Text: S05134 Text: S05136 Text: S05100 - S05199 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 2245 as follows: 1 2 #1. Page 1, by inserting after line 2 the 1 3 following: 1 4 "Sec. . Section 12.8, unnumbered paragraph 3, 1 5 Code 1995, is amended to read as follows: 1 6 The treasurer of state, with the approval of the 1 7investmentboard of trustees of the Iowa public 1 8 employees' retirement system, may conduct a program of 1 9 lending securities in the Iowa public employees' 1 10 retirement system portfolio. When securities are 1 11 loaned as provided by this paragraph, the treasurer 1 12 shall act in the manner provided for investment of 1 13 moneys in the Iowa public employees' retirement fund 1 14 under section 97B.7. The treasurer of state shall 1 15 report at least annually to theinvestmentboard of 1 16 trustees of the Iowa public employees' retirement 1 17 system on the program and shall provide additional 1 18 information on the program upon the request of the 1 19investmentboard of trustees or the employees of the 1 20 Iowa public employees' retirement system division of 1 21 the department of personnel. 1 22 Sec. . Section 19A.1, subsection 3, paragraph 1 23 c, Code 1995, is amended to read as follows: 1 24 c. Theinvestmentboard of trustees of the Iowa 1 25 public employees' retirement system created by section 1 2697B.897B.8A. 1 27 Sec. . Section 68B.35, subsection 2, paragraph 1 28 e, Code 1995, is amended to read as follows: 1 29 e. Members of the banking board, the ethics and 1 30 campaign disclosure board, the credit union review 1 31 board, the economic development board, the employment 1 32 appeal board, the environmental protection commission, 1 33 the health facilities council, the Iowa business 1 34 investment corporation board of directors, the Iowa 1 35 finance authority, the Iowa seed capital corporation, 1 36 the Iowa public employees' retirement system 1 37investmentboard of trustees, the lottery board, the 1 38 natural resource commission, the board of parole, the 1 39 petroleum underground storage tank fund board, the 1 40 public employment relations board, the state racing 1 41 and gaming commission, the state board of regents, the 1 42 tax review board, the transportation commission, the 1 43 office of consumer advocate, the utilities board, and 1 44 any full-time members of other boards and commissions 1 45 as defined under section 7E.4 who receive an annual 1 46 salary for their service on the board or commission. 1 47 Sec. . Section 97B.1, Code 1995, is amended to 1 48 read as follows: 1 49 97B.1 SYSTEM CREATED – ORGANIZATIONAL 1 50 DEFINITIONS. 2 1 1. The "Iowa Public Employees' Retirement System" 2 2 is created. The system is within the department of 2 3 personnel, subject to the administration of the board. 2 4 2. As used in this chapter unless the context 2 5 requires otherwise: 2 6 a. "Board" means theinvestmentboard of trustees 2 7 created by section97B.897B.8A. 2 8 b. "Department" means the department of personnel. 2 9 c. "Director" means the director of the department 2 10 of personnel. 2 11 d. "System" means the Iowa public employees' 2 12 retirement system." 2 13 #2. By striking page 1, line 3, through page 2, 2 14 line 23, and inserting the following: 2 15 "Sec. . Section 97B.4, Code 1995, is amended to 2 16 read as follows: 2 17 97B.4 ADMINISTRATION OF SYSTEM – POWERS AND 2 18 DUTIES – IMMUNITY. 2 19 Thedepartmentboard, through the department and 2 20 the chief investment officer and chief benefits 2 21 officer, shall administer this chapter. The 2 22 department, upon the approval of the board, may adopt, 2 23 amend, or rescind rules, employ persons, execute 2 24 contracts with outside parties, make expenditures, 2 25 require reports, make investigations, and take other 2 26 action it deems necessary for the administration of 2 27 the system in conformity with the requirements of this 2 28 chapter, the applicable provisions of the Internal 2 29 Revenue Code, and all other applicable federal and 2 30 state laws. The rules shall be effective upon 2 31 compliance with chapter 17A. Not later than the 2 32 fifteenth day of December of each year, the department 2 33 shall submit to the governor a report covering the 2 34 administration and operation of this chapter during 2 35 the preceding fiscal year and shall make 2 36 recommendations for amendments to this chapter. The 2 37 report shall include a balance sheet of the moneys in 2 38 the Iowa public employees' retirement fund. 2 39 In the administration of the investment of moneys 2 40 in the fund and in making benefit recommendations, 2 41 employees of the department and members of the board 2 42 may travel outside the state for the purpose of 2 43 meeting with investment and benefit firms and 2 44 consultants and attending conferences and meetings to 2 45 fulfill their fiduciary responsibilities. This travel 2 46 is not subject to section 421.38, subsection 2. 2 47 The department, members of theinvestmentboard, 2 48 and the treasurer of state are not personally liable 2 49 for actions or omissions under this chapter that do 2 50 not involve malicious or wanton misconduct even if 3 1 those actions or omissions violate the standards 3 2 established in section 97B.7. 3 3 Sec. . Section 97B.7, subsection 2, paragraphs 3 4 b and d, Code 1995, are amended to read as follows: 3 5 b. To invest the portion of the retirement fund 3 6 which in the judgment of the department is not needed 3 7 for current payment of benefits under this chapter. 3 8 The department shall execute the disposition and 3 9 investment of moneys in the retirement fund in 3 10 accordance with the investment policy and goal 3 11 statement established by theinvestmentboard. In 3 12 establishing the investment policy of the fund and the 3 13 investment of the fund, the department andinvestment3 14 board shall exercise the judgment and care, under the 3 15 circumstances then prevailing, which persons of 3 16 prudence, discretion, and intelligence exercise in the 3 17 management of their own affairs, not for the purpose 3 18 of speculation, but with regard to the permanent 3 19 disposition of the funds, considering the probable 3 20 income, as well as the probable safety, of their 3 21 capital. Within the limitations of the standard 3 22 prescribed in this section, the treasurer of state, 3 23 the department, and the board may acquire and retain 3 24 every kind of property and every kind of investment 3 25 which persons of prudence, discretion, and 3 26 intelligence acquire or retain for their own account. 3 27 The department andinvestmentboard shall give 3 28 appropriate consideration to those facts and 3 29 circumstances that the department andinvestmentboard 3 30 know or should know are relevant to the particular 3 31 investment or investment policy involved, including 3 32 the role the investment plays in the total value of 3 33 the retirement fund. 3 34 For the purposes of this paragraph, appropriate 3 35 consideration includes, but is not limited to, a 3 36 determination by the department andinvestmentboard 3 37 that the particular investment or investment policy is 3 38 reasonably designed to further the purposes of the 3 39 retirement system, taking into consideration the risk 3 40 of loss and the opportunity for gain or other return 3 41 associated with the investment or investment policy 3 42 and consideration of the following factors as they 3 43 relate to the retirement fund: 3 44 (1) The composition of the retirement fund with 3 45 regard to diversification. 3 46 (2) The liquidity and current return of the 3 47 investments in the fund relative to the anticipated 3 48 cash flow requirements of the retirement system. 3 49 (3) The projected return of the investments 3 50 relative to the funding objectives of the retirement 4 1 system. 4 2 Consistent with this paragraph, investments made 4 3 under this paragraph shall be made in a manner that 4 4 will enhance the economy of this state, and in 4 5 particular, will result in increased employment of the 4 6 residents of this state. Investments of moneys in the 4 7 fund are not subject to sections 73.15 through 73.21. 4 8 Except as provided in section 97B.4, if there is 4 9 loss to the fund, the treasurer, the department, and 4 10 the board are not personally liable, and the loss 4 11 shall be charged against the retirement fund. There 4 12 is appropriated from the retirement fund the amount 4 13 required to cover a loss. Expenses incurred in the 4 14 sale and purchase of securities belonging to the 4 15 retirement fund shall be charged to the retirement 4 16 fund, and there is appropriated from the retirement 4 17 fund the amount required for the expenses incurred. 4 18 Investment management expenses shall be charged to the 4 19 investment income of the retirement fund, and there is 4 20 appropriated from the retirement fund the amount 4 21 required for the investment management expenses, 4 22 subject to the limitations stated in this unnumbered 4 23 paragraph. The amount appropriated for a fiscal year 4 24 under this unnumbered paragraph shall not exceed one- 4 25 half percent of the market value of the retirement 4 26 fund. The department shall report the investment 4 27 management expenses for a fiscal year as a percent of 4 28 the market value of the retirement fund in the annual 4 29 report to the governor required in section 97B.4. A 4 30 person who has signed a contract with the department 4 31 for investment management purposes shall meet the 4 32 requirements for doing business in Iowa sufficient to 4 33 be subject to tax under rules of the department of 4 34 revenue and finance. 4 35 d. To sell any securities or other property in the 4 36 trust fund and reinvest the proceeds in accordance 4 37 with the direction of the department when such action 4 38 may be deemed advisable by the department for the 4 39 protection of the trust fund or the preservation of 4 40 the value of the investment. Such sale of securities 4 41 or other property of the trust fund shall only be made 4 42 after advice from theinvestmentboard in the manner 4 43 and to the extent provided in this chapter in regard 4 44 to the purchase of investments. 4 45 Sec. . NEW SECTION. 97B.8A BOARD OF TRUSTEES. 4 46 1. BOARD ESTABLISHED. A board is established to 4 47 be known as the "Board of Trustees of the Iowa Public 4 48 Employees' Retirement System", referred to in this 4 49 chapter as the "board", whose duties are to establish 4 50 policy for the department in matters relating to the 5 1 administration of the system, including the investment 5 2 of the trust funds and the disbursement of benefits 5 3 provided to members of the system. 5 4 2. REVIEW. 5 5 a. At least annually the board shall review the 5 6 investment policies and procedures used by the 5 7 department under section 97B.7, subsection 2, 5 8 paragraph "b", and shall hold a public meeting on the 5 9 investment policies and investment performance of the 5 10 fund. Following its review and the public meeting, 5 11 the board shall establish an investment policy and 5 12 goal statement which shall direct the investment 5 13 activities of the department. The development of the 5 14 investment policy and goal statement and its 5 15 subsequent execution shall be performed cooperatively 5 16 between the board and the department. 5 17 b. At least every two years, the board shall 5 18 review the benefits provided to members under chapter 5 19 97B and shall hold a public meeting on the benefits 5 20 provided to members under this chapter. Following its 5 21 review and public meeting, the board shall make 5 22 recommendations to the general assembly concerning the 5 23 benefits provided under this chapter. 5 24 3. MEMBERSHIP. 5 25 a. The board consists of eleven members. Eight of 5 26 the members shall be appointed by the governor. One 5 27 member shall be an executive of a domestic life 5 28 insurance company; one member shall be an executive of 5 29 a state or national bank operating within the state of 5 30 Iowa; one member shall be an executive of an 5 31 industrial corporation located within the state of 5 32 Iowa; one, not a member of the system, who is a member 5 33 of a county board of supervisors or local school 5 34 board; and four shall be members of the system, one of 5 35 whom is an active member who is an employee of a 5 36 school district, area education agency, or merged 5 37 area, one of whom is an active member who is not 5 38 employed in a position described under section 97B.49, 5 39 subsection 16, and is not an employee of a school 5 40 district, area education agency, or merged area, one 5 41 of whom is employed in a position described under 5 42 section 97B.49, subsection 16, and one of whom is a 5 43 retired member of the system. The president of the 5 44 senate, after consultation with the majority leader 5 45 and the minority leader of the senate, shall appoint 5 46 one member from the membership of the senate and the 5 47 speaker of the house of representatives, after 5 48 consultation with the majority leader and the minority 5 49 leader of the house of representatives, shall appoint 5 50 one member from the membership of the house. The 6 1 following members are ex officio, voting members of 6 2 the board: the two legislative members; the member 6 3 who is a member of a county board of supervisors or local 6 4 school board; the active member who is an employee of 6 5 a school district, area education agency, or merged 6 6 area; the active member who is not employed in a 6 7 position described under section 97B.49, subsection 6 8 16, and is not an employee of a school district, area 6 9 education agency, or merged area; and the active 6 10 member who is employed in a position described under 6 11 section 97B.49, subsection 16. The director of the 6 12 department of personnel is an ex officio, nonvoting 6 13 member of the board. Six voting members of the board 6 14 shall constitute a quorum. 6 15 b. The members who are an executive of a domestic 6 16 life insurance company, an executive of a state or 6 17 national bank operating within the state of Iowa, an 6 18 executive of an industrial corporation located within 6 19 the state of Iowa, a member of a county board of 6 20 supervisors or school board, and the member who is a 6 21 retired member of the system, shall be paid their 6 22 actual expenses incurred in performance of their 6 23 duties and shall receive a per diem as specified in 6 24 section 7E.6 for each day of service not exceeding 6 25 forty days per year. Legislative members shall be 6 26 paid the per diem specified in section 2.10, 6 27 subsection 6, for each day of service, and their 6 28 actual expenses incurred in the performance of their 6 29 duties. The per diem and expenses of the legislative 6 30 members shall be paid from funds appropriated under 6 31 section 2.12. The following members shall be paid 6 32 their actual expenses incurred in the performance of 6 33 their duties as members of the board and the 6 34 performance of their duties as members of the board 6 35 shall not affect their salaries, vacations, or leaves 6 36 of absence for sickness or injury: the director of 6 37 the department of personnel; the active member who is 6 38 an employee of a school district, area education 6 39 agency, or merged area; the active member who is not 6 40 employed in a position described under section 97B.49, 6 41 subsection 16, and is not an employee of a school 6 42 district, area education agency, or merged area; and 6 43 the active member who is employed in a position 6 44 described under section 97B.49, subsection 16. The 6 45 appointive terms of the members appointed by the 6 46 governor are for a period of six years beginning and 6 47 ending as provided in section 69.19. A vacancy in the 6 48 membership of the board shall be filled in the same 6 49 manner as the original appointment. Gubernatorial 6 50 appointees to the board are subject to confirmation by 7 1 the senate. 7 2 4. ADMINISTRATIVE AUTHORITY. 7 3 The authority of the department to carry out its 7 4 duties as provided by this chapter are, 7 5 notwithstanding provisions of this chapter to the 7 6 contrary, subject to the approval of the board." 7 7 #3. Page 50, by inserting after line 23 the 7 8 following: 7 9 "Sec. . Section 473.11, subsection 2, 7 10 unnumbered paragraph 1, Code 1995, is amended to read 7 11 as follows: 7 12 The treasurer of state shall be the custodian of 7 13 the energy conservation trust and shall invest the 7 14 moneys in the trust, in consultation with the energy 7 15 fund disbursement council established in subsection 3 7 16 and theinvestmentboard of trustees of the Iowa 7 17 public employees' retirement system, in accordance 7 18 with the following guidelines: 7 19 Sec. . BOARD TRANSITION – EFFECTIVE DATE. 7 20 1. Notwithstanding provisions of section 97B.8A, 7 21 as enacted in this Act, to the contrary, the initial 7 22 board of trustees of the Iowa public employees' 7 23 retirement system shall consist of the following 7 24 members, who shall serve the following terms: 7 25 a. The governor shall appoint to the initial board 7 26 of trustees one member, not a member of the system, 7 27 who is a member of a county board of supervisors or 7 28 local school board and one member who is an active 7 29 member of the system and is employed in a position 7 30 described under section 97B.49, subsection 16. The 7 31 terms of these two members appointed under this 7 32 paragraph shall commence on July 1, 1996 and expire on 7 33 April 30, 2002. 7 34 b. The members of the investment board established 7 35 under section 97B.8, Code 1995, who were appointed by 7 36 the governor shall cease membership on the investment 7 37 board and commence membership on the initial board of 7 38 trustees on July 1, 1996. The terms of these members 7 39 on the initial board of trustees shall expire on the 7 40 same date as their terms would have expired on the 7 41 investment board in accordance with section 97B.8, 7 42 Code 1995. 7 43 c. The members of the investment board established 7 44 under section 97B.8, Code 1995, who are legislative 7 45 members shall cease membership on the investment board 7 46 and commence membership on the initial board of 7 47 trustees on July 1, 1996. The terms of these members 7 48 shall expire at the pleasure of the appointing 7 49 authorities as provided in section 97B.8A, as enacted 7 50 in this Act. 8 1 d. The director of the department of personnel 8 2 shall cease membership on the investment board 8 3 established under section 97B.8, Code 1995, and 8 4 commence membership on the initial board of trustees 8 5 on July 1, 1996. The director of the department of 8 6 personnel shall serve on the board of trustees as 8 7 provided in section 97B.8A, as enacted in this Act. 8 8 2. Initial appointments by the governor under this 8 9 section are subject to confirmation by the senate. If 8 10 a vacancy occurs as to a member of the initial board 8 11 of trustees who is appointed by the governor prior to 8 12 the expiration of a term as provided in this section, 8 13 the governor shall appoint a member to serve the 8 14 remainder of the term so that the membership 8 15 requirements of section 97B.8A, as enacted in this 8 16 Act, are fulfilled, and the appointment shall be 8 17 subject to confirmation by the senate. Upon the 8 18 expiration of a term established in this section, a 8 19 member shall be appointed in the manner and for a term 8 20 of service as specified in section 97B.8A, as enacted 8 21 in this Act. Except as otherwise provided in this 8 22 section, the initial board of trustees shall be 8 23 subject to the requirements of section 97B.8A, as 8 24 enacted in this Act. 8 25 3. In order to provide for the appointments to the 8 26 initial board of trustees, this section of this Act, 8 27 being deemed of immediate importance, takes effect 8 28 upon enactment. 8 29 Sec. . REPEAL. Section 97B.8, Code 1995, is 8 30 repealed." 8 31 #4. By renumbering as necessary. 8 32 8 33 8 34 8 35 JIM LIND 8 36 MICHAEL E. GRONSTAL 8 37 SF 2245.306 76 8 38 ec/cf
Text: S05134 Text: S05136 Text: S05100 - S05199 Text: S Index Bills and Amendments: General Index Bill History: General Index
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