By Lucy Kender, Human Resources
Dave Ochs, MSRS representative, reviews individual retirement options with Jamie Kelly, Consultant Services. Employees interested in applying for the early retirement incentive are encouraged to consult with MSRS or other retirement professionals when making their decision to apply for and accept the incentive. Photo by Nick Carpenter
Eligible Mn/DOT employees can apply for a voluntary early retirement incentive starting today.
“We’re opening the application process today for the early retirement incentive,” said Eric Davis, Human Resources director. “We believe Mn/DOT has a little more than 1,200 employees eligible to retire under this provision, so we anticipate great interest.”
Applications for those who want to retire in calendar year 2010 are due Sept. 1—all other applications are due Nov. 15.
Retirement planning and eligibility
“I encourage employees interested in applying for the incentive to consult with their retirement system representative, financial planner, attorney, Human Resources Office, Social Security Office and any other retirement advisors before making their final decision,” Davis said.
Eligible employees must have at least 15 years of service and be eligible to retire, according to the new law.
Employees can find retirement-related information and contacts by visiting:
“Interested employees need to complete the application and submit it to their supervisor,” Davis said. “The employee’s supervisor, office director or district engineer must concur and then I’ll review the application and authorize an offer.”
Office directors or district engineers will present an early retirement incentive offer to eligible and interested applicants. The offer must be accepted no later than Dec. 31, 2010.
The incentive program, enacted by the 2010 Legislature, allows eligible retirees to receive an amount equal to the value of up to 24 months of employer-paid medical and dental insurance premiums, which will be paid into the employee’s pre-tax Health Care Savings Plan. The incentive will be paid in annual installments to take into account changes in premiums.
“It’s important to note that employees who retire under the incentive program will be ineligible for re-employment with the state or any consulting relationship with any state governmental agency that participates in the State Employee Group Insurance Plan for a period of three years,” Davis said.
Minnesota Management and Budget said the following about Mn/DOT’s application to offer the early retirement incentive:
“You have undertaken a thorough analysis of your future workforce needs and will use the incentive to achieve those needs. Additionally, you have demonstrated that you will reduce payroll costs.”
In a message to all Mn/DOT employees, Commissioner Tom Sorel said:
“Offering the incentive also presents Mn/DOT with a unique opportunity to streamline work processes, mitigate the risks of workforce turnover and ensure that the delivery of core services is sustainable. We will look to our strategic vision, strategic directions and flagship initiatives to guide us in this effort.”
Key early retirement incentive dates
Sept. 1, 2010—Deadline for all eligible and interested employees who want to retire in calendar year 2010 to submit an application
Nov. 15, 2010—Deadline for all other incentive applications from eligible and interested employees who will retire before the statutory deadline of June 30, 2011
Dec. 1, 2010—Date by which all formal written offers of an incentive should be extended to employees who are interested and eligible
Dec. 31, 2010 (state holiday)—Statutory deadline for employees to accept a written offer of an early retirement incentive
Feb. 1, 2011—Date Mn/DOT needs to report to Minnesota Management and Budget on early retirement incentive utilization
June 30, 2011—Last day an employee may separate from employment with an incentive