House File 417 - Introduced HOUSE FILE 417 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 54) A BILL FOR An Act concerning benefits relating to members of the municipal 1 fire and police retirement system, and including effective 2 date and retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1197HV (2) 89 jda/rn
H.F. 417 Section 1. Section 411.1, subsection 11, Code 2021, is 1 amended to read as follows: 2 11. “Infectious disease” means HIV or AIDS as defined 3 in section 141A.1 , all strains of hepatitis, meningococcal 4 meningitis, and mycobacterium tuberculosis , blood borne 5 contagious diseases, and any other disease or virus determined 6 to be life-threatening to a person exposed to the disease or 7 virus that has been declared a pandemic, epidemic, or public 8 health emergency by the federal government, governor, or local 9 public health authorities . 10 Sec. 2. Section 411.1, subsection 14, Code 2021, is amended 11 by striking the subsection and inserting in lieu thereof the 12 following: 13 14. “Member in good standing” means any member in service 14 who has not been terminated by the employing city of the 15 member pursuant to section 400.18 or 400.19. Termination 16 procedures initiated by the chief of police or chief of the 17 fire department pursuant to section 400.19 shall not become 18 final or adversely impact a member’s status as a member in 19 good standing until all appeals provided by an applicable 20 collective bargaining agreement or by law have been exhausted. 21 Disciplinary action other than discharge shall not adversely 22 affect a member’s status as a member in good standing. 23 Sec. 3. Section 411.1, Code 2021, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 15A. “Ordinary disability beneficiary” 26 means a member retired on an ordinary disability retirement 27 benefit pursuant to section 411.6, subsection 3, for five years 28 or less. 29 Sec. 4. Section 411.6, subsection 5, paragraphs a and b, 30 Code 2021, are amended to read as follows: 31 a. Upon application to the system, of a member in good 32 standing , of an ordinary disability beneficiary, or of the 33 chief of the police or fire departments, respectively, any 34 member in good standing or ordinary disability beneficiary 35 -1- LSB 1197HV (2) 89 jda/rn 1/ 11
H.F. 417 who has become totally and permanently incapacitated for duty 1 as the natural and proximate result of an injury or disease 2 incurred in or aggravated by the actual performance of duty 3 at some definite time and place or arising out of and in the 4 course of the employment , or while acting pursuant to order, 5 outside of the city by which the member is regularly employed, 6 shall be retired by the system if the medical board certifies 7 that the member or ordinary disability beneficiary is mentally 8 or physically incapacitated for further performance of duty, 9 that the incapacity is likely to be permanent, and that the 10 member or ordinary disability beneficiary should be retired. 11 However, if a person’s membership in the system first commenced 12 on or after July 1, 1992, the member or ordinary disability 13 beneficiary shall not be eligible for benefits with respect to 14 a disability which would not exist, but for a medical condition 15 that was known to exist on the date that membership commenced. 16 A medical condition shall be deemed to have been known to exist 17 on the date that membership commenced if the medical condition 18 is reflected in any record or document completed or obtained 19 in accordance with the system’s medical protocols pursuant to 20 section 400.8 , or in any other record or document obtained 21 pursuant to an application for disability benefits from the 22 system, if such record or document existed prior to the date 23 membership commenced. A member who is denied a benefit under 24 this subsection , by reason of a finding by the medical board 25 that the member is not mentally or physically incapacitated 26 for the further performance of duty, shall be entitled to 27 be restored to active service in the same position held 28 immediately prior to the application for disability benefits. 29 b. If a member in service or the chief of the police or 30 fire departments becomes incapacitated for duty as a natural 31 or proximate result of an injury or disease incurred in or 32 aggravated by the actual performance of duty at some definite 33 time or place or arising out of or in the course of the 34 employment, or while acting, pursuant to order, outside the 35 -2- LSB 1197HV (2) 89 jda/rn 2/ 11
H.F. 417 city by which the member is regularly employed, the member, 1 upon being found to be temporarily incapacitated following a 2 medical examination as directed by the city, is entitled to 3 receive the member’s full pay and allowances from the city’s 4 general fund or trust and agency fund until reexamined as 5 directed by the city and found to be fully recovered or until 6 the city determines that the member is likely to be permanently 7 disabled. If the temporary incapacity of a member continues 8 more than sixty days, or if the city expects the incapacity 9 to continue more than sixty days, the city shall notify the 10 system of the temporary incapacity. Upon notification by a 11 city, the system may refer the matter to the medical board for 12 review and consultation with the member’s treating physician 13 during the temporary incapacity. Except as provided by this 14 paragraph, the board of trustees of the statewide system has no 15 jurisdiction over these matters until the city determines that 16 the disability is likely to be permanent. 17 Sec. 5. Section 411.6, subsection 5, paragraph c, 18 subparagraph (1), Code 2021, is amended to read as follows: 19 (1) Disease under this subsection shall mean heart disease 20 or any disease of the lungs or respiratory tract and shall 21 be presumed to have been contracted while on active duty as 22 a result of strain , or contact with or the inhalation of 23 respiratory droplets, noxious fumes, poison, or gases. 24 Sec. 6. Section 411.6, subsection 5, Code 2021, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . 0d. Disease under this subsection shall 27 also mean any incapacitating mental disorder arising out of 28 and in the course of the employment, or while acting, pursuant 29 to order, outside the city by which the member is regularly 30 employed. A disease shall qualify as an incapacitating mental 31 disorder irrespective of the absence of similar effects on 32 other members. 33 Sec. 7. Section 411.6, subsection 6, Code 2021, is amended 34 by adding the following new paragraph: 35 -3- LSB 1197HV (2) 89 jda/rn 3/ 11
H.F. 417 NEW PARAGRAPH . d. (1) Upon a determination on or after 1 July 1, 2020, that an ordinary disability beneficiary is 2 entitled to a retirement for accidental disability, the 3 beneficiary shall receive an accidental disability retirement 4 allowance which shall consist of a pension in an amount that is 5 equal to the greater of sixty percent of the member’s average 6 final compensation or the retirement allowance that the member 7 would receive under subsection 2 if the member had attained 8 fifty-five years of age, or an amount equal to the ordinary 9 disability retirement allowance previously received by the 10 beneficiary, whichever is greater. 11 (2) An accidental disability allowance under this paragraph 12 shall commence effective the first day of the first month 13 following the determination that the ordinary disability 14 beneficiary is entitled to a retirement for accidental 15 disability. 16 Sec. 8. Section 411.6, subsection 9, paragraph a, 17 subparagraph (1), Code 2021, is amended to read as follows: 18 (1) If, upon the receipt of evidence and proof from the 19 chief of the police or fire department that the death of a 20 member in service was the natural and proximate result of an 21 injury or disease incurred in or aggravated by the actual 22 performance of duty at some definite time and place or arising 23 out of and in the course of the employment , or while acting 24 pursuant to order, outside of the city by which the member is 25 regularly employed, the system decides that death was so caused 26 in the performance of duty, there shall be paid, in lieu of the 27 ordinary death benefit provided in subsection 8 , an accidental 28 death benefit as set forth in this subsection . 29 Sec. 9. Section 411.6, subsection 16, Code 2021, is amended 30 by adding the following new paragraph: 31 NEW PARAGRAPH . d. A person otherwise eligible to receive an 32 ordinary or accidental disability retirement benefit under this 33 chapter shall not be eligible to receive such a benefit if the 34 person is subsequently terminated or removed by the employing 35 -4- LSB 1197HV (2) 89 jda/rn 4/ 11
H.F. 417 city of the person pursuant to section 400.18 or 400.19, or 1 other comparable process. Upon determination of ineligibility 2 pursuant to this paragraph, the person’s entitlement to a 3 disability benefit under this chapter shall terminate and any 4 disability retirement allowance received by such a person must 5 be returned to the system together with interest earned on the 6 disability retirement allowance calculated at a rate determined 7 by the system. However, the determination of ineligibility 8 as provided under this paragraph may be waived for good cause 9 as determined by the board. The burden of establishing good 10 cause is on the person who received the disability retirement 11 allowance. 12 Sec. 10. Section 411.8, subsection 1, paragraph f, 13 subparagraph (8), Code 2021, is amended to read as follows: 14 (8) Beginning July 1, 1996, and each fiscal year thereafter, 15 an amount equal to the member’s contribution rate times each 16 member’s compensation shall be paid to the fund from the 17 earnable compensation of the member. For the purposes of this 18 subparagraph, the member’s contribution rate shall be nine 19 and thirty-five hundredths percent or, beginning July 1, 2009 20 until June 30, 2009 , nine and four-tenths percent until June 21 30, 2021, or, beginning July 1, 2021, nine and fifty-five 22 hundredths percent . However, the system shall increase the 23 member’s contribution rate as necessary to cover any increase 24 in cost to the system resulting from statutory changes which 25 are enacted by any session of the general assembly meeting 26 after January 1, 1991, if the increase cannot be absorbed 27 within the contribution rates otherwise established pursuant to 28 this paragraph, but subject to a maximum employee contribution 29 rate of eleven and three-tenths percent or, beginning July 30 1, 2009, eleven and thirty-five hundredths percent. The 31 contribution rate increases specified in 1994 Iowa Acts, ch. 32 1183, pursuant to this chapter and chapter 97A shall be the 33 only member contribution rate increases for these systems 34 resulting from the statutory changes enacted in 1994 Iowa 35 -5- LSB 1197HV (2) 89 jda/rn 5/ 11
H.F. 417 Acts, ch. 1183, and shall apply only to the fiscal periods 1 specified in 1994 Iowa Acts, ch. 1183. After the employee 2 contribution reaches eleven and three-tenths percent or eleven 3 and thirty-five hundredths percent, as applicable, sixty 4 percent of the additional cost of such statutory changes shall 5 be paid by employers under paragraph “c” and forty percent 6 of the additional cost shall be paid by employees under this 7 paragraph. 8 Sec. 11. Section 411.15, Code 2021, is amended to read as 9 follows: 10 411.15 Hospitalization and medical attention. 11 1. a. Cities shall provide hospital, nursing, and medical 12 attention for the members of the police and fire departments 13 of the cities, when injured while in the performance of their 14 duties as members of such department , and or for injuries and 15 diseases arising out of and in the course of the employment. 16 b. Cities shall continue to provide hospital, nursing, and 17 medical attention for injuries or diseases incurred while in 18 the performance of their duties or arising out of and in the 19 course of the employment for members or beneficiaries receiving 20 a retirement allowance under section 411.6 , subsection 6 . 21 2. a. Cities may fund the cost of the hospital, nursing, 22 and medical attention required by this section through the 23 purchase of insurance, by self-insuring the obligation, or 24 through payment of moneys into a local government risk pool 25 established for the purpose of covering the costs associated 26 with the requirements of this section . However, the cost of 27 the hospital, nursing, and medical attention required by this 28 section shall not be funded through an employee-paid health 29 insurance policy. 30 b. A member or beneficiary shall not be required to pay the 31 cost of the hospital, nursing, and medical attention required 32 by this section, including but not limited to any costs 33 or premiums associated with any insurance policy providing 34 coverage for the hospital, nursing, and medical attention. 35 -6- LSB 1197HV (2) 89 jda/rn 6/ 11
H.F. 417 c. The cost of the hospital, nursing, and medical attention 1 required by this section shall be paid from moneys held in a 2 trust and agency fund established pursuant to section 384.6 , 3 or out of the appropriation for the department to which the 4 injured person belongs or belonged; provided that any amounts 5 received by the injured person from any other source for such 6 specific purposes, shall be deducted from the amount paid by 7 the city under the provisions of this section . 8 3. a. For purposes of this subsection, “date of the 9 occurrence of the injury or disease” means the date that the 10 member or beneficiary knew or should have known that the injury 11 or disease was work-related. 12 b. To be provided the cost of the hospital, nursing, and 13 medical attention required by this section, the city or the 14 city’s representative shall have actual knowledge of the 15 occurrence of an injury or disease or be provided notice of the 16 occurrence of an injury or disease on behalf of a member or 17 beneficiary within ninety days from the date of the occurrence 18 of the injury or disease. 19 c. An action to require the city to provide the cost of 20 the hospital, nursing, and medical attention required by this 21 section shall not be maintained unless the action is commenced 22 within two years from the date of the occurrence of the injury 23 or disease or two years from the date the city denies a claim to 24 provide hospital, nursing, and medical attention required by 25 this section, whichever last occurs. 26 Sec. 12. NEW SECTION . 411.15A Infectious diseases —— 27 quarantine —— employment rights. 28 1. A member of the police or fire department of a city 29 shall be granted a leave of absence if the member may have been 30 exposed to an infectious disease while in the performance of 31 their duty as a member of such department and is required or 32 recommended to quarantine for a period of time or place of 33 isolation, including isolation at home, by the city or the 34 member’s health care provider, in accordance with guidance or 35 -7- LSB 1197HV (2) 89 jda/rn 7/ 11
H.F. 417 orders from the centers for disease control and prevention of 1 the United States department of health and human services, 2 department of public health, the governor, or a local public 3 health authority. 4 2. A member who is granted a leave of absence under this 5 section shall receive leave without loss of seniority, pay, 6 vacation time, personal days, sick leave, insurance and health 7 coverage benefits, or earned overtime accumulation. The member 8 shall be compensated at the employee’s regular rate of pay for 9 those regular work hours during which the employee is absent 10 from work from the city’s general fund or trust and agency 11 fund. 12 Sec. 13. IMPLEMENTATION OF ACT. Section 25B.2, subsection 13 3, shall not apply to the section of this Act enacting section 14 411.15A. 15 Sec. 14. RETROACTIVE APPLICABILITY. The following apply 16 retroactively to January 1, 2020, for purposes of section 17 411.15A as enacted in this Act: 18 1. The section of this Act amending section 411.1, 19 subsection 11. 20 2. The section of this Act enacting section 411.15A. 21 Sec. 15. EFFECTIVE DATE. The following, being deemed of 22 immediate importance, take effect upon enactment: 23 1. The section of this Act amending section 411.1, 24 subsection 11. 25 2. The section of this Act enacting section 411.15A. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill concerns benefits to members under the municipal 30 fire and police retirement system established under Code 31 chapter 411. 32 Code section 411.1, concerning definitions, is amended. The 33 bill defines an “ordinary disability beneficiary” as a member 34 retired on an ordinary disability retirement benefit for five 35 -8- LSB 1197HV (2) 89 jda/rn 8/ 11
H.F. 417 years or less. The bill also amends the definition of “member 1 in good standing” to mean any member in service who has not 2 been terminated by the employing city of the member. The bill 3 also amends the definition of “infectious disease” to include 4 blood borne contagious diseases and any other disease or virus 5 determined to be life-threatening that has been declared a 6 pandemic, epidemic, or public health emergency. The amended 7 definition of “infectious disease” takes effect upon enactment 8 and applies retroactively to January 1, 2020, for purposes of 9 the provision of new Code section 411.15A as provided in the 10 bill. 11 Code section 411.6(5), concerning accidental disability 12 benefits, is amended to allow an ordinary disability 13 beneficiary to make application to the retirement system for an 14 accidental disability retirement benefit. The subsection is 15 further amended to provide that a person is entitled to pay and 16 allowances if determined to be temporarily incapacitated prior 17 to an accidental disability retirement determination and for 18 an accidental disability retirement if the person has become 19 totally and permanently incapacitated as a result of injury and 20 disease arising out of and in the course of the employment and 21 by the actual performance of duty without regard to whether 22 that actual performance of duty was at some definite time and 23 place. The subsection is also amended to provide that disease 24 for purposes of an accidental disability benefit also means any 25 incapacitating mental disorder arising out of and in the course 26 of the employment, or while acting, pursuant to order, outside 27 the city by which the member is regularly employed. 28 Code section 411.6(6), providing for a retirement allowance 29 upon retirement for accidental disability, is amended to 30 provide that an ordinary disability beneficiary who is 31 determined to be entitled to a retirement for accidental 32 disability shall receive a retirement allowance that shall 33 consist of the greater of an amount as determined for members 34 receiving an accidental disability retirement or an amount 35 -9- LSB 1197HV (2) 89 jda/rn 9/ 11
H.F. 417 equal to the disability retirement allowance previously 1 received by the beneficiary. 2 Code section 411.6(9), concerning accidental death benefits, 3 is amended to provide that an accidental death benefit shall 4 also be paid if the death was as a result of injury and disease 5 arising out of and in the course of the employment or by the 6 actual performance of duty without regard to whether that 7 actual performance of duty was at some definite time and place. 8 Code section 411.6(16), concerning ineligibility for 9 disability benefits, is amended to provide that a person 10 otherwise eligible to receive a disability retirement shall 11 not be eligible if the person is terminated or removed by the 12 employing city of the person pursuant to Code section 400.18 13 or 400.19, or other comparable process. The bill provides for 14 the repayment of benefits paid prior to the determination of 15 ineligibility. 16 Code section 411.8, concerning the method of financing 17 the retirement system, is amended by increasing the employee 18 contribution rate from 9.4 percent of pay to 9.55 percent of 19 pay beginning July 1, 2021. 20 Code section 411.15, concerning cities’ requirement to 21 provide hospitalization and medical attention for injuries 22 or diseases while on duty, is amended to provide that such 23 attention shall also be provided for injuries arising out of 24 and in the course of employment. The Code section is further 25 amended to provide that cities shall continue to provide 26 hospitalization and medical attention for injuries or diseases 27 while on duty for members or beneficiaries receiving any 28 retirement allowance under Code section 411.6 and not just an 29 accidental disability retirement allowance under Code section 30 411.6, subsection 6. The Code section is further amended 31 to provide that a member shall not be required to pay the 32 cost of hospital, nursing, and medical attention required, 33 including payment of any costs or premiums associated with any 34 insurance policy providing coverage. The bill further provides 35 -10- LSB 1197HV (2) 89 jda/rn 10/ 11
H.F. 417 that to be provided the cost of the hospital, nursing, and 1 medical attention, the city shall have actual knowledge of the 2 occurrence of an injury or disease or be provided notice of 3 the occurrence of an injury or disease on behalf of a member 4 or beneficiary within 90 days from the date of the occurrence 5 of the injury or disease. The bill provides that an action to 6 require the city to provide the cost of the hospital, nursing, 7 and medical attention shall not be maintained unless the action 8 is commenced within two years from the date of the occurrence 9 of the injury or disease or two years from the date the city 10 denies a claim to provide hospital, nursing, and medical 11 attention, whichever last occurs. 12 New Code section 411.15A provides that a member of a police 13 or fire department of a city shall be granted a leave of 14 absence without loss of pay and benefits if the member may have 15 been exposed to an infectious disease and is required to be 16 quarantined. The new Code section provides that compensation 17 provided under this Code section shall be from the city’s 18 general fund or trust and agency fund. This new Code section 19 takes effect upon enactment and applies retroactively to 20 January 1, 2020. In addition, this new Code section may 21 include a state mandate as defined in Code section 25B.3. 22 The bill makes inapplicable Code section 25B.2, subsection 23 3, to this new Code section which would relieve a political 24 subdivision from complying with a state mandate if funding for 25 the cost of the state mandate is not provided or specified. 26 Therefore, political subdivisions are required to comply with 27 any state mandate included in this new Code section. 28 -11- LSB 1197HV (2) 89 jda/rn 11/ 11