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Phased Retirement Option - Public Employees Retirement Association o... http://www.mnpera.org/index.asp?Type=B_BASIC&SEC={83D786D0-... <br />Phased Retirement Agreement Form (For Employers) <br />Employer Responsibilities <br />Frequently Asked Questions (FAQs) <br />1. Q: Do I contact PERA in order to enter a Phased Retirement Option (PRO) Agreement? <br />A: No. The PRO Agreement is between you and your employer, so the offer of a PRO must <br />come from your employer — your employer has sole authority to determine whether PRO <br />Agreements are going to be offered and to whom PRO Agreements are offered. <br />2. Q: Can I agree to enter a PRO Agreement before I terminate my PERA membership? <br />A: Yes. While retirement requires a separation without an agreement to return, entering a PRO <br />Agreement naturally occurs prior to any termination of PERA membership — you are not <br />required to terminate employment in order to be eligible to enter a PRO Agreement. <br />3. Q: Can I enter a PRO Agreement after I terminate my PERA-covered employment? <br />A: No. You may not enter a PRO Agreement after you retire, regardless of whether you retired <br />one week, one month, or one year ago. These agreements are not intended to apply to <br />individuals who retired from public employment and now want to return to the PERA-covered <br />workforce. The PRO Agreements are intended to allow a transition into retirement for <br />someone approaching full retirement while providing employers with a workforce planning <br />tool that can, for example, help transfer knowledge from the long-time employee to a new <br />person. <br />4. Q: Do I have to be eligible for the Rule of 90 to be eligible for a PRO Agreement? <br />A: No. To be eligible for a PRO Agreement, you must be offered a PRO Agreement by your <br />employer, you must meet all other retirement benefit eligibility requirements, be at least age <br />62, you must have worked at least half-time in a PERA-covered position for a minimum of five <br />years immediately prior to entering a PRO Agreement, and not be eligible for the State <br />Employee Postretirement Option program. <br />5. Q: If I am eligible for the Rule of 90 but not yet age 62, am I eligible for a PRO Agreement? <br />A: No. You must be at least age 62 to be eligible for a PRO Agreement regardless of whether <br />you are eligible for the Rule of 90. PERA allows early full retirement for persons who qualify <br />for the Rule of 90 (when age plus years of service equal 90), even if they meet the Rule of <br />90 before age 62. The Internal Revenue Service has regulations in place that direct when a <br />person can collect a retirement benefit while continuing to work in the same job for which the <br />person earned that benefit. The regulations state that a person can only collect the <br />retirement benefit while continuing to work in the same job if he or she is at least age 62. <br />6. Q: Can I enter a PRO Agreement to take a position covered by MSRS or TRA? <br />A: No. PERA members who are eligible for a PRO and offered a PRO by their employer only <br />terminate PERA membership for purposes of entering a PRO Agreement — the PRO position <br />must be one that would otherwise be covered by PERA. <br />2 of 6 5/17/17, 4:23 PM <br />