House Study Bill 514
HOUSE FILE
BY (PROPOSED COMMITTEE ON
STATE GOVERNMENT BILL
BY CHAIRPERSON ELGIN)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the statewide fire and police retirement
2 system.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5864HC 81
5 ec/gg/14
PAG LIN
1 1 Section 1. Section 411.1, subsection 12, Code 2005, is
1 2 amended to read as follows:
1 3 12. "Member in good standing" means a member in service
1 4 who is not subject to removal by the employing city of the
1 5 member pursuant to section 400.18 or 400.19, or other
1 6 comparable process, and who is not the subject of an
1 7 investigation that could lead to such removal. A person who
1 8 is restored to active service for purposes of applying for a
1 9 pension under this chapter is not a member in good standing.
1 10 Sec. 2. Section 411.5, subsection 6, Code 2005, is amended
1 11 by adding the following new paragraph:
1 12 NEW PARAGRAPH. d. Records containing financial or
1 13 commercial information that relates to the investment of
1 14 retirement system funds if the disclosure of such information
1 15 could result in a loss to the retirement system or to the
1 16 provider of the information are not public records for the
1 17 purposes of chapter 22.
1 18 Sec. 3. Section 411.5, Code 2005, is amended by adding the
1 19 following new subsection:
1 20 NEW SUBSECTION. 15. CLOSED SESSIONS. In addition to the
1 21 reasons provided in section 21.5, subsection 1, the board may
1 22 hold a closed session pursuant to the requirements of section
1 23 21.5 of that portion of a board meeting in which financial or
1 24 commercial information is provided to or discussed by the
1 25 board if the board determines that disclosure of such
1 26 information could result in a loss to the retirement system or
1 27 to the provider of the information.
1 28 Sec. 4. Section 411.6, subsection 5, paragraph a, Code
1 29 2005, is amended to read as follows:
1 30 a. Upon application to the system, of a member in good
1 31 standing or of the chief of the police or fire departments,
1 32 respectively, any member in good standing who has become
1 33 totally and permanently incapacitated for duty as the natural
1 34 and proximate result of an injury or disease incurred in or
1 35 aggravated by the actual performance of duty at some definite
2 1 time and place, or while acting pursuant to order, outside of
2 2 the city by which the member is regularly employed, shall be
2 3 retired by the system if the medical board certifies that the
2 4 member is mentally or physically incapacitated for further
2 5 performance of duty, that the incapacity is likely to be
2 6 permanent, and that the member should be retired. However, if
2 7 a person's membership in the system first commenced on or
2 8 after July 1, 1992, the member shall not be eligible for
2 9 benefits with respect to a disability which would not exist,
2 10 but for a medical condition that was known to exist on the
2 11 date that membership commenced. A medical condition shall be
2 12 deemed to have been known to exist on the date that membership
2 13 commenced if the medical condition is reflected in any record
2 14 or document completed or obtained in accordance with the
2 15 system's medical protocols pursuant to section 400.8, or in
2 16 any other record or document obtained pursuant to an
2 17 application for disability benefits from the system, if such
2 18 record or document existed prior to the date membership
2 19 commenced. A member who is denied a benefit under this
2 20 subsection, by reason of a finding by the medical board that
2 21 the member is not mentally or physically incapacitated for the
2 22 further performance of duty, shall be entitled to be restored
2 23 to active service in the same position held immediately prior
2 24 to the application for disability benefits.
2 25 Sec. 5. Section 411.6, subsection 5, paragraph b, Code
2 26 2005, is amended to read as follows:
2 27 b. If a member in service or the chief of the police or
2 28 fire departments becomes incapacitated for duty as a natural
2 29 or proximate result of an injury or disease incurred in or
2 30 aggravated by the actual performance of duty at some definite
2 31 time or place or while acting, pursuant to order, outside the
2 32 city by which the member is regularly employed, the member,
2 33 upon being found to be temporarily incapacitated following a
2 34 medical examination as directed by the city, is entitled to
2 35 receive the member's full pay and allowances from the city's
3 1 general fund or trust and agency fund until re=examined as
3 2 directed by the city and found to be fully recovered or until
3 3 the city determines that the member is likely to be
3 4 permanently disabled. If the temporary incapacity of a member
3 5 continues more than sixty days, or if the city expects the
3 6 incapacity to continue more than sixty days, the city shall
3 7 notify the system of the temporary incapacity. Upon
3 8 notification by a city, the system may refer the matter to the
3 9 medical board for review and consultation with the member's
3 10 treating physician during the temporary incapacity. Except as
3 11 provided by this paragraph, the board of trustees of the
3 12 statewide system has no jurisdiction over these matters until
3 13 the city determines that the disability is likely to be
3 14 permanent.
3 15 Sec. 6. Section 411.6, subsection 8, paragraph c,
3 16 subparagraph (3), Code 2005, is amended to read as follows:
3 17 (3) If there is no surviving spouse or child, then the
3 18 member's dependent father or mother, or both, as the system
3 19 determines, to continue until remarriage or death.
3 20 Sec. 7. Section 411.6, subsection 9, paragraph b,
3 21 subparagraph (1), subparagraph subdivision (c), Code 2005, is
3 22 amended to read as follows:
3 23 (c) If the member's designated beneficiary is the member's
3 24 dependent father or mother, or both, then to the father or
3 25 mother, or both, in equal shares, to continue until remarriage
3 26 or death.
3 27 Sec. 8. Section 411.6, subsection 9, paragraph b,
3 28 subparagraph (2), subparagraph subdivision (c), Code 2005, is
3 29 amended to read as follows:
3 30 (c) If there is no surviving spouse or child, then to the
3 31 member's dependent father or mother, or both, in equal shares,
3 32 to continue until remarriage or death.
3 33 Sec. 9. Section 411.23, Code 2005, is amended by adding
3 34 the following new subsection:
3 35 NEW SUBSECTION. 3. a. Commencing July 1, 2006, a
4 1 member's contributions shall be refunded to the member by the
4 2 system if the following conditions are met:
4 3 (1) The member was a member of the system for less than
4 4 four years.
4 5 (2) The member terminated service four or more years prior
4 6 to the date of the refund.
4 7 (3) The amount to be refunded does not exceed five
4 8 thousand dollars, or such other amount as may be established
4 9 under section 401(a) of the Internal Revenue Code.
4 10 b. In the event a refund is made in accordance with this
4 11 subsection without the member's consent, the system shall pay
4 12 the distribution in a direct rollover to an individual
4 13 retirement plan designated by the system unless the member
4 14 elects to have such distribution paid directly to an eligible
4 15 retirement plan specified by the member in a direct rollover
4 16 in accordance with section 411.6B or elects to receive the
4 17 distribution directly. The system may, by rule, implement a
4 18 de minimus exception to the automatic rollover provision of
4 19 this subsection, subject to the limitations of the Internal
4 20 Revenue Code and any applicable internal revenue service
4 21 regulations.
4 22 EXPLANATION
4 23 This bill makes changes to the statewide fire and police
4 24 retirement system created in Iowa Code chapter 411.
4 25 The definition of "member in good standing" in Code section
4 26 411.1 is amended to provide that a person who is restored to
4 27 active service for purposes of applying for a pension is not a
4 28 member in good standing.
4 29 Code section 411.5, governing the administration of the
4 30 system, is amended to provide that investment=related records
4 31 of the system are not to be considered public records subject
4 32 to disclosure under Code chapter 22 if the disclosure could
4 33 result in a loss to the system or the provider of the
4 34 information. In addition, the section is amended to permit
4 35 the board governing the system to go into closed session to
5 1 discuss financial or commercial information if the disclosure
5 2 of such information may result in a loss to the system or to
5 3 the provider of the information.
5 4 Code section 411.6, subsection 5, concerning the
5 5 determination of an accidental disability retirement is
5 6 amended. Current law precludes the member from receiving
5 7 disability benefits for a condition known to exist prior to
5 8 the member's entrance to the system. The bill provides that
5 9 the existence of a medical condition can be established if it
5 10 is reflected in any document obtained through the system's
5 11 medical protocol or through the disability application process
5 12 and in existence prior to the date membership commenced.
5 13 Code section 411.6, subsection 5, is further amended to
5 14 allow cities to pay a member who is temporarily disabled due
5 15 to a work injury or illness the worker's full pay and
5 16 allowances from the city's trust and agency funds or the
5 17 city's general fund. Current law only allows this payment
5 18 from the city's general fund.
5 19 Code section 411.6 is further amended concerning the
5 20 eligibility of a dependent parent of a deceased member to
5 21 receive death benefits. Under current law, the surviving
5 22 dependent mother or father of a deceased member can continue
5 23 to receive a death benefit, if otherwise eligible, until the
5 24 dependent mother or father dies or remarries. The bill
5 25 eliminates the provision terminating the death benefit if the
5 26 dependent mother or father remarries.
5 27 Code section 411.23 is amended to authorize the system to
5 28 automatically disburse a refund of contributions for certain
5 29 members who have left service under the system. The bill
5 30 provides for this automatic disbursement if the contribution
5 31 amount to be refunded is less than $5,000 or the amount the
5 32 internal revenue service allows and the recipient is a
5 33 terminated, nonvested member of the system who has been absent
5 34 from active membership for four years or more. The bill
5 35 provides that the refunded amount will be distributed to an
6 1 individual retirement plan designated by the system unless the
6 2 member elects to receive the distribution directly or as a
6 3 rollover to an eligible retirement plan.
6 4 LSB 5864HC 81
6 5 ec:rj/gg/14