S.F. 45 Section 1. Section 97A.3, subsection 1, Code 2017, is 1 amended to read as follows: 2 1. All peace officer members of the division of state 3 patrol and the division of criminal investigation or the 4 predecessor divisions or subunits in the department of public 5 safety, excepting the members of the clerical force, who 6 are employed by the state of Iowa on July 4, 1949, and all 7 persons thereafter employed as members of such divisions or the 8 predecessor divisions or subunits in the department of public 9 safety or division of narcotics enforcement or division of 10 state fire marshal or the predecessor divisions or subunits, 11 except the members of the clerical force, shall be members of 12 this system, except as otherwise provided in this subsection 13 or subsection 3 . Effective July 1, 1994, gaming enforcement 14 officers employed by the division of criminal investigation 15 for excursion boat and gambling structure gambling enforcement 16 activities and fire prevention inspector peace officers 17 employed by the department of public safety shall be members of 18 this system, except as otherwise provided in this subsection 19 or subsection 3 or section 97B.42B . Such members shall not 20 be required to make contributions under any other pension 21 or retirement system of the state of Iowa, anything to the 22 contrary notwithstanding. However, peace officer members of 23 the division of state patrol and the division of criminal 24 investigation or the predecessor divisions or subunits 25 in the department of public safety, persons employed as 26 members of such divisions or the predecessor divisions or 27 subunits in the department of public safety or division of 28 narcotics enforcement or division of state fire marshal or the 29 predecessor divisions or subunits, gaming enforcement officers, 30 and fire prevention inspector peace officers newly hired on or 31 after July 1, 2019, shall not be eligible to participate in the 32 retirement system under this chapter. 33 Sec. 2. Section 97B.1A, subsection 8, paragraph b, Code 34 2017, is amended by adding the following new subparagraph: 35 -1- LSB 1574XS (3) 87 ec/sc 1/ 5

S.F. 45 NEW SUBPARAGRAPH . (10) Employees who are employed as 1 defined in this chapter for whom coverage under this chapter 2 would otherwise be mandatory or optional but who are newly 3 hired on or after July 1, 2019. 4 Sec. 3. Section 411.2, subsection 1, Code 2017, is amended 5 to read as follows: 6 1. Except as provided in subsections 2 through 5 6 , 7 each city in which the fire fighters or police officers are 8 appointed under the civil service law of this state, shall 9 participate in the retirement system established by this 10 chapter for the purpose of providing retirement allowances only 11 for fire fighters or police officers, or both, of the cities 12 who are so appointed after the date the city comes under the 13 retirement system, or benefits to their dependents. 14 Sec. 4. Section 411.2, Code 2017, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 6. A police officer or fire fighter hired 17 on or after July 1, 2019, by a city with a population of more 18 than eight thousand prior to the results of the federal census 19 conducted in 1990 shall not be eligible to participate in the 20 retirement system under this chapter. 21 Sec. 5. Section 602.1611, subsection 1, unnumbered 22 paragraph 1, Code 2017, is amended to read as follows: 23 Judges of the supreme court and court of appeals, district 24 judges, and district associate judges are members of the 25 judicial retirement system established in article 9 , part 1, 26 and are not members of the public employees’ retirement system 27 established in chapter 97B , except as provided in paragraphs 28 “a” , and “b” , and “c” . 29 Sec. 6. Section 602.1611, subsection 1, Code 2017, is 30 amended by adding the following new paragraph: 31 NEW PARAGRAPH . c. Judges of the supreme court and court 32 of appeals, district judges, and district associate judges 33 appointed on or after July 1, 2019, shall not become members 34 of the judicial retirement system established in article 9, 35 -2- LSB 1574XS (3) 87 ec/sc 2/ 5

S.F. 45 part 1, but shall instead become eligible to participate in 1 an alternative defined contribution retirement system as 2 established by the state court administrator. 3 Sec. 7. ALTERNATIVE DEFINED CONTRIBUTION PEACE OFFICERS’ 4 RETIREMENT SYSTEM STUDY —— REPORT. 5 1. The board of trustees of the Iowa department of public 6 safety peace officers’ retirement, accident, and disability 7 system established by chapter 97A shall conduct a study for the 8 development of an alternative defined contribution retirement 9 system for peace officers hired on or after July 1, 2019, who 10 are ineligible to participate in the Iowa department of public 11 safety peace officers’ retirement, accident, and disability 12 system established in chapter 97A, as provided in this Act. 13 The board shall conduct a study and submit a report, including 14 its findings and recommendations, to the public retirement 15 systems committee established in section 97D.4, by October 1, 16 2018. 17 2. The goal of the study shall be the selection of an 18 alternative defined contribution retirement plan that provides 19 adequate retirement benefits while reducing and stabilizing the 20 cost to taxpayers of providing retirement benefits. 21 3. In making its recommendation, the board shall consider 22 methods of providing medical, disability, and line of duty 23 death benefits to affected peace officers. The board shall 24 also consider whether the affected peace officers can be 25 enrolled in the federal social security system. 26 Sec. 8. ALTERNATIVE DEFINED CONTRIBUTION IOWA PUBLIC 27 EMPLOYEES’ RETIREMENT SYSTEM STUDY —— REPORT. 28 1. The Iowa public employees’ retirement system shall 29 conduct a study for the development of an alternative defined 30 contribution retirement system for employees who would 31 otherwise be members of the system but who are hired on or 32 after July 1, 2019, and are ineligible to participate in 33 the Iowa public employees’ retirement system established 34 in chapter 97B, as provided in this Act. The system shall 35 -3- LSB 1574XS (3) 87 ec/sc 3/ 5

S.F. 45 conduct a study and submit a report, including its findings and 1 recommendations, to the public retirement systems committee 2 established in section 97D.4, by October 1, 2018. 3 2. The goal of the study shall be the selection of an 4 alternative defined contribution retirement plan that provides 5 adequate retirement benefits while reducing and stabilizing the 6 cost to taxpayers of providing retirement benefits. 7 3. In making its recommendation, the system shall consider 8 methods of providing medical, disability, and line of duty 9 death benefits to employees who would otherwise be members 10 in special service under the system but are ineligible, as 11 provided in this Act. 12 Sec. 9. ALTERNATIVE FIRE AND POLICE RETIREMENT SYSTEM STUDY 13 —— REPORT. 14 1. The board of trustees of the statewide fire and police 15 retirement system established by chapter 411 shall conduct a 16 study for the development of an alternative fire and police 17 retirement system for police officers and fire fighters hired 18 on or after July 1, 2019, who are ineligible to participate in 19 the statewide fire and police retirement system, as provided in 20 this Act. The board shall conduct a study and submit a report, 21 including its findings and recommendations, to the public 22 retirement systems committee established in section 97D.4, by 23 October 1, 2018. 24 2. The goal of the study shall be the selection of an 25 alternative defined contribution retirement plan that provides 26 adequate retirement benefits while reducing and stabilizing the 27 cost to taxpayers of providing retirement benefits. 28 3. In making its recommendation, the board shall consider 29 methods of providing medical, disability, and line of duty 30 death benefits to affected police officers and fire fighters. 31 The board shall also consider whether the affected peace 32 officers and fire fighters can be enrolled in the federal 33 social security system. 34 Sec. 10. ALTERNATIVE DEFINED CONTRIBUTION JUDICIAL 35 -4- LSB 1574XS (3) 87 ec/sc 4/ 5

S.F. 45 RETIREMENT SYSTEM STUDY —— REPORT. 1 1. The state court administrator shall conduct a study 2 for the development of an alternative defined contribution 3 judicial retirement system for judges appointed on or after 4 July 1, 2019, who are ineligible to participate in the judicial 5 retirement system, as provided in this Act. The state court 6 administrator shall conduct a study and submit a report, 7 including its findings and recommendations, to the public 8 retirement systems committee established in section 97D.4, by 9 October 1, 2018. 10 2. The goal of the study shall be the selection of an 11 alternative defined contribution retirement plan that provides 12 adequate retirement benefits to judges while reducing and 13 stabilizing the cost to taxpayers of providing retirement 14 benefits. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill provides that employees newly hired on or after 19 July 1, 2019, who would otherwise be members of the public 20 safety peace officers’ retirement, accident, and disability 21 system established by Code chapter 97A, the Iowa public 22 employees’ retirement system established by Code chapter 97B, 23 the statewide fire and police retirement system established by 24 Code chapter 411, or the judicial retirement system established 25 by Code chapter 602 shall not become members of the applicable 26 retirement system. Instead, the bill directs each retirement 27 system to develop an alternative defined contribution plan for 28 these employees newly hired on or after July 1, 2019. The bill 29 provides that each retirement system shall submit the plan to 30 create an alternative defined contribution plan to the public 31 retirement systems committee established in Code section 97D.4 32 by October 1, 2018. 33 -5- LSB 1574XS (3) 87 ec/sc 5/ 5