Text: HSB00687 Text: HSB00689 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 97B.4, unnumbered paragraph 1, Code 1 2 1995, is amended to read as follows: 1 3 The department, through the chief investment officer and 1 4 chief benefits officer, shall administer this chapter. The 1 5 department may adopt, amend, or rescind rules, employ persons, 1 6 execute contracts with outside parties, make expenditures, 1 7 require reports, make investigations, and take other action it 1 8 deems necessary for the administration of the system in 1 9 conformity with the requirements of this chapter, the 1 10 applicable provisions of the Internal Revenue Code, and all 1 11 other applicable federal and state laws. The rules shall be 1 12 effective upon compliance with chapter 17A. Not later than 1 13 the fifteenth day of December of each year, the department 1 14 shall submit to the governor a report covering the 1 15 administration and operation of this chapter during the 1 16 preceding fiscal year and shall make recommendations for 1 17 amendments to this chapter. The report shall include a 1 18 balance sheet of the moneys in the Iowa public employees' 1 19 retirement fund. 1 20 Sec. 2. Section 97B.7, subsection 2, paragraph b, 1 21 unnumbered paragraphs 1 through 3, Code 1995, are amended to 1 22 read as follows: 1 23 To invest the portion of the retirement fund which in the 1 24 judgment of the department is not needed for current payment 1 25 of benefits under this chapter. The department shall execute 1 26 the disposition and investment of moneys in the retirement 1 27 fund in accordance with the investment policy and goal 1 28 statement established by the investment board. In 1 29 establishing the investment policy of the fund and the 1 30 investment of the fund, the department and investment board 1 31 shall exercise the judgment and care, under the circumstances 1 32 then prevailing, which persons of prudence, discretion, and 1 33 intelligence exercise in the management of their own affairs, 1 34 not for the purpose of speculation, but with regard to the 1 35 permanent disposition of the funds, considering the probable 2 1 income, as well as the probable safety, of their capital. 2 2 Within the limitations of the standard prescribed in this 2 3 section, the treasurer of state, the department, and the board 2 4 may acquire and retain every kind of property and every kind 2 5 of investment which persons of prudence, discretion, and 2 6 intelligence acquire or retain for their own account. 2 7 The department and investment board shall give appropriate 2 8 consideration to those facts and circumstances that the 2 9 department and investment board know or should know are 2 10 relevant to the particular investment or investment policy 2 11 involved, including the role the investment plays in the total 2 12 value of the retirement fund. 2 13 For the purposes of this paragraph, appropriate con- 2 14 sideration includes, but is not limited to, a determination by 2 15 the department and investment board that the particular 2 16 investment or investment policy is reasonably designed to 2 17 further the purposes of the retirement system, taking into 2 18 consideration the risk of loss and the opportunity for gain or 2 19 other return associated with the investment or investment 2 20 policy and consideration of the following factors as they 2 21 relate to the retirement fund: 2 22 Sec. 3. Section 97B.11, Code 1995, is amended to read as 2 23 follows: 2 24 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE. 2 25 Each employer shall deduct from the wages of each member of 2 26 the system a contribution in the amount of three and seven- 2 27 tenths percent of the covered wages paid by the employer, 2 28 until the member's termination or retirement from employment, 2 29 whichever is earlier. The contributions of the employer shall 2 30 be in the amount of five and seventy-five hundredths percent 2 31 of the covered wages of the member. 2 32 If the total of the contributions to be deducted from the 2 33 wages of a member and contributions picked up and paid by the 2 34 employer shall not exceed one dollar for any calendar quarter, 2 35 contributions shall not be deducted or paid concerning that 3 1 member and the member shall not receive credit for membership 3 2 service for that quarter. 3 3 Sec. 4. Section 97B.14, Code 1995, is amended to read as 3 4 follows: 3 5 97B.14 CONTRIBUTIONS FORWARDED. 3 6 Contributions deducted from the wages of the memberor3 7 under section 97B.11 prior to January 1, 1995, member 3 8 contributions picked up by the employer under section 97B.11A 3 9 beginning January 1, 1995, and the employer's contribution 3 10 shall be forwarded to the department for recording and 3 11 deposited with the treasurer of the state to the credit of the 3 12 Iowa public employees' retirement fund. Contributions shall 3 13 be remitted monthly, if total contributions by both employee 3 14 and employer amount to one hundred dollars or more each month, 3 15 and shall be otherwise paid in such manner, at such times and 3 16 under such conditions, either by copies of payrolls or other 3 17 methods necessary or helpful in securing proper identification 3 18 of the member, as may be prescribed by the department. 3 19 Sec. 5. Section 97B.15, Code 1995, is amended to read as 3 20 follows: 3 21 97B.15 RULES, POLICIES, AND PROCEDURES. 3 22 The department may adopt rules under chapter 17A and 3 23 establish procedures, not inconsistent with this chapter, 3 24 which are necessary or appropriate to implement this chapter 3 25 and shall adopt reasonable and proper rules to regulate and 3 26 provide for the nature and extent of the proofs and evidence 3 27 and the method of taking and furnishing the proofs and 3 28 evidence in order to establish the right to benefits under 3 29 this chapter. The department may adopt rules, and take action 3 30 based on the rules, to conform the requirements for receipt of 3 31 retirement benefits under this chapter to the mandates of 3 32 applicable federal statutes and regulations. 3 33 Prior to the adoption of rules, the department may 3 34 establish interim written policies and procedures, and take 3 35 action based on the policies and procedures, to conform the 4 1 requirements for receipt of retirement benefits under this 4 2 chapter to the applicable requirements of federal law. 4 3 Sec. 6. Section 97B.17, unnumbered paragraph 1, Code 1995, 4 4 is amended to read as follows: 4 5 The department shall establish and maintain records of each 4 6 member, including but not limited to, the amount of wages of 4 7 each member, the contribution of each member with interest, 4 8 and interest dividends credited. The records may be 4 9 maintained in paper, magnetic, or electronic form, including 4 10 optical disk storage. These records are the basis for the 4 11 compilation of the retirement benefits provided under this 4 12 chapter. The following records maintained under this chapter 4 13 containing personal identifiable information are not public 4 14 records for the purposes of chapter 22: 4 15 Sec. 7. Section 97B.17, Code 1995, is amended by adding 4 16 the following new unnumbered paragraph: 4 17 NEW UNNUMBERED PARAGRAPH. Notwithstanding any provisions 4 18 of chapter 22 to the contrary, the department's records may be 4 19 released to any political subdivision, instrumentality, or 4 20 other agency of the state solely for use in a civil or 4 21 criminal law enforcement activity pursuant to the requirements 4 22 of this paragraph. To obtain the records, the political 4 23 subdivision, instrumentality, or agency shall, in writing, 4 24 certify that the activity is authorized by law, provide a 4 25 written description of the information desired, and describe 4 26 the law enforcement activity for which the information is 4 27 sought. The department shall not be civilly or criminally 4 28 liable for the release or rerelease of records in accordance 4 29 with this paragraph. 4 30 Sec. 8. Section 97B.25, Code 1995, is amended to read as 4 31 follows: 4 32 97B.25 APPLICATIONS FOR BENEFITS. 4 33 A representative designated by the chief benefits officer 4 34 and referred to in this chapter as a retirement benefits 4 35 specialist shall promptly examine applications for retirement 5 1 benefits and on the basis of facts found shall determine 5 2 whether or not the claim is valid and if valid, the month with 5 3 respect to which benefits shall commence, the monthly benefit 5 4 amount payable, and the maximum duration. The retirement 5 5 benefits specialist shall promptly notify the applicant and 5 6 any other interested party of the decision and the reasons. 5 7 Unless the applicant or other interested party, within thirty 5 8 calendar days after the notification was mailed to the 5 9 applicant's or party's last known address, files an appeal as 5 10 provided in section 97B.20A, the decision is final and 5 11 benefits shall be paid or denied in accord with the decision. 5 12 A retirement application shall not be amended or revoked by 5 13 the member once the first retirement allowance is paid. A 5 14 member's death during the first month of entitlement shall not 5 15 invalidate an approved application. 5 16 Sec. 9. Section 97B.39, Code 1995, is amended to read as 5 17 follows: 5 18 97B.39 RIGHTS NOT TRANSFERABLE– NOTOR SUBJECT TO LEGAL 5 19 PROCESS – EXCEPTIONS. 5 20 The right of any person to any future payment under this 5 21 chapter is not transferable or assignable, at law or in 5 22 equity, and the moneys paid or payable or rights existing 5 23 under this chapter are not subject to execution, levy, 5 24 attachment, garnishment, or other legal process, or to the 5 25 operation of any bankruptcy or insolvency law except for the 5 26 purposes of enforcing child, spousal, or medical support 5 27 obligations or marital property orders. For the purposes of 5 28 enforcing child, spousal, or medical support obligations or 5 29 marital property orders, the garnishment or attachment of or 5 30 the execution against compensation due a person underchapter5 3197Bthis chapter shall not exceed the amount specified in 15 5 32 U.S.C. } 1673(b). A marital property order shall not require 5 33 the payment of benefits to an alternate payee prior to the 5 34 member's retirement or require the department or the member to 5 35 designate a particular person as a designated beneficiary or 6 1 contingent annuitant, or to select a particular benefit option 6 2 on behalf of the member. In addition, a marital property 6 3 order shall not require payment of benefits to an alternate 6 4 payee prior to the date the member elects to receive a lump- 6 5 sum distribution of accumulated contributions pursuant to 6 6 section 97B.53. 6 7 Sec. 10. Section 97B.41, subsection 2, Code Supplement 6 8 1995, is amended to read as follows: 6 9 2. "Accumulated contributions" means the total obtained as 6 10 of any date, by accumulating each individual contribution by 6 11 the memberat two percentwith interest plus interest 6 12 dividends as provided in section 97B.70, for all completed 6 13 calendar years and for any completed calendar year for which 6 14 the interest dividend has not been declared and for completed 6 15 months of partially completed calendar yearsat two percent6 16interest plus the interest dividend rate calculated for the6 17previous year, compoundedannually, from the end of the6 18calendar year in which such contribution was made to the first6 19day of the month of such dateas provided in section 97B.70. 6 20 Sec. 11. Section 97B.41, subsection 8, paragraph b, 6 21 subparagraph (6), Code Supplement 1995, is amended to read as 6 22 follows: 6 23 (6) Employees hired for temporary employment of less than 6 24 six months or one thousand and forty hours in a calendar year. 6 25 An employee who works for an employer for six or more months 6 26 in a calendar year or who works for an employer for more than 6 27 one thousand forty hours in a calendar year is not a temporary 6 28 employee under this subparagraph. Adjunct instructors are 6 29 temporary employees for the purposes of this chapter. As used 6 30 in this section, unless the context otherwise requires, 6 31 "adjunct instructors" means instructors employed by a 6 32 community college or a university governed by the state board 6 33 of regents without a continuing contract, whose teaching load 6 34 does not exceed one-half time for two full semesters or three 6 35 full quarters per calendar year. 7 1 Sec. 12. Section 97B.41, subsection 8, paragraph b, Code 7 2 Supplement 1995, is amended by adding the following new 7 3 subparagraph: 7 4 NEW SUBPARAGRAPH. (20) Persons employed through any 7 5 program described in section 15.225, subsection 1, and 7 6 provided by the Iowa conservation corps. 7 7 Sec. 13. Section 97B.41, Code Supplement 1995, is amended 7 8 by adding the following new subsection: 7 9 NEW SUBSECTION. 10A. "Internal Revenue Code" means the 7 10 Internal Revenue Code as defined in section 422.3. 7 11 Sec. 14. Section 97B.41, subsection 12, Code Supplement 7 12 1995, is amended to read as follows: 7 13 12. "Membership service" means service rendered by a 7 14 member after July 4, 1953. Years of membership service shall 7 15 be counted to the complete quarter calendar year. However, 7 16 membership service for a calendar year shall not include more 7 17 than four quarters. In determining a member's period of 7 18 membership service, the department shall combine all periods 7 19 of service for which the member has made contributions. If 7 20 the department has not maintained the accumulated contribution 7 21 account of the member for a period of service, as provided 7 22 pursuant to section 97B.53, subsection 6, the department shall 7 23 credit the member for the service if the member submits 7 24 satisfactory proof to the department that the member did make 7 25 the contributions for the period of service and did not take a 7 26 refund for the period of service.However, the department7 27shall not implement the amendments to this subsection, as7 28enacted in 1994 Iowa Acts, chapter 1183, unless and until the7 29department determines that the most recent annual actuarial7 30valuation of the retirement system indicates that the employer7 31and employee contribution rates in effect under section 97B.117 32can absorb the amendments to this subsection and to section7 3397B.53, subsections 3 and 7, section 97B.53, subsection 6,7 34unnumbered paragraph 1, and section 97B.70, by enacting a new7 35subsection 4, contained in 1994 Iowa Acts, chapter 1183, after8 1meeting the other established priorities of the system. Until8 2the amendments are implemented, the department shall continue8 3to implement the provisions of section 97B.41, subsection 12,8 4Code Supplement 1993. As used in this subsection, unless the8 5context otherwise requires, "other established priorities of8 6the system" means that commencing January 1 following the most8 7recent annual actuarial valuation of the system, the8 8department has increased the covered wage limitation from the8 9previous year by three thousand dollars, in accordance with8 10section 97B.41, subsection 20, paragraph "b", subparagraph8 11(11), and that the department has implemented the amendments8 12to section 97B.66, unnumbered paragraphs 1 and 2, section8 1397B.72, unnumbered paragraphs 1 and 2, section 97B.72A,8 14subsection 1, unnumbered paragraph 1, section 97B.73A,8 15unnumbered paragraph 1, and section 97B.74, unnumbered8 16paragraphs 1 and 2, contained in 1994 Iowa Acts, chapter 1183.8 17 Sec. 15. Section 97B.41, Code Supplement 1995, is amended 8 18 by adding the following new subsection: 8 19 NEW SUBSECTION. 14A. "Retirement" means that period of 8 20 time beginning when a member who has filed an approved 8 21 application for a retirement allowance has survived into at 8 22 least the first day of the member's first month of entitlement 8 23 and ending when the member dies. 8 24 Sec. 16. Section 97B.41, subsection 15, paragraphs a and 8 25 b, Code Supplement 1995, are amended to read as follows: 8 26 a. Service in the armed forces of the United States, if 8 27 the employee was employed by the employer immediately prior to 8 28 entry into the armed forces, and if the employee was released 8 29 from service and returns to covered employment with the 8 30 employer within twelve months of the date on which the 8 31 employee has the right of release from service or within a 8 32 longer period asprovidedrequired by the applicable laws of 8 33 the United States. 8 34 b. Leave of absence or vacation authorized by the employer 8 35 for a period not exceeding twelve months. A leave of absence 9 1 authorized pursuant to the requirements of the federal Family 9 2 and Medical Leave Act of 1993 is considered a leave of absence 9 3 authorized by the employer. 9 4 Sec. 17. Section 97B.41, subsection 18, Code Supplement 9 5 1995, is amended to read as follows: 9 6 18. a. "Three-year average covered wage" means a member's 9 7 covered wages averaged for the highest three years of the 9 8 member's service, except as otherwise provided in this 9 9 subsection. The highest three years of a member's covered 9 10 wages shall be determined using calendar years. However, if a 9 11 member's final quarter of a year of employment does not occur 9 12 at the end of a calendar year, the department may determine 9 13 the wages for the third year by computing the average quarter 9 14 of all quarters from the member's highest calendar year of 9 15 covered wages not being used in the selection of the two 9 16 highest years and using the computed average quarter for each 9 17 quarter in the third year in which no wages have been reported 9 18 in combination with the final quarter or quarters of the 9 19 member's service to create a full year. However, the 9 20 department shall not use the member's final quarter of wages 9 21 if using that quarter would reduce the member's three-year 9 22 average covered wage. If the three-year average covered wage 9 23 of a member exceeds the highest maximum covered wages in 9 24 effect for a calendar year during the member's period of 9 25 service, the three-year average covered wage of the member 9 26 shall be reduced to the highest maximum covered wages in 9 27 effect during the member's period of service. 9 28 b. Notwithstanding any other provisions of this subsection 9 29 to the contrary, the three-year average covered wage shall be 9 30 computed as follows for the following members: 9 31 (1) For a member who retires during the calendar year 9 32 beginning January 1, 1997, and whose three-year average 9 33 covered wage at the time of retirement exceeds forty-eight 9 34 thousand dollars, the member's covered wages averaged for the 9 35 highest four years of the member's service or forty-eight 10 1 thousand dollars, whichever is greater. 10 2 (2) For a member who retires during the calendar year 10 3 beginning January 1, 1998, and whose three-year average 10 4 covered wage at the time of retirement exceeds fifty-two 10 5 thousand dollars, the member's covered wages averaged for the 10 6 highest five years of the member's service or fifty-two 10 7 thousand dollars, whichever is greater. 10 8 (3) For a member who retires during the calendar year 10 9 beginning January 1, 1999, and whose three-year average 10 10 covered wage at the time of retirement exceeds fifty-five 10 11 thousand dollars, the member's covered wages averaged for the 10 12 highest six years of the member's service or fifty-five 10 13 thousand dollars, whichever is greater. 10 14 (4) For a member who retires on or after January 1, 2000, 10 15 but before January 1, 2003, and whose three-year average 10 16 covered wage at the time of retirement exceeds fifty-five 10 17 thousand dollars, the member's covered wages averaged for the 10 18 highest seven years of the member's service or fifty-five 10 19 thousand dollars, whichever is greater. 10 20 For purposes of this paragraph, the highest years of the 10 21 member's service shall be determined using calendar years and 10 22 may be determined using one computed year calculated in the 10 23 manner and subject to the restrictions provided in paragraph 10 24 "a". 10 25 Sec. 18. Section 97B.41, subsection 20, paragraph b, 10 26 subparagraph (11), unnumbered paragraphs 1 and 2, Code 10 27 Supplement 1995, are amended by striking the unnumbered 10 28 paragraphs and inserting in lieu thereof the following: 10 29 (11) For the calendar year beginning January 1, 1991, 10 30 wages not in excess of thirty-one thousand dollars. 10 31 (11A) For the calendar year beginning January 1, 1992, 10 32 wages not in excess of thirty-four thousand dollars. 10 33 (11B) For the calendar year beginning January 1, 1993, 10 34 wages not in excess of thirty-five thousand dollars. 10 35 (11C) For the calendar year beginning January 1, 1994, 11 1 wages not in excess of thirty-eight thousand dollars. 11 2 (11D) For the calendar year beginning January 1, 1995, 11 3 wages not in excess of forty-one thousand dollars. 11 4 (11E) For the calendar year beginning January 1, 1996, 11 5 wages not in excess of forty-four thousand dollars. 11 6 (11F) Commencing with the calendar year beginning January 11 7 1, 1997, and for each subsequent calendar year, wages not in 11 8 excess of the amount permitted for that year under section 11 9 401(a)(17) of the Internal Revenue Code. 11 10 Sec. 19. Section 97B.42, unnumbered paragraph 1, Code 11 11 1995, is amended to read as follows: 11 12 Each employee whose employment commences after July 4, 11 13 1953, or who has not qualified for credit for prior service 11 14 rendered prior to July 4, 1953, or any publicly elected 11 15 official of the state or any of its political subdivisions 11 16 shall become a member upon the first day in which such 11 17 employee is employed. The employee shall continue to be an 11 18 active member so long as the employee continues in covered 11 19 employment. The employee shall cease to be an active member 11 20 if the employee joins another retirement system in the state 11 21 which is maintained in whole or in part by public 11 22 contributions or payments and receives retirement credit for 11 23 service in that other system for the same position previously 11 24 covered under this chapter. If an employee joins another 11 25 publicly maintained retirement system and ceases to be an 11 26 active member under this chapter, the employee may elect to 11 27 leave the employee's accumulated contributions in the 11 28 retirement fund or receive a refund of the employee's 11 29 accumulated contributions in the manner provided for members 11 30 who are terminating covered employment pursuant to section 11 31 97B.53. However, if an employee joins another publicly 11 32 maintained retirement system and leaves the employee's 11 33 accumulated contributions in the retirement fund, the employee 11 34 shall not be eligible to receive retirement benefits until the 11 35 employee has a bona fide retirement from employment with a 12 1 covered employer as provided in section 97B.52A, or until the 12 2 employee would otherwise be eligible to receive benefits upon 12 3 attaining the age of seventy years as provided in section 12 4 97B.46. 12 5 Sec. 20. Section 97B.42, unnumbered paragraph 4, Code 12 6 1995, is amended to read as follows: 12 7 Persons who are members of any other retirement system in 12 8 the state which is maintained in whole or in part by public 12 9 contributions other than persons who are covered under the 12 10 provisions of chapter 97, Code 1950, as amended by the Fifty- 12 11 fourth General Assembly on the date of the repeal of said 12 12 chapter, under the provisions of sections 97.50 through 97.53 12 13 shall not become members under this chapter while still 12 14 actively participating in that other retirement system unless 12 15 the persons do not receive retirement credit for service in 12 16 that other system for the position to be covered under this 12 17 chapter. 12 18 Sec. 21. Section 97B.42, unnumbered paragraph 5, Code 12 19 1995, is amended to read as follows: 12 20 Nothing herein contained shall be construed to permit any 12 21person in public employment to be an active member ofemployer 12 22 to make any public contributions or payments on behalf of an 12 23 employee in the same position for the same period of time to 12 24 both the Iowa public employees' retirement system and of any 12 25 other retirement system in the state which is supported in 12 26 whole or in part by public contributions or paymentsexcept as12 27heretofore provided. 12 28 Sec. 22. Section 97B.42, Code 1995, is amended by adding 12 29 the following new unnumbered paragraph: 12 30 NEW UNNUMBERED PARAGRAPH. For purposes of this section, a 12 31 "retirement system in the state which is maintained in whole 12 32 or in part by public contributions or payments" shall not 12 33 include a deferred compensation plan established under section 12 34 509A.12 or a tax-sheltered annuity qualified under section 12 35 403(b) of the Internal Revenue Code. 13 1 Sec. 23. Section 97B.48, subsection 1, Code 1995, is 13 2 amended to read as follows: 13 3 1. Retirement allowances shall be paid monthly, except 13 4 that an allowance of less than six hundred dollars a year may, 13 5 at the member's option, be paid as a lump sum in anactuarial13 6equivalentamount equal to the sum of the member's and 13 7 employer's accumulated contributions and the retirement 13 8 dividends standing to the member's credit before December 31, 13 9 1966. Receipt of the lump-sum payment by a member shall 13 10 terminate any and all entitlement for the period of service 13 11 covered of the member under this chapter. 13 12 Sec. 24. Section 97B.48, subsection 2, Code 1995, is 13 13 amended to read as follows: 13 14 2. The first monthly payment of a normal retirement 13 15 allowance shall be paid as of the normal retirement effective 13 16 date, which date shall be the later of the normal retirement 13 17 date or the first day of the sixth calendar month preceding 13 18 the month in which written notice of normal retirement is 13 19 submitted to the department. Written notice under this 13 20 section may consist of submission of a completed estimate 13 21 request form, a completed application for retirement form, or 13 22 a letter from the member requesting information on retirement 13 23 benefits, whichever is received first by the department. 13 24However,The date by which a letter requesting information on 13 25 benefits orsubmission ofa completed estimate request form is 13 26only valid for six months following the date of its receipt by13 27the department, unless during that six-month period the13 28department receives a completed application for retirement13 29form from the memberreceived shall be used in determining the 13 30 member's first month of entitlement if, within ninety days of 13 31 the date of the estimate of benefits generated in response to 13 32 the letter or request form, the member submits a completed 13 33 application for retirement. A retirement allowance may only 13 34 be provided retroactively for a single six-month period. 13 35 Payment of an early retirement allowance or an allowance for 14 1 retirement after the normal retirement date shall be paid as 14 2 of the effective date of retirement subject to section 97B.45, 14 3 97B.46, or 97B.47. The payments shall be continued thereafter 14 4 for the lifetime of the retired member except as provided in 14 5 section 97B.48A. 14 6 Sec. 25. Section 97B.48A, subsection 1, Code 1995, is 14 7 amended to read as follows: 14 8 1. If, after the first day of the month in which the14 9member attains the age of fifty-five years and until the14 10member's sixty-fifth birthday,a member who has not reached 14 11 the member's sixty-fifth birthday and who has a bona fide 14 12 retirement under this chapter is in regular full-time 14 13 employment during a calendar year, the member's retirement 14 14 allowance shall besuspended for as long as the member remains14 15in employment for the remainder of that calendar yearreduced 14 16 by fifty cents for each dollar the member earns over the limit 14 17 provided in this subsection. However,effective January 1,14 181992,employment is not full-time employment until the member 14 19 receives remuneration in an amount in excess of seven thousand 14 20 four hundred forty dollars for a calendar year, or an amount 14 21 equal to the amount of remuneration permitted for a calendar 14 22 year for persons under sixty-five years of age before a 14 23 reduction in federal Social Security retirement benefits is 14 24 required, whichever is higher. Effective the first of the 14 25 month in which a member attains the age of sixty-five years, a 14 26 retired member may receive a retirement allowance without a 14 27 reduction after return to covered employment regardless of the 14 28 amount of remuneration received. 14 29 If a member dies and the full amount of the reduction from 14 30 retirement allowances required under this subsection has not 14 31 been paid, the remaining amounts shall be deducted from the 14 32 payments made, if any, to the member's designated beneficiary 14 33 or contingent annuitant. If the member has selected an option 14 34 under which remaining payments are not required or the 14 35 remaining payments are insufficient to satisfy the full amount 15 1 of the reduction from retirement allowances required under 15 2 this subsection, the amount still unpaid shall be a claim 15 3 against the member's estate. 15 4 Sec. 26. Section 97B.48A, subsection 4, Code 1995, is 15 5 amended to read as follows: 15 6 4. The department shall pay to the member the accumulated 15 7 contributions of the member and to the employer the employer 15 8 contributions, plustwo percentinterest plus interest 15 9 dividends as provided in section 97B.70, for all completed 15 10 calendar years, compoundedannuallyas provided in section 15 11 97B.70, on the covered wages earned by a retired member that 15 12 are not used in the recalculation of the retirement allowance 15 13 of a member. 15 14 Sec. 27. Section 97B.49, subsection 4, Code Supplement 15 15 1995, is amended by adding the following new unnumbered 15 16 paragraph: 15 17 NEW UNNUMBERED PARAGRAPH. Effective January 1, 1997, for 15 18 members who retired on or after July 1, 1953, and before July 15 19 1, 1990, with at least ten years of prior and membership 15 20 service, the minimum monthly benefit payable at the normal 15 21 retirement date for prior and membership service shall be two 15 22 hundred dollars. The minimum monthly benefit payable shall be 15 23 increased by ten dollars for each year of prior and membership 15 24 service beyond ten years, up to a maximum of twenty additional 15 25 years of prior and membership service. If benefits commenced 15 26 on an early retirement date, the amount of the benefit shall 15 27 be reduced in accordance with section 97B.50. If an optional 15 28 allowance was selected under section 97B.51, the amount 15 29 payable shall be the actuarial equivalent of the minimum 15 30 benefit. 15 31 Sec. 28. Section 97B.49, subsection 5, paragraph b, Code 15 32 Supplement 1995, is amended to read as follows: 15 33 b. For each active or inactive vested member retiring on 15 34 or after July 1, 1990, with four or more complete years of 15 35 service, a monthly benefit shall be computed which is equal to 16 1 one-twelfth of an amount equal tofifty-two percentthe 16 2 applicable percentage multiplier of the three-year average 16 3 covered wage multiplied by a fraction of years of service. 16 4 The applicable percentage multiplier shall be the following: 16 5 (1) For active or inactive vested members retiring on or 16 6 after July 1, 1990, but before July 1, 1991, fifty-two 16 7 percent. 16 8 (2) For active or inactive vested members retiring on or 16 9 after July 1, 1991, but before July 1, 1992, fifty-four 16 10 percent. 16 11 (3) For active or inactive vested members retiring on or 16 12 after July 1, 1992, but before July 1, 1993, fifty-six 16 13 percent. 16 14 (4) For active or inactive vested members retiring on or 16 15 after July 1, 1993, but before July 1, 1994, fifty-seven and 16 16 four-tenths percent. 16 17 (5) For active or inactive vested members retiring on or 16 18 after July 1, 1994, sixty percent. 16 19Commencing July 1, 1991, the department shall increase the16 20percentage multiplier of the three-year average covered wage16 21by an additional two percent each July 1 until reaching sixty16 22percent of the three-year average covered wage if the annual16 23actuarial valuation of the retirement system indicates for16 24that year that the cost of this increase in the percentage of16 25the three-year average covered wage used in computing16 26retirement benefits can be absorbed within the employer and16 27employee contribution rates in effect under section 97B.11.16 28However, commencing July 1, 1994, if the annual actuarial16 29valuation of the retirement system indicates that the employer16 30and employee contribution rates in effect under section 97B.1116 31can absorb an increase in the percentage multiplier in excess16 32of two percent, the department shall increase the percentage16 33multiplier for that year beyond two percent to the extent16 34which the increase can be absorbed by the contribution rates16 35in effect, not to exceed a maximum percentage multiplier of17 1sixty percent. The increase in the percentage multiplier for17 2a year applies only to the members retiring on or after July 117 3of the respective year.17 4If the annual actuarial valuation of the retirement system17 5in any year indicates that the full cost of the increase17 6provided under this paragraph cannot be absorbed within the17 7employer and employee contribution rates in effect under17 8section 97B.11, the department shall reduce the increase to a17 9level which the department determines can be so absorbed.17 10 Notwithstanding any other provision of this chapter 17 11 providing for the payment of the benefits provided in 17 12 subsection 16, the department shallestablishapply the 17 13 percentage multiplier which applies to members covered under 17 14 subsection 16 at the same level as is established under this 17 15 subsection for other members of the system. 17 16By November 15, 1995, the department shall set aside from17 17other moneys in the retirement fund three million eight17 18hundred sixty thousand dollars. The moneys set aside shall be17 19from the funds generated by the employer and employee17 20contributions in effect under section 97B.11 that exceed the17 21amount necessary to fund the system's existing liabilities, as17 22determined in the annual actuarial valuation of the system as17 23of June 30, 1995. If the annual actuarial valuation indicates17 24that the amount of the employer and employee contributions in17 25excess of the amount necessary to fund existing liabilities is17 26less than three million eight hundred sixty thousand dollars,17 27the department shall set aside all funds that are available.17 28The funds set aside shall not be used in determining the17 29covered wage limitation pursuant to section 97B.41, subsection17 3020, paragraph "b", subparagraph (11), on January 1, 1996.17 31However, any funds set aside which are not specifically17 32dedicated to a purpose by the Seventy-sixth General Assembly17 33shall be used in determining the covered wage limitation17 34thereafter.17 35In accordance with sections 97D.1 and 97D.4, it is the18 1intent of the general assembly that once the goal of sixty18 2percent of the three-year average covered wage is attained for18 3a percentage multiplier, the department shall submit to the18 4public retirement systems committee a plan for future benefit18 5enhancements. This plan shall include, but is not limited to,18 6continuation in the increase in the covered wage ceiling until18 7reaching fifty-five thousand dollars for a calendar year,18 8providing for annual adjustments in the annual dividends paid18 9to retired members as provided in section 97B.49, subsection18 1013, and providing for the indexing of terminated vested18 11members' earned benefits at a rate of three percent per year18 12calculated from the date of termination from covered18 13employment until the date of retirement.18 14 Sec. 29. Section 97B.49, subsection 5, Code Supplement 18 15 1995, is amended by adding the following new paragraph: 18 16 NEW PARAGRAPH. e. Notwithstanding any other provisions of 18 17 this section to the contrary, for members retiring on or after 18 18 July 1, 1997, and whose three-year average covered wage 18 19 exceeds fifty-five thousand dollars, the monthly benefit shall 18 20 be calculated by multiplying the sum of the following amounts 18 21 by the fractions of years of service for that member. 18 22 (1) For the first fifty-five thousand dollars of the 18 23 member's three-year average covered wage, one-twelfth of an 18 24 amount equal to the applicable percentage multiplier otherwise 18 25 provided in this subsection multiplied by fifty-five thousand 18 26 dollars. 18 27 (2) For that portion of a member's three-year average 18 28 covered wage that exceeds fifty-five thousand dollars but is 18 29 less than or equal to sixty-five thousand dollars, one-twelfth 18 30 of an amount equal to the applicable percentage multiplier 18 31 otherwise provided in this subsection, reduced by ten 18 32 percentage points, multiplied by that portion. 18 33 (3) For that portion of a member's three-year average 18 34 covered wage that exceeds sixty-five thousand dollars but is 18 35 less than or equal to seventy-five thousand dollars, one- 19 1 twelfth of an amount equal to the applicable percentage 19 2 multiplier otherwise provided in this subsection, reduced by 19 3 fifteen percentage points, multiplied by that portion. 19 4 (4) For that portion of a member's three-year average 19 5 covered wage that exceeds seventy-five thousand dollars but is 19 6 less than or equal to eighty-five thousand dollars, one- 19 7 twelfth of an amount equal to the applicable percentage 19 8 multiplier otherwise provided in this subsection, reduced by 19 9 twenty percentage points, multiplied by that portion. 19 10 (5) For that portion of a member's three-year average 19 11 covered wage that exceeds eighty-five thousand dollars but is 19 12 less than or equal to ninety-five thousand dollars, one- 19 13 twelfth of an amount equal to the applicable percentage 19 14 multiplier otherwise provided in this subsection, reduced by 19 15 thirty percentage points, multiplied by that portion. 19 16 (6) For that portion of a member's three-year average 19 17 covered wage that exceeds ninety-five thousand dollars, one- 19 18 twelfth of an amount equal to the applicable percentage 19 19 multiplier otherwise provided in this subsection, reduced by 19 20 forty percentage points, multiplied by that portion. 19 21 The covered wage categories referred to in subparagraphs 19 22 (1) through (6) of this paragraph and the fifty-five thousand 19 23 dollar amount otherwise specified in this paragraph shall be 19 24 increased by the department for each calendar year, beginning 19 25 January 1, 1998, by an amount that represents the percentage 19 26 increase in the consumer price index during the previous 19 27 calendar year, as published annually in the federal register 19 28 by the federal department of labor, bureau of labor 19 29 statistics. 19 30 Sec. 30. Section 97B.49, subsection 13, Code Supplement 19 31 1995, is amended to read as follows: 19 32 13. a. A member who retired from the system between 19 33 January 1, 1976, and June 30, 1982, or a contingent annuitant 19 34 or beneficiary of such a member, shall receive with the 19 35 November19941996 and the November19951997 monthly benefit 20 1 payments a retirement dividend equal toonetwo hundred 20 2eighty-onetwenty-three percent of the monthly benefit payment 20 3 the member received for the preceding June, or the most 20 4 recently received benefit payment, whichever is greater. The 20 5 retirement dividend does not affect the amount of a monthly 20 6 benefit payment. 20 7 b. Each member who retired from the system between July 4, 20 8 1953, and December 31, 1975, or a contingent annuitant or 20 9 beneficiary of such a member, shall receive with the November 20 1019941996 and the November19951997 monthly benefit payments 20 11 a retirement dividend equal to two hundredthirty-sixninety- 20 12 two percent of the monthly benefit payment the member received 20 13 for the preceding June, or the most recently received benefit 20 14 payment, whichever is greater. The retirement dividend does 20 15 not affect the amount of a monthly benefit payment. 20 16 c. Notwithstanding the determination of the amount of a 20 17 retirement dividend under paragraph "a", "b", "d", or "f", a 20 18 retirement dividend shall not be less than twenty-five 20 19 dollars. 20 20 d. A member who retired from the system between July 1, 20 21 1982, and June 30, 1986, or a contingent annuitant or 20 22 beneficiary of such a member, shall receive with the November 20 2319941996 and the November19951997 monthly benefit payments 20 24 a retirement dividend equal toforty-nineseventy-four percent 20 25 of the monthly benefit payment the member received for the 20 26 preceding June, or the most recently received benefit payment, 20 27 whichever is greater. The retirement dividend does not affect 20 28 the amount of a monthly benefit payment. 20 29 e. If the member dies on or after July 1 of the dividend 20 30 year but before the payment date, the full amount of the 20 31 retirement dividend for that year shall be paidto the20 32designated beneficiaryto the member's account, upon 20 33 notification of the member's death.If there is no20 34beneficiary designated by the member, the department shall pay20 35the dividend to the member's estate. The beneficiary, or the21 1representative of the member's estate, must apply for the21 2dividend within two years after the dividend is payable or the21 3dividend is forfeited.21 4 f. A member who retired from the system between July 1, 21 5 1986, and June 30, 1990, or a contingent annuitant or 21 6 beneficiary of such a member, shall receive with the November 21 7 1996 and the November 1997 monthly benefit payments a 21 8 retirement dividendin an amount determined by the general21 9assemblyequal to twenty-four percent of the monthly benefit 21 10 payment the member received for the preceding June, or the 21 11 most recently received benefit payment, whichever is greater. 21 12 The retirement dividend does not affect the amount of a 21 13 monthly benefit payment. 21 14 Sec. 31. Section 97B.49, subsection 16, paragraph e, Code 21 15 Supplement 1995, is amended to read as follows: 21 16 e. Annually, the department of personnel shall actuarially 21 17 determine the cost of the additional benefits provided for 21 18 members covered under paragraph "a" and the cost of the 21 19 additional benefits provided for members covered under 21 20 paragraph "b" as percents of the covered wages of the 21 21 employees covered by this subsection. Sixty percent of the 21 22 cost shall be paid by the employers of employees covered under 21 23 this subsection and forty percent of the cost shall be paid by 21 24 the employees. The employer and employee contributions 21 25 required under this paragraph are in addition to the 21 26 contributions paid undersectionsections 97B.11 and 97B.11A. 21 27 Sec. 32. Section 97B.49, subsection 16, Code Supplement 21 28 1995, is amended by adding the following new paragraph: 21 29 NEW PARAGRAPH. m. For the fiscal year commencing July 1, 21 30 1992, and each succeeding fiscal year, the department of 21 31 public safety shall pay to the department of personnel from 21 32 funds appropriated to the department of public safety, the 21 33 amount necessary to pay the employer share of the cost of the 21 34 additional benefits provided to a fire prevention inspector 21 35 peace officer pursuant to paragraph "d", subparagraph (8). 22 1 Sec. 33. Section 97B.51, subsection 3, Code Supplement 22 2 1995, is amended to read as follows: 22 3 3. A member who had elected to take the option stated in 22 4 subsection 1 of this section may, at any time prior to 22 5 retirement, revoke such an election by written notice to the 22 6 department. A member shall not change or revoke an election 22 7 once the first retirement allowance is paid. 22 8 Sec. 34. Section 97B.51, subsection 5, Code Supplement 22 9 1995, is amended to read as follows: 22 10 5. At retirement, a member may designate that upon the 22 11 member's death, a specified amount of money shall be paid to a 22 12 named beneficiary, and the member's monthly retirement 22 13 allowance shall be reduced by an actuarially determined amount 22 14 to provide for the lump sum payment. The amount designated by 22 15 the member must be in thousand dollar increments, and theand 22 16 shall be limited to the amount of the member's accumulated 22 17 contributions. The amount designated shall not lower the 22 18 monthly retirement allowance of the member by more than one- 22 19 half the amount payable under section 97B.49, subsection 1 or 22 20 5. A member may designate a different beneficiary if the 22 21 original named beneficiary predeceases the member. 22 22 Sec. 35. Section 97B.51, subsection 6, Code Supplement 22 23 1995, is amended to read as follows: 22 24 6. A member may elect to receive a decreased retirement 22 25 allowance during the member's lifetime with provision that in 22 26 event of the member's death during the first one hundred 22 27 twenty months of retirement, monthly payments of the member's 22 28 decreased retirement allowance shall be made to the member's 22 29 beneficiary until a combined total of one hundred twenty 22 30 monthly payments have been made to the member and the member's 22 31 beneficiary. When the member designates multiple 22 32 beneficiaries, the present value of the remaining payments 22 33 shall be paid in a lump sum to each beneficiary, either in 22 34 equal shares to the beneficiaries, or if the member specifies 22 35 otherwise in a written request, in the specified proportion. 23 1 A member may designate a different beneficiary if the original 23 2 named beneficiary predeceases the member. 23 3 Sec. 36. Section 97B.52, subsection 3, paragraph b, Code 23 4 Supplement 1995, is amended to read as follows: 23 5 b. If a death benefit is due and payable, interest shall 23 6 continue to accumulate through the month preceding the month 23 7 in which payment is made to the designated beneficiary, heirs 23 8 at law, or the estate unless the payment of the death benefit 23 9 is delayed because of a dispute between alleged heirs, in 23 10 which case the benefit due and payable shall be placed in a 23 11 noninterest bearing escrow account until the beneficiary is 23 12 determined in accordance with this section. In order to 23 13 receive the death benefit, the beneficiary, heirs at law, or 23 14 the estate, or any other third-party payee, must apply to the 23 15 department withintwofive years of the member's death. 23 16 The department shall reinstate a designated beneficiary's 23 17 right to receive a death benefit beyond the five-year 23 18 limitation if the designated beneficiary was the member's 23 19 spouse at the time of the member's death and the distribution 23 20 is required or permitted pursuant to Internal Revenue Code 23 21 section 401(a)(9) and the applicable treasury regulations. 23 22 Sec. 37. Section 97B.52, subsection 5, Code Supplement 23 23 1995, is amended to read as follows: 23 24 5. Following written notification to the department, a 23 25 beneficiary of a deceased member may waive current and future 23 26 rights to payments to which the beneficiary would otherwise be 23 27 entitled under sections 97B.51 and this section. Upon receipt 23 28 of the waiver, the department shall payto the estate of the23 29deceased memberthe amount designated to be received bythe23 30 that beneficiary to the member's other surviving beneficiary 23 31 or beneficiaries or to the estate of the deceased member, as 23 32 elected by the beneficiary in the waiver. If the payments 23 33 being waived are payable to the member's estate and an estate 23 34 is not probated, the payments shall be paid to the deceased 23 35 member's surviving spouse, or if there is no surviving spouse, 24 1 to the member's heirs other than the beneficiary who waived 24 2 the payments. 24 3 Sec. 38. Section 97B.52A, Code Supplement 1995, is amended 24 4 by adding the following new subsection: 24 5 NEW SUBSECTION. 3. A member who terminates covered 24 6 employment but maintains an employment relationship with an 24 7 employer that made contributions to the system on the member's 24 8 behalf does not have a bona fide retirement until all 24 9 employment, including employment which is not covered by this 24 10 chapter, with such employer is terminated for at least thirty 24 11 days. In order to receive retirement benefits, the member 24 12 must file a completed application for benefits form with the 24 13 department before returning to any employment with the same 24 14 employer. 24 15 Sec. 39. Section 97B.53, subsection 3, Code Supplement 24 16 1995, is amended to read as follows: 24 17 3. The accumulated contributions of a terminated, vested 24 18 member shall be credited with interest, including interest 24 19 dividends, in the manner provided in section 97B.70. Interest 24 20 and interest dividends shall be credited to the accumulated 24 21 contributions of members who terminate service and 24 22 subsequently become vested in accordance with section 97B.70. 24 23However, the department shall not implement the amendments to24 24this subsection or to subsection 6, unnumbered paragraph 1, or24 25to subsection 7, as enacted in 1994 Iowa Acts, chapter 1183,24 26unless and until the department determines that the most24 27recent annual actuarial valuation of the retirement system24 28indicates that the employer and employee contribution rates in24 29effect under section 97B.11 can absorb the amendments to these24 30provisions of this section and the amendments to section24 3197B.41, subsection 12, and section 97B.70, by enacting a new24 32subsection 4, contained in 1994 Iowa Acts, chapter 1183, after24 33meeting the other established priorities of the system, as24 34defined in section 97B.41, subsection 12. Until the24 35amendments are implemented, the department shall continue to25 1implement the provisions of section 97B.53, subsections 3 and25 27, and section 97B.53, subsection 6, unnumbered paragraph 1,25 31993 Code of Iowa.25 4 Sec. 40. Section 97B.53B, subsection 1, paragraph c, 25 5 subparagraph (4), Code 1995, is amended to read as follows: 25 6 (4)A distributionAnnual distributions of less than two 25 7 hundred dollars of taxable income. 25 8 Sec. 41. Section 97B.66, unnumbered paragraph 1, Code 25 9 Supplement 1995, is amended to read as follows: 25 10 A vested or retired member who was a member of the teachers 25 11 insurance and annuity association-college retirement equity 25 12 fund at any time between July 1, 1967 and June 30, 1971 and 25 13 who became a member of the system on July 1, 1971, upon 25 14 submitting verification of service and wages earned during the 25 15 applicable period of service under the teachers insurance and 25 16 annuity association-college retirement equity fund, may make 25 17 employer and employee contributions to the system based upon 25 18 the covered wages of the member and the covered wages and the 25 19 contribution rates in effect for all or a portion of that 25 20 period of service and receive credit for membership service 25 21 under this system equivalent to the applicable period of 25 22 membership service in the teachers insurance and annuity 25 23 association-college retirement equity fund for which the 25 24 contributions have been made. In addition, a member making 25 25 employer and employee contributions because of membership in 25 26 the teachers insurance and annuity association-college 25 27 retirement equity fund under this section who was a member of 25 28 the system on June 30, 1967 and withdrew the member's 25 29 accumulated contributions because of membership on July 1, 25 30 1967 in the teachers insurance and annuity association-college 25 31 retirement equity fund, may make employee contributions to the 25 32 system for all or a portion of the period of service under the 25 33 system prior to July 1, 1967. A member making contributions 25 34 pursuant to this section may make the contributions either for 25 35 the entire applicable period of service, or, effective upon26 1the date that the department determines that the amendments to26 2this paragraph and unnumbered paragraph 2 contained in 199426 3Iowa Acts, chapter 1183, shall be implemented,for portions of 26 4 the period of service, and if contributions are made for 26 5 portions of the period of service, the contributions shall be 26 6 in increments of one or moreyears, as long as the increments26 7represent full years and not a portion of a yearcalendar 26 8 quarters.However, the department shall not implement the26 9amendments to this paragraph or unnumbered paragraph 2, as26 10enacted in 1994 Iowa Acts, chapter 1183, unless and until the26 11department determines that the most recent annual actuarial26 12valuation of the retirement system indicates that the employer26 13and employee contribution rates in effect under section 97B.1126 14can absorb the amendments to this paragraph and unnumbered26 15paragraph 2 and to section 97B.72, unnumbered paragraphs 1 and26 162, section 97B.72A, subsection 1, unnumbered paragraph 1,26 17section 97B.73A, unnumbered paragraph 1, and section 97B.74,26 18unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,26 19chapter 1183, after meeting the other established priority of26 20the system. Until the amendments are implemented, the26 21department shall continue to implement the provisions of26 22section 97B.66, unnumbered paragraphs 1 and 2, Code Supplement26 231993. As used in this section, unless the context otherwise26 24requires, "other established priority of the system" means26 25that commencing January 1 following the most recent annual26 26actuarial valuation of the system, the department has26 27increased the covered wage limitation from the previous year26 28by three thousand dollars, in accordance with section 97B.41,26 29subsection 20, paragraph "b", subparagraph (11).26 30 Sec. 42. Section 97B.66, unnumbered paragraph 2, Code 26 31 Supplement 1995, is amended to read as follows: 26 32 The contributions paid by the vested or retired member 26 33 shall be equal to the accumulated contributions as defined in 26 34 section 97B.41, subsection 2, by the member for the applicable 26 35 period of service, and the employer contribution for the 27 1 applicable period of service under the teachers insurance and 27 2 annuity association-college retirement equity fund, that would 27 3 have been or had been contributed by the vested or retired 27 4 member and the employer, if applicable, plus interest on the 27 5 contributions that would have accrued for the applicable 27 6 period from the date the previous applicable period of service 27 7 commenced under this system or from the date the service of 27 8 the member in the teachers insurance and annuity association- 27 9 college retirement equity fund commenced to the date of 27 10 payment of the contributions by the memberequal to two27 11percent plus the interest dividend rate applicable for each27 12yearas provided in section 97B.70. 27 13 Sec. 43. Section 97B.68, subsection 1, Code 1995, is 27 14 amended to read as follows: 27 15 1. Effective July 1,19881996, a person who is a member 27 16 of the federal civil service retirement program or the federal 27 17 employee's retirement system is not eligible for membership in 27 18 the Iowa public employees' retirement system for the same 27 19 position, and this chapter does not apply to that employee. 27 20 An employee whose membership in the federal civil service 27 21 retirement program or the federal employee's retirement system 27 22 is subsequently terminated shall immediately notify the 27 23 employee's employer and the department of personnel of that 27 24 fact, and the employee shall become subject to this chapter on 27 25 the date the notification is received by the department. 27 26 Sec. 44. Section 97B.68, Code 1995, is amended by adding 27 27 the following new subsection: 27 28 NEW SUBSECTION. 3. Effective July 1, 1996, an employee 27 29 who participates in the federal civil service retirement 27 30 program or the federal employee's retirement system may be 27 31 covered under this chapter if otherwise eligible. The 27 32 employee shall not be covered under this chapter, however, 27 33 unless the employee is not credited for service in the federal 27 34 civil service retirement system or the federal employee's 27 35 retirement system for the position to be covered under this 28 1 chapter. This subsection shall not be construed to permit any 28 2 employer to contribute on behalf of an employee for the same 28 3 position and the same period of service to both the Iowa 28 4 public employees' retirement system and either the federal 28 5 civil service retirement program or the federal employee's 28 6 retirement system. 28 7 Sec. 45. Section 97B.70, Code Supplement 1995, is amended 28 8 to read as follows: 28 9 97B.70 INTEREST AND DIVIDENDS TO MEMBERS. 28 10 1.InterestFor calendar years prior to January 1, 1997, 28 11 interest at two percent per annum and interest dividends 28 12 declared by the department shall be credited to the member's 28 13 contributions and the employer's contributions to become part 28 14 of the accumulated contributions thereby. 28 151.a. The average rate of interest earned shall be 28 16 determined upon the following basis: 28 17a.(1) Investment income shall include interest and cash 28 18 dividends on stock. 28 19b.(2) Investment income shall be accounted for on an 28 20 accrual basis. 28 21c.(3) Capital gains and losses, realized or unrealized, 28 22 shall not be included in investment income. 28 23d.(4) Mean assets shall include fixed income investments 28 24 valued at cost or on an amortized basis, and common stocks at 28 25 market values or cost, whichever is lower. 28 26e.(5) The average rate of earned interest shall be the 28 27 quotient of the investment income and the mean assets of the 28 28 retirement fund. 28 292.b. The interest dividend shall be determined within 28 30 sixty days after the end of each calendar year as follows: 28 31 The dividend rate for a calendar year shall be the excess 28 32 of the average rate of interest earned for the year over the 28 33 statutory two percent rate plus twenty-five hundredths of one 28 34 percent. The average rate of interest earned and the interest 28 35 dividend rate in percent shall be calculated to the nearest 29 1 one hundredth, that is, to two decimal places. Interest and 29 2 interest dividends calculated pursuant to this subsection 29 3 shall be compounded annually. 29 4 2. For calendar years beginning January 1, 1997, a per 29 5 annum interest rate at one percent above the interest rate on 29 6 one-year certificates of deposit shall be credited to the 29 7 member's contributions and the employer's contributions to 29 8 become part of the accumulated contributions. For purposes of 29 9 this subsection, the interest rate on one-year certificates of 29 10 deposit shall be determined by the department based on the 29 11 average rate for such certificates of deposit as of January 10 29 12 of each year as published in a publication of general 29 13 acceptance in the business community. The per annum interest 29 14 rate shall be credited on a quarterly basis by applying one- 29 15 quarter of the annual interest rate to the sum of the 29 16 accumulated contributions as of the end of the previous 29 17 calendar quarter. 29 18 3. Interest and interest dividends shall be credited to 29 19 the contributions of active members and inactive vested 29 20 members until the first of the month coinciding with or next 29 21 following the member's retirement date. 29 22 4.Effective upon the date that the department determines29 23that this subsection shall be implemented, interestInterest 29 24 and interest dividends shall be credited to the contributions 29 25 of a person who leaves the contributions in the retirement 29 26 fund upon termination from covered employment prior to 29 27 achieving vested status, but who subsequently achieves vested 29 28 status. The interest and interest dividends shall be credited 29 29 to the contributions commencingeitheruponthe date that the29 30department determines that this subsection shall be29 31implemented, orthe date on which the person becomes a vested 29 32 member, whichever is later. Interest and interest dividends 29 33 shall cease upon the first of the month coinciding with or 29 34 next following the person's retirement date. If the 29 35 department no longer maintains the accumulated contribution 30 1 account of the person pursuant to section 97B.53, but the 30 2 person submits satisfactory proof to the department that the 30 3 person did make the contributions, the department shall credit 30 4 interest and interest dividends in the manner provided in this 30 5 subsection.However, the department shall not implement this30 6subsection, unless and until the department determines that30 7the most recent annual actuarial valuation of the retirement30 8system indicates that the employer and employee contribution30 9rates in effect under section 97B.11 can absorb the enactment30 10of this subsection and the amendments to section 97B.41,30 11subsection 12, section 97B.53, subsections 3 and 7, and30 12section 97B.53, subsection 6, unnumbered paragraph 1,30 13contained in 1994 Iowa Acts, chapter 1183, after meeting the30 14other established priorities of the system, as defined in30 15section 97B.41, subsection 12.30 16 Sec. 46. Section 97B.72, unnumbered paragraphs 1 and 2, 30 17 Code Supplement 1995, are amended to read as follows: 30 18 Persons who are members of the Seventy-first General 30 19 Assembly or a succeeding general assembly who submit proof to 30 20 the department of membership in the general assembly during 30 21 any period beginning July 4, 1953, may make contributions to 30 22 the system for all or a portion of the period of service in 30 23 the general assembly, and receive credit for the applicable 30 24 period for which contributions are made. The contributions 30 25 made by the member shall be equal to the accumulated 30 26 contributions as defined in section 97B.41, subsection 2, 30 27 which would have been made if the member of the general 30 28 assembly had been a member of the system during the applicable 30 29 period. The proof of membership in the general assembly and 30 30 payment of accumulated contributions shall be transmitted to 30 31 the department. A member making contributions pursuant to 30 32 this section may make the contributions either for the entire 30 33 applicable period of service, or, effective upon the date that30 34the department determines that the amendments to this30 35paragraph and unnumbered paragraph 2 contained in 1994 Iowa31 1Acts, chapter 1183, shall be implemented,for portions of the 31 2 period of service, and if contributions are made for portions 31 3 of the period of service, the contributions shall be in 31 4 increments of one or moreyears, as long as the increments31 5represent full years and not a portion of a yearcalendar 31 6 quarters.However, the department shall not implement the31 7amendments to this paragraph or unnumbered paragraph 2, as31 8enacted in 1994 Iowa Acts, chapter 1183, unless and until the31 9department determines that the most recent annual actuarial31 10valuation of the retirement system indicates that the employer31 11and employee contribution rates in effect under section 97B.1131 12can absorb the amendments to this paragraph and unnumbered31 13paragraph 2 and to section 97B.66, unnumbered paragraphs 1 and31 142, section 97B.72A, subsection 1, unnumbered paragraph 1,31 15section 97B.73A, unnumbered paragraph 1, and section 97B.74,31 16unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,31 17chapter 1183, after meeting the other established priority of31 18the system, as defined in section 97B.66. Until the31 19amendments are implemented, the department shall continue to31 20implement the provisions of section 97B.72, unnumbered31 21paragraphs 1 and 2, Code Supplement 1993.31 22 There is appropriated from moneys available to the general 31 23 assembly under section 2.12 an amount sufficient to pay the 31 24 contributions of the employer based on the period of service 31 25 for which the members have paid accumulated contributions in 31 26 an amount equal to the contributions which would have been 31 27 made if the members of the general assembly who made employee 31 28 contributions had been members of the system during the 31 29 applicable period of service in the general assembly plustwo31 30percentinterestplusand interest dividends at the rate 31 31 provided in section 97B.70 for all completed calendar years, 31 32 and for any completed calendar year for which the interest 31 33 dividend has not been declared and for completed months of 31 34 partially completed calendar yearsat two percent interest31 35plus the interest dividend rate calculated for the previous32 1year, compoundedannually, from the end of the calendar year32 2in which contribution was made to the first day of the month32 3of such dateas provided in section 97B.70. 32 4 Sec. 47. Section 97B.72A, subsection 1, Code Supplement 32 5 1995, is amended to read as follows: 32 6 1.An active orA vested or retired member of the system 32 7 who was a member of the general assembly prior to July 1, 32 8 1988, may make contributions to the system for all or a 32 9 portion of the period of service in the general assembly. The 32 10 contributions made by the member shall be equal to the 32 11 accumulated contributions as defined in section 97B.41, 32 12 subsection 2, which would have been made if the member of the 32 13 general assembly had been a member of the system during the 32 14 applicable period of service in the general assembly. A 32 15 member making contributions pursuant to this section may make 32 16 the contributions either for the entire applicable period of 32 17 service, or for portions of the period of service, and,32 18effective upon the date that the department determines that32 19the amendments to this paragraph contained in 1994 Iowa Acts,32 20chapter 1183, shall be implemented,if contributions are made 32 21 for portions of the period of service, the contributions shall 32 22 be in increments of one or moreyears, as long as the32 23increments represent full years and not a portion of a year32 24 calendar quarters. The member of the system shall submit 32 25 proof to the department of membership in the general assembly. 32 26 The department shall credit the member with the period of 32 27 membership service for which contributions are made.However,32 28the department shall not implement the amendments to this32 29paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless32 30and until the department determines that the most recent32 31annual actuarial valuation of the retirement system indicates32 32that the employer and employee contribution rates in effect32 33under section 97B.11 can absorb the amendments to this32 34paragraph and to section 97B.66, unnumbered paragraphs 1 and32 352, section 97B.72, unnumbered paragraphs 1 and 2, section33 197B.73A, unnumbered paragraph 1, and section 97B.74,33 2unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,33 3chapter 1183, after meeting the other established priority of33 4the system, as defined in section 97B.66. Until the33 5amendments are implemented, the department shall continue to33 6implement the provisions of section 97B.72A, subsection 1,33 7unnumbered paragraph 1, Code Supplement 1993.33 8 There is appropriated from the general fund of the state to 33 9 the department an amount sufficient to pay the contributions 33 10 of the employer based on the period of service of members of 33 11 the general assembly for which the member paid accumulated 33 12 contributions under this section. The amount appropriated is 33 13 equal to the employer contributions which would have been made 33 14 if the members of the system who made employee contributions 33 15 had been members of the system during the period for which 33 16 they made employee contributions plustwo percentinterest 33 17plus the interest dividend rate applicableat the rate 33 18 provided in section 97B.70 for each year compoundedannually33 19 as provided in section 97B.70. 33 20 Sec. 48. Section 97B.73, unnumbered paragraph 1, Code 33 21 1995, is amended to read as follows: 33 22 A vested or retired member who was in public employment 33 23 comparable to employment covered under this chapter in another 33 24 state or in the federal government, or who was a member of 33 25 another public retirement system in this state, including but 33 26 not limited to the teachers insurance annuity association- 33 27 college retirement equities fund, but who was not retired 33 28 under that system, upon submitting verification of membership 33 29 and service in the other public system to the department, 33 30 including proof that the member has no further claim upon a 33 31 retirement benefit from that other public system, may make 33 32 employer and employee contributions to the system either for 33 33 the entire period of service in the other public system, or 33 34 for partial service in the other public system in increments 33 35 of one or moreyears, as long as the increments represent full34 1years and not a portion of a yearcalendar quarters.The34 2member may also make one lump sum contribution to the system34 3which represents the entire period of service in the other34 4public system, even if the period of time exceeds one year or34 5includes a portion of a year.If the member wishes to 34 6 transfer only a portion of the service value of another public 34 7 system to this system and the other public system allows a 34 8 partial withdrawal of a member's system credits, the member 34 9 shall receive credit for membership service in this system 34 10 equivalent to thenumber of yearsperiod of service 34 11 transferred from the other public system. The contribution 34 12 payable shall be based upon the member's covered wages for the 34 13 most recent full calendar year at the applicable rates in 34 14 effect for that calendar year under sections 97B.11 and 97B.49 34 15 and multiplied by the member's years of service in other 34 16 public employment. If the member's most recent covered wages 34 17 were earned prior to the most recent calendar year, the 34 18 member's covered wages shall be adjusted by the department by 34 19 an inflation factor to reflect changes in the economy since 34 20 the covered wages were earned. 34 21 Sec. 49. Section 97B.73A, unnumbered paragraph 1, Code 34 22 Supplement 1995, is amended to read as follows: 34 23 A part-time county attorney may elect in writing to the 34 24 department to make employee contributions to the system for 34 25 the county attorney's previous service as a county attorney 34 26 and receive credit for membership service in the system for 34 27 the applicable period of service as a part-time county 34 28 attorney for which employee contributions are made. The 34 29 contributions paid by the member shall be equal to the 34 30 accumulated contributions, as defined in section 97B.41, 34 31 subsection 2, for the applicable period of membership service. 34 32 A member making contributions pursuant to this section may 34 33 make the contributions either for the entire applicable period 34 34 of service, or, effective upon the date that the department34 35determines that the amendments to this paragraph contained in35 11994 Iowa Acts, chapter 1183, shall be implemented,for 35 2 portions of the period of service, and if contributions are 35 3 made for portions of the period of service, the contributions 35 4 shall be in increments of one or moreyears, as long as the35 5increments represent full years and not a portion of a year35 6 calendar quarters. A member who elects to make contributions 35 7 under this section shall notify the applicable county board of 35 8 supervisors of the member's election, and the county board of 35 9 supervisors shall pay to the department the employer 35 10 contributions that would have been contributed by the employer 35 11 under section 97B.11 plus interest on the contributions that 35 12 would have accrued if the county attorney had been a member of 35 13 the system for the applicable period of service.However, the35 14department shall not implement the amendments to this35 15paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless35 16and until the department determines that the most recent35 17annual actuarial valuation of the retirement system indicates35 18that the employer and employee contribution rates in effect35 19under section 97B.11 can absorb the amendments to this35 20paragraph and to section 97B.66, unnumbered paragraphs 1 and35 212, section 97B.72, unnumbered paragraphs 1 and 2, section35 2297B.72A, subsection 1, unnumbered paragraph 1, and section35 2397B.74, unnumbered paragraphs 1 and 2, contained in 1994 Iowa35 24Acts, chapter 1183, after meeting the other established35 25priority of the system, as defined in section 97B.66. Until35 26the amendments are implemented, the department shall continue35 27to implement the provisions of section 97B.73A, unnumbered35 28paragraph 1, Code Supplement 1993.35 29 Sec. 50. Section 97B.74, unnumbered paragraphs 1 and 2, 35 30 Code Supplement 1995, are amended to read as follows: 35 31An active,A vested,or retired member who was a member of 35 32 the system at any time on or after July 4, 1953, and who 35 33 received a refund of the member's contributions for that 35 34 period of membership service, may elect in writing to the 35 35 department to make contributions to the system for all or a 36 1 portion of the period of membership service for which a refund 36 2 of contributions was made, and receive credit for the period 36 3 of membership service for which contributions are made. The 36 4 contributions repaid by the member for such service shall be 36 5 equal to the accumulated contributions, as defined in section 36 6 97B.41, subsection 2, received by the member for the 36 7 applicable period of membership service plus interest on the 36 8 accumulated contributions for the applicable period from the 36 9 date of receipt by the member to the date of repaymentequal36 10to two percent plusat the interestdividendrate provided in 36 11 section 97B.70 applicable for each year compoundedannuallyas 36 12 provided in section 97B.70. 36 13An active member must have at least one quarter's36 14reportable wages on file and have membership service,36 15including that period of membership service for which a refund36 16of contributions was made, sufficient to give the member36 17vested status.A member making contributions pursuant to this 36 18 section may make the contributions either for the entire 36 19 applicable period of service, or, effective upon the date that36 20the department determines that the amendments to this36 21paragraph and unnumbered paragraph 1 contained in 1994 Iowa36 22Acts, chapter 1183, shall be implemented,for portions of the 36 23 period of service, and if contributions are made for portions 36 24 of the period of service, the contributions shall be in 36 25 increments of one or moreyears, as long as the increments36 26represent full years and not a portion of a yearcalendar 36 27 quarters.However, the department shall not implement the36 28amendments to this paragraph or unnumbered paragraph 1, as36 29enacted in 1994 Iowa Acts, chapter 1183, unless and until the36 30department determines that the most recent annual actuarial36 31valuation of the retirement system indicates that the employer36 32and employee contribution rates in effect under section 97B.1136 33can absorb the amendments to this paragraph and to unnumbered36 34paragraph 1 and to section 97B.66, unnumbered paragraphs 1 and36 352, section 97B.72, unnumbered paragraphs 1 and 2, section37 197B.72A, subsection 1, unnumbered paragraph 1, and section37 297B.73A, unnumbered paragraph 1, contained in 1994 Iowa Acts,37 3chapter 1183, after meeting the other established priority of37 4the system, as defined in section 97B.66. Until the37 5amendments are implemented, the department shall continue to37 6implement the provisions of section 97B.74, unnumbered37 7paragraphs 1 and 2, Code Supplement 1993.37 8 Sec. 51. Section 97B.80, unnumbered paragraph 1, Code 37 9 1995, is amended to read as follows: 37 10 Effective July 1, 1992, a vested or retired member, who at 37 11 any time served on active duty in the armed forces of the 37 12 United States, upon submitting verification of the dates of 37 13 the active duty service, may make employer and employee 37 14 contributions to the system based upon the member's covered 37 15 wages for the most recent full calendar year in which the 37 16 member had reportable wages at the applicable rates in effect 37 17 for that year under sections 97B.11 and 97B.49, for all or a 37 18 portion of the period of time of the active duty service, in 37 19 increments ofno greater than one year and not less thanone 37 20 or more calendarquarterquarters, and receive credit for 37 21 membership service and prior service for the period of time 37 22 for which the contributions are made.However, the member may37 23not make contributions in an increment of less than one year37 24more than once. The member may also make one lump sum37 25contribution to the system which represents the period of time37 26of the active duty service, even if the period of time exceeds37 27one year.If the member's most recent covered wages were 37 28 earned prior to the most recent calendar year, the member's 37 29 covered wages shall be adjusted by the department by an 37 30 inflation factor to reflect changes in the economy. The 37 31 department shall adjust benefits for a six-month period prior 37 32 to the date the member pays contributions under this section 37 33 if the member is receiving a retirement allowance at the time 37 34 the contribution payment is made. Verification of active duty 37 35 service and payment of contributions shall be made to the 38 1 department. However, a member is not eligible to make 38 2 contributions under this section if the member is receiving, 38 3 is eligible to receive, or may in the future be eligible to 38 4 receive retirement pay from the United States government for 38 5 active duty in the armed forces, except for retirement pay 38 6 granted by the United States government under retired pay for 38 7 nonregular service (10 U.S.C. } 1331, et seq.). A member 38 8 receiving retired pay for nonregular service who makes 38 9 contributions under this section shall provide information 38 10 required by the department documenting time periods covered 38 11 under retired pay for nonregular service. 38 12 Sec. 52. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 38 13 The section of this Act which amends section 97B.49, 38 14 subsection 16, by enacting a new paragraph "m", being deemed 38 15 of immediate importance, takes effect upon enactment and 38 16 applies retroactively to July 1, 1992. 38 17 EXPLANATION 38 18 This bill provides numerous changes to the Iowa public 38 19 employees' retirement system. This bill may include a state 38 20 mandate as defined in section 25B.3. The state mandate 38 21 funding requirement in section 25B.2, however, does not apply 38 22 to public employee retirement systems. 38 23 The changes are as follows: 38 24 Section 97B.4 is amended to state that the department of 38 25 personnel shall comply with applicable federal and state laws. 38 26 Section 97B.7 is amended to provide that the department 38 27 follow the same standards in establishing investment policy as 38 28 are required in making particular investments for the fund. 38 29 Section 97B.11 is amended to provide that no contributions 38 30 shall be deducted from wages, and no membership service 38 31 credited, from a member whose contributions for any calendar 38 32 quarter would amount to one dollar or less. 38 33 Section 97B.14 is amended concerning which contributions 38 34 are forwarded to the department. The change references the 38 35 date established in section 97B.11A concerning the employer 39 1 pickup of employee contributions. 39 2 Section 97B.15 is amended to provide that the department 39 3 may adopt interim written policies and procedures to conform 39 4 the requirements of the retirement system with federal law 39 5 without complying with the rulemaking requirements of chapter 39 6 17A. 39 7 Section 97B.17 is amended to provide that the records 39 8 maintained by the department concerning IPERS members may be 39 9 stored on paper, in a magnetic format, or in electronic form, 39 10 including optical disk storage. 39 11 The section is also amended by adding a new paragraph 39 12 authorizing the department to release records to a 39 13 governmental entity for the purposes of civil or criminal law 39 14 enforcement activity. The section further provides that the 39 15 department is not liable for the release of records pursuant 39 16 to this new paragraph. 39 17 Section 97B.25 is amended to provide that a retirement 39 18 application shall not be amended or revoked by the member once 39 19 the first retirement allowance is paid and a member's death 39 20 during the member's first month of entitlement shall not 39 21 invalidate an approved application. 39 22 Section 97B.39 is amended to provide that a member's right 39 23 to payments under IPERS is subject to marital property orders. 39 24 This amendment further provides that a marital property order 39 25 shall not attempt to require payment prior to retirement or 39 26 mandate a member's right to select certain options upon 39 27 retirement. 39 28 Section 97B.41, concerning definitions, is amended. 39 29 Subsection 8, concerning the definition of employees under 39 30 IPERS, is amended to provide that certain university 39 31 instructors governed by the board of regents who work less 39 32 than half-time for a school year are considered temporary 39 33 employees and not covered by IPERS. Currently, this reference 39 34 applies to half-time community college instructors. 39 35 In addition, subsection 8 is amended to provide that 40 1 persons employed through programs provided through the Iowa 40 2 conservation corps under chapter 15 are not employees for 40 3 purposes of IPERS. 40 4 New subsection 10A provides that reference to the Internal 40 5 Revenue Code means the Internal Revenue Code as defined in 40 6 section 422.3. 40 7 Subsection 12, concerning the definition of membership 40 8 service, is amended to eliminate contingent language 40 9 concerning the implementation of certain amendments to this 40 10 subsection. 40 11 New subsection 14A defines retirement as the period of time 40 12 from when a member has survived into the first day of the 40 13 member's first month of entitlement until the member dies. 40 14 Subsection 15, concerning the definition of service, is 40 15 amended to provide that a leave of absence authorized pursuant 40 16 to the federal Family and Medical Leave Act is deemed to be a 40 17 leave authorized by the person's employer. 40 18 Subsection 18, concerning the definition of three-year 40 19 average covered wage is amended to provide that, for certain 40 20 members who retire between January 1, 1997, and December 31, 40 21 2002, the member's three-year average covered wage shall be 40 22 determined on the member's wages from four to seven years if 40 23 the member's three-year average covered wage exceeds a certain 40 24 dollar amount for the year the member decides to retire. 40 25 Subsection 20, concerning the definition of covered wages, 40 26 provides that, beginning January 1, 1997, the covered wage 40 27 limitation is eliminated subject to the amount permitted under 40 28 the Internal Revenue Code. Currently, the covered wage 40 29 limitation for 1996 is $44,000 and current law provides that 40 30 this amount will increase by $3,000 a year up to a maximum of 40 31 $55,000, provided that the actuarial valuation of the system 40 32 indicates that the increase can be absorbed within existing 40 33 contribution rates. 40 34 Section 97B.42 is amended to provide that an employee 40 35 ceases to be an active member of IPERS if the employee 41 1 receives service credit for service in another public 41 2 retirement system for the same position previously covered 41 3 under IPERS. Current law provides that an employee shall 41 4 cease to be an active member of IPERS upon joining another 41 5 public retirement system maintained by public contributions. 41 6 The bill adds similar language to a provision which currently 41 7 prohibits a person from being a member of another public 41 8 retirement system in the state and a member under IPERS. 41 9 Section 97B.42 is further amended to state that an employer 41 10 shall not make contributions on behalf of an employee to both 41 11 IPERS and any other public retirement system in the state 41 12 which is supported by public contributions. Current law 41 13 provides that a person in public employment shall not be an 41 14 active member of both IPERS and any other public retirement 41 15 system in the state which is supported by public 41 16 contributions. The bill also provides that a deferred 41 17 compensation plan or tax-deferred annuity is not another 41 18 public retirement system for purposes of section 97B.42. 41 19 Section 97B.48, subsection 1, is amended to provide that a 41 20 member who would have received a retirement allowance of less 41 21 than $600 a year may elect to receive a lump sum equal to the 41 22 member's and the employer's accumulated contributions and any 41 23 retirement dividends credited before December 31, 1966. 41 24 Current law provides that the lump sum received shall be an 41 25 actuarial equivalent amount, defined as a benefit of equal 41 26 value when computed pursuant to actuarial tables. 41 27 Section 97B.48, subsection 2, is amended concerning the 41 28 method of determining the date a member provides written 41 29 notice of retirement to the department. This date is then 41 30 used to determine the member's first monthly payment. The 41 31 section provides that the date a member sends such written 41 32 notice shall be considered the date if, within 90 days after 41 33 the department responds to the notice, the member submits a 41 34 completed application for retirement. Currently, the date 41 35 notice is received shall be used if the member submits a 42 1 completed application for retirement within six months of that 42 2 date. 42 3 Section 97B.48A, concerning reemployment, is amended to 42 4 provide that for members under 65 years of age, a member's 42 5 retirement allowance shall be reduced by 50 cents for each 42 6 dollar the member earns over the limit for extra income 42 7 provided in section 97B.48A. This section of the bill also 42 8 provides that the earned income limit is the greater of $7,440 42 9 or the amount of income permitted under Social Security. 42 10 Current law provides for a suspension of the retirement 42 11 allowance for earnings over $7,440. The section provides for 42 12 recouping these reductions from beneficiaries of the member if 42 13 the member dies prior to IPERS recovering the full amount of 42 14 the reductions. 42 15 Section 97B.49, subsection 4, is amended to provide, 42 16 beginning January 1, 1997, that the minimum monthly benefit 42 17 for members who retired between July 1, 1953, and July 1, 42 18 1990, with at least 10 years of service is $200. For each 42 19 year of service from 10 to 30 years of total service, the 42 20 minimum benefit shall increase by $10 per year of additional 42 21 service. 42 22 Section 97B.49, subsection 5, paragraph "b", is amended to 42 23 reflect the history of the increase in the percentage 42 24 multiplier up to the current 60 percent. The section reflects 42 25 that vested members retiring on or after July 1, 1994, receive 42 26 a monthly retirement allowance based on 60 percent of the 42 27 member's three-year average covered wage. 42 28 Section 97B.49, subsection 5, is amended by adding new 42 29 paragraph "e" which provides a mechanism to reduce the 42 30 percentage multiplier applied to members whose three-year 42 31 average covered wage for service for members whose three-year 42 32 average covered wage exceeds $55,000. The multiplier is not 42 33 reduced for the first $55,000 of a member's wage but are 42 34 reduced for that portion of the wages that exceed $55,000. 42 35 For wages between $55,000 and $65,000, the applicable 43 1 percentage multiplier applied is reduced 10 percent, for wages 43 2 between $65,000 and $75,000, the applicable percentage 43 3 multiplier applied is reduced 15 percent, for wages between 43 4 $75,000 and $85,000, the applicable percentage multiplier 43 5 applied is reduced 20 percent, for wages between $85,000 and 43 6 $95,000, the applicable percentage multiplier applied is 43 7 reduced 30 percent, and for wages over $95,000, the applicable 43 8 percentage multiplier applied is reduced 40 percent. The 43 9 section provides that these brackets will be adjusted for 43 10 inflation. 43 11 Section 97B.49, subsection 13, concerning retirement 43 12 dividends, is amended to provide for the payment of a 43 13 retirement dividend based on a percentage of a member's 43 14 monthly retirement allowance for certain retirees in November 43 15 1996 and November 1997. Members who retired between July 4, 43 16 1953, and December 31, 1975, receive a dividend of 292 percent 43 17 of the monthly benefit, members who retired between January 1, 43 18 1976, and June 30, 1982, receive a dividend of 223 percent of 43 19 the monthly benefit, members who retired between July 1, 1982, 43 20 and June 30, 1986, receive a dividend of 74 percent of the 43 21 monthly benefit, and members who retired between July 1, 1986, 43 22 and June 30, 1990, receive a dividend of 24 percent of the 43 23 monthly benefit. 43 24 Section 97B.49, subsection 16, is amended by adding a new 43 25 paragraph "m" requiring that the department of public safety 43 26 shall pay the department of personnel the costs of additional 43 27 benefits provided a fire prevention inspector peace officer. 43 28 This provision is immediately effective and retroactive to 43 29 July 1, 1992. 43 30 Section 97B.51 is amended to provide that a member shall 43 31 not change an election of an optional retirement allowance 43 32 once the first retirement allowance is paid. 43 33 Section 97B.51, subsection 5, provides that a member may 43 34 elect, at retirement, to provide a lump sum payment to a 43 35 beneficiary on the member's death. This section of the bill 44 1 provides that the lump sum payment shall not exceed the 44 2 member's accumulated contributions. Current law does not 44 3 specify that the lump sum payment cannot exceed the member's 44 4 accumulated contributions. 44 5 Section 97B.51, subsection 6, is amended to provide for an 44 6 equal distribution of a member's reduced retirement allowance 44 7 payments upon the member's death if multiple beneficiaries are 44 8 designated unless the member provides in writing for a 44 9 different distribution. 44 10 Section 97B.52, subsection 3, is amended to provide that a 44 11 beneficiary, heirs, or the estate, have five years, and not 44 12 two years, after the member's death to apply to the department 44 13 to receive the member's death benefit. The section of the 44 14 bill also requires the department to reinstate a surviving 44 15 spouse's right to receive a death benefit after five years if 44 16 required or permitted pursuant to the Internal Revenue Code. 44 17 Section 97B.52, subsection 5, is amended to provide for the 44 18 payment of benefits that are waived by the eligible 44 19 beneficiary. 44 20 Section 97B.52A is amended to provide that a member does 44 21 not have a bona fide retirement until all employment with the 44 22 employer, even noncovered employment, is terminated for at 44 23 least 30 days. 44 24 Section 97B.53 is amended to eliminate contingent language 44 25 concerning the implementation of amendments to this section. 44 26 Section 97B.53B is amended to provide that annual 44 27 distributions of less than $200 of taxable income are not 44 28 considered an eligible rollover distribution. Current law 44 29 refers to a distribution of less than $200 of taxable income. 44 30 Section 97B.66 is amended to provide that members may make 44 31 contributions as "buy-backs" in increments of calendar 44 32 quarters rather than full years concerning former service in 44 33 the teachers insurance and annuity association-college 44 34 retirement equity fund (TIAA-CREF). This section also 44 35 eliminates contingency language concerning the implementation 45 1 of partial "buy-backs", and contains a conforming change 45 2 pertaining to interest accrual under section 97B.70. 45 3 Section 97B.68 is amended to provide that a member of a 45 4 federal retirement system is not eligible for membership in 45 5 IPERS for the same position. Current law prohibits membership 45 6 in both systems regardless of the position. 45 7 Section 97B.68 is amended by adding a new subsection 3 to 45 8 provide that effective July 1, 1996, employees under the 45 9 federal retirement system may be covered under IPERS if 45 10 service under IPERS is not counted for their federal system 45 11 retirement. 45 12 Section 97B.70 is amended to provide that, effective for 45 13 years beginning January 1997, the interest credited to the 45 14 member's and the employer's contributions for purposes of 45 15 determining the accumulated contributions shall be equal to 1 45 16 percent higher than the interest rate for one year 45 17 certificates of deposit as of January of each year. This 45 18 section also provides that interest shall be credited on a 45 19 quarterly basis, and removes contingency language. 45 20 Sections 97B.72, concerning members of the 71st General 45 21 Assembly or a succeeding general assembly, 97B.72A, concerning 45 22 members of the general assembly before July 1, 1988, 97B.73, 45 23 for members of other public retirement systems, and 97B.73A, 45 24 concerning part-time county attorneys, are amended to provide 45 25 that members may make contributions in increments of calendar 45 26 quarters rather than full years concerning former service. 45 27 The sections also eliminate contingency language concerning 45 28 the implementation of partial "buy-ins", or "buy-backs", as 45 29 applicable, and contain conforming changes pertaining to 45 30 interest accrual under section 97B.70. Section 97B.72A is 45 31 also amended to provide that only vested or retired members, 45 32 and not active members, may make contributions. 45 33 Section 97B.74 is amended to provide that members may make 45 34 contributions as "buy-backs" in increments of calendar 45 35 quarters rather than full years concerning members seeking 46 1 reinstatement as a vested member. The section also provides 46 2 that only former vested or retired members, and not former 46 3 active members who were not vested, can buy back refunds 46 4 received. The section also eliminates contingent language 46 5 concerning the implementation of amendments to this Code 46 6 section. 46 7 Section 97B.80 is amended to provide that members may make 46 8 contributions as "buy-ins" in increments of one or more 46 9 calendar quarters rather than full years for active duty 46 10 service in the armed forces. The section eliminates the 46 11 restriction on making contributions in increments of less than 46 12 one year only once. 46 13 LSB 3539HC 76 46 14 ec/cf/24
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