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Minnesota State University, Mankato
Minnesota State University, Mankato

Post Retirement Employment Option

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Post-Retirement Option Agreement & Agency Instructions

  1. Each appointing authority must decide whether to offer the post-retirement option. Appointing authorities have sole discretion to determine if the post-retirement option will be made available in their agencies.

  2. The Cabinet has decided we will offer this program on a case by case basis. Each request will be considered by the Cabinet independently. The President and Vice Presidents will submit proposals to the Cabinet for consideration.

  3. The Cabinet will determine if the particular request complies with the purpose of the legislation “to expand alternatives for addressing skill development, knowledge transfer, mentoring, transition and labor shortages” as a result of changing demographics in our work force. See the memo from Commissioner Cal Ludeman attached hereto.

  4. The Cabinet will determine if adequate funding is available to support to the position.

  5. Eligibility will be determined based on the criteria established by Minnesota Management & Budget (MMB), which include:
    • The employee occupied a covered civil service position (classified or unclassified). MSU positions are covered civil service positions.
    • The employee will terminate state employment prior to appointment to the post-retirement position.
    • An employee with multiple state jobs must separate from all of them.
    • For at least five years immediately preceding the termination date, the employee has been regularly scheduled to work at least 1,044 hours per year in a position covered by an MSRS or PERA pension plan.
    • At the time of the termination of employment, the employee will meet the requirements for an unreduced retirement annuity.
    • The employer cannot require the employee to waive any rights under a labor agreement/plan as a condition of participation.
  6. Post retirement employment cannot last for any longer than five years.

  7. The agreement to employ someone post-retirement requires the creation of a new position with a new position number. The position description will have to be classified and salary determined in accordance with ordinary procedures and applicable labor agreements/plans.

  8. All post retirement positions will be in the unclassified service. They are not subject to the bidding, posting and layoff requirements of labor agreements.

  9. The work schedule must be both a reduction of at least 25% from the number of regularly scheduled hours immediately preceding retirement and 1,044 hours (1/2 time) or less in any 12 month period. Specific work schedules will be negotiated between the employee and the agency.

  10. Participants may qualify for one of two insurance benefits:
    • a contribution to the Health Care Savings Plan administered by MSRS or
    • a contribution for participating in the State Employee Group Insurance Program (SEGIP).
    • For more information on insurance issues contact your Benefits Specialist at 389-1065.
  11. Salary, vacation, sick leave, holidays, and leaves of absence will be determined by the provisions of the applicable labor agreement/plan. Employees may qualify for FMLA if they meet the same eligibility and qualification requirements as other state employees. Worker’s compensation benefits are the same as for other employees.

  12. The employee earns no state retirement service credit for post-retirement employment. Neither the employee nor the agency makes contributions to state retirement. Wages are subject to Social Security and Medicare withholding and employees continue to earn credit towards Social Security.

  13. If the position is assigned to a represented bargaining unit, the employee is subject to dues or fair share deductions.

  14. While in the post retirement position, the employee’s MSRS or PERA annuity is not subject to reduction. The employee is responsible for knowing the amount of the unreduced annuity and contacting the appropriate retirement system if payments appear to be incorrect.

  15. The agreement to enter into post retirement employment must be reduced in writing on a form provided by MMB. See attached.