.................... moves to amend H.F. No. 4 as follows:
Delete everything after the enacting clause and insert:
"Section 1. [43A.347] REDUCTION IN STATE WORK FORCE; EARLY
1.5 Subdivision 1. Required reduction. (a) The number of full-time equivalent
1.6employees employed in the executive branch, and the costs directly associated with
1.7employing those persons, must be reduced by at least 15 percent by June 30, 2015, and
1.8thereafter, compared to the number of full-time equivalent positions and the costs directly
1.9associated with those positions on July 1, 2011.
1.10(b) An appointing authority may use any or all of the following to achieve this
1.11requirement: attrition, a hard hiring freeze, early retirement incentives authorized in this
1.12section, restructuring of benefit or pension programs as authorized by other law, furloughs,
1.13and layoffs. The early retirement program in this section is enacted as a tool to assist in
1.14complying with the required 15 percent reduction.
1.15(c) For purposes of this section:
1.16(1) "costs directly associated" with employing people means the cost of salaries and
1.17benefits, including the costs of employer contributions to public pension plans; and
1.18(2) "executive branch" does not include the Minnesota State Colleges and
1.20 Subd. 2. Analysis. Before authorizing an early retirement under subdivision 3 or
1.214, the commissioner must perform analysis, including actuarial analysis, as necessary to
1.22determine the maximum number of employees to whom incentives will be offered, and the
1.23percentage of resulting savings estimated to be needed to pay pension funds to cover costs
1.24to the funds of the incentive in this section. The commissioner must use this analysis in
1.25determining how to best implement this section.
1.26 Subd. 3. Pension early retirement incentive. (a) The commissioner of management
1.27and budget may authorize an executive branch appointing authority to offer an early
2.1retirement incentive under this subdivision to an employee who upon retirement would be
2.2immediately eligible to receive an annuity from the public pension plan under which the
2.3employee is covered immediately before separation from state service. The commissioner
2.4may establish time periods during which the incentive may be offered and during which
2.5the incentive must be accepted, may establish limits on the number of employees to whom
2.6an appointing authority, or all appointing authorities collectively, may offer the incentive,
2.7and may establish other conditions for the incentive.
2.8(b) For an employee offered an incentive under this subdivision, for each full
2.9year of service credit that the employee has in a plan administered by the Minnesota
2.10State Retirement System, the Public Employees Retirement Association, or the Teachers
2.11Retirement Association, the employee must be granted an additional month of service
2.12credit in the plan under which the employee is covered immediately before separation
2.13from state service under this subdivision.
2.14(c) Upon request of an appointing authority considering offering an incentive under
2.15this subdivision, the executive director of the public pension plan in which an employee
2.16would be granted additional service credit under this subdivision must prepare an estimate
2.17of the present value of the additional service credit that would be granted to an employee
2.18under this subdivision. For each employee accepting an incentive under this subdivision,
2.19the appointing authority offering the incentive must pay the applicable public pension
2.20plan, from the first dollars of savings achieved through offering the incentive, the present
2.21value of the additional service credit granted to the employee, taking into account the date
2.22payment will be received from the appointing authority. The appointing authority must
2.23make this payment to the pension plan within one year of the date the employee accepting
2.24the incentive leaves state service.
2.25 Subd. 4. Insurance early retirement incentive. The commissioner of management
2.26and budget may authorize an executive appointing authority to offer the incentive
2.27originally offered under Laws 2010, chapter 337, to employees who retire from state
2.28service during periods that the commissioner specifies before June 30, 2015. The terms and
2.29conditions specified in Laws 2010, chapter 337, apply to an incentive offered under this
2.30subdivision, except for the dates specified in that law for accepting the incentive and for
2.31retiring, and except that the prohibition on reemployment or contracting is for the period
2.32specified in this section, instead of the shorter period specified in Laws 2010, chapter 337.
2.33 Subd. 5. Best practices. In implementing this section, the commissioner of
2.34management and budget and affected agencies shall utilize best practices as identified by
2.35other states that have implemented early retirement programs.
3.1 Subd. 6. Hiring freeze. To promote streamlined government and reduced costs,
3.2no state appointing authority may fill by outside hire a position vacated through state
3.3employee participation in an early retirement incentive under this section.
3.4 Subd. 7. Reemployment prohibition. An employee who receives an early
3.5retirement incentive under this section, may not be reemployed with the state or enter into
3.6a contract with the state as a consultant for five years after termination.
3.7 Subd. 8. Savings. Savings resulting from implementation of this section, after
3.8any payments made under subdivisions 3 and 4, must cancel back to the fund in which
3.9the savings occurred.
3.10 Subd. 9. Not applicable to elected officials. A state elected official is not a state
3.11employee for purposes of this section.
Amend the title accordingly