§ 5 §17159 — Early retirement incentive costs

When an employee retires prior to normal retirement age and receives from the employer any significant monetary or nonmonetary payment or award in connection with the employee's retirement, the employer must, prior to the effective date of the employee's retirement, demonstrate that the payment or award is not a retirement incentive or pay the additional actuarial and reasonable administrative costs of the employee's early retirement.
1.
Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
2.
Criteria for identifying an early retirement incentive.
A payment or award in connection with retirement is an incentive for early retirement for which the employer offering the incentive is responsible for the additional costs pursuant to section 17154, subsection 10 if all the criteria established in this subsection are met:
3.
Employer provides information.
If a member retires prior to normal retirement age and receives a significant monetary or nonmonetary payment or award in connection with the retirement, prior to the effective date of the member's retirement or, if a payment or award that was not known or anticipated prior to retirement is given after retirement, within 7 business days of the date upon which the payment or award is given, the employer must provide the following information to the retirement system:
4.
Early Retirement Incentives Review Panel.
5.
Panel determinations.
6.
Panel decision.
7.
Reconsideration; final decision.
8.
Employer payment for costs resulting from early retirement incentives.
Employer payment for costs resulting from early retirement incentives are governed by this section pursuant to section 17154, subsection 10.

Legislative History

PL 1995, c. 541, §3 (NEW). PL 1997, c. 651, §4 (AMD). PL 1999, c. 668, §§55,56 (AMD). PL 1999, c. 731, §CC2 (AMD). PL 2007, c. 249, §19 (AMD). PL 2021, c. 548, §45 (REV).