1.1                          A bill for an act 
  1.2             relating to retirement; authorizing an early 
  1.3             retirement incentive for employees of a metropolitan 
  1.4             agency, the metropolitan council, and the Minnesota 
  1.5             historical society. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [EARLY RETIREMENT INCENTIVE.] 
  1.8      The metropolitan council, a metropolitan agency as defined 
  1.9   by Minnesota Statutes, section 473.121, subdivision 5a, or the 
  1.10  Minnesota historical society may offer its eligible employees 
  1.11  the early retirement incentive provided in sections 1 to 7. 
  1.12     Sec. 2.  [ELIGIBILITY.] 
  1.13     An employee of a public employer specified in section 1 is 
  1.14  eligible to receive the early retirement incentive if the 
  1.15  employee: 
  1.16     (1) has at least 25 years of combined service credit in any 
  1.17  covered fund or funds listed in Minnesota Statutes, section 
  1.18  356.30, subdivision 3, or for purposes of the incentive in 
  1.19  section 3, subdivision 2 only, is at least 65 years old and has 
  1.20  at least one year of combined service credit in these covered 
  1.21  funds; 
  1.22     (2) upon retirement is immediately eligible for a 
  1.23  retirement annuity from a defined benefit plan, if the person is 
  1.24  a member of a defined benefit plan; 
  1.25     (3) is at least 55 years of age; and 
  2.1      (4) retires on or after May 23, 1995, and before January 
  2.2   31, 1996. 
  2.3      Sec. 3.  [EARLY RETIREMENT INCENTIVE.] 
  2.4      Subdivision 1.  [CHOICE.] An eligible employee may not 
  2.5   choose both the incentive in subdivision 2 and the incentive in 
  2.6   subdivision 3.  The public employers specified in section 1 that 
  2.7   choose to offer the early retirement incentive must offer each 
  2.8   employee eligible for both incentives a choice between the 
  2.9   incentive in subdivision 2 or 3. 
  2.10     Subd. 2.  [FORMULA INCREASE OPTION.] For an employee 
  2.11  covered by a retirement plan established in Minnesota Statutes, 
  2.12  section 352.115, 352.116, 353.29, or 353.30, or chapter 354 or 
  2.13  422A, who selects the incentive under this subdivision, the 
  2.14  multiplier percentage used to calculate the retirement annuity 
  2.15  must be increased for each year of service credit up to 30 
  2.16  years.  The amount of the increase is: 
  2.17     (1) .25 for each year of service credit calculated under 
  2.18  Minnesota Statutes, section 352.115, 352.116, 353.29, or 353.30, 
  2.19  or chapter 422A; and 
  2.20     (2) .10 for each year of service credit calculated under 
  2.21  Minnesota Statutes, chapter 354 or 354A.  
  2.22     If an employee has more than 30 years of service credit, 
  2.23  the increased multiplier applies only to the first 30 years. 
  2.24     Subd. 3.  [INSURANCE OPTION.] For an employee who selects 
  2.25  the incentive under this subdivision, the employer must pay for 
  2.26  hospital, medical, and dental insurance under the following 
  2.27  conditions and limitations.  An employee is eligible for this 
  2.28  employer-paid insurance only if the person: 
  2.29     (1) is eligible for employer-paid insurance under a 
  2.30  collective bargaining agreement or personnel plan in effect on 
  2.31  the day before the effective date of sections 1 to 7; 
  2.32     (2) has at least as many months of service with the current 
  2.33  employer as the number of months younger than age 65 the person 
  2.34  is at the time of retirement; and 
  2.35     (3) is under age 65. 
  2.36     Subd. 4.  [INCLUSION.] A public employer that offers 
  3.1   incentives under sections 1 to 7 may not exclude eligible 
  3.2   employees. 
  3.3      Sec. 4.  [REHIRING.] 
  3.4      A public employer may not hire a replacement for an 
  3.5   employee who retires under this subdivision, except with 
  3.6   specific approval of that hiring by the governing body. 
  3.7      Sec. 5.  [RETIREMENT.] 
  3.8      For purposes of sections 1 to 7, an employee retires when 
  3.9   the employee terminates active employment and applies for 
  3.10  retirement benefits. 
  3.11     Sec. 6.  [CONDITIONS; INSURANCE COVERAGE.] 
  3.12     A retired employee is eligible for single and dependent 
  3.13  insurance coverages and employer payments to which the employee 
  3.14  was entitled immediately before retirement, subject to any 
  3.15  changes in coverage and employer and employee payments through 
  3.16  collective bargaining or personnel plans for employees in 
  3.17  positions equivalent to the position from which the employee 
  3.18  retired.  The retired employee is not eligible for employer-paid 
  3.19  life insurance.  Eligibility ceases when the retired employee 
  3.20  attains the age of 65, chooses not to receive the retirement 
  3.21  benefits for which the employee has applied, or becomes eligible 
  3.22  for employer-paid health insurance from a new employer.  
  3.23  Coverages must be coordinated with relevant health insurance 
  3.24  benefits provided through the federally sponsored Medicare 
  3.25  program. 
  3.26     Sec. 7.  [APPLICATION OF OTHER LAWS.] 
  3.27     Unilateral implementation of sections 1 to 7 by a public 
  3.28  employer is not an unfair labor practice for purposes of 
  3.29  Minnesota Statutes, chapter 179A.  The requirement in sections 1 
  3.30  to 7 for an employer to pay health insurance coverage costs for 
  3.31  certain retired employees is not subject to the limits in 
  3.32  Minnesota Statutes, section 179A.20, subdivision 2a. 
  3.33     Sec. 8.  [EFFECTIVE DATE.] 
  3.34     Sections 1 to 7 are effective the day after final enactment.