Phased retirement

Know the options available to start slowly into retirement while still working for the City of Minneapolis.

Learn more about phased retirement

Eligible members of the PERA Coordinated Plan may be able to ease into retirement. Under PERA's phased retirement option, eligible employees can begin to receive a PERA pension without separating from service. In return, an employee who elects the new phased retirement option must agree to reduce hours worked and to retire at the end of the phased retirement period.

The decision to offer the new phased retirement option is up to each employer that participates in PERA. The City Council passed a resolution authorizing the City of Minneapolis to offer the phased retirement option.

Note: The phased retirement option is not available to members of the PERA Police and Fire Plan.

Eligibility requirements

To qualify for phased retirement, an employee must:

  • Be at least 62 years of age
  • Be employed at least half time for the past five years at the City or another PERA-covered employer
  • Agree to reduce work hours to part-time
  • Agree to work no more than 1,044 hours per year (half-time or less)

Benefits of phased retirement

An employee who participates in the phased retirement option receives a PERA pension without formally resigning and taking a 30-day break in service. Phased retirement participants are exempt from the PERA earnings limit that applies prior to full Social Security retirement age.

Neither the employee nor the city makes any further contributions to PERA. As a result, the employee stops earning PERA service credits. There will be no further adjustments to the high-five average salary.

More information on phased retirement

  • The city has the right to decide whether or not a phased retirement agreement is offered.
  • The initial phased retirement agreement is limited to one year.
  • The city may decide to renew the agreement for periods of up to one year for a total duration of five years.
  • This option applies only to members of the PERA Basic and Coordinated Plans.
  • A reduction in hours will affect other employee benefits.
  • Employees interested in phased retirement should contact their Human Resources business partner for details. 

Find more information on the PERA website

Interested in phased retirement?

If you are interested in the phased retirement option, talk to your supervisor and Human Resources business partner. 

Phased retirement request form  

Phased retirement benefits memo  

Phased retirement benefits memo (represented by AFSCME Attorney, MnPEA, and MPEA only)


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Benefits Administration

Human Resources






City Hall
350 S. Fifth St., Room 1
Minneapolis, MN 55415