Bill Text: IA HF447 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to state employee life insurance programs and recording certain benefits to the Iowa public employees' retirement system and including effective date provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF447 Detail]
Download: Iowa-2011-HF447-Introduced.html
House
File
447
-
Introduced
HOUSE
FILE
447
BY
MURPHY
A
BILL
FOR
An
Act
relating
to
state
employee
life
insurance
programs
and
1
recording
certain
benefits
to
the
Iowa
public
employees’
2
retirement
system
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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447
Section
1.
NEW
SECTION
.
70A.21
Employees’
group
whole
life
1
insurance
program.
2
1.
A
state
employees’
group
whole
life
insurance
program
3
is
created
which
shall
be
administered
by
the
director
of
4
the
department
of
administrative
services.
The
director
5
shall
contract
with
a
third-party
administrator
to
modify
the
6
structure
of
life
insurance
for
active
employees
from
a
group
7
term
life
insurance
policy
to
a
group
whole
life
insurance
8
policy.
9
2.
The
department
shall
adopt
rules
to
ensure
that:
10
a.
The
death
benefit
available
to
an
active
employee’s
named
11
beneficiaries
will
remain
the
same
as
under
group
term
life
12
insurance.
13
b.
When
an
individual
is
no
longer
an
active
employee
of
the
14
state,
the
death
benefit
coverage
shall
vest
to
the
Iowa
public
15
employees’
retirement
system.
16
c.
Employees
hired
before
the
effective
date
of
this
section
17
shall
retain
the
right
to
continue
coverage
under
a
group
term
18
life
insurance
policy
after
termination
of
active
service
as
19
provided
for
in
section
509A.6.
20
d.
Employees
hired
on
or
after
the
effective
date
of
this
21
section
shall
receive
group
term
life
insurance,
with
the
right
22
to
continue
such
life
insurance
in
force
after
termination
of
23
active
service
at
such
employee’s
sole
expense.
24
Sec.
2.
Section
97B.9,
Code
2011,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
3A.
The
system
shall
record,
as
an
27
asset,
the
present
value
of
the
total
death
benefit
of
the
28
state
employees’
group
whole
life
insurance
program
created
29
in
section
70A.21,
less
an
amount
to
account
for
employee
30
mortality,
as
determined
by
the
director
of
the
department
of
31
administrative
services.
32
Sec.
3.
Section
509A.6,
Code
2011,
is
amended
to
read
as
33
follows:
34
509A.6
Contract
with
insurance
carrier,
health
maintenance
35
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447
organization,
or
organized
delivery
system.
1
The
governing
body
may
contract
with
a
nonprofit
corporation
2
operating
under
the
provisions
of
this
chapter
or
chapter
514
3
or
with
any
insurance
company
having
a
certificate
of
authority
4
to
transact
an
insurance
business
in
this
state
with
respect
5
of
a
group
insurance
plan,
which
may
include
life,
accident,
6
health,
hospitalization
and
disability
insurance
during
period
7
of
active
service
of
such
employees,
with
the
right
of
any
8
employee
to
continue
such
a
group
term
life
insurance
policy
in
9
force
after
termination
of
active
service
at
such
employee’s
10
sole
expense;
may
contract
with
a
nonprofit
corporation
11
operating
under
and
governed
by
the
provisions
of
this
chapter
12
or
chapter
514
with
respect
of
any
hospital
or
medical
service
13
plan;
and
may
contract
with
a
health
maintenance
organization
14
or
an
organized
delivery
system
authorized
to
operate
in
this
15
state
with
respect
to
health
maintenance
organization
or
16
organized
delivery
system
activities.
17
Sec.
4.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
18
immediate
importance,
takes
effect
upon
enactment.
19
EXPLANATION
20
This
bill
creates
a
state
employees’
group
whole
life
21
insurance
program
and
allocates
realized
benefits
from
the
22
program
to
the
Iowa
public
employees’
retirement
system
23
(IPERS).
24
The
bill
requires
that
the
director
of
the
department
25
of
administrative
services
administer
the
state
employees’
26
group
whole
life
insurance
program.
The
bill
requires
that
27
the
director
contract
with
a
third-party
administrator
to
28
modify
current
group
term
life
insurance
to
group
whole
life
29
insurance.
The
bill
requires
that
employee
death
benefits
30
remain
the
same,
but
that
when
an
employee
becomes
inactive
31
or
is
terminated,
the
death
benefit
shall
vest
to
IPERS.
The
32
bill
requires
that
employees
hired
after
the
date
of
enactment
33
participate
in
a
group
term
life
insurance
policy,
and
those
34
employees
have
the
right
to
continue
such
coverage
at
the
35
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447
employee’s
own
expense
upon
the
end
of
employment
with
the
1
state.
2
The
bill
requires
that
IPERS
record
the
present
value
of
3
IPERS’
interest
in
the
employee
group
whole
life
insurance
4
program
as
an
asset.
5
The
bill
strikes
language
in
current
law
that
would
allow
6
any
employee,
current
or
future,
to
carry
the
employee’s
death
7
benefit
after
employment
if
the
former
employee
was
responsible
8
for
the
continued
expense.
The
current
law
pertained
only
to
9
group
term
life
policies.
10
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