Senate File 366 - Introduced
SENATE FILE
BY COMMITTEE ON STATE
GOVERNMENT
(SUCCESSOR TO SSB
1213)
A BILL FOR
1 An Act relating to the reexamination and recalculation of
2 disability retirement benefits for beneficiaries under the
3 public safety peace officers' retirement, accident, and
4 disability system.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 97A.6, subsection 7, paragraph a,
1 2 subparagraph (1), Code 2015, is amended to read as follows:
1 3 (1) Should any beneficiary for either ordinary or
1 4 accidental disability, except a beneficiary who is fifty=five
1 5 years of age or over and would have completed twenty=two years
1 6 of service if the beneficiary had remained in active service,
1 7 be engaged in a gainful occupation paying more than the
1 8 difference between the member's net retirement allowance and
1 9 one two and one=half times the current earnable compensation
1 10 of an active member at the same position on the salary scale
1 11 within the member's rank as the member held at retirement, then
1 12 the amount of the retirement allowance shall be reduced to an
1 13 amount such that the member's net retirement allowance plus the
1 14 amount earned by the member shall equal one two and one=half
1 15 times the amount of the current earnable compensation of an
1 16 active member at the same position on the salary scale within
1 17 the member's rank as the member held at retirement. Should
1 18 the member's earning capacity be later changed, the amount of
1 19 the retirement allowance may be further modified, provided
1 20 that the new retirement allowance shall not exceed the amount
1 21 of the retirement allowance originally granted adjusted by
1 22 annual readjustments of pensions pursuant to subsection 14 of
1 23 this section nor an amount which would cause the member's net
1 24 retirement allowance, when added to the amount earned by the
1 25 beneficiary, to equal one two and one=half times the amount
1 26 of the current earnable compensation of an active member at
1 27 the same position on the salary scale within the member's rank
1 28 as the member held at retirement. A beneficiary restored
1 29 to active service at a salary less than the average final
1 30 compensation upon the basis of which the member was retired at
1 31 age fifty=five or greater, shall not again become a member of
1 32 the retirement system and shall have the member's retirement
1 33 allowance suspended while in active service. If the rank or
1 34 position held by the retired member is subsequently abolished,
1 35 adjustments to the allowable limit on the amount of income
2 1 which can be earned in a gainful occupation shall be computed
2 2 in the same manner as provided in subsection 14, paragraph "c",
2 3 of this section for readjustment of pensions when a rank or
2 4 position has been abolished. If the salary scale associated
2 5 with a member's rank at retirement is changed after the member
2 6 retires, earnable compensation for purposes of this section
2 7 shall be based upon the salary an active member currently
2 8 would receive at the same rank and with seniority equal to
2 9 that of the retired member at the time of retirement. For
2 10 purposes of this paragraph, "net retirement allowance" means
2 11 the amount determined by subtracting the amount paid during the
2 12 previous calendar year by the beneficiary for health insurance
2 13 or similar health care coverage for the beneficiary and the
2 14 beneficiary's dependents from the amount of the member's
2 15 retirement allowance paid for that year pursuant to this
2 16 chapter. The beneficiary shall submit sufficient documentation
2 17 to the board of trustees to permit the system to determine the
2 18 member's net retirement allowance for the applicable year.
2 19 EXPLANATION
2 20 The inclusion of this explanation does not constitute agreement with
2 21 the explanation's substance by the members of the general assembly.
2 22 This bill concerns the recalculation of an accidental or
2 23 ordinary disability retirement benefit for a beneficiary
2 24 under 55 years of age under the Public Safety Peace Officers'
2 25 Retirement, Accident, and Disability system (PORS). The
2 26 bill provides that a beneficiary shall have their disability
2 27 retirement benefit reduced equal to the difference in income
2 28 the beneficiary is receiving from other work and two and
2 29 one=half times the amount of the current earnable compensation
2 30 of an active member of PORS at the same position on the salary
2 31 scale as the disability beneficiary less the disability
2 32 beneficiary's net retirement allowance. Net retirement
2 33 allowance is defined as the disability beneficiary's retirement
2 34 allowance minus certain health insurance costs. Current law
2 35 reduces the disability benefit if the disability beneficiary's
3 1 income from other employment is one and one=half times the
3 2 amount of an active member of PORS minus the net retirement
3 3 allowance.
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