1.1                          A bill for an act 
  1.2             relating to retirement; providing early retirement 
  1.3             incentives for certain teachers. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [EARLY RETIREMENT INCENTIVE.] 
  1.6      Subdivision 1.  [BOARD MUST OFFER.] A school board, a joint 
  1.7   vocational technical district under Minnesota Statutes, section 
  1.8   136C.60, or an intermediate school district under Minnesota 
  1.9   Statutes, chapter 136D, or Minnesota state colleges and 
  1.10  universities must offer the early retirement incentive provided 
  1.11  in this section to a teacher, as defined in Minnesota Statutes, 
  1.12  section 354.05, subdivision 2, or 354A.011, subdivision 27, who 
  1.13  is eligible under subdivision 2. 
  1.14     Subd. 2.  [ELIGIBILITY.] A teacher is eligible to receive 
  1.15  the incentive if the person: 
  1.16     (1) has at least 25 years of combined service credit in any 
  1.17  Minnesota public pension plans governed by Minnesota Statutes, 
  1.18  section 356.30, subdivision 3, or is at least 65 years old and 
  1.19  has at least one year of combined service credit in these 
  1.20  pension plans; 
  1.21     (2) upon retirement is immediately eligible for a 
  1.22  retirement benefit from a public pension plan under Minnesota 
  1.23  Statutes, chapter 354, 354A, or 354B; 
  1.24     (3) is at least 55 years of age; and 
  2.1      (4) retires on or after May 1, 2003, and before June 30, 
  2.2   2004. 
  2.3      Subd. 3.  [INCENTIVE.] For a person who selects the 
  2.4   incentive under this section, the multiplier percentage used to 
  2.5   calculate the retirement annuity must be increased by .10 for 
  2.6   each year of allowable service credit up to 30 years. 
  2.7      Subd. 4.  [CONDITIONS.] For purposes of this section, a 
  2.8   person retires when the person terminates active employment and 
  2.9   applies for retirement benefits.  An employee who retires under 
  2.10  this section using the rule of 90 must not be included in the 
  2.11  calculations required by Minnesota Statutes, section 356.85. 
  2.12     Sec. 2.  [EMPLOYER-PAID HEALTH INSURANCE.] 
  2.13     Subdivision 1.  [PUBLIC EMPLOYEES.] A school district, 
  2.14  intermediate school district, joint vocational technical 
  2.15  district formed under Minnesota Statutes, sections 136C.60 to 
  2.16  136C.69, or the Minnesota state colleges and universities, shall 
  2.17  provide employer-paid hospital, medical, and dental benefits to 
  2.18  a person who: 
  2.19     (1) is eligible for employer-paid insurance under 
  2.20  collective bargaining agreements or personnel plans in effect on 
  2.21  the day before the effective date of this section; 
  2.22     (2) has at least 25 years of combined service credit in any 
  2.23  Minnesota public pension plans other than volunteer firefighter 
  2.24  plans; 
  2.25     (3) has at least as many months of service with the current 
  2.26  employer as the number of months younger than age 65 the person 
  2.27  is at the time of retirement; 
  2.28     (4) upon retirement is immediately eligible for a 
  2.29  retirement benefit from a public pension plan under Minnesota 
  2.30  Statutes, chapter 354, 354A, or 354B; 
  2.31     (5) is at least 55 and not yet 65 years of age; and 
  2.32     (6) in the case of a school district or Minnesota state 
  2.33  colleges and universities employee, retires on or after May 1, 
  2.34  2003, and before June 30, 2004; and in the case of an employee 
  2.35  of another employer in this subdivision, retires on or after 
  2.36  July 1, 2003, and before July 1, 2004.  
  3.1      Subd. 2.  [CONDITIONS; COVERAGE.] For purposes of this 
  3.2   section, a person retires when the person terminates active 
  3.3   employment and applies for retirement benefits.  The retired 
  3.4   employee is eligible for single and dependent coverages and 
  3.5   employer payments to which the person was entitled immediately 
  3.6   before retirement, subject to any changes in coverage and 
  3.7   employer and employee payments through collective bargaining or 
  3.8   personnel plans, for employees in positions equivalent to the 
  3.9   position from which the employee retired.  The retired employee 
  3.10  is not eligible for employer-paid life insurance.  Eligibility 
  3.11  ceases when the retired employee attains the age of 65, or when 
  3.12  the employee chooses not to receive the retirement benefits for 
  3.13  which the employee has applied, or when the employee is eligible 
  3.14  for employer-paid health insurance from a new employer.  
  3.15  Coverages must be coordinated with relevant health insurance 
  3.16  benefits provided through the federally sponsored Medicare 
  3.17  program.  
  3.18     Subd. 3.  [RULE OF 90.] An employee who retires under this 
  3.19  section using the rule of 90 must not be included in the 
  3.20  calculations required by Minnesota Statutes, section 356.85. 
  3.21     Subd. 4.  [APPLICATION OF OTHER LAWS.] Unilateral 
  3.22  implementation of this section by a public employer is not an 
  3.23  unfair labor practice for purposes of Minnesota Statutes, 
  3.24  chapter 179A.  The authority provided in this section for an 
  3.25  employer to pay health insurance costs for certain retired 
  3.26  employees is not subject to the limits in Minnesota Statutes, 
  3.27  section 179A.20, subdivision 2a.  
  3.28     Subd. 5.  [SCHOOL DISTRICT LEVY.] A school district may 
  3.29  levy the amount necessary to make employer contributions for 
  3.30  insurance for retired employees under this section.