Iowa State Employees Early Retirement

The bill SF2062 was recommended to add amendment H-8033 which is an amendment to push the date of separation from May 28th, to June 24th. Also the bill WAS modified in the Senate with the following addition:

a. During September 2010, and each September thereafter for a total of five years, the state shall pay to the participant, or the participant’s beneficiary, an amount equal to twenty percent of the years of service incentive benefit for that participant. Receipt of a years of service incentive benefit pursuant to this section by a participant shall be in lieu of receiving a payment for the participant’s accumulated but unused vacation upon termination of employment.

This was added in the final Senate Bill and I did not catch it. So basically you will lose your accrued vacation in lieu of the $1,000 per year of service up to $25,000.

Revised on Jan 29th.It was brought to my attention by Jim, that you are not losing your vacation time. You are losing the one lump sum payout of your unused vacation time. They are rolling your unused vacation time into you benefit of $1,000 per year up to a maximum of $25,000 and then paying that sum out annually over 5 years. This can be seen by paragraph g. “

g.  "Years of service incentive benefit" means an amount equal
 to the entire value of an eligible employee's accumulated but
 unused vacation plus, for eligible employees with at least
 ten years of state employment service, one thousand dollars
 for each year of state employment service up to a maximum of
 twenty=five years of state employment service.  For purposes
 of this paragraph, "state employment service" means service, as
 defined in section 97B.1A, for which the employer is the state.

This was the status as of Thursday:

As of Thursday (28th) as far as I can tell there was no vote yet. This may change today.

Below is how the entire bill reds as of Thursday (28th)

Senate File 2062 - Reprinted

   SENATE FILE  BY  COMMITTEE ON STATE  GOVERNMENT

                   (SUCCESSOR TO SSB 3002)

       (As Amended and Passed by the Senate )

                  A BILL FOR

 An Act providing for a retirement incentive program for state
    employees and including effective date provisions.
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5589SV (12) 83
    ec/rj/jh

PAG LIN

    Section 1.  2010 STATE EMPLOYEE RETIREMENT INCENTIVE
 PROGRAM.
    1.  Definitions.  As used in this section, unless the context
 provides otherwise:
    a.  "Eligible employee" means an employee or qualified
 employee who has filed a completed application for benefits
 with the Iowa public employees' retirement system created in
 chapter 97B in which the employee's or qualified employee's
 intended first month of entitlement, as defined in section
 97B.1A, is no later than July 2010.
    b.  "Employee" means an employee, as defined by section
 97B.1A, who is employed within the executive branch of this
 state.  However, "employee" does not mean a qualified employee,
 an elected official, or an employee eligible for the sick leave
 conversion program as described in section 70A.23, subsection
 4.
    c.  "Employer" means a department, agency, board, or
 commission of the state that employs individuals.
    d.  "Health insurance contribution benefit" means the amount
 representing the monthly contribution cost of an affordable
 group health care plan offered by the state, as determined by
 the department of administrative services, providing coverage
 to the participant and, if applicable, the participant's spouse
 for the applicable period of coverage.
    e.  "Participant" means a person who timely submits an
 election to participate, is accepted to participate, and does
 participate, in the state employee retirement incentive program
 established under this section.
    f.  "Program" means the state employee retirement incentive
 program established under this section.
    ff.  "Qualified employee" means an employee of a judicial
 district department of correctional services, an employee in
 the office of a statewide elected official, or an employee of
 the state board of regents if the board elects to participate
 in the program.
    g.  "Years of service incentive benefit" means an amount equal
 to the entire value of an eligible employee's accumulated but
 unused vacation plus, for eligible employees with at least
 ten years of state employment service, one thousand dollars
 for each year of state employment service up to a maximum of
 twenty=five years of state employment service.  For purposes
 of this paragraph, "state employment service" means service, as
 defined in section 97B.1A, for which the employer is the state.
    2.  Program eligibility.  To become a participant in the
 program, an eligible employee shall do all of the following:
    a.  Submit by April 15, 2010, a written application, on
 forms prescribed by the department of administrative services,
 seeking participation in the program.
    b.  Acknowledge in writing the eligible employee's agreement
 to voluntarily terminate employment in exchange for the state
 employee retirement incentive program as provided in this
 section.
    c.  Agree to waive all rights to file suit against the state
 of Iowa, including all of its departments, agencies, and other
 subdivisions, based on state or federal claims arising out of
 the employment relationship.
    d.  Acknowledge, in writing, that participation in the
 program waives any right to accept any employment with the
 state other than as an elected official on or after the date
 the eligible employee separates from employment.
    e.  Agree to separate from employment with the state no later
 than May 28, 2010.
    3.  Participant acceptance.  An eligible employee shall be
 accepted into the program if the department of administrative
 services determines that the eligible employee meets the
 requirements to be eligible to participate in the program.
    4.  Program benefits.  Upon acceptance to participate in the
 program and separation from employment with the state no later
 than May 28, 2010, a participant shall receive the following
 benefits:
    a.  During September 2010, and each September thereafter for
 a total of five years, the state shall pay to the participant,
 or the participant's beneficiary, an amount equal to twenty
 percent of the years of service incentive benefit for that
 participant. Receipt of a years of service incentive benefit
 pursuant to this section by a participant shall be in lieu
 of receiving a payment for the participant's accumulated but
 unused vacation upon termination of employment.
    b.  For the period of time commencing with the first month
 in which a participant is ineligible for or exhausts the
 participant's available remaining value of sick leave used
 to pay the state share for the participant's continuation of
 state group health insurance coverage as provided in section
 70A.23, subsection 3, and ending five years from the date
 the participant separates from employment with the state as
 provided in this section, the participant, or the participant's
 surviving spouse, shall be entitled to receive a health
 insurance contribution benefit to be used by the participant
 or the participant's beneficiary to pay the cost for eligible
 state group health insurance.  The department of administrative
 services shall determine what health insurance plans constitute
 eligible state group health insurance for purposes of this
 paragraph "b".
    5.  Vacancies and reemployment.
    a.  An employer shall not fill a position vacancy created as
 a result of participation in the program by an employee without
 approval from the department of management.
    b.  An employer shall not offer permanent part=time
 employment, permanent full=time employment, temporary
 employment, or retention as an independent contractor to a
 participant.
    c.  This section shall not preclude a participant from
 membership on a board or commission.
    6.  Program administration and reporting.
    a.  The department of administrative services shall
 administer the program and shall adopt administrative rules
 to administer the program.  The department of administrative
 services and the department of management may adopt rules on an
 emergency basis under section 17A.4, subsection 3, and section
 17A.5, subsection 2, paragraph "b", to implement this section
 and the rules shall be effective immediately upon filing unless
 a later date is specified in the rules.
    b.  Records of the Iowa public employees' retirement system
 shall be released for the purposes of administering and
 monitoring the program subject to the requirements of section
 97B.17, subsection 5.
    c.  The department of administrative services, in
 collaboration with the department of management, shall present
 an interim report to the general assembly, including copies to
 the legislative services agency and the fiscal committee of
 the legislative council, by October 1, 2010, concerning the
 operation of the program.  The department shall also submit
 an annual update concerning the program by October 1 of each
 year for four years, commencing October 1, 2011.  The reports
 shall include information concerning the number of program
 participants, the cost of the program including any payments
 made to participants, the number of state employment positions
 not filled pursuant to the program, and the number of positions
 vacated by a program participant that have been refilled.
    7.  Legislative and judicial branch employees.
    a.  The legislative council may provide a retirement
 incentive program for employees of the legislative branch
 consistent with the program provided in this section for
 executive branch employees.  If the legislative council
 provides an incentive program, the legislative council shall
 collaborate with the department of administrative services to
 establish the program as required under this section as nearly
 as identical as possible to the program provided executive
 branch employees under this section.  The program provided
 pursuant to this paragraph "a" shall establish the same time
 guidelines and benefit calculations as provided under the
 program for executive branch employees.
   b.  The supreme court may provide a retirement incentive
 program for employees of the judicial branch consistent with
 the program provided in this section for executive branch
 employees.  If the supreme court provides an incentive program,
 the supreme court shall collaborate with the department of
 administrative services to establish the program as required
 under this section as nearly as identical as possible to the
 program provided executive branch employees under this section.
 The program provided pursuant to this paragraph "b" shall
 establish the same time guidelines and benefit calculations as
 provided under the program for executive branch employees.
   Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
 immediate importance, takes effect upon enactment.
      LSB 5589SV (12) 83
      ec/rj/jh

##afscme