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<br /> <br /> STAFF REPORT <br /> <br />TO: Mayor Fischer and Members of City Council <br /> <br />FROM: Heidi Heller, City Clerk/HR Manager <br /> <br />DATE: May 28, 2025 <br /> RE: Personnel Policy Addition – PERA Phased Retirement Option <br /> <br /> <br />ACTION TO BE CONSIDERED: <br />Approve the recommended addition to the Personnel Policy for Minnesota PERA’s Phased <br />Retirement Option participation. <br /> <br />BACKGROUND: <br />PERA (Public Employees Retirement Association) offers a Phased Retirement Option (PRO) <br />program for employees who are eligible to retire under PERA’s rules but would like to stay <br />working in their current role with reduced hours to no more than 20 hours per week. PERA <br />offered this program several years ago for a limited time and then brought it back a couple of <br />years ago, potentially permanently. <br /> <br />The city’s former Building Official is currently participating in the PRO program and working <br />16 hours per week to help onboard the newly hired Building Official. He anticipates working <br />part-time potentially through the end of 2025. An employee’s participation in the PRO program <br />must be mutually agreed upon between the employee and the city, and then approved by the City <br />Council, and is subject to budgetary allowance. <br /> <br />The Personnel Policy currently does not address this program so staff is recommending that a <br />new section be added to the Personnel Policy to address this program and the specific details. <br />The question of when to pay out accrued PTO and deferred sick hours was asked by the <br />employee and staff confirmed with PERA that they have no restrictions about when this type of <br />payout occurs with the PRO program. <br /> <br />Staff will continue to expand on the language in this new PRO section, but since the payout <br />timing is relevant right now, that is the first detail being addressed in the draft policy. Staff is <br />recommending that if the employee is no longer accruing PTO because they work less than the <br />required 20 hours per week needed to qualify for PTO, they would be paid out for accrued PTO <br />and/or Deferred Sick hours immediately. If the employee were to work 20 hours per week and <br />continue earning PTO, then the payout would not occur until the employee has completely <br />terminated their employment with the city. <br /> <br />RECOMMENDATION: <br />Staff recommends approval to add new Section 17, PERA Phased Retirement Option, to the <br />Little Canada Personnel Policy. <br /> <br /> <br />