Senate Study Bill 3138
SENATE/HOUSE FILE
BY (PROPOSED DEPARTMENT OF
ADMINISTRATIVE SERVICES
BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning accrued sick leave and the conversion of sick
2 leave for state employees.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5360DP 81
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PAG LIN
1 1 Section 1. Section 70A.1, Code 2005, is amended to read as
1 2 follows:
1 3 70A.1 SALARIES == PAYMENT == VACATIONS == SICK LEAVE ==
1 4 EDUCATIONAL LEAVE.
1 5 1. Salaries specifically provided for in an appropriation
1 6 Act of the general assembly shall be in lieu of existing
1 7 statutory salaries, for the positions provided for in the Act,
1 8 and all salaries, including longevity where applicable by
1 9 express provision in the Code, shall be paid according to the
1 10 provisions of chapter 91A and shall be in full compensation of
1 11 all services, including any service on committees, boards,
1 12 commissions or similar duty for Iowa government, except for
1 13 members of the general assembly. A state employee on an
1 14 annual salary shall not be paid for a pay period an amount
1 15 which exceeds the employee's annual salary transposed into a
1 16 rate applicable to the pay period by dividing the annual
1 17 salary by the number of pay periods in the fiscal year.
1 18 Salaries for state employees covered by the overtime payment
1 19 provisions of the federal Fair Labor Standards Act shall be
1 20 established on an hourly basis.
1 21 2. All employees of the state earn two weeks' vacation per
1 22 year during the first year of employment and through the
1 23 fourth year of employment, and three weeks' vacation per year
1 24 during the fifth and through the eleventh year of employment,
1 25 and four weeks' vacation per year during the twelfth year
1 26 through the nineteenth year of employment, and four and four=
1 27 tenths weeks' vacation per year during the twentieth year
1 28 through the twenty=fourth year of employment, and five weeks'
1 29 vacation per year during the twenty=fifth year and all
1 30 subsequent years of employment, with pay. One week of
1 31 vacation is equal to the number of hours in the employee's
1 32 normal work week. Vacation allowances accrue according to
1 33 chapter 91A as provided by the rules of the department of
1 34 administrative services. The vacations shall be granted at
1 35 the discretion and convenience of the head of the department,
2 1 agency, or commission, except that an employee shall not be
2 2 granted vacation in excess of the amount earned by the
2 3 employee. Vacation leave earned under this paragraph
2 4 subsection shall not be cumulated to an amount in excess of
2 5 twice the employee's annual rate of accrual. The head of the
2 6 department, agency, or commission shall make every reasonable
2 7 effort to schedule vacation leave sufficient to prevent any
2 8 loss of entitlements.
2 9 PARAGRAPH DIVIDED. If the employment of an employee of the
2 10 state is terminated the provisions of chapter 91A relating to
2 11 the termination apply.
2 12 If said the termination of employment shall be is by reason
2 13 of the death of the employee, such the vacation allowance
2 14 shall be paid to the estate of the deceased employee if such
2 15 the estate shall be is opened for probate. If no an estate be
2 16 is not opened, the allowance shall be paid to the surviving
2 17 spouse, if any, or to the legal heirs if no spouse survives.
2 18 3. Payments authorized by this section shall be approved
2 19 by the department subject to rules of the department of
2 20 administrative services and paid from the appropriation or
2 21 fund of original certification of the claim.
2 22 4. Commencing July 1, 1979 Effective July 1, 2006,
2 23 permanent full=time and permanent part=time employees of state
2 24 departments, boards, agencies, and commissions, excluding
2 25 employees covered under a collective bargaining agreement
2 26 which provides otherwise, shall accrue sick leave at the rate
2 27 of one and one=half days for each complete month of full=time
2 28 employment as provided in this subsection which shall be
2 29 credited to the employee's sick leave account. The sick leave
2 30 accrual rate for part=time employees shall be prorated to the
2 31 accrual rate for full=time employees. The sick leave accrual
2 32 rate for each complete month of full=time employment,
2 33 excluding employees covered under a collective bargaining
2 34 agreement which provides for a different rate of accrual,
2 35 shall be as follows:
3 1 a. For employees of the state board of regents, one and
3 2 one=half days.
3 3 b. For all other employees, the rate shall be as follows:
3 4 (1) If the employee's accrued sick leave balance is seven
3 5 hundred fifty hours or less, one and one=half days.
3 6 (2) If the employee's accrued sick leave balance is one
3 7 thousand five hundred hours or less but more than seven
3 8 hundred fifty hours, one day.
3 9 (3) If the employee's accrued sick leave balance is more
3 10 than one thousand five hundred hours, one=half day.
3 11 5. Sick leave shall not accrue during any period of
3 12 absence without pay. Employees may use accrued sick leave for
3 13 physical or mental personal illness, bodily injury, medically
3 14 related disabilities, including disabilities resulting from
3 15 pregnancy and childbirth, or contagious disease, which result
3 16 in any of the following:
3 17 1. a. Which require the The employee's confinement, is
3 18 required.
3 19 2. b. Which render the The employee is rendered unable to
3 20 perform assigned duties, or.
3 21 3. c. When The performance of assigned duties would
3 22 jeopardize the employee's health or recovery.
3 23 6. Separation from state employment shall cancel Except as
3 24 provided in section 70A.23, all unused accrued sick leave in
3 25 an employee's sick leave account is canceled upon the
3 26 employee's separation from state employment. However, if an
3 27 employee is laid off and the employee is re=employed by any
3 28 state department, board, agency, or commission within one year
3 29 of the date of the layoff, accrued sick leave of the employee
3 30 shall be restored.
3 31 7. State employees, excluding state board of regents'
3 32 faculty members with nine=month appointments, and employees
3 33 covered under a collective bargaining agreement negotiated
3 34 with the public safety bargaining unit who are eligible for
3 35 accrued vacation benefits and accrued sick leave benefits, who
4 1 have accumulated thirty days of sick leave, and who do not use
4 2 sick leave during a full month of employment may elect to
4 3 accrue have up to one=half day of additional vacation added to
4 4 the employee's accrued vacation account. The accrual of
4 5 additional vacation time by added to an employee employee's
4 6 accrued vacation account for not using sick leave during a
4 7 month is in lieu of the accrual of up to one and one=half days
4 8 of sick leave for that month. The amount of additional
4 9 vacation for part=time employees shall be prorated to the
4 10 amount of additional vacation authorized for full=time
4 11 employees. The director of the department of administrative
4 12 services may adopt the necessary rules and procedures for the
4 13 implementation of this program for all state employees except
4 14 employees of the state board of regents. The state board of
4 15 regents may adopt necessary rules for the implementation of
4 16 this program for its employees.
4 17 8. The head of any department, agency, or commission,
4 18 subject to rules of the department of administrative services,
4 19 may grant an educational leave to employees for whom the head
4 20 of the department, agency, or commission is responsible
4 21 pursuant to section 70A.25 and funds appropriated by the
4 22 general assembly may be used for this purpose. The head of
4 23 the department, agency, or commission shall notify the
4 24 legislative council and the director of the department of
4 25 administrative services of all educational leaves granted
4 26 within fifteen days of the granting of the educational leave.
4 27 If the head of a department, agency, or commission fails to
4 28 notify the legislative council and the director of the
4 29 department of administrative services of an educational leave,
4 30 the expenditure of funds appropriated by the general assembly
4 31 for the educational leave shall not be allowed.
4 32 9. A specific annual salary rate or annual salary
4 33 adjustment commencing with a fiscal year shall commence on
4 34 July 1 except that if a pay period overlaps two fiscal years,
4 35 a specific annual salary rate or annual salary adjustment
5 1 shall commence with the first day of a pay period as specified
5 2 by the general assembly.
5 3 Sec. 2. Section 70A.23, Code 2005, is amended by striking
5 4 the section and inserting in lieu thereof the following:
5 5 70A.23 CREDIT FOR ACCRUED SICK LEAVE.
5 6 1. For purposes of this section:
5 7 a. "Eligible retirement system" means a retirement system
5 8 authorized under chapter 97A or 97B, including the teachers
5 9 insurance and annuity association=college retirement equities
5 10 fund (TIAA=CREF).
5 11 b. "Eligible state employee" means a state employee
5 12 eligible to receive retirement benefits under an eligible
5 13 retirement system.
5 14 2. An eligible state employee, excluding an employee
5 15 covered under a collective bargaining agreement which provides
5 16 otherwise, who retires and has applied for retirement benefits
5 17 under an eligible retirement system, or who dies while in
5 18 active employment, shall be credited with the number of
5 19 accrued days of sick leave of the employee. The employee, or
5 20 the employee's estate, shall receive a cash payment of the
5 21 monetary value of the employee's accrued sick leave balance,
5 22 not to exceed two thousand dollars. The value of the
5 23 employee's accrued sick leave balance shall be calculated by
5 24 multiplying the number of hours of accrued sick leave by the
5 25 employee's regular hourly rate of pay at the time of
5 26 retirement.
5 27 3. a. An eligible state employee, excluding an employee
5 28 covered under a collective bargaining agreement which provides
5 29 otherwise or an employee of the state board of regents, who
5 30 retires and receives a payment as provided in subsection 2
5 31 shall be entitled to elect to have the employee's banked value
5 32 of eligible accrued sick leave available to be used to pay the
5 33 state share for the employee's continuation of state group
5 34 health insurance coverage pursuant to the requirements of this
5 35 subsection.
6 1 b. An eligible state employee's banked value of eligible
6 2 accrued sick leave shall be calculated as follows:
6 3 (1) If the employee's accrued sick leave balance remaining
6 4 after payment as provided in subsection 2 is seven hundred
6 5 fifty hours or less, sixty percent of the value of the
6 6 remaining accrued sick leave balance.
6 7 (2) If the employee's accrued sick leave balance remaining
6 8 after payment as provided in subsection 2 is one thousand five
6 9 hundred hours or less but more than seven hundred fifty hours,
6 10 eighty percent of the value of the remaining accrued sick
6 11 leave balance.
6 12 (3) If the employee's accrued sick leave balance remaining
6 13 after payment as provided in subsection 2 is more than one
6 14 thousand five hundred hours, one hundred percent of the value
6 15 of the remaining accrued sick leave balance.
6 16 c. An eligible state employee's banked value of eligible
6 17 accrued sick leave shall be available to pay for that portion
6 18 of the employee's state group health insurance premium that
6 19 would otherwise be paid for by the state if the employee were
6 20 still a state employee. The benefits provided for in this
6 21 subsection have no cash value and are not transferable to any
6 22 other person, including the retiree's spouse. Payment of
6 23 state group health insurance premiums pursuant to this
6 24 subsection continues until the earliest of when the eligible
6 25 state employee's banked value of eligible accrued sick leave
6 26 is exhausted, the employee otherwise becomes eligible for
6 27 federal Medicare program benefits, or the employee dies. In
6 28 addition, an employee electing benefits pursuant to this
6 29 subsection who is reinstated or reemployed in a permanent
6 30 full=time or permanent part=time position within state
6 31 government forfeits any remaining benefits for payment of
6 32 state group health insurance benefits, and such employee is
6 33 not eligible for restoration of the unused sick leave accrued
6 34 during the employee's prior employment with the state.
6 35 4. Notwithstanding any provision of this section to the
7 1 contrary, peace officers employed within the department of
7 2 public safety and the department of natural resources that are
7 3 not covered under a collective bargaining agreement shall have
7 4 a sick leave conversion program extended to them that is
7 5 equivalent to the sick leave conversion program negotiated
7 6 under chapter 20 between the state and the state police
7 7 officers council labor union for peace officers. In addition,
7 8 an employee of the department of public safety or the
7 9 department of natural resources who has earned benefits of
7 10 payment of premiums under a collective bargaining agreement
7 11 and who becomes a manager or supervisor and is no longer
7 12 covered by the agreement shall not lose the benefits of
7 13 payment of premiums earned while covered by the agreement.
7 14 The payment shall be calculated by multiplying the number of
7 15 hours of accumulated, unused sick leave by the employee's
7 16 hourly rate of pay at the time of retirement.
7 17 EXPLANATION
7 18 This bill is submitted by the department of administrative
7 19 services pursuant to 2005 Iowa Acts, chapter 177, section 12.
7 20 That Act required the department to submit proposed changes to
7 21 the Code and administrative rules to the general assembly that
7 22 are necessary to implement the sick leave conversion program
7 23 provided by that Act.
7 24 The bill makes changes to the accrual rate of sick leave
7 25 for non=board of regents state employees not covered by a
7 26 collective bargaining agreement and also provides that these
7 27 employees are eligible, if otherwise qualified, to participate
7 28 in a sick leave conversion program that allows them to use a
7 29 portion of their accrued sick leave upon retirement for
7 30 payment of state group health insurance premiums.
7 31 The sick leave accrual provisions of Code section 70A.1 are
7 32 amended by the bill. The bill provides that state employees,
7 33 excluding employees covered under a collective bargaining
7 34 agreement which provides otherwise and employees of the state
7 35 board of regents, shall accrue sick leave at a rate dependent
8 1 on the number of hours of sick leave the employee has accrued.
8 2 If the employee has accrued 750 hours or less, the employee
8 3 accrues one and one=half days of sick leave per month. If the
8 4 employee has accrued 1,500 hours or less, but more than 750
8 5 hours, the employee accrues one day of sick leave per month.
8 6 If the employee has accrued more than 1,500 hours, the
8 7 employee accrues one=half day of sick leave per month. Under
8 8 current law, which is still applicable to employees of the
8 9 state board of regents, employees accrue one and one=half days
8 10 of sick leave per month regardless of the employee's accrued
8 11 sick leave amount.
8 12 Code section 70A.23, concerning the credit for accrued sick
8 13 leave, is amended by the bill. That section currently
8 14 provides, and remains unchanged by the bill, that state
8 15 employees, excluding employees covered under a collective
8 16 bargaining agreement which provides otherwise, who retire or
8 17 are eligible to retire and die while in active employment can
8 18 receive a cash payment of up to $2,000 for their unused sick
8 19 leave. The bill provides that eligible state employees,
8 20 excluding employees covered under a collective bargaining
8 21 agreement which provides otherwise and employees of the state
8 22 board of regents, may participate in a sick leave conversion
8 23 program. The program allows eligible state employees who
8 24 retire and continue state group health insurance coverage to
8 25 use a portion of the employee's accrued sick leave to pay that
8 26 portion of the employee's health insurance premium that would
8 27 otherwise be paid for by the state if the employee were still
8 28 a state employee. The portion available to be used to pay
8 29 premiums is calculated dependent on the number of hours of
8 30 accrued sick leave the employee has accrued and not used to
8 31 provide the $2,000 cash payment. If the employee has
8 32 remaining unused accrued sick leave of 750 hours or less, the
8 33 employee receives 60 percent of the remaining accrued sick
8 34 leave balance for payment of premiums. If the employee has
8 35 remaining unused accrued sick leave of 1,500 hours or less,
9 1 but more than 750 hours, the employee receives 80 percent of
9 2 the remaining accrued sick leave balance for payment of
9 3 premiums. If the employee has remaining unused accrued sick
9 4 leave of more than 1,500 hours, the employee receives 100
9 5 percent of the remaining accrued sick leave balance for
9 6 payment of premiums. The payment of premiums from accrued
9 7 sick leave continues until the balance of the employee's
9 8 banked value of eligible accrued sick leave is exhausted, the
9 9 retiree otherwise becomes eligible for Medicare, or the
9 10 employee dies. In addition, the bill provides that if such an
9 11 employee returns to permanent full=time or part=time state
9 12 employment, any unused sick leave balances are forfeited and
9 13 the employee is not eligible for restoration of the unused
9 14 sick leave accrued during the prior state employment.
9 15 Finally, the bill provides that peace officers employed
9 16 within the department of public safety and the department of
9 17 natural resources that are not covered under a collective
9 18 bargaining agreement shall have a sick leave conversion
9 19 program extended to them that is equivalent to the sick leave
9 20 conversion program negotiated under Code chapter 20 between
9 21 the state and the state police officers council labor union
9 22 for peace officers.
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