H.F. _____ DIVISION I 1 CIVIL SERVICE EVALUATIONS —— MUNICIPAL FIRE AND POLICE 2 RETIREMENT SYSTEM —— CERTAIN BENEFITS 3 Section 1. Section 400.8, subsection 1, Code 2024, is 4 amended to read as follows: 5 1. The commission, when necessary under the rules, 6 including minimum and maximum age limits, which shall be 7 prescribed and published in advance by the commission and 8 posted in the city hall, shall hold examinations for the 9 purpose of determining the qualifications of applicants 10 for positions under civil service, other than promotions, 11 which examinations shall be practical in character and shall 12 relate to matters which will fairly test the mental and 13 physical ability of the applicant to discharge the duties of 14 the position to which the applicant seeks appointment. The 15 physical examination and mental health evaluation of applicants 16 for appointment to the positions of police officer , police 17 matron, or fire fighter shall be held in accordance with 18 medical protocols established by the board of trustees of the 19 fire and police retirement system established by section 411.5 20 and shall be conducted in accordance with the directives of 21 the board of trustees. However, the prohibitions of section 22 216.6, subsection 1 , paragraph “d” , regarding tests for the 23 presence of the antibody to the human immunodeficiency virus 24 shall not apply to such examinations. The board of trustees 25 may change the medical protocols at any time the board so 26 determines. In the event of a conflict between the medical 27 protocols established under this section and the minimum 28 entrance requirements of the Iowa law enforcement academy under 29 section 80B.11 , the medical protocols established under this 30 section shall control. The physical examination and mental 31 health evaluation of an applicant for the position of police 32 officer , police matron, or fire fighter shall be conducted 33 after a conditional offer of employment has been made to the 34 applicant. An applicant shall not be discriminated against 35 -1- LSB 6363YC (6) 90 jm/ns 1/ 13

H.F. _____ on the basis of height, weight, sex, or race in determining 1 physical or mental ability of the applicant. Reasonable rules 2 relating to strength, agility, and general health of applicants 3 shall be prescribed. The costs of the physical examination and 4 the mental health evaluation required under this subsection 5 shall be paid from the trust and agency fund of the city. 6 Sec. 2. Section 411.1, subsection 14, Code 2024, is amended 7 by striking the subsection and inserting in lieu thereof the 8 following: 9 14. “Member in good standing” means any member in service 10 who has not been terminated by the employing city of the 11 member pursuant to section 400.18 or 400.19. Termination 12 procedures initiated by the chief of police or chief of the 13 fire department pursuant to section 400.19 shall not become 14 final or adversely impact a member’s status as a member in 15 good standing until all appeals provided by an applicable 16 collective bargaining agreement or by law have been exhausted. 17 Disciplinary action other than discharge shall not adversely 18 affect a member’s status as a member in good standing. 19 Sec. 3. Section 411.1, Code 2024, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 15A. “Ordinary disability beneficiary” 22 means a member retired on an ordinary disability retirement 23 benefit pursuant to section 411.6, subsection 3, for three 24 years or less. 25 Sec. 4. Section 411.6, subsection 5, paragraphs a and b, 26 Code 2024, are amended to read as follows: 27 a. Upon application to the system , of a member in good 28 standing , of an ordinary disability beneficiary, or of the 29 chief of the police or fire departments, respectively, any 30 member in good standing or ordinary disability beneficiary 31 who has become totally and permanently incapacitated for duty 32 as the natural and proximate result of an injury or disease 33 incurred in or aggravated by the actual performance of duty 34 at some definite time and place or arising out of and in the 35 -2- LSB 6363YC (6) 90 jm/ns 2/ 13

H.F. _____ course of employment , or while acting , pursuant to order, 1 outside of the city by which the member is regularly employed, 2 shall be retired by the system , or may have a retirement 3 for an ordinary disability converted to a retirement for an 4 accidental disability, if the medical board certifies that 5 the member or ordinary disability beneficiary is mentally or 6 physically incapacitated for further performance of duty, 7 that the incapacity is likely to be permanent, and that the 8 member should be retired or should have a retirement for an 9 ordinary disability converted to a retirement for an accidental 10 disability . However, if a person’s membership in the system 11 first commenced on or after July 1, 1992, the member or 12 ordinary disability beneficiary shall not be eligible for 13 benefits with respect to a disability which would not exist, 14 but for a medical condition that was known to exist on the 15 date that membership commenced. A medical condition shall be 16 deemed to have been known to exist on the date that membership 17 commenced if the medical condition is reflected in any record 18 or document completed or obtained in accordance with the 19 system’s medical protocols pursuant to section 400.8 , or in any 20 other record or document obtained pursuant to an application 21 for disability benefits from the system, if such record or 22 document existed prior to the date membership commenced. A 23 member who is denied a benefit under this subsection , by 24 reason of a finding by the medical board that the member is 25 not mentally or physically incapacitated for the further 26 performance of duty, shall be entitled to be restored to active 27 service in the same position held immediately prior to the 28 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 -3- LSB 6363YC (6) 90 jm/ns 3/ 13

H.F. _____ 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, Code 2024, is amended 18 by adding the following new paragraph: 19 NEW PARAGRAPH . 0d. To establish that a mental incapacity 20 occurred as the natural and proximate result of an injury or 21 disease incurred in or aggravated by the actual performance of 22 duty or arising out of and in the course of the employment, or 23 while acting, pursuant to order, outside of the city by which 24 the member is regularly employed, the member must demonstrate 25 that the mental incapacity is traceable to a readily 26 identifiable work event constituting a manifest happening of 27 a sudden traumatic nature from an unexpected cause or unusual 28 strain in the workplace. Whether an incident is traumatic, 29 unexpected, or unusual is determined by comparing the incident, 30 and not the effect on the member, to the experiences of other 31 police officers or fire fighters in Iowa. A member must be 32 able to trace their mental injury to a specific event or events 33 in the workplace to be eligible for accidental disability 34 benefits. 35 -4- LSB 6363YC (6) 90 jm/ns 4/ 13

H.F. _____ Sec. 6. Section 411.6, subsection 6, Code 2024, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . d. (1) Upon a determination on or after 3 July 1, 2024, that an ordinary disability beneficiary is 4 entitled to a retirement for accidental disability, the 5 beneficiary shall receive an accidental disability retirement 6 allowance which shall consist of a pension in an amount that is 7 equal to the greater of sixty percent of the member’s average 8 final compensation or the retirement allowance that the member 9 would receive under subsection 2 if the member had attained 10 fifty-five years of age, or an amount equal to the ordinary 11 disability retirement allowance previously received by the 12 beneficiary, whichever is greater. 13 (2) An accidental disability allowance under this paragraph 14 shall commence effective the first day of the first month 15 following the determination that the ordinary disability 16 beneficiary is entitled to a retirement for accidental 17 disability. 18 Sec. 7. Section 411.6, subsection 9, paragraph a, 19 subparagraph (1), Code 2024, is amended to read as follows: 20 (1) If, upon the receipt of evidence and proof from the 21 chief of the police or fire department that the death of a 22 member in service was the natural and proximate result of an 23 injury or disease incurred in or aggravated by the actual 24 performance of duty at some definite time and place or arising 25 out of and in the course of the employment , or while acting , 26 pursuant to order, outside of the city by which the member is 27 regularly employed, the system decides that death was so caused 28 in the performance of duty, there shall be paid, in lieu of the 29 ordinary death benefit provided in subsection 8 , an accidental 30 death benefit as set forth in this subsection . 31 Sec. 8. Section 411.6, subsection 16, Code 2024, is amended 32 by adding the following new paragraph: 33 NEW PARAGRAPH . d. A person otherwise eligible to receive 34 an ordinary or accidental disability retirement benefit under 35 -5- LSB 6363YC (6) 90 jm/ns 5/ 13

H.F. _____ this chapter shall not be eligible to receive such a benefit 1 if the person is subsequently removed, discharged, demoted, 2 or suspended pursuant to section 400.18 or 400.19, or other 3 comparable process. Upon determination of ineligibility 4 pursuant to this paragraph, the person’s entitlement to a 5 disability benefit under this chapter shall terminate and any 6 disability retirement allowance received by such a person must 7 be returned to the system together with interest earned on the 8 disability retirement allowance calculated at a rate determined 9 by the system. However, the determination of ineligibility 10 as provided under this paragraph may be waived for good cause 11 as determined by the board. The burden of establishing good 12 cause is on the person who received the disability retirement 13 allowance. 14 Sec. 9. Section 411.8, subsection 1, paragraph f, 15 subparagraph (8), Code 2024, is amended to read as follows: 16 (8) Beginning July 1, 1996, and each fiscal year thereafter, 17 an amount equal to the member’s contribution rate times each 18 member’s compensation shall be paid to the fund from the 19 earnable compensation of the member. For the purposes of this 20 subparagraph, the member’s contribution rate shall be nine and 21 thirty-five hundredths percent or, beginning July 1 until June 22 30 , 2009, nine and four-tenths percent until June 30, 2024, 23 and, beginning July 1, 2024, nine and sixty-four hundredths 24 percent . However, the system shall increase the member’s 25 contribution rate as necessary to cover any increase in cost 26 to the system resulting from statutory changes which are 27 enacted by any session of the general assembly meeting after 28 January 1, 1991, if the increase cannot be absorbed within 29 the contribution rates otherwise established pursuant to this 30 paragraph, but subject to a maximum employee contribution rate 31 of eleven and three-tenths percent or, beginning July 1, 2009, 32 eleven and thirty-five hundredths percent. The contribution 33 rate increases specified in 1994 Iowa Acts, ch. 1183, pursuant 34 to this chapter and chapter 97A shall be the only member 35 -6- LSB 6363YC (6) 90 jm/ns 6/ 13

H.F. _____ contribution rate increases for these systems resulting from 1 the statutory changes enacted in 1994 Iowa Acts, ch. 1183, and 2 shall apply only to the fiscal periods specified in 1994 Iowa 3 Acts, ch. 1183. After the employee contribution reaches eleven 4 and three-tenths percent or eleven and thirty-five hundredths 5 percent, as applicable, sixty percent of the additional cost 6 of such statutory changes shall be paid by employers under 7 paragraph “c” and forty percent of the additional cost shall be 8 paid by employees under this paragraph. 9 Sec. 10. Section 411.15, Code 2024, is amended to read as 10 follows: 11 411.15 Hospitalization and medical attention. 12 1. a. Cities shall provide hospital, nursing, and medical 13 attention for the members of the police and fire departments 14 of the cities, when injured while in the performance of their 15 duties as members of such department , and or for injuries and 16 diseases arising out of and in the course of the employment. 17 b. Cities shall continue to provide hospital, nursing, and 18 medical attention for injuries or diseases incurred while in 19 the performance of their duties or arising out of and in the 20 course of the employment for members or beneficiaries receiving 21 a retirement allowance under section 411.6 , subsection 6 . 22 c. Disease under this subsection shall mean heart disease 23 or any disease of the lungs or respiratory tract and shall be 24 presumed to have been contracted while on active duty as a 25 result of strain or the inhalation of noxious fumes, poison, or 26 gases. Disease under this subsection shall also mean cancer 27 or infectious disease, both as defined in section 411.1, and 28 shall be presumed to have been contracted while on active duty 29 as a result of that duty. 30 2. a. Cities may fund the cost of the hospital, nursing, 31 and medical attention required by this section through the 32 purchase of insurance, by self-insuring the obligation, or 33 through payment of moneys into a local government risk pool 34 established for the purpose of covering the costs associated 35 -7- LSB 6363YC (6) 90 jm/ns 7/ 13

H.F. _____ with the requirements of this section . However, the cost of 1 the hospital, nursing, and medical attention required by this 2 section shall not be funded through an employee-paid health 3 insurance policy. 4 b. A member or beneficiary shall not be required to pay the 5 cost of the hospital, nursing, and medical attention required 6 by this section, including but not limited to any costs 7 or premiums associated with any insurance policy providing 8 coverage for the hospital, nursing, and medical attention. 9 c. The cost of the hospital, nursing, and medical attention 10 required by this section shall be paid from moneys held in a 11 trust and agency fund established pursuant to section 384.6 , 12 or out of the appropriation for the department to which the 13 injured person belongs or belonged; provided that any amounts 14 received by the injured person from any other source for such 15 specific purposes, shall be deducted from the amount paid by 16 the city under the provisions of this section . 17 3. a. For purposes of this subsection, “date of the 18 occurrence of the injury or disease” means the date that the 19 member or beneficiary knew or should have known that the injury 20 or disease was work-related. 21 b. To be provided the cost of the hospital, nursing, and 22 medical attention required by this section, the city or the 23 city’s representative shall have actual knowledge of the 24 occurrence of an injury or disease or be provided notice of the 25 occurrence of an injury or disease on behalf of a member or 26 beneficiary within ninety days from the date of the occurrence 27 of the injury or disease. 28 c. (1) Except as provided in subparagraph (2), an action 29 to require the city to provide the cost of hospital, nursing, 30 and medical attention required by this section shall not be 31 maintained unless the action is commenced before the later of 32 any of the following: 33 (a) Two years from the date of the occurrence of the injury 34 or disease. 35 -8- LSB 6363YC (6) 90 jm/ns 8/ 13

H.F. _____ (b) Two years from the date the city denies a claim to 1 provide hospital, nursing, and medical attention required by 2 this section. 3 (2) A city shall not be responsible for any claim or action 4 for a newly discovered work-related injury arising under this 5 chapter which is filed after three years from the last date of 6 employment of the member. 7 DIVISION II 8 INDIVIDUAL INCOME TAX EXEMPTION —— SURVIVING SPOUSE —— PENSIONS 9 Sec. 11. Section 422.7, subsection 19, paragraph a, Code 10 2024, is amended to read as follows: 11 a. Subtract, to the extent included, the total amount 12 received from a governmental or other pension or retirement 13 plan, including defined benefit or defined contribution plans, 14 annuities, individual retirement accounts, plans maintained or 15 contributed to by an employer, or maintained or contributed 16 to by a self-employed person as an employer, and deferred 17 compensation plans or any earnings attributable to the deferred 18 compensation plans received by a person who is disabled, or is 19 fifty-five any of the following: 20 (1) Disabled. 21 (2) Fifty-five years of age or older , or is the . 22 (3) The surviving spouse of an individual or is a survivor 23 having an insurable interest in an individual who would have 24 qualified for the exemption under this subsection for the tax 25 year. 26 Sec. 12. Section 422.7, subsection 19, paragraph c, Code 27 2024, is amended to read as follows: 28 c. (1) A taxpayer who is not disabled or fifty-five years 29 of age or older and who receives a pension or retirement pay 30 amount as a surviving spouse or as a survivor with an insurable 31 interest in an individual who would have qualified for the 32 exemption for the tax year may only exclude the amount received 33 from a the pension or retirement plan in the tax year as a 34 result of the death of the decedent , if the pension amount is 35 -9- LSB 6363YC (6) 90 jm/ns 9/ 13

H.F. _____ provided pursuant to section 97B.49B or 97B.49C, or chapter 1 97A, 410, or 411 . 2 (2) A taxpayer who is not disabled or fifty-five years of 3 age or older and who receives other pension or retirement pay 4 not specified in subparagraph (1) as a surviving spouse or as a 5 survivor with an insurable interest in an individual who would 6 have qualified for the exemption for the tax year may only 7 exclude the amount received from a pension or retirement plan 8 in the tax year as a result of the death of the decedent. 9 Sec. 13. RETROACTIVE APPLICABILITY. This division of this 10 Act applies retroactively to January 1, 2024, for tax years 11 beginning on or after that date. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to the municipal fire and police 16 retirement system of Iowa (MFPRSI), the public safety officers’ 17 retirement, accident, and disability system (POR), and 18 protection occupation and sheriffs and deputy sheriffs under 19 the Iowa public employees’ retirement system (IPERS). 20 DIVISION I —— CIVIL SERVICE EVALUATIONS —— MFPRSI. Code 21 section 400.8, concerning entrance examinations under civil 22 service for police officers and fire fighters, is amended to 23 require a mental health evaluation as part of the examination. 24 Code section 411.1, concerning definitions, is amended. The 25 bill defines an “ordinary disability beneficiary” as a member 26 retired on an ordinary disability retirement benefit for three 27 years or less. The bill also amends the definition of “member 28 in good standing” to mean any member in service who has not 29 been terminated by the employing city of the member. 30 Code section 411.6(5), concerning accidental disability 31 benefits, is amended to provide that a person is entitled to 32 an accidental disability retirement if the person has become 33 totally and permanently incapacitated as a result of injury and 34 disease arising out of and in the course of the employment and 35 -10- LSB 6363YC (6) 90 jm/ns 10/ 13

H.F. _____ by the actual performance of duty without regard to whether 1 that actual performance of duty was at some definite time and 2 place. The bill further provides that mental incapacity occurs 3 as the natural and proximate result of an injury or disease 4 incurred or aggravated by the actual performance of duty or 5 arising out of the course of employment. To determine whether 6 an incident is considered traumatic, unexpected, or unusual in 7 establishing mental incapacity, the incident is compared to the 8 experiences of other police officers or fire fighters in this 9 state. 10 Code section 411.6(6), providing for a retirement allowance 11 upon retirement for accidental disability, is amended to 12 provide that an ordinary disability beneficiary who is 13 determined to be entitled to a retirement for accidental 14 disability on or after July 1, 2024, shall receive a retirement 15 allowance that shall consist of the greater of an amount as 16 determined for members receiving an accidental disability 17 retirement or an amount equal to the disability retirement 18 allowance previously received by the beneficiary. 19 Code section 411.6(9), concerning accidental death benefits, 20 is amended to provide that an accidental death benefit shall 21 also be paid if the death was as a result of injury and disease 22 arising out of and in the course of the employment or by the 23 actual performance of duty. 24 Code section 411.6(16), concerning ineligibility for 25 disability benefits, is amended to provide that a person 26 otherwise eligible to receive a disability retirement shall not 27 be eligible if the person is subsequently removed, discharged, 28 demoted, or suspended pursuant to Code section 400.18 or 29 400.19, or other comparable process. The bill provides for 30 the repayment of benefits paid prior to the determination of 31 ineligibility. 32 Code section 411.8, concerning the method of financing 33 the retirement system, is amended by increasing the employee 34 contribution rate from 9.4 percent of pay to 9.64 percent of 35 -11- LSB 6363YC (6) 90 jm/ns 11/ 13

H.F. _____ pay beginning July 1, 2024. 1 Code section 411.15, concerning cities’ requirement to 2 provide hospitalization and medical attention for injuries 3 or diseases while on duty, is amended to provide that such 4 attention shall also be provided for injuries arising out 5 of and in the course of employment. The Code section is 6 further amended to provide that cities shall continue to 7 provide hospitalization and medical attention for injuries or 8 diseases while on duty for members or beneficiaries receiving 9 any retirement allowance under Code section 411.6 and not 10 just an accidental disability retirement allowance under 11 Code section 411.6(6). The Code section also provides that 12 disease for purposes of providing medical attention under 13 this Code section shall mean heart disease, any disease of 14 the lungs or respiratory tract, and cancer or infectious 15 disease, all of which shall be presumed to have been contracted 16 while on active duty. The Code section is further amended 17 to provide that a member shall not be required to pay the 18 cost of hospital, nursing, and medical attention required, 19 including payment of any costs or premiums associated with any 20 insurance policy providing coverage. The bill further provides 21 that to be provided the cost of the hospital, nursing, and 22 medical attention, the city shall have actual knowledge of the 23 occurrence of an injury or disease or be provided notice of 24 the occurrence of an injury or disease on behalf of a member 25 or beneficiary within 90 days from the date of the occurrence 26 of the injury or disease. The bill provides that an action to 27 require the city to provide the cost of the medical attention 28 shall not be maintained unless the action is commenced before 29 the later of two years from the date of the occurrence of the 30 injury or disease or two years from the date the city denies a 31 claim to provide medical attention. However, a city shall not 32 be responsible for any claim or action for a newly discovered 33 work-related injury which is filed after three years from the 34 last date of employment of the member. 35 -12- LSB 6363YC (6) 90 jm/ns 12/ 13

H.F. _____ DIVISION II —— INDIVIDUAL INCOME TAX EXEMPTION —— SURVIVING 1 SPOUSE —— PENSIONS. Under current law, pension and retirement 2 pay are exempt from the individual income tax if the individual 3 is disabled, 55 years of age or older, or is the surviving 4 spouse of an individual or is a survivor having an insurable 5 interest in an individual, who would have qualified for the 6 pension or retirement pay exemption. However, a surviving 7 spouse or survivor with an insurable interest does not qualify 8 for this exemption unless the surviving spouse or survivor is 9 also disabled or 55 years of age. 10 The bill exempts the pension amount of a surviving spouse who 11 is not disabled or 55 years of age or older from the individual 12 income tax, if the pension amount is provided pursuant to Code 13 section 97B.49B (protection occupation) or 97B.49C (sheriffs 14 and deputy sheriffs), or Code chapter 97A (POR), 410 (fire 15 fighters and police officers), or 411 (MFPRSI). 16 The bill preserves current law for an individual who is not 17 disabled or 55 years of age or older who receives other pension 18 or retirement pay as a surviving spouse or as a survivor with 19 an insurable interest in an individual who would have qualified 20 for the exemption for the tax year. Under current law, such an 21 individual may only exclude the amount received from a pension 22 or retirement plan in the tax year as a result of the death of 23 the decedent. 24 This division applies retroactively for tax years beginning 25 on or after January 1, 2024. 26 -13- LSB 6363YC (6) 90 jm/ns 13/ 13