House File 2592 - Introduced HOUSE FILE 2592 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 551) A BILL FOR An Act concerning benefits under the municipal fire and police 1 retirement system. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5444HV (2) 88 ec/rn
H.F. 2592 Section 1. Section 411.1, subsection 14, Code 2020, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 14. “Member in good standing” means any member in service 4 who has not been terminated by the employing city of the 5 member pursuant to section 400.18 or 400.19. Termination 6 procedures initiated by the chief of police or chief of the 7 fire department pursuant to section 400.19 shall not become 8 final or adversely impact a member’s status as a member in 9 good standing until all appeals provided by an applicable 10 collective bargaining agreement or by law have been exhausted. 11 Disciplinary action other than discharge shall not adversely 12 affect a member’s status as a member in good standing. 13 Sec. 2. Section 411.1, Code 2020, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 15A. “Ordinary disability beneficiary” 16 means a member retired on an ordinary disability retirement 17 benefit pursuant to section 411.6, subsection 3, for five years 18 or less. 19 Sec. 3. Section 411.6, subsection 5, paragraphs a and b, 20 Code 2020, are amended to read as follows: 21 a. Upon application to the system, of a member in good 22 standing , of an ordinary disability beneficiary, or of the 23 chief of the police or fire departments, respectively, any 24 member in good standing or ordinary disability beneficiary 25 who has become totally and permanently incapacitated for duty 26 as the natural and proximate result of an injury or disease 27 incurred in or aggravated by the actual performance of duty 28 at some definite time and place or arising out of and in the 29 course of the employment , or while acting pursuant to order, 30 outside of the city by which the member is regularly employed, 31 shall be retired by the system if the medical board certifies 32 that the member or ordinary disability beneficiary is mentally 33 or physically incapacitated for further performance of duty, 34 that the incapacity is likely to be permanent, and that the 35 -1- LSB 5444HV (2) 88 ec/rn 1/ 9
H.F. 2592 member or ordinary disability beneficiary should be retired. 1 However, if a person’s membership in the system first commenced 2 on or after July 1, 1992, the member or ordinary disability 3 beneficiary shall not be eligible for benefits with respect to 4 a disability which would not exist, but for a medical condition 5 that was known to exist on the date that membership commenced. 6 A medical condition shall be deemed to have been known to exist 7 on the date that membership commenced if the medical condition 8 is reflected in any record or document completed or obtained 9 in accordance with the system’s medical protocols pursuant to 10 section 400.8 , or in any other record or document obtained 11 pursuant to an application for disability benefits from the 12 system, if such record or document existed prior to the date 13 membership commenced. A member who is denied a benefit under 14 this subsection , by reason of a finding by the medical board 15 that the member is not mentally or physically incapacitated 16 for the further performance of duty, shall be entitled to 17 be restored to active service in the same position held 18 immediately prior to the application for disability benefits. 19 b. If a member in service or the chief of the police or 20 fire departments becomes incapacitated for duty as a natural 21 or proximate result of an injury or disease incurred in or 22 aggravated by the actual performance of duty at some definite 23 time or place or arising out of or in course of the employment, 24 or while acting, pursuant to order, outside the city by which 25 the member is regularly employed, the member, upon being 26 found to be temporarily incapacitated following a medical 27 examination as directed by the city, is entitled to receive 28 the member’s full pay and allowances from the city’s general 29 fund or trust and agency fund until reexamined as directed 30 by the city and found to be fully recovered or until the 31 city determines that the member is likely to be permanently 32 disabled. If the temporary incapacity of a member continues 33 more than sixty days, or if the city expects the incapacity 34 to continue more than sixty days, the city shall notify the 35 -2- LSB 5444HV (2) 88 ec/rn 2/ 9
H.F. 2592 system of the temporary incapacity. Upon notification by a 1 city, the system may refer the matter to the medical board for 2 review and consultation with the member’s treating physician 3 during the temporary incapacity. Except as provided by this 4 paragraph, the board of trustees of the statewide system has no 5 jurisdiction over these matters until the city determines that 6 the disability is likely to be permanent. 7 Sec. 4. Section 411.6, subsection 5, Code 2020, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0d. Disease under this subsection shall 10 also mean any incapacitating mental disorder arising out of 11 and in the course of the employment, or while acting, pursuant 12 to order, outside the city by which the member is regularly 13 employed. A disease shall qualify as an incapacitating mental 14 disorder irrespective of the absence of similar effects on 15 other members. 16 Sec. 5. Section 411.6, subsection 6, Code 2020, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . d. (1) Upon a determination on or after 19 July 1, 2020, that an ordinary disability beneficiary is 20 entitled to a retirement for accidental disability, the 21 beneficiary shall receive an accidental disability retirement 22 allowance which shall consist of a pension in an amount that is 23 equal to the greater of sixty percent of the member’s average 24 final compensation or the retirement allowance that the member 25 would receive under subsection 2 if the member had attained 26 fifty-five years of age, or an amount equal to the ordinary 27 disability retirement allowance previously received by the 28 beneficiary, whichever is greater. 29 (2) An accidental disability allowance under this paragraph 30 shall commence effective the first day of the first month 31 following the determination that the ordinary disability 32 beneficiary is entitled to a retirement for accidental 33 disability. 34 Sec. 6. Section 411.6, subsection 9, paragraph a, 35 -3- LSB 5444HV (2) 88 ec/rn 3/ 9
H.F. 2592 subparagraph (1), Code 2020, is amended to read as follows: 1 (1) If, upon the receipt of evidence and proof from the 2 chief of the police or fire department that the death of a 3 member in service was the natural and proximate result of an 4 injury or disease incurred in or aggravated by the actual 5 performance of duty at some definite time and place or arising 6 out of and in the course of the employment , or while acting 7 pursuant to order, outside of the city by which the member is 8 regularly employed, the system decides that death was so caused 9 in the performance of duty, there shall be paid, in lieu of the 10 ordinary death benefit provided in subsection 8 , an accidental 11 death benefit as set forth in this subsection . 12 Sec. 7. Section 411.6, subsection 16, Code 2020, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . d. A person otherwise eligible to receive an 15 ordinary or accidental disability retirement benefit under this 16 chapter shall not be eligible to receive such a benefit if the 17 person is subsequently terminated or removed by the employing 18 city of the person pursuant to section 400.18 or 400.19, or 19 other comparable process. Upon determination of ineligibility 20 pursuant to this paragraph, the person’s entitlement to a 21 disability benefit under this chapter shall terminate and any 22 disability retirement allowance received by such a person must 23 be returned to the system together with interest earned on the 24 disability retirement allowance calculated at a rate determined 25 by the system. However, the determination of ineligibility 26 as provided under this paragraph may be waived for good cause 27 as determined by the board. The burden of establishing good 28 cause is on the person who received the disability retirement 29 allowance. 30 Sec. 8. Section 411.8, subsection 1, paragraph f, 31 subparagraph (8), Code 2020, is amended to read as follows: 32 (8) Beginning July 1, 1996, and each fiscal year thereafter, 33 an amount equal to the member’s contribution rate times each 34 member’s compensation shall be paid to the fund from the 35 -4- LSB 5444HV (2) 88 ec/rn 4/ 9
H.F. 2592 earnable compensation of the member. For the purposes of this 1 subparagraph, the member’s contribution rate shall be nine 2 and thirty-five hundredths percent or, beginning July 1, 2009 3 until June 30, 2009 , nine and four-tenths percent until June 4 30, 2020, or, beginning July 1, 2020, nine and fifty-five 5 hundredths percent . However, the system shall increase the 6 member’s contribution rate as necessary to cover any increase 7 in cost to the system resulting from statutory changes which 8 are enacted by any session of the general assembly meeting 9 after January 1, 1991, if the increase cannot be absorbed 10 within the contribution rates otherwise established pursuant to 11 this paragraph, but subject to a maximum employee contribution 12 rate of eleven and three-tenths percent or, beginning July 13 1, 2009, eleven and thirty-five hundredths percent. The 14 contribution rate increases specified in 1994 Iowa Acts, ch. 15 1183, pursuant to this chapter and chapter 97A shall be the 16 only member contribution rate increases for these systems 17 resulting from the statutory changes enacted in 1994 Iowa 18 Acts, ch. 1183, and shall apply only to the fiscal periods 19 specified in 1994 Iowa Acts, ch. 1183. After the employee 20 contribution reaches eleven and three-tenths percent or eleven 21 and thirty-five hundredths percent, as applicable, sixty 22 percent of the additional cost of such statutory changes shall 23 be paid by employers under paragraph “c” and forty percent 24 of the additional cost shall be paid by employees under this 25 paragraph. 26 Sec. 9. Section 411.15, Code 2020, is amended to read as 27 follows: 28 411.15 Hospitalization and medical attention. 29 1. a. Cities shall provide hospital, nursing, and medical 30 attention for the members of the police and fire departments 31 of the cities, when injured while in the performance of their 32 duties as members of such department , and or for injuries and 33 diseases arising out of and in the course of the employment. 34 b. Cities shall continue to provide hospital, nursing, and 35 -5- LSB 5444HV (2) 88 ec/rn 5/ 9
H.F. 2592 medical attention for injuries or diseases incurred while in 1 the performance of their duties or arising out of and in the 2 course of the employment for members or beneficiaries receiving 3 a retirement allowance under section 411.6 , subsection 6 . 4 2. a. Cities may fund the cost of the hospital, nursing, 5 and medical attention required by this section through the 6 purchase of insurance, by self-insuring the obligation, or 7 through payment of moneys into a local government risk pool 8 established for the purpose of covering the costs associated 9 with the requirements of this section . However, the cost of 10 the hospital, nursing, and medical attention required by this 11 section shall not be funded through an employee-paid health 12 insurance policy. 13 b. A member or beneficiary shall not be required to pay the 14 cost of the hospital, nursing, and medical attention required 15 by this section, including but not limited to any costs 16 or premiums associated with any insurance policy providing 17 coverage for the hospital, nursing, and medical attention. 18 c. The cost of the hospital, nursing, and medical attention 19 required by this section shall be paid from moneys held in a 20 trust and agency fund established pursuant to section 384.6 , 21 or out of the appropriation for the department to which the 22 injured person belongs or belonged; provided that any amounts 23 received by the injured person from any other source for such 24 specific purposes, shall be deducted from the amount paid by 25 the city under the provisions of this section . 26 3. a. For purposes of this subsection, “date of the 27 occurrence of the injury or disease” means the date that the 28 member or beneficiary knew or should have known that the injury 29 or disease was work-related. 30 b. To be provided the cost of the hospital, nursing, and 31 medical attention required by this section, the city or the 32 city’s representative shall have actual knowledge of the 33 occurrence of an injury or disease or be provided notice of the 34 occurrence of an injury or disease on behalf of a member or 35 -6- LSB 5444HV (2) 88 ec/rn 6/ 9
H.F. 2592 beneficiary within ninety days from the date of the occurrence 1 of the injury or disease. 2 c. An action to require the city to provide the cost of 3 the hospital, nursing, and medical attention required by this 4 section shall not be maintained unless the action is commenced 5 within two years from the date of the occurrence of the injury 6 or disease or two years from the date the city denies a claim to 7 provide hospital, nursing, and medical attention required by 8 this section, whichever last occurs. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill concerns benefits under the municipal fire and 13 police retirement system established under Code chapter 411. 14 Code section 411.1, concerning definitions, is amended. The 15 bill defines an “ordinary disability beneficiary” as a member 16 retired on an ordinary disability retirement benefit for five 17 years or less. The bill also amends the definition of “member 18 in good standing” to mean any member in service who has not 19 been terminated by the employing city of the member. 20 Code section 411.6(5), concerning accidental disability 21 benefits, is amended to allow an ordinary disability 22 beneficiary to make application to the retirement system for an 23 accidental disability retirement benefit. The subsection is 24 further amended to provide that a person is entitled to pay and 25 allowances if determined to be temporarily incapacitated prior 26 to an accidental disability retirement determination and for 27 an accidental disability retirement if the person has become 28 totally and permanently incapacitated as a result of injury and 29 disease arising out of and in the course of the employment and 30 by the actual performance of duty without regard to whether 31 that actual performance of duty was at some definite time and 32 place. The subsection is also amended to provide that disease 33 for purposes of an accidental disability benefit also means any 34 incapacitating mental disorder arising out of and in the course 35 -7- LSB 5444HV (2) 88 ec/rn 7/ 9
H.F. 2592 of the employment, or while acting, pursuant to order, outside 1 the city by which the member is regularly employed. 2 Code section 411.6(6), providing for a retirement allowance 3 upon retirement for accidental disability, is amended to 4 provide that an ordinary disability beneficiary who is 5 determined to be entitled to a retirement for accidental 6 disability shall receive a retirement allowance that shall 7 consist of the greater of an amount as determined for members 8 receiving an accidental disability retirement or an amount 9 equal to the disability retirement allowance previously 10 received by the beneficiary. 11 Code section 411.6(9), concerning accidental death benefits, 12 is amended to provide that an accidental death benefit shall 13 also be paid if the death was as a result of injury and disease 14 arising out of and in the course of the employment or by the 15 actual performance of duty without regard to whether that 16 actual performance of duty was at some definite time and place. 17 Code section 411.6(16), concerning ineligibility for 18 disability benefits, is amended to provide that a person 19 otherwise eligible to receive a disability retirement shall 20 not be eligible if the person is terminated or removed by the 21 employing city of the person pursuant to Code section 400.18 22 or 400.19, or other comparable process. The bill provides for 23 the repayment of benefits paid prior to the determination of 24 ineligibility. 25 Code section 411.8, concerning the method of financing 26 the retirement system, is amended by increasing the employee 27 contribution rate from 9.4 percent of pay to 9.55 percent of 28 pay beginning July 1, 2020. 29 Code section 411.15, concerning cities’ requirement to 30 provide hospitalization and medical attention for injuries 31 or diseases while on duty, is amended to provide that such 32 attention shall also be provided for injuries arising out of 33 and in the course of employment. The Code section is further 34 amended to provide that cities shall continue to provide 35 -8- LSB 5444HV (2) 88 ec/rn 8/ 9
H.F. 2592 hospitalization and medical attention for injuries or diseases 1 while on duty for members or beneficiaries receiving any 2 retirement allowance under Code section 411.6 and not just an 3 accidental disability retirement allowance under Code section 4 411.6, subsection 6. The Code section is further amended 5 to provide that a member shall not be required to pay the 6 cost of hospital, nursing, and medical attention required, 7 including payment of any costs or premiums associated with any 8 insurance policy providing coverage. The bill further provides 9 that to be provided the cost of the hospital, nursing, and 10 medical attention, the city shall have actual knowledge of the 11 occurrence of an injury or disease or be provided notice of 12 the occurrence of an injury or disease on behalf of a member 13 or beneficiary within 90 days from the date of the occurrence 14 of the injury or disease. The bill provides that an action to 15 require the city to provide the cost of the hospital, nursing, 16 and medical attention shall not be maintained unless the action 17 is commenced within two years from the date of the occurrence 18 of the injury or disease or two years from the date the city 19 denies a claim to provide hospital, nursing, and medical 20 attention, whichever last occurs. 21 -9- LSB 5444HV (2) 88 ec/rn 9/ 9