1.1                          A bill for an act 
  1.2             relating to public employment; providing phased 
  1.3             retirement and voluntary unpaid leave options to local 
  1.4             public employees. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [PHASED RETIREMENT.] 
  1.7      (a) This section applies to a public employee who: 
  1.8      (1) on the effective date of this section is regularly 
  1.9   scheduled to work 1,040 or more hours a year in a position 
  1.10  covered by the public employees retirement association general 
  1.11  employees retirement plan, correctional plan, or police and fire 
  1.12  plan; 
  1.13     (2) enters into an agreement with the governmental 
  1.14  subdivision to work a reduced schedule that is both: 
  1.15     (i) a reduction of at least 25 percent from the number of 
  1.16  regularly scheduled work hours; and 
  1.17     (ii) 1,040 hours or less in the covered position; and 
  1.18     (3) at the time of entering into the agreement under clause 
  1.19  (2), meets the age and service requirements necessary to receive 
  1.20  an unreduced retirement benefit from the plan. 
  1.21     (b) Notwithstanding any law to the contrary, for service 
  1.22  under an agreement entered into under paragraph (a), an employee:
  1.23     (1) may receive a retirement annuity from the plan without 
  1.24  separating from public service; and 
  1.25     (2) is not subject to the cessation of annuity provisions 
  2.1   in Minnesota Statutes, section 353.37.  
  2.2      (c) The number of hours worked, the work schedule, and the 
  2.3   duration of the phased retirement employment must be mutually 
  2.4   agreed to by the employee and the governmental subdivision.  The 
  2.5   governmental subdivision may not require a person to waive any 
  2.6   rights under a collective bargaining agreement as a condition of 
  2.7   participation in this section.  The governmental subdivision has 
  2.8   sole discretion to determine if and the extent to which phased 
  2.9   retirement under this section is available to an employee. 
  2.10     (d) Notwithstanding any law to the contrary, a person may 
  2.11  not earn service credit in the public employees retirement 
  2.12  association for employment covered under this section, and 
  2.13  employer contributions and payroll deductions for the retirement 
  2.14  fund must not be made based on earnings of a person working 
  2.15  under this section.  No change shall be made to a monthly 
  2.16  annuity or retirement allowance based on employment under this 
  2.17  section. 
  2.18     (e) A person who works under this section and meets the 
  2.19  definition of public employee under Minnesota Statutes, section 
  2.20  179A.03, subdivision 14, is a member of the appropriate 
  2.21  bargaining unit, is covered by the appropriate collective 
  2.22  bargaining contract or personnel policy, and is eligible for 
  2.23  health care coverage as provided in the collective bargaining 
  2.24  contract or personnel policy. 
  2.25     (f) An agreement under this section may apply only to work 
  2.26  arrangements entered into before June 30, 2005. 
  2.27     Sec. 2.  [VOLUNTARY HOUR REDUCTION PLAN.] 
  2.28     (a) This section applies to a public employee who: 
  2.29     (1) on the effective date of this section is regularly 
  2.30  scheduled to work 1,040 or more hours a year in a position 
  2.31  covered by a pension plan administered by the public employees 
  2.32  retirement association; and 
  2.33     (2) enters into an agreement with a governmental 
  2.34  subdivision to work a reduced schedule of 1,040 or less hours in 
  2.35  the covered position. 
  2.36     (b) Notwithstanding any law to the contrary, for service 
  3.1   under an agreement entered into under paragraph (a), 
  3.2   contributions may be made to the applicable plan of the public 
  3.3   employees retirement association as if the employee had not 
  3.4   reduced hours.  The employee must pay the employee contributions 
  3.5   and the employer must pay employer and additional employer 
  3.6   contributions necessary to bring the service credit and salary 
  3.7   up to the level prior to the voluntary reduction in hours.  
  3.8   Contributions must be made in a time and manner prescribed by 
  3.9   the executive director of the public employees retirement 
  3.10  association. 
  3.11     (c) The number of hours worked, the work schedule, and the 
  3.12  duration of the voluntary hour reduction must be mutually agreed 
  3.13  to by the employee and the governmental subdivision.  The 
  3.14  governmental subdivision may not require a person to waive any 
  3.15  rights under a collective bargaining agreement as a condition of 
  3.16  participation under this section.  The governmental subdivision 
  3.17  has sole discretion to determine if and the extent to which 
  3.18  voluntary hour reduction under this section is available to an 
  3.19  employee. 
  3.20     (d) A person who works under this section and meets the 
  3.21  definition of public employee under Minnesota Statutes, section 
  3.22  179A.03, subdivision 14, is a member of an appropriate 
  3.23  bargaining unit, is covered by an appropriate collective 
  3.24  bargaining contract or personnel policy, and is eligible for 
  3.25  health care coverage as provided in a collective bargaining 
  3.26  contract or personnel policy. 
  3.27     (e) An agreement under this section may apply only to work 
  3.28  arrangements entered into before June 30, 2005. 
  3.29     Sec. 3.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
  3.30     (a) Governmental subdivisions may allow employees to take 
  3.31  unpaid leaves of absence between June 1, 2003, and June 30, 
  3.32  2005.  Each governmental subdivision approving a leave shall 
  3.33  allow the employee to continue accruing vacation and sick leave, 
  3.34  be eligible for paid holidays and insurance benefits, accrue 
  3.35  seniority, and accrue service credit and credited salary in the 
  3.36  public employees retirement association as if the employee had 
  4.1   actually been employed during the time of leave.  If the leave 
  4.2   of absence is for one full pay period or longer, any holiday pay 
  4.3   shall be included in the first payroll warrant after return from 
  4.4   the leave of absence.  The governmental subdivision shall 
  4.5   attempt to grant requests for the unpaid leaves of absence 
  4.6   consistent with the need to continue efficient operation of the 
  4.7   governmental subdivision.  However, each governmental 
  4.8   subdivision shall retain discretion to grant or refuse to grant 
  4.9   requests for leaves of absence and to schedule and cancel 
  4.10  leaves, subject to the applicable provisions of collective 
  4.11  bargaining agreements and personnel policy. 
  4.12     (b) To receive eligible service credit, the member shall 
  4.13  pay an amount equal to the applicable employee contribution 
  4.14  rates.  If an employee pays the employee contribution for the 
  4.15  period of the leave under this section, the governmental 
  4.16  subdivision must pay the employer contribution and the 
  4.17  additional employer contribution.  The governmental subdivision 
  4.18  may, at its discretion, pay employee, employer, and additional 
  4.19  employer contributions to the public employees retirement 
  4.20  association for the period of leave under this section.  
  4.21  Contributions must be made in a time and manner prescribed by 
  4.22  the executive director of the public employees retirement 
  4.23  association. 
  4.24     Sec. 4.  [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 
  4.25     Before agreeing to an option under this act, a governmental 
  4.26  subdivision must designate the job classifications or positions 
  4.27  within job classifications that qualify for each option.  The 
  4.28  governmental subdivision may modify this designation at any 
  4.29  time.  Designation of positions eligible for the options and 
  4.30  participation of individual employees under this act are at the 
  4.31  sole discretion of the governmental subdivision.  Implementation 
  4.32  of this act by the employer is not an unfair labor practice 
  4.33  under Minnesota Statutes, chapter 179A, or an unfair 
  4.34  discriminatory practice under Minnesota Statutes, chapter 363. 
  4.35     Sec. 5.  [RELATIONSHIP OF SECTIONS.] 
  4.36     (a) An employee covered by a phased retirement agreement 
  5.1   under section 1 may not be covered by the voluntary hour 
  5.2   reduction provisions of section 2 or by a voluntary unpaid leave 
  5.3   of absence agreement under section 3 during the same time period 
  5.4   or any later time period. 
  5.5      (b) An employee covered by the voluntary hour reduction 
  5.6   provisions of section 2: 
  5.7      (1) may not be covered by a phased retirement agreement 
  5.8   under section 1 during the same time period, but may be covered 
  5.9   by a phased retirement agreement under section 1 during a later 
  5.10  time period; and 
  5.11     (2) may be covered by the voluntary leave of absence 
  5.12  provision of section 3 during an earlier or later time period. 
  5.13     Sec. 6.  [EFFECTIVE DATE.] 
  5.14     Sections 1 to 5 are effective the day following final 
  5.15  enactment.