Layoffs DEED

DEED VRS ERI & Voluntary Layoff Information 

Early Retirement Incentive 

In most ways, retiring using a retirement incentive is no different than any other retirement, just an addition of an incentive. 

The incentive shall consist of One Thousand Dollars ($1,000) per complete year of State service, capped at a maximum of $30,000. The incentive shall be paid in a lump sum into the employee’s Health Care Savings Plan Account. 

Eligibility 

Eligibility requirements include an Employee must: 

  1. Be immediately eligible at the time of separation to receive an annuity under a State retirement program; and,  

  2. Be in a classified appointment; and, 

  3. Not be eligible for any other early retirement incentive; and,  

  4. Have at least five years of continuous State service at the time of separation; and, 

  5. Be employed in a position that is being permanently eliminated or reduced, OR if the Employer determines that offering an ERI would lead to a vacancy of at least one year within the VRS program; and,  

  6. Notify DEED Human Resources in writing of their desire/intent to participate in the ERI on, or before, March 21, 2025; and, 

  7. Retire on or before April 15, 2025, unless the Employer, at its sole discretion, extends this timeline, or permits an additional window of eligibility.  

  • Any clarifications to the eligibility criteria will be considered by the Employer on a case-by-case basis. 

  • Any employee who receives an ERI may not rejoin State Service in a Classified Appointment for a minimum of 12 months after separation. 

Retirement Timeline and Notification 

  • Employees who would like to accept the ERI offer and retire will need to notify Human Resources in writing of their intent via email no later than Friday, March 21, 2025. 

  • The minimum notice of retirement must be no less than two (2) weeks prior to your retirement date. 

  • The final day of work must be no later than Monday, April 14, 2025. 

  • The first day of retirement will be no later than Tuesday, April 15, 2025. 

Required Forms 

  • If you opt to receive the ERI, after HR receives your written notification, Shaunna Wood in Human Resources will email you the necessary paperwork to complete for your retirement insurance selections. 

  • Timely completion of the necessary forms is imperative to continue insurance without interruption. 

  • Most information regarding the State’s benefits upon retirement can be found on the SEGIP website. 

Voluntary Layoff / Out of Seniority Order Layoff 

  • Rights for employees who choose out of seniority order layoff are limited compared to seniority order layoffs (non-voluntary). Examples of limitations include but are not limited to, not being eligible to claim a vacancy or to bump someone less senior, etc. 

  • Specific rights for individuals will be included in their layoff letter confirming layoff. 

  • DEED is offering employees who are issued a layoff letter up to 80 hours paid leave for work transition purposes between the issuance of the layoff letter and the date of layoff. You may request this through your direct supervisor. 

  • Staff who wish to select out of seniority order layoff will need to email their request, Attn: Kristen Hiner, Human Resource Business Partner at employeelaborrelations.deed@state.mn.us with your interest no later than March 21, 2025. 

  • Layoff notices will be sent out on or about March 26, 2025. 

  • The last day of work for those who choose and are accepted as an out of seniority order layoff will be April 15, 2025. Layoff will be effective April 16, 2025. 

  • Classified employees that are laid off and have three (3) or more years of state service are eligible for insurance for six (6) months following the effective layoff date. This means the employer financial contribution towards insurance premiums would continue at current levels for those 6 months. 

  • Staff with less than three (3) years of state service can continue insurance under COBRA and will receive information regarding COBRA coverage at their home mailing address from SEGIP following layoff. 

  • Questions about insurance should be directed to Shaunna Wood, HR DDIR at shaunna.wood@state.mn.us, or 651-259-7656 or Marisa Haggy, HR Operations Supervisor at marisa.haggy@state.mn.us, or 651-259-7107. 

  • Questions regarding COBRA should be directed to SEGIP at segip.mmb@state.mn.us or 651-355-0100. 

Non-Voluntary Layoff 

If voluntary reduction options are not sufficient to meet cost-saving goals, non-voluntary layoffs will be the final step.  

  • Staff who are determined to be laid off will be notified March 31, 2025. You should also reach out to your local Business Agent as soon as you receive a layoff letter. 

  • Layoff notices will include individual options upon layoff, if any are available. HR staff will work with each individual on their options and the process. Some options upon layoff may be accepting a vacancy, bumping a less senior employee, etc. 

  • Classified employees that are laid off and have three (3) or more years of state service are eligible for insurance for six (6) months following the effective layoff date. This means the employer financial contribution towards insurance premiums would continue at current levels for those 6 months. 

  • Classified employees with less than three (3) years of state service can continue insurance under COBRA and will receive information regarding COBRA coverage at their home mailing address from SEGIP following layoff. 

  • Questions about insurance should be directed to Shaunna Wood, HR DDIR at shaunna.wood@state.mn.us, or 651-259-7656 or Marisa Haggy, HR Operations Supervisor at marisa.haggy@state.mn.us, or 651-259-7107. 

  • Questions regarding COBRA should be directed to SEGIP at segip.mmb@state.mn.us or 651-355-0100. 

  • DEED is offering employees who are issued a layoff letter up to 80 hours of paid leave for work transition purposes between the issuance of the layoff letter and the date of layoff. You may request this through your direct supervisor. 

VRS ERI & Layoff FAQ 

Q: Can a MAPE employee be bumped if the other person is more than 35 miles from their office? 

A: Yes, bumping can occur greater than 35 miles from the employees’ current work location, if that employee has greater seniority in the same, equal or previous class than the employee who currently occupies the position. 
 

Q: Does service have to be continuous when referring to seniority? Example, I was a Rehab Counselor Sr. in 2017-2018, I started back with the state again in June of 2024 as a Rehab Counselor Career... does that time get combined? 

A: No, all seniority is calculated from the most recent date of hire. If an employee leaves state service, but then comes back, their statewide and classification seniority resets. However, if the employee was separated from state service due to a previous layoff and whose name was on the layoff list would not have a break in seniority. 
 

Q: Can someone who is outside of the 35 miles can still bump a person if they have higher seniority?  

A: Yes, that is a possibility. 
 

Q: Can someone bump someone from another agency?  

A: No. Not from another agency. 
 

Q: What is Sr Lot #?  

A: Sr Lot # is used to determine the seniority order between people who have the same seniority date. 
 

Q: Does this layoff impact MAPE only or will Management-level positions be impacted as well? 

A: DEED determines which positions are eliminated. It could be within management positions as well. MN Statute 43A.046 states that, “if layoffs of state employees are necessary, each agency with more than 50 full-time equivalent employees must reduce at least the same percentage of management and supervisory personnel as line and support personnel.” 
 

Q: What happens to my sick leave if I am laid off?  

A: It is paid out and called severance.  40% of the first 900 hours and 12.5% of any hours accrued over that. In the case of a layoff vacation leave is paid out as cash to the employees, not into their Healthcare Savings Account (as is the case in other situations). 
 

Q: Why are managers saying the layoffs are not seniority based only? 

A: Management decides which positions are cut. Seniority determines the choices those employees have in the case of a layoff. 
 

Q: If you have the option to bump someone within 35 miles and you choose not to bump a co-worker, are you still eligible for Unemployment Benefits?  

A: It would be dealt with on a case-by-case basis. 
 

Q: Can a person only bump into a different classification if you previously held a job in that classification?  

A: If they previously held a job in that classification OR if the employer determines the employee is qualified. It's up to the discretion of the employer at that point. 
 

Q: What happens to my health insurance?  

A: Employees with over 3 years of state service will be eligible for 6 months of employer contribution towards health insurance premiums. Staff with less than three (3) years of state service can continue insurance under COBRA and will receive information regarding COBRA coverage at their home mailing address from SEGIP following layoff. 
 

Q: Can a person bump from a MAPE position into an AFSCME position they previously held?  

A: Yes, there can be cross bargaining unit bumping. 
 

Q: What is claiming?  

A: When a person is laid off, they can “claim” a job that is vacant in another agency. 
 

Q: Is it possible they could bring back the option of reduction in hours once they get the ERI/Voluntary layoff numbers?  

A: HR has not agreed to that. 
 

Q: What happens to people on probation? 

A: Depending on the nature of the probation (reallocation, promotion, etc.), if the probationary employee is in their first position with the state, they would be vulnerable to the layoff due to their low level of seniority accrual in the classification they occupy. If they were in a probationary period but had other, previous classification seniority accruals they may be eligible to take a vacancy, or bump other employees based on that previous classification seniority.