Bill Text: MN HF871 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Employer contributions limited toward cost of employee health care benefits, and employer contributions prohibited toward cost of health care benefits for certain former employees other than for law enforcement and firefighter retirees or employees.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-03 - Introduction and first reading, referred to Government Operations and Elections [HF871 Detail]
Download: Minnesota-2011-HF871-Introduced.html
1.2relating to local government; limiting employer contributions toward cost of
1.3employee health care benefits; prohibiting employer contributions toward cost of
1.4health care benefits for certain former employees, other than for law enforcement
1.5and firefighter retirees or employees; amending Minnesota Statutes 2010,
1.6sections 179A.03, subdivision 19; 179A.20, subdivision 2a; 471.61, subdivisions
1.71, 2a, 2b; 471.611.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 179A.03, subdivision 19, is amended to
1.10read:
1.11 Subd. 19. Terms and conditions of employment. "Terms and conditions of
1.12employment" means the hours of employment, the compensation therefor including
1.13fringe benefits except retirement contributions or benefits other than employer payment
1.14of, or contributions to, premiums for group insurance coverage of retired employees or
1.15severance pay, and the employer's personnel policies affecting the working conditions of
1.16the employees. In the case of professional employees the term does not mean educational
1.17policies of a school district. With respect to employees of governmental units to which
1.18section 471.61, subdivision 1, applies, "terms and conditions of employment" does not
1.19include employer contributions to premiums for or costs of health care insurance or
1.20health care benefits for retirees or other former employees, other than law enforcement
1.21and firefighter retirees or other former employees, required under collective bargaining
1.22agreements, contracts, or personnel policies that become effective on or after January 1,
1.232012. "Terms and conditions of employment" is subject to section179A.07 .
1.24 Sec. 2. Minnesota Statutes 2010, section 179A.20, subdivision 2a, is amended to read:
2.1 Subd. 2a. Former employee benefits. (a) A contract may not obligate an employer
2.2to fund all or part of the cost of health insurance or health care benefits for a former
2.3employee beyond the duration of the contract, subject to section179A.20, subdivision 6 . A
2.4personnel policy may not obligate an employer to fund all or part of health care benefits for
2.5a former employee beyond the duration of the policy. A policy may not extend beyond the
2.6termination of the contract of longest duration covering other employees of the employer
2.7or, if none, the termination of the budgetary cycle during which the policy is adopted.
2.8(b) With respect to public employers to which section 471.61, subdivision 1, applies,
2.9in addition to the prohibition under paragraph (a), a collective bargaining agreement,
2.10contract, or personnel policy that becomes effective on or after January 1, 2012, must not
2.11obligate the employer to fund all or part of a former employee's health insurance or health
2.12care benefits within the duration of the contract after the employee, other than a former
2.13law enforcement or firefighter employee, becomes a former employee.
2.14 Sec. 3. Minnesota Statutes 2010, section 471.61, subdivision 1, is amended to read:
2.15 Subdivision 1. Officers, employees. A county, municipal corporation, town, school
2.16district, county extension committee, other political subdivision or other body corporate
2.17and politic of this state, other than the state or any department of the state, through its
2.18governing body, and any two or more subdivisions acting jointly through their governing
2.19bodies, may insure or protect its or their officers and employees, and their dependents, or
2.20any class or classes of officers, employees, or dependents, under a policy or policies or
2.21contract or contracts of group insurance or benefits covering life, health, and accident, in
2.22the case of employees, and medical and surgical benefits and hospitalization insurance or
2.23benefits for both employees and dependents or dependents of an employee whose death
2.24was due to causes arising out of and in the course of employment, or any one or more of
2.25those forms of insurance or protection. A governmental unit, including county extension
2.26committees and those paying their employees, may pay all or any part of the premiums
2.27or charges on the insurance or protection; but under collective bargaining agreements,
2.28contracts, or personnel policies that become effective on or after January 1, 2012, the
2.29governmental unit may pay no more than 90 percent of the cost of employee-only
2.30coverage and no more than 75 percent of the cost of family coverage or employee-plus
2.31dependent coverage. A payment is deemed to be additional compensation paid to the
2.32officers or employees, but for purposes of determining contributions or benefits under a
2.33public pension or retirement system it is not deemed to be additional compensation. One
2.34or more governmental units may determine that a person is an officer or employee if
2.35the person receives income from the governmental subdivisions without regard to the
3.1manner of election or appointment, including but not limited to employees of county
3.2historical societies that receive funding from the county and employees of the Minnesota
3.3Inter-county Association. The appropriate officer of the governmental unit, or those
3.4disbursing county extension funds, shall deduct from the salary or wages of each officer
3.5and employee who elects to become insured or so protected, on the officer's or employee's
3.6written order, all or part of the officer's or employee's share of premiums or charges and
3.7remit the share or portion to the insurer or company issuing the policy or contract.
3.8A governmental unit, other than a school district, that pays all or part of the premiums
3.9or charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy
3.10for the purpose of providing the necessary money for the payment of the premiums or
3.11charges, and the sums levied and appropriated are not, in the event the sum exceeds the
3.12maximum sum allowed by the charter of a municipal corporation, considered part of
3.13the cost of government of the governmental unit as defined in any levy or expenditure
3.14limitation; provided at least 50 percent of the cost of benefits on dependents must be
3.15contributed by the employee or be paid by levies within existing charter tax limitations.
3.16The word "dependents" as used in this subdivision means spouse and minor
3.17unmarried children under the age of 18 years actually dependent upon the employee.
3.18Notwithstanding any other law to the contrary, a political subdivision described
3.19in this subdivision may provide health benefits to its employees, dependents, any class
3.20or classes of officers, employers, or dependents, and other eligible persons through
3.21negotiated contributions, that comply with this section, to self-funded multiemployer
3.22health and welfare funds.
3.23A political subdivision must not contribute toward the cost of health insurance or
3.24health care benefits for retirees and other former employees or their dependents, except
3.25as required under a collective bargaining agreement, contract, or personnel policy that
3.26becomes effective before January 1, 2012, or except if an earlier date applies under section
3.27179A.20, subdivision 2a. This paragraph does not apply to law enforcement or firefighter
3.28retirees, former employees, or their dependents.
3.29 Sec. 4. Minnesota Statutes 2010, section 471.61, subdivision 2a, is amended to read:
3.30 Subd. 2a. Retired officers, employees. Any county, municipal corporation,
3.31town, school district, county extension committee, other political subdivision or other
3.32body corporate and politic of this state, including the state or any department thereof,
3.33through its governing body, and any two or more subdivisions acting jointly through their
3.34governing bodies, may insure or protect its or their retired officers and retired employees
3.35entitled to benefits under any public employees retirement act and their dependents, or
4.1any class or classes thereof, under a policy or policies, or contract or contracts of group
4.2insurance or benefits covering life, health, and accident, medical and surgical benefits,
4.3or hospitalization insurance or benefits, for retired officers and retired employees and
4.4their dependents, or any one or more of such forms of insurance or protection. Any such
4.5governmental unit, including county extension committees, may pay all or any part of the
4.6premiums or charges on such insurance or protection or may require the retired officer
4.7or employee to pay all or part of the premiums or charges. Any one or more of such
4.8governmental units may determine that a person is a retired officer or a retired employee
4.9if such officer or employee, when employed, received income from such governmental
4.10subdivisions without regard to the manner of election or appointment. The appropriate
4.11officer of such governmental unit, or those disbursing county extension funds, shall collect
4.12from each such retired officer and retired employee who elects to become insured or so
4.13protected, on such officer's or employee's written order, all or part of the retired officer's or
4.14retired employee's share of such premiums or charges and remit the same to the insurer or
4.15company issuing such policy or contract. An insurer, health maintenance organization, or
4.16company issuing the policy or contract may not require a public employer to contribute
4.17any portion of the retired officer's or employee's share as a condition of eligibility for the
4.18insurance or protection. An insurer, health maintenance organization, or company issuing
4.19the policy or contract may require a retired officer or a retired employee to pay all or any
4.20part of the premiums or charges.
4.21Any governmental unit, other than a school district, which pays all or any part of
4.22such premiums or charges is authorized to levy and collect a tax, if necessary, in the next
4.23annual tax levy for the purpose of providing the necessary funds for the payment of such
4.24premiums or charges, and such sums so levied and appropriated shall not, in the event
4.25such sum exceeds the maximum sum allowed by the charter of a municipal corporation,
4.26be considered part of the cost of government of such governmental unit as defined in
4.27any tax or expenditure limitation; provided at least 50 percent of the cost of benefits on
4.28dependents shall be contributed by the retired officer or retired employee or be paid by
4.29levies within existing charter tax limitations.
4.30The word "dependents" as used herein shall mean spouse and minor unmarried
4.31children under the age of 18 years actually dependent upon the retired officer or retired
4.32employee.
4.33With respect to health, accident, medical, and surgical benefits provided by political
4.34subdivisions of the state, this subdivision applies only to the extent of commitments
4.35made under collective bargaining agreements, contracts, and personnel policies that
4.36became effective before January 1, 2012, or to the extent required under federal law or
5.1expressly required by other state law. This paragraph does not apply to law enforcement
5.2or firefighter employees.
5.3 Sec. 5. Minnesota Statutes 2010, section 471.61, subdivision 2b, is amended to read:
5.4 Subd. 2b. Insurance continuation. A unit of local government must allow a former
5.5employee and the employee's dependents to continue to participate indefinitely in the
5.6employer-sponsored hospital, medical, and dental insurance group that the employee
5.7participated in immediately before retirement, under the following conditions:
5.8(a) The continuation requirement of this subdivision applies only to a former
5.9employee who is receiving a disability benefit or an annuity from a Minnesota public
5.10pension plan other than a volunteer firefighter plan, or who has met age and service
5.11requirements necessary to receive an annuity from such a plan.
5.12(b) Until the former employee reaches age 65, the former employee and dependents
5.13must be pooled in the same group as active employees for purposes of establishing
5.14premiums and coverage for hospital, medical, and dental insurance. However, a former
5.15employee under the age of 65 who is enrolled in Medicare Parts A and B due to the former
5.16employee's disability and for whom Medicare's obligation to pay claims is primary, and
5.17the former employee's dependents, must be pooled in the same group for purposes of this
5.18paragraph as former employees who have reached age 65.
5.19(c) A former employee may receive dependent coverage only if the employee
5.20received dependent coverage immediately before leaving employment. This subdivision
5.21does not require dependent coverage to continue after the death of the former employee.
5.22For purposes of this subdivision, "dependent" has the same meaning for former employees
5.23as it does for active employees in the unit of local government.
5.24(d) Coverage for a former employee and dependents may not discriminate on the
5.25basis of evidence of insurability or preexisting conditions unless identical conditions are
5.26imposed on active employees in the group that the employee left.
5.27(e) The former employee must pay the entire premium for continuation coverage,
5.28except as otherwise provided in a collective bargaining agreement, contract, or personnel
5.29policy that became effective before January 1, 2012, or except as applied to former
5.30law enforcement or firefighter employees. A unit of local government may discontinue
5.31coverage if a former employee fails to pay the premium within the deadline provided for
5.32payment of premiums under federal law governing insurance continuation.
5.33(f) An employer must notify an employee before termination of employment of the
5.34options available under this subdivision, and of the deadline for electing to continue
5.35to participate.
6.1(g) A former employee must notify the employer of intent to participate within
6.2the deadline provided for notice of insurance continuation under federal law. A former
6.3employee who does not elect to continue participation does not have a right to reenter
6.4the employer's group insurance program.
6.5(h) A former employee who initially selects dependent coverage may later drop
6.6dependent coverage while retaining individual coverage. A former employee may not
6.7drop individual coverage and retain dependent coverage.
6.8(i) This subdivision does not limit rights granted to former employees under other
6.9state or federal law, or under collective bargaining agreements, contracts, or personnel
6.10plans that became effective before January 1, 2012.
6.11(j) Unless otherwise provided by a collective bargaining agreement, if retired
6.12employees were not permitted to remain in the active employee group prior to August
6.131, 1992, a public employer may assess active employees through payroll deduction for
6.14all or part of the additional premium costs from the inclusion of retired employees in the
6.15active employee group. This paragraph does not apply to employees covered by section
6.16179A.03, subdivision 7
.
6.17(k) Notwithstanding Section
179A.20, subdivision 2a , insurance continuation under
6.18this subdivision may be provided for in a collective bargaining agreement or personnel
6.19policy applies to this section.
6.20 Sec. 6. Minnesota Statutes 2010, section 471.611, is amended to read:
6.21471.611 RETIREES' HEALTH INSURANCE BENEFITS.
6.22 Subdivision 1. Accounting. A unit of local government that agrees to make
6.23payments for health insurance benefits for retired employees shall identify the amount
6.24required to pay the cost of those benefits during the period in which the contract or
6.25personnel policy providing for those benefits is in effect and shall record the amount as an
6.26expenditure, according to generally accepted accounting principles, in the fiscal year or
6.27years during which the payments are to be made. A school district is in compliance with
6.28this subdivision if it complies with section123B.77, subdivision 6 . Provision of these
6.29benefits under a personnel policy must be approved, as a separate action, by the governing
6.30body of the employing governmental unit. As provided in section 471.61, subdivision 1,
6.31payments described in this section are not permitted unless required under a collective
6.32bargaining agreement, contract, or personnel policy that becomes effective before January
6.331, 2012, or unless the payments apply only to firefighter or law enforcement retirees.
7.1 Subd. 2. Coordination. A unit of local government that funds all or part of the cost
7.2of health care benefits for a retired employee must provide for coverage to be coordinated
7.3with applicable benefits provided through the federally sponsored Medicare program.
7.4 Sec. 7. EFFECTIVE DATE.
7.5Sections 1 to 6 are effective for bargaining agreements, contracts, or personnel
7.6policies that become effective on or after January 1, 2012. If a contract in effect on that
7.7date, which became effective prior to that date, is contrary to a provision of one or more
7.8sections of this act, that provision does not apply until the terms of the contract are no
7.9longer in effect, but a political subdivision may not enter into a new contract or extend an
7.10existing contract in a manner that conflicts with this act.
1.3employee health care benefits; prohibiting employer contributions toward cost of
1.4health care benefits for certain former employees, other than for law enforcement
1.5and firefighter retirees or employees; amending Minnesota Statutes 2010,
1.6sections 179A.03, subdivision 19; 179A.20, subdivision 2a; 471.61, subdivisions
1.71, 2a, 2b; 471.611.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 179A.03, subdivision 19, is amended to
1.10read:
1.11 Subd. 19. Terms and conditions of employment. "Terms and conditions of
1.12employment" means the hours of employment, the compensation therefor including
1.13fringe benefits except retirement contributions or benefits other than employer payment
1.14of, or contributions to, premiums for group insurance coverage of retired employees or
1.15severance pay, and the employer's personnel policies affecting the working conditions of
1.16the employees. In the case of professional employees the term does not mean educational
1.17policies of a school district. With respect to employees of governmental units to which
1.18section 471.61, subdivision 1, applies, "terms and conditions of employment" does not
1.19include employer contributions to premiums for or costs of health care insurance or
1.20health care benefits for retirees or other former employees, other than law enforcement
1.21and firefighter retirees or other former employees, required under collective bargaining
1.22agreements, contracts, or personnel policies that become effective on or after January 1,
1.232012. "Terms and conditions of employment" is subject to section
1.24 Sec. 2. Minnesota Statutes 2010, section 179A.20, subdivision 2a, is amended to read:
2.1 Subd. 2a. Former employee benefits. (a) A contract may not obligate an employer
2.2to fund all or part of the cost of health insurance or health care benefits for a former
2.3employee beyond the duration of the contract, subject to section
2.4personnel policy may not obligate an employer to fund all or part of health care benefits for
2.5a former employee beyond the duration of the policy. A policy may not extend beyond the
2.6termination of the contract of longest duration covering other employees of the employer
2.7or, if none, the termination of the budgetary cycle during which the policy is adopted.
2.8(b) With respect to public employers to which section 471.61, subdivision 1, applies,
2.9in addition to the prohibition under paragraph (a), a collective bargaining agreement,
2.10contract, or personnel policy that becomes effective on or after January 1, 2012, must not
2.11obligate the employer to fund all or part of a former employee's health insurance or health
2.12care benefits within the duration of the contract after the employee, other than a former
2.13law enforcement or firefighter employee, becomes a former employee.
2.14 Sec. 3. Minnesota Statutes 2010, section 471.61, subdivision 1, is amended to read:
2.15 Subdivision 1. Officers, employees. A county, municipal corporation, town, school
2.16district, county extension committee, other political subdivision or other body corporate
2.17and politic of this state, other than the state or any department of the state, through its
2.18governing body, and any two or more subdivisions acting jointly through their governing
2.19bodies, may insure or protect its or their officers and employees, and their dependents, or
2.20any class or classes of officers, employees, or dependents, under a policy or policies or
2.21contract or contracts of group insurance or benefits covering life, health, and accident, in
2.22the case of employees, and medical and surgical benefits and hospitalization insurance or
2.23benefits for both employees and dependents or dependents of an employee whose death
2.24was due to causes arising out of and in the course of employment, or any one or more of
2.25those forms of insurance or protection. A governmental unit, including county extension
2.26committees and those paying their employees, may pay all or any part of the premiums
2.27or charges on the insurance or protection; but under collective bargaining agreements,
2.28contracts, or personnel policies that become effective on or after January 1, 2012, the
2.29governmental unit may pay no more than 90 percent of the cost of employee-only
2.30coverage and no more than 75 percent of the cost of family coverage or employee-plus
2.31dependent coverage. A payment is deemed to be additional compensation paid to the
2.32officers or employees, but for purposes of determining contributions or benefits under a
2.33public pension or retirement system it is not deemed to be additional compensation. One
2.34or more governmental units may determine that a person is an officer or employee if
2.35the person receives income from the governmental subdivisions without regard to the
3.1manner of election or appointment, including but not limited to employees of county
3.2historical societies that receive funding from the county and employees of the Minnesota
3.3Inter-county Association. The appropriate officer of the governmental unit, or those
3.4disbursing county extension funds, shall deduct from the salary or wages of each officer
3.5and employee who elects to become insured or so protected, on the officer's or employee's
3.6written order, all or part of the officer's or employee's share of premiums or charges and
3.7remit the share or portion to the insurer or company issuing the policy or contract.
3.8A governmental unit, other than a school district, that pays all or part of the premiums
3.9or charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy
3.10for the purpose of providing the necessary money for the payment of the premiums or
3.11charges, and the sums levied and appropriated are not, in the event the sum exceeds the
3.12maximum sum allowed by the charter of a municipal corporation, considered part of
3.13the cost of government of the governmental unit as defined in any levy or expenditure
3.14limitation; provided at least 50 percent of the cost of benefits on dependents must be
3.15contributed by the employee or be paid by levies within existing charter tax limitations.
3.16The word "dependents" as used in this subdivision means spouse and minor
3.17unmarried children under the age of 18 years actually dependent upon the employee.
3.18Notwithstanding any other law to the contrary, a political subdivision described
3.19in this subdivision may provide health benefits to its employees, dependents, any class
3.20or classes of officers, employers, or dependents, and other eligible persons through
3.21negotiated contributions, that comply with this section, to self-funded multiemployer
3.22health and welfare funds.
3.23A political subdivision must not contribute toward the cost of health insurance or
3.24health care benefits for retirees and other former employees or their dependents, except
3.25as required under a collective bargaining agreement, contract, or personnel policy that
3.26becomes effective before January 1, 2012, or except if an earlier date applies under section
3.27179A.20, subdivision 2a. This paragraph does not apply to law enforcement or firefighter
3.28retirees, former employees, or their dependents.
3.29 Sec. 4. Minnesota Statutes 2010, section 471.61, subdivision 2a, is amended to read:
3.30 Subd. 2a. Retired officers, employees. Any county, municipal corporation,
3.31town, school district, county extension committee, other political subdivision or other
3.32body corporate and politic of this state, including the state or any department thereof,
3.33through its governing body, and any two or more subdivisions acting jointly through their
3.34governing bodies, may insure or protect its or their retired officers and retired employees
3.35entitled to benefits under any public employees retirement act and their dependents, or
4.1any class or classes thereof, under a policy or policies, or contract or contracts of group
4.2insurance or benefits covering life, health, and accident, medical and surgical benefits,
4.3or hospitalization insurance or benefits, for retired officers and retired employees and
4.4their dependents, or any one or more of such forms of insurance or protection. Any such
4.5governmental unit, including county extension committees, may pay all or any part of the
4.6premiums or charges on such insurance or protection or may require the retired officer
4.7or employee to pay all or part of the premiums or charges. Any one or more of such
4.8governmental units may determine that a person is a retired officer or a retired employee
4.9if such officer or employee, when employed, received income from such governmental
4.10subdivisions without regard to the manner of election or appointment. The appropriate
4.11officer of such governmental unit, or those disbursing county extension funds, shall collect
4.12from each such retired officer and retired employee who elects to become insured or so
4.13protected, on such officer's or employee's written order, all or part of the retired officer's or
4.14retired employee's share of such premiums or charges and remit the same to the insurer or
4.15company issuing such policy or contract. An insurer, health maintenance organization, or
4.16company issuing the policy or contract may not require a public employer to contribute
4.17any portion of the retired officer's or employee's share as a condition of eligibility for the
4.18insurance or protection. An insurer, health maintenance organization, or company issuing
4.19the policy or contract may require a retired officer or a retired employee to pay all or any
4.20part of the premiums or charges.
4.21Any governmental unit, other than a school district, which pays all or any part of
4.22such premiums or charges is authorized to levy and collect a tax, if necessary, in the next
4.23annual tax levy for the purpose of providing the necessary funds for the payment of such
4.24premiums or charges, and such sums so levied and appropriated shall not, in the event
4.25such sum exceeds the maximum sum allowed by the charter of a municipal corporation,
4.26be considered part of the cost of government of such governmental unit as defined in
4.27any tax or expenditure limitation; provided at least 50 percent of the cost of benefits on
4.28dependents shall be contributed by the retired officer or retired employee or be paid by
4.29levies within existing charter tax limitations.
4.30The word "dependents" as used herein shall mean spouse and minor unmarried
4.31children under the age of 18 years actually dependent upon the retired officer or retired
4.32employee.
4.33With respect to health, accident, medical, and surgical benefits provided by political
4.34subdivisions of the state, this subdivision applies only to the extent of commitments
4.35made under collective bargaining agreements, contracts, and personnel policies that
4.36became effective before January 1, 2012, or to the extent required under federal law or
5.1expressly required by other state law. This paragraph does not apply to law enforcement
5.2or firefighter employees.
5.3 Sec. 5. Minnesota Statutes 2010, section 471.61, subdivision 2b, is amended to read:
5.4 Subd. 2b. Insurance continuation. A unit of local government must allow a former
5.5employee and the employee's dependents to continue to participate indefinitely in the
5.6employer-sponsored hospital, medical, and dental insurance group that the employee
5.7participated in immediately before retirement, under the following conditions:
5.8(a) The continuation requirement of this subdivision applies only to a former
5.9employee who is receiving a disability benefit or an annuity from a Minnesota public
5.10pension plan other than a volunteer firefighter plan, or who has met age and service
5.11requirements necessary to receive an annuity from such a plan.
5.12(b) Until the former employee reaches age 65, the former employee and dependents
5.13must be pooled in the same group as active employees for purposes of establishing
5.14premiums and coverage for hospital, medical, and dental insurance. However, a former
5.15employee under the age of 65 who is enrolled in Medicare Parts A and B due to the former
5.16employee's disability and for whom Medicare's obligation to pay claims is primary, and
5.17the former employee's dependents, must be pooled in the same group for purposes of this
5.18paragraph as former employees who have reached age 65.
5.19(c) A former employee may receive dependent coverage only if the employee
5.20received dependent coverage immediately before leaving employment. This subdivision
5.21does not require dependent coverage to continue after the death of the former employee.
5.22For purposes of this subdivision, "dependent" has the same meaning for former employees
5.23as it does for active employees in the unit of local government.
5.24(d) Coverage for a former employee and dependents may not discriminate on the
5.25basis of evidence of insurability or preexisting conditions unless identical conditions are
5.26imposed on active employees in the group that the employee left.
5.27(e) The former employee must pay the entire premium for continuation coverage,
5.28except as otherwise provided in a collective bargaining agreement, contract, or personnel
5.29policy that became effective before January 1, 2012, or except as applied to former
5.30law enforcement or firefighter employees. A unit of local government may discontinue
5.31coverage if a former employee fails to pay the premium within the deadline provided for
5.32payment of premiums under federal law governing insurance continuation.
5.33(f) An employer must notify an employee before termination of employment of the
5.34options available under this subdivision, and of the deadline for electing to continue
5.35to participate.
6.1(g) A former employee must notify the employer of intent to participate within
6.2the deadline provided for notice of insurance continuation under federal law. A former
6.3employee who does not elect to continue participation does not have a right to reenter
6.4the employer's group insurance program.
6.5(h) A former employee who initially selects dependent coverage may later drop
6.6dependent coverage while retaining individual coverage. A former employee may not
6.7drop individual coverage and retain dependent coverage.
6.8(i) This subdivision does not limit rights granted to former employees under other
6.9state or federal law, or under collective bargaining agreements, contracts, or personnel
6.10plans that became effective before January 1, 2012.
6.11(j) Unless otherwise provided by a collective bargaining agreement, if retired
6.12employees were not permitted to remain in the active employee group prior to August
6.131, 1992, a public employer may assess active employees through payroll deduction for
6.14all or part of the additional premium costs from the inclusion of retired employees in the
6.15active employee group. This paragraph does not apply to employees covered by section
6.17
6.18
6.19
6.20 Sec. 6. Minnesota Statutes 2010, section 471.611, is amended to read:
6.21471.611 RETIREES' HEALTH INSURANCE BENEFITS.
6.22 Subdivision 1. Accounting. A unit of local government that agrees to make
6.23payments for health insurance benefits for retired employees shall identify the amount
6.24required to pay the cost of those benefits during the period in which the contract or
6.25personnel policy providing for those benefits is in effect and shall record the amount as an
6.26expenditure, according to generally accepted accounting principles, in the fiscal year or
6.27years during which the payments are to be made. A school district is in compliance with
6.28this subdivision if it complies with section
6.29benefits under a personnel policy must be approved, as a separate action, by the governing
6.30body of the employing governmental unit. As provided in section 471.61, subdivision 1,
6.31payments described in this section are not permitted unless required under a collective
6.32bargaining agreement, contract, or personnel policy that becomes effective before January
6.331, 2012, or unless the payments apply only to firefighter or law enforcement retirees.
7.1 Subd. 2. Coordination. A unit of local government that funds all or part of the cost
7.2of health care benefits for a retired employee must provide for coverage to be coordinated
7.3with applicable benefits provided through the federally sponsored Medicare program.
7.4 Sec. 7. EFFECTIVE DATE.
7.5Sections 1 to 6 are effective for bargaining agreements, contracts, or personnel
7.6policies that become effective on or after January 1, 2012. If a contract in effect on that
7.7date, which became effective prior to that date, is contrary to a provision of one or more
7.8sections of this act, that provision does not apply until the terms of the contract are no
7.9longer in effect, but a political subdivision may not enter into a new contract or extend an
7.10existing contract in a manner that conflicts with this act.
