Text: HF00602 Text: HF00604 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 97B.50A DISABILITY BENEFITS FOR 1 2 SPECIAL SERVICE MEMBERS. 1 3 1. DEFINITIONS. For purposes of this section, unless the 1 4 context otherwise provides: 1 5 a. "Member" means a vested member who is classified as a 1 6 special service member under section 97B.1A, subsection 22, at 1 7 the time of the alleged disability. 1 8 b. "Net disability retirement allowance" means the amount 1 9 determined by subtracting the amount paid during the previous 1 10 calendar year by the member for health insurance or similar 1 11 health care coverage for the member and the member's 1 12 dependents from the amount of the member's disability 1 13 retirement allowance paid for that year pursuant to this 1 14 section. 1 15 c. "Reemployment comparison amount" means an amount equal 1 16 to the current covered wages of an active special service 1 17 member at the same position on the salary scale within the 1 18 rank or position the member held at the time the member 1 19 received a disability retirement allowance pursuant to this 1 20 section. If the rank or position held by the member at the 1 21 time of retirement pursuant to this section is abolished, the 1 22 amount shall be computed by the department as though the rank 1 23 or position had not been abolished and salary increases had 1 24 been granted on the same basis as granted to other ranks or 1 25 positions by the former employer of the member. The 1 26 reemployment comparison amount shall not be less than the 1 27 three-year average covered wage of the member. 1 28 2. IN-SERVICE DISABILITY RETIREMENT ALLOWANCE. 1 29 a. A member who is injured in the performance of the 1 30 member's duties, and otherwise meets the requirements of this 1 31 subsection, shall receive an in-service disability retirement 1 32 allowance under the provisions of this subsection, in lieu of 1 33 a monthly retirement allowance as provided in section 97B.49A, 1 34 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as applicable. 1 35 b. Upon application of a member, a member who has become 2 1 totally and permanently incapacitated for duty in the member's 2 2 special service occupation as the natural and proximate result 2 3 of an injury, disease, or exposure occurring or aggravated 2 4 while in the actual performance of duty shall be eligible to 2 5 retire under this subsection, provided that the medical board, 2 6 designated under subsection 9, shall certify that the member 2 7 is mentally or physically incapacitated for further 2 8 performance of duty, that the incapacity is likely to be 2 9 permanent, and that the member should be retired. The 2 10 department shall make the final determination, based on the 2 11 medical evidence received, of a member's total and permanent 2 12 disability. However, if a person's membership in the system 2 13 first commenced on or after the effective date of this Act, 2 14 the member shall not be eligible for benefits with respect to 2 15 a disability which would not exist, but for a medical 2 16 condition that was known to exist on the date that membership 2 17 commenced. A member who is denied a benefit under this 2 18 subsection, by reason of a finding by the department that the 2 19 member is not mentally or physically incapacitated for the 2 20 further performance of duty, shall be entitled to be restored 2 21 to active service in the same or comparable special service 2 22 position held by the member immediately prior to the 2 23 application for disability benefits. 2 24 c. "Disease" under this subsection means heart disease or 2 25 any disease of the lungs or respiratory tract and shall be 2 26 presumed to have been contracted while on active duty as a 2 27 result of strain, exposure, or the inhalation of noxious 2 28 fumes, poison, or gases. However, if a person's membership in 2 29 the system first commenced on or after the effective date of 2 30 this Act, and the heart disease or disease of the lungs or 2 31 respiratory tract would not exist, but for a medical condition 2 32 that was known to exist on the date that membership commenced, 2 33 the presumption established in this paragraph shall not apply. 2 34 d. Upon retirement for an in-service disability as 2 35 provided by this subsection, a member shall receive the 3 1 greater of a monthly in-service disability retirement 3 2 allowance calculated under this subsection or a monthly 3 3 retirement allowance as provided in section 97B.49A, 97B.49B, 3 4 97B.49C, 97B.49D, or 97B.49G, as applicable. The monthly in- 3 5 service disability allowance calculated under this subsection 3 6 shall consist of an allowance equal to one-twelfth of sixty 3 7 percent of the member's three-year average covered wage or its 3 8 actuarial equivalent as provided under section 97B.51. 3 9 3. ORDINARY DISABILITY RETIREMENT ALLOWANCE. 3 10 a. A member who otherwise meets the requirements of this 3 11 subsection shall receive an ordinary disability retirement 3 12 allowance under the provisions of this subsection, in lieu of 3 13 a monthly retirement allowance as provided in section 97B.49A, 3 14 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as applicable. 3 15 b. Upon application of a member, a member who has become 3 16 totally and permanently incapacitated for duty in the member's 3 17 special service occupation shall be eligible to retire under 3 18 this subsection, provided that the medical board, designated 3 19 under subsection 9, shall certify that the member is mentally 3 20 or physically incapacitated for further performance of duty, 3 21 that the incapacity is likely to be permanent, and that the 3 22 member should be retired. The department shall make the final 3 23 determination, based on the medical evidence received, of a 3 24 member's total and permanent disability. However, if a 3 25 person's membership in the system first commenced on or after 3 26 the effective date of this Act, the member shall not be 3 27 eligible for benefits with respect to a disability which would 3 28 not exist, but for a medical condition that was known to exist 3 29 on the date that membership commenced. A member who is denied 3 30 a benefit under this subsection, by reason of a finding by the 3 31 department that the member is not mentally or physically 3 32 incapacitated for the further performance of duty, shall be 3 33 entitled to be restored to active service in the same or 3 34 comparable special service position held by the member 3 35 immediately prior to the application for disability benefits. 4 1 c. Upon retirement for an ordinary disability as provided 4 2 by this subsection, a member shall receive the greater of a 4 3 monthly ordinary disability retirement allowance calculated 4 4 under this subsection or a monthly retirement allowance as 4 5 provided in section 97B.49A, 97B.49B, 97B.49C, 97B.49D, or 4 6 97B.49G, as applicable. The monthly ordinary disability 4 7 allowance calculated under this subsection shall consist of an 4 8 allowance equal to one-twelfth of fifty percent of the 4 9 member's three-year average covered wage or its actuarial 4 10 equivalent as provided under section 97B.51. 4 11 4. WAIVER OF ALLOWANCE. A member receiving a disability 4 12 retirement allowance under this section may file an 4 13 application to receive benefits pursuant to section 97B.50, 4 14 subsection 2, in lieu of receiving a disability retirement 4 15 allowance under the provisions of this section, if the member 4 16 becomes eligible for benefits under section 97B.50, subsection 4 17 2. An application to receive benefits pursuant to section 4 18 97B.50, subsection 2, shall be filed with the department 4 19 within sixty days of becoming eligible for benefits pursuant 4 20 to that section or the member shall be ineligible to elect 4 21 coverage under that section. On the first of the month 4 22 following the month in which a member's application is 4 23 approved by the department, the member's election of coverage 4 24 under section 97B.50, subsection 2, shall become effective and 4 25 the member's eligibility to receive a disability retirement 4 26 allowance pursuant to this section shall cease. Benefits 4 27 payable pursuant to section 97B.50, subsection 2, shall be 4 28 calculated using the option choice the member selected for 4 29 payment of a disability retirement allowance pursuant to this 4 30 section. An application to elect coverage under section 4 31 97B.50, subsection 2, is irrevocable upon approval by the 4 32 department. 4 33 5. OFFSET TO ALLOWANCE. Notwithstanding any provisions to 4 34 the contrary in state law, or any applicable contract or 4 35 policy, any amounts which may be paid or payable by the 5 1 employer under the provisions of any workers' compensation, 5 2 unemployment compensation, or other law to a member, and any 5 3 disability payments the member receives pursuant to the 5 4 federal Social Security Act, 42 U.S.C. } 423 et seq., shall be 5 5 offset against and payable in lieu of any retirement allowance 5 6 payable pursuant to this section on account of the same 5 7 disability. 5 8 6. REEXAMINATION OF MEMBERS RETIRED ON ACCOUNT OF 5 9 DISABILITY. 5 10 a. Once each year during the first five years following 5 11 the retirement of a member under this section, and once in 5 12 every three-year period thereafter, the department may, and 5 13 upon the member's application shall, require any member 5 14 receiving an in-service or ordinary disability retirement 5 15 allowance who has not yet attained the age of fifty-five years 5 16 to undergo a medical examination as arranged by the medical 5 17 board designated under subsection 9. The examination shall be 5 18 made by the medical board or by an additional physician or 5 19 physicians designated by the medical board. If any member 5 20 receiving an in-service or ordinary disability retirement 5 21 allowance who has not attained the age of fifty-five years 5 22 refuses to submit to the medical examination, the allowance 5 23 may be discontinued until the member's withdrawal of the 5 24 refusal, and should the member's refusal continue for one 5 25 year, all rights in and to the member's disability retirement 5 26 allowance shall be revoked by the department. 5 27 b. If a member is determined under paragraph "a", to be no 5 28 longer eligible for in-service or ordinary disability 5 29 benefits, all benefits paid under this section shall cease. 5 30 The member shall be eligible to receive benefits calculated 5 31 under section 97B.49B or 97B.49C, as applicable, when the 5 32 member reaches age fifty-five. 5 33 7. REEMPLOYMENT. 5 34 a. If a member receiving a disability retirement allowance 5 35 is returned to covered employment, the member's disability 6 1 retirement allowance shall cease, the member shall again 6 2 become an active member, and shall contribute thereafter at 6 3 the same rate payable by similarly classified members. If a 6 4 member receiving a disability retirement allowance returns to 6 5 special service employment, the period of time the member 6 6 received a disability retirement allowance shall constitute 6 7 eligible service as defined in section 97B.49B, subsection 1, 6 8 or section 97B.49C, subsection 1, as applicable. Upon 6 9 subsequent retirement, the member's retirement allowance shall 6 10 be calculated as provided in section 97B.48A. 6 11 b. (1) If a member receiving a disability retirement 6 12 allowance is engaged in a gainful occupation that is not 6 13 covered employment, the member's disability retirement 6 14 allowance shall be reduced, if applicable, as provided in this 6 15 paragraph "b". 6 16 (2) If the member is engaged in a gainful occupation 6 17 paying more than the difference between the member's net 6 18 disability retirement allowance and one and one-half times the 6 19 reemployment comparison amount for that member, the amount of 6 20 the member's disability retirement allowance shall be reduced 6 21 to an amount such that the member's net disability retirement 6 22 allowance plus the amount earned by the member shall equal one 6 23 and one-half times the reemployment comparison amount for that 6 24 member. 6 25 (3) The member shall submit sufficient documentation to 6 26 the system to permit the system to determine the member's net 6 27 disability retirement allowance and earnings from a gainful 6 28 occupation that is not covered employment for the applicable 6 29 year. 6 30 (4) This paragraph "b" does not apply to a member who is 6 31 at least fifty-five years of age and who would have completed 6 32 a sufficient number of years of service if the member had 6 33 remained in active special service employment. For purposes 6 34 of this subparagraph, a sufficient number of years of service 6 35 shall be twenty-five for a special service member as described 7 1 in section 97B.49B or twenty-two years of service for a 7 2 special service member as described in section 97B.49C. 7 3 8. DEATH BENEFITS. A member who is receiving an in- 7 4 service or ordinary disability retirement allowance under this 7 5 section shall be treated as having elected a lifetime monthly 7 6 retirement allowance with death benefits payable under section 7 7 97B.52, subsection 2, unless the member elects an optional 7 8 form of benefit provided under section 97B.51, which shall be 7 9 actuarially equivalent to the lifetime monthly retirement 7 10 allowance provided under this section. 7 11 9. MEDICAL BOARD. The system shall designate a medical 7 12 board to be composed of three physicians from the university 7 13 of Iowa hospitals and clinics who shall arrange for and pass 7 14 upon the medical examinations required under the provisions of 7 15 this section and shall report in writing to the department the 7 16 conclusions and recommendations upon all matters duly referred 7 17 to the medical board. Each report of a medical examination 7 18 under this section shall include the medical board's findings 7 19 as to the extent of the member's physical impairment. Except 7 20 as required by this section, each report shall be confidential 7 21 and shall be maintained in accordance with the federal 7 22 Americans with Disabilities Act, and any other state or 7 23 federal law containing requirements for confidentiality of 7 24 medical records. 7 25 10. LIABILITY OF THIRD PARTIES SUBROGATION. 7 26 a. If a member receives an injury for which benefits are 7 27 payable under this section, and if the injury is caused under 7 28 circumstances creating a legal liability for damages against a 7 29 third party other than the system, the member or the member's 7 30 legal representative may maintain an action for damages 7 31 against the third party. If a member or a member's legal 7 32 representative commences such an action, the plaintiff member 7 33 or representative shall serve a copy of the original notice 7 34 upon the system not less than ten days before the trial of the 7 35 action, but a failure to serve the notice does not prejudice 8 1 the rights of the system, and the following rights and duties 8 2 ensue: 8 3 (1) The system shall be indemnified out of the recovery of 8 4 damages to the extent of benefit payments made by the system, 8 5 with legal interest, except that the plaintiff member's 8 6 attorney fees may be first allowed by the district court. 8 7 (2) The system has a lien on the damage claim against the 8 8 third party and on any judgment on the damage claim for 8 9 benefits for which the system is liable. In order to continue 8 10 and preserve the lien, the system shall file a notice of the 8 11 lien within thirty days after receiving a copy of the original 8 12 notice in the office of the clerk of the district court in 8 13 which the action is filed. 8 14 b. If a member fails to bring an action for damages 8 15 against a third party within thirty days after the system 8 16 requests the member in writing to do so, the system is 8 17 subrogated to the rights of the member and may maintain the 8 18 action against the third party, and may recover damages for 8 19 the injury to the same extent that the member may recover 8 20 damages for the injury. If the system recovers damages in the 8 21 action, the court shall enter judgment for distribution of the 8 22 recovery as follows: 8 23 (1) A sum sufficient to repay the system for the amount of 8 24 such benefits actually paid by the system up to the time of 8 25 the entering of the judgment. 8 26 (2) A sum sufficient to pay the system the present worth, 8 27 computed at the interest rate provided in section 535.3 for 8 28 court judgments and decrees, of the future payments of such 8 29 benefits, for which the system is liable, but the sum is not a 8 30 final adjudication of the future payment which the member is 8 31 entitled to receive. 8 32 (3) Any balance shall be paid to the member. 8 33 c. Before a settlement is effective between the system and 8 34 a third party who is liable for any injury, the member must 8 35 consent in writing to the settlement; and if the settlement is 9 1 between the member and a third party, the system must consent 9 2 in writing to the settlement; or on refusal to consent, in 9 3 either case, the district court in the county in which either 9 4 the employer of the member or the system is located must 9 5 approve the settlement in writing. 9 6 d. For purposes of subrogation under this section, a 9 7 payment made to an injured member or the member's legal 9 8 representative, by or on behalf of a third party or the third 9 9 party's principal or agent, who is liable for, connected with, 9 10 or involved in causing the injury to the member, shall be 9 11 considered paid as damages because the injury was caused under 9 12 circumstances creating a legal liability against the third 9 13 party, whether the payment is made under a covenant not to 9 14 sue, compromise settlement, denial of liability, or is 9 15 otherwise made. 9 16 11. DOCUMENT SUBMISSIONS. A member retired under this 9 17 section, in order to be eligible for continued receipt of 9 18 retirement benefits, shall submit to the department any 9 19 documentation the department may reasonably request which will 9 20 provide information needed to determine payments to the member 9 21 under this section. 9 22 12. EXPENSES. The expenses incurred in the administration 9 23 of this section by the system shall be paid through additional 9 24 contributions as determined pursuant to section 97B.49B, 9 25 subsection 3, or section 97B.49C, subsection 3, as applicable. 9 26 13. APPLICABILITY RETROACTIVITY. 9 27 a. This section applies to a member who becomes disabled 9 28 on or after the effective date of this Act, and also applies 9 29 to a member who becomes disabled prior to the effective date 9 30 of this Act, if the member has not terminated special service 9 31 employment before the effective date of this Act. 9 32 b. To qualify for benefits under this section, a member 9 33 must file a completed application with the department within 9 34 one year of the member's termination of employment. A member 9 35 eligible for a disability retirement allowance under this 10 1 section is entitled to receipt of retroactive adjustment 10 2 payments for no more than six months immediately preceding the 10 3 month in which the completed application for receipt of a 10 4 disability retirement allowance under this section is 10 5 approved. 10 6 EXPLANATION 10 7 This bill provides for disability retirement benefits for 10 8 special service members of the Iowa public employees' 10 9 retirement system (IPERS). A special service member of IPERS 10 10 for purposes of this bill includes a person who is a member of 10 11 a protection occupation or who is a sheriff, deputy sheriff, 10 12 or airport fire fighter. 10 13 The new Code section provides that an eligible special 10 14 service member of IPERS who becomes disabled for duty while in 10 15 the performance of the member's duty is entitled to an in- 10 16 service disability retirement allowance equal to the greater 10 17 of 1/12 of 60 percent of the member's three-year average 10 18 covered wage or what the member would receive under a normal 10 19 retirement. For purposes of establishing an in-service 10 20 disability, heart or lung disease is presumed to have been 10 21 contracted while on duty. The new Code section also provides 10 22 that a member who becomes disabled and unable to perform the 10 23 person's job is entitled to an ordinary disability retirement 10 24 allowance equal to the greater of 1/12 of 50 percent of the 10 25 member's three-year average covered wage or what the member 10 26 would receive under a normal retirement. For both disability 10 27 retirements, the department of personnel makes the decision as 10 28 to whether the person is totally disabled. The new Code 10 29 section also has provisions for offsets to disability 10 30 allowances, reexamination of members on disability, 10 31 reemployment, death benefits, establishing the medical board, 10 32 and subrogation. The new Code section provides that the costs 10 33 of administering the disability program shall be paid through 10 34 contributions from the special service employees and their 10 35 employers in the same manner as additional benefits are paid. 11 1 (The employer pays 60 percent and the employee pays 40 11 2 percent). The new Code section, applies to a special service 11 3 member who became disabled prior to the effective date of the 11 4 bill, if the member did not terminate the special service 11 5 employment before the effective date of the bill. 11 6 LSB 1890HH 78 11 7 ec/cf/24
Text: HF00602 Text: HF00604 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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