H.F. 2680 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- HF 2680 (2) 90 jm/ns/md 1/ 10

H.F. 2680 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, Code 2024, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 8A. “Cost-sharing” means any coverage 9 limit, copayment, coinsurance, deductible, or other 10 out-of-pocket cost obligation related to an injury or disease 11 incurred while in the performance of duties. 12 Sec. 3. Section 411.1, subsection 14, Code 2024, is amended 13 by striking the subsection and inserting in lieu thereof the 14 following: 15 14. “Member in good standing” means any member in service 16 who has not been terminated by the employing city of the 17 member pursuant to section 400.18 or 400.19. Termination 18 procedures initiated by the chief of police or chief of the 19 fire department pursuant to section 400.19 shall not become 20 final or adversely impact a member’s status as a member in 21 good standing until all appeals provided by an applicable 22 collective bargaining agreement or by law have been exhausted. 23 Disciplinary action other than discharge shall not adversely 24 affect a member’s status as a member in good standing. 25 Sec. 4. Section 411.1, Code 2024, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 15A. “Ordinary disability beneficiary” 28 means a member retired on an ordinary disability retirement 29 benefit pursuant to section 411.6, subsection 3, for three 30 years or less. 31 Sec. 5. Section 411.6, subsection 5, paragraphs a and b, 32 Code 2024, are amended to read as follows: 33 a. Upon application to the system , of a member in good 34 standing , of an ordinary disability beneficiary, or of the 35 -2- HF 2680 (2) 90 jm/ns/md 2/ 10

H.F. 2680 chief of the police or fire departments, respectively, any 1 member in good standing or ordinary disability beneficiary 2 who has become totally and permanently incapacitated for duty 3 as the natural and proximate result of an injury or disease 4 incurred in or aggravated by the actual performance of duty 5 at some definite time and place or arising out of and in the 6 course of employment , or while acting , pursuant to order, 7 outside of the city by which the member is regularly employed, 8 shall be retired by the system , or may have a retirement 9 for an ordinary disability converted to a retirement for an 10 accidental disability, if the medical board certifies that 11 the member or ordinary disability beneficiary is mentally or 12 physically incapacitated for further performance of duty, 13 that the incapacity is likely to be permanent, and that the 14 member should be retired or should have a retirement for an 15 ordinary disability converted to a retirement for an accidental 16 disability . However, if a person’s membership in the system 17 first commenced on or after July 1, 1992, the member or 18 ordinary disability beneficiary shall not be eligible for 19 benefits with respect to a disability which would not exist, 20 but for a medical condition that was known to exist on the 21 date that membership commenced. A medical condition shall be 22 deemed to have been known to exist on the date that membership 23 commenced if the medical condition is reflected in any record 24 or document completed or obtained in accordance with the 25 system’s medical protocols pursuant to section 400.8 , or in any 26 other record or document obtained pursuant to an application 27 for disability benefits from the system, if such record or 28 document existed prior to the date membership commenced. A 29 member who is denied a benefit under this subsection , by 30 reason of a finding by the medical board that the member is 31 not mentally or physically incapacitated for the further 32 performance of duty, shall be entitled to be restored to active 33 service in the same position held immediately prior to the 34 application for disability benefits. 35 -3- HF 2680 (2) 90 jm/ns/md 3/ 10

H.F. 2680 b. If a member in service or the chief of the police or 1 fire departments becomes incapacitated for duty as a natural 2 or proximate result of an injury or disease incurred in or 3 aggravated by the actual performance of duty at some definite 4 time or place or arising out of or in the course of the 5 employment, or while acting, pursuant to order, outside the 6 city by which the member is regularly employed, the member, 7 upon being found to be temporarily incapacitated following a 8 medical examination as directed by the city, is entitled to 9 receive the member’s full pay and allowances from the city’s 10 general fund or trust and agency fund until reexamined as 11 directed by the city and found to be fully recovered or until 12 the city determines that the member is likely to be permanently 13 disabled. If the temporary incapacity of a member continues 14 more than sixty days, or if the city expects the incapacity 15 to continue more than sixty days, the city shall notify the 16 system of the temporary incapacity. Upon notification by a 17 city, the system may refer the matter to the medical board for 18 review and consultation with the member’s treating physician 19 during the temporary incapacity. Except as provided by this 20 paragraph, the board of trustees of the statewide system has no 21 jurisdiction over these matters until the city determines that 22 the disability is likely to be permanent. 23 Sec. 6. Section 411.6, subsection 5, Code 2024, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . 0d. To establish that a mental incapacity 26 occurred as the natural and proximate result of an injury or 27 disease incurred in or aggravated by the actual performance of 28 duty or arising out of and in the course of the employment, or 29 while acting, pursuant to order, outside of the city by which 30 the member is regularly employed, the member must demonstrate 31 that the mental incapacity is traceable to a readily 32 identifiable work event constituting a manifest happening of 33 a sudden traumatic nature from an unexpected cause or unusual 34 strain in the workplace. Whether an incident is traumatic, 35 -4- HF 2680 (2) 90 jm/ns/md 4/ 10

H.F. 2680 unexpected, or unusual is determined by comparing the incident, 1 and not the effect on the member, to the experiences of other 2 police officers or fire fighters in Iowa. A member must be 3 able to trace their mental injury to a specific event or events 4 in the workplace to be eligible for accidental disability 5 benefits. 6 Sec. 7. Section 411.6, subsection 6, Code 2024, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . d. (1) Upon a determination on or after 9 July 1, 2024, that an ordinary disability beneficiary is 10 entitled to a retirement for accidental disability, the 11 beneficiary shall receive an accidental disability retirement 12 allowance which shall consist of a pension in an amount that is 13 equal to the greater of sixty percent of the member’s average 14 final compensation or the retirement allowance that the member 15 would receive under subsection 2 if the member had attained 16 fifty-five years of age, or an amount equal to the ordinary 17 disability retirement allowance previously received by the 18 beneficiary, whichever is greater. 19 (2) An accidental disability allowance under this paragraph 20 shall commence effective the first day of the first month 21 following the determination that the ordinary disability 22 beneficiary is entitled to a retirement for accidental 23 disability. 24 Sec. 8. Section 411.6, subsection 9, paragraph a, 25 subparagraph (1), Code 2024, is amended to read as follows: 26 (1) If, upon the receipt of evidence and proof from the 27 chief of the police or fire department that the death of a 28 member in service was the natural and proximate result of an 29 injury or disease incurred in or aggravated by the actual 30 performance of duty at some definite time and place or arising 31 out of and in the course of the employment , or while acting , 32 pursuant to order, outside of the city by which the member is 33 regularly employed, the system decides that death was so caused 34 in the performance of duty, there shall be paid, in lieu of the 35 -5- HF 2680 (2) 90 jm/ns/md 5/ 10

H.F. 2680 ordinary death benefit provided in subsection 8 , an accidental 1 death benefit as set forth in this subsection . 2 Sec. 9. Section 411.6, subsection 16, Code 2024, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . d. A person otherwise eligible to receive 5 an ordinary or accidental disability retirement benefit under 6 this chapter shall not be eligible to receive such a benefit 7 if the person is subsequently removed, discharged, demoted, 8 or suspended pursuant to section 400.18 or 400.19, or other 9 comparable process. Upon determination of ineligibility 10 pursuant to this paragraph, the person’s entitlement to a 11 disability benefit under this chapter shall terminate and any 12 disability retirement allowance received by such a person must 13 be returned to the system together with interest earned on the 14 disability retirement allowance calculated at a rate determined 15 by the system. However, the determination of ineligibility 16 as provided under this paragraph may be waived for good cause 17 as determined by the board. The burden of establishing good 18 cause is on the person who received the disability retirement 19 allowance. 20 Sec. 10. Section 411.8, subsection 1, paragraph f, 21 subparagraph (8), Code 2024, is amended to read as follows: 22 (8) Beginning July 1, 1996, and each fiscal year thereafter, 23 an amount equal to the member’s contribution rate times each 24 member’s compensation shall be paid to the fund from the 25 earnable compensation of the member. For the purposes of this 26 subparagraph, the member’s contribution rate shall be nine and 27 thirty-five hundredths percent or, beginning July 1 until June 28 30 , 2009, nine and four-tenths percent until June 30, 2024, 29 and, beginning July 1, 2024, nine and fifty-five hundredths 30 percent . However, the system shall increase the member’s 31 contribution rate as necessary to cover any increase in cost 32 to the system resulting from statutory changes which are 33 enacted by any session of the general assembly meeting after 34 January 1, 1991, if the increase cannot be absorbed within 35 -6- HF 2680 (2) 90 jm/ns/md 6/ 10

H.F. 2680 the contribution rates otherwise established pursuant to this 1 paragraph, but subject to a maximum employee contribution rate 2 of eleven and three-tenths percent or, beginning July 1, 2009, 3 eleven and thirty-five hundredths percent. The contribution 4 rate increases specified in 1994 Iowa Acts, ch. 1183, pursuant 5 to this chapter and chapter 97A shall be the only member 6 contribution rate increases for these systems resulting from 7 the statutory changes enacted in 1994 Iowa Acts, ch. 1183, and 8 shall apply only to the fiscal periods specified in 1994 Iowa 9 Acts, ch. 1183. After the employee contribution reaches eleven 10 and three-tenths percent or eleven and thirty-five hundredths 11 percent, as applicable, sixty percent of the additional cost 12 of such statutory changes shall be paid by employers under 13 paragraph “c” and forty percent of the additional cost shall be 14 paid by employees under this paragraph. 15 Sec. 11. Section 411.15, Code 2024, is amended to read as 16 follows: 17 411.15 Hospitalization and medical attention. 18 1. a. Cities shall provide hospital, nursing, and physical 19 or mental medical attention for the members of the police and 20 fire departments of the cities, when injured while in the 21 performance of their duties as members of such department , and 22 or for injuries and diseases arising out of and in the course 23 of the employment. 24 b. Cities shall continue to provide hospital, nursing, and 25 physical or mental medical attention for injuries or diseases 26 incurred while in the performance of their duties or arising 27 out of and in the course of the employment for members or 28 beneficiaries receiving a retirement allowance under section 29 411.6 , subsection 6 . 30 c. Disease under this subsection shall mean heart disease 31 or any disease of the lungs or respiratory tract and shall be 32 presumed to have been contracted while on active duty as a 33 result of strain or the inhalation of noxious fumes, poison, or 34 gases. Disease under this subsection shall also mean cancer 35 -7- HF 2680 (2) 90 jm/ns/md 7/ 10

H.F. 2680 or infectious disease, both as defined in section 411.1, and 1 shall be presumed to have been contracted while on active duty 2 as a result of that duty. 3 2. a. Cities may fund the cost of the hospital, nursing, 4 and physical or mental medical attention required by this 5 section through the purchase of insurance, including by 6 processing claims concerning cancer, heart, and lung or 7 respiratory issues described in section 411.6, subsection 5, 8 paragraph “c” , through their group health insurance plan as 9 long as the member is not responsible for any cost-sharing; by 10 self-insuring the obligation , ; or through payment of moneys 11 into a local government risk pool established for the purpose 12 of covering the costs associated with the requirements of this 13 section . However, the cost of the hospital, nursing, and 14 physical or mental medical attention required by this section 15 shall not be funded through an employee-paid health insurance 16 policy , except as otherwise specified in this subsection. 17 Cancers, heart disease, and lung or respiratory diseases 18 described in section 411.6, subsection 5, paragraph “c” , shall 19 not be deemed work-related for purposes of coverage through the 20 employer’s group health insurance plan . 21 b. A member or beneficiary shall not be required to pay the 22 cost of the hospital, nursing, and physical or mental medical 23 attention required by this section, including but not limited 24 to any costs or premiums associated with any insurance policy 25 providing coverage for the hospital, nursing, and physical or 26 mental medical attention. 27 c. The cost of the hospital, nursing, and physical or mental 28 medical attention required by this section shall be paid from 29 moneys held in a trust and agency fund established pursuant to 30 section 384.6 , or out of the appropriation for the department 31 to which the injured person belongs or belonged; provided that 32 any amounts received by the injured person from any other 33 source for such specific purposes, shall be deducted from the 34 amount paid by the city under the provisions of this section . 35 -8- HF 2680 (2) 90 jm/ns/md 8/ 10

H.F. 2680 3. a. For purposes of this subsection, “date of the 1 occurrence of the injury or disease” means the date that the 2 member or beneficiary knew or should have known that the injury 3 or disease was work-related. 4 b. To be provided the cost of the hospital, nursing, and 5 physical or mental medical attention required by this section, 6 the city or the city’s representative shall have actual 7 knowledge of the occurrence of an injury or disease or be 8 provided notice of the occurrence of an injury or disease on 9 behalf of a member or beneficiary within ninety days from the 10 date of the occurrence of the injury or disease. 11 c. (1) Except as provided in subparagraph (2), an action to 12 require the city to provide the cost of hospital, nursing, and 13 physical or mental medical attention required by this section 14 shall not be maintained unless the action is commenced before 15 the later of any of the following: 16 (a) Two years from the date of the occurrence of the injury 17 or disease. 18 (b) Two years from the date the city denies a claim to 19 provide hospital, nursing, and physical or mental medical 20 attention required by this section. 21 (2) A city shall not be responsible for any claim or action 22 for a newly discovered work-related injury arising under this 23 chapter which is filed after three years from the last date of 24 employment of the member. 25 DIVISION II 26 INDIVIDUAL INCOME TAX EXEMPTION —— SURVIVING SPOUSE —— PENSIONS 27 Sec. 12. Section 422.7, subsection 19, paragraph a, Code 28 2024, is amended to read as follows: 29 a. Subtract, to the extent included, the total amount 30 received from a governmental or other pension or retirement 31 plan, including defined benefit or defined contribution plans, 32 annuities, individual retirement accounts, plans maintained or 33 contributed to by an employer, or maintained or contributed 34 to by a self-employed person as an employer, and deferred 35 -9- HF 2680 (2) 90 jm/ns/md 9/ 10

H.F. 2680 compensation plans or any earnings attributable to the deferred 1 compensation plans received by a person who is disabled, or is 2 fifty-five any of the following: 3 (1) Disabled. 4 (2) Fifty-five years of age or older , or is the . 5 (3) The surviving spouse of an individual or is a survivor 6 having an insurable interest in an individual who would have 7 qualified for the exemption under this subsection for the tax 8 year. 9 Sec. 13. Section 422.7, subsection 19, paragraph c, Code 10 2024, is amended to read as follows: 11 c. (1) A taxpayer who is not disabled or fifty-five years 12 of age or older and who receives a pension or retirement pay 13 amount provided pursuant to section 97B.49B or 97B.49C, or 14 chapter 97A, 410, or 411 as a surviving spouse or as a survivor 15 with an insurable interest in an individual who would have 16 qualified for the exemption for the tax year may only exclude 17 the amount received from a the pension or retirement plan 18 in the tax year as a result of the death of the decedent , 19 regardless of whether the decedent would have qualified for the 20 exemption in the tax year . 21 (2) A taxpayer who is not disabled or fifty-five years of 22 age or older and who receives other pension or retirement pay 23 not specified in subparagraph (1) as a surviving spouse or as a 24 survivor with an insurable interest in an individual who would 25 have qualified for the exemption for the tax year may only 26 exclude the amount received from a pension or retirement plan 27 in the tax year as a result of the death of the decedent. 28 Sec. 14. RETROACTIVE APPLICABILITY. This division of this 29 Act applies retroactively to January 1, 2024, for tax years 30 beginning on or after that date. 31 -10- HF 2680 (2) 90 jm/ns/md 10/ 10