Senate Study Bill 3244
SENATE FILE
BY (PROPOSED COMMITTEE ON
STATE GOVERNMENT BILL BY
CHAIRPERSON CONNOLLY)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to public retirement systems and other employee
2 benefit=related matters, including the public safety peace
3 officers' retirement, accident, and disability system, the
4 Iowa public employees' retirement system, the statewide fire
5 and police retirement system, and the judicial retirement
6 system, providing an appropriation, including an
7 implementation provision, and providing effective and
8 retroactive applicability dates.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
10 TLSB 5594SC 82
11 ec/sc/5
PAG LIN
1 1 DIVISION I
1 2 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT,
1 3 ACCIDENT, AND DISABILITY SYSTEM
1 4 Section 1. Section 97A.1, subsection 14, Code 2007, is
1 5 amended by striking the subsection.
1 6 Sec. 2. Section 97A.1, subsection 15, Code 2007, is
1 7 amended to read as follows:
1 8 15. "Pensions" shall mean annual payments for life derived
1 9 from the appropriations provided by the state of Iowa and from
1 10 contributions of the members which are deposited in the
1 11 pension accumulation retirement fund. All pensions shall be
1 12 paid in equal monthly installments.
1 13 Sec. 3. Section 97A.4, Code 2007, is amended by adding the
1 14 following new unnumbered paragraph:
1 15 NEW UNNUMBERED PARAGRAPH. Upon application by the member
1 16 prior to June 30, 2009, the board of trustees shall credit as
1 17 service for a member of the system a previous period of
1 18 service as a member of a city fire retirement system and
1 19 police retirement system operating under chapter 411 prior to
1 20 January 1, 1992, for which service was not eligible to be
1 21 transferred to this system pursuant to section 97A.17.
1 22 Sec. 4. Section 97A.5, subsections 3 and 4, Code 2007, are
1 23 amended to read as follows:
1 24 3. COMPENSATION. The trustees shall serve as such without
1 25 compensation, but they shall be reimbursed from the expense
1 26 retirement fund for all necessary expenses which they may
1 27 incur through service on the board.
1 28 4. RULES. The board of trustees shall, from time to time,
1 29 establish such rules not inconsistent with this chapter, for
1 30 the administration of funds the system and the retirement fund
1 31 created by this chapter and as may be necessary or appropriate
1 32 for the transaction of its business.
1 33 Sec. 5. Section 97A.5, subsection 6, paragraph a, Code
1 34 2007, is amended to read as follows:
1 35 a. The department of public safety shall keep in
2 1 convenient form the data necessary for the actuarial valuation
2 2 of the various funds of the system and for checking the
2 3 expense of the system. The commissioner of public safety
2 4 shall keep a record of all the acts and proceedings of the
2 5 board, which records shall be open to public inspection. The
2 6 board of trustees shall biennially make a report to the
2 7 general assembly showing the fiscal transactions of the system
2 8 for the preceding biennium, the amount of the accumulated cash
2 9 and securities of the system, and the last balance sheet
2 10 showing the financial condition of the system by means of an
2 11 actuarial valuation of the assets and liabilities of the
2 12 system.
2 13 Sec. 6. Section 97A.5, subsections 8, 9, 11, and 12, Code
2 14 2007, are amended to read as follows:
2 15 8. MEDICAL BOARD. The board of trustees shall designate a
2 16 single medical provider network as the medical board to be
2 17 composed of three physicians who for the system. The medical
2 18 board shall arrange for and pass upon the all medical
2 19 examinations required under the provisions of this chapter and
2 20 shall report in writing to the board of trustees, its
2 21 conclusions and recommendations upon all matters duly referred
2 22 to it. For examinations required because of disability, a
2 23 physician from the medical board specializing in occupational
2 24 medicine, and a second physician specializing in an
2 25 appropriate field of medicine as determined by the
2 26 occupational medicine physician, shall pass upon the medical
2 27 examinations required for disability retirements and shall
2 28 report to the system in writing their conclusions and
2 29 recommendations upon all matters referred to the medical
2 30 board. Each report of a medical examination under section
2 31 97A.6, subsections 3 and 5, shall include the medical board's
2 32 findings in accordance with section 97A.6 as to the extent of
2 33 the member's physical impairment.
2 34 9. DUTIES OF ACTUARY. The actuary hired by the board of
2 35 trustees shall be the technical advisor of the board of
3 1 trustees on matters regarding the operation of the funds
3 2 retirement fund created by the provisions of this chapter and
3 3 shall perform such other duties as are required in connection
3 4 therewith.
3 5 11. ACTUARIAL INVESTIGATION. At least once in each
3 6 two=year period, the actuary hired by the board of trustees
3 7 shall make an actuarial investigation in the mortality,
3 8 service, and compensation experience of the members and
3 9 beneficiaries of the system, and the interest and other
3 10 earnings on the moneys and other assets of the system, and
3 11 shall make a valuation of the assets and liabilities of the
3 12 funds retirement fund of the system, and taking into account
3 13 the results of the investigation and valuation, the board of
3 14 trustees shall:
3 15 a. Adopt adopt for the system, upon recommendation of the
3 16 system's actuary, such actuarial methods and assumptions,
3 17 interest rate, and mortality and other tables as shall be
3 18 deemed necessary;
3 19 b. Certify the rates of contribution payable by the state
3 20 of Iowa in accordance with section 97A.8 to conduct the
3 21 actuarial valuation of the system.
3 22 12. ANNUAL ACTUARIAL VALUATION.
3 23 a. On the basis of the actuarial methods and assumptions,
3 24 rate of interest, and tables adopted by the board of trustees,
3 25 the actuary hired by the board of trustees shall make an
3 26 annual actuarial valuation of the assets and liabilities of
3 27 the funds of the system retirement fund created by this
3 28 chapter. As a result of the annual actuarial valuation, the
3 29 board of trustees shall certify the rates of contribution
3 30 payable by the state of Iowa in accordance with section 97A.8.
3 31 b. Effective with the fiscal year beginning July 1, 2008,
3 32 the annual actuarial valuation required to be conducted shall
3 33 include information as required by section 97D.5.
3 34 Sec. 7. Section 97A.5, subsection 13, paragraphs b, c, and
3 35 d, Code 2007, are amended to read as follows:
4 1 b. The funds retirement fund established in section 97A.8
4 2 shall be held in trust for the benefit of the members of the
4 3 system and the members' beneficiaries. No part of the corpus
4 4 or income of the funds retirement fund shall be used for, or
4 5 diverted to, purposes other than for the exclusive benefit of
4 6 the members or the members' beneficiaries or for expenses
4 7 incurred in the operation of the funds retirement fund. A
4 8 person shall not have any interest in, or right to, any part
4 9 of the corpus or income of the funds retirement fund except as
4 10 otherwise expressly provided.
4 11 c. Notwithstanding any provision of this chapter to the
4 12 contrary, in the event of a complete discontinuance of
4 13 contributions, for reasons other than achieving fully funded
4 14 status upon an actuarially determined basis, or upon
4 15 termination of the funds retirement fund established in
4 16 section 97A.8, a member shall be vested, to the extent then
4 17 funded, in the benefits which the member has accrued at the
4 18 date of the discontinuance or termination.
4 19 d. Benefits payable from the funds retirement fund
4 20 established in section 97A.8 to members and members'
4 21 beneficiaries shall not be increased due to forfeitures from
4 22 other members. Forfeitures shall be used as soon as possible
4 23 to reduce future contributions by the state to the pension
4 24 accumulation retirement fund, except that the rate shall not
4 25 be less than the minimum rate established in section 97A.8.
4 26 Sec. 8. Section 97A.5, subsection 14, Code 2007, is
4 27 amended to read as follows:
4 28 14. INVESTMENT CONTRACTS. The board of trustees may
4 29 execute contracts and agreements with investment advisors,
4 30 consultants, and investment management and benefit consultant
4 31 firms in the administration of the funds retirement fund
4 32 established in section 97A.8.
4 33 Sec. 9. Section 97A.6, subsection 7, Code 2007, is amended
4 34 by adding the following new paragraph:
4 35 NEW PARAGRAPH. d. Should a disability beneficiary under
5 1 age fifty=five be employed in a public safety occupation, the
5 2 disability beneficiary's retirement allowance shall cease.
5 3 Notwithstanding any provision of this chapter to the contrary,
5 4 if a disability beneficiary is employed in a public safety
5 5 occupation that would otherwise constitute membership service,
5 6 the disability beneficiary shall not become a member of the
5 7 system. For purposes of this paragraph, "public safety
5 8 occupation" means a peace officer, as defined in section
5 9 97A.1; a protection occupation, as defined in section 97B.49B;
5 10 a sheriff or deputy sheriff as defined in section 97B.49C; and
5 11 a police officer or fire fighter as defined in section 411.1,
5 12 who was not restored to active service as provided by this
5 13 subsection.
5 14 Sec. 10. Section 97A.6, subsection 11, Code 2007, is
5 15 amended to read as follows:
5 16 11. PENSIONS OFFSET BY COMPENSATION BENEFITS. Any amounts
5 17 which may be paid or payable by the state under the provisions
5 18 of any workers' compensation or similar law to a member or to
5 19 the dependents of a member on account of any disability or
5 20 death, shall be offset against and payable in lieu of any
5 21 benefits payable out of funds the retirement fund provided by
5 22 the state under the provisions of this chapter on account of
5 23 the same disability or death. In case the present value of
5 24 the total commuted benefits under said workers' compensation
5 25 or similar law is less than the pension reserve on present
5 26 value of the benefits otherwise payable from funds the
5 27 retirement fund provided by the state under this chapter, then
5 28 the present value of the commuted payments shall be deducted
5 29 from the pension reserve payable and such benefits as may be
5 30 provided by the pension reserve system so reduced shall be
5 31 payable under the provisions of this chapter.
5 32 Sec. 11. Section 97A.7, subsections 1, 2, and 3, Code
5 33 Supplement 2007, are amended to read as follows:
5 34 1. The board of trustees shall be the trustees of the
5 35 several funds retirement fund created by this chapter as
6 1 provided in section 97A.8 and shall have full power to invest
6 2 and reinvest such funds subject to the terms, conditions,
6 3 limitations, and restrictions imposed by subsection 2 of this
6 4 section and chapter 12F, and subject to like terms,
6 5 conditions, limitations, and restrictions said trustees shall
6 6 have full power to hold, purchase, sell, assign, transfer, or
6 7 dispose of any of the securities and investments in which any
6 8 of the funds created herein shall retirement fund which have
6 9 been invested, as well as of the proceeds of said investments
6 10 and any moneys belonging to said funds the retirement fund.
6 11 The board of trustees may authorize the treasurer of state to
6 12 exercise any of the duties of this section. When so
6 13 authorized the treasurer of state shall report any
6 14 transactions to the board of trustees at its next monthly
6 15 meeting.
6 16 2. The several funds retirement fund created by this
6 17 chapter may be invested in any investments authorized for the
6 18 Iowa public employees' retirement system in section 97B.7A.
6 19 3. The treasurer of the state shall be the custodian of
6 20 the several funds retirement fund. All payments from said
6 21 funds the retirement fund shall be made by the treasurer only
6 22 upon vouchers signed by two persons designated by the board of
6 23 trustees. A duly attested copy of the resolution of the board
6 24 of trustees designating such persons and bearing on its face
6 25 specimen signatures of such persons shall be filed with the
6 26 treasurer of state as the treasurer's authority for making
6 27 payments on such vouchers. No voucher shall be drawn unless
6 28 it shall previously have been allowed by resolution of the
6 29 board of trustees.
6 30 Sec. 12. Section 97A.8, Code 2007, is amended to read as
6 31 follows:
6 32 97A.8 METHOD OF FINANCING.
6 33 There is hereby created as a special fund, separate and
6 34 apart from all other public moneys or funds of this state, the
6 35 peace officers' retirement, accident, and disability system
7 1 retirement fund, hereafter called the "retirement fund". All
7 2 the assets of the system created and established by this
7 3 chapter shall be credited according to the purpose for which
7 4 they are held to one of three funds, namely, the pension
7 5 accumulation fund, the pension reserve fund, and the expense
7 6 to the retirement fund.
7 7 1. PENSION ACCUMULATION FUND. The pension accumulation
7 8 fund shall be the fund in which shall be accumulated all All
7 9 moneys for the payment of all pensions and other benefits
7 10 payable from contributions made by the state and from which
7 11 shall be paid the lump=sum death benefits for all members
7 12 payable from the said contributions shall be accumulated in
7 13 the retirement fund. The refunds and benefits for all members
7 14 and beneficiaries shall be payable from the retirement fund.
7 15 Contributions to and payments from the pension accumulation
7 16 retirement fund shall be as follows:
7 17 a. On account of each member there shall be paid annually
7 18 into the pension accumulation retirement fund by the state of
7 19 Iowa an amount equal to a certain percentage of the earnable
7 20 compensation of the member to be known as the "normal
7 21 contribution". The rate percent of such contribution shall be
7 22 fixed on the basis of the liabilities of the retirement system
7 23 as shown by annual actuarial valuations.
7 24 b. (1) On the basis of the actuarial methods and
7 25 assumptions, rate of interest, and of the mortality, interest,
7 26 and other tables adopted by the board of trustees, the board
7 27 of trustees, upon the advice of the actuary hired by the board
7 28 for that purpose, shall make each valuation required by this
7 29 chapter pursuant to the requirements of section 97A.5 and
7 30 shall immediately after making such valuation, determine the
7 31 "normal contribution rate". The normal contribution rate
7 32 shall be the rate percent of the earnable compensation of all
7 33 members obtained by deducting from the total liabilities of
7 34 the fund the sum of the amount of the funds in hand to the
7 35 credit of the fund and dividing the remainder by one percent
8 1 of the present value of the prospective future compensation of
8 2 all members as computed on the basis of the rate of interest
8 3 and of mortality and service tables adopted by the board of
8 4 trustees, all equal to the rate required by the system to
8 5 discharge its liabilities, stated as a percentage of the
8 6 earnable compensation of all members, and reduced by the
8 7 employee contribution made pursuant to rate provided in this
8 8 subsection. However, the normal rate of contribution shall
8 9 not be less than seventeen percent. The normal rate of
8 10 contribution shall be determined by the board of trustees
8 11 after each valuation. To assist in determining the normal
8 12 rate of contribution, the board of trustees may adopt a
8 13 smoothing method for valuing the assets of the system. The
8 14 smoothing method is designed to reduce changes in the normal
8 15 contribution rate which could result from fluctuations in the
8 16 market value of the assets of the system.
8 17 (2) Notwithstanding the provisions of subparagraph (1) to
8 18 the contrary, the normal contribution rate shall be as
8 19 follows:
8 20 (a) For the fiscal year beginning July 1, 2008, nineteen
8 21 percent.
8 22 (b) For the fiscal year beginning July 1, 2009, twenty=one
8 23 percent.
8 24 (c) For the fiscal year beginning July 1, 2010,
8 25 twenty=three percent.
8 26 (d) For the fiscal year beginning July 1, 2011,
8 27 twenty=five percent.
8 28 (e) For each fiscal year beginning on or after July 1,
8 29 2012, the lesser of twenty=seven percent or the normal
8 30 contribution rate as calculated pursuant to subparagraph (1).
8 31 c. The total amount payable in each year to the pension
8 32 accumulation retirement fund shall not be less than the rate
8 33 percent known as the normal contribution rate of the total
8 34 compensation earnable by all members during the year.
8 35 However, the aggregate payment by the state shall be
9 1 sufficient when combined with the amount in the retirement
9 2 fund to provide the pensions and other benefits payable out of
9 3 the retirement fund during the then current year.
9 4 d. All lump=sum death benefits on account of death in
9 5 active service payable from contributions of the state shall
9 6 be paid from the pension accumulation retirement fund.
9 7 e. Upon the retirement or death of a member an amount
9 8 equal to the pension reserve on any pension payable to the
9 9 member or on account of the member's death shall be
9 10 transferred from the pension accumulation fund to the pension
9 11 reserve fund.
9 12 f. e. Except as otherwise provided in paragraph "h" "g":
9 13 (1) An amount equal to three and one=tenth percent of each
9 14 member's compensation from the earnable compensation of the
9 15 member shall be paid to the pension accumulation retirement
9 16 fund for the fiscal year beginning July 1, 1989.
9 17 (2) An amount equal to four and one=tenth percent of each
9 18 member's compensation from the earnable compensation of the
9 19 member shall be paid to the pension accumulation retirement
9 20 fund for the fiscal year beginning July 1, 1990.
9 21 (3) An amount equal to five and one=tenth percent of each
9 22 member's compensation from the earnable compensation of the
9 23 member shall be paid to the pension accumulation retirement
9 24 fund for the fiscal year beginning July 1, 1991.
9 25 (4) An amount equal to six and one=tenth percent of each
9 26 member's compensation from the earnable compensation of the
9 27 member shall be paid to the pension accumulation retirement
9 28 fund for the fiscal year beginning July 1, 1992.
9 29 (5) An amount equal to seven and one=tenth percent of each
9 30 member's compensation from the earnable compensation of the
9 31 member shall be paid to the pension accumulation retirement
9 32 fund for the fiscal year beginning July 1, 1993.
9 33 (6) An amount equal to eight and one=tenth percent of each
9 34 member's compensation from the earnable compensation of the
9 35 member shall be paid to the pension accumulation retirement
10 1 fund for the fiscal period beginning July 1, 1994, through
10 2 December 31, 1994, and an amount equal to eight and
10 3 thirty=five hundredths percent of each member's compensation
10 4 from the earnable compensation of the member shall be paid to
10 5 the pension accumulation retirement fund for the fiscal period
10 6 beginning January 1, 1995, through June 30, 1995.
10 7 (7) An amount equal to nine and thirty=five hundredths
10 8 percent of each member's compensation from the earnable
10 9 compensation of the member shall be paid to the pension
10 10 accumulation retirement fund for the fiscal year beginning
10 11 July 1, 1995.
10 12 (8) Notwithstanding any other provision of this chapter,
10 13 beginning July 1, 1996, and each fiscal year thereafter, an
10 14 amount equal to the member's contribution rate times each
10 15 member's compensation shall be paid to the pension
10 16 accumulation retirement fund from the earnable compensation of
10 17 the member. For the purposes of this subparagraph, the
10 18 member's contribution rate shall be nine and thirty=five
10 19 hundredths percent. However, the system shall increase the
10 20 member's contribution rate as necessary to cover any increase
10 21 in cost to the system resulting from statutory changes which
10 22 are enacted by any session of the general assembly meeting
10 23 after January 1, 1995, if the increase cannot be absorbed
10 24 within the contribution rates otherwise established pursuant
10 25 to this paragraph, but subject to a maximum employee
10 26 contribution rate of eleven and three=tenths percent. After
10 27 the employee contribution reaches eleven and three=tenths
10 28 percent, sixty percent of the additional cost of such
10 29 statutory changes shall be paid by the employer under
10 30 paragraph "c" and forty percent of the additional cost shall
10 31 be paid by employees under this paragraph subparagraph (8).
10 32 g. f. The board of trustees shall certify to the director
10 33 of the department of administrative services and the director
10 34 of the department of administrative services shall cause to be
10 35 deducted from the earnable compensation of each member the
11 1 contribution required under this subsection and shall forward
11 2 the contributions to the board of trustees for recording and
11 3 for deposit in the pension accumulation retirement fund.
11 4 The deductions provided for under this subsection shall be
11 5 made notwithstanding that the minimum compensation provided by
11 6 law for any member is reduced. Every member is deemed to
11 7 consent to the deductions made under this section.
11 8 h. g. Notwithstanding the provisions of paragraph "f"
11 9 "e", the following transition percentages apply to members'
11 10 contributions as specified:
11 11 (1) For members who on July 1, 1990, have attained the age
11 12 of forty=nine years or more, an amount equal to nine and
11 13 one=tenth percent of each member's compensation from the
11 14 earnable compensation of the member shall be paid to the
11 15 pension accumulation retirement fund for the fiscal period
11 16 beginning July 1, 1990, through October 15, 1992, and
11 17 commencing October 16, 1992, and for each subsequent fiscal
11 18 period, the rates specified in paragraph "f" "e",
11 19 subparagraphs (4) through (8), shall apply.
11 20 (2) For members who on July 1, 1990, have attained the age
11 21 of forty=eight years but have not attained the age of
11 22 forty=nine years, an amount equal to eight and one=tenth
11 23 percent shall be paid for the fiscal year beginning July 1,
11 24 1990, and an amount equal to nine and one=tenth percent shall
11 25 be paid for the fiscal period beginning July 1, 1991, through
11 26 October 15, 1992, and commencing October 16, 1992, and for
11 27 each subsequent fiscal period, the rates specified in
11 28 paragraph "f" "e", subparagraphs (4) through (8), shall apply.
11 29 (3) For members who on July 1, 1990, have attained the age
11 30 of forty=seven years but have not attained the age of
11 31 forty=eight years, an amount equal to seven and one=tenth
11 32 percent shall be paid for the fiscal year beginning July 1,
11 33 1990, an amount equal to eight and one=tenth percent shall be
11 34 paid for the fiscal year beginning July 1, 1991, and an amount
11 35 equal to nine and one=tenth percent shall be paid for the
12 1 fiscal period beginning July 1, 1992, through October 15,
12 2 1992, and commencing October 16, 1992, and for each subsequent
12 3 fiscal period, the rates specified in paragraph "f" "e",
12 4 subparagraphs (4) through (8), shall apply.
12 5 (4) For members who on July 1, 1990, have attained the age
12 6 of forty=six years but have not attained the age of
12 7 forty=seven years, an amount equal to six and one=tenth
12 8 percent shall be paid for the fiscal year beginning July 1,
12 9 1990, an amount equal to seven and one=tenth percent shall be
12 10 paid for the fiscal year beginning July 1, 1991, an amount
12 11 equal to eight and one=tenth percent shall be paid for the
12 12 fiscal period beginning July 1, 1992, through October 15,
12 13 1992, and commencing October 16, 1992, and for each subsequent
12 14 fiscal period, the rates specified in paragraph "f" "e",
12 15 subparagraphs (4) through (8), shall apply.
12 16 (5) For members who on July 1, 1990, have attained the age
12 17 of forty=five years but have not attained the age of forty=six
12 18 years, an amount equal to five and one=tenth percent shall be
12 19 paid for the fiscal year beginning July 1, 1990, an amount
12 20 equal to six and one=tenth percent shall be paid for the
12 21 fiscal year beginning July 1, 1991, and an amount equal to
12 22 seven and one=tenth percent shall be paid for the fiscal
12 23 period beginning July 1, 1992, through October 15, 1992.
12 24 Commencing October 16, 1992, and for each subsequent fiscal
12 25 period, the rates specified in paragraph "f" "e",
12 26 subparagraphs (4) through (8), shall apply.
12 27 i. h. (1) Notwithstanding paragraph "g" "f" or other
12 28 provisions of this chapter, beginning January 1, 1995, for
12 29 federal income tax purposes, and beginning January 1, 1999,
12 30 for state income tax purposes, member contributions required
12 31 under paragraph "f" "e" or "h" "g" which are picked up by the
12 32 department shall be considered employer contributions for
12 33 federal and state income tax purposes, and the department
12 34 shall pick up the member contributions to be made under
12 35 paragraph "f" "e" or "h" "g" by its employees. The department
13 1 shall pick up these contributions by reducing the salary of
13 2 each of its employees covered by this chapter by the amount
13 3 which each employee is required to contribute under paragraph
13 4 "f" "e" or "h" "g" and shall certify the amount picked up in
13 5 lieu of the member contributions to the department of
13 6 administrative services. The department of administrative
13 7 services shall forward the amount of the contributions picked
13 8 up to the board of trustees for recording and deposit in the
13 9 pension accumulation retirement fund.
13 10 (2) Member contributions picked up by the department under
13 11 subparagraph (1) shall be treated as employer contributions
13 12 for federal and state income tax purposes only and for all
13 13 other purposes of this chapter shall be treated as employee
13 14 contributions and deemed part of the employee's earnable
13 15 compensation or salary.
13 16 2. PENSION RESERVE FUND. The pension reserve fund shall
13 17 be the fund in which shall be held the reserves on all
13 18 pensions granted to members or to their beneficiaries and from
13 19 which such pensions and benefits in lieu thereof shall be
13 20 paid. Should a beneficiary retired on account of disability
13 21 be restored to active service and again become a member of the
13 22 system, the member's pension reserve shall be transferred from
13 23 the pension reserve fund to the pension accumulation fund.
13 24 Should the pension of a disability beneficiary be reduced as a
13 25 result of an increase in the beneficiary's amount earned, the
13 26 amount of the annual reduction in the beneficiary's pension
13 27 shall be paid annually into the pension accumulation fund
13 28 during the period of such reduction.
13 29 3. 2. a. EXPENSE FUND. The expense fund shall be the
13 30 fund to which shall be credited all money provided by the
13 31 state of Iowa to pay the administration expenses of the system
13 32 and from which shall be paid all All the expenses necessary in
13 33 connection with the administration and operation of the system
13 34 shall be paid from the retirement fund. Biennially the board
13 35 of trustees shall estimate the amount of money necessary to be
14 1 paid into the expense fund during the ensuing biennium to
14 2 provide for the expense of operation of the system.
14 3 Investment management expenses shall be charged to the
14 4 investment income of the system and there is appropriated from
14 5 the system an amount required for the investment management
14 6 expenses. The board of trustees shall report the investment
14 7 management expenses for the fiscal year as a percent of the
14 8 market value of the system.
14 9 b. For purposes of this subsection, investment management
14 10 expenses are limited to the following:
14 11 a. (1) Fees for investment advisors, consultants, and
14 12 investment management and benefit consultant firms hired by
14 13 the board of trustees in administering this chapter.
14 14 b. (2) Fees and costs for safekeeping fund assets.
14 15 c. (3) Costs for performance and compliance monitoring,
14 16 and accounting for fund investments.
14 17 d. (4) Any other costs necessary to prudently invest or
14 18 protect the assets of the fund.
14 19 Sec. 13. Section 97A.11, Code 2007, is amended to read as
14 20 follows:
14 21 97A.11 CONTRIBUTIONS BY THE STATE.
14 22 On or before the first day of November in each year, the
14 23 board of trustees shall certify to the director of the
14 24 department of administrative services the amounts which will
14 25 become due and payable during the year next following to the
14 26 pension accumulation retirement fund and the expense fund.
14 27 The amounts so certified shall be paid by the director of the
14 28 department of administrative services out of the funds
14 29 appropriated for the Iowa department of public safety, to the
14 30 treasurer of state, the same to be credited to the system for
14 31 the ensuing year.
14 32 Sec. 14. Section 97A.12, Code 2007, is amended to read as
14 33 follows:
14 34 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR
14 35 ASSIGNMENT == EXCEPTIONS.
15 1 The right of any person to a pension, annuity, or
15 2 retirement allowance, to the return of contributions, the
15 3 pension, annuity, or retirement allowance itself, any optional
15 4 benefit or death benefit, any other right accrued or accruing
15 5 to any person under this chapter, and the moneys in the
15 6 various funds retirement fund created under this chapter, are
15 7 not subject to execution, garnishment, attachment, or any
15 8 other process whatsoever, and are unassignable except for the
15 9 purposes of enforcing child, spousal, or medical support
15 10 obligations or marital property orders, or as otherwise
15 11 specifically provided in this chapter. For the purposes of
15 12 enforcing child, spousal, or medical support obligations, the
15 13 garnishment or attachment of or the execution against
15 14 compensation due a person under this chapter shall not exceed
15 15 the amount specified in 15 U.S.C. } 1673(b).
15 16 Sec. 15. Section 97A.14, Code 2007, is amended to read as
15 17 follows:
15 18 97A.14 HOSPITALIZATION AND MEDICAL ATTENTION.
15 19 The board of trustees shall provide hospital, nursing, and
15 20 medical attention for the members in service when injured
15 21 while in the performance of their duties and shall continue to
15 22 provide hospital, nursing, and medical attention for injuries
15 23 or diseases incurred while in the performance of their duties
15 24 for the members receiving a retirement allowance under section
15 25 97A.6, subsection 6. The cost of hospital, nursing, and
15 26 medical attention shall be paid out of the expense retirement
15 27 fund. However, any amounts received by the injured person
15 28 under the workers' compensation law of the state, or from any
15 29 other source for such specific purposes, shall be deducted
15 30 from the amount paid by the board of trustees provisions of
15 31 this section.
15 32 Sec. 16. Section 97A.14A, subsection 5, Code 2007, is
15 33 amended to read as follows:
15 34 5. All funds recovered by the system under this section
15 35 shall be deposited in the pension accumulation retirement fund
16 1 created in section 97A.8.
16 2 Sec. 17. Section 97A.15, subsection 2, paragraph a, Code
16 3 2007, is amended to read as follows:
16 4 a. "Accumulated contributions" means the sum of all
16 5 amounts deducted from the compensation of a member and
16 6 credited to the member's individual account in the annuity
16 7 savings fund together with regular interest thereon as
16 8 provided in this subsection. Accumulated contributions do not
16 9 include any amount deducted from the compensation of a member
16 10 and credited to the pension accumulation retirement fund.
16 11 Sec. 18. Section 97A.15, subsection 8, Code 2007, is
16 12 amended to read as follows:
16 13 8. The actuary shall annually determine the amount
16 14 required in the annuity reserve fund. If the amount required
16 15 is less than the amount in the annuity reserve fund, the board
16 16 of trustees shall transfer the excess funds from the annuity
16 17 reserve fund to the pension accumulation retirement fund. If
16 18 the amount required is more than the amount in the annuity
16 19 reserve fund, the board of trustees shall transfer the amount
16 20 prescribed by the actuary to the annuity reserve fund from the
16 21 pension accumulation retirement fund.
16 22 Sec. 19. PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
16 23 DISABILITY SYSTEM RETIREMENT FUND == APPROPRIATIONS. There is
16 24 appropriated from the general fund of the state for deposit in
16 25 the peace officers' retirement, accident, and disability
16 26 system retirement fund created in section 97A.8, for the
16 27 designated fiscal years, the following amounts:
16 28 FY 2008=2009.................................. $ 5,000,000
16 29 FY 2009=2010.................................. $ 5,000,000
16 30 FY 2010=2011.................................. $ 5,000,000
16 31 FY 2011=2012.................................. $ 5,000,000
16 32 FY 2012=2013.................................. $ 5,000,000
16 33 FY 2013=2014.................................. $ 5,000,000
16 34 FY 2014=2015.................................. $ 5,000,000
16 35 FY 2015=2016.................................. $ 5,000,000
17 1 FY 2016=2017.................................. $ 5,000,000
17 2 FY 2017=2018.................................. $ 5,000,000
17 3 FY 2018=2019.................................. $ 5,000,000
17 4 FY 2019=2020.................................. $ 5,000,000
17 5 Sec. 20. PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
17 6 DISABILITY SYSTEM == ADDITIONAL APPROPRIATION ==
17 7 REIMBURSEMENT.
17 8 1. Notwithstanding any provision of section 97A.8 to the
17 9 contrary, the Iowa department of public safety peace officers'
17 10 retirement, accident, and disability system as defined in
17 11 section 97A.2 shall not increase the contribution rate of
17 12 members of the system to cover any increase in cost to the
17 13 system resulting from the section of this Act amending section
17 14 97A.4.
17 15 2. In addition to any payments to the retirement fund as
17 16 provided in section 97A.8 and otherwise provided by law, there
17 17 shall be appropriated from the general fund of the state to
17 18 the retirement fund described in section 97A.8 an annual
17 19 amount equal to fifty thousand dollars for the fiscal period
17 20 beginning July 1, 2008, and ending June 30, 2028.
17 21 3. Notwithstanding any provision of chapter 97A to the
17 22 contrary, a member who purchased permissive service credit
17 23 pursuant to section 97A.10 for service as described in section
17 24 97A.10, paragraph "a", subparagraph (2), shall, upon
17 25 application to the retirement system by October 1, 2008,
17 26 receive credit for such service as provided by section 97A.4,
17 27 as amended in this Act, and be reimbursed from the retirement
17 28 fund as provided in section 97A.8 for contributions made by
17 29 the member to purchase such service.
17 30 DIVISION II
17 31 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
17 32 Sec. 21. Section 97B.1A, subsection 20, paragraph a, Code
17 33 2007, is amended to read as follows:
17 34 a. Service in the armed forces of the United States, if
17 35 the employee was employed by a covered employer immediately
18 1 prior to entry into the armed forces, and if the any of the
18 2 following requirements are met:
18 3 (1) The employee was released from service and returns to
18 4 covered employment with an employer within twelve months of
18 5 the date on which the employee has the right of release from
18 6 service or within a longer period as required by the
18 7 applicable laws of the United States.
18 8 (2) The employee, while serving on active duty in the
18 9 armed forces of the United States in an area designated by the
18 10 president of the United States or the United States Congress
18 11 as a combat zone or as a qualified hazardous duty area, or
18 12 deployed outside the United States away from the individual's
18 13 permanent duty station while participating in an operation
18 14 designated by the United States secretary of defense as a
18 15 contingency operation as defined in 10 U.S.C. } 101(a)(13), or
18 16 which became such a contingency operation by the operation of
18 17 law, dies, or suffers an injury or acquires a disease
18 18 resulting in death, so long as the death from the injury or
18 19 disease occurs within a two=year period from the date the
18 20 employee suffered the active duty injury or disease and the
18 21 active duty injury or disease prevented the employee from
18 22 returning to covered employment as provided in subparagraph
18 23 (1).
18 24 Sec. 22. Section 97B.1A, subsection 22, Code 2007, is
18 25 amended to read as follows:
18 26 22. "Special service" means service for an employer while
18 27 employed in a protection occupation as provided in section
18 28 97B.49B, and as a county sheriff or deputy sheriff as provided
18 29 in section 97B.49C, and as a county attorney or assistant
18 30 county attorney as provided in section 97B.49J.
18 31 Sec. 23. Section 97B.1A, subsection 26, paragraph a,
18 32 subparagraph (2), subparagraph subdivision (i), Code 2007, is
18 33 amended to read as follows:
18 34 (i) Payments for allowances made to an employee that are
18 35 not included in an employee's federal taxable income except
19 1 for those allowances included as wages for a member of the
19 2 general assembly.
19 3 Sec. 24. Section 97B.1A, subsection 26, paragraph a,
19 4 subparagraph (2), Code 2007, is amended by adding the
19 5 following new subparagraph subdivision:
19 6 NEW SUBPARAGRAPH SUBDIVISION. (n) Bonuses of any type,
19 7 whether paid in a lump sum or in installments.
19 8 Sec. 25. Section 97B.1A, subsection 26, paragraph b,
19 9 subparagraph (17), unnumbered paragraph 2, Code 2007, is
19 10 amended to read as follows:
19 11 Notwithstanding any other provision of this chapter
19 12 providing for the payment of the benefits provided in section
19 13 97B.49B, 97B.49C, 97B.49D, or 97B.49G, or 97B.49J, the system
19 14 shall establish the covered wages limitation which applies to
19 15 members covered under section 97B.49B, 97B.49C, 97B.49D, or
19 16 97B.49G, or 97B.49J, at the same level as is established under
19 17 this subparagraph (17) for other members of the retirement
19 18 system.
19 19 Sec. 26. Section 97B.4, subsection 2, Code Supplement
19 20 2007, is amended by adding the following new paragraph:
19 21 NEW PARAGRAPH. d. In administering this chapter, the
19 22 system shall not be a participating agency for purposes of
19 23 chapter 8A, subchapter II.
19 24 Sec. 27. Section 97B.4, subsection 4, paragraph d,
19 25 unnumbered paragraph 2, Code Supplement 2007, is amended to
19 26 read as follows:
19 27 Based upon the actuarial methods and assumptions adopted by
19 28 the board for the annual actuarial valuation, the system shall
19 29 certify to the governor the contribution rates determined
19 30 thereby as the rates necessary and sufficient for members and
19 31 employers to fully fund the benefits and retirement allowances
19 32 being credited. Effective with the fiscal year beginning July
19 33 1, 2008, the annual actuarial valuation required by this
19 34 paragraph shall include information as required by section
19 35 97D.5 for each membership group which separately determines
20 1 contribution rates under this chapter.
20 2 Sec. 28. Section 97B.7, subsection 3, paragraph d, Code
20 3 2007, is amended to read as follows:
20 4 d. To be used to pay for investment management expenses
20 5 incurred in the management of the retirement fund. Expenses
20 6 incurred pursuant to this paragraph shall be charged to the
20 7 investment income of the retirement fund. However, the amount
20 8 appropriated for a fiscal year under this paragraph shall not
20 9 exceed four=tenths of one percent of the market value of the
20 10 retirement fund.
20 11 Sec. 29. Section 97B.9, subsections 1 and 2, Code 2007,
20 12 are amended to read as follows:
20 13 1. An employer shall be charged the greater of ten twenty
20 14 dollars per occurrence or interest at the combined interest
20 15 and dividend rate required under section 97B.70 for the
20 16 applicable calendar year for contributions unpaid on the date
20 17 on which they are due and payable as prescribed by the system.
20 18 The system may adopt rules prescribing circumstances for which
20 19 the interest or charge shall not accrue with respect to
20 20 contributions required. Interest or charges collected
20 21 pursuant to this section shall be paid into the Iowa public
20 22 employees' retirement fund.
20 23 2. If within thirty days after due notice the employer
20 24 defaults in payment of contributions or interest thereon, the
20 25 amount due shall may be collected by civil action in the name
20 26 of the system, and the employer adjudged in default shall pay
20 27 the costs of such action. Civil actions brought under this
20 28 section to collect contributions or interest thereon shall be
20 29 heard by the court at the earliest possible date and shall be
20 30 entitled to preference upon the calendar of the court over all
20 31 other civil actions.
20 32 Sec. 30. Section 97B.10, subsection 3, Code 2007, is
20 33 amended to read as follows:
20 34 3. Except as provided in this subsection, interest
20 35 Interest shall not be paid on credits issued pursuant to this
21 1 section. However, if a credit for contributions paid prior to
21 2 an individual's decision to elect out of coverage pursuant to
21 3 section 97B.42A is issued, accumulated interest and interest
21 4 on dividends as provided in section 97B.70 shall apply. In
21 5 addition, the system may, at any time, apply accumulated
21 6 interest and interest dividends as provided in section 97B.70
21 7 on any credits issued under this section if the system finds
21 8 that the crediting of interest is just and equitable.
21 9 Sec. 31. Section 97B.11, Code 2007, is amended to read as
21 10 follows:
21 11 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.
21 12 1. Each employer shall deduct from the wages of each
21 13 member of the retirement system a contribution in the amount
21 14 of the applicable employee percentage of the covered wages
21 15 paid by the employer and such additional amount if otherwise
21 16 required by law, until the member's termination from
21 17 employment. The contributions of the employer shall be in the
21 18 amount of the applicable employer percentage of the covered
21 19 wages of the member and such additional amount if otherwise
21 20 required by law.
21 21 2. For Prior to July 1, 2011, for purposes of this
21 22 section, unless the context otherwise requires:
21 23 a. "Applicable employee percentage" means the percentage
21 24 rate equal to three and seven=tenths percent plus forty
21 25 percent of the total additional percentage.
21 26 b. "Applicable employer percentage" means the percentage
21 27 rate equal to five and seventy=five hundredths percent plus
21 28 sixty percent of the total additional percentage.
21 29 c. "Total additional percentage" means as follows:
21 30 (1) For, for the fiscal period beginning July 1, 2007,
21 31 through June 30, 2011, the total additional percentage for a
21 32 fiscal year shall be the total additional percentage for the
21 33 prior fiscal year plus, only if the total comparison
21 34 percentage is greater than the total of the applicable
21 35 employee percentage and the applicable employer percentage for
22 1 the prior fiscal year, one=half percentage point.
22 2 (2) For each fiscal year beginning on or after July 1,
22 3 2011, the total additional percentage shall be the total
22 4 additional percentage for the prior fiscal year.
22 5 d. "Total comparison percentage" means the percentage rate
22 6 that the system determines, based upon the most recent
22 7 actuarial valuation of the retirement system, would be
22 8 sufficient to amortize the unfunded actuarial liability of the
22 9 retirement system in ten years.
22 10 3. On and after July 1, 2011, for purposes of this
22 11 section, unless the context otherwise requires:
22 12 a. For members in regular service:
22 13 (1) "Applicable employee percentage" means the percentage
22 14 rate equal to forty percent of the required contribution rate
22 15 for members in regular service.
22 16 (2) "Applicable employer percentage" means the percentage
22 17 rate equal to sixty percent of the required contribution rate
22 18 for members in regular service.
22 19 b. For members in special service in a protection
22 20 occupation as described in section 97B.49B:
22 21 (1) "Applicable employee percentage" means the percentage
22 22 rate equal to forty percent of the required contribution rate
22 23 for members described in section 97B.49B.
22 24 (2) "Applicable employer percentage" means the percentage
22 25 rate equal to sixty percent of the required contribution rate
22 26 for members described in section 97B.49B.
22 27 c. For members in special service as a county sheriff or
22 28 deputy sheriff as described in section 97B.49C:
22 29 (1) "Applicable employee percentage" means the percentage
22 30 rate equal to fifty percent of the required contribution rate
22 31 for members described in section 97B.49C.
22 32 (2) "Applicable employer percentage" means the percentage
22 33 rate equal to fifty percent of the required contribution rate
22 34 for members described in section 97B.49C.
22 35 d. For members in special service as a county attorney or
23 1 assistant county attorney as described in section 97B.49J:
23 2 (1) "Applicable employee percentage" means the percentage
23 3 rate equal to forty percent of the required contribution rate
23 4 for members described in section 97B.49J.
23 5 (2) "Applicable employer percentage" means the percentage
23 6 rate equal to sixty percent of the required contribution rate
23 7 for members described in section 97B.49J.
23 8 e. "Required contribution rate" means that percentage of
23 9 the covered wages of members in regular service, members
23 10 described in section 97B.49B, members described in section
23 11 97B.49C, and members described in section 97B.49J, that the
23 12 system shall, for each fiscal year, separately set for members
23 13 in each membership category as provided in this paragraph.
23 14 The required contribution rate for a membership category shall
23 15 be the contribution rate the system actuarially determines,
23 16 based upon the most recent actuarial valuation of the system
23 17 and using the actuarial methods, assumptions, and funding
23 18 policy approved by the investment board, is the rate required
23 19 by the system to discharge its liabilities as a percentage of
23 20 the covered wages of members in that membership category.
23 21 However, the required contribution rate set by the system for
23 22 a fiscal year shall not vary by more than one=half percentage
23 23 point from the required contribution rate for the prior fiscal
23 24 year.
23 25 Sec. 32. Section 97B.14, Code 2007, is amended to read as
23 26 follows:
23 27 97B.14 CONTRIBUTIONS FORWARDED.
23 28 Contributions deducted from the wages of the member under
23 29 section 97B.11 prior to January 1, 1995, member contributions
23 30 picked up by the employer under section 97B.11A beginning
23 31 January 1, 1995, and the employer's contribution shall be
23 32 forwarded to the system for recording and deposited with the
23 33 treasurer of the state to the credit of the Iowa public
23 34 employees' retirement fund. Contributions shall be remitted
23 35 monthly, if total contributions by both employee and employer
24 1 amount to one hundred dollars or more each month, and shall be
24 2 otherwise paid in such manner, at such times, and under such
24 3 conditions, either by copies of payrolls or other methods
24 4 necessary or helpful in securing proper identification of the
24 5 member, as may be prescribed by the system.
24 6 Sec. 33. Section 97B.33, Code 2007, is amended to read as
24 7 follows:
24 8 97B.33 CERTIFICATION TO DIRECTOR PAYMENT TO INDIVIDUALS.
24 9 Upon final decision of the system, or upon final judgment
24 10 of any court of competent jurisdiction, that any person is
24 11 entitled to any payment or payments under this chapter, the
24 12 system shall certify to the director of the department of
24 13 administrative services the name and address of the person so
24 14 entitled to receive such payment or payments, the amount of
24 15 such payment or payments, and the time at which such payment
24 16 or payments should be made, and the system, through the
24 17 director of the department of administrative services, shall
24 18 make payment in accordance with the certification of the
24 19 system to the person, provided that where judicial review of
24 20 the system system's decision is or may be sought in accordance
24 21 with the terms of the Iowa administrative procedure Act,
24 22 chapter 17A, certification of payment may be withheld pending
24 23 such review. The director of the department of administrative
24 24 services shall not be held personally liable for any payment
24 25 or payments made in accordance with a certification by the
24 26 system.
24 27 Sec. 34. Section 97B.34A, subsections 1 and 2, Code 2007,
24 28 are amended to read as follows:
24 29 1. If the total sum to be paid to the minor is less than
24 30 ten the greater of twenty=five thousand dollars or the maximum
24 31 amount permitted under section 565B.7, subsection 3, the funds
24 32 may be paid to an adult as custodian for the minor. The
24 33 custodian must complete the proper forms as determined by the
24 34 system.
24 35 2. If the total sum to be paid to the minor is equal to or
25 1 more than ten thousand dollars the amount authorized in
25 2 subsection 1, the funds must be paid to a court=established
25 3 conservator. The system shall not make payment until the
25 4 conservatorship has been established and the system has
25 5 received the appropriate documentation.
25 6 Sec. 35. Section 97B.38, Code 2007, is amended to read as
25 7 follows:
25 8 97B.38 FEES FOR SERVICES.
25 9 The system may, by rule, prescribe reasonable fees which
25 10 may be charged for production costs incurred, including staff
25 11 time and materials, associated with performing to perform its
25 12 duties under this chapter for active, inactive, and retired
25 13 members, beneficiaries, and the general public, where such
25 14 production costs are more than de minimis, as determined by
25 15 the system.
25 16 Sec. 36. Section 97B.46, subsection 2, Code 2007, is
25 17 amended to read as follows:
25 18 2. A member remaining in service after attaining the age
25 19 of seventy years is entitled to receive a retirement allowance
25 20 under sections 97B.49A through 97B.49H 97B.49J, as applicable,
25 21 without terminating employment.
25 22 Sec. 37. Section 97B.48, subsections 3 and 4, Code 2007,
25 23 are amended to read as follows:
25 24 3. On or before the first of the month in which a member
25 25 attains the age of seventy years, the system shall provide
25 26 written notification to each member for whom the system has an
25 27 address that the member may commence receiving a retirement
25 28 allowance regardless of the member's employment status. Prior
25 29 to receiving a retirement allowance pursuant to this
25 30 subsection, a member shall acknowledge in writing that the
25 31 member was informed by the system of the consequences of
25 32 electing to receive a retirement allowance pursuant to this
25 33 subsection and that receipt of a retirement allowance under
25 34 this subsection is optional. Upon termination from employment
25 35 of a member receiving a retirement allowance pursuant to this
26 1 subsection, the member is entitled to have the member's
26 2 monthly retirement allowance recalculated using the applicable
26 3 formula for determining a retirement allowance pursuant to
26 4 sections 97B.49A through 97B.49G 97B.49J, as applicable, in
26 5 place at the time of the member's first month of entitlement.
26 6 4. Payment of a member's retirement allowance pursuant to
26 7 sections 97B.49A through 97B.49H 97B.49J shall commence no
26 8 later than the required beginning date specified under section
26 9 401(a)(9) of the federal Internal Revenue Code regardless of
26 10 whether the member has submitted the appropriate notice to
26 11 receive an allowance. If the lump sum actuarial equivalent
26 12 under subsection 1 could have been selected by the member,
26 13 payments shall be made in a lump sum rather than as a monthly
26 14 allowance.
26 15 Sec. 38. Section 97B.48A, subsection 3, Code 2007, is
26 16 amended to read as follows:
26 17 3. Upon a retirement after reemployment, a retired member
26 18 may have the retired member's retirement allowance
26 19 redetermined under this section or section 97B.48, section
26 20 97B.50, or section 97B.51, whichever is applicable, based upon
26 21 the addition of credit for the years of membership service of
26 22 the employee after reemployment, the covered wage during
26 23 reemployment, and the age of the employee after reemployment.
26 24 The member shall receive a single retirement allowance
26 25 calculated from both periods of membership service, one based
26 26 on the initial retirement and one based on the second
26 27 retirement following reemployment. If the total years of
26 28 membership service and prior service of a member who has been
26 29 reemployed equals or exceeds thirty, the years of membership
26 30 service on which the original retirement allowance was based
26 31 may be reduced by a fraction of the years of service equal to
26 32 the number of years by which the total years of membership
26 33 service and prior service exceeds thirty divided by thirty, if
26 34 this reduction in years of service will increase the total
26 35 retirement allowance of the member. The additional retirement
27 1 allowance calculated for the period of reemployment shall be
27 2 added to the retirement allowance calculated for the initial
27 3 period of membership service and prior service, adjusted as
27 4 provided in this subsection. The retirement allowance
27 5 calculated for the initial period of membership service and
27 6 prior service shall not be adjusted for any other factor than
27 7 years of service. The retired member shall not receive a
27 8 retirement allowance based upon more than a total of thirty
27 9 years of service. Effective July 1, 1998, a redetermination
27 10 of a retirement allowance as authorized by this subsection for
27 11 a retired member whose combined service exceeds the applicable
27 12 years of service for that member as provided in sections
27 13 97B.49A through 97B.49G 97B.49J shall have the determination
27 14 of the member's reemployment benefit based upon the percentage
27 15 multiplier as determined for that member as provided in
27 16 sections 97B.49A through 97B.49G 97B.49J.
27 17 Sec. 39. Section 97B.49B, subsection 1, paragraph e, Code
27 18 2007, is amended by adding the following new subparagraphs:
27 19 NEW SUBPARAGRAPH. (9) A jailer or detention officer who
27 20 performs duties as a jailer, including but not limited to the
27 21 transportation of inmates, who is certified as having
27 22 completed jailer training pursuant to chapter 80B, and who is
27 23 employed by a county as a jailer.
27 24 NEW SUBPARAGRAPH. (10) An employee covered by the merit
27 25 system as provided in chapter 8A, subchapter IV, whose primary
27 26 duty is providing security at Iowa national guard
27 27 installations and facilities and who carries or is licensed to
27 28 carry a firearm while performing those duties.
27 29 NEW SUBPARAGRAPH. (11) An emergency medical care provider
27 30 who provides emergency medical services, as defined in section
27 31 147A.1, and who is not a member of the retirement systems
27 32 established in chapter 410 or 411.
27 33 NEW SUBPARAGRAPH. (12) An investigator employed by a
27 34 county attorney's office who is a certified law enforcement
27 35 officer and who is deputized as an investigator for the county
28 1 attorney's office by the sheriff of the applicable county.
28 2 Sec. 40. Section 97B.49B, subsection 3, paragraph a, Code
28 3 2007, is amended by striking the paragraph.
28 4 Sec. 41. Section 97B.49C, subsection 3, paragraph a, Code
28 5 2007, is amended by striking the paragraph.
28 6 Sec. 42. Section 97B.49D, subsection 1, unnumbered
28 7 paragraph 1, Code 2007, is amended to read as follows:
28 8 An active or inactive vested member, who is or has been
28 9 employed in both special service and regular service, who
28 10 retires on or after July 1, 1996, with four or more completed
28 11 years of service and at the time of retirement is at least
28 12 fifty=five years of age, may elect to receive, in lieu of the
28 13 receipt of a monthly retirement allowance as calculated
28 14 pursuant to sections 97B.49A through, 97B.49B, 97B.49C, and
28 15 97B.49J, a combined monthly retirement allowance equal to the
28 16 sum of the following:
28 17 Sec. 43. Section 97B.49D, subsection 1, Code 2007, is
28 18 amended by adding the following new paragraph:
28 19 NEW PARAGRAPH. d. One=twelfth of an amount equal to the
28 20 applicable percentage of the member's three=year average
28 21 covered wage multiplied by a fraction of years of service.
28 22 The fraction of years of service for purposes of this
28 23 paragraph shall be the actual years of service, not to exceed
28 24 twenty=two, earned in a position described in section 97B.49J,
28 25 for which special service contributions were made, divided by
28 26 twenty=two. In calculating the fractions of years of service
28 27 under this paragraph, a member shall not receive special
28 28 service credit for years of service for which the member and
28 29 the member's employer did not make the required special
28 30 service contributions to the system.
28 31 Sec. 44. Section 97B.49D, subsections 2 and 3, Code 2007,
28 32 are amended to read as follows:
28 33 2. In calculating the combined monthly retirement
28 34 allowance pursuant to subsection 1, the sum of the fraction of
28 35 years of service provided in subsection 1, paragraphs "a",
29 1 "b", and "c", and "d", shall not exceed one. If the sum of
29 2 the fractions of years of service would exceed one, the system
29 3 shall deduct years of service first from the calculation under
29 4 subsection 1, paragraph "a", and then from the calculation
29 5 under subsection 1, paragraph "b", and then from the
29 6 calculation under subsection 1, paragraph "c", if necessary,
29 7 so that the sum of the fractions of years of service shall
29 8 equal one.
29 9 3. In calculating the combined monthly retirement
29 10 allowance pursuant to subsection 1, the applicable percentage
29 11 shall be sixty percent plus, if applicable, an additional
29 12 one=fourth of one percentage point for each additional
29 13 calendar quarter of membership service in service as described
29 14 in subsection 1, paragraph "a", "b", or "c", or "d", beyond
29 15 thirty years of service, not to exceed a total of five
29 16 additional percentage points. Any addition in the percentage
29 17 multiplier shall be included in the calculations required
29 18 under this section.
29 19 Sec. 45. Section 97B.49F, subsection 1, paragraph b,
29 20 subparagraph (2), subparagraph subdivision (b), Code 2007, is
29 21 amended to read as follows:
29 22 (b) The percentage representing the percentage amount the
29 23 actuary has certified, in the annual actuarial valuation of
29 24 the retirement system as of June 30 of the year in which the
29 25 dividend is to be paid, that the fund can absorb without
29 26 requiring an increase in the employer and employee
29 27 contributions to the fund. The actuary's certification of
29 28 such percentage amount shall be based on a comparison of the
29 29 actuarially required contribution rate for the fiscal year of
29 30 the dividend adjustment to the statutory contribution rate for
29 31 that same fiscal year. If the actuarially required
29 32 contribution rate exceeds the statutory contribution rate for
29 33 that same fiscal year, the percentage amount shall be zero.
29 34 Sec. 46. Section 97B.49H, subsection 3, Code 2007, is
29 35 amended to read as follows:
30 1 3. The system shall annually determine the amount to be
30 2 credited to the supplemental accounts of active members. The
30 3 total amount credited to the supplemental accounts of all
30 4 active members shall not exceed the amount that the system
30 5 determines, in consultation with the system's actuary, can be
30 6 absorbed without significantly impacting the funded status of
30 7 leaves the system fully funded following the crediting of the
30 8 total amount to the supplemental accounts. The amount to be
30 9 credited shall not be greater than the amount calculated by
30 10 multiplying the member's covered wages for the applicable wage
30 11 reporting period by the supplemental rate. For purposes of
30 12 this subsection, the supplemental rate is the difference, if
30 13 positive, between the combined employee and employer statutory
30 14 contribution rates in effect under section 97B.11 and the
30 15 normal cost rate of the retirement system as determined by the
30 16 system's actuary in the most recent annual actuarial valuation
30 17 of the retirement system. The credits shall be made at least
30 18 quarterly to each member's account at the time that covered
30 19 wages are reported for each wage reporting period during the
30 20 calendar year following a determination that the retirement
30 21 system does not have an unfunded accrued liability will remain
30 22 fully funded following the crediting of the total amount to
30 23 the supplemental accounts. The normal cost rate, calculated
30 24 according to the actuarial cost method used, is the percent of
30 25 pay allocated to each year of service that is necessary to
30 26 fund projected benefits over all members' service with the
30 27 retirement system.
30 28 Sec. 47. NEW SECTION. 97B.49J COUNTY ATTORNEYS AND
30 29 ASSISTANT COUNTY ATTORNEYS.
30 30 1. DEFINITIONS. For purposes of this section:
30 31 a. "Applicable percentage" means sixty percent plus, if
30 32 applicable, an additional three=eighths of one percentage
30 33 point for each additional calendar quarter of eligible service
30 34 beyond twenty=two years of service, not to exceed a total of
30 35 twelve additional percentage points.
31 1 b. "Assistant county attorney" means an attorney appointed
31 2 by the county attorney to serve as a full=time prosecutor as
31 3 provided in section 331.757, subsection 2.
31 4 c. "County attorney" means the person who holds the office
31 5 of county attorney as described in section 331.751.
31 6 d. "Eligible service" means membership and prior service
31 7 as a county attorney or assistant county attorney.
31 8 e. "Fraction of years of service" means a number, not to
31 9 exceed one, equal to the sum of the years of eligible service
31 10 under this section divided by twenty=two years.
31 11 2. CALCULATION OF MONTHLY ALLOWANCE. Notwithstanding
31 12 other provisions of this chapter, a member who is or has been
31 13 employed as a county attorney or assistant county attorney who
31 14 retires on or after July 1, 2008, and at the time of
31 15 retirement is at least fifty=five years of age, may elect to
31 16 receive, in lieu of the receipt of any benefits as calculated
31 17 pursuant to section 97B.49A or 97B.49D, a monthly retirement
31 18 allowance equal to one=twelfth of an amount equal to the
31 19 applicable percentage of the three=year average covered wage
31 20 as a member who has been employed as a county attorney or
31 21 assistant county attorney multiplied by a fraction of years of
31 22 service, with benefits payable during the member's lifetime.
31 23 3. ADDITIONAL CONTRIBUTIONS.
31 24 a. Annually, the system shall actuarially determine the
31 25 cost of the benefits provided for members covered under this
31 26 section as a percentage of the covered wages of the employees
31 27 covered by this section. Notwithstanding any provision of
31 28 section 97B.11 to the contrary, sixty percent of the cost
31 29 shall be paid by the employers of employees covered under this
31 30 section and forty percent of the cost shall be paid by the
31 31 employees. The employer and employee contributions required
31 32 under this paragraph shall be treated as contributions paid
31 33 under sections 97B.11 and 97B.11A. This lettered paragraph
31 34 shall be repealed July 1, 2011.
31 35 b. Annually, during each fiscal year commencing with the
32 1 fiscal year beginning July 1, 2008, each county shall pay to
32 2 the system the amount necessary to pay the employer share of
32 3 the cost of the benefits provided to county attorneys and
32 4 assistant county attorneys.
32 5 4. Notwithstanding any provision of this chapter to the
32 6 contrary, the three=year average covered wage for a member
32 7 retiring under this section whose years of eligible service
32 8 equals or exceeds twenty=two years of eligible service for
32 9 that member shall be determined by calculating the member's
32 10 eligible combined wage for each quarter year of eligible
32 11 service. For purposes of this subsection, "eligible combined
32 12 wage" means the wages earned by the member for each
32 13 quarter=year period from eligible service and from covered
32 14 employment that is not eligible service if at least
32 15 seventy=five percent of the wages earned was from eligible
32 16 service.
32 17 Sec. 48. Section 97B.50, subsection 2, Code 2007, is
32 18 amended by adding the following new paragraph:
32 19 NEW PARAGRAPH. d. For a vested member who retires from
32 20 the retirement system due to disability on or after July 1,
32 21 2009, and commences receiving disability benefits pursuant to
32 22 the federal Railroad Retirement Act, 45 U.S.C. } 231 et seq.,
32 23 or the federal Social Security Act, 42 U.S.C. } 423 et seq.,
32 24 the system may require the vested member to certify on an
32 25 annual basis continued eligibility for disability payments
32 26 under the federal Railroad Retirement Act or the federal
32 27 Social Security Act. If the vested member is under the age at
32 28 which disability benefits are converted under the federal
32 29 Social Security Act or the federal Railroad Retirement Act to
32 30 retirement benefits and is no longer eligible for disability
32 31 payments under either the federal Railroad Retirement Act or
32 32 the federal Social Security Act, the vested member shall no
32 33 longer be eligible to receive retirement benefits as provided
32 34 by this subsection. If the system has paid retirement
32 35 benefits to the member between the month the member was no
33 1 longer eligible for payment pursuant to the federal Railroad
33 2 Retirement Act or the federal Social Security Act and the
33 3 month the system terminated retirement benefits under this
33 4 paragraph, the member shall return all retirement benefits
33 5 paid by the system following the termination of such federal
33 6 disability benefits, plus interest. The system shall adopt
33 7 rules pursuant to chapter 17A to implement this paragraph.
33 8 Sec. 49. Section 97B.50, subsection 3, Code 2007, is
33 9 amended to read as follows:
33 10 3. A member who is at least sixty=two years of age and
33 11 less than sixty=five years of age, and who has completed
33 12 twenty or more years of membership service and prior service,
33 13 shall receive benefits under sections 97B.49A through 97B.49G
33 14 97B.49J, as applicable, determined as if the member had
33 15 attained sixty=five years of age.
33 16 Sec. 50. Section 97B.50A, subsection 2, paragraphs a and
33 17 d, Code 2007, are amended to read as follows:
33 18 a. A member who is injured in the performance of the
33 19 member's duties, and otherwise meets the requirements of this
33 20 subsection, shall receive an in=service disability retirement
33 21 allowance under this subsection, in lieu of a monthly
33 22 retirement allowance as provided in section 97B.49A, 97B.49B,
33 23 97B.49C, 97B.49D, or 97B.49G, or 97B.49J, as applicable.
33 24 d. Upon retirement for an in=service disability as
33 25 provided by this subsection, a member shall have the option to
33 26 receive a monthly in=service disability retirement allowance
33 27 calculated under this subsection or a monthly retirement
33 28 allowance as provided in section 97B.49A, 97B.49B, 97B.49C,
33 29 97B.49D, or 97B.49G, or 97B.49J, as applicable, that the
33 30 member would receive if the member had attained fifty=five
33 31 years of age. The monthly in=service disability allowance
33 32 calculated under this subsection shall consist of an allowance
33 33 equal to one=twelfth of sixty percent of the member's
33 34 three=year average covered wage or its actuarial equivalent as
33 35 provided under section 97B.51.
34 1 Sec. 51. Section 97B.50A, subsection 3, paragraphs a and
34 2 c, Code 2007, are amended to read as follows:
34 3 a. A member who otherwise meets the requirements of this
34 4 subsection shall receive an ordinary disability retirement
34 5 allowance under this subsection in lieu of a monthly
34 6 retirement allowance as provided in section 97B.49A, 97B.49B,
34 7 97B.49C, 97B.49D, or 97B.49G, or 97B.49J, as applicable.
34 8 c. Upon retirement for an ordinary disability as provided
34 9 by this subsection, a member shall receive the greater of a
34 10 monthly ordinary disability retirement allowance calculated
34 11 under this subsection or a monthly retirement allowance as
34 12 provided in section 97B.49A, 97B.49B, 97B.49C, 97B.49D, or
34 13 97B.49G, or 97B.49J, as applicable. The monthly ordinary
34 14 disability allowance calculated under this subsection shall
34 15 consist of an allowance equal to one=twelfth of fifty percent
34 16 of the member's three=year average covered wage or its
34 17 actuarial equivalent as provided under section 97B.51.
34 18 Sec. 52. Section 97B.50A, subsection 6, paragraph b, Code
34 19 2007, is amended to read as follows:
34 20 b. If a member is determined under paragraph "a" to be no
34 21 longer eligible for in=service or ordinary disability
34 22 benefits, all benefits paid under this section shall cease.
34 23 The member shall be eligible to receive benefits calculated
34 24 under section 97B.49B, or 97B.49C, or 97B.49J, as applicable,
34 25 when the member reaches age fifty=five.
34 26 Sec. 53. Section 97B.50A, subsection 7, paragraph a, Code
34 27 2007, is amended to read as follows:
34 28 a. If a member receiving a disability retirement allowance
34 29 is returned to covered employment, the member's disability
34 30 retirement allowance shall cease, the member shall again
34 31 become an active member, and shall contribute thereafter at
34 32 the same rate payable by similarly classified members. If a
34 33 member receiving a disability retirement allowance returns to
34 34 special service employment, then the period of time the member
34 35 received a disability retirement allowance shall constitute
35 1 eligible service as defined in section 97B.49B, subsection 1,
35 2 or section 97B.49C, subsection 1, or section 97B.49J,
35 3 subsection 1, as applicable. Upon subsequent retirement, the
35 4 member's retirement allowance shall be calculated as provided
35 5 in section 97B.48A.
35 6 Sec. 54. Section 97B.50A, subsection 7, paragraph b,
35 7 subparagraph (4), Code 2007, is amended to read as follows:
35 8 (4) This paragraph does not apply to a member who is at
35 9 least fifty=five years of age and would have completed a
35 10 sufficient number of years of service if the member had
35 11 remained in active special service employment. For purposes
35 12 of this subparagraph, a sufficient number of years of service
35 13 shall be the applicable years of service for a special service
35 14 member as described in section 97B.49B or twenty=two for a
35 15 special service member as described in section 97B.49C or
35 16 97B.49J.
35 17 Sec. 55. Section 97B.50A, subsection 12, Code 2007, is
35 18 amended to read as follows:
35 19 12. CONTRIBUTIONS. The expenses incurred in the
35 20 administration of this section by the system shall be paid
35 21 through contributions as determined pursuant to for members in
35 22 a protection occupation under section 97B.49B, subsection 3,
35 23 or for members as a county sheriff or deputy sheriff under
35 24 section 97B.49C, subsection 3, and for members as a county
35 25 attorney or assistant county attorney under section 97B.49J,
35 26 as applicable.
35 27 Sec. 56. Section 97B.50A, subsection 13, paragraph a, Code
35 28 2007, is amended to read as follows:
35 29 a. (1) This section applies to a member in a protection
35 30 occupation as provided in section 97B.49B, or as a county
35 31 sheriff or deputy sheriff as provided in section 97B.49C, who
35 32 becomes disabled on or after July 1, 2000, and also applies to
35 33 a member in a protection occupation as provided in section
35 34 97B.49B, or as a county sheriff or deputy sheriff as provided
35 35 in section 97B.49C, who becomes disabled prior to July 1,
36 1 2000, if the member has not terminated special service
36 2 employment as of June 30, 2000.
36 3 (2) This section applies to a member as a county attorney
36 4 or assistant county attorney as provided in section 97B.49J,
36 5 who becomes disabled on or after July 1, 2008, and also
36 6 applies to a member as a county attorney or assistant county
36 7 attorney as provided in section 97B.49J, who becomes disabled
36 8 prior to July 1, 2008, if the member has not terminated
36 9 employment as a county attorney or assistant county attorney
36 10 as of June 30, 2008.
36 11 Sec. 57. Section 97B.51, subsection 1, paragraphs b and f,
36 12 Code 2007, are amended to read as follows:
36 13 b. A member may elect a retirement allowance otherwise
36 14 payable to the member upon retirement under the retirement
36 15 system pursuant to this chapter, to include the applicable
36 16 provisions of sections 97B.49A through 97B.49G 97B.49J, and a
36 17 death benefit as provided in section 97B.52, subsection 3.
36 18 f. A member retiring under section 97B.49B, or 97B.49C, or
36 19 97B.49J, may select an allowance upon retirement as provided
36 20 under paragraph "a", "b", "c", or "e", or paragraph "d",
36 21 subparagraph (1), and may elect to have the monthly allowance
36 22 otherwise payable to the member pursuant to the selected
36 23 paragraph or subparagraph recalculated as provided in this
36 24 paragraph. A member electing payment of a monthly allowance
36 25 under this paragraph shall have the member's monthly allowance
36 26 increased, as determined by the system's actuary, by an amount
36 27 equal to the monthly federal social security benefit that
36 28 would be payable to the member on the date the member would be
36 29 first eligible to receive a reduced social security pension
36 30 benefit based upon the member's account. Upon reaching the
36 31 date the member would be first eligible to receive a reduced
36 32 social security pension benefit, the member's monthly
36 33 retirement allowance shall be permanently reduced, as
36 34 determined by the system's actuary. A member electing payment
36 35 of an allowance under this paragraph shall provide the system
37 1 with a copy of the estimate provided by the federal social
37 2 security administration of the member's monthly federal social
37 3 security benefit that would be payable on the date the member
37 4 would be first eligible to receive a reduced social security
37 5 pension benefit at least sixty days prior to the member's
37 6 first month of entitlement.
37 7 Sec. 58. Section 97B.52, subsection 1, paragraph a,
37 8 unnumbered paragraphs 1 and 3, Code 2007, are amended to read
37 9 as follows:
37 10 A lump sum payment equal to the accumulated contributions
37 11 of the member at the date of death plus the product of an
37 12 amount equal to the highest year of covered wages of the
37 13 deceased member and the number of years of membership service
37 14 divided by the applicable denominator. However, a lump sum
37 15 payment made to a beneficiary under this paragraph due to the
37 16 death of a member shall not be less than the amount that would
37 17 have been payable on the death of the member on June 30, 1984,
37 18 under this paragraph as it appeared in the 1983 Code.
37 19 Effective July 1, 1978, a method of payment under this
37 20 paragraph filed with the system by a member does not apply.
37 21 Sec. 59. Section 97B.52, subsection 1, paragraph a,
37 22 subparagraph (3), Code 2007, is amended to read as follows:
37 23 (3) For service as a sheriff or deputy sheriff, as
37 24 provided in section 97B.49C, or as a county attorney or
37 25 assistant county attorney as provided in section 97B.49J, the
37 26 applicable denominator is twenty=two.
37 27 Sec. 60. Section 97B.52A, subsection 1, paragraph c, Code
37 28 2007, is amended to read as follows:
37 29 c. For a member whose first month of entitlement is July
37 30 2000 or later, the member does not return to any employment
37 31 with a covered employer until the member has qualified for at
37 32 least one calendar month of retirement benefits, and the
37 33 member does not return to covered employment until the member
37 34 has qualified for no fewer than four calendar months of
37 35 retirement benefits. For purposes of this paragraph,
38 1 effective July 1, 2000, any employment with a covered employer
38 2 does not include employment as an elective official or member
38 3 of the general assembly if the member is not covered under
38 4 this chapter for that employment. For purposes of determining
38 5 a bona fide retirement under this paragraph and for a member
38 6 whose first month of entitlement is July 2004 or later, but
38 7 before July 2010, covered employment does not include
38 8 employment as a licensed health care professional by a public
38 9 hospital as defined in section 249J.3, with the exception of
38 10 public hospitals governed pursuant to chapter 226. For
38 11 purposes of determining a bona fide retirement under this
38 12 paragraph and for a member whose first month of entitlement is
38 13 July 2008 or later, but before July 2010, covered employment
38 14 does not include employment by a public hospital as defined in
38 15 section 249J.3, with the exception of public hospitals
38 16 governed pursuant to chapter 226.
38 17 Sec. 61. Section 97B.53, subsections 1 and 2, Code 2007,
38 18 are amended to read as follows:
38 19 1. Upon the termination of employment with the employer
38 20 prior to retirement other than by death of a member, the
38 21 member's account, consisting of accumulated contributions by
38 22 the member and, for a member who is vested on the date an
38 23 application for a refund is filed, the member's share of the
38 24 accumulated employer contributions for the vested member at
38 25 the date of the termination, may be paid to the member upon
38 26 application, except as provided in subsections 2, 4, and 8.
38 27 For the purpose of this subsection, the "member's share of the
38 28 accumulated employer contributions" is an amount equal to the
38 29 accumulated employer contributions of the member multiplied by
38 30 a fraction of years of service for that member as defined in
38 31 section 97B.49A, 97B.49B, or 97B.49C, or 97B.49J.
38 32 2. If a vested member's employment is terminated prior to
38 33 the member's retirement, other than by death, the member may
38 34 receive a monthly retirement allowance commencing on the first
38 35 day of the month in which the member attains the age of
39 1 sixty=five years, if the member is then alive, or, if the
39 2 member so elects in accordance with section 97B.47, commencing
39 3 on the first day of the month in which the member attains the
39 4 age of fifty=five or any month thereafter prior to the date
39 5 the member attains the age of sixty=five years, and continuing
39 6 on the first day of each month thereafter during the member's
39 7 lifetime, provided the member does not receive prior to the
39 8 date the member's retirement allowance is to commence a refund
39 9 of moneys in the member's account as provided under any of the
39 10 provisions of this chapter. The amount of each such monthly
39 11 retirement allowance shall be determined as provided in either
39 12 sections 97B.49A through 97B.49G 97B.49J, or in section
39 13 97B.50, whichever is applicable.
39 14 Sec. 62. Section 97B.53B, Code 2007, is amended to read as
39 15 follows:
39 16 97B.53B ROLLOVERS OF MEMBERS' ACCOUNTS.
39 17 1. As used in this section, unless the context otherwise
39 18 requires, and to the extent permitted by the internal revenue
39 19 service:
39 20 a. "Direct rollover" means a payment by the system to the
39 21 eligible retirement plan specified by the member or the
39 22 member's surviving spouse an eligible person.
39 23 b. "Eligible person" means any of the following:
39 24 (1) The member.
39 25 (2) The member's surviving spouse.
39 26 (3) The member's spouse or former spouse as an alternate
39 27 payee under a qualified domestic relations order.
39 28 (4) Effective January 1, 2007, the member's nonspouse
39 29 beneficiaries who are designated beneficiaries as defined by
39 30 section 401(a)(9)(E) of the federal Internal Revenue Code, as
39 31 authorized under section 829 of the federal Pension Protection
39 32 Act of 2006.
39 33 c. "Eligible retirement plan" means either, for an
39 34 eligible person, any of the following retirement plans that
39 35 accepts can accept an eligible rollover distribution from a
40 1 member or a member's surviving spouse that eligible person:
40 2 (1) An individual retirement account in accordance with
40 3 section 408(a) of the federal Internal Revenue Code.
40 4 (2) An individual retirement annuity in accordance with
40 5 section 408(b) of the federal Internal Revenue Code.
40 6 (3) In addition, an "eligible retirement plan" includes an
40 7 An annuity plan in accordance with section 403(a) of the
40 8 federal Internal Revenue Code, or a qualified trust in
40 9 accordance with section 401(a) of the federal Internal Revenue
40 10 Code, that accepts an eligible rollover distribution from a
40 11 member.
40 12 (4) Effective January 1, 2002, the term "eligible
40 13 retirement plan" also includes an annuity contract described
40 14 in section 403(b) of the federal Internal Revenue Code, and an
40 15 eligible plan under section 457(b) of the federal Internal
40 16 Revenue Code which is maintained by a state, political
40 17 subdivision of a state, or any agency or instrumentality of a
40 18 state or political subdivision of a state that chooses to
40 19 separately account for amounts transferred into such eligible
40 20 retirement plan from the system.
40 21 (5) Effective January 1, 2008, a Roth individual
40 22 retirement account or a Roth individual retirement annuity
40 23 established under section 408A of the Internal Revenue Code.
40 24 c. d. (1) "Eligible rollover distribution" includes any
40 25 of the following:
40 26 (a) All or any portion of a member's account and
40 27 supplemental account.
40 28 (b) Effective January 1, 2002, after=tax employee
40 29 contributions, if the plan to which such amounts are to be
40 30 transferred is an individual retirement account described in
40 31 federal Internal Revenue Code section 408(a) or 408(b), or is
40 32 a qualified defined contribution plan described in federal
40 33 Internal Revenue Code section 401(a) or 403(a), and such plan
40 34 agrees to separately account for the after=tax amount so
40 35 transferred.
41 1 (c) A distribution made on behalf of a surviving spouse
41 2 and to an alternate payee, who is a spouse or former spouse,
41 3 under a qualified domestic relations order. Effective January
41 4 1, 2007, after=tax employee contributions to a qualified
41 5 defined benefit plan described in federal Internal Revenue
41 6 Code section 401(a) or 403(a), or a tax=sheltered annuity plan
41 7 described in federal Internal Revenue Code section 403(b), and
41 8 such plan agrees to separately account for the after=tax
41 9 amount so transferred.
41 10 (2) An eligible rollover distribution does not include any
41 11 of the following:
41 12 (a) A distribution that is one of a series of
41 13 substantially equal periodic payments, which occur annually or
41 14 more frequently, made for the life or life expectancy of the
41 15 distributee or the joint lives or joint life expectancies of
41 16 the distributee and the distributee's designated beneficiary,
41 17 or made for a specified period of ten years or more.
41 18 (b) A distribution to the extent that the distribution is
41 19 required pursuant to section 401(a)(9) of the federal Internal
41 20 Revenue Code.
41 21 (c) Prior to January 1, 2002, the portion of any
41 22 distribution that is not includible in the gross income of the
41 23 distributee, determined without regard to the exclusion for
41 24 net unrealized appreciation with respect to employer
41 25 securities.
41 26 2. Effective January 1, 1993, a member or a member's
41 27 surviving spouse An eligible person may elect, at the time and
41 28 in the manner prescribed in rules adopted by the system and in
41 29 rules of the receiving retirement plan, to have the system pay
41 30 all or a portion of an eligible rollover distribution directly
41 31 to an eligible retirement plan, specified by the member or the
41 32 member's surviving spouse, in a direct rollover. However,
41 33 effective January 1, 2007, if the eligible person is a
41 34 nonspouse beneficiary as described in subsection 1, paragraph
41 35 "b", subparagraph (4), the nonspouse beneficiary may only have
42 1 a direct rollover of the distribution to an individual
42 2 retirement account or annuity as described in subsection 1,
42 3 paragraph "c", subparagraphs (1) or (2), established for the
42 4 purpose of receiving the distribution on behalf of the
42 5 nonspouse beneficiary, and such individual retirement account
42 6 or annuity will be treated as an inherited individual
42 7 retirement account or annuity pursuant to section 829 of the
42 8 federal Pension Protection Act of 2006.
42 9 Sec. 63. Section 97B.65, Code 2007, is amended to read as
42 10 follows:
42 11 97B.65 REVISION RIGHTS RESERVED == LIMITATION ON INCREASE
42 12 OF BENEFITS == RATES OF CONTRIBUTION.
42 13 1. The right is reserved to the general assembly to alter,
42 14 amend, or repeal any provision of this chapter or any
42 15 application thereof to any person, provided, however, that to
42 16 the extent of the funds in the retirement system the amount of
42 17 benefits which at the time of any such alteration, amendment,
42 18 or repeal shall have accrued to any member of the retirement
42 19 system shall not be repudiated, provided further, however,
42 20 that the amount of benefits accrued on account of prior
42 21 service shall be adjusted to the extent of any unfunded
42 22 accrued liability then outstanding.
42 23 2. An increase in the benefits or retirement allowances
42 24 provided under this chapter shall not be enacted until after
42 25 the system's actuary determines that the system is fully
42 26 funded and will continue to be fully funded immediately
42 27 following enactment of the increase and the increase can be
42 28 absorbed within the contribution rates otherwise established
42 29 for the membership group authorized to receive the increase.
42 30 However, an increase in the benefits or retirement allowances
42 31 provided under this chapter may be enacted if the statutory
42 32 change providing for the increase is accompanied by a change
42 33 in the employer and employee contribution rates an adjustment
42 34 in the required contribution rate of the membership group
42 35 affected that is necessary to support such increase as
43 1 determined by the system's actuary.
43 2 Sec. 64. Section 97B.80, subsection 2, paragraph a, Code
43 3 2007, is amended to read as follows:
43 4 a. For a member making contributions for a purchase of
43 5 additional service prior to July 1, 1999, the contributions to
43 6 be paid, representing both employer and employee
43 7 contributions, shall be based upon the member's covered wages
43 8 for the most recent full calendar year in which the member had
43 9 reportable wages at the applicable rates in effect for that
43 10 year under sections 97B.11, 97B.49B, 97B.49C, and 97B.49G, and
43 11 97B.49J. If the member's most recent covered wages were
43 12 earned prior to the most recent calendar year, the member's
43 13 covered wages shall be adjusted by the system by an inflation
43 14 factor to reflect changes in the economy.
43 15 Sec. 65. Section 97B.80C, subsection 1, paragraph a, Code
43 16 2007, is amended to read as follows:
43 17 a. "Nonqualified service" means service that is not
43 18 qualified service and includes, but is not limited to, any of
43 19 the following:
43 20 (1) Full=time volunteer public service in the federal
43 21 peace corps program. Service that is not qualified service.
43 22 (2) Public employment comparable to employment covered
43 23 under this chapter in a qualified Canadian governmental entity
43 24 that is an elementary school, secondary school, college, or
43 25 university that is organized, administered, and primarily
43 26 supported by the provincial, territorial, or federal
43 27 governments of Canada, or any combination of the same. Any
43 28 period of time for which there was no performance of services.
43 29 (3) Service as described in subsection 1, paragraph "c",
43 30 subparagraph (2).
43 31 Sec. 66. Section 97B.80C, subsection 2, Code 2007, is
43 32 amended to read as follows:
43 33 2. a. A vested or retired member may make contributions
43 34 to the retirement system to purchase up to the maximum amount
43 35 of permissive service credit for qualified service as
44 1 determined by the system, pursuant to Internal Revenue Code
44 2 section 415(n), and the requirements of this section, and the
44 3 system's administrative rules.
44 4 b. A vested or retired member of the retirement system who
44 5 has five or more full calendar years of covered wages may make
44 6 contributions to the retirement system to purchase up to five
44 7 years a maximum of twenty quarters of permissive service
44 8 credit for nonqualified service as determined by the system,
44 9 pursuant to Internal Revenue Code section 415(n), and the
44 10 requirements of this section, and the system's administrative
44 11 rules. A vested or retired member must have at least twenty
44 12 quarters of covered wages in order to purchase permissive
44 13 service credit for nonqualified service.
44 14 c. A vested or retired member may convert regular member
44 15 service credit to special service credit by payment of the
44 16 amount actuarially determined as necessary to fund the
44 17 resulting increase in the member's accrued benefit. The
44 18 conversion shall be treated as a purchase of qualified service
44 19 credit subject to the requirements of paragraph "a" if the
44 20 service credit to be converted was or would have been for
44 21 qualified service. The conversion shall be treated as a
44 22 purchase of nonqualified service credit subject to the
44 23 requirements of paragraph "b" if the service credit to be
44 24 converted was purchased as nonqualified service credit.
44 25 Sec. 67. Section 97B.80C, subsection 3, Code 2007, is
44 26 amended by adding the following new paragraph:
44 27 NEW PARAGRAPH. cc. For a member making contributions for
44 28 a purchase of permissive service credit for qualified service
44 29 as described in subsection 1, paragraph "c", subparagraph (1),
44 30 subparagraph subdivision (h), in which the member received a
44 31 refund of the member's accumulated contributions prior to July
44 32 1, 1998, the member shall receive a credit against the
44 33 actuarial cost of the service purchase equal to the amount of
44 34 the member's employer's accumulated contributions which were
44 35 not paid to the member as a refund pursuant to section 97B.53
45 1 plus interest as calculated pursuant to section 97B.70.
45 2 Sec. 68. Section 97B.82, subsection 2, paragraph b,
45 3 subparagraph (2), subparagraph subdivision (c), Code 2007, is
45 4 amended to read as follows:
45 5 (c) The For rollover service purchases prior to January 1,
45 6 2007, the portion of any distribution that is not includible
45 7 in the gross income of the distributee, determined without
45 8 regard to the exclusion for net unrealized appreciation with
45 9 respect to employer securities.
45 10 For rollover service purchases on or after January 1, 2007,
45 11 the portion of any distribution that is not includible in the
45 12 gross income of the distributee, determined without regard to
45 13 the exclusion for net unrealized appreciation with respect to
45 14 employer securities, shall be treated as an eligible rollover
45 15 distribution only when such portion is received from a
45 16 qualified plan under section 401(a) or 403(a) of the federal
45 17 Internal Revenue Code.
45 18 Sec. 69. Section 97B.82, subsection 3, Code 2007, is
45 19 amended to read as follows:
45 20 3. A member may purchase any service credit as authorized
45 21 by this section, to the extent permitted by the internal
45 22 revenue service, by means of a direct transfer, excluding of
45 23 pretax amounts, and effective January 1, 2007, any after=tax
45 24 contributions, from an annuity contract qualified under
45 25 federal Internal Revenue Code section 403(b), or an eligible
45 26 plan described in federal Internal Revenue Code section
45 27 457(b), maintained by a state, political subdivision of a
45 28 state, or any agency or instrumentality of a state or
45 29 political subdivision of a state. A direct transfer is a
45 30 trustee=to=trustee transfer to the retirement system of
45 31 contributions made to annuity contracts qualified under
45 32 federal Internal Revenue Code section 403(b) and eligible
45 33 governmental plans qualified under federal Internal Revenue
45 34 Code section 457(b) for purposes of purchasing service credit
45 35 in the retirement system.
46 1 Sec. 70. 2004 Iowa Acts, chapter 1103, section 62, as
46 2 amended by 2006 Iowa Acts, chapter 1092, section 7, is amended
46 3 to read as follows:
46 4 SEC. 62. LICENSED HEALTH CARE PROFESSIONALS == PUBLIC
46 5 HOSPITAL EMPLOYEES == BONA FIDE RETIREMENT REPORT. The Iowa
46 6 public employees' retirement system and the Iowa hospital
46 7 association shall each submit a report to the general assembly
46 8 by October 1, 2009, concerning the costs and effectiveness of
46 9 the provision of this Act amending provisions of section
46 10 97B.52A that provides provide that covered employment, for
46 11 purposes of establishing a bona fide retirement, does not
46 12 include employment, including employment as a licensed health
46 13 care professional, by a public hospital as defined in section
46 14 249I.3 249J.3. Each report shall provide statistics
46 15 concerning the number of members taking advantage of this
46 16 provision, the costs and financial benefits, if any,
46 17 associated with this provision, and recommendations for
46 18 further action.
46 19 Sec. 71. Section 97B.73B, Code 2007, is repealed.
46 20 Sec. 72. TRANSITION PROVISION == REQUIRED CONTRIBUTION
46 21 RATE FOR FISCAL YEAR 2010=2011. For purposes of establishing
46 22 the required contribution rate for the fiscal year beginning
46 23 July 1, 2011, as provided in section 97B.11, as amended in
46 24 this Act, the required contribution rate for the fiscal year
46 25 beginning July 1, 2010, shall be, for members in regular
46 26 service, members described in section 97B.49B, members
46 27 described in section 97B.49C, and members described in
46 28 97B.49J, the total contribution percentage rate paid by
46 29 members and employers of that membership group for the fiscal
46 30 year beginning July 1, 2010.
46 31 Sec. 73. IMPLEMENTATION PROVISION. Notwithstanding any
46 32 provision of section 97B.65 to the contrary, the provisions of
46 33 this division of this Act shall be enacted and implemented by
46 34 the Iowa public employees' retirement system upon the
46 35 effective dates provided for the provisions of this division
47 1 of this Act.
47 2 Sec. 74. EFFECTIVE DATES == RETROACTIVE APPLICABILITY.
47 3 1. The sections of this Act amending section 97B.49B,
47 4 subsection 3, section 97B.49C, subsection 3, and section
47 5 97B.65 take effect July 1, 2011.
47 6 2. The section of this Act amending section 97B.53B, being
47 7 deemed of immediate importance, takes effect upon enactment,
47 8 and, except as otherwise stated, is retroactively applicable
47 9 to January 1, 2007, and is applicable on and after that date.
47 10 3. The sections of this Act amending section 97B.82, being
47 11 deemed of immediate importance, take effect upon enactment,
47 12 and are retroactively applicable to January 1, 2007, and are
47 13 applicable on and after that date.
47 14 DIVISION III
47 15 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
47 16 Sec. 75. Section 8.59, Code 2007, is amended to read as
47 17 follows:
47 18 8.59 APPROPRIATIONS FREEZE.
47 19 Notwithstanding contrary provisions of the Code, the
47 20 amounts appropriated under the applicable sections of the Code
47 21 for fiscal years commencing on or after July 1, 1993, are
47 22 limited to those amounts expended under those sections for the
47 23 fiscal year commencing July 1, 1992. If an applicable section
47 24 appropriates moneys to be distributed to different recipients
47 25 and the operation of this section reduces the total amount to
47 26 be distributed under the applicable section, the moneys shall
47 27 be prorated among the recipients. As used in this section,
47 28 "applicable sections" means sections 53.50, 229.35, 230.8,
47 29 230.11, 411.20, and 663.44.
47 30 Sec. 76. Section 411.5, subsections 10 and 11, Code 2007,
47 31 are amended to read as follows:
47 32 10. ACTUARIAL INVESTIGATION == TABLES == RATES. At least
47 33 once in each five=year period, the actuary shall make an
47 34 actuarial investigation into the mortality, service, and
47 35 compensation experience of the members and beneficiaries of
48 1 the retirement system, and the interest and other earnings on
48 2 the moneys and other assets of the retirement system, and
48 3 shall make a valuation of the assets and liabilities of the
48 4 fire and police retirement fund, and on the basis of the
48 5 results of the investigation and valuation, the system shall
48 6 do all of the following:
48 7 a. Adopt adopt for the retirement system such actuarial
48 8 methods and assumptions, interest rate, and mortality and
48 9 other tables as are deemed necessary to conduct the annual
48 10 actuarial valuation of the system.
48 11 b. Certify the rates of contribution payable by the cities
48 12 in accordance with section 411.8.
48 13 c. Certify the rates of contributions payable by the
48 14 members in accordance with section 411.8.
48 15 11. ANNUAL ACTUARIAL VALUATION.
48 16 a. On the basis of the actuarial methods and assumptions,
48 17 rate of interest and tables adopted, the actuary shall make an
48 18 annual valuation of the assets and liabilities of the fire and
48 19 police retirement fund created by this chapter. As a result
48 20 of the annual actuarial valuation, the system shall do all of
48 21 the following:
48 22 (1) Certify the rates of contribution payable by the
48 23 cities in accordance with section 411.8.
48 24 (2) Certify the rates of contributions payable by the
48 25 members in accordance with section 411.8.
48 26 b. Effective with the fiscal year beginning July 1, 2008,
48 27 the annual actuarial valuation required to be conducted shall
48 28 include information as required by section 97D.5.
48 29 Sec. 77. Section 411.8, subsection 1, paragraph b, Code
48 30 2007, is amended to read as follows:
48 31 b. On the basis of the actuarial methods and assumptions,
48 32 rate of interest, and of the mortality, interest and other
48 33 tables adopted by the system, the actuary engaged by the
48 34 system to make each valuation required by this chapter
48 35 pursuant to the requirements of section 411.5, shall
49 1 immediately after making such valuation, determine the "normal
49 2 contribution rate". Except as otherwise provided in this
49 3 lettered paragraph, the normal contribution rate shall be the
49 4 rate percent of the earnable compensation of all members
49 5 obtained by deducting from the total liabilities of the fund
49 6 the amount of the funds in hand to the credit of the fund and
49 7 dividing the remainder by one percent of the present value of
49 8 the prospective future compensation of all members as computed
49 9 on the basis of the rate of interest and of mortality and
49 10 service tables adopted, all equal to the rate required by the
49 11 system to discharge its liabilities, stated as a percentage of
49 12 the earnable compensation of all members, and reduced by the
49 13 employee contribution made pursuant to rate provided in
49 14 paragraph "f" of this subsection and the contribution rate
49 15 representing the state appropriation made as provided in
49 16 section 411.20. However, the normal rate of contribution
49 17 shall not be less than seventeen percent.
49 18 Beginning July 1, 1996, and each fiscal year thereafter,
49 19 the normal contribution rate shall be the rate percent of the
49 20 earnable compensation of all members obtained by deducting
49 21 from the total liabilities of the fund the amount of the funds
49 22 in hand to the credit of the fund and dividing the remainder
49 23 by one percent of the present value of the prospective future
49 24 compensation of all members as computed on the basis of the
49 25 rate of interest and of mortality and service tables adopted,
49 26 multiplied by six=tenths, or seventeen percent, whichever is
49 27 greater.
49 28 The normal rate of contribution shall be determined by the
49 29 actuary after each valuation.
49 30 Sec. 78. Section 411.15, Code 2007, is amended to read as
49 31 follows:
49 32 411.15 HOSPITALIZATION AND MEDICAL ATTENTION.
49 33 Cities shall provide hospital, nursing, and medical
49 34 attention for the members of the police and fire departments
49 35 of the cities, when injured while in the performance of their
50 1 duties as members of such department, and shall continue to
50 2 provide hospital, nursing, and medical attention for injuries
50 3 or diseases incurred while in the performance of their duties
50 4 for members receiving a retirement allowance under section
50 5 411.6, subsection 6. Members receiving hospital, nursing, and
50 6 medical attention pursuant to this section have the right to
50 7 choose the care. Cities may provide the hospital, nursing,
50 8 and medical attention required by this section through the
50 9 purchase of insurance, by self=insuring the obligation, or
50 10 through payment of moneys into a local government risk pool
50 11 established for the purpose of covering the costs associated
50 12 with the requirements of this section. The cost of providing
50 13 the hospital, nursing, and medical attention required by this
50 14 section shall be paid from moneys held in a trust and agency
50 15 fund established pursuant to section 384.6, or out of the
50 16 appropriation for the department to which the injured person
50 17 belongs or belonged; provided that any amounts received by the
50 18 injured person under the workers' compensation law of the
50 19 state, or from any other source for such specific purposes,
50 20 shall be deducted from the amount paid by the city under the
50 21 provisions of this section.
50 22 Sec. 79. Section 411.20, Code 2007, is amended to read as
50 23 follows:
50 24 411.20 STATE APPROPRIATION.
50 25 1. There is appropriated from the general fund of the
50 26 state for each fiscal year an amount necessary to be
50 27 distributed to the statewide fire and police retirement
50 28 system, or to the cities participating in the system, to
50 29 finance the cost of benefits provided in this chapter by
50 30 amendments of the Acts of the Sixty=sixth General Assembly,
50 31 chapter 1089. The method of distribution shall be determined
50 32 by the board of trustees based on information provided by the
50 33 actuary of the statewide retirement system equal to three and
50 34 seventy=nine hundredths of the earnable compensation of all
50 35 members for that fiscal year for deposit in the fire and
51 1 police retirement fund created in section 411.8.
51 2 2. Moneys appropriated by the state shall not be used to
51 3 reduce the normal rate of contribution of any city below
51 4 seventeen percent.
51 5 DIVISION IV
51 6 JUDICIAL RETIREMENT SYSTEM
51 7 Sec. 80. Section 602.9104, subsection 4, paragraph b, Code
51 8 2007, is amended by striking the paragraph.
51 9 Sec. 81. Section 602.9104, subsection 4, paragraphs c, d,
51 10 and e, Code 2007, are amended to read as follows:
51 11 c. "Judge's required contribution" means an amount equal
51 12 to the basic salary of the judge multiplied by the following
51 13 applicable percentage:
51 14 (1) For the fiscal year beginning July 1, 2006, and for
51 15 each subsequent fiscal year until the system attains fully
51 16 funded status through the fiscal year ending June 30, 2009,
51 17 six percent multiplied by a fraction equal to the actual
51 18 percentage rate contributed by the state for that fiscal year
51 19 divided by twenty=three and seven=tenths percent.
51 20 (2) Commencing with the first For each fiscal year in
51 21 which the system attains fully funded status, and for each
51 22 subsequent fiscal year beginning on or after July 1, 2009, the
51 23 percentage rate equal to fifty forty percent of the required
51 24 contribution rate.
51 25 d. "Required contribution rate" means that percentage of
51 26 the basic salary of all judges covered under this article
51 27 which the actuary of the system determines is necessary, using
51 28 the projected unit credit method in accordance with generally
51 29 recognized and accepted actuarial principles and practices set
51 30 forth by the American academy of actuaries, to amortize the
51 31 unfunded actuarial liability of the judicial retirement system
51 32 within twenty years equal to the actuarially required
51 33 contribution rate determined by the actuary pursuant to
51 34 section 602.9116.
51 35 e. "State's required contribution" means an amount equal
52 1 to the basic salary of all judges covered under this article
52 2 multiplied by the following applicable percentage:
52 3 (1) For the fiscal year beginning July 1, 2006, and for
52 4 each subsequent fiscal year until the system attains fully
52 5 funded status through the fiscal year ending June 30, 2009,
52 6 twenty=three and seven=tenths percent.
52 7 (2) Commencing with the first For each fiscal year in
52 8 which the system attains fully funded status, and for each
52 9 subsequent fiscal year beginning on or after July 1, 2009, the
52 10 percentage rate equal to fifty sixty percent of the required
52 11 contribution rate.
52 12 Sec. 82. Section 602.9116, subsection 1, Code Supplement
52 13 2007, is amended to read as follows:
52 14 1. The court administrator shall cause an actuarial
52 15 valuation to be made of the assets and liabilities of the
52 16 judicial retirement fund at least once every four years
52 17 commencing with the fiscal year beginning July 1, 1981. For
52 18 each fiscal year in which an actuarial valuation is not
52 19 conducted, the court administrator shall cause an annual
52 20 actuarial update to be prepared for the purpose of determining
52 21 the adequacy of the contribution rates specified in section
52 22 602.9104. The court administrator shall adopt actuarial
52 23 methods and assumptions, mortality tables, and other necessary
52 24 factors for use in the actuarial calculations required for the
52 25 valuation upon the recommendation of the actuary. In
52 26 addition, effective with the fiscal year beginning July 1,
52 27 2008, the actuarial valuation or actuarial update required to
52 28 be conducted shall include information as required by section
52 29 97D.5. Following the actuarial valuation or annual actuarial
52 30 update, the court administrator shall determine the condition
52 31 of the system, determine the actuarially required contribution
52 32 rate for each fiscal year which is the rate required by the
52 33 system to discharge its liabilities, stated as a percentage of
52 34 the basic salary of all judges covered under this article, and
52 35 shall report any findings and recommendations to the general
53 1 assembly.
53 2 DIVISION V
53 3 MISCELLANEOUS PROVISIONS
53 4 Sec. 83. Section 55.1, unnumbered paragraph 1, Code 2007,
53 5 is amended to read as follows:
53 6 A person who is elected to a municipal, county, state, or
53 7 federal office shall, upon written application to the employer
53 8 of that person, be granted a leave of absence from regular
53 9 employment to serve in that office except where prohibited by
53 10 the federal law. The leave of absence may be granted without
53 11 pay and, except that if a salaried employee takes leave
53 12 without pay from regular employment for a portion of a pay
53 13 period, the employee's salaried compensation for that pay
53 14 period shall be reduced by the ratio of the number of days of
53 15 leave taken to the total number of days in the pay period.
53 16 The leave of absence shall be granted without loss of net
53 17 credited service and benefits earned. This section shall not
53 18 be construed to require an employer to pay pension, health or
53 19 other benefits during the leave of absence to an employee
53 20 taking a leave of absence under this section.
53 21 Sec. 84. Section 55.1, unnumbered paragraph 3, Code 2007,
53 22 is amended to read as follows:
53 23 An employee shall not be prohibited from returning to
53 24 regular employment before the period expires for which the
53 25 leave of absence was granted. This section applies only to
53 26 employers which employ twenty or more full=time persons. The
53 27 leave of absence granted by this section need not exceed six
53 28 years. The leave of absence granted by this section does not
53 29 apply to an elective office held by the employee prior to the
53 30 election.
53 31 Sec. 85. Section 97D.2, Code 2007, is amended to read as
53 32 follows:
53 33 97D.2 ANALYSIS OF COST OF PROPOSED CHANGES.
53 34 When the public retirement systems committee established by
53 35 section 97D.4 or a standing committee of the senate or house
54 1 of representatives recommends a proposal for a change in a
54 2 public retirement system within this state, the committee
54 3 shall require the development of actuarial information
54 4 concerning the costs of the proposed change. If the proposal
54 5 affects police and fire retirement under chapter 411, the
54 6 committee shall arrange for the services of an actuarial
54 7 consultant or request actuarial information from the statewide
54 8 fire and police retirement system created in chapter 411 to
54 9 assist in developing the information. Actuarial information
54 10 developed as provided under this section concerning the cost
54 11 of a proposed change shall include information on the effect
54 12 of the proposed change on the normal cost rate for that public
54 13 retirement system using the entry age normal actuarial cost
54 14 method.
54 15 Sec. 86. NEW SECTION. 97D.5 PUBLIC RETIREMENT SYSTEMS ==
54 16 ANNUAL ACTUARIAL VALUATIONS == REQUIRED INFORMATION.
54 17 1. For purposes of this section, "public retirement
54 18 system" means the public safety peace officers' retirement
54 19 system created in chapter 97A, the Iowa public employees'
54 20 retirement system created in chapter 97B, the statewide fire
54 21 and police retirement system created in chapter 411, or the
54 22 judicial retirement system created in chapter 602.
54 23 2. Effective with the fiscal year beginning July 1, 2008,
54 24 a public retirement system shall include in each actuarial
54 25 valuation or actuarial update required to be conducted by that
54 26 public retirement system the following additional information,
54 27 all as determined by using the entry age normal actuarial cost
54 28 method:
54 29 a. The actuarially required contribution rate for the
54 30 public retirement system which is equal to the normal cost
54 31 rate plus the contribution rate necessary to amortize the
54 32 unfunded actuarial accrued liability on a level percent of
54 33 payroll basis over thirty years.
54 34 b. The normal cost rate for the public retirement system
54 35 which shall be determined for each individual member on a
55 1 level percentage of salary basis and then summed for all
55 2 members to obtain the total normal cost.
55 3 Sec. 87. Section 273.3, subsection 14, Code 2007, is
55 4 amended by striking the subsection and inserting in lieu
55 5 thereof the following:
55 6 14. a. The board may purchase for eligible employees one
55 7 or more annuity contracts, on a group or individual basis,
55 8 pursuant to a plan established by the board in accordance with
55 9 section 403(b) of the Internal Revenue Code, as defined in
55 10 section 422.3. An annuity contract purchased for the plan
55 11 shall be issued by a nonprofit corporation issuing retirement
55 12 annuities exclusively for educational institutions and their
55 13 employees or by a company authorized to do business in this
55 14 state or purchased through an Iowa=licensed salesperson for
55 15 the company.
55 16 b. The plan established by the board shall include no more
55 17 than five companies authorized to issue annuity contracts as
55 18 selected by the board and no more than three companies
55 19 authorized to issue annuity contracts as selected by, and in
55 20 the sole discretion of, the employee organization representing
55 21 the board's employees.
55 22 c. The board may make salary reductions in accordance with
55 23 the plan as authorized by an eligible employee for the purpose
55 24 of making contributions to the annuity contract on behalf of
55 25 the employee. The reductions shall be made in the manner
55 26 which will qualify contributions to the annuity contract for
55 27 the benefits under section 403(b) of the Internal Revenue
55 28 Code, as defined in section 422.3.
55 29 d. As used in this subsection, unless the context
55 30 otherwise requires, "annuity contract" shall mean an annuity
55 31 contract or a custodial account which meets the requirements
55 32 of section 403(b) of the Internal Revenue Code, as defined in
55 33 section 422.3.
55 34 Sec. 88. Section 294.16, Code 2007, is amended by striking
55 35 the section and inserting in lieu thereof the following:
56 1 294.16 ANNUITY CONTRACTS.
56 2 1. A school district may purchase for eligible employees
56 3 one or more annuity contracts, on a group or individual basis,
56 4 pursuant to a plan established by the school district in
56 5 accordance with section 403(b) of the Internal Revenue Code,
56 6 as defined in section 422.3. An annuity contract purchased
56 7 for the plan shall be issued by a company authorized to do
56 8 business in this state or purchased through an Iowa=licensed
56 9 salesperson for the company.
56 10 2. The plan established by the school district shall
56 11 include no more than five companies authorized to issue
56 12 annuity contracts as selected by the school district and no
56 13 more than three companies authorized to issue annuity
56 14 contracts as selected by, and in the sole discretion of, the
56 15 employee organization representing the school district's
56 16 certified teachers.
56 17 3. The school district may make salary reductions in
56 18 accordance with the plan as authorized by an eligible employee
56 19 for the purpose of making contributions to the annuity
56 20 contract on behalf of the employee. The reductions shall be
56 21 made in the manner which will qualify contributions to the
56 22 annuity contract for the benefits under section 403(b) of the
56 23 Internal Revenue Code, as defined in section 422.3.
56 24 4. As used in this section, unless the context otherwise
56 25 requires, "annuity contract" shall mean an annuity contract or
56 26 a custodial account which meets the requirements of section
56 27 403(b) of the Internal Revenue Code, as defined in section
56 28 422.3.
56 29 EXPLANATION
56 30 This bill makes numerous changes to public retirement
56 31 systems, including the public safety peace officers'
56 32 retirement, accident, and disability system, the Iowa public
56 33 employees' retirement system, and the statewide fire and
56 34 police retirement system, as well as other employee benefit
56 35 matters. The bill may include a state mandate as defined in
57 1 Code section 25B.3. The state mandate funding requirement in
57 2 Code section 25B.2, however, does not apply to public employee
57 3 retirement systems. The changes to each public retirement
57 4 system as well as other employee benefit=related matters are
57 5 as follows:
57 6 PEACE OFFICERS' RETIREMENT, ACCIDENT, AND DISABILITY SYSTEM
57 7 (PORS). The bill eliminates references in Code chapter 97A to
57 8 the pension accumulation fund, pension reserve fund, and the
57 9 expense fund as separate funds of PORS and provides that the
57 10 assets of PORS are in one retirement fund.
57 11 Code section 97A.4 is amended to provide that a member of
57 12 PORS can have service credited under PORS for service in a
57 13 city fire and police retirement system operating under Code
57 14 chapter 411 prior to those systems' consolidation on January
57 15 1, 1992, if the person was not eligible to transfer that
57 16 service from the Code chapter 411 system to PORS and the
57 17 member applies for service by June 30, 2009.
57 18 Code section 97A.5(8), concerning the medical board for the
57 19 system, is amended to provide that the board of trustees can
57 20 designate a single medical provider network as the medical
57 21 board of the system. The bill provides that disability
57 22 examinations shall be conducted by a physician from the
57 23 medical board specializing in occupational medicine and a
57 24 second physician selected by the occupational medicine
57 25 physician in an appropriate field of medicine. Current law
57 26 provides for a three=physician medical board.
57 27 Code section 97A.5(11) and (12), concerning the actuarial
57 28 investigation and valuation of the system, is amended to
57 29 provide that the board of trustees shall select the actuarial
57 30 cost method to be used in conducting the annual actuarial
57 31 valuation of the system. A corresponding change in Code
57 32 section 97A.8 is made to eliminate the requirement that the
57 33 aggregate cost method be used.
57 34 Code section 97A.6(7), concerning the reexamination of
57 35 beneficiaries retired due to disability, is amended to provide
58 1 that a member's disability retirement shall cease if the
58 2 disabled member is under age 55 and becomes employed in
58 3 another public safety occupation.
58 4 Code section 97A.6(11) is amended to provide that a member
58 5 receiving an accidental disability benefit under PORS shall
58 6 not have their pension offset by any workers' compensation
58 7 benefits payable to the member for a permanent partial
58 8 disability or permanent total disability. This provision
58 9 applies to any injury, disease, or exposure occurring or
58 10 aggravated on or after July 1, 2000, giving rise to a
58 11 disability benefit and workers' compensation benefits. This
58 12 provision takes effect upon enactment and is retroactively
58 13 applicable to July 1, 2000.
58 14 Code section 97A.8(1)(b), concerning the determination of
58 15 the contribution rate paid by the state to the PORS retirement
58 16 fund, is amended. The bill provides that the determination of
58 17 the "normal contribution rate" paid by the state shall be
58 18 based upon the actuarial valuation of the system using the
58 19 entry age normal actuarial cost method and eliminates the
58 20 requirement that the actuarial valuation use the aggregate
58 21 cost actuarial method in calculating this rate. The bill
58 22 further provides that notwithstanding this calculation, the
58 23 state's normal contribution rate shall increase from the
58 24 current minimum 17 percent rate by 2 percentage points per
58 25 fiscal year, beginning July 1, 2008, until reaching a maximum
58 26 of 27 percent in the fiscal year beginning July 1, 2012.
58 27 Beginning July 1, 2012, the state's contribution rate for a
58 28 fiscal year shall be the lesser of 27 percent or the normal
58 29 contribution rate calculated pursuant to the actuarial
58 30 valuation of the system.
58 31 The bill also appropriates $5 million per fiscal year for
58 32 12 fiscal years, beginning in fiscal year 2008=2009 and ending
58 33 in fiscal year 2019=2020, to the PORS retirement fund.
58 34 In addition to the $5 million annual appropriation for 12
58 35 years, the bill provides for an additional $50,000 annual
59 1 appropriation to the retirement fund of PORS for the fiscal
59 2 period beginning July 1, 2008, and ending June 30, 2028,
59 3 relative to the provision of the bill granting service credit
59 4 for certain former service under Code chapter 411. This
59 5 provision also provides that a member eligible for service
59 6 credit as provided by that provision in the bill, who
59 7 purchased such service pursuant to Code section 97A.10, shall,
59 8 by applying for service credit by October 1, 2008, be
59 9 reimbursed by the retirement system for the contributions made
59 10 by the member to purchase the service.
59 11 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS). Code
59 12 section 97B.1A(20), concerning the definition of service, is
59 13 amended to provide that service includes a period of military
59 14 service from which the IPERS member does not return to IPERS
59 15 covered service due to injury or disease resulting in death.
59 16 Currently, a member must return to covered employment from
59 17 military service in order to receive service credit for the
59 18 period of military service.
59 19 Code section 97B.1A(26), concerning the definition of
59 20 wages, is amended to exclude bonuses and allowances, except
59 21 allowances included as wages for members of the general
59 22 assembly, from the definition of wages.
59 23 Code section 97B.4(2), concerning the authority of the
59 24 system in administering IPERS, is amended to provide that
59 25 IPERS is not a participating agency for purposes of
59 26 information technology services under the department of
59 27 administrative services.
59 28 Code section 97B.7(3), concerning the payment of investment
59 29 management expenses from the retirement fund, is amended to
59 30 eliminate the cap on the amount authorized to be expended to
59 31 pay investment management expenses during a fiscal year. The
59 32 current cap is four=tenths of one percent of the market value
59 33 of the retirement fund.
59 34 Code section 97B.9 is amended to set the fee for late
59 35 contributions at the greater of $20 per occurrence or interest
60 1 at the combined interest and dividend rate required under Code
60 2 section 97B.70. Currently, an employer is charged the greater
60 3 of $10 per occurrence or interest at the combined interest and
60 4 dividend rate required under Code section 97B.70. The Code
60 5 section is also amended to make civil actions to collect
60 6 unpaid contributions from employers permissive.
60 7 Code section 97B.10, concerning the crediting of erroneous
60 8 contributions, is amended to eliminate a provision awarding
60 9 interest on a credit for contributions paid prior to an
60 10 individual's decision to elect out of IPERS coverage.
60 11 Code section 97B.11, concerning contributions to the system
60 12 by employers and employees, is amended. Beginning July 1,
60 13 2011, IPERS will determine a required contribution rate for
60 14 each membership group, including members in regular service,
60 15 which is the contribution rate the system actuarially
60 16 determines is the rate required by the system to discharge its
60 17 liabilities as to that membership group as a percentage of the
60 18 covered wages of members in that membership category.
60 19 However, the bill provides that the required contribution rate
60 20 for each membership group in a fiscal year shall not vary by
60 21 more than one=half percentage point from the required
60 22 contribution rate for the previous year. The bill then
60 23 provides that, for members in regular service under IPERS, the
60 24 employers shall pay 60 percent of the rate and members shall
60 25 pay 40 percent of the rate. While current law and new Code
60 26 section 97B.49J provide for an actuarial determination of the
60 27 rates for members in each of the special service categories,
60 28 the contribution rate for members in regular service is fixed.
60 29 As a result of this change, Code sections 97B.49B(3) and
60 30 97B.49C(3), and new Code section 97B.49J(3) are amended,
60 31 effective July 1, 2011, by repealing that portion of each Code
60 32 section that sets contribution rates for special service
60 33 members to reflect that the establishment of those rates is
60 34 done by the bill through amendment to Code section 97B.11 as
60 35 of July 1, 2011.
61 1 Code section 97B.14 is amended by eliminating an exception
61 2 that permitted small employers with total monthly
61 3 contributions of $100 or less to pay those contributions
61 4 quarterly rather than monthly. The bill requires all
61 5 employers to pay contributions monthly, regardless of the
61 6 amount of the contributions.
61 7 Code section 97B.33, concerning payments made to an
61 8 individual arising out of a decision by the system or a court,
61 9 is amended to provide that the system may make the payment
61 10 without certifying to the director of the department of
61 11 administrative services that the person is entitled to the
61 12 payment.
61 13 Code section 97B.34A, concerning payment to minors, is
61 14 amended to provide that if the sum to be paid is less than the
61 15 greater of $25,000 or the amount authorized in section 565B.7,
61 16 subsection 3 (currently $25,000), the funds may be paid to an
61 17 adult as custodian for the minor. Payments in excess of this
61 18 amount are to be paid to a court=established conservator.
61 19 Current law sets the maximum amount that can be paid to an
61 20 adult custodian at $10,000.
61 21 Code section 97B.38, concerning fees for services, is
61 22 amended to allow the system to charge fees to anyone for the
61 23 costs incurred by the system in performing its duties.
61 24 Currently, members, beneficiaries, and the general public, but
61 25 not employers, may be charged fees.
61 26 Code section 97B.49B(1), concerning protection occupations,
61 27 is amended to add county jailers and detention officers, Iowa
61 28 national guard installation security officers, emergency
61 29 medical services providers, and county attorney investigators,
61 30 as members in a protection occupation for purposes of IPERS
61 31 benefits.
61 32 Code section 97B.49F, concerning the determination of the
61 33 cost of living dividend, is amended. Current law provides
61 34 that the dividend increases by a percentage that is the lesser
61 35 of 3 percent, the percentage increase in the consumer price
62 1 index, and the percentage certified by the system's actuary
62 2 that the system can absorb. The bill amends the determination
62 3 of the percentage calculated by the system's actuary to
62 4 provide that the determination be made by comparing the
62 5 actuarial required contribution rate for the system and the
62 6 statutory contribution rate. If the actuarial required rate
62 7 exceeds that statutory rate, the bill provides that the
62 8 percentage certified by the actuary shall be zero.
62 9 Code section 97B.49H, concerning active member supplemental
62 10 accounts, is amended to provide that no payments to the
62 11 accounts be made unless the system remains fully funded
62 12 following the payment to the supplemental accounts. Current
62 13 law allows payment only if the payment can be absorbed without
62 14 significantly impacting the funded status of the system.
62 15 New Code section 97B.49J creates a special membership
62 16 classification for county attorneys and assistant county
62 17 attorneys. Current law provides that county attorneys and
62 18 assistant county attorneys are in regular service under IPERS.
62 19 The bill provides that this new membership classification is
62 20 considered special service. Current law provides that only
62 21 members in a protection occupation and sheriffs and deputy
62 22 sheriffs are considered in special service. The new Code
62 23 section provides that service as a county attorney or
62 24 assistant county attorney prior to July 1, 2008, shall be
62 25 counted as service under this new category. The new Code
62 26 section provides benefits to county attorneys and assistant
62 27 county attorneys in a manner that matches the benefits
62 28 provided to members in a protection occupation. As a result,
62 29 county attorneys and assistant county attorneys can retire at
62 30 age 55 regardless of years of service, so long as they are
62 31 vested, and can receive a pension equal to 60 percent of their
62 32 three=year average covered wage after 22 years of service
62 33 instead of after 30 years of service for members in regular
62 34 service under IPERS. In addition, for each year of service
62 35 from 22 to 30 years, the percentage multiplier is increased by
63 1 1.5 percent, resulting in a maximum percentage of 72 percent
63 2 after 30 years of service, compared to a maximum percentage of
63 3 65 percent after 35 years of service for members in regular
63 4 service. The bill also provides that the determination of the
63 5 necessary contribution rate for this category shall be made on
63 6 an actuarial basis and shall be paid 60 percent by employers
63 7 and 40 percent by employees. Other benefits in IPERS provided
63 8 only to members in special service are also made applicable to
63 9 this new category, including special disability retirement
63 10 provisions, retirement allowance options, and death benefits.
63 11 Code section 97B.50, concerning early retirement due to
63 12 disability, is amended to provide that a member who qualifies
63 13 for IPERS regular disability benefits by becoming eligible for
63 14 federal disability benefits must demonstrate their continued
63 15 qualification for federal disability benefits to receive IPERS
63 16 benefits. Current law does not require a determination that
63 17 the member remains eligible for federal disability benefits
63 18 once initial eligibility is established. The change does not
63 19 affect the ability of the member to qualify for retirement
63 20 benefits based on criteria other than disability.
63 21 Code section 97B.50A, concerning disability benefits for
63 22 members in special service, is amended to provide that this
63 23 benefit applies to the new special service membership group
63 24 created in this bill for county attorneys. The bill provides
63 25 that this disability benefit also applies to a county attorney
63 26 or assistant county attorney who becomes disabled prior to
63 27 July 1, 2008, if the member had not terminated employment as a
63 28 county attorney or assistant county attorney as of June 30,
63 29 2008.
63 30 Code section 97B.52, concerning payment of a lump sum death
63 31 benefit, is amended to eliminate a provision requiring a
63 32 determination of what the lump sum payment would have been if
63 33 the person had died on June 30, 1984, and a provision that the
63 34 method of payment to a beneficiary selected by a member does
63 35 not apply.
64 1 Code section 97B.52A(1), concerning bona fide retirement,
64 2 is amended to provide that, until July 2010, covered
64 3 employment does not include employment as a public hospital
64 4 employee. The change permits a public hospital employee, in
64 5 the same manner as licensed health care professionals employed
64 6 by a public hospital, to return to work in that position after
64 7 one month of retirement and not forfeit rights to a retirement
64 8 allowance. Current law providing for a study of providing
64 9 this benefit to licensed health care professionals is amended
64 10 to provide that the study also include the impact of this new
64 11 provision on public hospital employees.
64 12 Code section 97B.53B, concerning rollovers of members'
64 13 accounts from IPERS to another eligible retirement plan, is
64 14 amended to reflect Internal Revenue Code changes. The bill
64 15 provides that nonspouse beneficiaries of a member that are
64 16 designated as beneficiaries pursuant to federal law are
64 17 allowed to elect to have IPERS pay all or a portion of an
64 18 eligible distribution to certain eligible retirement plans.
64 19 The bill also provides that, beginning January 1, 2008, Roth
64 20 individual retirement accounts and annuities are eligible
64 21 retirement plans for a member, a member's surviving spouse, or
64 22 a qualified payee under a qualified domestic relations order.
64 23 The provision of the bill amending Code section 97B.53B takes
64 24 effect upon enactment and is retroactively applicable to
64 25 January 1, 2007.
64 26 Code section 97B.65, concerning limitation on increases in
64 27 benefits, is amended to provide that an increase in benefits
64 28 shall not be implemented unless the system is fully funded and
64 29 the increase in benefits can be absorbed into existing
64 30 contribution rates for the membership group affected. Current
64 31 law only requires that the system be fully funded prior to
64 32 implementing the increase in benefits. This change also
64 33 provides that the increase in benefits can be implemented even
64 34 if the system is not fully funded or existing contribution
64 35 rates are insufficient if the statutory change providing for
65 1 the increased benefit is accompanied by a change in the
65 2 required contribution rate necessary to support the increased
65 3 benefit. This provision takes effect July 1, 2011.
65 4 Code section 97B.73B, concerning the purchase of service
65 5 for patient advocates, is repealed by the bill.
65 6 Code section 97B.80C(1) and (2), concerning purchases of
65 7 permissive service credit, is amended. The bill provides that
65 8 any period of time when there was not performance of services
65 9 is considered nonqualified service eligible for a purchase of
65 10 service. The bill also provides that a member may convert
65 11 existing regular service credit to special service credit upon
65 12 paying the actuarial cost of that enhanced benefit. The bill
65 13 provides that if the existing service was nonqualified
65 14 service, then the purchase of special service credit for that
65 15 service shall be made pursuant to the requirements governing
65 16 the purchase of nonqualified service. Alternatively, if the
65 17 existing service was qualified service, then the purchase of
65 18 special service credit for that service shall be made pursuant
65 19 to the requirements governing the purchase of qualified
65 20 service.
65 21 Code section 97B.80C(3) is amended to provide that a member
65 22 buying back service under IPERS can receive a credit for the
65 23 cost of purchasing that prior service equal to the amount of
65 24 the member's employer's accumulated contributions that were
65 25 not paid when the member received a refund for that service
65 26 plus interest as calculated in Code section 97B.70 if the
65 27 member received the refund prior to July 1, 1998.
65 28 Code section 97B.82, concerning the purchase of service
65 29 credit from a direct rollover of moneys from another
65 30 retirement plan to IPERS, is amended to reflect Internal
65 31 Revenue Code changes. The provisions of the bill amending
65 32 Code section 97B.82 take effect upon enactment and are
65 33 retroactively applicable to January 1, 2007.
65 34 The bill also provides that notwithstanding any provision
65 35 of Code section 97B.65 to the contrary, the provisions in this
66 1 division of the bill shall be implemented upon the effective
66 2 dates applicable for those provisions.
66 3 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM. Code sections
66 4 411.5 and 411.8, concerning the actuarial valuation and the
66 5 method of financing the retirement system, are amended to
66 6 provide that the board of trustees shall select the actuarial
66 7 cost method to be used in the annual actuarial valuation of
66 8 the system and in calculating the cities' contribution rate to
66 9 the system. Current law provides that the system use the
66 10 aggregate cost actuarial method.
66 11 Code section 411.15 is amended provide that members of the
66 12 retirement system who are injured while in the performance of
66 13 their duties and need medical attention have the right to
66 14 choose the care provided.
66 15 Code section 411.20 is amended to provide that the state's
66 16 contribution to the retirement fund of the system shall be
66 17 3.79 percent of the earnable compensation of members of the
66 18 system. Current law provides that the state's contribution
66 19 shall be an amount necessary to fund the cost of benefits
66 20 provided by Acts of the 66th general assembly. The bill also
66 21 strikes the provision in Code section 8.59 that limits the
66 22 amount contributed by the state to the retirement system to
66 23 the amount contributed for the fiscal year beginning July 1,
66 24 1992.
66 25 JUDICIAL RETIREMENT SYSTEM. Code section 602.9104,
66 26 concerning contributions to the judicial retirement system, is
66 27 amended to provide that, beginning July 1, 2009, the required
66 28 contribution rate to the system shall be paid 60 percent by
66 29 the state and 40 percent by the judges. Current law provides
66 30 that judges pay 6 percent and the state shall pay 23.7 percent
66 31 until the system reaches fully funded status. Current law
66 32 adjusts the judges contribution based on the actual percentage
66 33 paid by the state. Current law then provides that upon
66 34 reaching fully funded status, the state and the judges shall
66 35 pay the necessary contribution rate to the system on a 50=50
67 1 basis.
67 2 Code section 602.9106, concerning the actuarial valuation
67 3 of the system, is amended to provide that the court
67 4 administrator determine the actuarial assumptions and methods
67 5 to be used by the actuary. A corresponding change is made in
67 6 Code section 602.9104 to eliminate the requirement that the
67 7 projected unit actuarial cost method be used. The bill also
67 8 provides that the annual valuation include the actuarially
67 9 required contribution rate for the system.
67 10 MISCELLANEOUS PROVISIONS. Code section 55.1, concerning
67 11 leaves of absence for service in elective office, is amended
67 12 by the bill. Current law provides that a leave of absence
67 13 granted to a person elected to a municipal, county, state, or
67 14 federal office need not exceed six years. This provision of
67 15 the bill removes the six=year limitation. In addition, the
67 16 bill provides that if a salaried employee takes leave without
67 17 pay to serve in elected office the salaried compensation for
67 18 the pay period shall be reduced pro rata to the number of days
67 19 taken.
67 20 Code section 97D.2, concerning the analysis of proposed
67 21 changes to retirement systems, is amended to require that
67 22 actuarial information on the cost of a proposed change include
67 23 information on the effect of the proposed change on the normal
67 24 cost rate for the system using the entry age normal actuarial
67 25 cost method.
67 26 New Code section 97D.5 requires that PORS, IPERS, the
67 27 statewide fire and police retirement system created in Code
67 28 chapter 411, and the judicial retirement system created in
67 29 Code chapter 602, include additional actuarial information in
67 30 each system's actuarial valuation or update beginning with the
67 31 2008=2009 fiscal year. The new Code section requires each
67 32 public retirement system to determine, using the entry age
67 33 normal actuarial cost method, the actuarially required
67 34 contribution rate and normal cost rate for the public
67 35 retirement system and to include this information in the
68 1 system's actuarial valuation.
68 2 Code section 273.3(14) and Code section 294.16, concerning
68 3 annuity contracts for area education agency (AEA) and school
68 4 district employees, are stricken and rewritten by the bill.
68 5 These provisions of the bill provide that an AEA board or
68 6 school district may establish a plan in accordance with
68 7 section 403(b) of the Internal Revenue Code allowing eligible
68 8 employees to select one or more annuity contracts. The bill
68 9 provides that in establishing the plan, the AEA board or
68 10 school district may select up to five companies authorized to
68 11 issue annuity contracts and the employee organization
68 12 representing the board's employees or school district's
68 13 teachers may select up to three companies authorized to issue
68 14 annuity contracts. Current law provides that selection of an
68 15 annuity contract is at the discretion of the employee.
68 16 LSB 5594SC 82
68 17 ec/sc/5.1