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HF 969

A bill for an act concerning retirement contributions of and benefits associated with cancer diagnoses of members of certain public retirement systems, and including effective date provisions.

2025-2026 Regular Session

Expands cancer to a general definition, enabling broader accidental disability/death benefits for PORS, MFPRSI, and IPERS groups while shifting 0.125% of contributions from employe

Fiscal note.
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Bill Summary · HF 969

Summary — HF 969 (enacted June 6, 2025)

Main purpose

HF 969 expands the statutory definition of “cancer” used in Iowa retirement law and makes related changes to benefit eligibility and contribution splits for certain public safety retirement groups. The change broadens presumptions that cancer diagnoses are work‑related for several retirement systems, which can make members eligible for accidental disability or death benefits.

Key provisions

  • Expands the definition of “cancer” in Iowa Code chapters 97A and 411 to a general definition: “a group of diseases involving abnormal cell growth with the potential to invade or spread to other parts of the body.” This removes prior lists or narrower definitions and applies the broader definition across the affected code sections.
  • Expands accidental disability and accidental death benefit availability to members with qualifying cancer diagnoses in:
    • Peace Officers’ Retirement, Accident, and Disability System (PORS)
    • Municipal Fire and Police Retirement System of Iowa (MFPRSI, aka 411 System)
    • Iowa Public Employees’ Retirement System (IPERS) — specifically Protection Occupation members and Sheriffs & Deputy Sheriffs
  • Adjusts employer/employee contribution splits (total required contribution for each system remains unchanged for FY2026; only the allocation between employer and member changes). For FY2026 the bill shifts 0.125 percentage points of contribution from employers to employees in the affected groups, for example:
    • 411 System: employee rate increases from 9.550% to 9.675% (+0.125%); employer rate decreases from 22.680% to 22.555% (−0.125%)
    • PORS: employee 11.400% → 11.525% (+0.125%); employer 37.000% → 36.875% (−0.125%)
    • IPERS Protection Occupation: employee 6.210% → 6.335% (+0.125%); employer 9.310% → 9.185% (−0.125%)
    • IPERS Sheriffs & Deputies: employee 12.090% → 12.215% (+0.125%); employer 12.090% → 11.965% (−0.125%)
  • Increases the 411 System’s statutory maximum employee contribution rate from 11.350% to 11.475%, effective July 1, 2025.
  • Authorizes IPERS to adopt emergency administrative rules to implement required contribution changes; that authorization takes effect upon enactment.

Who is affected

  • Active and future members of PORS, MFPRSI (411 System), and IPERS Protection Occupation / Sheriffs & Deputies — greater likelihood of accidental disability/death benefits if diagnosed with cancer.
  • Employers (cities, counties, state agencies): employer share of contributions is reduced slightly for affected groups (offset by higher employee share); cities (MFPRSI employers) remain responsible for medical costs associated with MFPRSI claims.
  • Taxpayers and state budget: PORS medical costs are paid from the PORS Fund; there is also a $5.0 million annual standing appropriation to PORS from the General Fund.

Fiscal impact (summary of fiscal notes)

  • MFPRSI: An actuarial cost study estimated the change would increase the unfunded actuarial accrued liability (UAAL) by about $552,000, lowering the funded ratio ~0.01%. A 25‑year amortization of the increased liability was estimated to cost roughly $46,000 annually. For individual members, the 0.125% employee increase equates to about $130 per employee based on FY2026 payroll estimates. Cities could face additional medical and short‑term wage costs; amounts are uncertain and potentially significant.
  • PORS: Expected to increase UAAL and require an actuarial study; fiscal impact could not be precisely estimated in the notes. PORS had a UAAL of ~$220.6M (funded ratio 77.7%) as of the July 1, 2024 valuation.
  • IPERS (Protection Occupation / Sheriffs & Deputies): Protection Occupation group is in surplus (funded ratio 103.65%); anticipated fiscal effects are modest, with two recent ordinary disabilities (past five years) that would qualify under the new definition.
  • Overall: The bill does not change total system contribution rates for FY2026 in the fiscal notes — it reallocates employer/employee shares and raises the MFPRSI employee cap.

Implementation and timeline

  • Effective dates:
    • Contribution split changes and the new 411 employee cap take effect for the fiscal year beginning July 1, 2025.
    • The provision authorizing IPERS to adopt emergency rules took effect upon enactment (June 6, 2025), allowing immediate rulemaking.
  • Section 25B.2(3) (state mandate funding relief) was made inapplicable to this Act (i.e., political subdivisions may not be relieved from costs under that provision).

Legislative status

  • Introduced: March 20, 2025
  • Passed both chambers (Senate amendment H-1223 adopted; later enrolled)
  • Signed by Governor Kim Reynolds: June 6, 2025
  • Fiscal notes and multiple amendment versions issued; final fiscal note dated “Final Action” accompanies the enrolled Act.

This summary highlights the substantive changes and expected budgetary consequences contained in HF 969.

Compiled from official sources — confirm details with the bill’s official record.

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