House Study Bill 54 - IntroducedA Bill ForAn Act 1concerning benefits relating to members of the municipal
2fire and police retirement system, and including effective
3date and retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 411.1, subsection 11, Code 2021, is
2amended to read as follows:
   311.  “Infectious disease” means HIV or AIDS as defined
4in section 141A.1, all strains of hepatitis, meningococcal
5meningitis, and mycobacterium tuberculosis, blood borne
6contagious diseases, and any other disease or virus determined
7to be life-threatening to a person exposed to the disease or
8virus that has been declared a pandemic, epidemic, or public
9health emergency by the federal government, governor, or local
10public health authorities
.
11   Sec. 2.  Section 411.1, subsection 14, Code 2021, is amended
12by striking the subsection and inserting in lieu thereof the
13following:
   1414.  “Member in good standing” means any member in service
15who has not been terminated by the employing city of the
16member pursuant to section 400.18 or 400.19. Termination
17procedures initiated by the chief of police or chief of the
18fire department pursuant to section 400.19 shall not become
19final or adversely impact a member’s status as a member in
20good standing until all appeals provided by an applicable
21collective bargaining agreement or by law have been exhausted.
22Disciplinary action other than discharge shall not adversely
23affect a member’s status as a member in good standing.
24   Sec. 3.  Section 411.1, Code 2021, is amended by adding the
25following new subsection:
26   NEW SUBSECTION.  15A.  “Ordinary disability beneficiary”
27means a member retired on an ordinary disability retirement
28benefit pursuant to section 411.6, subsection 3, for five years
29or less.
30   Sec. 4.  Section 411.6, subsection 5, paragraphs a and b,
31Code 2021, are amended to read as follows:
   32a.  Upon application to the system, of a member in good
33standing, of an ordinary disability beneficiary, or of the
34chief of the police or fire departments, respectively, any
35member in good standing or ordinary disability beneficiary
-1-1 who has become totally and permanently incapacitated for duty
2as the natural and proximate result of an injury or disease
3incurred in or aggravated by the actual performance of duty
4at some definite time and place or arising out of and in the
5course of the employment
, or while acting pursuant to order,
6outside of the city by which the member is regularly employed,
7shall be retired by the system if the medical board certifies
8that the member or ordinary disability beneficiary is mentally
9or physically incapacitated for further performance of duty,
10that the incapacity is likely to be permanent, and that the
11member or ordinary disability beneficiary should be retired.
12However, if a person’s membership in the system first commenced
13on or after July 1, 1992, the member or ordinary disability
14beneficiary
shall not be eligible for benefits with respect to
15a disability which would not exist, but for a medical condition
16that was known to exist on the date that membership commenced.
17A medical condition shall be deemed to have been known to exist
18on the date that membership commenced if the medical condition
19is reflected in any record or document completed or obtained
20in accordance with the system’s medical protocols pursuant to
21section 400.8, or in any other record or document obtained
22pursuant to an application for disability benefits from the
23system, if such record or document existed prior to the date
24membership commenced. A member who is denied a benefit under
25this subsection, by reason of a finding by the medical board
26that the member is not mentally or physically incapacitated
27for the further performance of duty, shall be entitled to
28be restored to active service in the same position held
29immediately prior to the application for disability benefits.
   30b.  If a member in service or the chief of the police or
31fire departments becomes incapacitated for duty as a natural
32or proximate result of an injury or disease incurred in or
33aggravated by the actual performance of duty at some definite
34time or place
 or arising out of or in the course of the
35employment,
or while acting, pursuant to order, outside the
-2-1city by which the member is regularly employed, the member,
2upon being found to be temporarily incapacitated following a
3medical examination as directed by the city, is entitled to
4receive the member’s full pay and allowances from the city’s
5general fund or trust and agency fund until reexamined as
6directed by the city and found to be fully recovered or until
7the city determines that the member is likely to be permanently
8disabled. If the temporary incapacity of a member continues
9more than sixty days, or if the city expects the incapacity
10to continue more than sixty days, the city shall notify the
11system of the temporary incapacity. Upon notification by a
12city, the system may refer the matter to the medical board for
13review and consultation with the member’s treating physician
14during the temporary incapacity. Except as provided by this
15paragraph, the board of trustees of the statewide system has no
16jurisdiction over these matters until the city determines that
17the disability is likely to be permanent.
18   Sec. 5.  Section 411.6, subsection 5, paragraph c,
19subparagraph (1), Code 2021, is amended to read as follows:
   20(1)  Disease under this subsection shall mean heart disease
21or any disease of the lungs or respiratory tract and shall
22be presumed to have been contracted while on active duty as
23a result of strain, or contact with or the inhalation of
 24respiratory droplets, noxious fumes, poison, or gases.
25   Sec. 6.  Section 411.6, subsection 5, Code 2021, is amended
26by adding the following new paragraph:
27   NEW PARAGRAPH.  0d.  Disease under this subsection shall
28also mean any incapacitating mental disorder arising out of
29and in the course of the employment, or while acting, pursuant
30to order, outside the city by which the member is regularly
31employed. A disease shall qualify as an incapacitating mental
32disorder irrespective of the absence of similar effects on
33other members.
34   Sec. 7.  Section 411.6, subsection 6, Code 2021, is amended
35by adding the following new paragraph:
-3-1   NEW PARAGRAPH.  d.  (1)  Upon a determination on or after
2July 1, 2020, that an ordinary disability beneficiary is
3entitled to a retirement for accidental disability, the
4beneficiary shall receive an accidental disability retirement
5allowance which shall consist of a pension in an amount that is
6equal to the greater of sixty percent of the member’s average
7final compensation or the retirement allowance that the member
8would receive under subsection 2 if the member had attained
9fifty-five years of age, or an amount equal to the ordinary
10disability retirement allowance previously received by the
11beneficiary, whichever is greater.
   12(2)  An accidental disability allowance under this paragraph
13shall commence effective the first day of the first month
14following the determination that the ordinary disability
15beneficiary is entitled to a retirement for accidental
16disability.
17   Sec. 8.  Section 411.6, subsection 9, paragraph a,
18subparagraph (1), Code 2021, is amended to read as follows:
   19(1)  If, upon the receipt of evidence and proof from the
20chief of the police or fire department that the death of a
21member in service was the natural and proximate result of an
22injury or disease incurred in or aggravated by the actual
23performance of duty at some definite time and place or arising
24out of and in the course of the employment
, or while acting
25pursuant to order, outside of the city by which the member is
26regularly employed, the system decides that death was so caused
27in the performance of duty, there shall be paid, in lieu of the
28ordinary death benefit provided in subsection 8, an accidental
29death benefit as set forth in this subsection.
30   Sec. 9.  Section 411.6, subsection 16, Code 2021, is amended
31by adding the following new paragraph:
32   NEW PARAGRAPH.  d.  A person otherwise eligible to receive an
33ordinary or accidental disability retirement benefit under this
34chapter shall not be eligible to receive such a benefit if the
35person is subsequently terminated or removed by the employing
-4-1city of the person pursuant to section 400.18 or 400.19, or
2other comparable process. Upon determination of ineligibility
3pursuant to this paragraph, the person’s entitlement to a
4disability benefit under this chapter shall terminate and any
5disability retirement allowance received by such a person must
6be returned to the system together with interest earned on the
7disability retirement allowance calculated at a rate determined
8by the system. However, the determination of ineligibility
9as provided under this paragraph may be waived for good cause
10as determined by the board. The burden of establishing good
11cause is on the person who received the disability retirement
12allowance.
13   Sec. 10.  Section 411.8, subsection 1, paragraph f,
14subparagraph (8), Code 2021, is amended to read as follows:
   15(8)  Beginning July 1, 1996, and each fiscal year thereafter,
16an amount equal to the member’s contribution rate times each
17member’s compensation shall be paid to the fund from the
18earnable compensation of the member. For the purposes of this
19subparagraph, the member’s contribution rate shall be nine
20and thirty-five hundredths percent or, beginning July 1, 2009
21
 until June 30, 2009, nine and four-tenths percent until June
2230, 2020, or, beginning July 1, 2020, nine and fifty-five
23hundredths percent
. However, the system shall increase the
24member’s contribution rate as necessary to cover any increase
25in cost to the system resulting from statutory changes which
26are enacted by any session of the general assembly meeting
27after January 1, 1991, if the increase cannot be absorbed
28within the contribution rates otherwise established pursuant to
29this paragraph, but subject to a maximum employee contribution
30rate of eleven and three-tenths percent or, beginning July
311, 2009, eleven and thirty-five hundredths percent. The
32contribution rate increases specified in 1994 Iowa Acts, ch.
331183, pursuant to this chapter and chapter 97A shall be the
34only member contribution rate increases for these systems
35resulting from the statutory changes enacted in 1994 Iowa
-5-1Acts, ch.1183, and shall apply only to the fiscal periods
2specified in 1994 Iowa Acts, ch.1183. After the employee
3contribution reaches eleven and three-tenths percent or eleven
4and thirty-five hundredths percent, as applicable, sixty
5percent of the additional cost of such statutory changes shall
6be paid by employers under paragraph “c” and forty percent
7of the additional cost shall be paid by employees under this
8paragraph.
9   Sec. 11.  Section 411.15, Code 2021, is amended to read as
10follows:
   11411.15  Hospitalization and medical attention.
   121.   a.  Cities shall provide hospital, nursing, and medical
13attention for the members of the police and fire departments
14of the cities, when injured while in the performance of their
15duties as members of such department, and or for injuries and
16diseases arising out of and in the course of the employment.

   17b.   Citiesshall continue to provide hospital, nursing, and
18medical attention for injuries or diseases incurred while in
19the performance of their duties or arising out of and in the
20course of the employment
for members or beneficiaries receiving
21a retirement allowance under section 411.6, subsection 6.
   222.   a.  Cities may fund the cost of the hospital, nursing,
23and medical attention required by this section through the
24purchase of insurance, by self-insuring the obligation, or
25through payment of moneys into a local government risk pool
26established for the purpose of covering the costs associated
27with the requirements of this section. However, the cost of
28the hospital, nursing, and medical attention required by this
29section shall not be funded through an employee-paid health
30insurance policy.

   31b.  A member or beneficiary shall not be required to pay the
32cost of the hospital, nursing, and medical attention required
33by this section, including but not limited to any costs
34or premiums associated with any insurance policy providing
35coverage for the hospital, nursing, and medical attention.
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   1c.  The cost of the hospital, nursing, and medical attention
2required by this section shall be paid from moneys held in a
3trust and agency fund established pursuant to section 384.6,
4or out of the appropriation for the department to which the
5injured person belongs or belonged; provided that any amounts
6received by the injured person from any other source for such
7specific purposes, shall be deducted from the amount paid by
8the city under the provisions of this section.
   93.  a.  For purposes of this subsection, “date of the
10occurrence of the injury or disease”
means the date that the
11member or beneficiary knew or should have known that the injury
12or disease was work-related.
   13b.  To be provided the cost of the hospital, nursing, and
14medical attention required by this section, the city or the
15city’s representative shall have actual knowledge of the
16occurrence of an injury or disease or be provided notice of the
17occurrence of an injury or disease on behalf of a member or
18beneficiary within ninety days from the date of the occurrence
19of the injury or disease.
   20c.  An action to require the city to provide the cost of
21the hospital, nursing, and medical attention required by this
22section shall not be maintained unless the action is commenced
23within two years from the date of the occurrence of the injury
24or disease or two years from the date the city denies a claim to
25provide hospital, nursing, and medical attention required by
26this section, whichever last occurs.
27   Sec. 12.  NEW SECTION.  411.15A  Infectious diseases —
28quarantine — employment rights.
   291.  A member of the police or fire department of a city
30shall be granted a leave of absence if the member may have been
31exposed to an infectious disease while in the performance of
32their duty as a member of such department and is required or
33recommended to quarantine for a period of time or place of
34isolation, including isolation at home, by the city or the
35member’s health care provider, in accordance with guidance or
-7-1orders from the centers for disease control and prevention of
2the United States department of health and human services,
3department of public health, the governor, or a local public
4health authority.
   52.  A member who is granted a leave of absence under this
6section shall receive leave without loss of seniority, pay,
7vacation time, personal days, sick leave, insurance and health
8coverage benefits, or earned overtime accumulation. The member
9shall be compensated at the employee’s regular rate of pay for
10those regular work hours during which the employee is absent
11from work from the city’s general fund or trust and agency
12fund.
13   Sec. 13.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection
143, shall not apply to the section of this Act enacting section
15411.15A.
16   Sec. 14.  RETROACTIVE APPLICABILITY.  The following apply
17retroactively to January 1, 2020, for purposes of section
18411.15A as enacted in this Act:
   191.  The section of this Act amending section 411.1,
20subsection 11.
   212.  The section of this Act enacting section 411.15A.
22   Sec. 15.  EFFECTIVE DATE.  The following, being deemed of
23immediate importance, take effect upon enactment:
   241.  The section of this Act amending section 411.1,
25subsection 11.
   262.  The section of this Act enacting section 411.15A.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
   30This bill concerns benefits to members under the municipal
31fire and police retirement system established under Code
32chapter 411.
   33Code section 411.1, concerning definitions, is amended. The
34bill defines an “ordinary disability beneficiary” as a member
35retired on an ordinary disability retirement benefit for five
-8-1years or less. The bill also amends the definition of “member
2in good standing” to mean any member in service who has not
3been terminated by the employing city of the member. The bill
4also amends the definition of “infectious disease” to include
5blood borne contagious diseases and any other disease or virus
6determined to be life-threatening that has been declared a
7pandemic, epidemic, or public health emergency. The amended
8definition of “infectious disease” takes effect upon enactment
9and applies retroactively to January 1, 2020, for purposes of
10the provision of new Code section 411.15A as provided in the
11bill.
   12Code section 411.6(5), concerning accidental disability
13benefits, is amended to allow an ordinary disability
14beneficiary to make application to the retirement system for an
15accidental disability retirement benefit. The subsection is
16further amended to provide that a person is entitled to pay and
17allowances if determined to be temporarily incapacitated prior
18to an accidental disability retirement determination and for
19an accidental disability retirement if the person has become
20totally and permanently incapacitated as a result of injury and
21disease arising out of and in the course of the employment and
22by the actual performance of duty without regard to whether
23that actual performance of duty was at some definite time and
24place. The subsection is also amended to provide that disease
25for purposes of an accidental disability benefit also means any
26incapacitating mental disorder arising out of and in the course
27of the employment, or while acting, pursuant to order, outside
28the city by which the member is regularly employed.
   29Code section 411.6(6), providing for a retirement allowance
30upon retirement for accidental disability, is amended to
31provide that an ordinary disability beneficiary who is
32determined to be entitled to a retirement for accidental
33disability shall receive a retirement allowance that shall
34consist of the greater of an amount as determined for members
35receiving an accidental disability retirement or an amount
-9-1equal to the disability retirement allowance previously
2received by the beneficiary.
   3Code section 411.6(9), concerning accidental death benefits,
4is amended to provide that an accidental death benefit shall
5also be paid if the death was as a result of injury and disease
6arising out of and in the course of the employment or by the
7actual performance of duty without regard to whether that
8actual performance of duty was at some definite time and place.
   9Code section 411.6(16), concerning ineligibility for
10disability benefits, is amended to provide that a person
11otherwise eligible to receive a disability retirement shall
12not be eligible if the person is terminated or removed by the
13employing city of the person pursuant to Code section 400.18
14or 400.19, or other comparable process. The bill provides for
15the repayment of benefits paid prior to the determination of
16ineligibility.
   17Code section 411.8, concerning the method of financing
18the retirement system, is amended by increasing the employee
19contribution rate from 9.4 percent of pay to 9.55 percent of
20pay beginning July 1, 2020.
   21Code section 411.15, concerning cities’ requirement to
22provide hospitalization and medical attention for injuries
23or diseases while on duty, is amended to provide that such
24attention shall also be provided for injuries arising out of
25and in the course of employment. The Code section is further
26amended to provide that cities shall continue to provide
27hospitalization and medical attention for injuries or diseases
28while on duty for members or beneficiaries receiving any
29retirement allowance under Code section 411.6 and not just an
30accidental disability retirement allowance under Code section
31411.6, subsection 6. The Code section is further amended
32to provide that a member shall not be required to pay the
33cost of hospital, nursing, and medical attention required,
34including payment of any costs or premiums associated with any
35insurance policy providing coverage. The bill further provides
-10-1that to be provided the cost of the hospital, nursing, and
2medical attention, the city shall have actual knowledge of the
3occurrence of an injury or disease or be provided notice of
4the occurrence of an injury or disease on behalf of a member
5or beneficiary within 90 days from the date of the occurrence
6of the injury or disease. The bill provides that an action to
7require the city to provide the cost of the hospital, nursing,
8and medical attention shall not be maintained unless the action
9is commenced within two years from the date of the occurrence
10of the injury or disease or two years from the date the city
11denies a claim to provide hospital, nursing, and medical
12attention, whichever last occurs.
   13New Code section 411.15A provides that a member of a police
14or fire department of a city shall be granted a leave of
15absence without loss of pay and benefits if the member may have
16been exposed to an infectious disease and is required to be
17quarantined. The new Code section provides that compensation
18provided under this Code section shall be from the city’s
19general fund or trust and agency fund. This new Code section
20takes effect upon enactment and applies retroactively to
21January 1, 2020. In addition, this new Code section may
22include a state mandate as defined in Code section 25B.3.
23The bill makes inapplicable Code section 25B.2, subsection
243, to this new Code section which would relieve a political
25subdivision from complying with a state mandate if funding for
26the cost of the state mandate is not provided or specified.
27Therefore, political subdivisions are required to comply with
28any state mandate included in this new Code section.
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