Relating to public safety personnel retirement systems, the taxation of surviving spouse pension benefits, and including retroactive applicability provisions

1, concerning definitions, is amended. The bill defines an “ordinary disability beneficiary” as a member retired on an ordinary disability retirement benefit for three 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.6(5), concerning accidental disability benefits, is amended to provide that a person is entitled to 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 bill further provides that mental incapacity occurs as the natural and proximate result of an injury or disease incurred or aggravated by the actual performance of duty or arising out of the course of employment. To determine whether an incident is considered traumatic, unexpected, or unusual in establishing mental incapacity, the incident is compared to the experiences of other police officers or fire fighters in this state.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 on or after July 1, 2024, 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.19, or other comparable process. The bill provides for the repayment of benefits paid prior to the determination of ineligibility.64 percent of pay beginning July 1, 2024.15, 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 also provides that disease for purposes of providing medical attention under this Code section shall mean heart disease, any disease of the lungs or respiratory tract, and cancer or infectious disease, all of which shall be presumed to have been contracted while on active duty. 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. The bill provides that an action to require the city to provide the cost of the medical attention shall not be maintained unless the action is commenced before the later of two years from the date of the occurrence of the injury or disease or two years from the date the city denies a claim to provide medical attention. However, a city shall not be responsible for any claim or action for a newly discovered work-related injury which is filed after three years from the last date of employment of the member. DIVISION II —— INDIVIDUAL INCOME TAX EXEMPTION —— SURVIVING SPOUSE —— PENSIONS. Under current law, pension and retirement pay are exempt from the individual income tax if the individual is disabled, years of age or older, or is the surviving spouse of an individual or is a survivor having an insurable interest in an individual, who would have qualified for the pension or retirement pay exemption. However, a surviving spouse or survivor with an insurable interest does not qualify for this exemption unless the surviving spouse or survivor is also disabled or years of age.49C (sheriffs and deputy sheriffs), or Code chapter 97A (POR), 410 (fire fighters and police officers), or 411 (MFPRSI). The bill preserves current law for an individual who is not disabled or years of age or older who receives other pension or retirement pay as a surviving spouse or as a survivor with an insurable interest in an individual who would have qualified for the exemption for the tax year. Under current law, such an individual may only exclude the amount received from a pension or retirement plan in the tax year as a result of the death of the decedent. This division applies retroactively for tax years beginning on or after January 1, 2024.