Signed by Governor Chet Culver

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes requirements and benefits of a retirement incentive program for Iowa state employees effective upon enactment.

Highlights:

-Requires an eligible employee to do the following to become a participant in the retirement incentive program (Sec. 1):

-Submit a written application prescribed by the Department of Administrative Services by April 15, 2010; -Acknowledge in writing to voluntarily terminate employment in exchange for the state employee retirement incentive program; -Agree to waive all rights to file a suit against the state of Iowa; -Acknowledge in writing to waive any right to accept any employment with the state, other than elected official, on or after the date the employee separates from employment; and -Agree to separate from employment with the state no later than June 24, 2010.

-Specifies the following benefits for accepted participants (Sec. 1):

-An eligible employee of at least 10 years of state employment service can receive a "years of service incentive benefit" of $1,000 for each year of state employment service, up to a maximum of 25 years; -The participant shall be paid in equal yearly installments equal to 20 percent of the years of service incentive benefit for the participant beginning in September 2010, and each September thereafter for 5 years; -The participant shall receive a payment for their accumulated but unused vacation time; and -The participant or the participant's beneficiary shall receive 5 years of a health insurance contribution benefit provided that the Department of Administrative Services determines what health insurance plans are eligible.

-Prohibits an employer from filling vacancies created by the participants of the program without approval from the Department of Management (Sec. 1). -Prohibits an employer from offering any employment opportunities, or retention as an independent contractor to a participant of the program (Sec. 1). -Requires the following program reporting and administrative procedures (Sec. 1):

-The Department of Administrative Services shall administer the program and adopt administrative rules for the program; -The Department of Administrative Services and the Department of Management shall adopt rules on emergency basis which will be effective immediately upon filing unless otherwise specified; -Iowa public employees' retirement system records shall be released for the purpose of administering ad monitoring the program; -Requires that the Department of Administrative Services and the Department of Management present an interim report to the general assembly by October 1, 2010; and -Beginning October 1, 2011, and each October 1 thereafter for 4 years, the department shall submit an annual report concerning the operation of the program.

-Authorizes that a retirement incentive program be provided to employees of the legislative and judicial branch (Sec. 1).

Full Bill Text