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HF 232

A bill for an act relating to credit for accrued sick leave of public safety employees.

2025-2026 Regular Session Introduced by Eric Gjerde

HF 232 converts public-safety retirees' unused sick leave into funds to pay monthly health-insurance premiums in retirement (survivors may use remaining value).

Introduced, referred to State Government.
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Bill Summary · HF 232

Summary: HF 232 – Credit for Accrued Sick Leave of Public Safety Employees

Bill at a Glance

  • Bill Number: HF 232
  • Title: A bill for an act relating to credit for accrued sick leave of public safety employees
  • Status: Introduced; referred to State Government
  • Introduced: February 6, 2025
  • Prime Sponsor: Gjerde (primary)

Purpose and Intent

HF 232 would create a new mechanism to convert unused sick leave for retiring public safety employees into a funded resource to help pay health insurance premiums during retirement. The goal is to ensure continuation of health insurance for the retiree (and later for surviving family) by converting accrued sick leave into current-value funds dedicated to premium payments.

Key Provisions

  • New statutory provision: Creates Section 70A.23A, “Credit for accrued sick leave — retired public safety employees.”
  • Who is eligible: A public safety employee (as defined by §20.3) who retires and applies for retirement benefits under an eligible retirement system.
  • How the benefit is calculated: All accumulated, unused sick leave shall be converted at 100 percent of current value.
  • Use of the credit: The value is credited to an account for the retiree to pay the monthly premiums for continuation of the public safety employee’s health insurance plan.
  • Survivor benefits: Upon the retiree’s death, the remaining value of the converted sick leave may be used by the surviving spouse or dependents to pay the ongoing monthly premiums for health insurance for the surviving spouse or dependents.
  • Exclusions: The provision does not apply to public safety employees covered by a collective bargaining agreement that provides for an employer-paid retirement health savings plan.

Who Would Be Affected

  • Directly Affected: Public safety employees who retire under an eligible retirement system and their surviving spouses or dependents.
  • Indirect/Fiscal Impact: Public employers (state or local) that fund health insurance premiums for retirees, and potentially the retirees’ estates or survivors, depending on how the value is used over time.
  • Exemption: Employees covered by a collective bargaining agreement that includes an employer-paid retirement health savings plan are exempt from this provision.

Procedural and Timeline Aspects

  • Legislative action to date: Introduced and referred to the State Government committee on February 6, 2025.
  • Next steps: Committee consideration, potential amendments, and House floor action as the bill moves through the legislative process.

Notes and Considerations

  • The bill uses “notwithstanding” language with respect to §70A.23, indicating this is a special, optional credit outside existing rules for sick leave in retirement.
  • The exact definition of “public safety employee” relies on §20.3; typical scope includes roles within police, fire, and related public safety agencies, subject to statutory definition.
  • The bill does not specify a dollar cap or maximum value for the sick leave credit, beyond the 100% current value conversion.
  • Fiscal impact details (e.g., cost to state/local governments) are not provided in the introduced text and would likely appear in a fiscal note if developed.

This summary reflects only the introduced text and may be amended as the bill moves through the legislative process.

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

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