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Senate File 2178 - IntroducedA Bill ForAn Act 1relating to reemployment rights of special service
2members receiving a disability retirement allowance under
3the Iowa public employees retirement system.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 97B.50A, subsection 7, Code 2020, is
2amended to read as follows:
37. Reemployment.
4a. If a member receiving a disability retirement allowance
5is returned to covered employment that is not special service
6employment, the member’s disability retirement allowance shall
7not cease, the member shall again become an active member,
8and shall contribute thereafter at the same rate payable
9by similarly classified members. If a member receiving a
10disability retirement allowance returns to special service
11employment, then the period of time the member received a
12disability retirement allowance shall constitute eligible
13service as defined in section 97B.49B, subsection 1, or
14section 97B.49C, subsection 1, as applicable. Upon subsequent
15retirement, the member’s retirement allowance shall be
16calculated as provided in section 97B.48A.
17b. (1) If a member receiving a disability retirement
18allowance is engaged in a gainful occupation that is not
19covered employment, the member’s disability retirement
20allowance shall be reduced, if applicable, as provided in this
21paragraph. For purposes of this paragraph, “gainful occupation”
22 means employment that is not covered employment or covered
23employment that is not special service employment.
24(2) If the member is engaged in a gainful occupation
25paying more than the difference between the member’s net
26disability retirement allowance and one and one-half times
27the reemployment comparison amount for that member, then the
28amount of the member’s disability retirement allowance shall
29be reduced to an amount such that the member’s net disability
30retirement allowance plus the amount earned by the member shall
31equal one and one-half times the reemployment comparison amount
32for that member.
33(3) The member shall submit sufficient documentation to
34the system to permit the system to determine the member’s net
35disability retirement allowance and earnings from a gainful
-1-1occupation that is not covered employment for the applicable
2year.
3(4) This paragraph does not apply to a member who is
4at least fifty-five years of age and would have completed
5a sufficient number of years of service if the member had
6remained in active special service employment. For purposes
7of this subparagraph, a sufficient number of years of service
8shall be the applicable years of service for a special service
9member as described in section 97B.49B or twenty-two for a
10special service member as described in section 97B.49C.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill concerns reemployment rights of a special service
15member under the Iowa public employees’ retirement system
16(IPERS) receiving a disability retirement allowance.
17Under current law, if a special service member receiving
18a disability retirement allowance under IPERS is returned to
19any covered employment under IPERS, the member’s disability
20retirement allowance shall cease. The bill provides that
21if the member returns to covered employment that is not
22special service employment, the member’s disability retirement
23allowance shall not cease. Current provisions reducing a
24member’s disability retirement allowance based on earnings
25of the member in a gainful occupation are made applicable to
26a return to covered employment that is not special service
27employment under IPERS.
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2members receiving a disability retirement allowance under
3the Iowa public employees retirement system.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 97B.50A, subsection 7, Code 2020, is
2amended to read as follows:
37. Reemployment.
4a. If a member receiving a disability retirement allowance
5is returned to covered employment that is not special service
6employment, the member’s disability retirement allowance shall
7not cease, the member shall again become an active member,
8and shall contribute thereafter at the same rate payable
9by similarly classified members. If a member receiving a
10disability retirement allowance returns to special service
11employment, then the period of time the member received a
12disability retirement allowance shall constitute eligible
13service as defined in section 97B.49B, subsection 1, or
14section 97B.49C, subsection 1, as applicable. Upon subsequent
15retirement, the member’s retirement allowance shall be
16calculated as provided in section 97B.48A.
17b. (1) If a member receiving a disability retirement
18allowance is engaged in a gainful occupation that is not
19covered employment, the member’s disability retirement
20allowance shall be reduced, if applicable, as provided in this
21paragraph. For purposes of this paragraph, “gainful occupation”
22 means employment that is not covered employment or covered
23employment that is not special service employment.
24(2) If the member is engaged in a gainful occupation
25paying more than the difference between the member’s net
26disability retirement allowance and one and one-half times
27the reemployment comparison amount for that member, then the
28amount of the member’s disability retirement allowance shall
29be reduced to an amount such that the member’s net disability
30retirement allowance plus the amount earned by the member shall
31equal one and one-half times the reemployment comparison amount
32for that member.
33(3) The member shall submit sufficient documentation to
34the system to permit the system to determine the member’s net
35disability retirement allowance and earnings from a gainful
-1-1occupation that is not covered employment for the applicable
2year.
3(4) This paragraph does not apply to a member who is
4at least fifty-five years of age and would have completed
5a sufficient number of years of service if the member had
6remained in active special service employment. For purposes
7of this subparagraph, a sufficient number of years of service
8shall be the applicable years of service for a special service
9member as described in section 97B.49B or twenty-two for a
10special service member as described in section 97B.49C.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill concerns reemployment rights of a special service
15member under the Iowa public employees’ retirement system
16(IPERS) receiving a disability retirement allowance.
17Under current law, if a special service member receiving
18a disability retirement allowance under IPERS is returned to
19any covered employment under IPERS, the member’s disability
20retirement allowance shall cease. The bill provides that
21if the member returns to covered employment that is not
22special service employment, the member’s disability retirement
23allowance shall not cease. Current provisions reducing a
24member’s disability retirement allowance based on earnings
25of the member in a gainful occupation are made applicable to
26a return to covered employment that is not special service
27employment under IPERS.
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