SENATE FILE 499

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO SF 309)

A BILL FOR

An Act prohibiting certain disability payments related to military service from being used as offsets within the Iowa public employees’ retirement system.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 97B.50A, subsection 5, Code 2011, is amended to read as follows:
   5.  Offset to allowance.  Notwithstanding any provisions to the contrary in state law, or any applicable contract or policy, any amounts which may be paid or payable by the employer under any workers’ compensation, unemployment compensation, employer-paid disability plan, program, or policy, or other law to a member, and any disability payments the member receives pursuant to the federal Social Security Act, 42 U.S.C. § 423 et seq., shall be offset against and payable in lieu of any retirement allowance payable pursuant to this section on account of the same disability.  However, any amounts which may be paid or payable by the employer if the employer-paid disability plan, program, or policy derives from serving in the armed services of the United States and the employee is discharged or separated from service in the armed forces under honorable conditions shall not be offset against and payable in lieu of any retirement allowance payable pursuant to this section on account of the same disability.
EXPLANATION
   This bill requires that any disability payments earned for service in the armed services of the United States not be used to offset allowances within the Iowa public employees’ retirement system (IPERS) for IPERS members who are employed in a protection occupation.