H.F. 2633 Summary

• Eliminates the June 30, 2024 expiration date for the Public Employees Retirement Association phased retirement option program by repealing the sunset clause in subdivision 8.

• Changes phased retirement agreement duration from an initial one-year term renewable annually with a four-renewal limit to a single term not exceeding five years total, removing annual renewal requirements.

• Replaces terminology throughout from "postretirement option position" to "phased retirement agreement" and changes references from "appointing authority" to "governmental subdivision" for clarification.

• Requires governmental subdivisions to report employee salary and compensated hours worked in phased retirement positions to the executive director within 14 calendar days following each pay period.

• Maintains that employees in phased retirement positions cannot earn service credit, receive employer contributions, or have annuity amounts modified based on this employment, and must meet separation requirements if subsequently accepting other public service employment.