1.1 	A bill for an act
1.2 	relating to retirement; modifying early retirement initiative;amending Minnesota 
1.3 	Statutes 2008, section 356.351, subdivisions 1, 2.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2008, section 356.351, subdivision 1, is amended to read:
1.6 		Subdivision 1.Eligibility. (a) An eligible appointing authority may offer the early 
1.7 	retirement incentive in this section to an employee who: 
1.8 	(1) has at least 15 years of allowable service in one or more of the funds listed 
1.9 	in section 356.30, subdivision 3, or has at least 15 years of coverage by the individual 
1.10 	retirement account plan governed by chapter 354B and upon retirement is immediately 
1.11 	eligible for a retirement annuity or benefit from one or more of these funds; 
1.12 	(2) terminates service after the effective date of this section, and before July 15, 
1.13 	2009 October 1, 2010; and
1.14 	(3) is not in receipt of a public retirement plan retirement annuity, retirement 
1.15 	allowance, or service pension during the month preceding the termination of qualified 
1.16 	employment.
1.17 	(b) An eligible appointing authority is any Minnesota governmental employing unit 
1.18 	which employs one or more employees with retirement coverage by a retirement plan 
1.19 	listed in section 356.30 by virtue of that employment.
1.20 	(c) An elected official is not eligible to receive an incentive under this section.

1.21 	Sec. 2. Minnesota Statutes 2008, section 356.351, subdivision 2, is amended to read:
1.22 		Subd. 2.Incentive. (a) For an employee eligible under subdivision 1, if approved 
1.23 	under paragraph (b), the employer may provide an amount up to $17,000 the cost of 
2.1 	purchasing an additional six months of health insurance plus the amount that would be 
2.2 	received for 72 weeks of unemployment compensation, to an employee who terminates 
2.3 	service, to be used: 
2.4 	(1) unless the appointing authority has designated the use under clause (2) or the use 
2.5 	under clause (3) for the initial retirement incentive applicable to that employing entity 
2.6 	under Laws 2007, chapter 134, after May 26, 2007, for deposit in the employee's account 
2.7 	in the health care savings plan established by section 352.98; 
2.8 	(2) notwithstanding section 352.01, subdivision 11, or 354.05, subdivision 13, 
2.9 	whichever applies, if the appointing authority has designated the use under this clause 
2.10 	for the initial retirement incentive applicable to that employing entity under Laws 2007, 
2.11 	chapter 134, after May 26, 2007, for purchase of service credit for unperformed service 
2.12 	sufficient to enable the employee to retire under section 352.116, subdivision 1, paragraph 
2.13 	(b); 353.30; 354.44, subdivision 6, paragraph (b), or 354A.31, subdivision 6, paragraph 
2.14 	(b), whichever applies; or 
2.15 	(3) if the appointing authority has designated the use under this clause for the initial 
2.16 	retirement incentive applicable to the employing entity under Laws 2007, chapter 134, 
2.17 	after May 26, 2007, for purchase of a lifetime annuity or an annuity for a specific number 
2.18 	of years from the applicable retirement plan to provide additional benefits, as provided in 
2.19 	paragraph (d). 
2.20 	(b) Approval to provide the incentive must be obtained from the commissioner 
2.21 	of finance if the eligible employee is a state employee and must be obtained from the 
2.22 	applicable governing board with respect to any other employing entity. An employee is 
2.23 	eligible for the payment under paragraph (a), clause (2), if the employee uses money from 
2.24 	a deferred compensation account that, combined with the payment under paragraph (a), 
2.25 	clause (2), would be sufficient to purchase enough service credit to qualify for retirement 
2.26 	under section 352.116, subdivision 1, paragraph (b); 353.30, subdivision 1a; 354.44, 
2.27 	subdivision 6, paragraph (b), or 354A.31, subdivision 6, paragraph (b), whichever applies. 
2.28 	(c) The cost to purchase service credit under paragraph (a), clause (2), must be 
2.29 	made in accordance with section 356.551.
2.30 	(d) The annuity purchase under paragraph (a), clause (3), must be made using 
2.31 	annuity factors derived from the applicable factors used by the applicable retirement plan 
2.32 	to transfer amounts to the Minnesota postretirement investment fund and to calculate 
2.33 	optional annuity forms. The purchased annuity must be the actuarial equivalent of the 
2.34 	incentive amount.

2.35 	Sec. 3. EFFECTIVE DATE.
 3.1 	Sections 1 and 2 are effective the day following final enactment.