Bill Text: IA SSB1132 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act relating to benefits concerning members of the municipal fire and police retirement system.(See SF 505.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2023-03-02 - Committee report approving bill, renumbered as SF 505. [SSB1132 Detail]

Download: Iowa-2023-SSB1132-Introduced.html
Senate Study Bill 1132 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON SCHULTZ) A BILL FOR An Act relating to benefits concerning members of the municipal 1 fire and police retirement system. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1947XC (3) 90 ec/rn
S.F. _____ Section 1. Section 411.1, subsection 14, Code 2023, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 14. “Member in good standing” means any member in service 4 who has not been terminated by the employing city of the 5 member pursuant to section 400.18 or 400.19. Termination 6 procedures initiated by the chief of police or chief of the 7 fire department pursuant to section 400.19 shall not become 8 final or adversely impact a member’s status as a member in 9 good standing until all appeals provided by an applicable 10 collective bargaining agreement or by law have been exhausted. 11 Disciplinary action other than discharge shall not adversely 12 affect a member’s status as a member in good standing. 13 Sec. 2. Section 411.1, Code 2023, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 15A. “Ordinary disability beneficiary” 16 means a member retired on an ordinary disability retirement 17 benefit pursuant to section 411.6, subsection 3, for five years 18 or less. 19 Sec. 3. Section 411.6, subsection 5, paragraphs a and b, 20 Code 2023, are amended to read as follows: 21 a. Upon application to the system, of a member in good 22 standing , of an ordinary disability beneficiary, or of the 23 chief of the police or fire departments, respectively, any 24 member in good standing or ordinary disability beneficiary 25 who has become totally and permanently incapacitated for duty 26 as the natural and proximate result of an injury or disease 27 incurred in or aggravated by the actual performance of duty 28 at some definite time and place or arising out of and in the 29 course of the employment , or while acting pursuant to order, 30 outside of the city by which the member is regularly employed, 31 shall be retired by the system if the medical board certifies 32 that the member or ordinary disability beneficiary is mentally 33 or physically incapacitated for further performance of duty, 34 that the incapacity is likely to be permanent, and that the 35 -1- LSB 1947XC (3) 90 ec/rn 1/ 9
S.F. _____ member or ordinary disability beneficiary should be retired. 1 However, if a person’s membership in the system first commenced 2 on or after July 1, 1992, the member or ordinary disability 3 beneficiary shall not be eligible for benefits with respect to 4 a disability which would not exist, but for a medical condition 5 that was known to exist on the date that membership commenced. 6 A medical condition shall be deemed to have been known to exist 7 on the date that membership commenced if the medical condition 8 is reflected in any record or document completed or obtained 9 in accordance with the system’s medical protocols pursuant to 10 section 400.8 , or in any other record or document obtained 11 pursuant to an application for disability benefits from the 12 system, if such record or document existed prior to the date 13 membership commenced. A member who is denied a benefit under 14 this subsection , by reason of a finding by the medical board 15 that the member is not mentally or physically incapacitated 16 for the further performance of duty, shall be entitled to 17 be restored to active service in the same position held 18 immediately prior to the application for disability benefits. 19 b. If a member in service or the chief of the police or 20 fire departments becomes incapacitated for duty as a natural 21 or proximate result of an injury or disease incurred in or 22 aggravated by the actual performance of duty at some definite 23 time or place or arising out of or in the course of the 24 employment, or while acting, pursuant to order, outside the 25 city by which the member is regularly employed, the member, 26 upon being found to be temporarily incapacitated following a 27 medical examination as directed by the city, is entitled to 28 receive the member’s full pay and allowances from the city’s 29 general fund or trust and agency fund until reexamined as 30 directed by the city and found to be fully recovered or until 31 the city determines that the member is likely to be permanently 32 disabled. If the temporary incapacity of a member continues 33 more than sixty days, or if the city expects the incapacity 34 to continue more than sixty days, the city shall notify the 35 -2- LSB 1947XC (3) 90 ec/rn 2/ 9
S.F. _____ system of the temporary incapacity. Upon notification by a 1 city, the system may refer the matter to the medical board for 2 review and consultation with the member’s treating physician 3 during the temporary incapacity. Except as provided by this 4 paragraph, the board of trustees of the statewide system has no 5 jurisdiction over these matters until the city determines that 6 the disability is likely to be permanent. 7 Sec. 4. Section 411.6, subsection 5, Code 2023, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0d. Disease under this subsection shall 10 also mean any incapacitating mental disorder arising out of 11 and in the course of the employment, or while acting, pursuant 12 to order, outside the city by which the member is regularly 13 employed. A disease shall qualify as an incapacitating mental 14 disorder irrespective of the absence of similar effects on 15 other members. 16 Sec. 5. Section 411.6, subsection 6, Code 2023, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . d. (1) Upon a determination on or after 19 July 1, 2023, that an ordinary disability beneficiary is 20 entitled to a retirement for accidental disability, the 21 beneficiary shall receive an accidental disability retirement 22 allowance which shall consist of a pension in an amount that is 23 equal to the greater of sixty percent of the member’s average 24 final compensation or the retirement allowance that the member 25 would receive under subsection 2 if the member had attained 26 fifty-five years of age, or an amount equal to the ordinary 27 disability retirement allowance previously received by the 28 beneficiary, whichever is greater. 29 (2) An accidental disability allowance under this paragraph 30 shall commence effective the first day of the first month 31 following the determination that the ordinary disability 32 beneficiary is entitled to a retirement for accidental 33 disability. 34 Sec. 6. Section 411.6, subsection 9, paragraph a, 35 -3- LSB 1947XC (3) 90 ec/rn 3/ 9
S.F. _____ subparagraph (1), Code 2023, is amended to read as follows: 1 (1) If, upon the receipt of evidence and proof from the 2 chief of the police or fire department that the death of a 3 member in service was the natural and proximate result of an 4 injury or disease incurred in or aggravated by the actual 5 performance of duty at some definite time and place or arising 6 out of and in the course of the employment , or while acting 7 pursuant to order, outside of the city by which the member is 8 regularly employed, the system decides that death was so caused 9 in the performance of duty, there shall be paid, in lieu of the 10 ordinary death benefit provided in subsection 8 , an accidental 11 death benefit as set forth in this subsection . 12 Sec. 7. Section 411.6, subsection 16, Code 2023, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . d. A person otherwise eligible to receive an 15 ordinary or accidental disability retirement benefit under this 16 chapter shall not be eligible to receive such a benefit if the 17 person is subsequently determined to be ineligible pursuant to 18 section 400.18 or 400.19, or other comparable process. Upon 19 determination of ineligibility pursuant to this paragraph, 20 the person’s entitlement to a disability benefit under this 21 chapter shall terminate and any disability retirement allowance 22 received by such a person must be returned to the system 23 together with interest earned on the disability retirement 24 allowance calculated at a rate determined by the system. 25 However, the determination of ineligibility as provided under 26 this paragraph may be waived for good cause as determined by 27 the board. The burden of establishing good cause is on the 28 person who received the disability retirement allowance. 29 Sec. 8. Section 411.8, subsection 1, paragraph f, 30 subparagraph (8), Code 2023, is amended to read as follows: 31 (8) Beginning July 1, 1996, and each fiscal year thereafter, 32 an amount equal to the member’s contribution rate times each 33 member’s compensation shall be paid to the fund from the 34 earnable compensation of the member. For the purposes of this 35 -4- LSB 1947XC (3) 90 ec/rn 4/ 9
S.F. _____ subparagraph, the member’s contribution rate shall be nine and 1 thirty-five hundredths percent or, beginning July 1, until June 2 30, 2009, nine and four-tenths percent until June 30, 2023, 3 and, beginning July 1, 2023, nine and fifty-five hundredths 4 percent . However, the system shall increase the member’s 5 contribution rate as necessary to cover any increase in cost 6 to the system resulting from statutory changes which are 7 enacted by any session of the general assembly meeting after 8 January 1, 1991, if the increase cannot be absorbed within 9 the contribution rates otherwise established pursuant to this 10 paragraph, but subject to a maximum employee contribution rate 11 of eleven and three-tenths percent or, beginning July 1, 2009, 12 eleven and thirty-five hundredths percent. The contribution 13 rate increases specified in 1994 Iowa Acts, ch. 1183, pursuant 14 to this chapter and chapter 97A shall be the only member 15 contribution rate increases for these systems resulting from 16 the statutory changes enacted in 1994 Iowa Acts, ch. 1183, and 17 shall apply only to the fiscal periods specified in 1994 Iowa 18 Acts, ch. 1183. After the employee contribution reaches eleven 19 and three-tenths percent or eleven and thirty-five hundredths 20 percent, as applicable, sixty percent of the additional cost 21 of such statutory changes shall be paid by employers under 22 paragraph “c” and forty percent of the additional cost shall be 23 paid by employees under this paragraph. 24 Sec. 9. Section 411.15, Code 2023, is amended to read as 25 follows: 26 411.15 Hospitalization and medical attention. 27 1. a. Cities shall provide hospital, nursing, and medical 28 attention for the members of the police and fire departments 29 of the cities, when injured while in the performance of their 30 duties as members of such department , and or for injuries and 31 diseases arising out of and in the course of the employment. 32 b. Cities shall continue to provide hospital, nursing, and 33 medical attention for injuries or diseases incurred while in 34 the performance of their duties or arising out of and in the 35 -5- LSB 1947XC (3) 90 ec/rn 5/ 9
S.F. _____ course of the employment for members or beneficiaries receiving 1 a retirement allowance under section 411.6 , subsection 6 . 2 2. a. Cities may fund the cost of the hospital, nursing, 3 and medical attention required by this section through the 4 purchase of insurance, by self-insuring the obligation, or 5 through payment of moneys into a local government risk pool 6 established for the purpose of covering the costs associated 7 with the requirements of this section . However, the cost of 8 the hospital, nursing, and medical attention required by this 9 section shall not be funded through an employee-paid health 10 insurance policy. 11 b. A member or beneficiary shall not be required to pay the 12 cost of the hospital, nursing, and medical attention required 13 by this section, including but not limited to any costs 14 or premiums associated with any insurance policy providing 15 coverage for the hospital, nursing, and medical attention. 16 c. The cost of the hospital, nursing, and medical attention 17 required by this section shall be paid from moneys held in a 18 trust and agency fund established pursuant to section 384.6 , 19 or out of the appropriation for the department to which the 20 injured person belongs or belonged; provided that any amounts 21 received by the injured person from any other source for such 22 specific purposes, shall be deducted from the amount paid by 23 the city under the provisions of this section . 24 3. a. For purposes of this subsection, “date of the 25 occurrence of the injury or disease” means the date that the 26 member or beneficiary knew or should have known that the injury 27 or disease was work-related. 28 b. To be provided the cost of the hospital, nursing, and 29 medical attention required by this section, the city or the 30 city’s representative shall have actual knowledge of the 31 occurrence of an injury or disease or be provided notice of the 32 occurrence of an injury or disease on behalf of a member or 33 beneficiary within ninety days from the date of the occurrence 34 of the injury or disease. 35 -6- LSB 1947XC (3) 90 ec/rn 6/ 9
S.F. _____ c. (1) Except as provided in subparagraph (2), an action 1 to require the city to provide the cost of hospital, nursing, 2 and medical attention required by this section shall not be 3 maintained unless the action is commenced before the later of 4 any of the following: 5 (a) Two years from the date of the occurrence of the injury 6 or disease. 7 (b) Two years from the date the city denies a claim to 8 provide hospital, nursing, and medical attention required by 9 this section. 10 (2) An action to require the city to provide the cost of 11 the hospital, nursing, and medical attention required by this 12 section for a disease as defined in section 411.6, subsection 13 5, shall not be maintained unless the action is commenced 14 within five years from the last date of employment of the 15 member. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill concerns benefits to members under the municipal 20 fire and police retirement system established under Code 21 chapter 411. 22 Code section 411.1, concerning definitions, is amended. The 23 bill defines an “ordinary disability beneficiary” as a member 24 retired on an ordinary disability retirement benefit for five 25 years or less. The bill also amends the definition of “member 26 in good standing” to mean any member in service who has not 27 been terminated by the employing city of the member. 28 Code section 411.6(5), concerning accidental disability 29 benefits, is amended to allow an ordinary disability 30 beneficiary to make application to the retirement system for an 31 accidental disability retirement benefit. The subsection is 32 further amended to provide that a person is entitled to pay and 33 allowances if determined to be temporarily incapacitated prior 34 to an accidental disability retirement determination and for 35 -7- LSB 1947XC (3) 90 ec/rn 7/ 9
S.F. _____ an accidental disability retirement if the person has become 1 totally and permanently incapacitated as a result of injury and 2 disease arising out of and in the course of the employment and 3 by the actual performance of duty without regard to whether 4 that actual performance of duty was at some definite time and 5 place. The subsection is also amended to provide that disease 6 for purposes of an accidental disability benefit also means any 7 incapacitating mental disorder arising out of and in the course 8 of the employment, or while acting, pursuant to order, outside 9 the city by which the member is regularly employed. 10 Code section 411.6(6), providing for a retirement allowance 11 upon retirement for accidental disability, is amended to 12 provide that an ordinary disability beneficiary who is 13 determined to be entitled to a retirement for accidental 14 disability on or after July 1, 2023, shall receive a retirement 15 allowance that shall consist of the greater of an amount as 16 determined for members receiving an accidental disability 17 retirement or an amount equal to the disability retirement 18 allowance previously received by the beneficiary. 19 Code section 411.6(9), concerning accidental death benefits, 20 is amended to provide that an accidental death benefit shall 21 also be paid if the death was as a result of injury and disease 22 arising out of and in the course of the employment or by the 23 actual performance of duty without regard to whether that 24 actual performance of duty was at some definite time and place. 25 Code section 411.6(16), concerning ineligibility for 26 disability benefits, is amended to provide that a person 27 otherwise eligible to receive a disability retirement shall 28 not be eligible if the person is determined to be ineligible 29 pursuant to Code section 400.18 or 400.19, or other comparable 30 process. The bill provides for the repayment of benefits paid 31 prior to the determination of ineligibility. 32 Code section 411.8, concerning the method of financing 33 the retirement system, is amended by increasing the employee 34 contribution rate from 9.4 percent of pay to 9.55 percent of 35 -8- LSB 1947XC (3) 90 ec/rn 8/ 9
S.F. _____ pay beginning July 1, 2023. 1 Code section 411.15, concerning cities’ requirement to 2 provide hospitalization and medical attention for injuries 3 or diseases while on duty, is amended to provide that such 4 attention shall also be provided for injuries arising out 5 of and in the course of employment. The Code section is 6 further amended to provide that cities shall continue to 7 provide hospitalization and medical attention for injuries or 8 diseases while on duty for members or beneficiaries receiving 9 any retirement allowance under Code section 411.6 and not 10 just an accidental disability retirement allowance under 11 Code section 411.6(6). The Code section is further amended 12 to provide that a member shall not be required to pay the 13 cost of hospital, nursing, and medical attention required, 14 including payment of any costs or premiums associated with any 15 insurance policy providing coverage. The bill further provides 16 that to be provided the cost of the hospital, nursing, and 17 medical attention, the city shall have actual knowledge of the 18 occurrence of an injury or disease or be provided notice of 19 the occurrence of an injury or disease on behalf of a member 20 or beneficiary within 90 days from the date of the occurrence 21 of the injury or disease. The bill provides that an action to 22 require the city to provide the cost of the medical attention 23 shall not be maintained unless the action is commenced before 24 the later of two years from the date of the occurrence of the 25 injury or disease or two years from the date the city denies 26 a claim to provide medical attention. However, if the action 27 is related to costs associated with a disease as specified in 28 Code section 411.6(5), the bill provides that the cost of the 29 medical attention shall not be maintained unless the action is 30 commenced within five years from the last date of employment 31 of the member. 32 -9- LSB 1947XC (3) 90 ec/rn 9/ 9
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