1.1 	A bill for an act
1.2 	relating to state government; modifying provisions governing eligibility for a 
1.3 	postretirement option;amending Minnesota Statutes 2010, section 43A.346, 
1.4 	subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 43A.346, subdivision 2, is amended to 
1.7 	read:
1.8 		Subd. 2.Eligibility. (a) This section applies to a terminated state employee who:
1.9 	(1) for at least the five years immediately preceding separation under clause (2), 
1.10 	was regularly scheduled to work 1,044 or more hours per year in a position covered by 
1.11 	a pension plan administered by the Minnesota State Retirement System or the Public 
1.12 	Employees Retirement Association;
1.13 	(2) terminated state or Metropolitan Council employment;
1.14 	(3) at the time of termination under clause (2),: (i) was age 62 or met the age and 
1.15 	service requirements necessary to receive an unreduced retirement annuity from the plan; 
1.16 	 and (ii) satisfied requirements for the commencement of the retirement annuity or, for a 
1.17 	terminated employee under the unclassified employees retirement plan,: (i) was age 62 or
1.18 	met the age and service requirements necessary to receive an unreduced retirement annuity 
1.19 	from the plan;  and (ii) satisfied requirements for the commencement of the retirement 
1.20 	annuity or elected a lump-sum payment; and
1.21 	(4) agrees to accept a postretirement option position with the same or a different 
1.22 	appointing authority, working a reduced schedule that is both (i) a reduction of at least 25 
1.23 	percent from the employee's number of previously regularly scheduled work hours; and 
1.24 	(ii) 1,044 hours or less in state or Metropolitan Council service.
2.1 	(b) For purposes of this section, an unreduced retirement annuity includes a 
2.2 	retirement annuity computed under a provision of law which permits retirement, without 
2.3 	application of an earlier retirement reduction factor, whenever age plus years of allowable 
2.4 	service total at least 90.
2.5 	(c) For purposes of this section, as it applies to state employees who are members 
2.6 	of the Public Employees Retirement Association who are at least age 62, the length of 
2.7 	separation requirement and termination of service requirement prohibiting return to work 
2.8 	agreements under section 353.01, subdivisions 11a and 28, are not applicable.