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a <br /> 1993 Early Retirement Incentive Program <br /> Questions and Answers <br /> Q What is the early retirement incentive program? <br /> A The program is a law passed by the Minnesota Legislature that permits your employer at <br /> it's discretion to offer two options to employees. These options are: <br /> IA Option 1. An increase in the pension formula of 1/4 ercent <br /> P (25 /o) for each year of service up <br /> 9 ,,,,eirr to the first 30 years (the maximum formula increase is 7.5 percent). There is no cost to either <br /> the employer or employee for this option. <br /> I Option 2. Employer -paid health insurance for employees who are between ages 55 and 65 <br /> o SC` with certain service requirements. <br /> The early retirement incentive program is NOT a Rule of 80, which would provide an <br /> unreduced pension to individuals whose age and years of service sum to 80. <br /> Q What are the eligibility requirements for the early retirement incentive program? <br /> A To be eligible for the early retirement incentive program, you must, at minimum: <br /> be a contributing member of PERA 's Basic or Coordinated pension plan, <br /> terminate public employment on or after May 17, 1993, but before January 31, 1994, and <br /> be immediately eligible to draw a PERA pension upon termination. <br /> In addition, you must: <br /> be age 55 or older with at least 25 years of service in one or more qualified Minnesota <br /> public pension plans, Or <br /> be age 65 and have at least one year of service credit in one or more qualified <br /> Minneso a public pension plans. <br /> Q Does my employer have to offer both options under the early retirement incentive program? <br /> A No. In fact, your employer is not obligated to offer the program at all. However, if your <br /> employer does offer the program, it may offer either the improved pension formula or the <br /> employer -paid health insurance, or both options. <br /> Q If my employer offers both the improved pension formula and the health insurance, may I <br /> choose to receive both options? <br /> A No. You may elect only one option. However, you may choose the improved pension <br /> option, if it is offered by your employer, and accept employer -paid health insurance if such <br /> insurance would have been available to you before passage of the early retirement legislation. <br /> n <br /> 1, <br />