Text: HSB00682 Text: HSB00684 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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.5, subsection 9, Code 1995, is 1 5 amended to read as follows: 1 6 9. DUTIES OFCOMMISSIONER OF INSURANCEACTUARY. Thestate1 7commissioner of insuranceactuary hired by the board of 1 8 trustees shall be the technical advisor of the board of 1 9 trustees on matters regarding the operation of the funds 1 10 created by the provisions of this chapter and shall perform 1 11 such other duties as are required in connection therewith. 1 12 Sec. 2. Section 97A.5, subsections 10 through 12, Code 1 13 1995, are amended to read as follows: 1 14 10. TABLES – RATES.Immediately after the establishment1 15of this system, the state commissioner of insuranceThe 1 16 actuary hired by the board of trustees shall make such 1 17 investigation of anticipated interest earnings and of the 1 18 mortality, service, and compensation experience of the members 1 19 of the system as the actuaryshall recommend and the board of1 20trustees shall authorizerecommends, and on the basis ofsuch1 21 the investigation, theactuary shall recommend for adoption by1 22theboard of trusteessuchshall adopt the tables andsuchthe 1 23 rates as are required in subsection 11 of this section. The 1 24 board of trustees shall adopt the rate of interest and tables, 1 25 and certify rates of contributions to be used by the system. 1 26 11. ACTUARIAL INVESTIGATION.In the year 1952, and atAt 1 27 least once in each two-year periodthereafter,the state1 28commissioner of insurancethe actuary hired by the board of 1 29 trustees shall make an actuarial investigation in the 1 30 mortality, service, and compensation experience of the members 1 31 and beneficiaries of the system, and the interest and other 1 32 earnings on the moneys and other assets of the system, and 1 33 shall make a valuation of the assets and liabilities of the 1 34 funds of the system, and taking into account the results of 1 35suchthe investigation and valuation, the board of trustees 2 1 shall: 2 2 a. Adopt for the system such interest rate, mortality and 2 3 other tables as shall be deemed necessary; 2 4 b. Certify the rates of contribution payable by the state 2 5 of Iowa in accordance with section 97A.8. 2 6 12. VALUATION. On the basis ofsuchthe rate of interest 2 7 andsuchtablesasadopted by the board of trusteesshall2 8adopt,the state commissioner of insurancethe actuary hired 2 9 by the board of trustees shall make an annual valuation of the 2 10 assets and liabilities of the funds of the system created by 2 11 this chapter. 2 12 Sec. 3. Section 97A.5, Code 1995, is amended by adding the 2 13 following new subsections: 2 14 NEW SUBSECTION. 14. INVESTMENT CONTRACTS. The board of 2 15 trustees may execute contracts and agreements with investment 2 16 advisors, consultants, and investment management and benefit 2 17 consultant firms in the administration of the funds 2 18 established in section 97A.8. 2 19 NEW SUBSECTION. 15. LIABILITY. The department, the board 2 20 of trustees, and the treasurer of state are not personally 2 21 liable for claims based upon an act or omission of the person 2 22 performed in the discharge of the person's duties under this 2 23 chapter, even if those actions or omissions violate the 2 24 standards established in section 97A.7, except for acts or 2 25 omissions which involve malicious or wanton misconduct. 2 26 Sec. 4. Section 97A.6, subsection 1, paragraph a, Code 2 27 1995, is amended to read as follows: 2 28 a. Any member in service may retire upon the member's 2 29 written application to the board of trustees, setting forth at 2 30 what time, not less than thirty nor more than ninety days 2 31 subsequent to the execution and filing therefor, the member 2 32 desires to be retired, provided, that the said member at the 2 33 time so specified for retirement shall have attained the age 2 34 of fifty-five and shall have completed twenty-two years or 2 35 more of creditable service, and notwithstanding that, during 3 1 such period of notification, the member may have separated 3 2 from the service. However, a member may retire at fifty years 3 3 of age and receive a reduced retirement allowance pursuant to 3 4 subsection 2A. 3 5 Sec. 5. Section 97A.6, subsection 2, paragraph d, 3 6 subparagraph (3), Code 1995, is amended to read as follows: 3 7 (3) For a member who terminates service, other than by 3 8 death or disability, on or after October 16, 1992, but before 3 9 July 1, 1996, and who does not withdraw the member's 3 10 contributions pursuant to section 97A.16, upon the member's 3 11 retirement there shall be added six-tenths percent of the 3 12 member's average final compensation for each year of service 3 13 over twenty-two years. However, this subparagraph does not 3 14 apply to more than eight additional years of service. 3 15 Sec. 6. Section 97A.6, subsection 2, paragraph d, Code 3 16 1995, is amended by adding the following new subparagraph: 3 17 NEW SUBPARAGRAPH. (4) For a member who terminates 3 18 service, other than by death or disability, on or after July 3 19 1, 1996, and who does not withdraw the member's contributions 3 20 pursuant to section 97A.16, upon the member's retirement there 3 21 shall be added one and one-half percent of the member's 3 22 average final compensation for each year of service over 3 23 twenty-two years. However, this subparagraph does not apply 3 24 to more than eight additional years of service. 3 25 Sec. 7. Section 97A.6, subsection 10, Code 1995, is 3 26 amended to read as follows: 3 27 10. OPTIONAL ALLOWANCE. With the provision that no 3 28 optional selection shall be effective in case a beneficiary 3 29 dies within thirty days after retirement, in which event such 3 30 a beneficiary shall be considered as an active member at the 3 31 time of death, until the first payment on account of any 3 32 benefit becomes normally due, any beneficiary may elect to 3 33 receive the beneficiary's benefit in a retirement allowance 3 34 payable throughout life, or may elect to receive the actuarial 3 35 equivalent at that time of the beneficiary's retirement 4 1 allowance in a lesser retirement allowance payable throughout 4 2 life with the provision that an amount in money not exceeding 4 3 the amount of the beneficiary's accumulated contributions 4 4 shall be immediately paid in cash to such member or some other 4 5 benefit or benefits shall be paid either to the member or to 4 6 such person or persons as the member shall nominate, provided 4 7 such cash payment or other benefit or benefits, together with 4 8 the lesser retirement allowance, shall be certified by the 4 9state commissioner of insuranceactuary to be of equivalent 4 10 actuarial value to the member's retirement allowance and shall 4 11 be approved by the board of trustees; provided, that a cash 4 12 payment to such member or beneficiary at the time of 4 13 retirement of an amount not exceeding fifty percent of the 4 14 member's or beneficiary's accumulated contributions shall be 4 15 made by the board of trustees upon said member's or 4 16 beneficiary's election. 4 17 Sec. 8. Section 97A.6, subsection 12, unnumbered paragraph 4 18 1, Code 1995, is amended to read as follows: 4 19 Pension to surviving spouse and children of deceased 4 20 pensioned members. In the event of the death of any member 4 21 receiving a retirement allowance under the provisions of 4 22 subsections 2, 2A, 4, or 6 of this section there shall be paid 4 23 a pension: 4 24 Sec. 9. Section 97A.6, subsection 12, paragraph a, Code 4 25 1995, is amended to read as follows: 4 26 a. To the member's surviving spouse, equal to one-half the 4 27 amount received by the deceased beneficiary, but in no 4 28 instance less than an amount equal totwentytwenty-five 4 29 percent of the monthly earnable compensation paid to an active 4 30 member having the rank of senior patrol officer of the Iowa 4 31 highway safety patrol, and in addition a monthly pension equal 4 32 to the monthly pension payable under subsection 9, paragraph 4 33 "c," of this section for each child under eighteen years of 4 34 age or twenty-two years of age if applicable; or 4 35 Sec. 10. Section 97A.6, subsection 14, paragraph a, 5 1 subparagraphs (1), (2), and (3), Code 1995, are amended to 5 2 read as follows: 5 3 (1)Twenty-fiveThirty percent for members receiving a 5 4 service retirement allowance and for beneficiaries receiving a 5 5 pension under subsection 9 of this section.However,5 6effective July 1, 1990, for members who retired before that5 7date, thirty percent shall be the applicable percentage for5 8members and beneficiaries under this subparagraph.5 9 (2)Twenty-fiveThirty percent for members with five or 5 10 more years of membership service who are receiving an ordinary 5 11 disability retirement allowance.However, effective July 1,5 121990, for members who retired before that date, thirty percent5 13shall be the applicable percentage for members under this5 14subparagraph.5 15 (3)Twelve and one-halfFifteen percent for members with 5 16 less than five years of membership service who are receiving 5 17 an ordinary disability retirement allowance, and for 5 18 beneficiaries receiving a pension under subsection 8 of this 5 19 section.However, effective July 1, 1990, for members who5 20retired before that date, fifteen percent shall be the5 21applicable percentage for members and beneficiaries under this5 22subparagraph.5 23 Sec. 11. Section 97A.6, subsection 14, paragraph d, Code 5 24 1995, is amended to read as follows: 5 25 d. A retired member eligible for benefits under the 5 26 provisions of subsection 1 is not eligible for the annual 5 27 readjustment of pensions provided in this subsection unless 5 28 the member served at least twenty-two yearsand attained the5 29age of fifty-five yearsprior to the member's termination of 5 30 employment. 5 31 Sec. 12. Section 97A.6, Code 1995, is amended by adding 5 32 the following new subsection: 5 33 NEW SUBSECTION. 2A. EARLY RETIREMENT BENEFITS. 5 34 a. Notwithstanding the calculation of the service 5 35 retirement allowance under subsection 2, beginning July 1, 6 1 1996, a member who has completed twenty-two years or more of 6 2 creditable service and is at least fifty years of age, but 6 3 less than fifty-five years of age, who has otherwise completed 6 4 the requirements for retirement under subsection 1, may retire 6 5 and receive a reduced service retirement allowance pursuant to 6 6 this subsection. The service retirement allowance for a 6 7 member less than fifty-five years of age shall be calculated 6 8 in the manner prescribed in subsection 2, except that the 6 9 percentage multiplier of the member's average final 6 10 compensation used in the determination of the service 6 11 retirement allowance shall be reduced by the board of trustees 6 12 pursuant to paragraph "b". 6 13 b. On July 1, 1996, and on each July 1 thereafter, the 6 14 board of trustees shall determine for the respective fiscal 6 15 year the percent by which the percentage multiplier under 6 16 subsection 2 shall be reduced for each month that a member's 6 17 retirement date precedes the member's fifty-fifth birthday. 6 18 The board of trustees shall make this determination based upon 6 19 the most recent actuarial valuation of the system, the 6 20 calculation of the acturial cost for each month of retirement 6 21 of a member prior to age fifty-five, and the premise that the 6 22 provision of a service retirement allowance to a member who is 6 23 less than fifty-five years of age will not result in any 6 24 increase in cost to the system. 6 25 Sec. 13. Section 97A.7, subsection 2, Code 1995, is 6 26 amended to read as follows: 6 27 2. The several funds created by this chapter may be 6 28 invested in:6 29a. Bonds or other evidences of indebtedness issued,6 30assumed, or guaranteed by the United States of America, or by6 31any agency or instrumentality thereof.6 32b. In savings accounts or time deposits in Iowa banks6 33approved as depositories by the executive council.6 34c. Inany investments authorized for the Iowa public 6 35 employees' retirement system in section 97B.7, subsection 2, 7 1 paragraph "b". 7 2 Sec. 14. Section 97A.8, subsection 1, paragraph b, Code 7 3 1995, is amended to read as follows: 7 4 b. On the basis of the rate of interest and of the 7 5 mortality, interest, and other tables adopted by the board of 7 6 trustees, thestate commissioner of insuranceboard of 7 7 trustees, upon the advice of the actuary hired by the board 7 8 for that purpose, shall make each valuation required by this 7 9 chapter and shall immediately after making such valuation, 7 10 determine the "normal contribution rate". The normal 7 11 contribution rate shall be the rate percent of the earnable 7 12 compensation of all members obtained by deducting from the 7 13 total liabilities of the fund the sum of the amount of the 7 14 funds in hand to the credit of the fund and dividing the 7 15 remainder by one percent of the present value of the 7 16 prospective future compensation of all members as computed on 7 17 the basis of the rate of interest and of mortality and service 7 18 tables adopted by the board of trustees, all reduced by the 7 19 employee contribution made pursuant to this subsection. 7 20 However, the normal rate of contribution shall not be less 7 21 than seventeen percent. The normal rate of contribution shall 7 22 be determined by thestate commissioner of insuranceboard of 7 23 trustees after each valuation. 7 24 Sec. 15. Section 97A.8, subsection 1, paragraph c, 7 25 unnumbered paragraph 3, Code 1995, is amended by striking the 7 26 unnumbered paragraph. 7 27 Sec. 16. Section 97A.8, subsection 1, paragraph f, 7 28 subparagraph (8), Code 1995, is amended to read as follows: 7 29 (8) Notwithstanding any other provision of this chapter, 7 30 beginning July 1, 1996, and each fiscal year thereafter,the7 31member's contribution rate shall be equivalent to the member's7 32contribution rate provided under section 411.8, subsection 1,7 33paragraph "f", for the statewide fire and police retirement7 34system for the applicable fiscal yearan amount equal to the 7 35 member's contribution rate times each member's compensation 8 1 shall be paid to the pension accumulation fund from the 8 2 earnable compensation of the member. For the purposes of this 8 3 subparagraph, the member's contribution rate shall be nine and 8 4 thirty-five hundredths percent. However, the system shall 8 5 increase the member's contribution rate as necessary to cover 8 6 any increase in cost to the system resulting from statutory 8 7 changes which are enacted by any session of the general 8 8 assembly meeting after January 1, 1995, if the increase cannot 8 9 be absorbed within the contribution rates otherwise 8 10 established pursuant to this paragraph, but subject to a 8 11 maximum employee contribution rate of eleven and three-tenths 8 12 percent. After the employee contribution reaches eleven and 8 13 three-tenths percent, sixty percent of the additional cost of 8 14 such statutory changes shall be paid by the employer under 8 15 paragraph "c" and forty percent of the additional cost shall 8 16 be paid by employees under this paragraph. 8 17 Sec. 17. Section 97A.8, subsection 3, Code 1995, is 8 18 amended to read as follows: 8 19 3. EXPENSE FUND. The expense fund shall be the fund to 8 20 which shall be credited all money provided by the state of 8 21 Iowa to pay the administration expenses of the system and from 8 22 which shall be paid all the expenses necessary in connection 8 23 with the administration and operation of the system. 8 24 Biennially the board of trustees shall estimate the amount of 8 25 money necessary to be paid into the expense fund during the 8 26 ensuing biennium to provide for the expense of operation of 8 27 the system. Investment management expenses shall be charged 8 28 to the investment income of the system and there is 8 29 appropriated from the system an amount required for the 8 30 investment management expenses. The board of trustees shall 8 31 report the investment management expenses for the fiscal year 8 32 as a percent of the market value of the system. 8 33 For purposes of this subsection, investment management 8 34 expenses are limited to the following: 8 35 a. Fees for investment advisors, consultants, and 9 1 investment management and benefit consultant firms hired by 9 2 the board of trustees in administering this chapter. 9 3 b. Fees and costs for safekeeping fund assets. 9 4 c. Costs for performance and compliance monitoring, and 9 5 accounting for fund investments. 9 6 d. Any other costs necessary to prudently invest or 9 7 protect the assets of the fund. 9 8 Sec. 18. Section 97A.12, Code 1995, is amended to read as 9 9 follows: 9 10 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR 9 11 ASSIGNMENT. 9 12 The right of any person to a pension, annuity, or 9 13 retirement allowance, to the return of contributions, the 9 14 pension, annuity, or retirement allowance itself, any optional 9 15 benefit or death benefit, any other right accrued or accruing 9 16 to any person under this chapter, and the moneys in the 9 17 various funds created under this chapter, are not subject to 9 18 execution, garnishment, attachment, or any other process 9 19 whatsoever, and are unassignable except for the purposes of 9 20 enforcing child, spousal, or medical support obligations or 9 21 marital property orders, or asin this chapterotherwise 9 22 specifically provided in this chapter. For the purposes of 9 23 enforcing child, spousal, or medical support obligations or 9 24 marital property orders, the garnishment or attachment of or 9 25 the execution against compensation due a person under this 9 26 chapter shall not exceed the amount specified in 15 U.S.C. } 9 27 1673(b). 9 28 Sec. 19. NEW SECTION. 97A.17 OPTIONAL TRANSFERS WITH 9 29 CHAPTER 411. 9 30 1. For purposes of this section unless the context 9 31 otherwise requires: 9 32 a. "Average accrued benefit" means the average of the 9 33 amounts representing the present value of the accrued benefit 9 34 earned by the member determined by the former system and the 9 35 present value of the accrued benefit earned by the member 10 1 determined by the current system. 10 2 b. "Current system" means the eligible retirement system 10 3 in which a person has commenced employment covered by the 10 4 system after having terminated employment covered by the 10 5 former system. 10 6 c. "Eligible retirement system" means the system created 10 7 under this chapter and the statewide fire and police 10 8 retirement system established in chapter 411. 10 9 d. "Former system" means the eligible retirement system in 10 10 which a person has terminated employment covered by the system 10 11 prior to commencing employment covered by the current system. 10 12 2. Commencing July 1, 1996, a vested member of an eligible 10 13 retirement system who terminates employment covered by one 10 14 eligible retirement system and, within sixty days, commences 10 15 employment covered by the other eligible retirement system may 10 16 elect to transfer the average accrued benefit earned from the 10 17 former system to the current system. The member shall file an 10 18 application with the current system for transfer of the 10 19 average accrued benefit within ninety days of the commencement 10 20 of employment with the current system. 10 21 3. Notwithstanding subsection 2, a vested member whose 10 22 employment with the current system commenced prior to July 1, 10 23 1996, may elect to transfer the average accrued benefit earned 10 24 under the former system to the current system by filing an 10 25 application with the current system for transfer of the 10 26 average accrued benefit on or before July 1, 1997. 10 27 4. Upon receipt of an application for transfer of the 10 28 average accrued benefit, the current system shall calculate 10 29 the average accrued benefit and the former system shall 10 30 transfer to the current system assets in an amount equal to 10 31 the average accrued benefit. Once the transfer of the average 10 32 accrued benefit is completed, the member's service under the 10 33 former system shall be treated as membership service under the 10 34 current system for purposes of this chapter and chapter 411. 10 35 DIVISION II 11 1 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 11 2 Sec. 20. Section 400.8, subsection 1, Code 1995, is 11 3 amended to read as follows: 11 4 1. The commission, when necessary under the rules, 11 5 including minimum and maximum age limits, which shall be 11 6 prescribed and published in advance by the commission and 11 7 posted in the city hall, shall hold examinations for the 11 8 purpose of determining the qualifications of applicants for 11 9 positions under civil service, other than promotions, which 11 10 examinations shall be practical in character and shall relate 11 11 to matters which will fairly test the mental and physical 11 12 ability of the applicant to discharge the duties of the 11 13 position to which the applicant seeks appointment. The 11 14 physical examination of applicants for appointment to the 11 15 positions of police officer, police matron, or fire fighter 11 16 shall be held in accordance with medical protocols established 11 17 by the board of trustees of the fire and police retirement 11 18 system established by section 411.5. The board of trustees 11 19 may change the medical protocols at any time the board so 11 20 determines. The commission shall conduct a medical 11 21 examination of an applicant for the position of police 11 22 officer, police matron, or fire fighter after a conditional 11 23 offer of employment has been made to the applicant. An 11 24 applicant shall not be discriminated against on the basis of 11 25 height, weight, sex, or race in determining physical or mental 11 26 ability of the applicant. Reasonable rules relating to 11 27 strength, agility, and general health of applicants shall be 11 28 prescribed. The costs of the physical examination required 11 29 under this subsection shall be paid from the trust and agency 11 30 fund of the city. 11 31 Sec. 21. Section 411.5, Code 1995, is amended by adding 11 32 the following new subsection: 11 33 NEW SUBSECTION. 13. VOLUNTARY BENEFIT PROGRAMS. The 11 34 board of trustees shall be responsible for the administration 11 35 of the voluntary benefit programs established under section 12 1 411.40. The board may take any necessary action, including 12 2 the adoption of rules, for purposes of administering the 12 3 programs. 12 4 Sec. 22. Section 411.6, subsection 7, paragraph a, 12 5 unnumbered paragraph 1, Code 1995, is amended to read as 12 6 follows: 12 7 Should any beneficiary for either ordinary or accidental 12 8 disability, except a beneficiary who is fifty-five years of 12 9 age or over and would have completed twenty-two years of 12 10 service if the beneficiary had remained in active service, be 12 11 engaged in a gainful occupation paying more than the 12 12 difference between the member's retirement allowance and one 12 13 and one-half times the earnable compensation of an active 12 14 member at the same position on the salary scale within the 12 15 member's rank as the member held at retirement, then the 12 16 amount of the member's retirement allowance shall be reduced 12 17 to an amount which together with the amount earned by the 12 18 member shall equal one and one-half times the amount of the 12 19 current earnable compensation of an active member at the same 12 20 position on the salary scale within the member's rank as the 12 21 member held at retirement. Should the member's earning 12 22 capacity be later changed, the amount of the member's 12 23 retirement allowance may be further modified, provided, that 12 24 the new retirement allowance shall not exceed the amount of 12 25 the retirement allowance adjusted by annual readjustments of 12 26 pensions pursuant to subsection 12 of this section nor an 12 27 amount which, when added to the amount earned by the 12 28 beneficiary, equals one and one-half times the amount of the 12 29 earnable compensation of an active member at the same position 12 30 on the salary scale within the member's rank as the member 12 31 held at retirement. A beneficiary restored to active service 12 32 at a salary less than the average final compensation upon the 12 33 basis of which the member was retired at age fifty-five or 12 34 greater, shall not again become a member of the retirement 12 35 system and shall have the member's retirement allowance 13 1 suspended while in active service. If the rank or position 13 2 held by the retired member is subsequently abolished, 13 3 adjustments to the allowable limit on the amount of income 13 4 which can be earned in a gainful occupation shall be computed 13 5in the same manner as provided in subsection 12, paragraph13 6"c", of this section for readjustment of pensions when a rank13 7or position has been abolishedby the board of trustees as 13 8 though such rank or position had not been abolished and salary 13 9 increases had been granted to such rank or position on the 13 10 same basis as increases granted to other ranks and positions 13 11 in the department. 13 12 Sec. 23. Section 411.6, subsection 12, paragraphs a 13 13 through c, Code 1995, are amended by striking the paragraphs 13 14 and inserting in lieu thereof the following: 13 15 a. On each July 1, the monthly pensions authorized in this 13 16 section payable to retired members and to beneficiaries shall 13 17 be adjusted as provided in this subsection. An amount equal 13 18 to the sum of one and one-half percent of the monthly pension 13 19 of each retired member and beneficiary and the applicable 13 20 incremental amount shall be added to the monthly pension of 13 21 each retired member and beneficiary. The board of trustees 13 22 shall report to the general assembly every six years, by 13 23 September 15 of that year, beginning with September 15, 2001, 13 24 on whether the provisions of this subsection continue to pro- 13 25 vide an equitable method for the annual readjustment of 13 26 pensions payable under this chapter. 13 27 b. For purposes of this subsection, "applicable 13 28 incremental amount" means the following amount for members 13 29 receiving a pension under subsection 2, 4, or 6 and for 13 30 beneficiaries receiving a pension under subsection 11: 13 31 (1) Fifteen dollars where the member's retirement date was 13 32 less than five years prior to the effective date of the 13 33 increase. 13 34 (2) Twenty dollars where the member's retirement date was 13 35 at least five years, but less than ten years, prior to the 14 1 effective date of the increase. 14 2 (3) Twenty-five dollars where the member's retirement date 14 3 was at least ten years, but less than fifteen years, prior to 14 4 the effective date of the increase. 14 5 (4) Thirty dollars where the member's retirement date was 14 6 at least fifteen years, but less than twenty years, prior to 14 7 the effective date of the increase. 14 8 (5) Thirty-five dollars where the member's retirement date 14 9 was at least twenty years prior to the effective date of the 14 10 increase. 14 11 c. For beneficiaries receiving a pension under subsection 14 12 8 or 9, the applicable incremental amount shall be determined 14 13 as set forth in paragraph "b", except that the date of the 14 14 member's death shall be substituted for the member's 14 15 retirement date. 14 16 Sec. 24. Section 411.6, subsection 12, Code 1995, is 14 17 amended by adding the following new paragraph: 14 18 NEW PARAGRAPH. e. A retired member eligible for benefits 14 19 under this section and otherwise eligible for the readjustment 14 20 of benefits provided in this subsection is not eligible for 14 21 the readjustment unless the member was retired on or before 14 22 the effective date of the readjustment. 14 23 Sec. 25. Section 411.13, Code 1995, is amended to read as 14 24 follows: 14 25 411.13 EXEMPTION FROM EXECUTION AND OTHER PROCESS, OR 14 26 ASSIGNMENT – EXCEPTIONS. 14 27 The right of any person to a pension, annuity, or 14 28 retirement allowance, to the return of contributions, the 14 29 pension, annuity, or retirement allowance itself, any optional 14 30 benefit or death benefit, any other right accrued or accruing 14 31 to any person under this chapter, and the moneys in the fire 14 32 and police retirement fund created under this chapter, are not 14 33 subject to execution, garnishment, attachment, or any other 14 34 process whatsoever, and are unassignable except for the 14 35 purposes of enforcing child, spousal, or medical support obli- 15 1 gations or marital property orders, or asin this chapter15 2 otherwise specifically provided in this chapter. For the 15 3 purposes of enforcing child, spousal, or medical support 15 4 obligations or marital property orders, the garnishment or 15 5 attachment of or the execution against compensation due a 15 6 person under this chapter shall not exceed the amount 15 7 specified in 15 U.S.C. } 1673(b). 15 8 Sec. 26. NEW SECTION. 411.31 OPTIONAL TRANSFERS WITH 15 9 CHAPTER 97A. 15 10 1. For purposes of this section, unless the context 15 11 otherwise requires: 15 12 a. "Average accrued benefit" means the average of the 15 13 amounts representing the present value of the accrued benefit 15 14 earned by the member determined by the former system and the 15 15 present value of the accrued benefit earned by the member 15 16 determined by the current system. 15 17 b. "Current system" means the eligible retirement system 15 18 in which a person has commenced employment covered by the 15 19 system after having terminated employment covered by the 15 20 former system. 15 21 c. "Eligible retirement system" means the system created 15 22 under this chapter and the Iowa department of public safety 15 23 peace officers' retirement, accident, and disability system 15 24 established in chapter 97A. 15 25 d. "Former system" means the eligible retirement system in 15 26 which a person has terminated employment covered by the system 15 27 prior to commencing employment covered by the current system. 15 28 2. Commencing July 1, 1996, a vested member of an eligible 15 29 retirement system who terminates employment covered by one 15 30 eligible retirement system and, within sixty days, commences 15 31 employment covered by the other eligible retirement system may 15 32 elect to transfer the average accrued benefit earned from the 15 33 former system to the current system. The member shall file an 15 34 application with the current system for transfer of the 15 35 average accrued benefit within ninety days of the commencement 16 1 of employment with the current system. 16 2 3. Notwithstanding subsection 2, a vested member whose 16 3 employment with the current system commenced prior to July 1, 16 4 1996, may elect to transfer the average accrued benefit earned 16 5 under the former system to the current system by filing an 16 6 application with the current system for transfer of the 16 7 average accrued benefit on or before July 1, 1997. 16 8 4. Upon receipt of an application for transfer of the 16 9 average accrued benefit, the current system shall calculate 16 10 the average accrued benefit and the former system shall 16 11 transfer to the current system assets in an amount equal to 16 12 the average accrued benefit. Once the transfer of the average 16 13 accrued benefit is completed, the member's service under the 16 14 former system shall be treated as membership service under the 16 15 current system for purposes of this chapter and chapter 97A. 16 16 Sec. 27. Section 411.37, subsection 2, Code 1995, is 16 17 amended to read as follows: 16 18 2. The board shall include in the transition plan or other 16 19 transition documents, provisions to facilitate continuity 16 20 under sections 411.20, 411.21, and 411.30and a recommendation16 21for an equitable process for determining earnable compensation16 22changes when calculating adjustments to pensions under section16 23411.6, subsection 12, to be submitted to the general assembly16 24meeting in 1991. 16 25 Sec. 28. Section 411.38, subsection 1, paragraph b, 16 26 unnumbered paragraph 1, Code 1995, is amended to read as 16 27 follows: 16 28 Transfer from each terminated city fire or police 16 29 retirement system to the statewide system amounts sufficient 16 30 to cover the accrued liabilities of that terminated system as 16 31 determined by the actuary of the statewide system. The 16 32 actuary of the statewide system shall redetermine the accrued 16 33 liabilities of the terminated systems as necessary to take 16 34 into account additional amounts payable by the city which are 16 35 attributable to errors or omissions which occurred prior to 17 1 January 1, 1992, or to matters pending as of January 1, 1992. 17 2 If the actuary of the statewide system determines that the 17 3 assets transferred by a terminated system are insufficient to 17 4 fully fund the accrued liabilities of the terminated system as 17 5 determined by the actuary as of January 1, 1992, the 17 6 participating city shall pay to the statewide system an amount 17 7 equal to the unfunded liability plus interest for the period 17 8 beginning January 1, 1992, and ending with the date of payment 17 9 or the date of entry into an amortization agreement pursuant 17 10 to this section. Interest on the unfunded liability shall be 17 11 computed at a rate equal to the greater of the actuarial 17 12 interest rate assumption on investments of the moneys in the 17 13 fund or the actual investment earnings of the fund for the 17 14 applicable calendar year. The participating city may enter 17 15 into an agreement with the statewide system to make additional 17 16 annual contributions sufficient to amortize the unfunded 17 17 accrued liability of the terminated system. The terms of an 17 18 amortization agreement shall be based upon the recommendation 17 19 of the actuary of the statewide system, and the agreement 17 20 shall do each of the following: 17 21 Sec. 29. NEW SECTION. 411.40 VOLUNTARY BENEFIT PROGRAMS. 17 22 The board of trustees may establish voluntary benefit 17 23 programs for members subject to the following conditions: 17 24 1. The voluntary benefit programs may provide benefits 17 25 including, but not limited to, retiree health benefits, long- 17 26 term care, and life insurance. 17 27 2. Participation in the voluntary benefit programs by 17 28 members shall be voluntary. 17 29 3. Contributions to the voluntary benefit programs shall 17 30 be paid entirely by each participating member by means of 17 31 payroll deduction. Cities employing members participating in 17 32 voluntary benefit programs shall forward the amounts deducted 17 33 to the board of trustees for deposit in the voluntary benefit 17 34 fund. 17 35 4. The voluntary benefit programs and the voluntary 18 1 benefit fund shall be administered under the direction of the 18 2 board of trustees for the exclusive benefit of members paying 18 3 contributions as provided in subsection 3. 18 4 5. The assets of the voluntary benefit programs shall be 18 5 credited to the voluntary benefit fund, which is hereby 18 6 created. The voluntary benefit fund shall include 18 7 contributions deposited in accordance with subsection 3, and 18 8 any interest and earnings on the contributions. The board of 18 9 trustees shall annually establish an investment policy to 18 10 govern the investment and reinvestment of the assets in the 18 11 voluntary benefit fund. The voluntary benefit fund created 18 12 under this section and the fire and police retirement fund 18 13 created under section 411.8 shall not be used to subsidize any 18 14 portion of the liabilities of the other fund. 18 15 6. The board of trustees shall include in its annual 18 16 budget the amount of money necessary during the following year 18 17 to provide for the expense of operation of the voluntary 18 18 benefit programs. The operating expenses shall be paid from 18 19 the voluntary benefit fund under the direction of the board of 18 20 trustees. 18 21 DIVISION III 18 22 EFFECTIVE AND APPLICABILITY PROVISIONS 18 23 Sec. 30. EFFECTIVE DATE. The section of this Act which 18 24 amends section 411.6, subsection 12, paragraphs "a" through 18 25 "c", takes effect July 1, 1997. 18 26 EXPLANATION 18 27 This bill provides numerous changes to the public safety 18 28 peace officers' retirement, accident and disability system and 18 29 the statewide fire and police retirement system. This bill 18 30 may include a state mandate as defined in section 25B.3. The 18 31 state mandate funding requirement in section 25B.2, however, 18 32 does not apply to public employee retirement systems. 18 33 The changes to the public retirement systems provided in 18 34 this bill are as follows: 18 35 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 19 1 ACCIDENT, AND DISABILITY SYSTEM 19 2 Sections 97A.5, 97A.6, and 97A.8 are amended to provide 19 3 that the board of trustees shall, upon the advice of an 19 4 actuary hired by the board, make the necessary valuations for 19 5 determining the contribution rate into the fund. Currently, 19 6 the commissioner of insurance is given the responsibility to 19 7 perform these functions. 19 8 Section 97A.5 is further amended to provide that the board 19 9 of trustees may hire investment and benefit advisors and 19 10 consultants in order to administer the system. The section is 19 11 also amended to provide that the department of public safety, 19 12 the board of trustees, and the treasurer of state shall not be 19 13 liable for their actions that do not constitute malicious or 19 14 wanton misconduct, even if the actions violate standards 19 15 established in section 97A.7. 19 16 Section 97A.6, subsection 2, is amended to increase, from 19 17 .6 percent to 1.5 percent the additional benefit for members 19 18 for each additional year of service in the system from 22 to 19 19 30 years of service for members terminating service on or 19 20 after July 1, 1996. 19 21 Section 97A.6, subsection 12, is amended to increase the 19 22 minimum benefit for surviving spouses of members from 20 19 23 percent to 25 percent of the compensation for a senior patrol 19 24 officer. 19 25 Section 97A.6, subsection 14, is amended to provide for an 19 26 increase in the percentages used to provide an annual 19 27 readjustment of the pension payable from the current 12.5 19 28 percent and 25 percent to 15 percent and 30 percent, 19 29 respectively. Currently, only those members who retired prior 19 30 to July 1, 1990, get the higher percentage readjustment. The 19 31 bill also provides that a retired member is eligible for this 19 32 readjustment if the member served 22 years. Currently, a 19 33 member must serve 22 years and attain the age of 55 years 19 34 before retirement in order to be eligible for the 19 35 readjustment. 20 1 Section 97A.6 is amended by adding a new subsection 20 2 providing for early retirement benefits for members who retire 20 3 between the ages of 50 and 55 years but who have 22 years of 20 4 service. The member's benefit will be reduced by an amount 20 5 for each month of early retirement to reflect the actuarial 20 6 cost, so that the early retirement does not result in any 20 7 increase in cost to the system. 20 8 Section 97A.8, subsection 1, is amended to eliminate the 20 9 requirement that, beginning July 1, 1996, the normal 20 10 contribution rate and the member's contribution rate be 20 11 equivalent to the respective rates provided under the 20 12 statewide fire and police retirement system. Instead, these 20 13 sections provide for establishing both rates based on the 20 14 costs associated with the peace officers' retirement system, 20 15 subject to certain existing limitations. 20 16 Section 97A.8, subsection 3, is amended to specify which 20 17 investment management expenses may be paid for by the expense 20 18 fund established for the system. 20 19 Section 97A.12 is amended to provide that a member's 20 20 pension under the system is subject to assignment based on a 20 21 marital property order or a child, spousal, or medical support 20 22 order. 20 23 New section 97A.17 establishes a mechanism for allowing 20 24 vested members of the system and vested members of the 20 25 statewide fire and police retirement system established in 20 26 chapter 411 to transfer to the other system with credit for 20 27 the period of service in the former system. The section 20 28 permits a member who transferred to the other system before 20 29 the effective date of this section to transfer credit from the 20 30 former system to the current system within one year from the 20 31 effective date of this section. 20 32 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 20 33 Section 400.8 is amended to authorize the board of trustees 20 34 of the statewide fire and police retirement system to update 20 35 the medical protocols used for examining applicants for 21 1 employment as a police officer or fire fighter. 21 2 Section 411.5 is amended to provide that the board of 21 3 trustees is given the authority to take any necessary action 21 4 to administer the voluntary benefit programs established in 21 5 new section 411.40. 21 6 Section 411.6, subsection 12, is amended to replace the 21 7 current method for annually readjusting the pensions of 21 8 members of the system effective July 1, 1997. The bill 21 9 provides that the monthly pensions of members shall be 21 10 adjusted each July 1 by adding an amount to the pension that 21 11 represents an increase of 1.5 percent over the previous year's 21 12 monthly pension plus a set dollar amount based on the number 21 13 of years the member has been retired. This section provides 21 14 that a retired member must be retired on or before the 21 15 effective date of the pension readjustment to be eligible for 21 16 the readjustment. 21 17 Section 411.13 is amended to provide that a member's 21 18 pension under the system is subject to assignment based on a 21 19 marital property order or a child, spousal, or medical support 21 20 order. 21 21 New section 411.31 establishes a mechanism for allowing 21 22 vested members of the system and vested members of the public 21 23 safety peace officers', accident and disability system in 21 24 chapter 97A to transfer to the other system with credit for 21 25 the period of service in the former system. The section 21 26 permits a member who transferred to the other system before 21 27 the effective date of this section to transfer credit from the 21 28 former system to the current system within one year from the 21 29 effective date of this section. 21 30 Section 411.38 is amended to establish a mechanism to 21 31 charge participating cities in the system with the unfunded 21 32 liability of that city along with interest calculated based on 21 33 the investment performance or actuarial assumptions of the 21 34 system. 21 35 New section 411.40 establishes voluntary benefit programs 22 1 for members of the system. The board of trustees is 22 2 authorized to establish programs for the benefit of members, 22 3 to include retiree health, long-term care, and life insurance. 22 4 The section establishes a voluntary benefit fund for the 22 5 purpose of investing assets transferred to the fund from 22 6 employee contributions. Participation in the program by 22 7 members is voluntary. 22 8 LSB 3541HC 76 22 9 ec/cf/24
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