SF 2062 (LSB 5589SV (11) 83)

SENATE FILE 2062

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO SSB 3002)

A BILL FOR

An Act providing for a retirement incentive program for state employees and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  2010 STATE EMPLOYEE RETIREMENT INCENTIVE PROGRAM.
   1.  Definitions.  As used in this section, unless the context provides otherwise:
   a.  “Eligible employee” means an employee or qualified employee who has filed a completed application for benefits with the Iowa public employees’ retirement system created in chapter 97B in which the employee’s or qualified employee’s intended first month of entitlement, as defined in section 97B.1A, is no later than July 2010.
   b.  “Employee” means an employee, as defined by section 97B.1A, who is employed within the executive branch of this state. However, “employee” does not mean a qualified employee, an elected official, or an employee eligible for the sick leave conversion program as described in section 70A.23, subsection 4.
   c.  “Employer” means a department, agency, board, or commission of the state that employs individuals.
   d.  “Health insurance contribution benefit” means the amount representing the monthly contribution cost of an affordable group health care plan offered by the state, as determined by the department of administrative services, providing coverage to the participant and, if applicable, the participant’s spouse for the applicable period of coverage.
   e.  “Participant” means a person who timely submits an election to participate, is accepted to participate, and does participate, in the state employee retirement incentive program established under this section.
   f.  “Program” means the state employee retirement incentive program established under this section.
   ff.  “Qualified employee” means an employee of a judicial district department of correctional services, an employee in the office of a statewide elected official, or an employee of the state board of regents if the board elects to participate in the program.
   g.  “Years of service incentive benefit” means an amount equal to the entire value of an eligible employee’s accumulated but unused vacation plus, for eligible employees with at least ten years of state employment service, one thousand dollars for each year of state employment service up to a maximum of twenty-five years of state employment service. For purposes of this paragraph, “state employment service” means service, as defined in section 97B.1A, for which the employer is the state.
   2.  Program eligibility.  To become a participant in the program, an eligible employee shall do all of the following:
   a.  Submit by April 15, 2010, a written application, on forms prescribed by the department of administrative services, seeking participation in the program.
   b.  Acknowledge in writing the eligible employee’s agreement to voluntarily terminate employment in exchange for the state employee retirement incentive program as provided in this section.
   c.  Agree to waive all rights to file suit against the state of Iowa, including all of its departments, agencies, and other subdivisions, based on state or federal claims arising out of the employment relationship.
   d.  Acknowledge, in writing, that participation in the program waives any right to accept any employment with the state other than as an elected official on or after the date the eligible employee separates from employment.
   e.  Agree to separate from employment with the state no later than June 1, 2010.
   3.  Participant acceptance.  An eligible employee shall be accepted into the program if the department of administrative services determines that the eligible employee meets the requirements to be eligible to participate in the program.
   4.  Program benefits.  Upon acceptance to participate in the program and separation from employment with the state no later than May 28, 2010, a participant shall receive the following benefits:
   a.  During September 2010, and each September thereafter for a total of five years, the state shall pay to the participant, or the participant’s beneficiary, an amount equal to twenty percent of the years of service incentive benefit for that participant. Receipt of a years of service incentive benefit pursuant to this section by a participant shall be in lieu of receiving a payment for the participant’s accumulated but unused vacation upon termination of employment.
   b.  For the period of time commencing with the first month in which a participant is ineligible for or exhausts the participant’s available remaining value of sick leave used to pay the state share for the participant’s continuation of state group health insurance coverage as provided in section 70A.23, subsection 3, and ending five years from the date the participant separates from employment with the state as provided in this section, the participant, or the participant’s surviving spouse, shall be entitled to receive a health insurance contribution benefit to be used by the participant or the participant’s beneficiary to pay the cost for eligible state group health insurance. The department of administrative services shall determine what health insurance plans constitute eligible state group health insurance for purposes of this paragraph “b”.
   5.  Vacancies and reemployment.
   a.  An employer shall not fill a position vacancy created as a result of participation in the program by an employee without approval from the department of management.
   b.  An employer shall not offer permanent part-time employment, permanent full-time employment, temporary employment, or retention as an independent contractor to a participant.
   c.  This section shall not preclude a participant from membership on a board or commission.
   6.  Program administration and reporting.
   a.  The department of administrative services shall administer the program and shall adopt administrative rules to administer the program. The department of administrative services and the department of management may adopt rules on an emergency basis under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to implement this section and the rules shall be effective immediately upon filing unless a later date is specified in the rules.
   b.  Records of the Iowa public employees’ retirement system shall be released for the purposes of administering and monitoring the program subject to the requirements of section 97B.17, subsection 5.
   c.  The department of administrative services, in collaboration with the department of management, shall present an interim report to the general assembly, including copies to the legislative services agency and the fiscal committee of the legislative council, by October 1, 2010, concerning the operation of the program. The department shall also submit an annual update concerning the program by October 1 of each year for four years, commencing October 1, 2011. The reports shall include information concerning the number of program participants, the cost of the program including any payments made to participants, the number of state employment positions not filled pursuant to the program, and the number of positions vacated by a program participant that have been refilled.
   7.  Legislative and judicial branch employees.
   a.  The legislative council may provide a retirement incentive program for employees of the legislative branch consistent with the program provided in this section for executive branch employees. If the legislative council provides an incentive program, the legislative council shall collaborate with the department of administrative services to establish the program as required under this section as nearly as identical as possible to the program provided executive branch employees under this section. The program provided pursuant to this paragraph “a” shall establish the same time guidelines and benefit calculations as provided under the program for executive branch employees.
   b.  The supreme court may provide a retirement incentive program for employees of the judicial branch consistent with the program provided in this section for executive branch employees. If the supreme court provides an incentive program, the supreme court shall collaborate with the department of administrative services to establish the program as required under this section as nearly as identical as possible to the program provided executive branch employees under this section. The program provided pursuant to this paragraph “b” shall establish the same time guidelines and benefit calculations as provided under the program for executive branch employees.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill establishes a state employee retirement incentive program.
   The bill establishes a state employee retirement incentive program for eligible employees of the executive branch of the state, including employees in the offices of statewide elective officials, employees of a judicial district department of correctional services of the department of justice, and if the board of regents approves, employees of the state board of regents and its institutions. The bill permits, but does not require, either the legislative branch or the judicial branch to establish an early retirement program consistent with the program provided to executive branch employees in this bill. An elected official, or an employee eligible for an enhanced sick leave conversion program under Code section 70A.23(4) are excluded from participating in the program. The program shall be administered by the department of administrative services. The bill permits eligible executive branch employees who have completed an application for benefits under the Iowa public employees’ retirement system (IPERS) with an intended first month of entitlement of no later than July 2010 to separate from service with the state and receive a benefit under the program. To receive the incentive benefit, an eligible employee must submit an application to participate in the program by April 15, 2010, be accepted to participate in the program by the departments of administrative services and management, separate from state employment by May 28, 2010, and acknowledge the employee’s ineligibility to return to employment with the state.
   The bill provides that the benefit provided to an eligible employee who participates in the program is an amount equal to the entire value of the eligible employee’s accumulated but unused vacation plus, if the employee has at least 10 years of state employment, $1,000 for each year of state employment up to 25 years. The bill provides that this amount shall be payable in five equal installments each year during September beginning in September 2010. In addition, the bill provides that a participant in the program, or the participant’s surviving spouse, shall receive a health insurance premium benefit to pay the premium cost for eligible state group health insurance for five years following the participant’s termination from state employment. However, the bill provides that a participant shall receive the health insurance premium benefit only when the participant is no longer eligible for, or exhausts, the participant’s available remaining value of sick leave used to pay the state share for the participant’s continuation of state group health insurance coverage as provided in Code section 70A.23, subsection 3.
   The bill further provides that an employer shall not fill vacancies created by employees participating in the program except upon approval of the department of management. The requirement that the department of management approve filling a vacancy does not apply to vacancies within the offices of statewide elective officials, a judicial district department of correctional services, the state board of regents and its institutions, or the judicial or legislative branches. In addition, the bill provides that an employer shall not hire a participant in the program for any employment.
   The bill takes effect upon enactment.