1.If a member receives an injury or dies for which benefits are payable under section
411.6, subsection 3, 5, 8, or 9, or section 411.15, and if the injury or death is caused under
circumstances creating a legal liability for damages against a third party other than the
retirement system, the retirement system is subrogated to the rights of the member or the
member’s beneficiary entitled to receive a death benefit and may maintain an action for
damages against the third party for lost earnings and lost earnings capacity. If the retirement
system recovers damages in the action, the court shall enter judgment for distribution of the
recovery as follows:
a.Asumsufficienttorepaytheretirementsystemfortheamountofsuchbenefitsactually
paid by the retirement system up to the time of the entering
Free access — add to your briefcase to read the full text and ask questions with AI
1. If a member receives an injury or dies for which benefits are payable under section
411.6, subsection 3, 5, 8, or 9, or section 411.15, and if the injury or death is caused under
circumstances creating a legal liability for damages against a third party other than the
retirement system, the retirement system is subrogated to the rights of the member or the
member’s beneficiary entitled to receive a death benefit and may maintain an action for
damages against the third party for lost earnings and lost earnings capacity. If the retirement
system recovers damages in the action, the court shall enter judgment for distribution of the
recovery as follows:
a. Asumsufficienttorepaytheretirementsystemfortheamountofsuchbenefitsactually
paid by the retirement system up to the time of the entering of the judgment.
b. A sum sufficient to pay the retirement system the present worth, computed at the
interest rate assumption adopted by the system pursuant to section 411.5, subsection 9, of
the future payments of such benefits, for which the retirement system is liable, but the sum
is not a final adjudication of the future payments which the member is entitled to receive.
c. A sum sufficient to repay the retirement system for the costs and expenses of
maintaining the action.
d. Any balance remaining after the repayments provided by paragraphs “a” through “c”
shall be paid to the injured member, or the beneficiary under section 411.6, subsection 8 or
9, whichever is applicable.
2. Ifthesystem,afterreceivingwrittennoticeofthethird-partyliability,declinesinwriting
to maintain an action against the third party or fails to maintain an action within one hundred
eighty days of receiving written notice of the third-party liability, the member, the member’s
estate, or the legal representative of the member or the member’s estate, may maintain an
action for damages against the third party. If such an action is commenced, the plaintiff
member, estate, or representative shall serve a copy of the original notice upon the retirement
systemnotlessthantendaysbeforethetrialoftheaction,butafailuretoservethenoticedoes
not prejudice the rights of the retirement system, and the following rights and duties ensue:
a. Theretirementsystemshallbeindemnifiedoutoftherecoveryofdamagestotheextent
of benefit payments paid or awarded by the retirement system, with legal interest, except
that the plaintiff member’s or estate’s attorney fees may be first allowed by the district court.
For purposes of this paragraph, “benefit payments paid or awarded” means the sum of the
following amounts:
(1) The amount of benefits actually paid by the retirement system up to the time of the
entering of the judgment.
(2) The present worth, computed at the interest rate provided in section 535.3 for court
judgments and decrees, of the future payments of such benefits, for which the retirement
system is liable, but the sum is not a final adjudication of the future payments which the
member is entitled to receive.
b. The retirement system has a lien on the damage claim against the third party and on
any judgment on the damage claim for benefits for which the retirement system is liable. In
order to continue and preserve the lien, the retirement system shall file a notice of the lien
within thirty days after receiving a copy of the original notice in the office of the clerk of the
district court in which the action is filed.
3. Before a settlement is effective between the retirement system and a third party who
is liable for an injury or death, the member or beneficiary must consent in writing to the
settlement; and if the settlement is between the member or the member’s estate and a
third party, the retirement system must consent in writing to the settlement; or on refusal
to consent, in either case, the district court in the county in which either the city or the
retirement system is located must consent in writing to the settlement.
4. For purposes of subrogation under this section, a payment made to an injured member,
a member’s estate, or the legal representative of the member or member’s estate, by or on
behalf of a third party or the third party’s principal or agent, who is liable for, connected
with, or involved in causing the injury or death of the member, shall be considered paid as
damagesbecausetheinjuryordeathwascausedundercircumstancescreatingalegalliability
againstthethirdparty,whetherthepaymentismadeunderacovenantnottosue,compromise
settlement, denial of liability, or is otherwise made.