Iowa House Bill HSB745

Iowa 2023-2024 Regular Session

• Introduced: 3/27/24
• Refer: 3/27/24

Caption

A bill for an act relating to public safety personnel retirement systems, the taxation of surviving spouse pension benefits, and including retroactive applicability provisions.(See HF 2680.)

Impact

The legislation significantly tweaks multiple existing codes concerning retirement systems for public safety personnel, including the Municipal Fire and Police Retirement System (MFPRSI) and the Iowa Public Employees Retirement System (IPERS). A key provision permits surviving spouses of public safety workers to exempt certain pension amounts from state income tax, regardless of their age or disability status, as long as the pension adheres to specific provisions under state law. This change aims to ease the financial burden on survivors of public safety personnel who have died in the line of duty.

Summary

House Study Bill 745 addresses critical updates to Iowa's public safety personnel retirement systems, emphasizing enhancements related to civil service evaluations and the taxation of pension benefits for surviving spouses. The bill mandates mental health evaluations as part of the entrance examinations for police and fire service positions. This requirement aims to ensure that new recruits possess not only physical but also mental fitness for the demanding roles they will undertake. Furthermore, the bill clarifies definitions related to disability benefits, particularly for those with ordinary disabilities and specifies circumstances under which members may retire due to accidental disabilities sustained while performing duties.

Contention

One point of contention is the provision that allows the city to now require notification within 90 days from the occurrence of any injury or disease to provide medical attention for retirees, a mandate that may place additional pressures on both the cities and current employees. Critics argue that the retroactive applicability, effective back to January 1, 2024, may create confusion or disputes regarding claims. Additionally, some stakeholders are concerned that the mental health evaluation requirement could set a precedent that might discourage potential applicants from pursuing careers in public safety due to perceived barriers during the hiring process.