Bill Text: IA SF2178 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to reemployment rights of special service members receiving a disability retirement allowance under the Iowa public employees retirement system.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-02-12 - Subcommittee: Chapman, Giddens, and R. Smith. S.J. 289. [SF2178 Detail]

Download: Iowa-2019-SF2178-Introduced.html
Senate File 2178 - Introduced SENATE FILE 2178 BY GARRETT A BILL FOR An Act relating to reemployment rights of special service 1 members receiving a disability retirement allowance under 2 the Iowa public employees retirement system. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6264XS (2) 88 ec/rn
S.F. 2178 Section 1. Section 97B.50A, subsection 7, Code 2020, is 1 amended to read as follows: 2 7. Reemployment. 3 a. If a member receiving a disability retirement allowance 4 is returned to covered employment that is not special service 5 employment , the member’s disability retirement allowance shall 6 not cease, the member shall again become an active member, 7 and shall contribute thereafter at the same rate payable 8 by similarly classified members. If a member receiving a 9 disability retirement allowance returns to special service 10 employment, then the period of time the member received a 11 disability retirement allowance shall constitute eligible 12 service as defined in section 97B.49B, subsection 1 , or 13 section 97B.49C, subsection 1 , as applicable. Upon subsequent 14 retirement, the member’s retirement allowance shall be 15 calculated as provided in section 97B.48A . 16 b. (1) If a member receiving a disability retirement 17 allowance is engaged in a gainful occupation that is not 18 covered employment , the member’s disability retirement 19 allowance shall be reduced, if applicable, as provided in this 20 paragraph. For purposes of this paragraph, “gainful occupation” 21 means employment that is not covered employment or covered 22 employment that is not special service employment. 23 (2) If the member is engaged in a gainful occupation 24 paying more than the difference between the member’s net 25 disability retirement allowance and one and one-half times 26 the reemployment comparison amount for that member, then the 27 amount of the member’s disability retirement allowance shall 28 be reduced to an amount such that the member’s net disability 29 retirement allowance plus the amount earned by the member shall 30 equal one and one-half times the reemployment comparison amount 31 for that member. 32 (3) The member shall submit sufficient documentation to 33 the system to permit the system to determine the member’s net 34 disability retirement allowance and earnings from a gainful 35 -1- LSB 6264XS (2) 88 ec/rn 1/ 2
S.F. 2178 occupation that is not covered employment for the applicable 1 year. 2 (4) This paragraph does not apply to a member who is 3 at least fifty-five years of age and would have completed 4 a sufficient number of years of service if the member had 5 remained in active special service employment. For purposes 6 of this subparagraph, a sufficient number of years of service 7 shall be the applicable years of service for a special service 8 member as described in section 97B.49B or twenty-two for a 9 special service member as described in section 97B.49C . 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill concerns reemployment rights of a special service 14 member under the Iowa public employees’ retirement system 15 (IPERS) receiving a disability retirement allowance. 16 Under current law, if a special service member receiving 17 a disability retirement allowance under IPERS is returned to 18 any covered employment under IPERS, the member’s disability 19 retirement allowance shall cease. The bill provides that 20 if the member returns to covered employment that is not 21 special service employment, the member’s disability retirement 22 allowance shall not cease. Current provisions reducing a 23 member’s disability retirement allowance based on earnings 24 of the member in a gainful occupation are made applicable to 25 a return to covered employment that is not special service 26 employment under IPERS. 27 -2- LSB 6264XS (2) 88 ec/rn 2/ 2
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