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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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.
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