Text: HSB00580 Text: HSB00582 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 97A.6, subsection 6, paragraph c, Code 1 2 2001, is amended to read as follows: 1 3 c. Upon retirement for accidental disability on or after 1 4 July 1, 1998, a member shall receive an accidental disability 1 5 retirement allowance which shall consist of a pension in an 1 6 amount equal to the greater of sixty percent of the member's 1 7 average final compensation or the retirement allowance that 1 8 the member would receive under subsection 2 if the memberhas1 9 had attained fifty-five years of age. 1 10 Sec. 2. NEW SECTION. 97A.14A LIABILITY OF THIRD PARTIES 1 11 – SUBROGATION. 1 12 1. If, on or after July 1, 2002, a member receives an 1 13 injury or dies for which benefits are payable under section 1 14 97A.6, subsection 3, 5, 8, or 9, or section 97A.14, and if the 1 15 injury or death is caused under circumstances creating a legal 1 16 liability for damages against a third party other than the 1 17 system, the system is subrogated to the rights of the member 1 18 or the member's beneficiary entitled to receive a death 1 19 benefit and may maintain an action for damages against the 1 20 third party for lost earnings and lost earnings capacity. If 1 21 the system recovers damages in the action, the court shall 1 22 enter judgment for distribution of the recovery as follows: 1 23 a. A sum sufficient to repay the system for the amount of 1 24 such benefits actually paid by the system up to the time of 1 25 the entering of the judgment. 1 26 b. A sum sufficient to pay the system the present worth, 1 27 computed at the interest rate provided in section 535.3 for 1 28 court judgments and decrees, of the future payments of such 1 29 benefits, for which the system is liable, but the sum is not a 1 30 final adjudication of the future payments which the member is 1 31 entitled to receive. 1 32 c. A sum sufficient to repay the system for the costs and 1 33 expenses of maintaining the action. 1 34 d. Any balance remaining after the payments and repayments 1 35 are made under paragraphs "a" through "c" shall be paid to the 2 1 injured member, or the beneficiary under section 97A.6, 2 2 subsection 8 or 9, whichever is applicable. 2 3 2. If the system, after receiving written notice of the 2 4 third-party liability, declines in writing to maintain an 2 5 action against the third party or fails to maintain an action 2 6 within one hundred eighty days of receiving written notice of 2 7 the third-party liability, the member, the member's estate, or 2 8 the legal representative of the member or the member's estate 2 9 may maintain an action for damages against the third party. 2 10 If such an action is commenced, the plaintiff member, estate, 2 11 or representative shall serve a copy of the original notice 2 12 upon the system not less than ten days before the trial of the 2 13 action, but a failure to serve the notice does not prejudice 2 14 the rights of the system, and the following rights and duties 2 15 ensue: 2 16 a. The system shall be indemnified out of the recovery of 2 17 damages to the extent of benefit payments paid or awarded by 2 18 the system, with legal interest, except that the plaintiff 2 19 member's or estate's attorney fees may be first allowed by the 2 20 district court. For purposes of this paragraph, "benefit 2 21 payments paid or awarded" means the sum of the following 2 22 amounts: 2 23 (1) The amount of benefits actually paid by the system up 2 24 to the time of the entering of the judgment. 2 25 (2) The present worth, computed at the interest rate 2 26 provided in section 535.3 for court judgments and decrees, of 2 27 the future payments of such benefits, for which the system is 2 28 liable, but the sum is not a final adjudication of the future 2 29 payments which the member is entitled to receive. 2 30 b. The system has a lien on the damage claim against the 2 31 third party and on any judgment on the damage claim for 2 32 benefits for which the system is liable. In order to continue 2 33 and preserve the lien, the system shall file a notice of the 2 34 lien within thirty days after receiving a copy of the original 2 35 notice in the office of the clerk of the district court in 3 1 which the action is filed. 3 2 3. Before a settlement is effective between the system and 3 3 a third party who is liable for an injury or death, the member 3 4 or beneficiary must consent in writing to the settlement; and 3 5 if the settlement is between the member or the member's estate 3 6 and a third party, the system must consent in writing to the 3 7 settlement; or on refusal to consent, in either case, the 3 8 district court in the county in which either the employer of 3 9 the member or the system is located must consent in writing to 3 10 the settlement. 3 11 4. For purposes of subrogation under this section, a 3 12 payment made to an injured member, a member's estate, or the 3 13 legal representative of the member or member's estate, by or 3 14 on behalf of a third party or the third party's principal or 3 15 agent, who is liable for, connected with, or involved in 3 16 causing the injury or death of the member, shall be considered 3 17 paid as damages because the injury or death was caused under 3 18 circumstances creating a legal liability against the third 3 19 party, whether the payment is made under a covenant not to 3 20 sue, compromise settlement, denial of liability, or is 3 21 otherwise made. 3 22 Sec. 3. Section 97A.17, subsection 2, Code 2001, is 3 23 amended to read as follows: 3 24 2. Commencing July 1, 1996, a vested member of an eligible 3 25 retirement system who terminates employment covered by one 3 26 eligible retirement system and, withinsixty daysone year, 3 27 commences employment covered by the other eligible retirement 3 28 system may elect to transfer the average accrued benefit 3 29 earned from the former system to the current system. The 3 30 member shall file an application with the current system for 3 31 transfer of the average accrued benefit within ninety days of 3 32 the commencement of employment with the current system. 3 33 Sec. 4. Section 411.31, subsection 2, Code 2001, is 3 34 amended to read as follows: 3 35 2. Commencing July 1, 1996, a vested member of an eligible 4 1 retirement system who terminates employment covered by one 4 2 eligible retirement system and, withinsixty daysone year, 4 3 commences employment covered by the other eligible retirement 4 4 system may elect to transfer the average accrued benefit 4 5 earned from the former system to the current system. The 4 6 member shall file an application with the current system for 4 7 transfer of the average accrued benefit within ninety days of 4 8 the commencement of employment with the current system. 4 9 Sec. 5. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 4 10 1. Section 1 of this Act, amending section 97A.6, 4 11 subsection 6, being deemed of immediate importance, takes 4 12 effect upon enactment and is retroactively applicable to July 4 13 1, 1998. 4 14 2. Sections 3 and 4 of this Act, amending sections 97A.17 4 15 and 411.31, take effect upon enactment and are retroactively 4 16 applicable to July 1, 1996. 4 17 EXPLANATION 4 18 This bill concerns the public safety peace officers' 4 19 retirement, accident, and disability retirement system (PORS). 4 20 Code section 97A.6, subsection 6, is amended to provide 4 21 that a member retiring under accidental disability prior to 4 22 age 55 can receive credit for years of service over 22 years 4 23 of service. This amendment takes effect upon enactment and is 4 24 retroactively applicable to July 1, 1998. 4 25 New Code section 97A.14A permits the system to maintain an 4 26 action to recover benefits paid when the actions of a third 4 27 party resulted in benefits being payable under the retirement 4 28 system based on an injury to or death of a member occurring on 4 29 or after July 1, 2002. The section provides that the system 4 30 is subrogated to the rights of a member's beneficiary who 4 31 receives a death benefit for the death of a member in which a 4 32 third party is liable. In addition, the section provides that 4 33 the system is entitled to bring an action against a liable 4 34 third party for lost earnings and lost earnings capacity prior 4 35 to the member or the member's estate having the right to seek 5 1 recovery. The new section provides that if the system 5 2 recovers damages, the court shall enter judgment in an amount 5 3 for the system sufficient to pay the system for any past and 5 4 future benefits for which the system is liable and to pay the 5 5 system the costs of the action. The remainder of any damages 5 6 recovered shall be awarded to the member or member's 5 7 beneficiary or estate. The new section further provides that 5 8 the member or member's estate may maintain an action only if 5 9 the system declines in writing to maintain an action or fails 5 10 to maintain an action within 180 days of receiving notice of 5 11 the potential third-party liability. The new language is 5 12 similar to the subrogation rights provided by the statewide 5 13 fire and police retirement system under Code chapter 411. 5 14 Code sections 97A.17 and 411.31 are amended to extend the 5 15 time deadline from 60 days to one year by which a member of 5 16 one of the two retirement systems can commence working under 5 17 the other retirement system after terminating employment under 5 18 the former system and still permit the benefit earned under 5 19 the former retirement system to be transferred to the current 5 20 retirement system. These changes take effect upon enactment 5 21 and are retroactively applicable to July 1, 1996. 5 22 LSB 5062DP 79 5 23 ec/sh/8
Text: HSB00580 Text: HSB00582 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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