Proyectos de ley › 89.ª Asamblea General
Dónde está ahora
- Hecho: Presentado3 de marzo de 2021
- Hecho: Subcomité3 de marzo de 2021
- Hecho: Comité de la Cámara4 de marzo de 2021
- Se saltó: Lo aprueba la CámaraSigue como HF 797
- Sigue: Comité del Senado
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Ahora es HF 797 → Sigue avanzando con el número nuevo. Ir a HF 797 ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA This bill changes how retirement benefits and medical care work for municipal police and fire workers. It expands the types of injuries and mental health disorders that qualify for accidental disability benefits and allows certain retired members to apply for these higher benefits. Additionally, it increases the amount of money employees must contribute from their paychecks and requires cities to cover medical costs for certain injuries or diseases. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill concerns benefits to members under the municipal fire and police retirement system established under Code chapter 411.1, concerning definitions, is amended. The bill defines an “ordinary disability beneficiary” as a member retired on an ordinary disability retirement benefit for five years or less. The bill also amends the definition of “member in good standing” to mean any member in service who has not been terminated by the employing city of the member.15A as provided in the bill.6(5), concerning accidental disability benefits, is amended to allow an ordinary disability beneficiary to make application to the retirement system for an accidental disability retirement benefit. _____ allowances if determined to be temporarily incapacitated prior to an accidental disability retirement determination and for an accidental disability retirement if the person has become totally and permanently incapacitated as a result of injury and disease arising out of and in the course of the employment and by the actual performance of duty without regard to whether that actual performance of duty was at some definite time and place. The subsection is also amended to provide that disease for purposes of an accidental disability benefit also means any incapacitating mental disorder arising out of and in the course of the employment, or while acting, pursuant to order, outside the city by which the member is regularly employed.6(6), providing for a retirement allowance upon retirement for accidental disability, is amended to provide that an ordinary disability beneficiary who is determined to be entitled to a retirement for accidental disability shall receive a retirement allowance that shall consist of the greater of an amount as determined for members receiving an accidental disability retirement or an amount equal to the disability retirement allowance previously received by the beneficiary.6(9), concerning accidental death benefits, is amended to provide that an accidental death benefit shall also be paid if the death was as a result of injury and disease arising out of and in the course of the employment or by the actual performance of duty without regard to whether that actual performance of duty was at some definite time and place.19, or other comparable process. The bill provides for the repayment of benefits paid prior to the determination of ineligibility.55 percent of pay beginning July 1, 2021.15, concerning cities’ requirement to provide hospitalization and medical attention for injuries or diseases while on duty, is amended to provide that such attention shall also be provided for injuries arising out of and in the course of employment.6(6). The Code section is further amended to provide that a member shall not be required to pay the cost of hospital, nursing, and medical attention required, including payment of any costs or premiums associated with any insurance policy providing coverage. The bill further provides that to be provided the cost of the hospital, nursing, and medical attention, the city shall have actual knowledge of the occurrence of an injury or disease or be provided notice of the occurrence of an injury or disease on behalf of a member or beneficiary within days from the date of the occurrence of the injury or disease.6(5).
Cambiado después por la enmienda H-1176; vea Enmiendas.
House subcommittee
Named March 3, 2021. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Resumen con IA This bill expands the types of disabilities eligible for accidental disability benefits and allows certain retirees to apply for those benefits. It is estimated to increase the Municipal Fire and Police Retirement Fund's unfunded liability by approximately $4.3 million in fiscal year 2022 and increase administrative costs for the retirement system by $50,000 to $100,000 annually. Additionally, the cost to increase member contribution rates in fiscal year 2022 is approximately $492,000, while the impact on cities for additional medical costs cannot be determined at this time. (en inglés)3
Lea la nota fiscal (en inglés)
Description
House File 797 concerns certain benefits under the Municipal Fire and Police Retirement System of Iowa (MFPRSI), established under Iowa Code chapter 411. The Bill expands the number of disabilities eligible for an accidental disability benefit and allowing retirees who are receiving an ordinary benefit and within five years of retirement to apply for an accidental disability benefit.
Background
Effective July 1, 1992, 87 local fire and police retirement systems in 49 cities were consolidated into a single statewide system, commonly referred to as the 411 System. The MFPRSI is governed by a nine-member Board of Trustees and four legislative members as required by Iowa Code section 411.36. The voting members of the Board include two fire and two police representatives, four city representatives, and a private citizen.
Based on the July 1, 2020, actuarial valuation, the MFPRSI covers approximately 4,084 active members, 1,141 disabled members, 3,049 retired members and beneficiaries, and 375 vested, terminated members. The current funded ratio is 79.93%. The current actuarial accrued liability is $3.390 billion, the actuarial value of assets is $2.710 billion, and the unfunded actuarial liability is $680.3 million.
For FY 2022, members’ estimated annual contributions at the current rate of 9.40% total $30.8 million, and the cities’ estimated contributions at 26.18% total $85.8 million. Total covered payroll is $327.9 million. The average annual compensation for an active member is $80,282. The table below shows the annual employer and employee contribution rates for FY 2018 to FY 2022.
Annual Contribution Rates
Per Iowa Code section 411.8, the member contribution rate will be increased for any statutory changes, if the increase cannot be absorbed within the current contribution rates, to a maximum of 11.35%. Costs would then be applied 60/40 between the employer and employee. The MFPRSI provides for both an ordinary and accidental disability for a member in good standing with the System. From 2002 through 2020, the MFPRSI reported one member in good standing who would have been affected by HF 797 if it had been in effect at that time. The medical board determines whether a member is medically able to perform the member’s respective duties as a fire fighter or a police officer. If the member is determined to be unable toFY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Employer Contribution Rate 25.68% 26.02% 24.41% 25.31% 26.18% Employee Contribution Rate 9.40% 9.40% 9.40% 9.40% 9.40% Total 35.08% 35.42% 33.81% 34.71% 35.58% perform the member’s duties, the MFPRSI decides whether the member is eligible for an ordinary or accidental disability. The compensation for an ordinary disability is 50.0% of the average final compensation, whereas the compensation for accidental disability is 60.0% of the average final compensation.
Cities are responsible for the payment of all medical costs related to MFPRSI claims under Iowa Code section 411.15. Cities cannot use workers’ compensation to cover short-term indemnity or medical cost exposure. Iowa Code section 85.1(4) states that workers’ compensation does not apply to “persons entitled to benefits pursuant to Iowa Code chapters 410 and 411.”
Assumptions
- Expanding the number of disabilities eligible for an accidental disability benefit and allowing retirees who are receiving an ordinary disability benefit and within five years of retirement to apply for an accidental disability benefit will reduce the funded ratio of the Municipal Fire and Police Retirement Fund by 0.10%, from 79.93% to 79.83%.
- Based on the most recent actuarial valuation report as of July 1, 2020, no increase in costs can be absorbed within the existing contribution rates for FY 2022. The FY 2022 employee contribution rate would need to increase from 9.40% to 9.55%, an increase of 0.15%.
- The total contribution rate impact of Sections 2 to 5 of the Bill will be an increase of 0.15% to the members’ contribution rate. The provisions creating the impact include:
- Allowing current ordinary disability retirees within five years of retirement to apply for an accidental disability benefit will affect the total contribution rate by 0.08%.
- Permitting future ordinary disabilities to be treated as accidental disabilities due to the elimination of the definite time and place requirement and greater than day-to-day stress standard for mental injuries will affect the total contribution rate by 0.07%.
- All other actuarial assumptions going forward are assumed to be met.
- The MFPRSI may see an increase in administrative costs related to medical exams.
- Cities may see increased medical and administrative costs for all injuries and diseases related to employment, regardless of the type of benefit received from the System.
- There are approximately seven ordinary disability retirements per year. The estimate assumes there will be no overall increase in disability incidents; however, all future disabilities would qualify for accidental disabilities.
- Eliminating the link between medical costs and 411 accidental disabilities, requiring medical cost coverage for cumulative injuries, and eliminating the greater than day-to-day stress standard for mental injuries may result in additional medical costs being covered by city employers.
Fiscal Impact
House File 797 is estimated to increase administrative costs for the MFPRSI by $50,000 to $100,000 annually due to increased medical exams. Any increased administrative costs for the MFPRSI will be paid from the Fire and Police Retirement Fund.
The unfunded actuarial accrued liability of the Municipal Fire and Police Retirement Fund is estimated to increase in FY 2022 by approximately $4.3 million, and the funded ratio would decrease from 79.93% to 79.83%.
The FY 2022 cost for increasing the members’ contribution rate from 9.40% to 9.55% is approximately $492,000, or $120 per employee. In subsequent fiscal years, this cost may increase based on covered payroll.
Cities under the MFPRSI are required to provide hospital, nursing, and medical attention for members of the police and fire departments. The fiscal impact of HF 797 on cities for additional medical costs cannot be determined at this time but may be significant.
Sources
- Municipal Fire and Police Retirement System of Iowa Actuarial Valuation Report
- Municipal Fire and Police Retirement System of Iowa
- League of Cities
- 411 Retirement System 2 · 10 de marzo de 2021 · $492,000
Lo que cambia del Código de Iowa (Iowa Code)
Cabildeo
3 a favor · 1 en contra · 12 indecisos · Quiénes →
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Tried before
Study bill
89th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None became law, though one got through a chamber.
- HF 2592 Concerning benefits under the municipal fire and police retirement system88th General Assembly · Passed House · very similarPassed a chamber
Similar bills this General Assembly
- SSB 1132 SSB 113290th General Assembly · Renumbered as SF 505Nearly identical
- HF 417 Concerning benefits relating to members of the municipal fire and police retirement system…89th General Assembly · Approved by committeeVery similar
- HSB 745 HSB 74590th General Assembly · Renumbered as HF 2680Similar
Matched by wording or an identical title.