S.F. 2061 Section 1. 2018 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 or qualified 5 employee who has filed a completed application for benefits 6 with the Iowa public employees’ retirement system created in 7 chapter 97B in which the employee’s or qualified employee’s 8 intended first month of entitlement, as defined in section 9 97B.1A, is no later than the month following the date 10 eligible employees shall be required to agree to separate 11 from employment with the state as provided in subsection 2, 12 paragraph “e”. 13 b. “Eligible enrollment date” means the date, established 14 by the department that is at least forty-five days, but no 15 later than sixty days, after the effective date of this Act and 16 that is not a weekend or holiday. 17 c. “Employee” means an employee, as defined in section 18 97B.1A, who is employed within the executive branch of this 19 state. However, “employee” does not mean a qualified employee, 20 an elected official, or an employee eligible for the sick leave 21 conversion program as described in section 70A.23, subsection 22 4. 23 d. “Employer” means a department, agency, board, or 24 commission of the state that employs individuals. 25 e. “Health insurance contribution benefit” means the amount 26 representing the monthly contribution cost of an affordable 27 group health care plan offered by the state, as determined by 28 the department of administrative services, providing coverage 29 to the participant and, if applicable, the participant’s spouse 30 for the applicable period of coverage. 31 f. “Participant” means a person who timely submits an 32 election to participate, is accepted to participate, and does 33 participate, in the state employee retirement incentive program 34 established under this section. 35 -1- LSB 5628XS (1) 87 ec/rn 1/ 7

S.F. 2061 g. “Program” means the state employee retirement incentive 1 program established under this section. 2 h. “Qualified employee” means an employee of a judicial 3 district department of correctional services, an employee in 4 the office of a statewide elected official, or an employee of 5 the state board of regents if the board elects to participate 6 in the program. 7 i. “Years of service incentive benefit” means an amount 8 equal to, for eligible employees with at least ten years of 9 state employment service, one thousand dollars for each year of 10 state employment service up to a maximum of twenty-five years 11 of state employment service. For purposes of this paragraph, 12 “state employment service” means service, as defined in section 13 97B.1A, for which the employer is the state. 14 2. Program eligibility. To become a participant in the 15 program, an eligible employee shall do all of the following: 16 a. Submit by the eligible enrollment date, a written 17 application, on forms prescribed by the department of 18 administrative services, seeking participation in the program. 19 b. Acknowledge in writing the eligible employee’s 20 agreement to voluntarily terminate employment in exchange 21 for participation in the state employee retirement incentive 22 program as provided in this section. 23 c. Agree to waive all rights to file suit against the state 24 of Iowa, including all of its departments, agencies, and other 25 subdivisions, based on state or federal claims arising out of 26 the employment relationship. 27 d. Acknowledge, in writing, that participation in the 28 program waives any right to accept any employment with the 29 state other than as an elected official on or after the date 30 the eligible employee separates from employment. 31 e. Agree to separate from employment with the state no 32 later than thirty days after the eligible enrollment date as 33 established in this subsection. 34 3. Participant acceptance. An eligible employee shall be 35 -2- LSB 5628XS (1) 87 ec/rn 2/ 7

S.F. 2061 accepted into the program if the department of administrative 1 services determines that the eligible employee meets the 2 requirements to be eligible to participate in the program. 3 4. Program benefits. Upon acceptance to participate in the 4 program and separation from employment with the state no later 5 than the date as determined in subsection 2, paragraph “e”, a 6 participant shall receive the following benefits: 7 a. During November 2018, and each November thereafter for a 8 total of five years, the state shall pay to the participant, 9 or the participant’s beneficiary, an amount equal to twenty 10 percent of the years of service incentive benefit for that 11 participant. 12 b. For the period of time commencing with the first month 13 in which a participant is ineligible for or exhausts the 14 participant’s available remaining value of sick leave used 15 to pay the state share for the participant’s continuation of 16 state group health insurance coverage as provided in section 17 70A.23, subsection 3, and ending five years from the date 18 the participant separates from employment with the state as 19 provided in this section, the participant, or the participant’s 20 surviving spouse, shall be entitled to receive a health 21 insurance contribution benefit to be used by the participant 22 or the participant’s beneficiary to pay the cost for eligible 23 state group health insurance. The department of administrative 24 services shall determine what health insurance plans constitute 25 eligible state group health insurance for purposes of this 26 paragraph “b”. 27 5. Reemployment. 28 a. An employer shall not offer permanent part-time 29 employment, permanent full-time employment, temporary 30 employment, or retention as an independent contractor to a 31 participant. 32 b. This section shall not preclude a participant from 33 membership on a board or commission. 34 6. Program administration and reporting. 35 -3- LSB 5628XS (1) 87 ec/rn 3/ 7

S.F. 2061 a. The department of administrative services shall 1 administer the program and shall adopt administrative rules 2 to administer the program. The department of administrative 3 services and the department of management may adopt rules on an 4 emergency basis under section 17A.4, subsection 3, and section 5 17A.5, subsection 2, paragraph “b”, to implement this section 6 and the rules shall be effective immediately upon filing unless 7 a later date is specified in the rules. 8 b. Records of the Iowa public employees’ retirement system 9 shall be released for the purposes of administering and 10 monitoring the program subject to the requirements of section 11 97B.17, subsection 5. 12 c. The department of administrative services, in 13 collaboration with the department of management, shall present 14 an interim report to the general assembly, including copies to 15 the legislative services agency and the fiscal committee of 16 the legislative council, by December 1, 2018, concerning the 17 operation of the program. The department shall also submit 18 an annual update concerning the program by October 1 of each 19 year for four years, commencing December 1, 2019. The reports 20 shall include information concerning the number of program 21 participants, the cost of the program including any payments 22 made to participants, the number of state employment positions 23 not filled pursuant to the program, and the number of positions 24 vacated by a program participant that have been refilled with a 25 comparison of the salary of the program participant at the time 26 the position was vacated to the beginning salary of the person 27 who refilled the position. 28 7. Legislative and judicial branch employees. 29 a. The legislative council may provide a retirement 30 incentive program for employees of the legislative branch 31 consistent with the program provided in this section for 32 executive branch employees. If the legislative council 33 provides an incentive program, the legislative council shall 34 collaborate with the department of administrative services to 35 -4- LSB 5628XS (1) 87 ec/rn 4/ 7

S.F. 2061 establish the program as required under this section as nearly 1 as identical as possible to the program provided executive 2 branch employees under this section. The program provided 3 pursuant to this paragraph “a” shall establish similar time 4 guidelines and the same benefit calculations as provided under 5 the program for executive branch employees. 6 b. The supreme court may provide a retirement incentive 7 program for employees of the judicial branch consistent with 8 the program provided in this section for executive branch 9 employees. If the supreme court provides an incentive program, 10 the supreme court shall collaborate with the department of 11 administrative services to establish the program as required 12 under this section as nearly as identical as possible to 13 the program provided executive branch employees under this 14 section. The program provided pursuant to this paragraph “b” 15 shall establish similar time guidelines and the same benefit 16 calculations as provided under the program for executive branch 17 employees. 18 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 19 immediate importance, takes effect upon enactment. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill establishes a state employee retirement incentive 24 program for eligible employees of the executive branch of the 25 state, including employees in the offices of statewide elective 26 officials, employees of a judicial district department of 27 correctional services, and if the board of regents approves, 28 employees of the state board of regents and its institutions. 29 The bill permits, but does not require, either the legislative 30 branch or the judicial branch to establish an early retirement 31 program consistent with the program provided to executive 32 branch employees in the bill. An elected official, or an 33 employee eligible for an enhanced sick leave conversion program 34 under Code section 70A.23(4) are excluded from participating 35 -5- LSB 5628XS (1) 87 ec/rn 5/ 7

S.F. 2061 in the program. The program shall be administered by the 1 department of administrative services (DAS). The bill permits 2 eligible executive branch employees who have completed an 3 application for benefits under the Iowa public employees’ 4 retirement system (IPERS) with an intended first month 5 of entitlement of no later than the month following the 6 date eligible employees shall be required to separate from 7 employment, to separate from service with the state and receive 8 a benefit under the program. To receive the incentive benefit, 9 an eligible employee must submit an application to participate 10 in the program by the eligible enrollment date, be accepted to 11 participate in the program by the departments of administrative 12 services and management, separate from state employment within 13 30 days of the eligible enrollment date, and acknowledge the 14 employee’s ineligibility to return to employment with the 15 state. The bill defines eligible enrollment date as the date 16 established by DAS, no earlier than 45 days but no later than 17 60 days after the effective date of the bill. 18 The bill provides that the benefit provided to an eligible 19 employee who participates in the program is an amount equal to 20 the entire value of the eligible employee’s accumulated but 21 unused vacation plus, if the employee has at least 10 years 22 of state employment, $1,000 for each year of state employment 23 up to 25 years. The bill provides that this amount shall be 24 payable in five equal installments each year during November 25 beginning in November 2018. In addition, the bill provides 26 that a participant in the program, or the participant’s 27 surviving spouse, shall receive a health insurance premium 28 benefit to pay the premium cost for eligible state group 29 health insurance for five years following the participant’s 30 termination from state employment. However, the bill provides 31 that a participant shall receive the health insurance premium 32 benefit only when the participant is no longer eligible for, 33 or exhausts, the participant’s available remaining value of 34 sick leave used to pay the state share for the participant’s 35 -6- LSB 5628XS (1) 87 ec/rn 6/ 7