House Study Bill 268 - IntroducedA Bill ForAn Act 1relating to benefits concerning members of the municipal
2fire and police retirement system.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 411.1, subsection 14, Code 2021, is
2amended by striking the subsection and inserting in lieu
3thereof the following:
   414.  “Member in good standing” means any member in service
5who has not been terminated by the employing city of the
6member pursuant to section 400.18 or 400.19. Termination
7procedures initiated by the chief of police or chief of the
8fire department pursuant to section 400.19 shall not become
9final or adversely impact a member’s status as a member in
10good standing until all appeals provided by an applicable
11collective bargaining agreement or by law have been exhausted.
12Disciplinary action other than discharge shall not adversely
13affect a member’s status as a member in good standing.
14   Sec. 2.  Section 411.1, Code 2021, is amended by adding the
15following new subsection:
16   NEW SUBSECTION.  15A.  “Ordinary disability beneficiary”
17means a member retired on an ordinary disability retirement
18benefit pursuant to section 411.6, subsection 3, for five years
19or less.
20   Sec. 3.  Section 411.6, subsection 5, paragraphs a and b,
21Code 2021, are amended to read as follows:
   22a.  Upon application to the system, of a member in good
23standing, of an ordinary disability beneficiary, or of the
24chief of the police or fire departments, respectively, any
25member in good standing or ordinary disability beneficiary
26 who has become totally and permanently incapacitated for duty
27as the natural and proximate result of an injury or disease
28incurred in or aggravated by the actual performance of duty
29at some definite time and place or arising out of and in the
30course of the employment
, or while acting pursuant to order,
31outside of the city by which the member is regularly employed,
32shall be retired by the system if the medical board certifies
33that the member or ordinary disability beneficiary is mentally
34or physically incapacitated for further performance of duty,
35that the incapacity is likely to be permanent, and that the
-1-1member or ordinary disability beneficiary should be retired.
2However, if a person’s membership in the system first commenced
3on or after July 1, 1992, the member or ordinary disability
4beneficiary
shall not be eligible for benefits with respect to
5a disability which would not exist, but for a medical condition
6that was known to exist on the date that membership commenced.
7A medical condition shall be deemed to have been known to exist
8on the date that membership commenced if the medical condition
9is reflected in any record or document completed or obtained
10in accordance with the system’s medical protocols pursuant to
11section 400.8, or in any other record or document obtained
12pursuant to an application for disability benefits from the
13system, if such record or document existed prior to the date
14membership commenced. A member who is denied a benefit under
15this subsection, by reason of a finding by the medical board
16that the member is not mentally or physically incapacitated
17for the further performance of duty, shall be entitled to
18be restored to active service in the same position held
19immediately prior to the application for disability benefits.
   20b.  If a member in service or the chief of the police or
21fire departments becomes incapacitated for duty as a natural
22or proximate result of an injury or disease incurred in or
23aggravated by the actual performance of duty at some definite
24time or place
 or arising out of or in the course of the
25employment,
or while acting, pursuant to order, outside the
26city by which the member is regularly employed, the member,
27upon being found to be temporarily incapacitated following a
28medical examination as directed by the city, is entitled to
29receive the member’s full pay and allowances from the city’s
30general fund or trust and agency fund until reexamined as
31directed by the city and found to be fully recovered or until
32the city determines that the member is likely to be permanently
33disabled. If the temporary incapacity of a member continues
34more than sixty days, or if the city expects the incapacity
35to continue more than sixty days, the city shall notify the
-2-1system of the temporary incapacity. Upon notification by a
2city, the system may refer the matter to the medical board for
3review and consultation with the member’s treating physician
4during the temporary incapacity. Except as provided by this
5paragraph, the board of trustees of the statewide system has no
6jurisdiction over these matters until the city determines that
7the disability is likely to be permanent.
8   Sec. 4.  Section 411.6, subsection 5, Code 2021, is amended
9by adding the following new paragraph:
10   NEW PARAGRAPH.  0d.  Disease under this subsection shall
11also mean any incapacitating mental disorder arising out of
12and in the course of the employment, or while acting, pursuant
13to order, outside the city by which the member is regularly
14employed. A disease shall qualify as an incapacitating mental
15disorder irrespective of the absence of similar effects on
16other members.
17   Sec. 5.  Section 411.6, subsection 6, Code 2021, is amended
18by adding the following new paragraph:
19   NEW PARAGRAPH.  d.  (1)  Upon a determination on or after
20July 1, 2021, that an ordinary disability beneficiary is
21entitled to a retirement for accidental disability, the
22beneficiary shall receive an accidental disability retirement
23allowance which shall consist of a pension in an amount that is
24equal to the greater of sixty percent of the member’s average
25final compensation or the retirement allowance that the member
26would receive under subsection 2 if the member had attained
27fifty-five years of age, or an amount equal to the ordinary
28disability retirement allowance previously received by the
29beneficiary, whichever is greater.
   30(2)  An accidental disability allowance under this paragraph
31shall commence effective the first day of the first month
32following the determination that the ordinary disability
33beneficiary is entitled to a retirement for accidental
34disability.
35   Sec. 6.  Section 411.6, subsection 9, paragraph a,
-3-1subparagraph (1), Code 2021, is amended to read as follows:
   2(1)  If, upon the receipt of evidence and proof from the
3chief of the police or fire department that the death of a
4member in service was the natural and proximate result of an
5injury or disease incurred in or aggravated by the actual
6performance of duty at some definite time and place or arising
7out of and in the course of the employment
, or while acting
8pursuant to order, outside of the city by which the member is
9regularly employed, the system decides that death was so caused
10in the performance of duty, there shall be paid, in lieu of the
11ordinary death benefit provided in subsection 8, an accidental
12death benefit as set forth in this subsection.
13   Sec. 7.  Section 411.6, subsection 16, Code 2021, is amended
14by adding the following new paragraph:
15   NEW PARAGRAPH.  d.  A person otherwise eligible to receive an
16ordinary or accidental disability retirement benefit under this
17chapter shall not be eligible to receive such a benefit if the
18person is subsequently terminated or removed by the employing
19city of the person pursuant to section 400.18 or 400.19, or
20other comparable process. Upon determination of ineligibility
21pursuant to this paragraph, the person’s entitlement to a
22disability benefit under this chapter shall terminate and any
23disability retirement allowance received by such a person must
24be returned to the system together with interest earned on the
25disability retirement allowance calculated at a rate determined
26by the system. However, the determination of ineligibility
27as provided under this paragraph may be waived for good cause
28as determined by the board. The burden of establishing good
29cause is on the person who received the disability retirement
30allowance.
31   Sec. 8.  Section 411.8, subsection 1, paragraph f,
32subparagraph (8), Code 2021, is amended to read as follows:
   33(8)  Beginning July 1, 1996, and each fiscal year thereafter,
34an amount equal to the member’s contribution rate times each
35member’s compensation shall be paid to the fund from the
-4-1earnable compensation of the member. For the purposes of this
2subparagraph, the member’s contribution rate shall be nine
3and thirty-five hundredths percent or, beginning July 1, 2009
4
 until June 30, 2009, nine and four-tenths percent until June
530, 2021, and, beginning July 1, 2021, nine and fifty-five
6hundreths percent
. However, the system shall increase the
7member’s contribution rate as necessary to cover any increase
8in cost to the system resulting from statutory changes which
9are enacted by any session of the general assembly meeting
10after January 1, 1991, if the increase cannot be absorbed
11within the contribution rates otherwise established pursuant to
12this paragraph, but subject to a maximum employee contribution
13rate of eleven and three-tenths percent or, beginning July
141, 2009, eleven and thirty-five hundredths percent. The
15contribution rate increases specified in 1994 Iowa Acts, ch.
161183, pursuant to this chapter and chapter 97A shall be the
17only member contribution rate increases for these systems
18resulting from the statutory changes enacted in 1994 Iowa
19Acts, ch.1183, and shall apply only to the fiscal periods
20specified in 1994 Iowa Acts, ch.1183. After the employee
21contribution reaches eleven and three-tenths percent or eleven
22and thirty-five hundredths percent, as applicable, sixty
23percent of the additional cost of such statutory changes shall
24be paid by employers under paragraph “c” and forty percent
25of the additional cost shall be paid by employees under this
26paragraph.
27   Sec. 9.  Section 411.15, Code 2021, is amended to read as
28follows:
   29411.15  Hospitalization and medical attention.
   301.   a.  Cities shall provide hospital, nursing, and medical
31attention for the members of the police and fire departments
32of the cities, when injured while in the performance of their
33duties as members of such department, and or for injuries and
34diseases arising out of and in the course of the employment.

   35b.   Citiesshall continue to provide hospital, nursing, and
-5-1medical attention for injuries or diseases incurred while in
2the performance of their duties or arising out of and in the
3course of the employment
for members or beneficiaries receiving
4a retirement allowance under section 411.6, subsection 6.
   52.   a.  Cities may fund the cost of the hospital, nursing,
6and medical attention required by this section through the
7purchase of insurance, by self-insuring the obligation, or
8through payment of moneys into a local government risk pool
9established for the purpose of covering the costs associated
10with the requirements of this section. However, the cost of
11the hospital, nursing, and medical attention required by this
12section shall not be funded through an employee-paid health
13insurance policy.

   14b.  A member or beneficiary shall not be required to pay the
15cost of the hospital, nursing, and medical attention required
16by this section, including but not limited to any costs
17or premiums associated with any insurance policy providing
18coverage for the hospital, nursing, and medical attention.
   19c.  The cost of the hospital, nursing, and medical attention
20required by this section shall be paid from moneys held in a
21trust and agency fund established pursuant to section 384.6,
22or out of the appropriation for the department to which the
23injured person belongs or belonged; provided that any amounts
24received by the injured person from any other source for such
25specific purposes, shall be deducted from the amount paid by
26the city under the provisions of this section.
   273.  a.  For purposes of this subsection, “date of the
28occurrence of the injury or disease”
means the date that the
29member or beneficiary knew or should have known that the injury
30or disease was work-related.
   31b.  To be provided the cost of the hospital, nursing, and
32medical attention required by this section, the city or the
33city’s representative shall have actual knowledge of the
34occurrence of an injury or disease or be provided notice of the
35occurrence of an injury or disease on behalf of a member or
-6-1beneficiary within ninety days from the date of the occurrence
2of the injury or disease.
   3c.  An action to require the city to provide the cost of
4the hospital, nursing, and medical attention required by this
5section shall not be maintained unless the action is commenced
6before the later of any of the following:
   7(1)  Two years from the date of the occurrence of the injury
8or disease.
   9(2)  Two years from the date the city denies a claim to
10provide hospital, nursing, and medical attention required by
11this section.
   12(3)  Five years from the last date of employment of the
13member if the action is related to costs associated with a
14disease as specified in section 411.6, subsection 5.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
   18This bill concerns benefits to members under the municipal
19fire and police retirement system established under Code
20chapter 411.
   21Code section 411.1, concerning definitions, is amended.
22The bill defines an “ordinary disability beneficiary” as a
23member retired on an ordinary disability retirement benefit
24for five years or less. The bill also amends the definition
25of “member in good standing” to mean any member in service who
26has not been terminated by the employing city of the member.
27The amended definition of “infectious disease” takes effect
28upon enactment and applies retroactively to January 1, 2020,
29for purposes of the provision of new Code section 411.15A as
30provided in the bill.
   31Code section 411.6(5), concerning accidental disability
32benefits, is amended to allow an ordinary disability
33beneficiary to make application to the retirement system for an
34accidental disability retirement benefit. The subsection is
35further amended to provide that a person is entitled to pay and
-7-1allowances if determined to be temporarily incapacitated prior
2to an accidental disability retirement determination and for
3an accidental disability retirement if the person has become
4totally and permanently incapacitated as a result of injury and
5disease arising out of and in the course of the employment and
6by the actual performance of duty without regard to whether
7that actual performance of duty was at some definite time and
8place. The subsection is also amended to provide that disease
9for purposes of an accidental disability benefit also means any
10incapacitating mental disorder arising out of and in the course
11of the employment, or while acting, pursuant to order, outside
12the city by which the member is regularly employed.
   13Code section 411.6(6), providing for a retirement allowance
14upon retirement for accidental disability, is amended to
15provide that an ordinary disability beneficiary who is
16determined to be entitled to a retirement for accidental
17disability shall receive a retirement allowance that shall
18consist of the greater of an amount as determined for members
19receiving an accidental disability retirement or an amount
20equal to the disability retirement allowance previously
21received by the beneficiary.
   22Code section 411.6(9), concerning accidental death benefits,
23is amended to provide that an accidental death benefit shall
24also be paid if the death was as a result of injury and disease
25arising out of and in the course of the employment or by the
26actual performance of duty without regard to whether that
27actual performance of duty was at some definite time and place.
   28Code section 411.6(16), concerning ineligibility for
29disability benefits, is amended to provide that a person
30otherwise eligible to receive a disability retirement shall
31not be eligible if the person is terminated or removed by the
32employing city of the person pursuant to Code section 400.18
33or 400.19, or other comparable process. The bill provides for
34the repayment of benefits paid prior to the determination of
35ineligibility.
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   1Code section 411.8, concerning the method of financing
2the retirement system, is amended by increasing the employee
3contribution rate from 9.4 percent of pay to 9.55 percent of
4pay beginning July 1, 2021.
   5Code section 411.15, concerning cities’ requirement to
6provide hospitalization and medical attention for injuries
7or diseases while on duty, is amended to provide that such
8attention shall also be provided for injuries arising out
9of and in the course of employment. The Code section is
10further amended to provide that cities shall continue to
11provide hospitalization and medical attention for injuries or
12diseases while on duty for members or beneficiaries receiving
13any retirement allowance under Code section 411.6 and not
14just an accidental disability retirement allowance under
15Code section 411.6(6). The Code section is further amended
16to provide that a member shall not be required to pay the
17cost of hospital, nursing, and medical attention required,
18including payment of any costs or premiums associated with any
19insurance policy providing coverage. The bill further provides
20that to be provided the cost of the hospital, nursing, and
21medical attention, the city shall have actual knowledge of the
22occurrence of an injury or disease or be provided notice of
23the occurrence of an injury or disease on behalf of a member
24or beneficiary within 90 days from the date of the occurrence
25of the injury or disease. The bill provides that an action to
26require the city to provide the cost of the medical attention
27shall not be maintained unless the action is commenced before
28the later of two years from the date of the occurrence of the
29injury or disease; two years from the date the city denies a
30claim to provide medical attention; or five years from the last
31date of employment of the member if the action is related to
32costs associated with a disease as specified in Code section
33411.6(5).
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