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Public Employees Retirement Association 60 Empire Drive, Suite 200, St. Paul, MN 55103-2088 1-800-652-9026 | 651-296-7460 | Fax: 651-297-2547 | mnpera.org RETURN (MAIL OR FAX) COMPLETED FORM TO: The employer has sole discretion to determine the length of an employee’s PRO employment period. The maximum period of phased retirement employment for a member is five years. The PRO Agreement must be completed by the employer and employee and sent to PERA before the reduced PRO employment begins. If a PRO Agreement covering employment of less than five years is renewed, do not send the renewal document to PERA. Keep the document on file. To participate in the PRO program, the following requirements must be met: The employee must: • understand that if the allowed hours in a pay period or the maximum hours per year are exceeded, the PERA monthly benefit will be suspended the month of the violation. Any payments made between the date of the violation and suspension of the benefit must be returned to PERA by the employee. The benefit will not be reinstated until all public employment has been terminated, a continuous separation from public service has occurred, and any overpayments have been returned to PERA. • be an active member of General Plan as an employee, not an elected official • be age 62 or older • be immediately eligible for a retirement annuity from the General Plan • have worked at least 1,044 hours each of the five preceding years in a position covered by PERA that they intend to go PRO • have a reduced annual work schedule that is both a reduction of at least 25 percent from the employee’s number of previously regularly scheduled work hours and that may not exceed 1,044 hours in a one-year period. The employer and employee may agree on any scheduling arrangement that is less than the maximum hours allowed • not be eligible for the state employee Post-Retirement Option program under Minn.Stat. § 43A.346 • not work as an employee for another governmental employer in Minnesota • remain with your current employer in your current position • at the termination of the PRO agreement, have no written/verbal agreement prior to termination of employment to provide services to your agency as an employee, independent contractor or an employee of an independent contractor for 30 days. Public employment includes service to any governmental employer in Minnesota–e.g. school districts, cities, counties, townships, and state INFORMATION ABOUT THE PERA PHASED RETIREMENT OPTION (PRO) PROGRAM The PERA reporting responsibilities of the employer are: • I understand that our agency must report the earnings and number of compensated hours that the named employee has each pay period while the PRO employment continues. • The employee must remain with the same employer, in the same position held prior to starting the PRO. • Enroll the employee under PERA’s Exempt Plan at the start of the phased retirement employment period. • Report the phased retirement earnings of the employee and the associated number of compensated hours after each pay period using the Salary Deduction Report or an approved alternative method. • Do not pay employer contributions or employee deductions to PERA on the earnings of the PRO position. • Monitor the number of compensated hours that the employee has while working in a PRO position and ensure that the limit in law is not exceeded. Please work with PERA to fulfill this requirement. • When the member does fully retire, report the termination of service to PERA and take steps to ensure that the employee has a complete, continuous separation from all public employment for 30 days. Also, there can be no written/verbal agreement prior to termination of employment to provide services to your agency as an employee, independent contractor or an employee of an independent contractor for 30 days. Public employment includes service to any governmental employer in Minnesota–e.g. school districts, cities, counties, townships, and state. IMPORTANT: If the PRO employment does not meet the conditions in law (stated above) the employee will no longer qualify to receive retirement annuity payments unless the person has a termination of service and a 30 day break from all public employment. 5.17.21