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    Subdivision 1. Payment; limits. Except as may otherwise be provided in Laws 1959, chapter
690, as amended, a county, city, township, school district or other governmental subdivision
may pay severance pay to its employees and adopt rules for the payment of severance pay
to an employee who leaves employment. Severance pay does not include compensation for
accumulated sick leave or other payments in the form of periodic contributions by an employer
toward premiums for group insurance policies for a former employee. The severance pay must be
excluded from retirement deductions and from any calculations in retirement benefits. Severance
pay must be paid in a manner mutually agreeable to the employee and employer over a period
not to exceed five years from retirement or termination of employment. If a retired or terminated
employee dies before all or a portion of the severance pay has been disbursed, that balance
due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Severance
pay provided for an employee leaving employment may not exceed an amount equivalent to
one year of pay.
    Subd. 2.[Repealed, 1988 c 605 s 14]
History: 1973 c 123 art 5 s 7; 1973 c 298 s 1; 1979 c 334 art 6 s 24; 1980 c 614 s 151;
1Sp1981 c 4 art 2 s 37; 1986 c 455 s 91; 1988 c 605 s 10

Official Publication of the State of Minnesota
Revisor of Statutes