Senate Study Bill 1157 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act relating to the statewide fire and police retirement 1 system. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2184XC (3) 84 aw/sc
S.F. _____ Section 1. Section 400.8, subsection 1, Code 2011, is 1 amended to read as follows: 2 1. The commission, when necessary under the rules, 3 including minimum and maximum age limits, which shall be 4 prescribed and published in advance by the commission and 5 posted in the city hall, shall hold examinations for the 6 purpose of determining the qualifications of applicants 7 for positions under civil service, other than promotions, 8 which examinations shall be practical in character and shall 9 relate to matters which will fairly test the mental and 10 physical ability of the applicant to discharge the duties of 11 the position to which the applicant seeks appointment. The 12 physical examination of applicants for appointment to the 13 positions of police officer, police matron, or fire fighter 14 shall be held in accordance with medical protocols established 15 by the board of trustees of the fire and police retirement 16 system established by section 411.5 and shall be conducted 17 in accordance with the directives of the board of trustees. 18 However, the prohibitions of section 216.6, subsection 1 , 19 paragraph “d” , regarding tests for the presence of the antibody 20 to the human immunodeficiency virus shall not apply to such 21 examinations. The board of trustees may change the medical 22 protocols at any time the board so determines. The physical 23 examination of an applicant for the position of police officer, 24 police matron, or fire fighter shall be conducted after a 25 conditional offer of employment has been made to the applicant. 26 An applicant shall not be discriminated against on the basis 27 of height, weight, sex, or race in determining physical or 28 mental ability of the applicant. Reasonable rules relating to 29 strength, agility, and general health of applicants shall be 30 prescribed. The costs of the physical examination required 31 under this subsection shall be paid from the trust and agency 32 fund of the city. In the event of a conflict between the 33 medical protocols established under this section and the 34 minimum entrance requirements of the Iowa law enforcement 35 -1- LSB 2184XC (3) 84 aw/sc 1/ 6
S.F. _____ academy established under section 80B.11, the medical protocols 1 established under this section shall control. 2 Sec. 2. Section 411.1, Code 2011, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 23. “Vested member” means a member who has 5 become eligible to receive monthly retirement benefits upon the 6 member’s retirement as the result of either age or years of 7 service. A member must meet one of the following requirements 8 to be vested: 9 a. Complete at least four years of service. 10 b. Attain the age of fifty-five while performing membership 11 service. 12 Sec. 3. Section 411.5, subsection 12, paragraph e, Code 13 2011, is amended to read as follows: 14 e. Notwithstanding any provision of this chapter to the 15 contrary, a member’s service retirement allowance shall 16 commence on or before the later of the following: all benefits 17 under this chapter shall commence no later than the required 18 beginning date, as set forth in section 401(a)(9) of the 19 Internal Revenue Code and shall also comply with the required 20 minimum distribution provisions of that section. 21 (1) April 1 of the calendar year following the calendar year 22 in which the member attains the age of seventy and one-half 23 years. 24 (2) April 1 of the calendar year following the calendar year 25 in which the member retires. 26 Sec. 4. Section 411.6, subsection 1, paragraph b, Code 2011, 27 is amended to read as follows: 28 b. Any member in service who has been a member of the 29 retirement system four or more years and whose employment is 30 terminated prior to the member’s retirement, other than by 31 death or disability, shall upon attaining retirement age, 32 receive a service retirement allowance of four twenty-seconds 33 of the retirement allowance the member would receive at 34 retirement if the member’s employment had not been terminated, 35 -2- LSB 2184XC (3) 84 aw/sc 2/ 6
S.F. _____ and an additional one twenty-second of such retirement 1 allowance for each additional year of service not exceeding 2 twenty-two years of service. The amount of the retirement 3 allowance shall be calculated in the manner provided in this 4 paragraph using the average final compensation at the time of 5 termination of employment. Any member in service who achieved 6 vested status based on attainment of age fifty-five and who 7 has less than four years of service shall, upon termination 8 of service and application to the system, receive a service 9 retirement allowance equal to one twenty-second of the 10 retirement allowance the member would have received based on 11 twenty-two years of service, multiplied by the number of years 12 of service credited to the member. 13 Sec. 5. Section 411.6, subsection 8, paragraph c, 14 subparagraph (3), Code 2011, is amended by striking the 15 subparagraph. 16 Sec. 6. Section 411.9, Code 2011, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 3A. In the case of a member’s death or 19 disability occurring on or after January 1, 2007, if the member 20 is unable to resume membership service as a result of death 21 or disability while performing qualified military service 22 as defined in section 414(u) of the Internal Revenue Code, 23 the member shall be treated as if the member had returned to 24 membership service and the period of military service shall be 25 treated as membership service. 26 NEW SUBSECTION . 3B. In the case of a member’s disability 27 incurred while performing qualified military service as defined 28 in section 414(u) of the Internal Revenue Code, the member 29 shall be treated as a member in good standing, whether or 30 not the member returns to membership service, and shall be 31 permitted to file an application for a disability pension with 32 the system. The disability shall be treated as an ordinary 33 disability pursuant to section 411.6, subsection 4. 34 Sec. 7. Section 411.23, subsection 1, Code 2011, is amended 35 -3- LSB 2184XC (3) 84 aw/sc 3/ 6
S.F. _____ to read as follows: 1 1. Commencing July 1, 1990, if an active member, in service 2 on or after that date, terminates service, other than by death 3 or disability, the member may elect to withdraw the member’s 4 contributions under section 411.8, subsection 1 , paragraphs “f” 5 and “h” , together with interest thereon at a rate determined by 6 the board of trustees. If the member is married at the time 7 of the application for withdrawal, the application is subject 8 to the consent of the member’s spouse unless the amount to 9 be withdrawn does not exceed five thousand dollars or such 10 other amount as may be established under section 401(a) of the 11 Internal Revenue Code. If a member withdraws contributions as 12 provided in this section , the member shall be deemed to have 13 waived all claims for other benefits from the system for the 14 period of membership service for which the contributions are 15 withdrawn. 16 Sec. 8. Section 411.36, subsection 1, paragraph a, 17 subparagraph (3), Code 2011, is amended to read as follows: 18 (3) A city treasurer, city financial officer, or city clerk , 19 or other city officer involved with the management of the 20 financial matters of the city from four participating cities, 21 one of whom is from a city having a population of less than 22 thirty thousand, and three of whom are from cities having a 23 population of thirty thousand or more. The members authorized 24 pursuant to this paragraph shall be appointed by the governing 25 body of the Iowa league of cities. 26 EXPLANATION 27 This bill makes changes relating to the statewide fire and 28 police retirement system. 29 The bill amends Code section 400.8 to provide that, in terms 30 of civil service examinations, when certain medical protocols 31 of the civil service entrance examination requirements conflict 32 with certain minimum entrance requirements of the Iowa law 33 enforcement academy, the medical protocols will control. 34 The bill amends Code section 411.1 to provide a definition 35 -4- LSB 2184XC (3) 84 aw/sc 4/ 6
S.F. _____ for vested members within the retirement system for police 1 officers and fire fighters, stating that a vested member is 2 a member who becomes eligible to receive monthly retirement 3 benefits by either completing four years of service or reaching 4 the age of 55 while serving. 5 The bill amends Code section 411.5 to provide that the 6 distribution of benefits from the retirement system for 7 police officers and fire fighters must begin no later than the 8 required beginning date, set forth in section 401(a)(9) of the 9 Internal Revenue Code and must also comply with the minimum 10 distribution provisions of the same section. Current law bases 11 the initial distribution based upon age of the member or the 12 year in which the member retires. 13 The bill amends Code section 411.6 to require that an 14 individual achieving vested status on the basis of age alone 15 shall receive retirement payments equal to one twenty-second of 16 the allowance they would have received for 22 years of service, 17 multiplied by years of actual service performed by the member. 18 Code section 411.6 is also amended to strike language that 19 would allow a member’s dependent father or mother, or both, to 20 act as possible beneficiaries of certain pension benefits under 21 the system. 22 Code section 411.9 is amended to provide that if a member, 23 on or after January 1, 2007, becomes unable to return to 24 membership service as a result of death or disability suffered 25 while performing qualified military service, the period of 26 qualified military service must also be treated as membership 27 service within the retirement system for police officers and 28 fire fighters. The Code section is also amended to require 29 that if a member’s disability occurred while performing 30 qualified military service that the member must be treated in 31 good standing and be able to file for a disability pension with 32 the system. The bill specifies that the disability must be 33 treated as an ordinary disability for purposes of the system. 34 The bill amends Code section 411.23 to provide that a married 35 -5- LSB 2184XC (3) 84 aw/sc 5/ 6
S.F. _____ member seeking to make a withdrawal of over $5,000 from the 1 system must have the consent of the member’s spouse. The 2 bill states that the figure may change in accordance with the 3 provisions of section 401(a) of the Internal Revenue Code. 4 In relation to the system’s board of trustees, current law 5 (Code section 411.36) provides that four voting members of the 6 board must be either a city treasurer, city financial officer, 7 or city clerk involved with the financial matters of a city. 8 The bill provides that a trustee may also be any other city 9 officer involved with the management of the financial matters 10 of the city. The bill further requires that each of these four 11 members must be involved specifically with the management of 12 the financial matters of the city. 13 -6- LSB 2184XC (3) 84 aw/sc 6/ 6