Senate Study Bill 1201 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act concerning the municipal fire and police retirement 1 system and including effective date and retroactive 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2278SC (1) 85 ec/sc
S.F. _____ Section 1. Section 400.8, subsection 1, Code 2013, 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. In the event of 23 a conflict between the medical protocols established under this 24 section and the minimum entrance requirements of the Iowa law 25 enforcement academy under section 80B.11, the medical protocols 26 established under this section shall control. The physical 27 examination of an applicant for the position of police officer, 28 police matron, or fire fighter shall be conducted after a 29 conditional offer of employment has been made to the applicant. 30 An applicant shall not be discriminated against on the basis 31 of height, weight, sex, or race in determining physical or 32 mental ability of the applicant. Reasonable rules relating to 33 strength, agility, and general health of applicants shall be 34 prescribed. The costs of the physical examination required 35 -1- LSB 2278SC (1) 85 ec/sc 1/ 7
S.F. _____ under this subsection shall be paid from the trust and agency 1 fund of the city. 2 Sec. 2. Section 411.1, subsection 14, Code 2013, is amended 3 to read as follows: 4 14. “Member in good standing” means a member in service who 5 is not subject to removal by the employing city of the member 6 pursuant to section 400.18 or 400.19 , or other comparable 7 process, and who is not the subject of an investigation that 8 could lead to such removal. A Except as specifically provided 9 pursuant to section 411.9, a person who is restored to active 10 service for purposes of applying for a pension under this 11 chapter is not a member in good standing. 12 Sec. 3. Section 411.1, Code 2013, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 23. “Vested member” means a member who has 15 become eligible to receive monthly retirement benefits upon the 16 member’s retirement as the result of either completing at least 17 four years of service or of attaining the age of fifty-five 18 while performing membership service. 19 Sec. 4. Section 411.5, subsection 12, paragraph e, Code 20 2013, is amended by striking the paragraph and inserting in 21 lieu thereof the following: 22 e. Notwithstanding any provision of this chapter to the 23 contrary, all benefits under this chapter shall commence no 24 later than the required beginning date specified under section 25 401(a)(9) of the federal Internal Revenue Code and shall comply 26 with the required minimum distribution provisions of that 27 section. 28 Sec. 5. Section 411.6, subsection 1, paragraph b, Code 2013, 29 is amended to read as follows: 30 b. Any vested member in service who has been a member of 31 the retirement system four or more years and whose employment 32 is terminated prior to the member’s retirement , other than by 33 death or disability, prior to the member being credited with 34 twenty-two years of service shall , upon attaining retirement 35 -2- LSB 2278SC (1) 85 ec/sc 2/ 7
S.F. _____ age for a vested member with four or more years of service 1 or upon application to the system for a vested member with 2 less than four years of service , receive a service retirement 3 allowance of four as calculated in the manner provided in this 4 paragraph. A vested member receiving a retirement allowance 5 pursuant to this paragraph shall receive a service retirement 6 allowance equal to one twenty-seconds of the retirement 7 allowance the member would receive at retirement if the 8 member’s employment had not been terminated, and an additional 9 one twenty-second of such retirement allowance for each 10 additional year of service not exceeding based on twenty-two 11 years of service , multiplied by the number of years of service 12 credited to the member . The amount of the retirement allowance 13 shall be calculated in the manner provided in this paragraph 14 using the average final compensation at the time of termination 15 of employment. 16 Sec. 6. Section 411.6, subsection 8, paragraph c, 17 subparagraph (3), Code 2013, is amended by striking the 18 subparagraph. 19 Sec. 7. Section 411.9, subsection 2, Code 2013, is amended 20 to read as follows: 21 2. In the case of a member’s death occurring on or after 22 January 1, 2007, if the member dies while performing qualified 23 military service as defined in section 414(u) of the Internal 24 Revenue Code, the survivors of the member are entitled to any 25 additional benefits , other than benefit accruals relating to 26 the period of qualified military service, provided by the 27 system as if the member had resumed membership service and 28 had died as the natural and proximate result of an injury or 29 disease incurred in or aggravated by the actual performance of 30 duty at some definite time and place. 31 Sec. 8. Section 411.9, Code 2013, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 2A. In the case of a member’s disability 34 incurred while performing qualified military service as defined 35 -3- LSB 2278SC (1) 85 ec/sc 3/ 7
S.F. _____ in section 414(u) of the Internal Revenue Code, the member 1 shall be treated as a member in good standing, whether or 2 not the member returns to membership service, and shall be 3 permitted to file an application for an ordinary disability 4 retirement benefit as provided in section 411.6. 5 Sec. 9. Section 411.9, Code 2013, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 2B. In the case of a member’s death or 8 disability occurring on or after January 1, 2007, if the member 9 is unable to resume membership service as a result of death or 10 disability incurred while performing qualified military service 11 as defined in section 414(u) of the Internal Revenue Code, 12 the member shall be treated as if the member had returned to 13 membership service and the period of military service shall be 14 treated as membership service. 15 Sec. 10. Section 411.23, subsection 1, Code 2013, is amended 16 to read as follows: 17 1. Commencing July 1, 1990, if an active member, in service 18 on or after that date, terminates service, other than by death 19 or disability, the member may elect to withdraw the member’s 20 contributions under section 411.8, subsection 1 , paragraphs “f” 21 and “h” , together with interest thereon at a rate determined by 22 the board of trustees. If the member is married at the time 23 of the application for withdrawal, the application is subject 24 to the consent of the member’s spouse unless the amount to be 25 withdrawn does not exceed the amount that may be withdrawn 26 without consent as established by section 401(a) of the federal 27 Internal Revenue Code. If a member withdraws contributions as 28 provided in this section , the member shall be deemed to have 29 waived all claims for other benefits from the system for the 30 period of membership service for which the contributions are 31 withdrawn. 32 Sec. 11. Section 411.36, subsection 1, paragraph a, 33 subparagraph (3), Code 2013, is amended to read as follows: 34 (3) A city treasurer, city financial officer, or city clerk , 35 -4- LSB 2278SC (1) 85 ec/sc 4/ 7
S.F. _____ or other city officer involved with the management of the 1 financial matters of the city from four participating cities, 2 one of whom is from a city having a population of less than 3 thirty thousand, and three of whom are from cities having a 4 population of thirty thousand or more. The members authorized 5 pursuant to this paragraph shall be appointed by the governing 6 body of the Iowa league of cities. 7 Sec. 12. EFFECTIVE UPON ENACTMENT. The following 8 provision or provisions of this Act, being deemed of immediate 9 importance, take effect upon enactment: 10 1. The section of this Act amending section 411.9, 11 subsection 2. 12 2. The section of this Act enacting section 411.9, 13 subsection 2B. 14 3. The section of this Act amending section 411.36, 15 subsection 1. 16 Sec. 13. RETROACTIVE APPLICABILITY. The following 17 provision or provisions of this Act apply retroactively to 18 January 1, 2007: 19 1. The section of this Act amending section 411.9, 20 subsection 2. 21 2. The section of this Act enacting section 411.9, 22 subsection 2B. 23 Sec. 14. RETROACTIVE APPLICABILITY. The following 24 provision or provisions of this Act apply retroactively to 25 appointments made on or after January 1, 2013: 26 1. The section of this Act amending section 411.36, 27 subsection 1. 28 EXPLANATION 29 This bill makes changes to the Municipal Fire and Police 30 Retirement System (MFPRSI). 31 Code section 400.8, concerning entrance examinations for 32 civil service employees, is amended to provide that if a 33 conflict exists between the medical protocols established by 34 the board of trustees of MFPRSI for police and fire fighters 35 -5- LSB 2278SC (1) 85 ec/sc 5/ 7
S.F. _____ and the entrance requirements for the Iowa Law Enforcement 1 Academy, the medical protocols established by the MFPRSI board 2 shall control. 3 Code section 411.1 is amended to define a vested member of 4 MFPRSI as a member who is eligible to receive a retirement 5 benefit by completing at least four years of service or 6 attaining age 55 while performing membership service. 7 Code section 411.5, concerning the administration of MFPRSI, 8 is amended to provide that benefits paid under MFPRSI shall 9 comply with the required beginning date and required minimum 10 distribution provisions of the federal Internal Revenue Code. 11 Code section 411.6(1), concerning calculation of a service 12 retirement benefit, is amended to provide that a vested member 13 of MFPRSI with less than 22 years of membership service is 14 entitled to receive a service retirement allowance based on the 15 number of years of service credited to the member. Current 16 law provides this service retirement allowance only to those 17 members with at least four years of service. 18 Code section 411.6(8), concerning an ordinary death benefit 19 under MFPRSI, is amended by striking the provision granting 20 to the deceased member’s dependent parents, if there is no 21 surviving spouse or child, an option to elect as the death 22 benefit a monthly pension benefit in lieu of a lump sum 23 payment. The change does not eliminate the ability of a 24 deceased member’s parents to receive a lump sum ordinary death 25 benefit if otherwise eligible. 26 Code section 411.9, concerning military service, is amended 27 by adding two new subsections. 28 New Code section 411.9(2A) provides that if a member’s 29 disability was incurred while performing qualified military 30 service, the member shall be permitted to file an application 31 for an ordinary disability retirement regardless of whether the 32 member returned to membership service following the disability. 33 New Code section 411.9(2B) provides that if a member is 34 unable to return to membership service following the member’s 35 -6- LSB 2278SC (1) 85 ec/sc 6/ 7
S.F. _____ death or disability occurring on or after January 1, 2007, 1 while performing qualified military service, the member shall 2 be treated as having returned to membership service and the 3 period of military service shall be treated as membership 4 service for purposes of Code chapter 411. Code section 5 411.9(2) is also amended to reflect that the period of military 6 service shall be counted as membership service for purposes of 7 providing death benefits to a member who dies while performing 8 qualified military service. The bill provides that both 9 changes take effect upon enactment and apply retroactively to 10 January 1, 2007. 11 Code section 411.23(1), concerning withdrawal of 12 contributions, is amended to provide that a member who 13 terminates service and elects to withdraw the member’s 14 contributions to MFPRSI shall be subject to the consent of 15 the member’s spouse if the amount to be withdrawn exceeds the 16 amount that may be withdrawn as established by the federal 17 Internal Revenue Code. Currently, the maximum amount that 18 may be withdrawn without consent as provided by the federal 19 Internal Revenue Code is $5,000. 20 Code section 411.36, concerning the board of trustees of the 21 MFPRSI, is amended to provide that the appointment of the city 22 representative of the board is not limited to individuals with 23 the title of city treasurer, city financial officer, or city 24 clerk, but instead allows the appointment of those specified 25 officers or any city officer involved with the management of 26 the financial matters of the city. The bill provides that this 27 change takes effect upon enactment and applies retroactively to 28 appointments to the board made on or after January 1, 2013. 29 -7- LSB 2278SC (1) 85 ec/sc 7/ 7