Senate Study Bill 1213 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act relating to the reexamination and recalculation of 1 disability retirement benefits for beneficiaries under the 2 public safety peace officers’ retirement, accident, and 3 disability system. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2320XC (1) 86 ec/sc

S.F. _____ Section 1. Section 97A.6, subsection 7, paragraph a, 1 subparagraph (1), Code 2015, is amended to read as follows: 2 (1) Should any beneficiary for either ordinary or 3 accidental disability, except a beneficiary who is fifty-five 4 years of age or over and would have completed twenty-two years 5 of service if the beneficiary had remained in active service, 6 be engaged in a gainful occupation paying more than the 7 difference between the member’s net retirement allowance and 8 one two and one-half times the current earnable compensation 9 of an active member at the same position on the salary scale 10 within the member’s rank as the member held at retirement, then 11 the amount of the retirement allowance shall be reduced to an 12 amount such that the member’s net retirement allowance plus the 13 amount earned by the member shall equal one two and one-half 14 times the amount of the current earnable compensation of an 15 active member at the same position on the salary scale within 16 the member’s rank as the member held at retirement. Should 17 the member’s earning capacity be later changed, the amount of 18 the retirement allowance may be further modified, provided 19 that the new retirement allowance shall not exceed the amount 20 of the retirement allowance originally granted adjusted by 21 annual readjustments of pensions pursuant to subsection 14 of 22 this section nor an amount which would cause the member’s net 23 retirement allowance, when added to the amount earned by the 24 beneficiary, to equal one two and one-half times the amount 25 of the current earnable compensation of an active member at 26 the same position on the salary scale within the member’s rank 27 as the member held at retirement. A beneficiary restored 28 to active service at a salary less than the average final 29 compensation upon the basis of which the member was retired at 30 age fifty-five or greater, shall not again become a member of 31 the retirement system and shall have the member’s retirement 32 allowance suspended while in active service. If the rank or 33 position held by the retired member is subsequently abolished, 34 adjustments to the allowable limit on the amount of income 35 -1- LSB 2320XC (1) 86 ec/sc 1/ 3

S.F. _____ which can be earned in a gainful occupation shall be computed 1 in the same manner as provided in subsection 14 , paragraph “c” , 2 of this section for readjustment of pensions when a rank or 3 position has been abolished. If the salary scale associated 4 with a member’s rank at retirement is changed after the member 5 retires, earnable compensation for purposes of this section 6 shall be based upon the salary an active member currently 7 would receive at the same rank and with seniority equal to 8 that of the retired member at the time of retirement. For 9 purposes of this paragraph, “net retirement allowance” means 10 the amount determined by subtracting the amount paid during the 11 previous calendar year by the beneficiary for health insurance 12 or similar health care coverage for the beneficiary and the 13 beneficiary’s dependents from the amount of the member’s 14 retirement allowance paid for that year pursuant to this 15 chapter . The beneficiary shall submit sufficient documentation 16 to the board of trustees to permit the system to determine the 17 member’s net retirement allowance for the applicable year. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill concerns the recalculation of an accidental or 22 ordinary disability retirement benefit for a beneficiary 23 under 55 years of age under the Public Safety Peace Officers’ 24 Retirement, Accident, and Disability system (PORS). The 25 bill provides that a beneficiary shall have their disability 26 retirement benefit reduced equal to the difference in income 27 the beneficiary is receiving from other work and two and 28 one-half times the amount of the current earnable compensation 29 of an active member of PORS at the same position on the salary 30 scale as the disability beneficiary less the disability 31 beneficiary’s net retirement allowance. Net retirement 32 allowance is defined as the disability beneficiary’s retirement 33 allowance minus certain health insurance costs. Current law 34 reduces the disability benefit if the disability beneficiary’s 35 -2- LSB 2320XC (1) 86 ec/sc 2/ 3

S.F. _____ income from other employment is one and one-half times the 1 amount of an active member of PORS minus the net retirement 2 allowance. 3 -3- LSB 2320XC (1) 86 ec/sc 3/ 3