Text: HSB00720 Text: HSB00722 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 1 3 Section 1. Section 97B.4, unnumbered paragraph 1, Code 1 4 1995, is amended to read as follows: 1 5 The department, through the chief investment officer and 1 6 chief benefits officer, shall administer this chapter. The 1 7 department may adopt, amend, or rescind rules, employ persons, 1 8 execute contracts with outside parties, make expenditures, 1 9 require reports, make investigations, and take other action it 1 10 deems necessary for the administration of the system in 1 11 conformity with the requirements of this chapter, the 1 12 applicable provisions of the Internal Revenue Code, and all 1 13 other applicable federal and state laws. The rules shall be 1 14 effective upon compliance with chapter 17A. Not later than 1 15 the fifteenth day of December of each year, the department 1 16 shall submit to the governor a report covering the 1 17 administration and operation of this chapter during the 1 18 preceding fiscal year and shall make recommendations for 1 19 amendments to this chapter. The report shall include a 1 20 balance sheet of the moneys in the Iowa public employees' 1 21 retirement fund. 1 22 Sec. 2. Section 97B.7, subsection 2, paragraph b, 1 23 unnumbered paragraphs 1 through 3, Code 1995, are amended to 1 24 read as follows: 1 25 To invest the portion of the retirement fund which in the 1 26 judgment of the department is not needed for current payment 1 27 of benefits under this chapter. The department shall execute 1 28 the disposition and investment of moneys in the retirement 1 29 fund in accordance with the investment policy and goal 1 30 statement established by the investment board. In 1 31 establishing the investment policy of the fund and the 1 32 investment of the fund, the department and investment board 1 33 shall exercise the judgment and care, under the circumstances 1 34 then prevailing, which persons of prudence, discretion, and 1 35 intelligence exercise in the management of their own affairs, 2 1 not for the purpose of speculation, but with regard to the 2 2 permanent disposition of the funds, considering the probable 2 3 income, as well as the probable safety, of their capital. 2 4 Within the limitations of the standard prescribed in this 2 5 section, the treasurer of state, the department, and the board 2 6 may acquire and retain every kind of property and every kind 2 7 of investment which persons of prudence, discretion, and 2 8 intelligence acquire or retain for their own account. 2 9 The department and investment board shall give appropriate 2 10 consideration to those facts and circumstances that the 2 11 department and investment board know or should know are 2 12 relevant to the particular investment or investment policy 2 13 involved, including the role the investment plays in the total 2 14 value of the retirement fund. 2 15 For the purposes of this paragraph, appropriate con- 2 16 sideration includes, but is not limited to, a determination by 2 17 the department and investment board that the particular 2 18 investment or investment policy is reasonably designed to 2 19 further the purposes of the retirement system, taking into 2 20 consideration the risk of loss and the opportunity for gain or 2 21 other return associated with the investment or investment 2 22 policy and consideration of the following factors as they 2 23 relate to the retirement fund: 2 24 Sec. 3. Section 97B.11, Code 1995, is amended to read as 2 25 follows: 2 26 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE. 2 27 Each employer shall deduct from the wages of each member of 2 28 the system a contribution in the amount of three and seven- 2 29 tenths percent of the covered wages paid by the employer, 2 30 until the member's termination or retirement from employment, 2 31 whichever is earlier. The contributions of the employer shall 2 32 be in the amount of five and seventy-five hundredths percent 2 33 of the covered wages of the member. 2 34 If the total of the contributions to be deducted from the 2 35 wages of a member and contributions picked up and paid by the 3 1 employer shall not exceed one dollar for any calendar quarter, 3 2 contributions shall not be deducted or paid concerning that 3 3 member and the member shall not receive credit for membership 3 4 service for that quarter. 3 5 Sec. 4. Section 97B.14, Code 1995, is amended to read as 3 6 follows: 3 7 97B.14 CONTRIBUTIONS FORWARDED. 3 8 Contributions deducted from the wages of the memberor3 9 under section 97B.11 prior to January 1, 1995, member 3 10 contributions picked up by the employer under section 97B.11A 3 11 beginning January 1, 1995, and the employer's contribution 3 12 shall be forwarded to the department for recording and 3 13 deposited with the treasurer of the state to the credit of the 3 14 Iowa public employees' retirement fund. Contributions shall 3 15 be remitted monthly, if total contributions by both employee 3 16 and employer amount to one hundred dollars or more each month, 3 17 and shall be otherwise paid in such manner, at such times and 3 18 under such conditions, either by copies of payrolls or other 3 19 methods necessary or helpful in securing proper identification 3 20 of the member, as may be prescribed by the department. 3 21 Sec. 5. Section 97B.15, Code 1995, is amended to read as 3 22 follows: 3 23 97B.15 RULES, POLICIES, AND PROCEDURES. 3 24 The department may adopt rules under chapter 17A and 3 25 establish procedures, not inconsistent with this chapter, 3 26 which are necessary or appropriate to implement this chapter 3 27 and shall adopt reasonable and proper rules to regulate and 3 28 provide for the nature and extent of the proofs and evidence 3 29 and the method of taking and furnishing the proofs and 3 30 evidence in order to establish the right to benefits under 3 31 this chapter. The department may adopt rules, and take action 3 32 based on the rules, to conform the requirements for receipt of 3 33 retirement benefits under this chapter to the mandates of 3 34 applicable federal statutes and regulations. 3 35 Prior to the adoption of rules, the department may 4 1 establish interim written policies and procedures, and take 4 2 action based on the policies and procedures, to conform the 4 3 requirements for receipt of retirement benefits under this 4 4 chapter to the applicable requirements of federal law. 4 5 Sec. 6. Section 97B.17, unnumbered paragraph 1, Code 1995, 4 6 is amended to read as follows: 4 7 The department shall establish and maintain records of each 4 8 member, including but not limited to, the amount of wages of 4 9 each member, the contribution of each member with interest, 4 10 and interest dividends credited. The records may be 4 11 maintained in paper, magnetic, or electronic form, including 4 12 optical disk storage. These records are the basis for the 4 13 compilation of the retirement benefits provided under this 4 14 chapter. The following records maintained under this chapter 4 15 containing personal identifiable information are not public 4 16 records for the purposes of chapter 22: 4 17 Sec. 7. Section 97B.17, Code 1995, is amended by adding 4 18 the following new unnumbered paragraph: 4 19 NEW UNNUMBERED PARAGRAPH. Notwithstanding any provisions 4 20 of chapter 22 to the contrary, the department's records may be 4 21 released to any political subdivision, instrumentality, or 4 22 other agency of the state solely for use in a civil or 4 23 criminal law enforcement activity pursuant to the requirements 4 24 of this paragraph. To obtain the records, the political 4 25 subdivision, instrumentality, or agency shall, in writing, 4 26 certify that the activity is authorized by law, provide a 4 27 written description of the information desired, and describe 4 28 the law enforcement activity for which the information is 4 29 sought. The department shall not be civilly or criminally 4 30 liable for the release or rerelease of records in accordance 4 31 with this paragraph. 4 32 Sec. 8. Section 97B.25, Code 1995, is amended to read as 4 33 follows: 4 34 97B.25 APPLICATIONS FOR BENEFITS. 4 35 A representative designated by the chief benefits officer 5 1 and referred to in this chapter as a retirement benefits 5 2 specialist shall promptly examine applications for retirement 5 3 benefits and on the basis of facts found shall determine 5 4 whether or not the claim is valid and if valid, the month with 5 5 respect to which benefits shall commence, the monthly benefit 5 6 amount payable, and the maximum duration. The retirement 5 7 benefits specialist shall promptly notify the applicant and 5 8 any other interested party of the decision and the reasons. 5 9 Unless the applicant or other interested party, within thirty 5 10 calendar days after the notification was mailed to the 5 11 applicant's or party's last known address, files an appeal as 5 12 provided in section 97B.20A, the decision is final and 5 13 benefits shall be paid or denied in accord with the decision. 5 14 A retirement application shall not be amended or revoked by 5 15 the member once the first retirement allowance is paid. A 5 16 member's death during the first month of entitlement shall not 5 17 invalidate an approved application. 5 18 Sec. 9. Section 97B.39, Code 1995, is amended to read as 5 19 follows: 5 20 97B.39 RIGHTS NOT TRANSFERABLE– NOTOR SUBJECT TO LEGAL 5 21 PROCESS – EXCEPTIONS. 5 22 The right of any person to any future payment under this 5 23 chapter is not transferable or assignable, at law or in 5 24 equity, and the moneys paid or payable or rights existing 5 25 under this chapter are not subject to execution, levy, 5 26 attachment, garnishment, or other legal process, or to the 5 27 operation of any bankruptcy or insolvency law except for the 5 28 purposes of enforcing child, spousal, or medical support 5 29 obligations or marital property orders. For the purposes of 5 30 enforcing child, spousal, or medical support obligations or 5 31 marital property orders, the garnishment or attachment of or 5 32 the execution against compensation due a person underchapter5 3397Bthis chapter shall not exceed the amount specified in 15 5 34 U.S.C. } 1673(b). A marital property order shall not require 5 35 the payment of benefits to an alternate payee prior to the 6 1 member's retirement or require the department or the member to 6 2 designate a particular person as a designated beneficiary or 6 3 contingent annuitant, or to select a particular benefit option 6 4 on behalf of the member. In addition, a marital property 6 5 order shall not require payment of benefits to an alternate 6 6 payee prior to the date the member elects to receive a lump 6 7 sum distribution of accumulated contributions pursuant to 6 8 section 97B.53. 6 9 Sec. 10. Section 97B.41, subsection 2, Code Supplement 6 10 1995, is amended to read as follows: 6 11 2. "Accumulated contributions" means the total obtained as 6 12 of any date, by accumulating each individual contribution by 6 13 the memberat two percentwith interest plus interest 6 14 dividends as provided in section 97B.70, for all completed 6 15 calendar years and for any completed calendar year for which 6 16 the interest dividend has not been declared and for completed 6 17 months of partially completed calendar yearsat two percent6 18interest plus the interest dividend rate calculated for the6 19previous year, compoundedannually, from the end of the6 20calendar year in which such contribution was made to the first6 21day of the month of such dateas provided in section 97B.70. 6 22 Sec. 11. Section 97B.41, subsection 8, paragraph b, 6 23 subparagraph (6), Code Supplement 1995, is amended to read as 6 24 follows: 6 25 (6) Employees hired for temporary employment of less than 6 26 six months or one thousand and forty hours in a calendar year. 6 27 An employee who works for an employer for six or more months 6 28 in a calendar year or who works for an employer for more than 6 29 one thousand forty hours in a calendar year is not a temporary 6 30 employee under this subparagraph. Adjunct instructors are 6 31 temporary employees for the purposes of this chapter. As used 6 32 in this section, unless the context otherwise requires, 6 33 "adjunct instructors" means instructors employed by a 6 34 community college or a university governed by the state board 6 35 of regents without a continuing contract, whose teaching load 7 1 does not exceed one-half time for two full semesters or three 7 2 full quarters per calendar year. 7 3 Sec. 12. Section 97B.41, subsection 8, paragraph b, Code 7 4 Supplement 1995, is amended by adding the following new 7 5 subparagraph: 7 6 NEW SUBPARAGRAPH. (20) Persons employed through any 7 7 program described in section 15.225, subsection 1, and 7 8 provided by the Iowa conservation corps. 7 9 Sec. 13. Section 97B.41, Code Supplement 1995, is amended 7 10 by adding the following new subsection: 7 11 NEW SUBSECTION. 10A. "Internal Revenue Code" means the 7 12 Internal Revenue Code as defined in section 422.3. 7 13 Sec. 14. Section 97B.41, subsection 12, Code Supplement 7 14 1995, is amended to read as follows: 7 15 12. "Membership service" means service rendered by a 7 16 member after July 4, 1953. Years of membership service shall 7 17 be counted to the complete quarter calendar year. However, 7 18 membership service for a calendar year shall not include more 7 19 than four quarters. In determining a member's period of 7 20 membership service, the department shall combine all periods 7 21 of service for which the member has made contributions. If 7 22 the department has not maintained the accumulated contribution 7 23 account of the member for a period of service, as provided 7 24 pursuant to section 97B.53, subsection 6, the department shall 7 25 credit the member for the service if the member submits 7 26 satisfactory proof to the department that the member did make 7 27 the contributions for the period of service and did not take a 7 28 refund for the period of service.However, the department7 29shall not implement the amendments to this subsection, as7 30enacted in 1994 Iowa Acts, chapter 1183, unless and until the7 31department determines that the most recent annual actuarial7 32valuation of the retirement system indicates that the employer7 33and employee contribution rates in effect under section 97B.117 34can absorb the amendments to this subsection and to section7 3597B.53, subsections 3 and 7, section 97B.53, subsection 6,8 1unnumbered paragraph 1, and section 97B.70, by enacting a new8 2subsection 4, contained in 1994 Iowa Acts, chapter 1183, after8 3meeting the other established priorities of the system. Until8 4the amendments are implemented, the department shall continue8 5to implement the provisions of section 97B.41, subsection 12,8 6Code Supplement 1993. As used in this subsection, unless the8 7context otherwise requires, "other established priorities of8 8the system" means that commencing January 1 following the most8 9recent annual actuarial valuation of the system, the8 10department has increased the covered wage limitation from the8 11previous year by three thousand dollars, in accordance with8 12section 97B.41, subsection 20, paragraph "b", subparagraph8 13(11), and that the department has implemented the amendments8 14to section 97B.66, unnumbered paragraphs 1 and 2, section8 1597B.72, unnumbered paragraphs 1 and 2, section 97B.72A,8 16subsection 1, unnumbered paragraph 1, section 97B.73A,8 17unnumbered paragraph 1, and section 97B.74, unnumbered8 18paragraphs 1 and 2, contained in 1994 Iowa Acts, chapter 1183.8 19 Sec. 15. Section 97B.41, Code Supplement 1995, is amended 8 20 by adding the following new subsection: 8 21 NEW SUBSECTION. 13A. "Regular service" means service for 8 22 an employer other than special service. 8 23 Sec. 16. Section 97B.41, Code Supplement 1995, is amended 8 24 by adding the following new subsection: 8 25 NEW SUBSECTION. 14A. "Retirement" means that period of 8 26 time beginning when a member who has filed an approved 8 27 application for a retirement allowance has survived into at 8 28 least the first day of the member's first month of entitlement 8 29 and ending when the member dies. 8 30 Sec. 17. Section 97B.41, subsection 15, paragraphs a and 8 31 b, Code Supplement 1995, are amended to read as follows: 8 32 a. Service in the armed forces of the United States, if 8 33 the employee was employed by the employer immediately prior to 8 34 entry into the armed forces, and if the employee was released 8 35 from service and returns to covered employment with the 9 1 employer within twelve months of the date on which the 9 2 employee has the right of release from service or within a 9 3 longer period asprovidedrequired by the applicable laws of 9 4 the United States. 9 5 b. Leave of absence or vacation authorized by the employer 9 6 for a period not exceeding twelve months. A leave of absence 9 7 authorized pursuant to the requirements of the federal Family 9 8 and Medical Leave Act of 1993 is considered a leave of absence 9 9 authorized by the employer. 9 10 Sec. 18. Section 97B.41, Code Supplement 1995, is amended 9 11 by adding the following new subsection: 9 12 NEW SUBSECTION. 16A. "Special service" means service for 9 13 an employer while employed in a protection occupation as 9 14 provided in section 97B.49, subsection 16, paragraph "a", and 9 15 as a county sheriff, deputy sheriff, or airport fire fighter 9 16 as provided in section 97B.49, subsection 16, paragraph "b". 9 17 Sec. 19. Section 97B.41, subsection 18, Code Supplement 9 18 1995, is amended to read as follows: 9 19 18. a. "Three-year average covered wage" means a member's 9 20 covered wages averaged for the highest three years of the 9 21 member's service, except as otherwise provided in this 9 22 subsection. The highest three years of a member's covered 9 23 wages shall be determined using calendar years. However, if a 9 24 member's final quarter of a year of employment does not occur 9 25 at the end of a calendar year, the department may determine 9 26 the wages for the third year by computing the average quarter 9 27 of all quarters from the member's highest calendar year of 9 28 covered wages not being used in the selection of the two 9 29 highest years and using the computed average quarter for each 9 30 quarter in the third year in which no wages have been reported 9 31 in combination with the final quarter or quarters of the 9 32 member's service to create a full year. However, the 9 33 department shall not use the member's final quarter of wages 9 34 if using that quarter would reduce the member's three-year 9 35 average covered wage. If the three-year average covered wage 10 1 of a member exceeds the highest maximum covered wages in 10 2 effect for a calendar year during the member's period of 10 3 service, the three-year average covered wage of the member 10 4 shall be reduced to the highest maximum covered wages in 10 5 effect during the member's period of service. 10 6 b. Notwithstanding any other provisions of this subsection 10 7 to the contrary, the three-year average covered wage shall be 10 8 computed as follows for the following members: 10 9 (1) For a member who retires during the calendar year 10 10 beginning January 1, 1997, and whose three-year average 10 11 covered wage at the time of retirement exceeds forty-eight 10 12 thousand dollars, the member's covered wages averaged for the 10 13 highest four years of the member's service or forty-eight 10 14 thousand dollars, whichever is greater. 10 15 (2) For a member who retires during the calendar year 10 16 beginning January 1, 1998, and whose three-year average 10 17 covered wage at the time of retirement exceeds fifty-two 10 18 thousand dollars, the member's covered wages averaged for the 10 19 highest five years of the member's service or fifty-two 10 20 thousand dollars, whichever is greater. 10 21 (3) For a member who retires during the calendar year 10 22 beginning January 1, 1999, and whose three-year average 10 23 covered wage at the time of retirement exceeds fifty-five 10 24 thousand dollars, the member's covered wages averaged for the 10 25 highest six years of the member's service or fifty-five 10 26 thousand dollars, whichever is greater. 10 27 (4) For a member who retires on or after January 1, 2000, 10 28 but before January 1, 2003, and whose three-year average 10 29 covered wage at the time of retirement exceeds fifty-five 10 30 thousand dollars, the member's covered wages averaged for the 10 31 highest seven years of the member's service or fifty-five 10 32 thousand dollars, whichever is greater. 10 33 For purposes of this paragraph, the highest years of the 10 34 member's service shall be determined using calendar years and 10 35 may be determined using one computed year calculated in the 11 1 manner and subject to the restrictions provided in paragraph 11 2 "a". 11 3 Sec. 20. Section 97B.41, subsection 20, paragraph b, 11 4 subparagraph (11), unnumbered paragraphs 1 and 2, Code 11 5 Supplement 1995, are amended by striking the unnumbered 11 6 paragraphs and inserting in lieu thereof the following: 11 7 (11) For the calendar year beginning January 1, 1991, 11 8 wages not in excess of thirty-one thousand dollars. 11 9 (11A) For the calendar year beginning January 1, 1992, 11 10 wages not in excess of thirty-four thousand dollars. 11 11 (11B) For the calendar year beginning January 1, 1993, 11 12 wages not in excess of thirty-five thousand dollars. 11 13 (11C) For the calendar year beginning January 1, 1994, 11 14 wages not in excess of thirty-eight thousand dollars. 11 15 (11D) For the calendar year beginning January 1, 1995, 11 16 wages not in excess of forty-one thousand dollars. 11 17 (11E) For the calendar year beginning January 1, 1996, 11 18 wages not in excess of forty-four thousand dollars. 11 19 (11F) Commencing with the calendar year beginning January 11 20 1, 1997, and for each subsequent calendar year, wages not in 11 21 excess of the amount permitted for that year under section 11 22 401(a)(17) of the Internal Revenue Code. 11 23 Sec. 21. Section 97B.41, subsection 20, paragraph b, 11 24 subparagraph (11), unnumbered paragraph 3, Code Supplement 11 25 1995, is amended to read as follows: 11 26 Notwithstanding any other provision of this chapter 11 27 providing for the payment of the benefits provided in section 11 28 97B.49, subsection 16 or 17, the department shall establish 11 29 the covered wages limitation which applies to members covered 11 30 under section 97B.49, subsection 16 or 17, at the same level 11 31 as is established under this subparagraph for other members of 11 32 the system. 11 33 Sec. 22. Section 97B.42, unnumbered paragraph 1, Code 11 34 1995, is amended to read as follows: 11 35 Each employee whose employment commences after July 4, 12 1 1953, or who has not qualified for credit for prior service 12 2 rendered prior to July 4, 1953, or any publicly elected 12 3 official of the state or any of its political subdivisions 12 4 shall become a member upon the first day in which such 12 5 employee is employed. The employee shall continue to be an 12 6 active member so long as the employee continues in covered 12 7 employment. The employee shall cease to be an active member 12 8 if the employee joins another retirement system in the state 12 9 which is maintained in whole or in part by public 12 10 contributions or payments and receives retirement credit for 12 11 service in that other system for the same position previously 12 12 covered under this chapter. If an employee joins another 12 13 publicly maintained retirement system and ceases to be an 12 14 active member under this chapter, the employee may elect to 12 15 leave the employee's accumulated contributions in the 12 16 retirement fund or receive a refund of the employee's 12 17 accumulated contributions in the manner provided for members 12 18 who are terminating covered employment pursuant to section 12 19 97B.53. However, if an employee joins another publicly 12 20 maintained retirement system and leaves the employee's 12 21 accumulated contributions in the retirement fund, the employee 12 22 shall not be eligible to receive retirement benefits until the 12 23 employee has a bona fide retirement from employment with a 12 24 covered employer as provided in section 97B.52A, or until the 12 25 employee would otherwise be eligible to receive benefits upon 12 26 attaining the age of seventy years as provided in section 12 27 97B.46. 12 28 Sec. 23. Section 97B.42, unnumbered paragraph 4, Code 12 29 1995, is amended to read as follows: 12 30 Persons who are members of any other retirement system in 12 31 the state which is maintained in whole or in part by public 12 32 contributions other than persons who are covered under the 12 33 provisions of chapter 97, Code 1950, as amended by the Fifty- 12 34 fourth General Assembly on the date of the repeal of said 12 35 chapter, under the provisions of sections 97.50 through 97.53 13 1 shall not become members under this chapter while still 13 2 actively participating in that other retirement system unless 13 3 the persons do not receive retirement credit for service in 13 4 that other system for the position to be covered under this 13 5 chapter. 13 6 Sec. 24. Section 97B.42, unnumbered paragraph 5, Code 13 7 1995, is amended to read as follows: 13 8 Nothing herein contained shall be construed to permit any 13 9person in public employment to be an active member ofemployer 13 10 to make any public contributions or payments on behalf of an 13 11 employee in the same position for the same period of time to 13 12 both the Iowa public employees' retirement system and of any 13 13 other retirement system in the state which is supported in 13 14 whole or in part by public contributions or paymentsexcept as13 15heretofore provided. 13 16 Sec. 25. Section 97B.42, Code 1995, is amended by adding 13 17 the following new unnumbered paragraph: 13 18 NEW UNNUMBERED PARAGRAPH. For purposes of this section, a 13 19 "retirement system in the state which is maintained in whole 13 20 or in part by public contributions or payments" shall not 13 21 include a deferred compensation plan established under section 13 22 509A.12 or a tax-sheltered annuity qualified under section 13 23 403(b) of the Internal Revenue Code. 13 24 Sec. 26. Section 97B.48, subsection 1, Code 1995, is 13 25 amended to read as follows: 13 26 1. Retirement allowances shall be paid monthly, except 13 27 that an allowance of less than six hundred dollars a year may, 13 28 at the member's option, be paid as a lump sum in anactuarial13 29equivalentamount equal to the sum of the member's and 13 30 employer's accumulated contributions and the retirement 13 31 dividends standing to the member's credit before December 31, 13 32 1966. Receipt of the lump-sum payment by a member shall 13 33 terminate any and all entitlement for the period of service 13 34 covered of the member under this chapter. 13 35 Sec. 27. Section 97B.48A, subsection 1, Code 1995, is 14 1 amended to read as follows: 14 2 1. If, after the first day of the month in which the14 3member attains the age of fifty-five years and until the14 4member's sixty-fifth birthday,a member who has not reached 14 5 the member's sixty-fifth birthday and who has a bona fide 14 6 retirement under this chapter is in regular full-time 14 7 employment during a calendar year, the member's retirement 14 8 allowance shall besuspended for as long as the member remains14 9in employment for the remainder of that calendar yearreduced 14 10 by fifty cents for each dollar the member earns over the limit 14 11 provided in this subsection. However,effective January 1,14 121992,employment is not full-time employment until the member 14 13 receives remuneration in an amount in excess of seven thousand 14 14 four hundred forty dollars for a calendar year, or an amount 14 15 equal to the amount of remuneration permitted for a calendar 14 16 year for persons under sixty-five years of age before a 14 17 reduction in federal Social Security retirement benefits is 14 18 required, whichever is higher. Effective the first of the 14 19 month in which a member attains the age of sixty-five years, a 14 20 retired member may receive a retirement allowance without a 14 21 reduction after return to covered employment regardless of the 14 22 amount of remuneration received. 14 23 If a member dies and the full amount of the reduction from 14 24 retirement allowances required under this subsection has not 14 25 been paid, the remaining amounts shall be deducted from the 14 26 payments made, if any, to the member's designated beneficiary 14 27 or contingent annuitant. If the member has selected an option 14 28 under which remaining payments are not required or the 14 29 remaining payments are insufficient to satisfy the full amount 14 30 of the reduction from retirement allowances required under 14 31 this subsection, the amount still unpaid shall be a claim 14 32 against the member's estate. 14 33 Sec. 28. Section 97B.48A, subsection 4, Code 1995, is 14 34 amended to read as follows: 14 35 4. The department shall pay to the member the accumulated 15 1 contributions of the member and to the employer the employer 15 2 contributions, plustwo percentinterest plus interest 15 3 dividends as provided in section 97B.70, for all completed 15 4 calendar years, compoundedannuallyas provided in section 15 5 97B.70, on the covered wages earned by a retired member that 15 6 are not used in the recalculation of the retirement allowance 15 7 of a member. 15 8 Sec. 29. Section 97B.49, subsection 4, Code Supplement 15 9 1995, is amended by adding the following new unnumbered 15 10 paragraph: 15 11 NEW UNNUMBERED PARAGRAPH. Effective January 1, 1997, for 15 12 members who retired on or after July 1, 1953, and before July 15 13 1, 1990, with at least ten years of prior and membership 15 14 service, the minimum monthly benefit payable at the normal 15 15 retirement date for prior and membership service shall be two 15 16 hundred dollars. The minimum monthly benefit payable shall be 15 17 increased by ten dollars for each year of prior and membership 15 18 service beyond ten years, up to a maximum of twenty additional 15 19 years of prior and membership service. If benefits commenced 15 20 on an early retirement date, the amount of the benefit shall 15 21 be reduced in accordance with section 97B.50. If an optional 15 22 allowance was selected under section 97B.51, the amount 15 23 payable shall be the actuarial equivalent of the minimum 15 24 benefit. 15 25 Sec. 30. Section 97B.49, subsection 5, paragraph b, Code 15 26 Supplement 1995, is amended to read as follows: 15 27 b. For each active or inactive vested member retiring on 15 28 or after July 1, 1990, with four or more complete years of 15 29 service, a monthly benefit shall be computed which is equal to 15 30 one-twelfth of an amount equal tofifty-two percentthe 15 31 applicable percentage multiplier of the three-year average 15 32 covered wage multiplied by a fraction of years of service. 15 33 The applicable percentage multiplier shall be the following: 15 34 (1) For active or inactive vested members retiring on or 15 35 after July 1, 1990, but before July 1, 1991, fifty-two 16 1 percent. 16 2 (2) For active or inactive vested members retiring on or 16 3 after July 1, 1991, but before July 1, 1992, fifty-four 16 4 percent. 16 5 (3) For active or inactive vested members retiring on or 16 6 after July 1, 1992, but before July 1, 1993, fifty-six 16 7 percent. 16 8 (4) For active or inactive vested members retiring on or 16 9 after July 1, 1993, but before July 1, 1994, fifty-seven and 16 10 four-tenths percent. 16 11 (5) For active or inactive vested members retiring on or 16 12 after July 1, 1994, sixty percent. 16 13 The applicable percentage multiplier shall be subject to 16 14 adjustments as provided in paragraphs "e" and "f". 16 15Commencing July 1, 1991, the department shall increase the16 16percentage multiplier of the three-year average covered wage16 17by an additional two percent each July 1 until reaching sixty16 18percent of the three-year average covered wage if the annual16 19actuarial valuation of the retirement system indicates for16 20that year that the cost of this increase in the percentage of16 21the three-year average covered wage used in computing16 22retirement benefits can be absorbed within the employer and16 23employee contribution rates in effect under section 97B.11.16 24However, commencing July 1, 1994, if the annual actuarial16 25valuation of the retirement system indicates that the employer16 26and employee contribution rates in effect under section 97B.1116 27can absorb an increase in the percentage multiplier in excess16 28of two percent, the department shall increase the percentage16 29multiplier for that year beyond two percent to the extent16 30which the increase can be absorbed by the contribution rates16 31in effect, not to exceed a maximum percentage multiplier of16 32sixty percent. The increase in the percentage multiplier for16 33a year applies only to the members retiring on or after July 116 34of the respective year.16 35If the annual actuarial valuation of the retirement system17 1in any year indicates that the full cost of the increase17 2provided under this paragraph cannot be absorbed within the17 3employer and employee contribution rates in effect under17 4section 97B.11, the department shall reduce the increase to a17 5level which the department determines can be so absorbed.17 6 Notwithstanding any other provision of this chapter 17 7 providing for the payment of the benefits provided in 17 8 subsection 16 or 17, the department shallestablishapply the 17 9 percentage multiplier which applies to members covered under 17 10 subsection 16 or 17 at the same level as is established under 17 11 this subsection for other members of the system, including any 17 12 modification in the percentage multiplier as provided in 17 13 paragraph "e". 17 14By November 15, 1995, the department shall set aside from17 15other moneys in the retirement fund three million eight17 16hundred sixty thousand dollars. The moneys set aside shall be17 17from the funds generated by the employer and employee17 18contributions in effect under section 97B.11 that exceed the17 19amount necessary to fund the system's existing liabilities, as17 20determined in the annual actuarial valuation of the system as17 21of June 30, 1995. If the annual actuarial valuation indicates17 22that the amount of the employer and employee contributions in17 23excess of the amount necessary to fund existing liabilities is17 24less than three million eight hundred sixty thousand dollars,17 25the department shall set aside all funds that are available.17 26The funds set aside shall not be used in determining the17 27covered wage limitation pursuant to section 97B.41, subsection17 2820, paragraph "b", subparagraph (11), on January 1, 1996.17 29However, any funds set aside which are not specifically17 30dedicated to a purpose by the Seventy-sixth General Assembly17 31shall be used in determining the covered wage limitation17 32thereafter.17 33In accordance with sections 97D.1 and 97D.4, it is the17 34intent of the general assembly that once the goal of sixty17 35percent of the three-year average covered wage is attained for18 1a percentage multiplier, the department shall submit to the18 2public retirement systems committee a plan for future benefit18 3enhancements. This plan shall include, but is not limited to,18 4continuation in the increase in the covered wage ceiling until18 5reaching fifty-five thousand dollars for a calendar year,18 6providing for annual adjustments in the annual dividends paid18 7to retired members as provided in section 97B.49, subsection18 813, and providing for the indexing of terminated vested18 9members' earned benefits at a rate of three percent per year18 10calculated from the date of termination from covered18 11employment until the date of retirement.18 12 Sec. 31. Section 97B.49, subsection 5, Code Supplement 18 13 1995, is amended by adding the following new paragraph: 18 14 NEW PARAGRAPH. e. Notwithstanding any other provisions of 18 15 this section to the contrary, for members retiring on or after 18 16 July 1, 1997, and whose three-year average covered wage 18 17 exceeds fifty-five thousand dollars, the monthly benefit shall 18 18 be calculated by multiplying the sum of the following amounts 18 19 by the fractions of years of service for that member. 18 20 (1) For the first fifty-five thousand dollars of the 18 21 member's three-year average covered wage, one-twelfth of an 18 22 amount equal to the applicable percentage multiplier otherwise 18 23 provided in this subsection multiplied by fifty-five thousand 18 24 dollars. 18 25 (2) For that portion of a member's three-year average 18 26 covered wage that exceeds fifty-five thousand dollars but is 18 27 less than or equal to sixty-five thousand dollars, one-twelfth 18 28 of an amount equal to the applicable percentage multiplier 18 29 otherwise provided in this subsection, reduced by ten 18 30 percentage points, multiplied by that portion. 18 31 (3) For that portion of a member's three-year average 18 32 covered wage that exceeds sixty-five thousand dollars but is 18 33 less than or equal to seventy-five thousand dollars, one- 18 34 twelfth of an amount equal to the applicable percentage 18 35 multiplier otherwise provided in this subsection, reduced by 19 1 fifteen percentage points, multiplied by that portion. 19 2 (4) For that portion of a member's three-year average 19 3 covered wage that exceeds seventy-five thousand dollars but is 19 4 less than or equal to eighty-five thousand dollars, one- 19 5 twelfth of an amount equal to the applicable percentage 19 6 multiplier otherwise provided in this subsection, reduced by 19 7 twenty percentage points, multiplied by that portion. 19 8 (5) For that portion of a member's three-year average 19 9 covered wage that exceeds eighty-five thousand dollars but is 19 10 less than or equal to ninety-five thousand dollars, one- 19 11 twelfth of an amount equal to the applicable percentage 19 12 multiplier otherwise provided in this subsection, reduced by 19 13 thirty percentage points, multiplied by that portion. 19 14 (6) For that portion of a member's three-year average 19 15 covered wage that exceeds ninety-five thousand dollars, one- 19 16 twelfth of an amount equal to the applicable percentage 19 17 multiplier otherwise provided in this subsection, reduced by 19 18 forty percentage points, multiplied by that portion. 19 19 The covered wage categories referred to in subparagraphs 19 20 (1) through (6) of this paragraph and the fifty-five thousand 19 21 dollar amount otherwise specified in this paragraph shall be 19 22 increased by the department for each fiscal year, beginning 19 23 July 1, 1998, by an amount that represents the increase in the 19 24 consumer price index during the previous twelve-month period 19 25 ending on June 30, as published annually in the federal 19 26 register by the federal department of labor, bureau of labor 19 27 statistics. 19 28 Sec. 32. Section 97B.49, subsection 13, Code Supplement 19 29 1995, is amended to read as follows: 19 30 13. a. A member who retired from the system between 19 31 January 1, 1976, and June 30, 1982, or a contingent annuitant 19 32 or beneficiary of such a member, shall receive with the 19 33 November19941996 and the November19951997 monthly benefit 19 34 payments a retirement dividend equal toonetwo hundred 19 35eighty-onetwenty-three percent of the monthly benefit payment 20 1 the member received for the preceding June, or the most 20 2 recently received benefit payment, whichever is greater. The 20 3 retirement dividend does not affect the amount of a monthly 20 4 benefit payment. 20 5 b. Each member who retired from the system between July 4, 20 6 1953, and December 31, 1975, or a contingent annuitant or 20 7 beneficiary of such a member, shall receive with the November 20 819941996 and the November19951997 monthly benefit payments 20 9 a retirement dividend equal to two hundredthirty-sixninety- 20 10 two percent of the monthly benefit payment the member received 20 11 for the preceding June, or the most recently received benefit 20 12 payment, whichever is greater. The retirement dividend does 20 13 not affect the amount of a monthly benefit payment. 20 14 c. Notwithstanding the determination of the amount of a 20 15 retirement dividend under paragraph "a", "b", "d", or "f", a 20 16 retirement dividend shall not be less than twenty-five 20 17 dollars. 20 18 d. A member who retired from the system between July 1, 20 19 1982, and June 30, 1986, or a contingent annuitant or 20 20 beneficiary of such a member, shall receive with the November 20 2119941996 and the November19951997 monthly benefit payments 20 22 a retirement dividend equal toforty-nineseventy-four percent 20 23 of the monthly benefit payment the member received for the 20 24 preceding June, or the most recently received benefit payment, 20 25 whichever is greater. The retirement dividend does not affect 20 26 the amount of a monthly benefit payment. 20 27 e. If the member dies on or after July 1 of the dividend 20 28 year but before the payment date, the full amount of the 20 29 retirement dividend for that year shall be paidto the20 30designated beneficiaryto the member's account, upon 20 31 notification of the member's death.If there is no20 32beneficiary designated by the member, the department shall pay20 33the dividend to the member's estate. The beneficiary, or the20 34representative of the member's estate, must apply for the20 35dividend within two years after the dividend is payable or the21 1dividend is forfeited.21 2 f. A member who retired from the system between July 1, 21 3 1986, and June 30, 1990, or a contingent annuitant or 21 4 beneficiary of such a member, shall receive with the November 21 5 1996 and the November 1997 monthly benefit payments a 21 6 retirement dividendin an amount determined by the general21 7assemblyequal to twenty-four percent of the monthly benefit 21 8 payment the member received for the preceding June, or the 21 9 most recently received benefit payment, whichever is greater. 21 10 The retirement dividend does not affect the amount of a 21 11 monthly benefit payment. 21 12 Sec. 33. Section 97B.49, subsection 16, paragraph e, Code 21 13 Supplement 1995, is amended to read as follows: 21 14 e. Annually, the department of personnel shall actuarially 21 15 determine the cost of the additional benefits provided for 21 16 members covered under paragraph "a" and the cost of the 21 17 additional benefits provided for members covered under 21 18 paragraph "b" as percents of the covered wages of the 21 19 employees covered by this subsection. Sixty percent of the 21 20 cost shall be paid by the employers of employees covered under 21 21 this subsection and forty percent of the cost shall be paid by 21 22 the employees. The employer and employee contributions 21 23 required under this paragraph are in addition to the 21 24 contributions paid undersectionsections 97B.11 and 97B.11A. 21 25 Sec. 34. Section 97B.49, subsection 16, Code Supplement 21 26 1995, is amended by adding the following new paragraph: 21 27 NEW PARAGRAPH. m. For the fiscal year commencing July 1, 21 28 1992, and each succeeding fiscal year, the department of 21 29 public safety shall pay to the department of personnel from 21 30 funds appropriated to the department of public safety, the 21 31 amount necessary to pay the employer share of the cost of the 21 32 additional benefits provided to a fire prevention inspector 21 33 peace officer pursuant to paragraph "d", subparagraph (8). 21 34 Sec. 35. Section 97B.49, Code Supplement 1995, is amended 21 35 by adding the following new subsection: 22 1 NEW SUBSECTION. 17. a. An active or inactive vested 22 2 member, who is or has been employed in both special service 22 3 and regular service, who retires on or after July 1, 1996, 22 4 with four or more completed years of service and at the time 22 5 of retirement is at least fifty-five years of age, may elect 22 6 to receive, in lieu of the receipt of any other benefits under 22 7 this section, a combined monthly retirement allowance equal to 22 8 the sum of the following: 22 9 (1) One-twelfth of an amount equal to the applicable 22 10 percentage multiplier established in subsection 5 of the 22 11 member's three-year average covered wage multiplied by a 22 12 fraction of years of service. The fraction of years of 22 13 service for purposes of this subparagraph shall be the actual 22 14 years of service, not to exceed twenty-two, earned in a 22 15 position described in subsection 16, paragraph "b", for which 22 16 special service contributions were made, divided by twenty- 22 17 two. 22 18 (2) One-twelfth of an amount equal to the applicable 22 19 percentage multiplier established in subsection 5 of the 22 20 member's three-year average covered wage multiplied by a 22 21 fraction of years of service. The fraction of years of 22 22 service for purposes of this subparagraph shall be the actual 22 23 years of service, not to exceed twenty-five, earned in a 22 24 position described in subsection 16, paragraph "a", for which 22 25 special service contributions were made, divided by twenty- 22 26 five. 22 27 (3) One-twelfth of an amount equal to the applicable 22 28 percentage multiplier established in subsection 5 of the 22 29 member's three-year average covered wage multiplied by a 22 30 fraction of years of service. The fraction of years of 22 31 service for purposes of this subparagraph shall be the actual 22 32 years of service, not to exceed thirty, for which regular 22 33 service contributions were made, divided by thirty. However, 22 34 any otherwise applicable age reduction for early retirement 22 35 shall apply to the calculation under this subparagraph. 23 1 In calculating the fractions of years of service under 23 2 subparagraphs (1) and (2), a member shall not receive special 23 3 service credit for years of service for which the member and 23 4 the member's employer did not make the required special 23 5 service contributions to the department. 23 6 b. In calculating the combined monthly retirement 23 7 allowance pursuant to paragraph "a", the sum of the fraction 23 8 of years of service provided in paragraph "a", subparagraphs 23 9 (1), (2), and (3), shall not exceed one. If the sum of the 23 10 fractions of years of service would exceed one, the department 23 11 shall deduct years of service first from the calculation under 23 12 paragraph "a", subparagraph (3), and then from the calculation 23 13 under paragraph "a", subparagraph (2), if necessary, so that 23 14 the sum of the fractions of years of service shall equal one. 23 15 c. In calculating the combined monthly retirement 23 16 allowance pursuant to paragraph "a", for members retiring on 23 17 or after July 1, 1997, whose three-year average covered wage 23 18 exceeds fifty-five thousand dollars, each calculation under 23 19 paragraph "a", subparagraphs (1), (2), and (3) of this 23 20 subsection shall be subject to reduction, calculated in the 23 21 manner provided in subsection 5, paragraph "e". 23 22 Sec. 36. Section 97B.51, subsection 3, Code Supplement 23 23 1995, is amended to read as follows: 23 24 3. A member who had elected to take the option stated in 23 25 subsection 1 of this section may, at any time prior to 23 26 retirement, revoke such an election by written notice to the 23 27 department. A member shall not change or revoke an election 23 28 once the first retirement allowance is paid. 23 29 Sec. 37. Section 97B.51, subsection 5, Code Supplement 23 30 1995, is amended to read as follows: 23 31 5. At retirement, a member may designate that upon the 23 32 member's death, a specified amount of money shall be paid to a 23 33 named beneficiary, and the member's monthly retirement 23 34 allowance shall be reduced by an actuarially determined amount 23 35 to provide for the lump sum payment. The amount designated by 24 1 the member must be in thousand dollar increments, and theand 24 2 shall be limited to the amount of the member's accumulated 24 3 contributions. The amount designated shall not lower the 24 4 monthly retirement allowance of the member by more than one- 24 5 half the amount payable under section 97B.49, subsection 1 or 24 6 5. A member may designate a different beneficiary if the 24 7 original named beneficiary predeceases the member. 24 8 Sec. 38. Section 97B.51, subsection 6, Code Supplement 24 9 1995, is amended to read as follows: 24 10 6. A member may elect to receive a decreased retirement 24 11 allowance during the member's lifetime with provision that in 24 12 event of the member's death during the first one hundred 24 13 twenty months of retirement, monthly payments of the member's 24 14 decreased retirement allowance shall be made to the member's 24 15 beneficiary until a combined total of one hundred twenty 24 16 monthly payments have been made to the member and the member's 24 17 beneficiary. When the member designates multiple 24 18 beneficiaries, the present value of the remaining payments 24 19 shall be paid in a lump sum to each beneficiary, either in 24 20 equal shares to the beneficiaries, or if the member specifies 24 21 otherwise in a written request, in the specified proportion. 24 22 A member may designate a different beneficiary if the original 24 23 named beneficiary predeceases the member. 24 24 Sec. 39. Section 97B.52, subsection 1, Code Supplement 24 25 1995, is amended to read as follows: 24 26 1. If a member dies prior to the member's first month of 24 27 entitlement, the accumulated contributions of the member at 24 28 the date of death plus the product of an amount equal to the 24 29 highest year of covered wages of the deceased member and the 24 30 number of years of membership service divided bythirtythe 24 31 applicable denominator shall be paid to the member's 24 32 beneficiary in a lump sum payment. However, a lump sum 24 33 payment made to a beneficiary under this subsection due to the 24 34 death of a member shall not be less than the amount that would 24 35 have been payable on the death of the member on June 30, 1984, 25 1 under this subsection as it appeared in the 1983 Code. 25 2 As used in this subsection, "applicable denominator" means 25 3 the following, based upon the type of membership service in 25 4 which the member served either on the date of death, or if the 25 5 member died after terminating service, on the date of the 25 6 member's last termination of service: 25 7 a. For regular service, the applicable denominator is 25 8 thirty. 25 9 b. For service in a protection occupation, as defined in 25 10 section 97B.49, subsection 16, paragraph "d", the applicable 25 11 denominator is twenty-five. 25 12 c. For service as a sheriff, deputy sheriff, or airport 25 13 fire fighter, as provided in section 97B.49, subsection 16, 25 14 paragraph "b", the applicable denominator is twenty-two. 25 15 Effective July 1, 1978, a method of payment under this 25 16 subsection filed with the department by a member does not 25 17 apply. 25 18 Sec. 40. Section 97B.52, subsection 3, paragraph b, Code 25 19 Supplement 1995, is amended to read as follows: 25 20 b. If a death benefit is due and payable, interest shall 25 21 continue to accumulate through the month preceding the month 25 22 in which payment is made to the designated beneficiary, heirs 25 23 at law, or the estate unless the payment of the death benefit 25 24 is delayed because of a dispute between alleged heirs, in 25 25 which case the benefit due and payable shall be placed in a 25 26 noninterest bearing escrow account until the beneficiary is 25 27 determined in accordance with this section. In order to 25 28 receive the death benefit, the beneficiary, heirs at law, or 25 29 the estate, or any other third-party payee, must apply to the 25 30 department withintwofive years of the member's death. 25 31 The department shall reinstate a designated beneficiary's 25 32 right to receive a death benefit beyond the five-year 25 33 limitation if the designated beneficiary was the member's 25 34 spouse at the time of the member's death and the distribution 25 35 is required or permitted pursuant to Internal Revenue Code 26 1 section 401(a)(9) and the applicable treasury regulations. 26 2 Sec. 41. Section 97B.52, subsection 5, Code Supplement 26 3 1995, is amended to read as follows: 26 4 5. Following written notification to the department, a 26 5 beneficiary of a deceased member may waive current and future 26 6 rights to payments to which the beneficiary would otherwise be 26 7 entitled under sections 97B.51 and this section. Upon receipt 26 8 of the waiver, the department shall payto the estate of the26 9deceased memberthe amount designated to be received bythe26 10 that beneficiary to the member's other surviving beneficiary 26 11 or beneficiaries or to the estate of the deceased member, as 26 12 elected by the beneficiary in the waiver. If the payments 26 13 being waived are payable to the member's estate and an estate 26 14 is not probated, the payments shall be paid to the deceased 26 15 member's surviving spouse, or if there is no surviving spouse, 26 16 to the member's heirs other than the beneficiary who waived 26 17 the payments. 26 18 Sec. 42. Section 97B.52A, Code Supplement 1995, is amended 26 19 by adding the following new subsection: 26 20 NEW SUBSECTION. 3. A member who terminates covered 26 21 employment but maintains an employment relationship with an 26 22 employer that made contributions to the system on the member's 26 23 behalf does not have a bona fide retirement until all 26 24 employment, including employment which is not covered by this 26 25 chapter, with such employer is terminated for at least thirty 26 26 days. In order to receive retirement benefits, the member 26 27 must file a completed application for benefits form with the 26 28 department before returning to any employment with the same 26 29 employer. 26 30 Sec. 43. Section 97B.53, subsection 3, Code Supplement 26 31 1995, is amended to read as follows: 26 32 3. The accumulated contributions of a terminated, vested 26 33 member shall be credited with interest, including interest 26 34 dividends, in the manner provided in section 97B.70. Interest 26 35 and interest dividends shall be credited to the accumulated 27 1 contributions of members who terminate service and 27 2 subsequently become vested in accordance with section 97B.70. 27 3However, the department shall not implement the amendments to27 4this subsection or to subsection 6, unnumbered paragraph 1, or27 5to subsection 7, as enacted in 1994 Iowa Acts, chapter 1183,27 6unless and until the department determines that the most27 7recent annual actuarial valuation of the retirement system27 8indicates that the employer and employee contribution rates in27 9effect under section 97B.11 can absorb the amendments to these27 10provisions of this section and the amendments to section27 1197B.41, subsection 12, and section 97B.70, by enacting a new27 12subsection 4, contained in 1994 Iowa Acts, chapter 1183, after27 13meeting the other established priorities of the system, as27 14defined in section 97B.41, subsection 12. Until the27 15amendments are implemented, the department shall continue to27 16implement the provisions of section 97B.53, subsections 3 and27 177, and section 97B.53, subsection 6, unnumbered paragraph 1,27 181993 Code of Iowa.27 19 Sec. 44. Section 97B.53B, subsection 1, paragraph c, 27 20 subparagraph (4), Code 1995, is amended to read as follows: 27 21 (4)A distributionAnnual distributions of less than two 27 22 hundred dollars of taxable income. 27 23 Sec. 45. Section 97B.66, unnumbered paragraph 1, Code 27 24 Supplement 1995, is amended to read as follows: 27 25 A vested or retired member who was a member of the teachers 27 26 insurance and annuity association-college retirement equity 27 27 fund at any time between July 1, 1967 and June 30, 1971 and 27 28 who became a member of the system on July 1, 1971, upon 27 29 submitting verification of service and wages earned during the 27 30 applicable period of service under the teachers insurance and 27 31 annuity association-college retirement equity fund, may make 27 32 employer and employee contributions to the system based upon 27 33 the covered wages of the member and the covered wages and the 27 34 contribution rates in effect for all or a portion of that 27 35 period of service and receive credit for membership service 28 1 under this system equivalent to the applicable period of 28 2 membership service in the teachers insurance and annuity 28 3 association-college retirement equity fund for which the 28 4 contributions have been made. In addition, a member making 28 5 employer and employee contributions because of membership in 28 6 the teachers insurance and annuity association-college 28 7 retirement equity fund under this section who was a member of 28 8 the system on June 30, 1967 and withdrew the member's 28 9 accumulated contributions because of membership on July 1, 28 10 1967 in the teachers insurance and annuity association-college 28 11 retirement equity fund, may make employee contributions to the 28 12 system for all or a portion of the period of service under the 28 13 system prior to July 1, 1967. A member making contributions 28 14 pursuant to this section may make the contributions either for 28 15 the entire applicable period of service, or, effective upon28 16the date that the department determines that the amendments to28 17this paragraph and unnumbered paragraph 2 contained in 199428 18Iowa Acts, chapter 1183, shall be implemented,for portions of 28 19 the period of service, and if contributions are made for 28 20 portions of the period of service, the contributions shall be 28 21 in increments of one or moreyears, as long as the increments28 22represent full years and not a portion of a yearcalendar 28 23 quarters.However, the department shall not implement the28 24amendments to this paragraph or unnumbered paragraph 2, as28 25enacted in 1994 Iowa Acts, chapter 1183, unless and until the28 26department determines that the most recent annual actuarial28 27valuation of the retirement system indicates that the employer28 28and employee contribution rates in effect under section 97B.1128 29can absorb the amendments to this paragraph and unnumbered28 30paragraph 2 and to section 97B.72, unnumbered paragraphs 1 and28 312, section 97B.72A, subsection 1, unnumbered paragraph 1,28 32section 97B.73A, unnumbered paragraph 1, and section 97B.74,28 33unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,28 34chapter 1183, after meeting the other established priority of28 35the system. Until the amendments are implemented, the29 1department shall continue to implement the provisions of29 2section 97B.66, unnumbered paragraphs 1 and 2, Code Supplement29 31993. As used in this section, unless the context otherwise29 4requires, "other established priority of the system" means29 5that commencing January 1 following the most recent annual29 6actuarial valuation of the system, the department has29 7increased the covered wage limitation from the previous year29 8by three thousand dollars, in accordance with section 97B.41,29 9subsection 20, paragraph "b", subparagraph (11).29 10 Sec. 46. Section 97B.66, unnumbered paragraph 2, Code 29 11 Supplement 1995, is amended to read as follows: 29 12 The contributions paid by the vested or retired member 29 13 shall be equal to the accumulated contributions as defined in 29 14 section 97B.41, subsection 2, by the member for the applicable 29 15 period of service, and the employer contribution for the 29 16 applicable period of service under the teachers insurance and 29 17 annuity association-college retirement equity fund, that would 29 18 have been or had been contributed by the vested or retired 29 19 member and the employer, if applicable, plus interest on the 29 20 contributions that would have accrued for the applicable 29 21 period from the date the previous applicable period of service 29 22 commenced under this system or from the date the service of 29 23 the member in the teachers insurance and annuity association- 29 24 college retirement equity fund commenced to the date of 29 25 payment of the contributions by the memberequal to two29 26percent plus the interest dividend rate applicable for each29 27yearas provided in section 97B.70. 29 28 Sec. 47. Section 97B.68, subsection 1, Code 1995, is 29 29 amended to read as follows: 29 30 1. Effective July 1,19881996, a person who is a member 29 31 of the federal civil service retirement program or the federal 29 32 employee's retirement system is not eligible for membership in 29 33 the Iowa public employees' retirement system for the same 29 34 position, and this chapter does not apply to that employee. 29 35 An employee whose membership in the federal civil service 30 1 retirement program or the federal employee's retirement system 30 2 is subsequently terminated shall immediately notify the 30 3 employee's employer and the department of personnel of that 30 4 fact, and the employee shall become subject to this chapter on 30 5 the date the notification is received by the department. 30 6 Sec. 48. Section 97B.68, Code 1995, is amended by adding 30 7 the following new subsection: 30 8 NEW SUBSECTION. 3. Effective July 1, 1996, an employee 30 9 who participates in the federal civil service retirement 30 10 program or the federal employee's retirement system may be 30 11 covered under this chapter if otherwise eligible. The 30 12 employee shall not be covered under this chapter, however, 30 13 unless the employee is not credited for service in the federal 30 14 civil service retirement system or the federal employee's 30 15 retirement system for the position to be covered under this 30 16 chapter. This subsection shall not be construed to permit any 30 17 employer to contribute on behalf of an employee for the same 30 18 position and the same period of service to both the Iowa 30 19 public employees' retirement system and either the federal 30 20 civil service retirement program or the federal employee's 30 21 retirement system. 30 22 Sec. 49. Section 97B.70, Code Supplement 1995, is amended 30 23 to read as follows: 30 24 97B.70 INTEREST AND DIVIDENDS TO MEMBERS. 30 25 1.InterestFor calendar years prior to January 1, 1997, 30 26 interest at two percent per annum and interest dividends 30 27 declared by the department shall be credited to the member's 30 28 contributions and the employer's contributions to become part 30 29 of the accumulated contributions thereby. 30 301.a. The average rate of interest earned shall be 30 31 determined upon the following basis: 30 32a.(1) Investment income shall include interest and cash 30 33 dividends on stock. 30 34b.(2) Investment income shall be accounted for on an 30 35 accrual basis. 31 1c.(3) Capital gains and losses, realized or unrealized, 31 2 shall not be included in investment income. 31 3d.(4) Mean assets shall include fixed income investments 31 4 valued at cost or on an amortized basis, and common stocks at 31 5 market values or cost, whichever is lower. 31 6e.(5) The average rate of earned interest shall be the 31 7 quotient of the investment income and the mean assets of the 31 8 retirement fund. 31 92.b. The interest dividend shall be determined within 31 10 sixty days after the end of each calendar year as follows: 31 11 The dividend rate for a calendar year shall be the excess 31 12 of the average rate of interest earned for the year over the 31 13 statutory two percent rate plus twenty-five hundredths of one 31 14 percent. The average rate of interest earned and the interest 31 15 dividend rate in percent shall be calculated to the nearest 31 16 one hundredth, that is, to two decimal places. Interest and 31 17 interest dividends calculated pursuant to this subsection 31 18 shall be compounded annually. 31 19 2. For calendar years beginning January 1, 1997, a per 31 20 annum interest rate at one percent above the interest rate on 31 21 one-year certificates of deposit shall be credited to the 31 22 member's contributions and the employer's contributions to 31 23 become part of the accumulated contributions. For purposes of 31 24 this subsection, the interest rate on one-year certificates of 31 25 deposit shall be determined by the department based on the 31 26 average rate for such certificates of deposit as of January 10 31 27 of each year as published in a publication of general 31 28 acceptance in the business community. The per annum interest 31 29 rate shall be credited on a quarterly basis by applying one- 31 30 quarter of the annual interest rate to the sum of the 31 31 accumulated contributions as of the end of the previous 31 32 calendar quarter. 31 33 3. Interest and interest dividends shall be credited to 31 34 the contributions of active members and inactive vested 31 35 members until the first of the month coinciding with or next 32 1 following the member's retirement date. 32 2 4.Effective upon the date that the department determines32 3that this subsection shall be implemented, interestInterest 32 4 and interest dividends shall be credited to the contributions 32 5 of a person who leaves the contributions in the retirement 32 6 fund upon termination from covered employment prior to 32 7 achieving vested status, but who subsequently achieves vested 32 8 status. The interest and interest dividends shall be credited 32 9 to the contributions commencingeitheruponthe date that the32 10department determines that this subsection shall be32 11implemented, orthe date on which the person becomes a vested 32 12 member, whichever is later. Interest and interest dividends 32 13 shall cease upon the first of the month coinciding with or 32 14 next following the person's retirement date. If the 32 15 department no longer maintains the accumulated contribution 32 16 account of the person pursuant to section 97B.53, but the 32 17 person submits satisfactory proof to the department that the 32 18 person did make the contributions, the department shall credit 32 19 interest and interest dividends in the manner provided in this 32 20 subsection.However, the department shall not implement this32 21subsection, unless and until the department determines that32 22the most recent annual actuarial valuation of the retirement32 23system indicates that the employer and employee contribution32 24rates in effect under section 97B.11 can absorb the enactment32 25of this subsection and the amendments to section 97B.41,32 26subsection 12, section 97B.53, subsections 3 and 7, and32 27section 97B.53, subsection 6, unnumbered paragraph 1,32 28contained in 1994 Iowa Acts, chapter 1183, after meeting the32 29other established priorities of the system, as defined in32 30section 97B.41, subsection 12.32 31 Sec. 50. Section 97B.72, unnumbered paragraphs 1 and 2, 32 32 Code Supplement 1995, are amended to read as follows: 32 33 Persons who are members of the Seventy-first General 32 34 Assembly or a succeeding general assembly who submit proof to 32 35 the department of membership in the general assembly during 33 1 any period beginning July 4, 1953, may make contributions to 33 2 the system for all or a portion of the period of service in 33 3 the general assembly, and receive credit for the applicable 33 4 period for which contributions are made. The contributions 33 5 made by the member shall be equal to the accumulated 33 6 contributions as defined in section 97B.41, subsection 2, 33 7 which would have been made if the member of the general 33 8 assembly had been a member of the system during the applicable 33 9 period. The proof of membership in the general assembly and 33 10 payment of accumulated contributions shall be transmitted to 33 11 the department. A member making contributions pursuant to 33 12 this section may make the contributions either for the entire 33 13 applicable period of service, or, effective upon the date that33 14the department determines that the amendments to this33 15paragraph and unnumbered paragraph 2 contained in 1994 Iowa33 16Acts, chapter 1183, shall be implemented,for portions of the 33 17 period of service, and if contributions are made for portions 33 18 of the period of service, the contributions shall be in 33 19 increments of one or moreyears, as long as the increments33 20represent full years and not a portion of a yearcalendar 33 21 quarters.However, the department shall not implement the33 22amendments to this paragraph or unnumbered paragraph 2, as33 23enacted in 1994 Iowa Acts, chapter 1183, unless and until the33 24department determines that the most recent annual actuarial33 25valuation of the retirement system indicates that the employer33 26and employee contribution rates in effect under section 97B.1133 27can absorb the amendments to this paragraph and unnumbered33 28paragraph 2 and to section 97B.66, unnumbered paragraphs 1 and33 292, section 97B.72A, subsection 1, unnumbered paragraph 1,33 30section 97B.73A, unnumbered paragraph 1, and section 97B.74,33 31unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,33 32chapter 1183, after meeting the other established priority of33 33the system, as defined in section 97B.66. Until the33 34amendments are implemented, the department shall continue to33 35implement the provisions of section 97B.72, unnumbered34 1paragraphs 1 and 2, Code Supplement 1993.34 2 There is appropriated from moneys available to the general 34 3 assembly under section 2.12 an amount sufficient to pay the 34 4 contributions of the employer based on the period of service 34 5 for which the members have paid accumulated contributions in 34 6 an amount equal to the contributions which would have been 34 7 made if the members of the general assembly who made employee 34 8 contributions had been members of the system during the 34 9 applicable period of service in the general assembly plustwo34 10percentinterestplusand interest dividends at the rate 34 11 provided in section 97B.70 for all completed calendar years, 34 12 and for any completed calendar year for which the interest 34 13 dividend has not been declared and for completed months of 34 14 partially completed calendar yearsat two percent interest34 15plus the interest dividend rate calculated for the previous34 16year, compoundedannually, from the end of the calendar year34 17in which contribution was made to the first day of the month34 18of such dateas provided in section 97B.70. 34 19 Sec. 51. Section 97B.72A, subsection 1, Code Supplement 34 20 1995, is amended to read as follows: 34 21 1.An active orA vested or retired member of the system 34 22 who was a member of the general assembly prior to July 1, 34 23 1988, may make contributions to the system for all or a 34 24 portion of the period of service in the general assembly. The 34 25 contributions made by the member shall be equal to the 34 26 accumulated contributions as defined in section 97B.41, 34 27 subsection 2, which would have been made if the member of the 34 28 general assembly had been a member of the system during the 34 29 applicable period of service in the general assembly. A 34 30 member making contributions pursuant to this section may make 34 31 the contributions either for the entire applicable period of 34 32 service, or for portions of the period of service, and,34 33effective upon the date that the department determines that34 34the amendments to this paragraph contained in 1994 Iowa Acts,34 35chapter 1183, shall be implemented,if contributions are made 35 1 for portions of the period of service, the contributions shall 35 2 be in increments of one or moreyears, as long as the35 3increments represent full years and not a portion of a year35 4 calendar quarters. The member of the system shall submit 35 5 proof to the department of membership in the general assembly. 35 6 The department shall credit the member with the period of 35 7 membership service for which contributions are made.However,35 8the department shall not implement the amendments to this35 9paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless35 10and until the department determines that the most recent35 11annual actuarial valuation of the retirement system indicates35 12that the employer and employee contribution rates in effect35 13under section 97B.11 can absorb the amendments to this35 14paragraph and to section 97B.66, unnumbered paragraphs 1 and35 152, section 97B.72, unnumbered paragraphs 1 and 2, section35 1697B.73A, unnumbered paragraph 1, and section 97B.74,35 17unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,35 18chapter 1183, after meeting the other established priority of35 19the system, as defined in section 97B.66. Until the35 20amendments are implemented, the department shall continue to35 21implement the provisions of section 97B.72A, subsection 1,35 22unnumbered paragraph 1, Code Supplement 1993.35 23 There is appropriated from the general fund of the state to 35 24 the department an amount sufficient to pay the contributions 35 25 of the employer based on the period of service of members of 35 26 the general assembly for which the member paid accumulated 35 27 contributions under this section. The amount appropriated is 35 28 equal to the employer contributions which would have been made 35 29 if the members of the system who made employee contributions 35 30 had been members of the system during the period for which 35 31 they made employee contributions plustwo percentinterest 35 32plus the interest dividend rate applicableat the rate 35 33 provided in section 97B.70 for each year compoundedannually35 34 as provided in section 97B.70. 35 35 Sec. 52. Section 97B.73, unnumbered paragraph 1, Code 36 1 1995, is amended to read as follows: 36 2 A vested or retired member who was in public employment 36 3 comparable to employment covered under this chapter in another 36 4 state or in the federal government, or who was a member of 36 5 another public retirement system in this state, including but 36 6 not limited to the teachers insurance annuity association- 36 7 college retirement equities fund, but who was not retired 36 8 under that system, upon submitting verification of membership 36 9 and service in the other public system to the department, 36 10 including proof that the member has no further claim upon a 36 11 retirement benefit from that other public system, may make 36 12 employer and employee contributions to the system either for 36 13 the entire period of service in the other public system, or 36 14 for partial service in the other public system in increments 36 15 of one or moreyears, as long as the increments represent full36 16years and not a portion of a yearcalendar quarters.The36 17member may also make one lump sum contribution to the system36 18which represents the entire period of service in the other36 19public system, even if the period of time exceeds one year or36 20includes a portion of a year.If the member wishes to 36 21 transfer only a portion of the service value of another public 36 22 system to this system and the other public system allows a 36 23 partial withdrawal of a member's system credits, the member 36 24 shall receive credit for membership service in this system 36 25 equivalent to thenumber of yearsperiod of service 36 26 transferred from the other public system. The contribution 36 27 payable shall be based upon the member's covered wages for the 36 28 most recent full calendar year at the applicable rates in 36 29 effect for that calendar year under sections 97B.11 and 97B.49 36 30 and multiplied by the member's years of service in other 36 31 public employment. If the member's most recent covered wages 36 32 were earned prior to the most recent calendar year, the 36 33 member's covered wages shall be adjusted by the department by 36 34 an inflation factor to reflect changes in the economy since 36 35 the covered wages were earned. 37 1 Sec. 53. Section 97B.73A, unnumbered paragraph 1, Code 37 2 Supplement 1995, is amended to read as follows: 37 3 A part-time county attorney may elect in writing to the 37 4 department to make employee contributions to the system for 37 5 the county attorney's previous service as a county attorney 37 6 and receive credit for membership service in the system for 37 7 the applicable period of service as a part-time county 37 8 attorney for which employee contributions are made. The 37 9 contributions paid by the member shall be equal to the 37 10 accumulated contributions, as defined in section 97B.41, 37 11 subsection 2, for the applicable period of membership service. 37 12 A member making contributions pursuant to this section may 37 13 make the contributions either for the entire applicable period 37 14 of service, or, effective upon the date that the department37 15determines that the amendments to this paragraph contained in37 161994 Iowa Acts, chapter 1183, shall be implemented,for 37 17 portions of the period of service, and if contributions are 37 18 made for portions of the period of service, the contributions 37 19 shall be in increments of one or moreyears, as long as the37 20increments represent full years and not a portion of a year37 21 calendar quarters. A member who elects to make contributions 37 22 under this section shall notify the applicable county board of 37 23 supervisors of the member's election, and the county board of 37 24 supervisors shall pay to the department the employer 37 25 contributions that would have been contributed by the employer 37 26 under section 97B.11 plus interest on the contributions that 37 27 would have accrued if the county attorney had been a member of 37 28 the system for the applicable period of service.However, the37 29department shall not implement the amendments to this37 30paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless37 31and until the department determines that the most recent37 32annual actuarial valuation of the retirement system indicates37 33that the employer and employee contribution rates in effect37 34under section 97B.11 can absorb the amendments to this37 35paragraph and to section 97B.66, unnumbered paragraphs 1 and38 12, section 97B.72, unnumbered paragraphs 1 and 2, section38 297B.72A, subsection 1, unnumbered paragraph 1, and section38 397B.74, unnumbered paragraphs 1 and 2, contained in 1994 Iowa38 4Acts, chapter 1183, after meeting the other established38 5priority of the system, as defined in section 97B.66. Until38 6the amendments are implemented, the department shall continue38 7to implement the provisions of section 97B.73A, unnumbered38 8paragraph 1, Code Supplement 1993.38 9 Sec. 54. Section 97B.74, unnumbered paragraphs 1 and 2, 38 10 Code Supplement 1995, are amended to read as follows: 38 11An active,A vested,or retired member who was a member of 38 12 the system at any time on or after July 4, 1953, and who 38 13 received a refund of the member's contributions for that 38 14 period of membership service, may elect in writing to the 38 15 department to make contributions to the system for all or a 38 16 portion of the period of membership service for which a refund 38 17 of contributions was made, and receive credit for the period 38 18 of membership service for which contributions are made. The 38 19 contributions repaid by the member for such service shall be 38 20 equal to the accumulated contributions, as defined in section 38 21 97B.41, subsection 2, received by the member for the 38 22 applicable period of membership service plus interest on the 38 23 accumulated contributions for the applicable period from the 38 24 date of receipt by the member to the date of repaymentequal38 25to two percent plusat the interestdividendrate provided in 38 26 section 97B.70 applicable for each year compoundedannuallyas 38 27 provided in section 97B.70. 38 28An active member must have at least one quarter's38 29reportable wages on file and have membership service,38 30including that period of membership service for which a refund38 31of contributions was made, sufficient to give the member38 32vested status.A member making contributions pursuant to this 38 33 section may make the contributions either for the entire 38 34 applicable period of service, or, effective upon the date that38 35the department determines that the amendments to this39 1paragraph and unnumbered paragraph 1 contained in 1994 Iowa39 2Acts, chapter 1183, shall be implemented,for portions of the 39 3 period of service, and if contributions are made for portions 39 4 of the period of service, the contributions shall be in 39 5 increments of one or moreyears, as long as the increments39 6represent full years and not a portion of a yearcalendar 39 7 quarters.However, the department shall not implement the39 8amendments to this paragraph or unnumbered paragraph 1, as39 9enacted in 1994 Iowa Acts, chapter 1183, unless and until the39 10department determines that the most recent annual actuarial39 11valuation of the retirement system indicates that the employer39 12and employee contribution rates in effect under section 97B.1139 13can absorb the amendments to this paragraph and to unnumbered39 14paragraph 1 and to section 97B.66, unnumbered paragraphs 1 and39 152, section 97B.72, unnumbered paragraphs 1 and 2, section39 1697B.72A, subsection 1, unnumbered paragraph 1, and section39 1797B.73A, unnumbered paragraph 1, contained in 1994 Iowa Acts,39 18chapter 1183, after meeting the other established priority of39 19the system, as defined in section 97B.66. Until the39 20amendments are implemented, the department shall continue to39 21implement the provisions of section 97B.74, unnumbered39 22paragraphs 1 and 2, Code Supplement 1993.39 23 Sec. 55. Section 97B.80, unnumbered paragraph 1, Code 39 24 1995, is amended to read as follows: 39 25 Effective July 1, 1992, a vested or retired member, who at 39 26 any time served on active duty in the armed forces of the 39 27 United States, upon submitting verification of the dates of 39 28 the active duty service, may make employer and employee 39 29 contributions to the system based upon the member's covered 39 30 wages for the most recent full calendar year in which the 39 31 member had reportable wages at the applicable rates in effect 39 32 for that year under sections 97B.11 and 97B.49, for all or a 39 33 portion of the period of time of the active duty service, in 39 34 increments ofno greater than one year and not less thanone 39 35 or more calendarquarterquarters, and receive credit for 40 1 membership service and prior service for the period of time 40 2 for which the contributions are made.However, the member may40 3not make contributions in an increment of less than one year40 4more than once. The member may also make one lump sum40 5contribution to the system which represents the period of time40 6of the active duty service, even if the period of time exceeds40 7one year.If the member's most recent covered wages were 40 8 earned prior to the most recent calendar year, the member's 40 9 covered wages shall be adjusted by the department by an 40 10 inflation factor to reflect changes in the economy. The 40 11 department shall adjust benefits for a six-month period prior 40 12 to the date the member pays contributions under this section 40 13 if the member is receiving a retirement allowance at the time 40 14 the contribution payment is made. Verification of active duty 40 15 service and payment of contributions shall be made to the 40 16 department. However, a member is not eligible to make 40 17 contributions under this section if the member is receiving, 40 18 is eligible to receive, or may in the future be eligible to 40 19 receive retirement pay from the United States government for 40 20 active duty in the armed forces, except for retirement pay 40 21 granted by the United States government under retired pay for 40 22 nonregular service (10 U.S.C. } 1331, et seq.). A member 40 23 receiving retired pay for nonregular service who makes 40 24 contributions under this section shall provide information 40 25 required by the department documenting time periods covered 40 26 under retired pay for nonregular service. 40 27 DIVISION II 40 28 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 40 29 ACCIDENT, AND DISABILITY SYSTEM 40 30 Sec. 56. Section 97A.5, subsection 9, Code 1995, is 40 31 amended to read as follows: 40 32 9. DUTIES OFCOMMISSIONER OF INSURANCEACTUARY. Thestate40 33commissioner of insuranceactuary hired by the board of 40 34 trustees shall be the technical advisor of the board of 40 35 trustees on matters regarding the operation of the funds 41 1 created by the provisions of this chapter and shall perform 41 2 such other duties as are required in connection therewith. 41 3 Sec. 57. Section 97A.5, subsections 10 through 12, Code 41 4 1995, are amended to read as follows: 41 5 10. TABLES – RATES.Immediately after the establishment41 6of this system, the state commissioner of insuranceThe 41 7 actuary hired by the board of trustees shall make such 41 8 investigation of anticipated interest earnings and of the 41 9 mortality, service, and compensation experience of the members 41 10 of the system as the actuaryshall recommend and the board of41 11trustees shall authorizerecommends, and on the basis ofsuch41 12 the investigation, theactuary shall recommend for adoption by41 13theboard of trusteessuchshall adopt the tables andsuchthe 41 14 rates as are required in subsection 11 of this section. The 41 15 board of trustees shall adopt the rate of interest and tables, 41 16 and certify rates of contributions to be used by the system. 41 17 11. ACTUARIAL INVESTIGATION.In the year 1952, and atAt 41 18 least once in each two-year periodthereafter,the state41 19commissioner of insurancethe actuary hired by the board of 41 20 trustees shall make an actuarial investigation in the 41 21 mortality, service, and compensation experience of the members 41 22 and beneficiaries of the system, and the interest and other 41 23 earnings on the moneys and other assets of the system, and 41 24 shall make a valuation of the assets and liabilities of the 41 25 funds of the system, and taking into account the results of 41 26suchthe investigation and valuation, the board of trustees 41 27 shall: 41 28 a. Adopt for the system such interest rate, mortality and 41 29 other tables as shall be deemed necessary; 41 30 b. Certify the rates of contribution payable by the state 41 31 of Iowa in accordance with section 97A.8. 41 32 12. VALUATION. On the basis ofsuchthe rate of interest 41 33 andsuchtablesasadopted by the board of trusteesshall41 34adopt,the state commissioner of insurancethe actuary hired 41 35 by the board of trustees shall make an annual valuation of the 42 1 assets and liabilities of the funds of the system created by 42 2 this chapter. 42 3 Sec. 58. Section 97A.5, Code 1995, is amended by adding 42 4 the following new subsections: 42 5 NEW SUBSECTION. 14. INVESTMENT CONTRACTS. The board of 42 6 trustees may execute contracts and agreements with investment 42 7 advisors, consultants, and investment management and benefit 42 8 consultant firms in the administration of the funds 42 9 established in section 97A.8. 42 10 NEW SUBSECTION. 15. LIABILITY. The department, the board 42 11 of trustees, and the treasurer of state are not personally 42 12 liable for claims based upon an act or omission of the person 42 13 performed in the discharge of the person's duties under this 42 14 chapter, even if those actions or omissions violate the 42 15 standards established in section 97A.7, except for acts or 42 16 omissions which involve malicious or wanton misconduct. 42 17 Sec. 59. Section 97A.6, subsection 1, paragraph a, Code 42 18 1995, is amended to read as follows: 42 19 a. Any member in service may retire upon the member's 42 20 written application to the board of trustees, setting forth at 42 21 what time, not less than thirty nor more than ninety days 42 22 subsequent to the execution and filing therefor, the member 42 23 desires to be retired, provided, that the said member at the 42 24 time so specified for retirement shall have attained the age 42 25 of fifty-five and shall have completed twenty-two years or 42 26 more of creditable service, and notwithstanding that, during 42 27 such period of notification, the member may have separated 42 28 from the service. However, a member may retire at fifty years 42 29 of age and receive a reduced retirement allowance pursuant to 42 30 subsection 2A. 42 31 Sec. 60. Section 97A.6, subsection 2, paragraph d, 42 32 subparagraph (3), Code 1995, is amended to read as follows: 42 33 (3) For a member who terminates service, other than by 42 34 death or disability, on or after October 16, 1992, but before 42 35 July 1, 1996, and who does not withdraw the member's 43 1 contributions pursuant to section 97A.16, upon the member's 43 2 retirement there shall be added six-tenths percent of the 43 3 member's average final compensation for each year of service 43 4 over twenty-two years. However, this subparagraph does not 43 5 apply to more than eight additional years of service. 43 6 Sec. 61. Section 97A.6, subsection 2, paragraph d, Code 43 7 1995, is amended by adding the following new subparagraph: 43 8 NEW SUBPARAGRAPH. (4) For a member who terminates 43 9 service, other than by death or disability, on or after July 43 10 1, 1996, and who does not withdraw the member's contributions 43 11 pursuant to section 97A.16, upon the member's retirement there 43 12 shall be added one and one-half percent of the member's 43 13 average final compensation for each year of service over 43 14 twenty-two years. However, this subparagraph does not apply 43 15 to more than eight additional years of service. 43 16 Sec. 62. Section 97A.6, subsection 10, Code 1995, is 43 17 amended to read as follows: 43 18 10. OPTIONAL ALLOWANCE. With the provision that no 43 19 optional selection shall be effective in case a beneficiary 43 20 dies within thirty days after retirement, in which event such 43 21 a beneficiary shall be considered as an active member at the 43 22 time of death, until the first payment on account of any 43 23 benefit becomes normally due, any beneficiary may elect to 43 24 receive the beneficiary's benefit in a retirement allowance 43 25 payable throughout life, or may elect to receive the actuarial 43 26 equivalent at that time of the beneficiary's retirement 43 27 allowance in a lesser retirement allowance payable throughout 43 28 life with the provision that an amount in money not exceeding 43 29 the amount of the beneficiary's accumulated contributions 43 30 shall be immediately paid in cash to such member or some other 43 31 benefit or benefits shall be paid either to the member or to 43 32 such person or persons as the member shall nominate, provided 43 33 such cash payment or other benefit or benefits, together with 43 34 the lesser retirement allowance, shall be certified by the 43 35state commissioner of insuranceactuary to be of equivalent 44 1 actuarial value to the member's retirement allowance and shall 44 2 be approved by the board of trustees; provided, that a cash 44 3 payment to such member or beneficiary at the time of 44 4 retirement of an amount not exceeding fifty percent of the 44 5 member's or beneficiary's accumulated contributions shall be 44 6 made by the board of trustees upon said member's or 44 7 beneficiary's election. 44 8 Sec. 63. Section 97A.6, subsection 12, unnumbered 44 9 paragraph 1, Code 1995, is amended to read as follows: 44 10 Pension to surviving spouse and children of deceased 44 11 pensioned members. In the event of the death of any member 44 12 receiving a retirement allowance under the provisions of 44 13 subsections 2, 2A, 4, or 6 of this section there shall be paid 44 14 a pension: 44 15 Sec. 64. Section 97A.6, subsection 12, paragraph a, Code 44 16 1995, is amended to read as follows: 44 17 a. To the member's surviving spouse, equal to one-half the 44 18 amount received by the deceased beneficiary, but in no 44 19 instance less than an amount equal totwentytwenty-five 44 20 percent of the monthly earnable compensation paid to an active 44 21 member having the rank of senior patrol officer of the Iowa 44 22 highway safety patrol, and in addition a monthly pension equal 44 23 to the monthly pension payable under subsection 9, paragraph 44 24 "c," of this section for each child under eighteen years of 44 25 age or twenty-two years of age if applicable; or 44 26 Sec. 65. Section 97A.6, subsection 14, paragraph a, 44 27 subparagraphs (1), (2), and (3), Code 1995, are amended to 44 28 read as follows: 44 29 (1)Twenty-fiveThirty percent for members receiving a 44 30 service retirement allowance and for beneficiaries receiving a 44 31 pension under subsection 9 of this section.However,44 32effective July 1, 1990, for members who retired before that44 33date, thirty percent shall be the applicable percentage for44 34members and beneficiaries under this subparagraph.44 35 (2)Twenty-fiveThirty percent for members with five or 45 1 more years of membership service who are receiving an ordinary 45 2 disability retirement allowance.However, effective July 1,45 31990, for members who retired before that date, thirty percent45 4shall be the applicable percentage for members under this45 5subparagraph.45 6 (3)Twelve and one-halfFifteen percent for members with 45 7 less than five years of membership service who are receiving 45 8 an ordinary disability retirement allowance, and for 45 9 beneficiaries receiving a pension under subsection 8 of this 45 10 section.However, effective July 1, 1990, for members who45 11retired before that date, fifteen percent shall be the45 12applicable percentage for members and beneficiaries under this45 13subparagraph.45 14 Sec. 66. Section 97A.6, subsection 14, paragraph d, Code 45 15 1995, is amended to read as follows: 45 16 d. A retired member eligible for benefits under the 45 17 provisions of subsection 1 is not eligible for the annual 45 18 readjustment of pensions provided in this subsection unless 45 19 the member served at least twenty-two yearsand attained the45 20age of fifty-five yearsprior to the member's termination of 45 21 employment. 45 22 Sec. 67. Section 97A.6, Code 1995, is amended by adding 45 23 the following new subsection: 45 24 NEW SUBSECTION. 2A. EARLY RETIREMENT BENEFITS. 45 25 a. Notwithstanding the calculation of the service 45 26 retirement allowance under subsection 2, beginning July 1, 45 27 1996, a member who has completed twenty-two years or more of 45 28 creditable service and is at least fifty years of age, but 45 29 less than fifty-five years of age, who has otherwise completed 45 30 the requirements for retirement under subsection 1, may retire 45 31 and receive a reduced service retirement allowance pursuant to 45 32 this subsection. The service retirement allowance for a 45 33 member less than fifty-five years of age shall be calculated 45 34 in the manner prescribed in subsection 2, except that the 45 35 percentage multiplier of the member's average final 46 1 compensation used in the determination of the service 46 2 retirement allowance shall be reduced by the board of trustees 46 3 pursuant to paragraph "b". 46 4 b. On July 1, 1996, and on each July 1 thereafter, the 46 5 board of trustees shall determine for the respective fiscal 46 6 year the percent by which the percentage multiplier under 46 7 subsection 2 shall be reduced for each month that a member's 46 8 retirement date precedes the member's fifty-fifth birthday. 46 9 The board of trustees shall make this determination based upon 46 10 the most recent actuarial valuation of the system, the 46 11 calculation of the acturial cost for each month of retirement 46 12 of a member prior to age fifty-five, and the premise that the 46 13 provision of a service retirement allowance to a member who is 46 14 less than fifty-five years of age will not result in any 46 15 increase in cost to the system. 46 16 Sec. 68. Section 97A.7, subsection 2, Code 1995, is 46 17 amended to read as follows: 46 18 2. The several funds created by this chapter may be 46 19 invested in:46 20a. Bonds or other evidences of indebtedness issued,46 21assumed, or guaranteed by the United States of America, or by46 22any agency or instrumentality thereof.46 23b. In savings accounts or time deposits in Iowa banks46 24approved as depositories by the executive council.46 25c. Inany investments authorized for the Iowa public 46 26 employees' retirement system in section 97B.7, subsection 2, 46 27 paragraph "b". 46 28 Sec. 69. Section 97A.8, subsection 1, paragraph b, Code 46 29 1995, is amended to read as follows: 46 30 b. On the basis of the rate of interest and of the 46 31 mortality, interest, and other tables adopted by the board of 46 32 trustees, thestate commissioner of insuranceboard of 46 33 trustees, upon the advice of the actuary hired by the board 46 34 for that purpose, shall make each valuation required by this 46 35 chapter and shall immediately after making such valuation, 47 1 determine the "normal contribution rate". The normal 47 2 contribution rate shall be the rate percent of the earnable 47 3 compensation of all members obtained by deducting from the 47 4 total liabilities of the fund the sum of the amount of the 47 5 funds in hand to the credit of the fund and dividing the 47 6 remainder by one percent of the present value of the 47 7 prospective future compensation of all members as computed on 47 8 the basis of the rate of interest and of mortality and service 47 9 tables adopted by the board of trustees, all reduced by the 47 10 employee contribution made pursuant to this subsection. 47 11 However, the normal rate of contribution shall not be less 47 12 than seventeen percent. The normal rate of contribution shall 47 13 be determined by thestate commissioner of insuranceboard of 47 14 trustees after each valuation. 47 15 Sec. 70. Section 97A.8, subsection 1, paragraph c, 47 16 unnumbered paragraph 3, Code 1995, is amended by striking the 47 17 unnumbered paragraph. 47 18 Sec. 71. Section 97A.8, subsection 1, paragraph f, 47 19 subparagraph (8), Code 1995, is amended to read as follows: 47 20 (8) Notwithstanding any other provision of this chapter, 47 21 beginning July 1, 1996, and each fiscal year thereafter,the47 22member's contribution rate shall be equivalent to the member's47 23contribution rate provided under section 411.8, subsection 1,47 24paragraph "f", for the statewide fire and police retirement47 25system for the applicable fiscal yearan amount equal to the 47 26 member's contribution rate times each member's compensation 47 27 shall be paid to the pension accumulation fund from the 47 28 earnable compensation of the member. For the purposes of this 47 29 subparagraph, the member's contribution rate shall be nine and 47 30 thirty-five hundredths percent. However, the system shall 47 31 increase the member's contribution rate as necessary to cover 47 32 any increase in cost to the system resulting from statutory 47 33 changes which are enacted by any session of the general 47 34 assembly meeting after January 1, 1995, if the increase cannot 47 35 be absorbed within the contribution rates otherwise 48 1 established pursuant to this paragraph, but subject to a 48 2 maximum employee contribution rate of eleven and three-tenths 48 3 percent. After the employee contribution reaches eleven and 48 4 three-tenths percent, sixty percent of the additional cost of 48 5 such statutory changes shall be paid by the employer under 48 6 paragraph "c" and forty percent of the additional cost shall 48 7 be paid by employees under this paragraph. 48 8 Sec. 72. Section 97A.8, subsection 3, Code 1995, is 48 9 amended to read as follows: 48 10 3. EXPENSE FUND. The expense fund shall be the fund to 48 11 which shall be credited all money provided by the state of 48 12 Iowa to pay the administration expenses of the system and from 48 13 which shall be paid all the expenses necessary in connection 48 14 with the administration and operation of the system. 48 15 Biennially the board of trustees shall estimate the amount of 48 16 money necessary to be paid into the expense fund during the 48 17 ensuing biennium to provide for the expense of operation of 48 18 the system. Investment management expenses shall be charged 48 19 to the investment income of the system and there is 48 20 appropriated from the system an amount required for the 48 21 investment management expenses. The board of trustees shall 48 22 report the investment management expenses for the fiscal year 48 23 as a percent of the market value of the system. 48 24 For purposes of this subsection, investment management 48 25 expenses are limited to the following: 48 26 a. Fees for investment advisors, consultants, and 48 27 investment management and benefit consultant firms hired by 48 28 the board of trustees in administering this chapter. 48 29 b. Fees and costs for safekeeping fund assets. 48 30 c. Costs for performance and compliance monitoring, and 48 31 accounting for fund investments. 48 32 d. Any other costs necessary to prudently invest or 48 33 protect the assets of the fund. 48 34 Sec. 73. Section 97A.12, Code 1995, is amended to read as 48 35 follows: 49 1 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR 49 2 ASSIGNMENT. 49 3 The right of any person to a pension, annuity, or 49 4 retirement allowance, to the return of contributions, the 49 5 pension, annuity, or retirement allowance itself, any optional 49 6 benefit or death benefit, any other right accrued or accruing 49 7 to any person under this chapter, and the moneys in the 49 8 various funds created under this chapter, are not subject to 49 9 execution, garnishment, attachment, or any other process 49 10 whatsoever, and are unassignable except for the purposes of 49 11 enforcing child, spousal, or medical support obligations or 49 12 marital property orders, or asin this chapterotherwise 49 13 specifically provided in this chapter. For the purposes of 49 14 enforcing child, spousal, or medical support obligations or 49 15 marital property orders, the garnishment or attachment of or 49 16 the execution against compensation due a person under this 49 17 chapter shall not exceed the amount specified in 15 U.S.C. } 49 18 1673(b). 49 19 Sec. 74. NEW SECTION. 97A.17 OPTIONAL TRANSFERS WITH 49 20 CHAPTER 411. 49 21 1. For purposes of this section unless the context 49 22 otherwise requires: 49 23 a. "Average accrued benefit" means the average of the 49 24 amounts representing the present value of the accrued benefit 49 25 earned by the member determined by the former system and the 49 26 present value of the accrued benefit earned by the member 49 27 determined by the current system. 49 28 b. "Current system" means the eligible retirement system 49 29 in which a person has commenced employment covered by the 49 30 system after having terminated employment covered by the 49 31 former system. 49 32 c. "Eligible retirement system" means the system created 49 33 under this chapter and the statewide fire and police 49 34 retirement system established in chapter 411. 49 35 d. "Former system" means the eligible retirement system in 50 1 which a person has terminated employment covered by the system 50 2 prior to commencing employment covered by the current system. 50 3 2. Commencing July 1, 1996, a vested member of an eligible 50 4 retirement system who terminates employment covered by one 50 5 eligible retirement system and, within sixty days, commences 50 6 employment covered by the other eligible retirement system may 50 7 elect to transfer the average accrued benefit earned from the 50 8 former system to the current system. The member shall file an 50 9 application with the current system for transfer of the 50 10 average accrued benefit within ninety days of the commencement 50 11 of employment with the current system. 50 12 3. Notwithstanding subsection 2, a vested member whose 50 13 employment with the current system commenced prior to July 1, 50 14 1996, may elect to transfer the average accrued benefit earned 50 15 under the former system to the current system by filing an 50 16 application with the current system for transfer of the 50 17 average accrued benefit on or before July 1, 1997. 50 18 4. Upon receipt of an application for transfer of the 50 19 average accrued benefit, the current system shall calculate 50 20 the average accrued benefit and the former system shall 50 21 transfer to the current system assets in an amount equal to 50 22 the average accrued benefit. Once the transfer of the average 50 23 accrued benefit is completed, the member's service under the 50 24 former system shall be treated as membership service under the 50 25 current system for purposes of this chapter and chapter 411. 50 26 DIVISION III 50 27 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 50 28 Sec. 75. Section 400.8, subsection 1, Code 1995, is 50 29 amended to read as follows: 50 30 1. The commission, when necessary under the rules, 50 31 including minimum and maximum age limits, which shall be 50 32 prescribed and published in advance by the commission and 50 33 posted in the city hall, shall hold examinations for the 50 34 purpose of determining the qualifications of applicants for 50 35 positions under civil service, other than promotions, which 51 1 examinations shall be practical in character and shall relate 51 2 to matters which will fairly test the mental and physical 51 3 ability of the applicant to discharge the duties of the 51 4 position to which the applicant seeks appointment. The 51 5 physical examination of applicants for appointment to the 51 6 positions of police officer, police matron, or fire fighter 51 7 shall be held in accordance with medical protocols established 51 8 by the board of trustees of the fire and police retirement 51 9 system established by section 411.5. The board of trustees 51 10 may change the medical protocols at any time the board so 51 11 determines. The commission shall conduct a medical 51 12 examination of an applicant for the position of police 51 13 officer, police matron, or fire fighter after a conditional 51 14 offer of employment has been made to the applicant. An 51 15 applicant shall not be discriminated against on the basis of 51 16 height, weight, sex, or race in determining physical or mental 51 17 ability of the applicant. Reasonable rules relating to 51 18 strength, agility, and general health of applicants shall be 51 19 prescribed. The costs of the physical examination required 51 20 under this subsection shall be paid from the trust and agency 51 21 fund of the city. 51 22 Sec. 76. Section 411.5, Code 1995, is amended by adding 51 23 the following new subsection: 51 24 NEW SUBSECTION. 13. VOLUNTARY BENEFIT PROGRAMS. The 51 25 board of trustees shall be responsible for the administration 51 26 of the voluntary benefit programs established under section 51 27 411.40. The board may take any necessary action, including 51 28 the adoption of rules, for purposes of administering the 51 29 programs. 51 30 Sec. 77. Section 411.6, subsection 7, paragraph a, 51 31 unnumbered paragraph 1, Code 1995, is amended to read as 51 32 follows: 51 33 Should any beneficiary for either ordinary or accidental 51 34 disability, except a beneficiary who is fifty-five years of 51 35 age or over and would have completed twenty-two years of 52 1 service if the beneficiary had remained in active service, be 52 2 engaged in a gainful occupation paying more than the 52 3 difference between the member's retirement allowance and one 52 4 and one-half times the earnable compensation of an active 52 5 member at the same position on the salary scale within the 52 6 member's rank as the member held at retirement, then the 52 7 amount of the member's retirement allowance shall be reduced 52 8 to an amount which together with the amount earned by the 52 9 member shall equal one and one-half times the amount of the 52 10 current earnable compensation of an active member at the same 52 11 position on the salary scale within the member's rank as the 52 12 member held at retirement. Should the member's earning 52 13 capacity be later changed, the amount of the member's 52 14 retirement allowance may be further modified, provided, that 52 15 the new retirement allowance shall not exceed the amount of 52 16 the retirement allowance adjusted by annual readjustments of 52 17 pensions pursuant to subsection 12 of this section nor an 52 18 amount which, when added to the amount earned by the 52 19 beneficiary, equals one and one-half times the amount of the 52 20 earnable compensation of an active member at the same position 52 21 on the salary scale within the member's rank as the member 52 22 held at retirement. A beneficiary restored to active service 52 23 at a salary less than the average final compensation upon the 52 24 basis of which the member was retired at age fifty-five or 52 25 greater, shall not again become a member of the retirement 52 26 system and shall have the member's retirement allowance 52 27 suspended while in active service. If the rank or position 52 28 held by the retired member is subsequently abolished, 52 29 adjustments to the allowable limit on the amount of income 52 30 which can be earned in a gainful occupation shall be computed 52 31in the same manner as provided in subsection 12, paragraph52 32"c", of this section for readjustment of pensions when a rank52 33or position has been abolishedby the board of trustees as 52 34 though such rank or position had not been abolished and salary 52 35 increases had been granted to such rank or position on the 53 1 same basis as increases granted to other ranks and positions 53 2 in the department. 53 3 Sec. 78. Section 411.6, subsection 12, paragraphs a 53 4 through c, Code 1995, are amended by striking the paragraphs 53 5 and inserting in lieu thereof the following: 53 6 a. On each July 1, the monthly pensions authorized in this 53 7 section payable to retired members and to beneficiaries shall 53 8 be adjusted as provided in this subsection. An amount equal 53 9 to the sum of one and one-half percent of the monthly pension 53 10 of each retired member and beneficiary and the applicable 53 11 incremental amount shall be added to the monthly pension of 53 12 each retired member and beneficiary. The board of trustees 53 13 shall report to the general assembly every six years, by 53 14 September 15 of that year, beginning with September 15, 2001, 53 15 on whether the provisions of this subsection continue to pro- 53 16 vide an equitable method for the annual readjustment of 53 17 pensions payable under this chapter. 53 18 b. For purposes of this subsection, "applicable 53 19 incremental amount" means the following amount for members 53 20 receiving a pension under subsection 2, 4, or 6 and for 53 21 beneficiaries receiving a pension under subsection 11: 53 22 (1) Fifteen dollars where the member's retirement date was 53 23 less than five years prior to the effective date of the 53 24 increase. 53 25 (2) Twenty dollars where the member's retirement date was 53 26 at least five years, but less than ten years, prior to the 53 27 effective date of the increase. 53 28 (3) Twenty-five dollars where the member's retirement date 53 29 was at least ten years, but less than fifteen years, prior to 53 30 the effective date of the increase. 53 31 (4) Thirty dollars where the member's retirement date was 53 32 at least fifteen years, but less than twenty years, prior to 53 33 the effective date of the increase. 53 34 (5) Thirty-five dollars where the member's retirement date 53 35 was at least twenty years prior to the effective date of the 54 1 increase. 54 2 c. For beneficiaries receiving a pension under subsection 54 3 8 or 9, the applicable incremental amount shall be determined 54 4 as set forth in paragraph "b", except that the date of the 54 5 member's death shall be substituted for the member's 54 6 retirement date. 54 7 Sec. 79. Section 411.6, subsection 12, Code 1995, is 54 8 amended by adding the following new paragraph: 54 9 NEW PARAGRAPH. e. A retired member eligible for benefits 54 10 under this section and otherwise eligible for the readjustment 54 11 of benefits provided in this subsection is not eligible for 54 12 the readjustment unless the member was retired on or before 54 13 the effective date of the readjustment. 54 14 Sec. 80. Section 411.13, Code 1995, is amended to read as 54 15 follows: 54 16 411.13 EXEMPTION FROM EXECUTION AND OTHER PROCESS, OR 54 17 ASSIGNMENT – EXCEPTIONS. 54 18 The right of any person to a pension, annuity, or 54 19 retirement allowance, to the return of contributions, the 54 20 pension, annuity, or retirement allowance itself, any optional 54 21 benefit or death benefit, any other right accrued or accruing 54 22 to any person under this chapter, and the moneys in the fire 54 23 and police retirement fund created under this chapter, are not 54 24 subject to execution, garnishment, attachment, or any other 54 25 process whatsoever, and are unassignable except for the 54 26 purposes of enforcing child, spousal, or medical support obli- 54 27 gations or marital property orders, or asin this chapter54 28 otherwise specifically provided in this chapter. For the 54 29 purposes of enforcing child, spousal, or medical support 54 30 obligations or marital property orders, the garnishment or 54 31 attachment of or the execution against compensation due a 54 32 person under this chapter shall not exceed the amount 54 33 specified in 15 U.S.C. } 1673(b). 54 34 Sec. 81. NEW SECTION. 411.31 OPTIONAL TRANSFERS WITH 54 35 CHAPTER 97A. 55 1 1. For purposes of this section, unless the context 55 2 otherwise requires: 55 3 a. "Average accrued benefit" means the average of the 55 4 amounts representing the present value of the accrued benefit 55 5 earned by the member determined by the former system and the 55 6 present value of the accrued benefit earned by the member 55 7 determined by the current system. 55 8 b. "Current system" means the eligible retirement system 55 9 in which a person has commenced employment covered by the 55 10 system after having terminated employment covered by the 55 11 former system. 55 12 c. "Eligible retirement system" means the system created 55 13 under this chapter and the Iowa department of public safety 55 14 peace officers' retirement, accident, and disability system 55 15 established in chapter 97A. 55 16 d. "Former system" means the eligible retirement system in 55 17 which a person has terminated employment covered by the system 55 18 prior to commencing employment covered by the current system. 55 19 2. Commencing July 1, 1996, a vested member of an eligible 55 20 retirement system who terminates employment covered by one 55 21 eligible retirement system and, within sixty days, commences 55 22 employment covered by the other eligible retirement system may 55 23 elect to transfer the average accrued benefit earned from the 55 24 former system to the current system. The member shall file an 55 25 application with the current system for transfer of the 55 26 average accrued benefit within ninety days of the commencement 55 27 of employment with the current system. 55 28 3. Notwithstanding subsection 2, a vested member whose 55 29 employment with the current system commenced prior to July 1, 55 30 1996, may elect to transfer the average accrued benefit earned 55 31 under the former system to the current system by filing an 55 32 application with the current system for transfer of the 55 33 average accrued benefit on or before July 1, 1997. 55 34 4. Upon receipt of an application for transfer of the 55 35 average accrued benefit, the current system shall calculate 56 1 the average accrued benefit and the former system shall 56 2 transfer to the current system assets in an amount equal to 56 3 the average accrued benefit. Once the transfer of the average 56 4 accrued benefit is completed, the member's service under the 56 5 former system shall be treated as membership service under the 56 6 current system for purposes of this chapter and chapter 97A. 56 7 Sec. 82. Section 411.37, subsection 2, Code 1995, is 56 8 amended to read as follows: 56 9 2. The board shall include in the transition plan or other 56 10 transition documents, provisions to facilitate continuity 56 11 under sections 411.20, 411.21, and 411.30and a recommendation56 12for an equitable process for determining earnable compensation56 13changes when calculating adjustments to pensions under section56 14411.6, subsection 12, to be submitted to the general assembly56 15meeting in 1991. 56 16 Sec. 83. Section 411.38, subsection 1, paragraph b, 56 17 unnumbered paragraph 1, Code 1995, is amended to read as 56 18 follows: 56 19 Transfer from each terminated city fire or police 56 20 retirement system to the statewide system amounts sufficient 56 21 to cover the accrued liabilities of that terminated system as 56 22 determined by the actuary of the statewide system. The 56 23 actuary of the statewide system shall redetermine the accrued 56 24 liabilities of the terminated systems as necessary to take 56 25 into account additional amounts payable by the city which are 56 26 attributable to errors or omissions which occurred prior to 56 27 January 1, 1992, or to matters pending as of January 1, 1992. 56 28 If the actuary of the statewide system determines that the 56 29 assets transferred by a terminated system are insufficient to 56 30 fully fund the accrued liabilities of the terminated system as 56 31 determined by the actuary as of January 1, 1992, the 56 32 participating city shall pay to the statewide system an amount 56 33 equal to the unfunded liability plus interest for the period 56 34 beginning January 1, 1992, and ending with the date of payment 56 35 or the date of entry into an amortization agreement pursuant 57 1 to this section. Interest on the unfunded liability shall be 57 2 computed at a rate equal to the greater of the actuarial 57 3 interest rate assumption on investments of the moneys in the 57 4 fund or the actual investment earnings of the fund for the 57 5 applicable calendar year. The participating city may enter 57 6 into an agreement with the statewide system to make additional 57 7 annual contributions sufficient to amortize the unfunded 57 8 accrued liability of the terminated system. The terms of an 57 9 amortization agreement shall be based upon the recommendation 57 10 of the actuary of the statewide system, and the agreement 57 11 shall do each of the following: 57 12 Sec. 84. NEW SECTION. 411.40 VOLUNTARY BENEFIT PROGRAMS. 57 13 The board of trustees may establish voluntary benefit 57 14 programs for members subject to the following conditions: 57 15 1. The voluntary benefit programs may provide benefits 57 16 including, but not limited to, retiree health benefits, long- 57 17 term care, and life insurance. 57 18 2. Participation in the voluntary benefit programs by 57 19 members shall be voluntary. 57 20 3. Contributions to the voluntary benefit programs shall 57 21 be paid entirely by each participating member by means of 57 22 payroll deduction. Cities employing members participating in 57 23 voluntary benefit programs shall forward the amounts deducted 57 24 to the board of trustees for deposit in the voluntary benefit 57 25 fund. 57 26 4. The voluntary benefit programs and the voluntary 57 27 benefit fund shall be administered under the direction of the 57 28 board of trustees for the exclusive benefit of members paying 57 29 contributions as provided in subsection 3. 57 30 5. The assets of the voluntary benefit programs shall be 57 31 credited to the voluntary benefit fund, which is hereby 57 32 created. The voluntary benefit fund shall include 57 33 contributions deposited in accordance with subsection 3, and 57 34 any interest and earnings on the contributions. The board of 57 35 trustees shall annually establish an investment policy to 58 1 govern the investment and reinvestment of the assets in the 58 2 voluntary benefit fund. The voluntary benefit fund created 58 3 under this section and the fire and police retirement fund 58 4 created under section 411.8 shall not be used to subsidize any 58 5 portion of the liabilities of the other fund. 58 6 6. The board of trustees shall include in its annual 58 7 budget the amount of money necessary during the following year 58 8 to provide for the expense of operation of the voluntary 58 9 benefit programs. The operating expenses shall be paid from 58 10 the voluntary benefit fund under the direction of the board of 58 11 trustees. 58 12 DIVISION IV 58 13 EFFECTIVE AND APPLICABILITY PROVISIONS 58 14 Sec. 85. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 58 15 1. The section of this Act which amends section 97B.49, 58 16 subsection 16, by enacting a new paragraph "m", being deemed 58 17 of immediate importance, takes effect upon enactment and 58 18 applies retroactively to July 1, 1992. 58 19 2. The section of this Act which amends section 411.6, 58 20 subsection 12, paragraphs "a" through "c", takes effect July 58 21 1, 1997. 58 22 EXPLANATION 58 23 This bill provides numerous changes to public retirement 58 24 systems. This bill may include a state mandate as defined in 58 25 section 25B.3. The state mandate funding requirement in 58 26 section 25B.2, however, does not apply to public employee 58 27 retirement systems. 58 28 The changes to each public retirement system are as 58 29 follows: 58 30 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 58 31 Section 97B.4 is amended to state that the department of 58 32 personnel shall comply with applicable federal and state laws. 58 33 Section 97B.7 is amended to provide that the department 58 34 follow the same standards in establishing investment policy as 58 35 are required in making particular investments for the fund. 59 1 Section 97B.11 is amended to provide that no contributions 59 2 shall be deducted from wages, and no membership service 59 3 credited, from a member whose contributions for any calendar 59 4 quarter would amount to one dollar or less. 59 5 Section 97B.14 is amended concerning which contributions 59 6 are forwarded to the department. The change references the 59 7 date established in section 97B.11A concerning the employer 59 8 pickup of employee contributions. 59 9 Section 97B.15 is amended to provide that the department 59 10 may adopt interim written policies and procedures to conform 59 11 the requirements of the retirement system with federal law 59 12 without complying with the rulemaking requirements of chapter 59 13 17A. 59 14 Section 97B.17 is amended to provide that the records 59 15 maintained by the department concerning IPERS members may be 59 16 stored on paper, in a magnetic format, or in electronic form, 59 17 including optical disk storage. 59 18 The section is also amended by adding a new paragraph 59 19 authorizing the department to release records to a 59 20 governmental entity for the purposes of civil or criminal law 59 21 enforcement activity. The section further provides that the 59 22 department is not liable for the release of records pursuant 59 23 to this new paragraph. 59 24 Section 97B.25 is amended to provide that a retirement 59 25 application shall not be amended or revoked by the member once 59 26 the first retirement allowance is paid and a member's death 59 27 during the member's first month of entitlement shall not 59 28 invalidate an approved application. 59 29 Section 97B.39 is amended to provide that a member's right 59 30 to payments under IPERS is subject to marital property orders. 59 31 This amendment further provides that a marital property order 59 32 shall not attempt to require payment prior to retirement or 59 33 mandate a member's right to select certain options upon 59 34 retirement. 59 35 Section 97B.41, concerning definitions, is amended. 60 1 Subsection 8, concerning the definition of employees under 60 2 IPERS, is amended to provide that certain university 60 3 instructors governed by the board of regents who work less 60 4 than half-time for a school year are considered temporary 60 5 employees and not covered by IPERS. Currently, this reference 60 6 applies to half-time community college instructors. 60 7 In addition, subsection 8 is amended to provide that 60 8 persons employed through programs provided through the Iowa 60 9 conservation corps under chapter 15 are not employees for 60 10 purposes of IPERS. 60 11 New subsection 10A provides that reference to the Internal 60 12 Revenue Code means the Internal Revenue Code as defined in 60 13 section 422.3. 60 14 Subsection 12, concerning the definition of membership 60 15 service is amended to eliminate contingent language concerning 60 16 the implementation of certain amendments to this subsection. 60 17 New subsections 13A and 16A add two definitions concerning 60 18 regular and special service. Special service is defined as 60 19 service as a member of a protection occupation, and service as 60 20 a county sheriff, deputy sheriff, or airport fire fighter, all 60 21 as described in section 97B.49, subsection 16. Regular 60 22 service is defined as service other than special service. 60 23 New subsection 14A defines retirement as the period of time 60 24 from when a member has survived into the first day of the 60 25 member's first month of entitlement until the member dies. 60 26 Subsection 15, concerning the definition of service, is 60 27 amended to provide that a leave of absence authorized pursuant 60 28 to the federal Family and Medical Leave Act is deemed to be a 60 29 leave authorized by the person's employer. 60 30 Subsection 18, concerning the definition of three-year 60 31 average covered wage is amended to provide that, for certain 60 32 members who retire between January 1, 1997, and December 31, 60 33 2003, the member's three-year average covered wage shall be 60 34 determined on the member's wages from four to seven years if 60 35 the member's three-year average covered wage exceeds a certain 61 1 dollar amount for the year the member decides to retire. 61 2 Subsection 20, concerning the definition of covered wages, 61 3 provides that, beginning January 1, 1997, the covered wage 61 4 limitation is eliminated subject to the amount permitted under 61 5 the Internal Revenue Code. Currently, the covered wage 61 6 limitation for 1996 is $44,000 and current law provides that 61 7 this amount will increase by $3,000 a year up to a maximum of 61 8 $55,000, provided that the actuarial valuation of the system 61 9 indicates that the increase can be absorbed within existing 61 10 contribution rates. 61 11 Section 97B.42 is amended to provide that an employee 61 12 ceases to be an active member of IPERS if the employee 61 13 receives service credit for service in another public 61 14 retirement system for the same position previously covered 61 15 under IPERS. Current law provides that an employee shall 61 16 cease to be an active member of IPERS upon joining another 61 17 public retirement system maintained by public contributions. 61 18 The bill adds similar language to a provision which currently 61 19 prohibits a person from being a member of another public 61 20 retirement system in the state and a member under IPERS. 61 21 Section 97B.42 is further amended to state that an employer 61 22 shall not make contributions on behalf of an employee to both 61 23 IPERS and any other public retirement system in the state 61 24 which is supported by public contributions. Current law 61 25 provides that a person in public employment shall not be an 61 26 active member of both IPERS and any other public retirement 61 27 system in the state which is supported by public 61 28 contributions. 61 29 Section 97B.42 is also amended to state that a deferred 61 30 compensation plan or tax-deferred annuity in which an employer 61 31 may make public payments or contributions is not considered a 61 32 retirement plan for purposes of this section, thus specifying 61 33 that a public employer may continue to pay to IPERS on behalf 61 34 of an employee even if the employer made contributions to a 61 35 deferred compensation plan or tax-deferred annuity. 62 1 Section 97B.48, subsection 1, is amended to provide that a 62 2 member who would have received a retirement allowance of less 62 3 than $600 a year may elect to receive a lump sum equal to the 62 4 member's and the employer's accumulated contributions and any 62 5 retirement dividends credited before December 31, 1966. 62 6 Current law provides that the lump sum received shall be an 62 7 actuarial equivalent amount, defined as a benefit of equal 62 8 value when computed pursuant to actuarial tables. 62 9 Section 97B.48A, concerning reemployment, is amended to 62 10 provide that for members under 65 years of age, a member's 62 11 retirement allowance shall be reduced by 50 cents for each 62 12 dollar the member earns over the limit for extra income 62 13 provided in section 97B.48A. This section of the bill also 62 14 provides that the earned income limit is the greater of $7,440 62 15 or the amount of income permitted under Social Security. 62 16 Current law provides for a suspension of the retirement 62 17 allowance for earnings over $7,440. The section provides for 62 18 recouping these reductions from beneficiaries of the member if 62 19 the member dies prior to IPERS recovering the full amount of 62 20 the reductions. 62 21 Section 97B.49, subsection 4, is amended to provide, 62 22 beginning January 1, 1997, that the minimum monthly benefit 62 23 for members who retired between July 1, 1953, and July 1, 62 24 1990, with at least 10 years of service is $200. For each 62 25 year of service from 10 to 30 years of total service, the 62 26 minimum benefit shall increase by $10 per year of additional 62 27 service. 62 28 Section 97B.49, subsection 5, paragraph "b", is amended to 62 29 reflect the history of the increase in the percentage 62 30 multiplier up to the current 60 percent. The section reflects 62 31 that vested members retiring on or after July 1, 1994, receive 62 32 a monthly retirement allowance based on 60 percent of the 62 33 member's three-year average covered wage. The paragraph is 62 34 also amended to provide that the reduction in the percentage 62 35 multiplier if the member's three-year average covered wage 63 1 exceeds certain income levels as provided in section 97B.49, 63 2 subsection 5, new paragraph "e", in this bill applies to 63 3 members covered under subsection 16 or 17 which apply to 63 4 protection occupations, sheriffs, deputies, and airport fire 63 5 fighters. 63 6 Section 97B.49, subsection 5, is amended by adding new 63 7 paragraph "e" which provides a mechanism to reduce the 63 8 percentage multiplier applied to members whose three-year 63 9 average covered wage for service exceeds $55,000. The 63 10 multiplier is not reduced for the first $55,000 of a member's 63 11 wage but is reduced for that portion of the wages that exceeds 63 12 $55,000. For wages between $55,000 and $65,000, the 63 13 applicable percentage multiplier applied is reduced 10 63 14 percent, for wages between $65,000 and $75,000, the applicable 63 15 percentage multiplier applied is reduced 15 percent, for wages 63 16 between $75,000 and $85,000, the applicable percentage 63 17 multiplier applied is reduced 20 percent, for wages between 63 18 $85,000 and $95,000, the applicable percentage multiplier 63 19 applied is reduced 30 percent, and for wages over $95,000, the 63 20 applicable percentage multiplier applied is reduced 40 63 21 percent. The section provides that these brackets shall be 63 22 adjusted by the department of personnel for inflation. 63 23 Section 97B.49, subsection 13, concerning retirement 63 24 dividends, is amended to provide for the payment of a 63 25 retirement dividend based on a percentage of a member's 63 26 monthly retirement allowance for certain retirees in November 63 27 1996 and November 1997. Members who retired between July 4, 63 28 1953, and December 31, 1975, receive a dividend of 292 percent 63 29 of the monthly benefit, members who retired between January 1, 63 30 1976, and June 30, 1982, receive a dividend of 223 percent of 63 31 the monthly benefit, members who retired between July 1, 1982, 63 32 and June 30, 1986, receive a dividend of 74 percent of the 63 33 monthly benefit, and members who retired between July 1, 1986, 63 34 and June 30, 1990, receive a dividend of 24 percent of the 63 35 monthly benefit. 64 1 Section 97B.49, subsection 16, is amended by adding a new 64 2 paragraph "m" requiring that the department of public safety 64 3 shall pay the department of personnel the costs of additional 64 4 benefits provided a fire prevention inspector peace officer. 64 5 This provision is immediately effective and retroactive to 64 6 July 1, 1992. 64 7 Section 97B.49 is amended to add a new subsection 17 that 64 8 establishes a hybrid retirement formula to be used in 64 9 computing the retirement allowance for members who earned 64 10 service as a regular IPERS member and who earned service as a 64 11 member of a protection occupation or a county sheriff, deputy 64 12 sheriff, or airport fire fighter. 64 13 Section 97B.51 is amended to provide that a member shall 64 14 not change an election of an optional retirement allowance 64 15 once the first retirement allowance is paid. 64 16 Section 97B.51, subsection 5, provides that a member may 64 17 elect, at retirement, to provide a lump sum payment to a 64 18 beneficiary on the member's death. This section of the bill 64 19 provides that the lump sum payment shall not exceed the 64 20 member's accumulated contributions. Current law does not 64 21 specify that the lump sum payment cannot exceed the member's 64 22 accumulated contributions. 64 23 Section 97B.51, subsection 6, is amended to provide for an 64 24 equal distribution of a member's reduced retirement allowance 64 25 payments upon the member's death if multiple beneficiaries are 64 26 designated unless the member provides in writing for a 64 27 different distribution. 64 28 Section 97B.52 is amended to provide that payment to a 64 29 member's beneficiary, if the member dies prior to the member's 64 30 first month of entitlement, is calculated based on years of 64 31 service divided by 22, 25, or 30, depending upon the member's 64 32 last membership service. 64 33 Section 97B.52, subsection 3, is amended to provide that a 64 34 beneficiary, heirs, or the estate, have five years, and not 64 35 two years, after the member's death to apply to the department 65 1 to receive the member's death benefit. The section of the 65 2 bill also requires the department to reinstate a surviving 65 3 spouse's right to receive a death benefit after five years if 65 4 required or permitted pursuant to the Internal Revenue Code. 65 5 Section 97B.52, subsection 5, is amended to provide for the 65 6 payment of benefits that are waived by the eligible 65 7 beneficiary. 65 8 Section 97B.52A is amended to provide that a member does 65 9 not have a bona fide retirement until all employment with the 65 10 employer, even noncovered employment, is terminated for at 65 11 least 30 days. 65 12 Section 97B.53 is amended to eliminate contingent language 65 13 concerning the implementation of amendments to this section. 65 14 Section 97B.53B is amended to provide that annual 65 15 distributions of less than $200 of taxable income are not 65 16 considered an eligible rollover distribution. Current law 65 17 refers to a distribution of less than $200 of taxable income. 65 18 Section 97B.66 is amended to provide that members may make 65 19 contributions as "buy-backs" in increments of calendar 65 20 quarters rather than full years concerning former service in 65 21 the teachers insurance and annuity association-college 65 22 retirement equity fund (TIAA-CREF). This section also 65 23 eliminates contingency language concerning the implementation 65 24 of partial "buy-backs", and contains a conforming change 65 25 pertaining to interest accrual under section 97B.70. 65 26 Section 97B.68 is amended to provide that a member of a 65 27 federal retirement system is not eligible for membership in 65 28 IPERS for the same position. Current law prohibits membership 65 29 in both systems regardless of the position. 65 30 Section 97B.68 is amended by adding a new subsection 3 to 65 31 provide that effective July 1, 1996, employees under the 65 32 federal retirement system may be covered under IPERS if 65 33 service under IPERS is not counted for their federal system 65 34 retirement. 65 35 Section 97B.70 is amended to provide that, effective for 66 1 years beginning January 1997, the interest credited to the 66 2 member's and the employer's contributions for purposes of 66 3 determining the accumulated contributions shall be equal to 1 66 4 percent higher than the interest rate for one year 66 5 certificates of deposit as of January of each year. This 66 6 section also provides that interest shall be credited on a 66 7 quarterly basis, and removes contingency language. 66 8 Sections 97B.72, concerning members of the 71st General 66 9 Assembly or a succeeding general assembly, 97B.72A, concerning 66 10 members of the general assembly before July 1, 1988, 97B.73, 66 11 for members of other public retirement systems, and 97B.73A, 66 12 concerning part-time county attorneys, are amended to provide 66 13 that members may make contributions in increments of calendar 66 14 quarters rather than full years concerning former service. 66 15 The sections also eliminate contingency language concerning 66 16 the implementation of partial "buy-ins", or "buy-backs", as 66 17 applicable, and contain conforming changes pertaining to 66 18 interest accrual under section 97B.70. Section 97B.72A is 66 19 also amended to provide that only vested or retired members, 66 20 and not active members, may make contributions. 66 21 Section 97B.74 is amended to provide that members may make 66 22 contributions as "buy-backs" in increments of calendar 66 23 quarters rather than full years concerning members seeking 66 24 reinstatement as a vested member. The section also provides 66 25 that only former vested or retired members, and not former 66 26 active members who were not vested, can buy back refunds 66 27 received. The section also eliminates contingent language 66 28 concerning the implementation of amendments to this Code 66 29 section. 66 30 Section 97B.80 is amended to provide that members may make 66 31 contributions as "buy-ins" in increments of one or more 66 32 calendar quarters rather than full years for active duty 66 33 service in the armed forces. The section eliminates the 66 34 restriction on making contributions in increments of less than 66 35 one year only once. 67 1 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 67 2 ACCIDENT, AND DISABILITY SYSTEM 67 3 Sections 97A.5, 97A.6, and 97A.8 are amended to provide 67 4 that the board of trustees shall, upon the advice of an 67 5 actuary hired by the board, make the necessary valuations for 67 6 determining the contribution rate into the fund. Currently, 67 7 the commissioner of insurance is given the responsibility to 67 8 perform these functions. 67 9 Section 97A.5 is further amended to provide that the board 67 10 of trustees may hire investment and benefit advisors and 67 11 consultants in order to administer the system. The section is 67 12 also amended to provide that the department of public safety, 67 13 the board of trustees, and the treasurer of state shall not be 67 14 liable for their actions that do not constitute malicious or 67 15 wanton misconduct, even if the actions violate standards 67 16 established in section 97A.7. 67 17 Section 97A.6, subsection 2, is amended to increase, from 67 18 .6 percent to 1.5 percent the additional benefit for members 67 19 for each additional year of service in the system from 22 to 67 20 30 years of service for members terminating service on or 67 21 after July 1, 1996. 67 22 Section 97A.6, subsection 12, is amended to increase the 67 23 minimum benefit for surviving spouses of members from 20 67 24 percent to 25 percent of the compensation for a senior patrol 67 25 officer. 67 26 Section 97A.6, subsection 14, is amended to provide for an 67 27 increase in the percentages used to provide an annual 67 28 readjustment of the pension payable from the current 12.5 67 29 percent and 25 percent to 15 percent and 30 percent, 67 30 respectively. Currently, only those members who retired prior 67 31 to July 1, 1990, get the higher percentage readjustment. The 67 32 bill also provides that a retired member is eligible for this 67 33 readjustment if the member served 22 years. Currently, a 67 34 member must serve 22 years and attain the age of 55 years 67 35 before retirement in order to be eligible for the 68 1 readjustment. 68 2 Section 97A.6 is amended by adding a new subsection 68 3 providing for early retirement benefits for members who retire 68 4 between the ages of 50 and 55 years but who have 22 years of 68 5 service. The member's benefit will be reduced by an amount 68 6 for each month of early retirement to reflect the actuarial 68 7 cost, so that the early retirement does not result in any 68 8 increase in cost to the system. 68 9 Section 97A.8, subsection 1, is amended to eliminate the 68 10 requirement that, beginning July 1, 1996, the normal 68 11 contribution rate and the member's contribution rate be 68 12 equivalent to the respective rates provided under the 68 13 statewide fire and police retirement system. Instead, these 68 14 sections provide for establishing both rates based on the 68 15 costs associated with the peace officers' retirement system, 68 16 subject to certain existing limitations. 68 17 Section 97A.8, subsection 3, is amended to specify which 68 18 investment management expenses may be paid for by the expense 68 19 fund established for the system. 68 20 Section 97A.12 is amended to provide that a member's 68 21 pension under the system is subject to assignment based on a 68 22 marital property order or a child, spousal, or medical support 68 23 order. 68 24 New section 97A.17 establishes a mechanism for allowing 68 25 vested members of the system and vested members of the 68 26 statewide fire and police retirement system established in 68 27 chapter 411 to transfer to the other system with credit for 68 28 the period of service in the former system. The section 68 29 permits a member who transferred to the other system before 68 30 the effective date of this section to transfer credit from the 68 31 former system to the current system within one year from the 68 32 effective date of this section. 68 33 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 68 34 Section 400.8 is amended to authorize the board of trustees 68 35 of the statewide fire and police retirement system to update 69 1 the medical protocols used for examining applicants for 69 2 employment as a police officer or fire fighter. 69 3 Section 411.5 is amended to provide that the board of 69 4 trustees is given the authority to take any necessary action 69 5 to administer the voluntary benefit programs established in 69 6 new section 411.40. 69 7 Section 411.6, subsection 12, is amended to replace the 69 8 current method for annually readjusting the pensions of 69 9 members of the system effective July 1, 1997. The bill 69 10 provides that the monthly pensions of members shall be 69 11 adjusted each July 1 by adding an amount to the pension that 69 12 represents an increase of 1.5 percent over the previous year's 69 13 monthly pension plus a set dollar amount based on the number 69 14 of years the member has been retired. This section provides 69 15 that a retired member must be retired on or before the 69 16 effective date of the pension readjustment to be eligible for 69 17 the readjustment. 69 18 Section 411.13 is amended to provide that a member's 69 19 pension under the system is subject to assignment based on a 69 20 marital property order or a child, spousal, or medical support 69 21 order. 69 22 New section 411.31 establishes a mechanism for allowing 69 23 vested members of the system and vested members of the public 69 24 safety peace officers', accident and disability system in 69 25 chapter 97A to transfer to the other system with credit for 69 26 the period of service in the former system. The section 69 27 permits a member who transferred to the other system before 69 28 the effective date of this section to transfer credit from the 69 29 former system to the current system within one year from the 69 30 effective date of this section. 69 31 Section 411.38 is amended to establish a mechanism to 69 32 charge participating cities in the system with the unfunded 69 33 liability of that city along with interest calculated based on 69 34 the investment performance or actuarial assumptions of the 69 35 system. 70 1 New section 411.40 establishes voluntary benefit programs 70 2 for members of the system. The board of trustees is 70 3 authorized to establish programs for the benefit of members, 70 4 to include retiree health, long-term care, and life insurance. 70 5 The section establishes a voluntary benefit fund for the 70 6 purpose of investing assets transferred to the fund from 70 7 employee contributions. Participation in the program by 70 8 members is voluntary. 70 9 LSB 4378HC 76 70 10 ec/cf/24
Text: HSB00720 Text: HSB00722 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: House Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Tue Feb 27 07:33:16 CST 1996
URL: /DOCS/GA/76GA/Legislation/HSB/00700/HSB00721/960226.html
jhf