S.F. _____ H.F. _____ Section 1. 2010 STATE EMPLOYEE RETIREMENT INCENTIVE 1 PROGRAM. 2 1. Definitions. As used in this section, unless the context 3 provides otherwise: 4 a. “Eligible employee” means an employee who has filed 5 a completed application for benefits with the Iowa public 6 employees’ retirement system created in chapter 97B in which 7 the employee’s intended first month of entitlement, as defined 8 in section 97B.1A, is no later than July 2010. 9 b. “Employee” means an employee, as defined by section 10 97B.1A, who is employed within the executive branch of this 11 state, including an employee of the department of justice. 12 However, “employee” does not mean an employee of a judicial 13 district department of correctional services, an employee of 14 the state board of regents, an elected official, or an employee 15 eligible for the sick leave conversion program as described in 16 section 70A.23, subsection 4. 17 c. “Employer” means a department, agency, board, or 18 commission within the executive branch of the state that 19 employs individuals. 20 d. “Health insurance premium benefit” means the amount 21 representing the monthly premium cost of an affordable group 22 health care plan offered by the state, as determined by the 23 department of administrative services, providing coverage to 24 the participant and, if applicable, the participant’s spouse 25 for the applicable period of coverage. 26 e. “Participant” means a person who timely submits an 27 election to participate, is accepted to participate, and does 28 participate, in the state employee retirement incentive program 29 established under this section. 30 f. “Program” means the state employee retirement incentive 31 program established under this section. 32 g. “Years of service incentive benefit” means an amount equal 33 to the entire value of an eligible employee’s accumulated but 34 unused vacation plus, for eligible employees with at least ten 35 -1- LSB 5589XL (7) 83 ec/rj 1/ 5

S.F. _____ H.F. _____ years of state employment, one thousand dollars for each year 1 of state employment up to a maximum of twenty-five years of 2 state employment. 3 2. Program eligibility. To become a participant in the 4 program, an eligible employee shall do all of the following: 5 a. Submit by April 15, 2010, a written application, on 6 forms prescribed by the department of administrative services, 7 seeking participation in the program. 8 b. Acknowledge in writing the employee’s agreement to 9 voluntarily terminate employment in exchange for the state 10 employee retirement incentive program as provided in this 11 section. 12 c. Agree to waive all rights to file suit against the state 13 of Iowa, including all of its departments, agencies, and other 14 subdivisions, based on state or federal claims arising out of 15 the employment relationship. 16 d. Acknowledge, in writing, that participation in the 17 program waives any right to accept any employment with the 18 state other than as an elected official on or after the date 19 the eligible employee separates from employment. 20 e. Agree to separate from employment with the state no later 21 than June 1, 2010. 22 3. Participant acceptance. An eligible employee shall 23 be accepted to participate in the program if the following 24 conditions are met: 25 a. The department of administrative services determines that 26 the eligible employee meets the requirements to be eligible to 27 participate in the program. 28 b. The department of management determines that authorizing 29 the eligible employee to participate in the program will 30 generate sufficient savings to the state based upon criteria 31 established by the department. 32 4. Program benefits. Upon acceptance to participate in the 33 program and separation from employment with the state no later 34 than June 1, 2010, a participant shall receive the following 35 -2- LSB 5589XL (7) 83 ec/rj 2/ 5

S.F. _____ H.F. _____ benefits: 1 a. During September 2010, and each September thereafter for 2 a total of five years, the state shall pay to the participant, 3 or the participant’s beneficiary, an amount equal to twenty 4 percent of the years of service incentive benefit for that 5 participant. 6 b. For the period of time commencing with the first month 7 in which a participant is ineligible for or exhausts the 8 participant’s available remaining value of sick leave used 9 to pay the state share for the participant’s continuation of 10 state group health insurance coverage as provided in section 11 70A.23, subsection 3, and ending five years from the date 12 the participant separates from employment with the state as 13 provided in this section, the participant, or the participant’s 14 surviving spouse, shall be entitled to receive a health 15 insurance premium benefit to be used by the participant or the 16 participant’s beneficiary to pay the premium cost for eligible 17 state group health insurance. The department of administrative 18 services shall determine what health insurance plans constitute 19 eligible state group health insurance for purposes of this 20 paragraph “b” . 21 5. Vacancies and reemployment. 22 a. An employer shall not fill a position vacancy created 23 as a result of employee participation in the program without 24 approval from the department of management. 25 b. An employer shall not offer permanent part-time 26 employment, permanent full-time employment, or temporary 27 employment to a participant. 28 6. Program administration. 29 a. The department of administrative services shall 30 administer the program and shall adopt administrative rules 31 to administer the program. The department of administrative 32 services and the department of management may adopt rules on an 33 emergency basis under section 17A.4, subsection 3, and section 34 17A.5, subsection 2, paragraph “b” , to implement this section 35 -3- LSB 5589XL (7) 83 ec/rj 3/ 5

S.F. _____ H.F. _____ and the rules shall be effective immediately upon filing unless 1 a later date is specified in the rules. 2 b. Records of the Iowa public employees’ retirement system 3 shall be released for the purposes of administering and 4 monitoring the program subject to the requirements of section 5 97B.17, subsection 5. 6 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 7 immediate importance, takes effect upon enactment. 8 EXPLANATION 9 This bill establishes a state employee retirement incentive 10 program. 11 The bill establishes a state employee retirement incentive 12 program for eligible employees of the executive branch of 13 the state, including employees of the department of justice 14 (office of attorney general). Employees of a judicial district 15 department of correctional services, the state board of 16 regents, an elected official, or an employee eligible for an 17 enhanced sick leave conversion program under Code section 18 70A.23(4) are excluded from participating in the program. 19 The program shall be administered by the department of 20 administrative services. The bill permits eligible executive 21 branch employees who have completed an application for benefits 22 under the Iowa public employees’ retirement system (IPERS) with 23 an intended first month of entitlement of no later than July 24 2010 to separate from service with the state and receive a 25 benefit under the program. To receive the incentive benefit, 26 an eligible employee must submit an application to participate 27 in the program by April 15, 2010, be accepted to participate 28 in the program by the departments of administrative services 29 and management, separate from state employment by June 1, 30 2010, and acknowledge the employee’s ineligibility to return 31 to employment with the state. 32 The bill provides that the benefit provided to an eligible 33 employee who participates in the program is an amount equal to 34 the entire value of the eligible employee’s accumulated but 35 -4- LSB 5589XL (7) 83 ec/rj 4/ 5

S.F. _____ H.F. _____ unused vacation plus, if the employee has at least 10 years 1 of state employment, $1,000 for each year of state employment 2 up to 25 years. The bill provides that this amount shall be 3 payable in five equal installments each year during September 4 beginning in September 2010. In addition, the bill provides 5 that a participant in the program, or the participant’s 6 surviving spouse, shall receive a health insurance premium 7 benefit to pay the premium cost for eligible state group 8 health insurance for five years following the participant’s 9 termination from state employment. However, the bill provides 10 that a participant shall receive the health insurance premium 11 benefit only when the participant is no longer eligible for, 12 or exhausts, the participant’s available remaining value of 13 sick leave used to pay the state share for the participant’s 14 continuation of state group health insurance coverage as 15 provided in Code section 70A.23, subsection 3. 16 The bill further provides that an employer shall not fill 17 vacancies created by employees participating in the program 18 except upon approval of the department of management. In 19 addition, the bill provides that an employer shall not hire a 20 participant in the program for any employment. 21 The bill takes effect upon enactment. 22 -5- LSB 5589XL (7) 83 ec/rj 5/ 5