Text: H08440                            Text: H08442
Text: H08400 - H08499                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index



House Amendment 8441

Amendment Text

PAG LIN
  1  1    Amend House File 2496 as follows:
  1  2    #1.  Page 46, by inserting after line 32 the
  1  3 following:
  1  4    "Sec. 101.  NEW SECTION.  97B.50A  DISABILITY
  1  5 BENEFITS FOR SPECIAL SERVICE MEMBERS.
  1  6    1.  DEFINITIONS.  For purposes of this section,
  1  7 unless the context otherwise provides, "member" means
  1  8 a vested member who is classified as a special service
  1  9 member under section 97B.1A, subsection 21, at the
  1 10 time of the alleged disability.
  1 11    2.  IN-SERVICE DISABILITY RETIREMENT ALLOWANCE.
  1 12    a.  Effective July 1, 1999, a member who is injured
  1 13 in the performance of the member's duties, and
  1 14 otherwise meets the requirements of this subsection
  1 15 shall receive an in-service disability retirement
  1 16 allowance under the provisions of this subsection, in
  1 17 lieu of a monthly retirement allowance as provided in
  1 18 section 97B.49A, 97B.49B, 97B.49C, 97B.49D, or
  1 19 97B.49G, as applicable, or benefits calculated as
  1 20 provided in section 97B.50, subsection 2.
  1 21    b.  Upon application of a member, a member who has
  1 22 become totally and permanently incapacitated for duty
  1 23 in the member's special service occupation as the
  1 24 natural and proximate result of an injury, disease, or
  1 25 exposure occurring or aggravated while in the actual
  1 26 performance of duty shall be eligible to retire under
  1 27 this subsection, provided that the medical board shall
  1 28 certify that the member is mentally or physically
  1 29 incapacitated for further performance of duty, that
  1 30 the incapacity is likely to be permanent, and that the
  1 31 member should be retired.  The department shall make
  1 32 the final determination, based on the medical evidence
  1 33 received, of a member's total and permanent
  1 34 disability.  However, if a person's membership in the
  1 35 system first commenced on or after July 1, 1999, the
  1 36 member shall not be eligible for benefits with respect
  1 37 to a disability which would not exist, but for a
  1 38 medical condition that was known to exist on the date
  1 39 that membership commenced, or the fact that the member
  1 40 used or smoked tobacco, tobacco products, or
  1 41 cigarettes.
  1 42    c.  Disease under this subsection shall mean heart
  1 43 disease or any disease of the lungs or respiratory
  1 44 tract and shall be presumed to have been contracted
  1 45 while on active duty as a result of strain, exposure,
  1 46 or the inhalation of noxious fumes, poison, or gases.
  1 47 However, if a person's membership in the system first
  1 48 commenced on or after July 1, 1999, and the heart
  1 49 disease or disease of the lungs or respiratory tract
  1 50 would not exist, but for a medical condition that was
  2  1 known to exist on the date that membership commenced,
  2  2 or the fact that the member used or smoked tobacco,
  2  3 tobacco products, or cigarettes, the presumption
  2  4 established in this paragraph shall not apply.
  2  5    d.  Upon retirement for an in-service disability as
  2  6 provided by this subsection, a member shall receive
  2  7 the greatest of a monthly in-service disability
  2  8 retirement allowance calculated under this subsection,
  2  9 a monthly retirement allowance as provided in section
  2 10 97B.49A, 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as
  2 11 applicable, or a disability retirement allowance
  2 12 calculated under section 97B.50, subsection 2.  The
  2 13 monthly in-service disability allowance calculated
  2 14 under this subsection shall consist of an allowance
  2 15 equal to one-twelfth of sixty percent of the member's
  2 16 three-year average covered wage or its actuarial
  2 17 equivalent as provided under section 97B.51.
  2 18    3.  ORDINARY DISABILITY RETIREMENT ALLOWANCE.
  2 19    a.  Effective July 1, 1999, a member who otherwise
  2 20 meets the requirements of this subsection shall
  2 21 receive an ordinary disability retirement allowance
  2 22 under the provisions of this subsection, in lieu of a
  2 23 monthly retirement allowance as provided in section
  2 24 97B.49A, 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as
  2 25 applicable, or benefits calculated as provided in
  2 26 section 97B.50, subsection 2.
  2 27    b.  Upon application of a member, a member who has
  2 28 become totally and permanently incapacitated for duty
  2 29 in the member's special service occupation shall be
  2 30 eligible to retire under this subsection, provided
  2 31 that the medical board shall certify that the member
  2 32 is mentally or physically incapacitated for further
  2 33 performance of duty, that the incapacity is likely to
  2 34 be permanent, and that the member should be retired.
  2 35 The department shall make the final determination,
  2 36 based on the medical evidence received, of a member's
  2 37 total and permanent disability.  However, if a
  2 38 person's membership in the system first commenced on
  2 39 or after July 1, 1999, the member shall not be
  2 40 eligible for benefits with respect to a disability
  2 41 which would not exist, but for a medical condition
  2 42 that was known to exist on the date that membership
  2 43 commenced, or the fact that the member used or smoked
  2 44 tobacco, tobacco products, or cigarettes.
  2 45    c.  Upon retirement for an ordinary disability as
  2 46 provided by this subsection, a member shall receive
  2 47 the greatest of a monthly ordinary disability
  2 48 retirement allowance calculated under this subsection,
  2 49 a monthly retirement allowance as provided in section
  2 50 97B.49A, 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as
  3  1 applicable, or a disability retirement allowance
  3  2 calculated under section 97B.50, subsection 2.  The
  3  3 monthly ordinary disability allowance calculated under
  3  4 this subsection shall consist of an allowance equal to
  3  5 one-twelfth of fifty percent of the member's three-
  3  6 year average covered wage or its actuarial equivalent
  3  7 as provided under section 97B.51.
  3  8    4.  OFFSET TO ALLOWANCE.  Notwithstanding any
  3  9 provisions to the contrary in state law, or any
  3 10 applicable contract or policy, any amounts which may
  3 11 be paid or payable by the employer under the
  3 12 provisions of any workers' compensation, unemployment
  3 13 compensation, or other law to a member, and any
  3 14 disability payments the member receives pursuant to
  3 15 the federal Social Security Act, 42 U.S.C. } 423 et.
  3 16 seq., shall be offset against and payable in lieu of
  3 17 any retirement allowance payable pursuant to this
  3 18 section on account of the same disability.
  3 19    5.  REEXAMINATION OF MEMBERS RETIRED ON ACCOUNT OF
  3 20 DISABILITY.
  3 21    a.  Once each year during the first five years
  3 22 following the retirement of a member under this
  3 23 section, and once in every three-year period
  3 24 thereafter, the department may, and upon the member's
  3 25 application shall, require any member receiving an in-
  3 26 service or ordinary disability retirement allowance
  3 27 who has not yet attained the age of fifty-five years
  3 28 to undergo a medical examination as arranged by the
  3 29 medical board.  The examination shall be made by the
  3 30 medical board or by an additional physician or
  3 31 physicians designated by the board.  If any member
  3 32 receiving an in-service or ordinary disability
  3 33 retirement allowance who has not attained the age of
  3 34 fifty-five years refuses to submit to the medical
  3 35 examination, the allowance may be discontinued until
  3 36 the member's withdrawal of the refusal, and should the
  3 37 member's refusal continue for one year, all rights in
  3 38 and to the member's disability retirement allowance
  3 39 shall be revoked by the department.
  3 40    b.  If a member is determined under paragraph "a"
  3 41 to be no longer eligible for in-service or ordinary
  3 42 disability benefits, all benefits paid under this
  3 43 section shall cease.  The member shall be eligible to
  3 44 receive benefits calculated under section 97B.49B or
  3 45 97B.49C, as applicable, when the member reaches age
  3 46 fifty-five.
  3 47    6.  REEMPLOYMENT.
  3 48    a.  If a member receiving a disability retirement
  3 49 allowance is returned to covered employment, the
  3 50 member's disability retirement allowance shall cease,
  4  1 the member shall again become an active member, and
  4  2 shall contribute thereafter at the same rate payable
  4  3 by similarly classified members.  Upon subsequent
  4  4 retirement, the member's retirement allowance shall be
  4  5 calculated as provided in section 97B.48A.
  4  6    b.  Should a member who receives benefits under
  4  7 this section, except a member who is sixty-five years
  4  8 of age or over, be engaged in a gainful noncovered
  4  9 occupation, the member's disability benefits payable
  4 10 under this section for that calendar year shall be
  4 11 reduced by fifty cents for every dollar the member
  4 12 earns over the dollar amount determined under section
  4 13 97B.48A, subsection 1.
  4 14    7.  DEATH BENEFITS.  A member who is receiving an
  4 15 in-service or ordinary disability retirement allowance
  4 16 under this section shall be treated as having elected
  4 17 a lifetime monthly retirement allowance with death
  4 18 benefits payable under section 97B.52, subsection 2,
  4 19 unless the member elects an optional form of benefit
  4 20 provided under section 97B.51, which shall be
  4 21 actuarially equivalent to the lifetime monthly
  4 22 retirement allowance provided under this section.
  4 23    8.  MEDICAL BOARD.  The system shall designate a
  4 24 medical board to be composed of three physicians from
  4 25 the university of Iowa hospitals and clinics who shall
  4 26 arrange for and pass upon the medical examinations
  4 27 required under the provisions of this section and
  4 28 shall report in writing to the department the
  4 29 conclusions and recommendations upon all matters duly
  4 30 referred to the medical board.  Each report of a
  4 31 medical examination under this section shall include
  4 32 the medical board's findings as to the extent of the
  4 33 member's physical impairment.  Except as required by
  4 34 this section, each report shall be confidential and
  4 35 shall be maintained in accordance with the federal
  4 36 Americans with Disabilities Act, and any other state
  4 37 or federal law containing requirements for
  4 38 confidentiality of medical records.
  4 39    9.  LIABILITY OF THIRD PARTIES – SUBROGATION.
  4 40    a.  If a member receives an injury for which
  4 41 benefits are payable under this section, and if the
  4 42 injury is caused under circumstances creating a legal
  4 43 liability for damages against a third party other than
  4 44 the system, the member or the member's legal
  4 45 representative may maintain an action for damages
  4 46 against the third party.  If a member or a member's
  4 47 legal representative commences such an action, the
  4 48 plaintiff member or representative shall serve a copy
  4 49 of the original notice upon the system not less than
  4 50 ten days before the trial of the action, but a failure
  5  1 to serve the notice does not prejudice the rights of
  5  2 the system, and the following rights and duties ensue:
  5  3    (1)  The system shall be indemnified out of the
  5  4 recovery of damages to the extent of benefit payments
  5  5 made by the system, with legal interest, except that
  5  6 the plaintiff member's attorney fees may be first
  5  7 allowed by the district court.
  5  8    (2)  The system has a lien on the damage claim
  5  9 against the third party and on any judgment on the
  5 10 damage claim for benefits for which the system is
  5 11 liable.  In order to continue and preserve the lien,
  5 12 the system shall file a notice of the lien within
  5 13 thirty days after receiving a copy of the original
  5 14 notice in the office of the clerk of the district
  5 15 court in which the action is filed.
  5 16    b.  If a member fails to bring an action for
  5 17 damages against a third party within thirty days after
  5 18 the system requests the member in writing to do so,
  5 19 the system is subrogated to the rights of the member
  5 20 and may maintain the action against the third party,
  5 21 and may recover damages for the injury to the same
  5 22 extent that the member may recover damages for the
  5 23 injury.  If the system recovers damages in the action,
  5 24 the court shall enter judgment for distribution of the
  5 25 recovery as follows:
  5 26    (1)  A sum sufficient to repay the system for the
  5 27 amount of such benefits actually paid by the system up
  5 28 to the time of the entering of the judgment.
  5 29    (2)  A sum sufficient to pay the system the present
  5 30 worth, computed at the interest rate provided in
  5 31 section 535.3 for court judgments and decrees, of the
  5 32 future payments of such benefits, for which the system
  5 33 is liable, but the sum is not a final adjudication of
  5 34 the future payment which the member is entitled to
  5 35 receive.
  5 36    (3)  Any balance shall be paid to the member.
  5 37    c.  Before a settlement is effective between a
  5 38 system and a third party who is liable for any injury,
  5 39 the member must consent in writing to the settlement;
  5 40 and if the settlement is between the member and a
  5 41 third party, the system must consent in writing to the
  5 42 settlement; or on refusal to consent, in either case,
  5 43 the district court in the county in which either the
  5 44 employer of the member or the system is located must
  5 45 consent in writing to the settlement.
  5 46    d.  For purposes of subrogation under this section,
  5 47 a payment made to an injured member or the member's
  5 48 legal representative, by or on behalf of a third party
  5 49 or the third party's principal or agent, who is liable
  5 50 for, connected with, or involved in causing the injury
  6  1 to the member, shall be considered paid as damages
  6  2 because the injury was caused under circumstances
  6  3 creating a legal liability against the third party,
  6  4 whether the payment is made under a covenant not to
  6  5 sue, compromise settlement, denial of liability, or is
  6  6 otherwise made.
  6  7    10.  A member retired under this section, in order
  6  8 to be eligible for continued receipt of retirement
  6  9 benefits, shall no later than May 15 of each year
  6 10 submit to the department a copy of the member's
  6 11 federal individual income tax return for the preceding
  6 12 year, or any other documentation the department may
  6 13 reasonably request which will provide information
  6 14 needed to determine payments to the member under this
  6 15 section.
  6 16    11.  The expenses incurred in the administration of
  6 17 this section by the system shall be paid through
  6 18 additional contributions as determined pursuant to
  6 19 section 97B.49B, subsection 3, or section 97B.49C,
  6 20 subsection 3, as applicable.
  6 21    12.  RULES.  The department shall adopt rules
  6 22 pursuant to chapter 17A specifying the application
  6 23 procedure for members pursuant to this section."
  6 24    #2.  Page 67, by inserting after line 35 the
  6 25 following:
  6 26    "Sec. 102.  EFFECTIVE DATE.  Section 101 of this
  6 27 Act, creating new section 97B.50A, takes effect July
  6 28 1, 1999."
  6 29    #3.  Page 79, by striking lines 31 through 34 and
  6 30 inserting the following:  "each retirement system.
  6 31 Consideration of benefit enhancements".
  6 32    #4.  Page 79, line 35, by inserting after the word
  6 33 "account" the following:  "the availability of
  6 34 enhanced disability benefits for members of each
  6 35 retirement system under examination and".
  6 36    #5.  Page 81, line 2, by striking the words and
  6 37 figures "September 1, 2000" and inserting the
  6 38 following:  "November 2, 1998".
  6 39    #6.  Page 81, line 10, by striking the words and
  6 40 figure "3 and shall," and inserting the following:
  6 41 "3."
  6 42    #7.  Page 81, by striking lines 11 through 14.
  6 43    #8.  By renumbering as necessary.  
  6 44 
  6 45 
  6 46                               
  6 47 MARTIN of Scott 
  6 48 HF 2496.708 77
  6 49 ec/sc/28
     

Text: H08440                            Text: H08442
Text: H08400 - H08499                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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