Text: HSB00263                          Text: HSB00265
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 264

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  70A.38  YEARS OF SERVICE
  1  2 INCENTIVE PROGRAM.
  1  3    1.  As used in this section, unless the context provides
  1  4 otherwise:
  1  5    a.  "Credited service" means service under the Iowa public
  1  6 employees' retirement system, as service is defined in section
  1  7 97B.1A, and membership service under the public safety peace
  1  8 officers' retirement, accident, and disability system, as
  1  9 defined in section 97A.1.
  1 10    b.  "Eligible employee" means an employee with ten or more
  1 11 years of credited service as of the date of termination from
  1 12 employment.
  1 13    c.  "Employee" means an employee of the executive branch of
  1 14 the state, including an employee of a judicial district
  1 15 department of correctional services or the department of
  1 16 justice.  However, "employee" does not mean an employee of the
  1 17 state board of regents, or a statewide elected official.
  1 18    d.  "Employer" means a department, agency, board, or
  1 19 commission within the executive branch of the state that
  1 20 employs employees.
  1 21    e.  "Participant" means an eligible employee who has been
  1 22 selected for participation in the years of service incentive
  1 23 program, who agrees to such participation, who is approved for
  1 24 participation, and who receives a termination incentive as
  1 25 provided by this section.
  1 26    f.  "Program" means the years of service incentive program
  1 27 established pursuant to this section.
  1 28    g.  "Regular annual salary" means an amount equal to the
  1 29 eligible employee's regular biweekly rate of pay as of the
  1 30 date of separation from employment multiplied by twenty-six.
  1 31    h.  "Termination incentive" means an amount equal to the
  1 32 lesser of two hundred fifty dollars for every quarter year of
  1 33 credited service of the eligible employee or the regular
  1 34 annual salary of the eligible employee.
  1 35    2.  An employer may offer a termination incentive to an
  2  1 eligible employee or eligible employees if the employer
  2  2 demonstrates that such an offer will assist the employer in
  2  3 effectively managing its resources.  Prior to making the
  2  4 offer, the employer shall obtain approval to offer the program
  2  5 from the department of personnel.  As part of the approval
  2  6 process, the employer shall submit a business plan to the
  2  7 department of personnel which shall be reviewed and approved
  2  8 by the department of management.  The business plan shall show
  2  9 the savings that will accrue to the state as a result of the
  2 10 employee's or employees' participation in the program.
  2 11    3.  Upon obtaining approval from the department of
  2 12 personnel to offer the program, the employer shall inform each
  2 13 eligible employee in writing of the employee's opportunity to
  2 14 participate in the program.  The written notice to the
  2 15 eligible employee shall provide a time deadline for acceptance
  2 16 of an offer, a proposed date by which the eligible employee
  2 17 who wishes to accept an offer would have to agree to terminate
  2 18 employment with the state, and other relevant information
  2 19 concerning the employee's rights relating to an offer,
  2 20 including the voluntary nature of an offer to the eligible
  2 21 employee as well as the consequences to the employee of
  2 22 accepting an offer.
  2 23    4.  To become a participant in the program, an eligible
  2 24 employee who receives an offer to participate in the program
  2 25 shall do all of the following:
  2 26    a.  Acknowledge in writing the employee's agreement to
  2 27 voluntarily terminate employment in exchange for payment of a
  2 28 termination incentive as provided in this section.
  2 29    b.  Agree to waive all rights to file suit against the
  2 30 state of Iowa, including all of its departments, agencies, and
  2 31 other subdivisions, based on state or federal claims arising
  2 32 out of the employment relationship.
  2 33    c.  Acknowledge, in writing, that participation in the
  2 34 program waives any right to accept permanent part-time or
  2 35 permanent full-time employment with the state other than as an
  3  1 elected official or as an employee of the state board of
  3  2 regents.
  3  3    d.  Agree to separate from employment with the state by the
  3  4 date agreed upon by the eligible employee and the employer
  3  5 which date is consistent with the business plan submitted by
  3  6 the employer.
  3  7    5.  Upon acceptance to participate in the program and
  3  8 separation from employment with the state by the date agreed
  3  9 upon, the participant shall be paid a termination incentive.
  3 10 The state shall pay to the participant, in a lump sum, the
  3 11 termination incentive and any other payments due the
  3 12 participant, if any, for accrued sick leave and vacation leave
  3 13 balances.
  3 14    6.  The department of personnel shall administer the
  3 15 program and shall adopt administrative rules to administer the
  3 16 program.
  3 17    7.  This section is repealed June 30, 2003.
  3 18    Sec. 2.  2001 Iowa Acts, First Extraordinary Session,
  3 19 chapter 5, section 2, is repealed.
  3 20    Sec. 3.  SICK LEAVE AND VACATION INCENTIVE PROGRAM.
  3 21    1.  As used in this section, unless the context provides
  3 22 otherwise:
  3 23    a.  "Credited service" means service under the Iowa public
  3 24 employees' retirement system, as service is defined in section
  3 25 97B.1A, and membership service under the public safety peace
  3 26 officers' retirement, accident, and disability system, as
  3 27 defined in section 97A.1.
  3 28    b.  "Eligible employee" means an employee for which, but
  3 29 for participation in the program, the sum of the number of
  3 30 years of credited service and the employee's age in years as
  3 31 of December 31, 2002, equals or exceeds seventy-five.
  3 32    c.  "Employee" means an employee of the executive branch of
  3 33 the state who is not covered by a collective bargaining
  3 34 agreement, including an employee of a judicial district
  3 35 department of correctional services if the district elects to
  4  1 participate in the program, an employee of the state board of
  4  2 regents if employees of the board covered by a collective
  4  3 bargaining agreement agree to participate in a similar early
  4  4 termination program, and an employee of the department of
  4  5 justice.  However, "employee" does not mean a statewide
  4  6 elected official.
  4  7    d.  "Participant" means a person who timely submits an
  4  8 election to participate, and does participate, in the sick
  4  9 leave and vacation incentive program established under this
  4 10 section.
  4 11    e.  "Program" means the sick leave and vacation incentive
  4 12 program established under this section.
  4 13    f.  "Regular annual salary" means an amount equal to the
  4 14 eligible employee's regular biweekly rate of pay as of the
  4 15 date of separation from employment multiplied by twenty-six.
  4 16    g.  "Sick leave and vacation incentive benefit" means an
  4 17 amount equal to the entire value of an eligible employee's
  4 18 accumulated but unused vacation plus the lesser of the entire
  4 19 value of the eligible employee's accumulated and unused sick
  4 20 leave or the employee's regular annual salary.
  4 21    2.  To become a participant in the program, an eligible
  4 22 employee shall do all of the following:
  4 23    a.  Submit by January 31, 2002, a written application, on
  4 24 forms prescribed by the department of personnel, seeking
  4 25 participation in the program.
  4 26    b.  Agree to waive any and all rights to receive payments
  4 27 of sick leave balances under section 70A.23 and accrued
  4 28 vacation balances in a form other than as provided in this
  4 29 section.
  4 30    c.  Agree to waive all rights to file suit against the
  4 31 state of Iowa, including all of its departments, agencies, and
  4 32 other subdivisions, based on state or federal claims arising
  4 33 out of the employment relationship.
  4 34    d.  Acknowledge, in writing, that participation in the
  4 35 program waives any right to accept permanent part-time or
  5  1 permanent full-time employment with the state other than as an
  5  2 elected official on or after February 1, 2002.
  5  3    e.  Agree to separate from employment with the state by
  5  4 February 1, 2002.
  5  5    3.  Upon acceptance to participate in the program and
  5  6 separation from employment with the state by February 1, 2002,
  5  7 a participant shall receive a sick leave and vacation
  5  8 incentive benefit.  The state shall pay to the participant a
  5  9 portion of the sick leave and vacation incentive benefit each
  5 10 fiscal year for a period of five years commencing with the
  5 11 fiscal year ending June 30, 2002.
  5 12    4.  The department of personnel shall administer the
  5 13 program, including the determination of eligibility for
  5 14 participation in the program, and shall adopt administrative
  5 15 rules to administer the program.  The department may adopt
  5 16 rules on an emergency basis under section 17A.4, subsection 2,
  5 17 and section 17A.5, subsection 2, paragraph "b", to implement
  5 18 this section and the rules shall be effective immediately upon
  5 19 filing unless a later date is specified in the rules.
  5 20    5.  The legislative council may provide an incentive
  5 21 program for employees of the legislative branch consistent
  5 22 with the program provided in this section for executive branch
  5 23 employees.
  5 24    Sec. 4.  EARLY TERMINATION PROGRAMS – MISCELLANEOUS
  5 25 PROVISIONS.
  5 26    1.  DEFINITIONS.  For purposes of this section, unless the
  5 27 context otherwise requires:
  5 28    a.  "Early termination participant" means an eligible state
  5 29 employee who participates in an early termination program.
  5 30    b.  "Early termination program" means a sick leave and
  5 31 vacation incentive program as established or authorized in
  5 32 this Act and the similar early termination program established
  5 33 for state employees as established pursuant to a collective
  5 34 bargaining agreement entered into pursuant to chapter 20.
  5 35    2.  GROUP INSURANCE ELIGIBILITY.  An early termination
  6  1 participant shall be eligible to continue participation in the
  6  2 group plan or under the group contract at the early
  6  3 termination participant's own expense in the same manner as a
  6  4 retired employee pursuant to section 509A.13.  In addition, an
  6  5 early termination participant shall be deemed an eligible
  6  6 retired state employee for purposes of eligibility for
  6  7 continuation of group insurance covering spouses as provided
  6  8 in section 509A.13A.
  6  9    3.  RELEASE OF RECORDS.  Notwithstanding any provision of
  6 10 chapter 22 or section 97B.17 to the contrary, records of the
  6 11 department of personnel maintained for the operation of the
  6 12 Iowa public employees' retirement system may be released to
  6 13 the directors, agents, and employees of the legislative fiscal
  6 14 bureau, the department of revenue and finance, the department
  6 15 of management, and the department of personnel, for the
  6 16 purposes of administering and monitoring an early termination
  6 17 program.  A person receiving a record pursuant to this
  6 18 subsection shall maintain the confidentiality of any
  6 19 information otherwise required to be kept confidential and
  6 20 shall be subject to the same penalties as the custodian of the
  6 21 records for the public dissemination of such information.  The
  6 22 authority to request a record as provided pursuant to this
  6 23 subsection shall cease June 30, 2002.
  6 24    4.  REPORTING REQUIREMENTS.  The department of personnel,
  6 25 in collaboration with the department of management, shall
  6 26 present an interim report to the general assembly, including
  6 27 copies to the legislative fiscal bureau and the fiscal
  6 28 committee of the legislative council, by March 15, 2002, and a
  6 29 final report by October 1, 2002, concerning the operation of
  6 30 early termination programs.  The department shall also submit
  6 31 an annual update concerning the early termination programs by
  6 32 October 1 of each year for four years, commencing October 1,
  6 33 2003.  The reports shall include information concerning the
  6 34 number of early termination program participants, the cost of
  6 35 the early termination program including any payments made to
  7  1 participants, the number of state employment positions
  7  2 eliminated pursuant to an early termination program, the
  7  3 number of positions vacated by an early termination program
  7  4 participant that have been refilled, and the savings to the
  7  5 state based upon the early termination program.
  7  6    Sec. 5.  WORKFORCE ATTRITION FUND TRANSFER.  Moneys in or
  7  7 due the workforce attrition fund established pursuant to 2001
  7  8 Iowa Acts, First Extraordinary Session, chapter 5, as of the
  7  9 effective date of this Act shall be transferred to the general
  7 10 fund of the state no later than January 1, 2002, and the fund
  7 11 shall be abolished.
  7 12    Sec. 6.  INITIATIVES FOR STATE GOVERNMENT PRODUCTIVITY –
  7 13 SPAN OF CONTROL AND JOB CLASSIFICATION SYSTEM.  It is the
  7 14 intent of the general assembly to maximize the productivity of
  7 15 the state's workforce and increase Iowans' confidence in the
  7 16 value of their investment in state government.  To accomplish
  7 17 these goals, the following initiatives shall be completed:
  7 18    1.  SPAN OF CONTROL.  The department of personnel, in
  7 19 consultation with the department of management and after
  7 20 discussion and collaboration with executive branch agencies,
  7 21 shall pursue a goal of increasing the ratio of the number of
  7 22 employees per supervisor for executive branch agencies in the
  7 23 aggregate to twelve employees for one supervisor by December
  7 24 31, 2002.
  7 25    2.  JOB CLASSIFICATION SYSTEM.  The department of
  7 26 personnel, in consultation and collaboration with executive
  7 27 branch agencies and employee organizations representing
  7 28 employees of executive branch agencies, shall evaluate the
  7 29 state's system of job classification for state employees in
  7 30 order to ensure the existence of technical skill-based career
  7 31 paths in state government which do not depend on an employee
  7 32 gaining supervisory responsibility to gain advancement, and
  7 33 which provide incentives for state employees to broaden their
  7 34 knowledge and skill base.  The department shall include in its
  7 35 review the elimination of obsolete, duplicative, or
  8  1 unnecessary job classifications.
  8  2    The department shall present an interim report to the
  8  3 governor and the general assembly by September 1, 2002, and a
  8  4 final report by February 1, 2003, concerning the progress made
  8  5 by the department in completing both initiatives and any
  8  6 recommendations and ongoing efforts by the department to meet
  8  7 each initiative.
  8  8    Sec. 7.  COST-OF-LIVING PAY INCREASE DELAY.  It is the
  8  9 intent of the general assembly that cost-of-living pay
  8 10 increases for employees of employers participating in the sick
  8 11 leave and vacation incentive program established in this Act
  8 12 be delayed from July 1, 2002, until November 1, 2002.
  8 13    Sec. 8.  EFFECTIVE DATES.
  8 14    1.  Sections 2, 3, 4, 5, 6, and 7 of this Act, being deemed
  8 15 of immediate importance, take effect upon enactment.
  8 16    2.  Section 1 of this Act, establishing Code section
  8 17 70A.38, takes effect July 1, 2002.  
  8 18                           EXPLANATION
  8 19    This bill establishes two early termination programs for
  8 20 eligible state employees, a years of service incentive program
  8 21 and a sick leave and vacation incentive program.  The bill
  8 22 also repeals the workforce attrition program and fund and
  8 23 transfers moneys in the fund to the general fund of the state.
  8 24    The bill establishes a years of service incentive program
  8 25 which permits an executive branch department, agency, board,
  8 26 or commission to offer a termination incentive to eligible
  8 27 employees who agree to separate from state employment.  To be
  8 28 eligible, an employee shall have 10 or more years of covered
  8 29 service under PORS and IPERS as of the date the employee
  8 30 leaves state employment.  Prior to offering the program to an
  8 31 eligible employee or employees, the executive branch employer
  8 32 must obtain approval from the department of personnel.  As
  8 33 part of this approval process, the employer shall submit a
  8 34 business plan to the departments of management and personnel
  8 35 indicating the savings to the state if the employee or
  9  1 employees participate.  Once approval is obtained, the
  9  2 employer may offer an employee a termination incentive equal
  9  3 to the lesser of the employee's annual salary or $250 for each
  9  4 quarter year of covered service under PORS and IPERS if the
  9  5 employee voluntarily agrees to terminate employment and agrees
  9  6 not to return to permanent full-time or permanent part-time
  9  7 employment with the state.  This provision in the bill takes
  9  8 effect July 1, 2002, and is repealed June 30, 2003.
  9  9    The bill also establishes a sick leave and vacation
  9 10 incentive program for eligible employees of the executive
  9 11 branch of the state who are not covered by a collective
  9 12 bargaining agreement which program shall be administered by
  9 13 the department of personnel.  The bill also authorizes the
  9 14 legislative council to offer a similar program to legislative
  9 15 employees.  The bill permits eligible executive branch
  9 16 employees for which the sum of the number of years of credited
  9 17 service under IPERS or PORS and the employee's age as of
  9 18 December 31, 2002, equals or exceeds 75 to separate from
  9 19 service with the state and receive a sick leave and vacation
  9 20 incentive benefit payable in five fiscal years beginning with
  9 21 the fiscal year that ends on June 30, 2002.  The incentive
  9 22 benefit is equal to the employee's unused vacation plus the
  9 23 lesser of the employee's regular annual salary or the value of
  9 24 the employee's sick leave.  To receive the incentive benefit,
  9 25 an eligible employee must submit an application to participate
  9 26 in the program by January 31, 2002, separate from state
  9 27 employment by February 1, 2002, acknowledge the employee's
  9 28 ineligibility to return to permanent part-time or permanent
  9 29 full-time employment with the state, and waive any claims to
  9 30 unused sick leave or vacation balances otherwise payable upon
  9 31 termination of employment.  Employees who participate in the
  9 32 program, as well as the corresponding program established
  9 33 pursuant to a collective bargaining agreement, are eligible to
  9 34 continue to participate in group insurance coverage from the
  9 35 state in the same manner as employees who retire from state
 10  1 employment.  The bill also permits release of IPERS records to
 10  2 the legislative fiscal bureau and the departments of
 10  3 management, revenue and finance, and personnel for the purpose
 10  4 of monitoring and administering the sick leave and vacation
 10  5 incentive program and the corresponding program available to
 10  6 employees covered by a collective bargaining agreement that
 10  7 authorizes a similar program.  The release of records
 10  8 authority ceases as of June 30, 2002.
 10  9    The bill requires the department of personnel to submit
 10 10 reports to the general assembly concerning the operation of
 10 11 the early termination programs with an interim report due by
 10 12 March 15, 2002, and a final report by October 1, 2002.
 10 13 Updated reports for an additional four years are also
 10 14 required.
 10 15    The bill also creates two initiatives for the department of
 10 16 personnel to complete in order to enhance state government
 10 17 efficiency.  The department of personnel, in consultation with
 10 18 the department of management, is required to pursue a goal of
 10 19 increasing the ratio of employees per supervisor within
 10 20 executive branch agencies to 12 to 1 by December 31, 2002.
 10 21 The department of personnel is also required to evaluate the
 10 22 state's system of job classification for state employees to
 10 23 create technical skill-based career paths which do not require
 10 24 supervisory responsibility for advancement.  The department of
 10 25 personnel is required to issue an interim report and final
 10 26 report to the governor and general assembly concerning the
 10 27 progress made on these tasks by September 1, 2002, and
 10 28 February 1, 2003, respectively.
 10 29    The bill also provides that it is the intent of the general
 10 30 assembly that the cost-of-living increases for July 1, 2002,
 10 31 be delayed to November 1, 2002, for employees of employers
 10 32 participating in the sick leave and vacation incentive
 10 33 program.
 10 34    The bill, except for the years of service incentive
 10 35 program, takes effect upon enactment.  
 11  1 LSB 5038YC 79
 11  2 ec/cf/24
     

Text: HSB00263                          Text: HSB00265
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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