOYER-PAID HEALTH INSURANCE.] 
           (a) This section applies to a person who: 
           (1) retires from the state university system or the 
        community college system, or from a successor system employing 
        state university or community college faculty, with at least ten 
        years of service credit in the system from which the person 
        retires; 
           (2) was employed on a full-time basis immediately preceding 
        retirement as a state university or community college faculty 
        member; 
           (3) begins drawing an annuity from the teachers retirement 
        association; and 
           (4) returns to work on not less than a one-third time basis 
        and not more than a two-thirds time basis in the system from 
        which the person retired under an agreement in which the person 
        may not earn a salary of more than $35,000 in a calendar year 
        from employment in the system from which the person retired. 
           (b) Initial participation, the amount of time worked, and 
        the duration of participation under this section must be 
        mutually agreed upon by the employer and the employee.  The 
        employer may require up to one-year notice of intent to 
        participate in the program as a condition of participation under 
        this section.  The employer shall determine the time of year the 
        employee shall work.  
           (c) For a person eligible under paragraphs (a) and (b), the 
        employing board shall make the same employer contribution for 
        hospital, medical, and dental benefits as would be made if the 
        person were employed full-time. 
           (d) For work under paragraph (a), a person must receive a 
        percentage of the person's salary at the time of retirement that 
        is equal to the percentage of time the person works compared to 
        full-time work. 
           (e) If a collective bargaining agreement covering a person 
        provides for an early retirement incentive that is based on age, 
        the incentive provided to the person must be based on the 
        person's age at the time employment under this section ends.  
        However, the salary used to determine the amount of the 
        incentive must be the salary that would have been paid if the 
        person had been employed full-time for the year immediately 
        preceding the time employment under this section ends. 
           Sec. 2.  [354.445] [NO ANNUITY REDUCTION.] 
           (a) The annuity reduction provisions of section 354.44, 
        subdivision 5, do not apply to a person who: 
           (1) retires from the state university system or the 
        community college system, or from a successor system employing 
        state university or community college faculty, with at least ten 
        years of service credit in the system from which the person 
        retires; 
           (2) was employed on a full-time basis immediately preceding 
        retirement as a state university or community college faculty 
        member; 
           (3) begins drawing an annuity from the teachers retirement 
        association; and 
           (4) returns to work on not less than a one-third time basis 
        and not more than a two-thirds time basis in the system from 
        which the person retired under an agreement in which the person 
        may not earn a salary of more than $35,000 in a calendar year 
        from employment in the system from which the person retired. 
           (b) Initial participation, the amount of time worked, and 
        the duration of participation under this section must be 
        mutually agreed upon by the employer and the employee.  The 
        employer may require up to one-year notice of intent to 
        participate in the program as a condition of participation under 
        this section.  The employer shall determine the time of year the 
        employee shall work.  
           (c) Notwithstanding any law to the contrary, a person 
        eligible under paragraphs (a) and (b) may not earn further 
        service credit in the teachers retirement association and is not 
        eligible to participate in the individual retirement account 
        plan or the supplemental retirement plan established in chapter 
        354B as a result of service under this section.  No employer or 
        employee contribution to any of these plans may be made on 
        behalf of such a person. 
           Presented to the governor May 5, 1994 
           Signed by the governor May 9, 1994, 4:30 p.m.