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Senate File 185 - IntroducedA Bill ForAn Act 1establishing a state employee retirement incentive
2program and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. 2017 STATE EMPLOYEE RETIREMENT INCENTIVE
2PROGRAM.
31. Definitions. As used in this section, unless the context
4provides otherwise:
5a. “Eligible employee” means an employee or qualified
6employee who has filed a completed application for benefits
7with the Iowa public employees’ retirement system created in
8chapter 97B in which the employee’s or qualified employee’s
9intended first month of entitlement, as defined in section
1097B.1A, is no later than the month following the date
11eligible employees shall be required to agree to separate
12from employment with the state as provided in subsection 2,
13paragraph “e”.
14b. “Eligible enrollment date” means the date, established
15by the department that is at least forty-five days, but no
16later than sixty days, after the effective date of this Act and
17that is not a weekend or holiday.
18c. “Employee” means an employee, as defined in section
1997B.1A, who is employed within the executive branch of this
20state. However, “employee” does not mean a qualified employee,
21an elected official, or an employee eligible for the sick leave
22conversion program as described in section 70A.23, subsection
234.
24d. “Employer” means a department, agency, board, or
25commission of the state that employs individuals.
26e. “Health insurance contribution benefit” means the amount
27representing the monthly contribution cost of an affordable
28group health care plan offered by the state, as determined by
29the department of administrative services, providing coverage
30to the participant and, if applicable, the participant’s spouse
31for the applicable period of coverage.
32f. “Participant” means a person who timely submits an
33election to participate, is accepted to participate, and does
34participate, in the state employee retirement incentive program
35established under this section.
-1- 1g. “Program” means the state employee retirement incentive
2program established under this section.
3h. “Qualified employee” means an employee of a judicial
4district department of correctional services, an employee in
5the office of a statewide elected official, or an employee of
6the state board of regents if the board elects to participate
7in the program.
8i. “Years of service incentive benefit” means an amount
9equal to, for eligible employees with at least ten years of
10state employment service, one thousand dollars for each year of
11state employment service up to a maximum of twenty-five years
12of state employment service. For purposes of this paragraph,
13“state employment service” means service, as defined in section
1497B.1A, for which the employer is the state.
152. Program eligibility. To become a participant in the
16program, an eligible employee shall do all of the following:
17a. Submit by the eligible enrollment date, a written
18application, on forms prescribed by the department of
19administrative services, seeking participation in the program.
20b. Acknowledge in writing the eligible employee’s
21agreement to voluntarily terminate employment in exchange
22for participation in the state employee retirement incentive
23program as provided in this section.
24c. Agree to waive all rights to file suit against the state
25of Iowa, including all of its departments, agencies, and other
26subdivisions, based on state or federal claims arising out of
27the employment relationship.
28d. Acknowledge, in writing, that participation in the
29program waives any right to accept any employment with the
30state other than as an elected official on or after the date
31the eligible employee separates from employment.
32e. Agree to separate from employment with the state no
33later than thirty days after the eligible enrollment date as
34established in this subsection.
353. Participant acceptance. An eligible employee shall be
-2-1accepted into the program if the department of administrative
2services determines that the eligible employee meets the
3requirements to be eligible to participate in the program.
44. Program benefits. Upon acceptance to participate in the
5program and separation from employment with the state no later
6than the date as determined in subsection 2, paragraph “e”, a
7participant shall receive the following benefits:
8a. During November 2017, and each November thereafter for a
9total of five years, the state shall pay to the participant,
10or the participant’s beneficiary, an amount equal to twenty
11percent of the years of service incentive benefit for that
12participant.
13b. For the period of time commencing with the first month
14in which a participant is ineligible for or exhausts the
15participant’s available remaining value of sick leave used
16to pay the state share for the participant’s continuation of
17state group health insurance coverage as provided in section
1870A.23, subsection 3, and ending five years from the date
19the participant separates from employment with the state as
20provided in this section, the participant, or the participant’s
21surviving spouse, shall be entitled to receive a health
22insurance contribution benefit to be used by the participant
23or the participant’s beneficiary to pay the cost for eligible
24state group health insurance. The department of administrative
25services shall determine what health insurance plans constitute
26eligible state group health insurance for purposes of this
27paragraph “b”.
285. Reemployment.
29a. An employer shall not offer permanent part-time
30employment, permanent full-time employment, temporary
31employment, or retention as an independent contractor to a
32participant.
33b. This section shall not preclude a participant from
34membership on a board or commission.
356. Program administration and reporting.
-3- 1a. The department of administrative services shall
2administer the program and shall adopt administrative rules
3to administer the program. The department of administrative
4services and the department of management may adopt rules on an
5emergency basis under section 17A.4, subsection 3, and section
617A.5, subsection 2, paragraph “b”, to implement this section
7and the rules shall be effective immediately upon filing unless
8a later date is specified in the rules.
9b. Records of the Iowa public employees’ retirement system
10shall be released for the purposes of administering and
11monitoring the program subject to the requirements of section
1297B.17, subsection 5.
13c. The department of administrative services, in
14collaboration with the department of management, shall present
15an interim report to the general assembly, including copies to
16the legislative services agency and the fiscal committee of
17the legislative council, by December 1, 2017, concerning the
18operation of the program. The department shall also submit
19an annual update concerning the program by October 1 of each
20year for four years, commencing December 1, 2018. The reports
21shall include information concerning the number of program
22participants, the cost of the program including any payments
23made to participants, the number of state employment positions
24not filled pursuant to the program, and the number of positions
25vacated by a program participant that have been refilled with a
26comparison of the salary of the program participant at the time
27the position was vacated to the beginning salary of the person
28who refilled the position.
297. Legislative and judicial branch employees.
30a. The legislative council may provide a retirement
31incentive program for employees of the legislative branch
32consistent with the program provided in this section for
33executive branch employees. If the legislative council
34provides an incentive program, the legislative council shall
35collaborate with the department of administrative services to
-4-1establish the program as required under this section as nearly
2as identical as possible to the program provided executive
3branch employees under this section. The program provided
4pursuant to this paragraph “a” shall establish similar time
5guidelines and the same benefit calculations as provided under
6the program for executive branch employees.
7b. The supreme court may provide a retirement incentive
8program for employees of the judicial branch consistent with
9the program provided in this section for executive branch
10employees. If the supreme court provides an incentive program,
11the supreme court shall collaborate with the department of
12administrative services to establish the program as required
13under this section as nearly as identical as possible to
14the program provided executive branch employees under this
15section. The program provided pursuant to this paragraph “b”
16shall establish similar time guidelines and the same benefit
17calculations as provided under the program for executive branch
18employees.
19 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
20immediate importance, takes effect upon enactment.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill establishes a state employee retirement incentive
25program for eligible employees of the executive branch of the
26state, including employees in the offices of statewide elective
27officials, employees of a judicial district department of
28correctional services, and if the board of regents approves,
29employees of the state board of regents and its institutions.
30The bill permits, but does not require, either the legislative
31branch or the judicial branch to establish an early retirement
32program consistent with the program provided to executive
33branch employees in the bill. An elected official, or an
34employee eligible for an enhanced sick leave conversion program
35under Code section 70A.23(4) are excluded from participating
-5-1in the program. The program shall be administered by the
2department of administrative services (DAS). The bill permits
3eligible executive branch employees who have completed an
4application for benefits under the Iowa public employees’
5retirement system (IPERS) with an intended first month
6of entitlement of no later than the month following the
7date eligible employees shall be required to separate from
8employment, to separate from service with the state and receive
9a benefit under the program. To receive the incentive benefit,
10an eligible employee must submit an application to participate
11in the program by the eligible enrollment date, be accepted to
12participate in the program by the departments of administrative
13services and management, separate from state employment within
1430 days of the eligible enrollment date, and acknowledge the
15employee’s ineligibility to return to employment with the
16state. The bill defines eligible enrollment date as the date
17established by DAS, no earlier than 45 days but no later than
1860 days after the effective date of the bill.
19The bill provides that the benefit provided to an eligible
20employee who participates in the program is an amount equal to
21the entire value of the eligible employee’s accumulated but
22unused vacation plus, if the employee has at least 10 years
23of state employment, $1,000 for each year of state employment
24up to 25 years. The bill provides that this amount shall be
25payable in five equal installments each year during November
26beginning in November 2017. In addition, the bill provides
27that a participant in the program, or the participant’s
28surviving spouse, shall receive a health insurance premium
29benefit to pay the premium cost for eligible state group
30health insurance for five years following the participant’s
31termination from state employment. However, the bill provides
32that a participant shall receive the health insurance premium
33benefit only when the participant is no longer eligible for,
34or exhausts, the participant’s available remaining value of
35sick leave used to pay the state share for the participant’s
-6-1continuation of state group health insurance coverage as
2provided in Code section 70A.23, subsection 3.
3The bill further provides that a state employer shall not
4hire a participant in the program for any employment.
5The bill takes effect upon enactment.
-7-ec/rn/rj
2program and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. 2017 STATE EMPLOYEE RETIREMENT INCENTIVE
2PROGRAM.
31. Definitions. As used in this section, unless the context
4provides otherwise:
5a. “Eligible employee” means an employee or qualified
6employee who has filed a completed application for benefits
7with the Iowa public employees’ retirement system created in
8chapter 97B in which the employee’s or qualified employee’s
9intended first month of entitlement, as defined in section
1097B.1A, is no later than the month following the date
11eligible employees shall be required to agree to separate
12from employment with the state as provided in subsection 2,
13paragraph “e”.
14b. “Eligible enrollment date” means the date, established
15by the department that is at least forty-five days, but no
16later than sixty days, after the effective date of this Act and
17that is not a weekend or holiday.
18c. “Employee” means an employee, as defined in section
1997B.1A, who is employed within the executive branch of this
20state. However, “employee” does not mean a qualified employee,
21an elected official, or an employee eligible for the sick leave
22conversion program as described in section 70A.23, subsection
234.
24d. “Employer” means a department, agency, board, or
25commission of the state that employs individuals.
26e. “Health insurance contribution benefit” means the amount
27representing the monthly contribution cost of an affordable
28group health care plan offered by the state, as determined by
29the department of administrative services, providing coverage
30to the participant and, if applicable, the participant’s spouse
31for the applicable period of coverage.
32f. “Participant” means a person who timely submits an
33election to participate, is accepted to participate, and does
34participate, in the state employee retirement incentive program
35established under this section.
-1- 1g. “Program” means the state employee retirement incentive
2program established under this section.
3h. “Qualified employee” means an employee of a judicial
4district department of correctional services, an employee in
5the office of a statewide elected official, or an employee of
6the state board of regents if the board elects to participate
7in the program.
8i. “Years of service incentive benefit” means an amount
9equal to, for eligible employees with at least ten years of
10state employment service, one thousand dollars for each year of
11state employment service up to a maximum of twenty-five years
12of state employment service. For purposes of this paragraph,
13“state employment service” means service, as defined in section
1497B.1A, for which the employer is the state.
152. Program eligibility. To become a participant in the
16program, an eligible employee shall do all of the following:
17a. Submit by the eligible enrollment date, a written
18application, on forms prescribed by the department of
19administrative services, seeking participation in the program.
20b. Acknowledge in writing the eligible employee’s
21agreement to voluntarily terminate employment in exchange
22for participation in the state employee retirement incentive
23program as provided in this section.
24c. Agree to waive all rights to file suit against the state
25of Iowa, including all of its departments, agencies, and other
26subdivisions, based on state or federal claims arising out of
27the employment relationship.
28d. Acknowledge, in writing, that participation in the
29program waives any right to accept any employment with the
30state other than as an elected official on or after the date
31the eligible employee separates from employment.
32e. Agree to separate from employment with the state no
33later than thirty days after the eligible enrollment date as
34established in this subsection.
353. Participant acceptance. An eligible employee shall be
-2-1accepted into the program if the department of administrative
2services determines that the eligible employee meets the
3requirements to be eligible to participate in the program.
44. Program benefits. Upon acceptance to participate in the
5program and separation from employment with the state no later
6than the date as determined in subsection 2, paragraph “e”, a
7participant shall receive the following benefits:
8a. During November 2017, and each November thereafter for a
9total of five years, the state shall pay to the participant,
10or the participant’s beneficiary, an amount equal to twenty
11percent of the years of service incentive benefit for that
12participant.
13b. For the period of time commencing with the first month
14in which a participant is ineligible for or exhausts the
15participant’s available remaining value of sick leave used
16to pay the state share for the participant’s continuation of
17state group health insurance coverage as provided in section
1870A.23, subsection 3, and ending five years from the date
19the participant separates from employment with the state as
20provided in this section, the participant, or the participant’s
21surviving spouse, shall be entitled to receive a health
22insurance contribution benefit to be used by the participant
23or the participant’s beneficiary to pay the cost for eligible
24state group health insurance. The department of administrative
25services shall determine what health insurance plans constitute
26eligible state group health insurance for purposes of this
27paragraph “b”.
285. Reemployment.
29a. An employer shall not offer permanent part-time
30employment, permanent full-time employment, temporary
31employment, or retention as an independent contractor to a
32participant.
33b. This section shall not preclude a participant from
34membership on a board or commission.
356. Program administration and reporting.
-3- 1a. The department of administrative services shall
2administer the program and shall adopt administrative rules
3to administer the program. The department of administrative
4services and the department of management may adopt rules on an
5emergency basis under section 17A.4, subsection 3, and section
617A.5, subsection 2, paragraph “b”, to implement this section
7and the rules shall be effective immediately upon filing unless
8a later date is specified in the rules.
9b. Records of the Iowa public employees’ retirement system
10shall be released for the purposes of administering and
11monitoring the program subject to the requirements of section
1297B.17, subsection 5.
13c. The department of administrative services, in
14collaboration with the department of management, shall present
15an interim report to the general assembly, including copies to
16the legislative services agency and the fiscal committee of
17the legislative council, by December 1, 2017, concerning the
18operation of the program. The department shall also submit
19an annual update concerning the program by October 1 of each
20year for four years, commencing December 1, 2018. The reports
21shall include information concerning the number of program
22participants, the cost of the program including any payments
23made to participants, the number of state employment positions
24not filled pursuant to the program, and the number of positions
25vacated by a program participant that have been refilled with a
26comparison of the salary of the program participant at the time
27the position was vacated to the beginning salary of the person
28who refilled the position.
297. Legislative and judicial branch employees.
30a. The legislative council may provide a retirement
31incentive program for employees of the legislative branch
32consistent with the program provided in this section for
33executive branch employees. If the legislative council
34provides an incentive program, the legislative council shall
35collaborate with the department of administrative services to
-4-1establish the program as required under this section as nearly
2as identical as possible to the program provided executive
3branch employees under this section. The program provided
4pursuant to this paragraph “a” shall establish similar time
5guidelines and the same benefit calculations as provided under
6the program for executive branch employees.
7b. The supreme court may provide a retirement incentive
8program for employees of the judicial branch consistent with
9the program provided in this section for executive branch
10employees. If the supreme court provides an incentive program,
11the supreme court shall collaborate with the department of
12administrative services to establish the program as required
13under this section as nearly as identical as possible to
14the program provided executive branch employees under this
15section. The program provided pursuant to this paragraph “b”
16shall establish similar time guidelines and the same benefit
17calculations as provided under the program for executive branch
18employees.
19 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
20immediate importance, takes effect upon enactment.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill establishes a state employee retirement incentive
25program for eligible employees of the executive branch of the
26state, including employees in the offices of statewide elective
27officials, employees of a judicial district department of
28correctional services, and if the board of regents approves,
29employees of the state board of regents and its institutions.
30The bill permits, but does not require, either the legislative
31branch or the judicial branch to establish an early retirement
32program consistent with the program provided to executive
33branch employees in the bill. An elected official, or an
34employee eligible for an enhanced sick leave conversion program
35under Code section 70A.23(4) are excluded from participating
-5-1in the program. The program shall be administered by the
2department of administrative services (DAS). The bill permits
3eligible executive branch employees who have completed an
4application for benefits under the Iowa public employees’
5retirement system (IPERS) with an intended first month
6of entitlement of no later than the month following the
7date eligible employees shall be required to separate from
8employment, to separate from service with the state and receive
9a benefit under the program. To receive the incentive benefit,
10an eligible employee must submit an application to participate
11in the program by the eligible enrollment date, be accepted to
12participate in the program by the departments of administrative
13services and management, separate from state employment within
1430 days of the eligible enrollment date, and acknowledge the
15employee’s ineligibility to return to employment with the
16state. The bill defines eligible enrollment date as the date
17established by DAS, no earlier than 45 days but no later than
1860 days after the effective date of the bill.
19The bill provides that the benefit provided to an eligible
20employee who participates in the program is an amount equal to
21the entire value of the eligible employee’s accumulated but
22unused vacation plus, if the employee has at least 10 years
23of state employment, $1,000 for each year of state employment
24up to 25 years. The bill provides that this amount shall be
25payable in five equal installments each year during November
26beginning in November 2017. In addition, the bill provides
27that a participant in the program, or the participant’s
28surviving spouse, shall receive a health insurance premium
29benefit to pay the premium cost for eligible state group
30health insurance for five years following the participant’s
31termination from state employment. However, the bill provides
32that a participant shall receive the health insurance premium
33benefit only when the participant is no longer eligible for,
34or exhausts, the participant’s available remaining value of
35sick leave used to pay the state share for the participant’s
-6-1continuation of state group health insurance coverage as
2provided in Code section 70A.23, subsection 3.
3The bill further provides that a state employer shall not
4hire a participant in the program for any employment.
5The bill takes effect upon enactment.
-7-ec/rn/rj