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Office of the Revisor of Statutes

43A.346 POSTRETIREMENT OPTION.
    Subdivision 1. Definition. For purposes of this section, "state employee" means a person
currently occupying a civil service position in the executive or legislative branch of state
government, the Minnesota State Retirement System, the Public Employees Retirement
Association, or the Office of the Legislative Auditor, or a person employed by the Metropolitan
Council.
    Subd. 2. Eligibility. (a) This section applies to a state or Metropolitan Council employee who:
    (1) for at least the five years immediately preceding separation under clause (2), has been
regularly scheduled to work 1,044 or more hours per year in a position covered by a pension plan
administered by the Minnesota State Retirement System or the Public Employees Retirement
Association;
    (2) terminates state or Metropolitan Council employment;
    (3) at the time of termination under clause (2), meets the age and service requirements
necessary to receive an unreduced retirement annuity from the plan and satisfies requirements
for the commencement of the retirement annuity or, for an employee under the unclassified
employees retirement plan, meets the age and service requirements necessary to receive an
unreduced retirement annuity from the plan and satisfies requirements for the commencement
of the retirement annuity or elects a lump-sum payment; and
    (4) agrees to accept a postretirement option position with the same or a different appointing
authority, working a reduced schedule that is both (i) a reduction of at least 25 percent from the
employee's number of regularly scheduled work hours; and (ii) 1,044 hours or less in state or
Metropolitan Council service.
    (b) For purposes of this section, an unreduced retirement annuity includes a retirement
annuity computed under a provision of law which permits retirement, without application of an
earlier retirement reduction factor, whenever age plus years of allowable service total at least 90.
    Subd. 3. Unclassified service. Notwithstanding any law to the contrary, state postretirement
option positions shall be in the unclassified service but shall not be covered by the Minnesota
State Retirement System unclassified employees plan.
    Subd. 4. Annuity reduction not applicable. Notwithstanding any law to the contrary, when
an eligible state employee in a postretirement option position under this section commences
receipt of the annuity, the provisions of section 352.115, subdivision 10, or 353.37 governing
annuities of reemployed annuitants, shall not apply for the duration of employment in the position.
    Subd. 5. Appointing authority discretion. The appointing authority has sole discretion to
determine if and the extent to which a postretirement option position under this section is available
to a state employee. Any offer of such a position must be made in writing to the employee by
the appointing authority on a form prescribed by the Department of Employee Relations and
the Minnesota State Retirement System or the Public Employees Retirement Association. The
appointing authority may not require a person to waive any rights under a collective bargaining
agreement or unrepresented employee compensation plan as a condition of participation.
    Subd. 6. Duration. Postretirement option employment shall be for an initial period not to
exceed one year. During that period, the appointing authority may not modify the conditions
specified in the written offer without the employee's agreement, except as required by law or by
the collective bargaining agreement or compensation plan applicable to the employee. At the end
of the initial period, the appointing authority has sole discretion to determine if the offer of a
postretirement option position will be renewed, renewed with modifications, or terminated.
Postretirement option employment may be renewed for periods of up to one year, not to exceed a
total duration of five years. No person shall be employed in one or a combination of postretirement
option positions under this section for a total of more than five years.
    Subd. 7. Copy to fund. The appointing authority shall provide the Minnesota State
Retirement System or the Public Employees Retirement Association with a copy of the offer, the
employee's acceptance of the terms, and any subsequent renewal agreement.
    Subd. 8. No service credit. Notwithstanding any law to the contrary, a person may not earn
service credit in the Minnesota State Retirement System or the Public Employees Retirement
Association for employment covered under this section, and employer contributions and payroll
deductions for the retirement fund must not be made based on earnings of a person working
under this section. No change shall be made to a monthly annuity or retirement allowance based
on employment under this section.
    Subd. 9. Insurance contribution. Notwithstanding any law to the contrary, the appointing
authority must make an employer insurance contribution for a person who is employed in a
postretirement option position under this section and who is not receiving any other state-paid
or Metropolitan Council-paid employer insurance contribution. The amount of the contribution
must be equal to the percent time worked in the postretirement option position (hours scheduled
to be worked annually divided by 2,088) times 1.5 times the full employer contribution for
employee-only health and dental coverage. The appointing authority must contribute that amount
to a health reimbursement arrangement.
    Subd. 10. Subsequent employment. If a person has been in a postretirement option position
and accepts any other position in state or Metropolitan Council-paid service, in the subsequent
state or Metropolitan Council-paid employment the person may not earn service credit in the
Minnesota State Retirement System or Public Employees Retirement Association, no employer
contributions or payroll deductions for the retirement fund shall be made, and the provisions of
section 352.115, subdivision 10, or section 353.37, shall apply.
History: 2005 c 156 art 3 s 2; 2007 c 134 art 11 s 4,5; 2007 c 148 art 2 s 45