Bill Text: IA SF185 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act establishing a state employee retirement incentive program and including effective date provisions.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced) 2017-02-08 - Subcommittee: Schneider, Chapman, and Jochum. S.J. 243. [SF185 Detail]

Download: Iowa-2017-SF185-Introduced.html

Senate File 185 - Introduced




                                 SENATE FILE       
                                 BY  MATHIS, RAGAN, HOGG,
                                     QUIRMBACH, BOULTON,
                                     BISIGNANO, TAYLOR,
                                     DVORSKY, DOTZLER, and
                                     JOCHUM

                                      A BILL FOR

  1 An Act establishing a state employee retirement incentive
  2    program and including effective date provisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  2017 STATE EMPLOYEE RETIREMENT INCENTIVE
  1  2 PROGRAM.
  1  3    1.  Definitions.  As used in this section, unless the context
  1  4 provides otherwise:
  1  5    a.  "Eligible employee" means an employee or qualified
  1  6 employee who has filed a completed application for benefits
  1  7 with the Iowa public employees' retirement system created in
  1  8 chapter 97B in which the employee's or qualified employee's
  1  9 intended first month of entitlement, as defined in section
  1 10 97B.1A, is no later than the month following the date
  1 11 eligible employees shall be required to agree to separate
  1 12 from employment with the state as provided in subsection 2,
  1 13 paragraph "e".
  1 14    b.  "Eligible enrollment date" means the date, established
  1 15 by the department that is at least forty=five days, but no
  1 16 later than sixty days, after the effective date of this Act and
  1 17 that is not a weekend or holiday.
  1 18    c.  "Employee" means an employee, as defined in section
  1 19 97B.1A, who is employed within the executive branch of this
  1 20 state. However, "employee" does not mean a qualified employee,
  1 21 an elected official, or an employee eligible for the sick leave
  1 22 conversion program as described in section 70A.23, subsection
  1 23 4.
  1 24    d.  "Employer" means a department, agency, board, or
  1 25 commission of the state that employs individuals.
  1 26    e.  "Health insurance contribution benefit" means the amount
  1 27 representing the monthly contribution cost of an affordable
  1 28 group health care plan offered by the state, as determined by
  1 29 the department of administrative services, providing coverage
  1 30 to the participant and, if applicable, the participant's spouse
  1 31 for the applicable period of coverage.
  1 32    f.  "Participant" means a person who timely submits an
  1 33 election to participate, is accepted to participate, and does
  1 34 participate, in the state employee retirement incentive program
  1 35 established under this section.
  2  1    g.  "Program" means the state employee retirement incentive
  2  2 program established under this section.
  2  3    h.  "Qualified employee" means an employee of a judicial
  2  4 district department of correctional services, an employee in
  2  5 the office of a statewide elected official, or an employee of
  2  6 the state board of regents if the board elects to participate
  2  7 in the program.
  2  8    i.  "Years of service incentive benefit" means an amount
  2  9 equal to, for eligible employees with at least ten years of
  2 10 state employment service, one thousand dollars for each year of
  2 11 state employment service up to a maximum of twenty=five years
  2 12 of state employment service.  For purposes of this paragraph,
  2 13 "state employment service" means service, as defined in section
  2 14 97B.1A, for which the employer is the state.
  2 15    2.  Program eligibility.  To become a participant in the
  2 16 program, an eligible employee shall do all of the following:
  2 17    a.  Submit by the eligible enrollment date, a written
  2 18 application, on forms prescribed by the department of
  2 19 administrative services, seeking participation in the program.
  2 20    b.  Acknowledge in writing the eligible employee's
  2 21 agreement to voluntarily terminate employment in exchange
  2 22 for participation in the state employee retirement incentive
  2 23 program as provided in this section.
  2 24    c.  Agree to waive all rights to file suit against the state
  2 25 of Iowa, including all of its departments, agencies, and other
  2 26 subdivisions, based on state or federal claims arising out of
  2 27 the employment relationship.
  2 28    d.  Acknowledge, in writing, that participation in the
  2 29 program waives any right to accept any employment with the
  2 30 state other than as an elected official on or after the date
  2 31 the eligible employee separates from employment.
  2 32    e.  Agree to separate from employment with the state no
  2 33 later than thirty days after the eligible enrollment date as
  2 34 established in this subsection.
  2 35    3.  Participant acceptance.  An eligible employee shall be
  3  1 accepted into the program if the department of administrative
  3  2 services determines that the eligible employee meets the
  3  3 requirements to be eligible to participate in the program.
  3  4    4.  Program benefits.  Upon acceptance to participate in the
  3  5 program and separation from employment with the state no later
  3  6 than the date as determined in subsection 2, paragraph "e", a
  3  7 participant shall receive the following benefits:
  3  8    a.  During November 2017, and each November thereafter for a
  3  9 total of five years, the state shall pay to the participant,
  3 10 or the participant's beneficiary, an amount equal to twenty
  3 11 percent of the years of service incentive benefit for that
  3 12 participant.
  3 13    b.  For the period of time commencing with the first month
  3 14 in which a participant is ineligible for or exhausts the
  3 15 participant's available remaining value of sick leave used
  3 16 to pay the state share for the participant's continuation of
  3 17 state group health insurance coverage as provided in section
  3 18 70A.23, subsection 3, and ending five years from the date
  3 19 the participant separates from employment with the state as
  3 20 provided in this section, the participant, or the participant's
  3 21 surviving spouse, shall be entitled to receive a health
  3 22 insurance contribution benefit to be used by the participant
  3 23 or the participant's beneficiary to pay the cost for eligible
  3 24 state group health insurance.  The department of administrative
  3 25 services shall determine what health insurance plans constitute
  3 26 eligible state group health insurance for purposes of this
  3 27 paragraph "b".
  3 28    5.  Reemployment.
  3 29    a.  An employer shall not offer permanent part=time
  3 30 employment, permanent full=time employment, temporary
  3 31 employment, or retention as an independent contractor to a
  3 32 participant.
  3 33    b.  This section shall not preclude a participant from
  3 34 membership on a board or commission.
  3 35    6.  Program administration and reporting.
  4  1    a.  The department of administrative services shall
  4  2 administer the program and shall adopt administrative rules
  4  3 to administer the program.  The department of administrative
  4  4 services and the department of management may adopt rules on an
  4  5 emergency basis under section 17A.4, subsection 3, and section
  4  6 17A.5, subsection 2, paragraph "b", to implement this section
  4  7 and the rules shall be effective immediately upon filing unless
  4  8 a later date is specified in the rules.
  4  9    b.  Records of the Iowa public employees' retirement system
  4 10 shall be released for the purposes of administering and
  4 11 monitoring the program subject to the requirements of section
  4 12 97B.17, subsection 5.
  4 13    c.  The department of administrative services, in
  4 14 collaboration with the department of management, shall present
  4 15 an interim report to the general assembly, including copies to
  4 16 the legislative services agency and the fiscal committee of
  4 17 the legislative council, by December 1, 2017, concerning the
  4 18 operation of the program.  The department shall also submit
  4 19 an annual update concerning the program by October 1 of each
  4 20 year for four years, commencing December 1, 2018.  The reports
  4 21 shall include information concerning the number of program
  4 22 participants, the cost of the program including any payments
  4 23 made to participants, the number of state employment positions
  4 24 not filled pursuant to the program, and the number of positions
  4 25 vacated by a program participant that have been refilled with a
  4 26 comparison of the salary of the program participant at the time
  4 27 the position was vacated to the beginning salary of the person
  4 28 who refilled the position.
  4 29    7.  Legislative and judicial branch employees.
  4 30    a.  The legislative council may provide a retirement
  4 31 incentive program for employees of the legislative branch
  4 32 consistent with the program provided in this section for
  4 33 executive branch employees.  If the legislative council
  4 34 provides an incentive program, the legislative council shall
  4 35 collaborate with the department of administrative services to
  5  1 establish the program as required under this section as nearly
  5  2 as identical as possible to the program provided executive
  5  3 branch employees under this section.  The program provided
  5  4 pursuant to this paragraph "a" shall establish similar time
  5  5 guidelines and the same benefit calculations as provided under
  5  6 the program for executive branch employees.
  5  7    b.  The supreme court may provide a retirement incentive
  5  8 program for employees of the judicial branch consistent with
  5  9 the program provided in this section for executive branch
  5 10 employees.  If the supreme court provides an incentive program,
  5 11 the supreme court shall collaborate with the department of
  5 12 administrative services to establish the program as required
  5 13 under this section as nearly as identical as possible to
  5 14 the program provided executive branch employees under this
  5 15 section.  The program provided pursuant to this paragraph "b"
  5 16 shall establish similar time guidelines and the same benefit
  5 17 calculations as provided under the program for executive branch
  5 18 employees.
  5 19    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  5 20 immediate importance, takes effect upon enactment.
  5 21                           EXPLANATION
  5 22 The inclusion of this explanation does not constitute agreement with
  5 23 the explanation's substance by the members of the general assembly.
  5 24    This bill establishes a state employee retirement incentive
  5 25 program for eligible employees of the executive branch of the
  5 26 state, including employees in the offices of statewide elective
  5 27 officials, employees of a judicial district department of
  5 28 correctional services, and if the board of regents approves,
  5 29 employees of the state board of regents and its institutions.
  5 30 The bill permits, but does not require, either the legislative
  5 31 branch or the judicial branch to establish an early retirement
  5 32 program consistent with the program provided to executive
  5 33 branch employees in the bill.  An elected official, or an
  5 34 employee eligible for an enhanced sick leave conversion program
  5 35 under Code section 70A.23(4) are excluded from participating
  6  1 in the program.  The program shall be administered by the
  6  2 department of administrative services (DAS).  The bill permits
  6  3 eligible executive branch employees who have completed an
  6  4 application for benefits under the Iowa public employees'
  6  5 retirement system (IPERS) with an intended first month
  6  6 of entitlement of no later than the month following the
  6  7 date eligible employees shall be required to separate from
  6  8 employment, to separate from service with the state and receive
  6  9 a benefit under the program.   To receive the incentive benefit,
  6 10 an eligible employee must submit an application to participate
  6 11 in the program by the eligible enrollment date, be accepted to
  6 12 participate in the program by the departments of administrative
  6 13 services and management, separate from state employment within
  6 14 30 days of the eligible enrollment date, and acknowledge the
  6 15 employee's ineligibility to return to employment with the
  6 16 state. The bill defines eligible enrollment date as the date
  6 17 established by DAS, no earlier than 45 days but no later than
  6 18 60 days after the effective date of the bill.
  6 19    The bill provides that the benefit provided to an eligible
  6 20 employee who participates in the program is an amount equal to
  6 21 the entire value of the eligible employee's accumulated but
  6 22 unused vacation plus, if the employee has at least 10 years
  6 23 of state employment, $1,000 for each year of state employment
  6 24 up to 25 years.  The bill provides that this amount shall be
  6 25 payable in five equal installments each year during November
  6 26 beginning in November 2017.  In addition, the bill provides
  6 27 that a participant in the program, or the participant's
  6 28 surviving spouse, shall receive a health insurance premium
  6 29 benefit to pay the premium cost for eligible state group
  6 30 health insurance for five years following the participant's
  6 31 termination from state employment.  However, the bill provides
  6 32 that a participant shall receive the health insurance premium
  6 33 benefit only when the participant is no longer eligible for,
  6 34 or exhausts, the participant's available remaining value of
  6 35 sick leave used to pay the state share for the participant's
  7  1 continuation of state group health insurance coverage as
  7  2 provided in Code section 70A.23, subsection 3.
  7  3    The bill further provides that a state employer shall not
  7  4 hire a participant in the program for any employment.
  7  5    The bill takes effect upon enactment.
       LSB 1951XS (8) 87
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