The Minnesota House and Senate have passed, and the Governor has signed an early retirement incentive for State employees. This incentive would provide employees with up to two years of the employer paid portion/contribution of the health and dental insurance premiums (single or family coverage in effect at the time of the employee’s retirement) to be placed in an employee’s health savings account (HSA). To be eligible the employee must accept the retirement incentive by December 31, 2010 and retire by June 30, 2011 .
Employees would need 15 years of service with the State of Minnesota and be immediately eligible for a retirement annuity. The use of this incentive and the number of months of insurance put into the HSA will be at the sole discretion of the employee’s appointing authority.
This retirement incentive is a positive alternative to the language in Article 10 of the Omibus Pension Bill and Representative Mary Murphy agreed to pull Article 10 from that bill once it was assured the Governor would sign this bill.
MMA will update this website when it obtains further information on the implementation and individual agency use of this incentive.
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