Text: S05153                            Text: S05155
Text: S05100 - S05199                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

Senate Amendment 5154

Amendment Text

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  7 investment board 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 the investment board 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 19 investment board 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.  The investment board of trustees of the Iowa
  1 25 public employees' retirement system created by section
  1 26 97B.8 97B.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 37 investment board 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 the investment board of trustees
  2  7 created by section 97B.8 97B.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    The department board, 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 the investment board,
  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 the investment board.  In
  3 12 establishing the investment policy of the fund and the
  3 13 investment of the fund, the department and investment
  3 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 and investment board shall give
  3 28 appropriate consideration to those facts and
  3 29 circumstances that the department and investment board
  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 and investment board
  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 the investment board 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 consistent with the
  5  4 goals established in section 97D.1.
  5  5    2.  REVIEW.
  5  6    a.  At least annually the board shall review the
  5  7 investment policies and procedures used by the
  5  8 department under section 97B.7, subsection 2,
  5  9 paragraph "b", and shall hold a public meeting on the
  5 10 investment policies and investment performance of the
  5 11 fund.  Following its review and the public meeting,
  5 12 the board shall establish an investment policy and
  5 13 goal statement which shall direct the investment
  5 14 activities of the department.  The development of the
  5 15 investment policy and goal statement and its
  5 16 subsequent execution shall be performed cooperatively
  5 17 between the board and the department.
  5 18    b.  At least every two years, the board, in
  5 19 consultation with the benefits advisory committee,
  5 20 shall review the benefits provided to members under
  5 21 chapter 97B and shall make recommendations to the
  5 22 general assembly concerning the benefits, benefits
  5 23 policy, and benefit goal, provided under this chapter.
  5 24    3.  MEMBERSHIP.
  5 25    a.  The board consists of thirteen members.  Eight
  5 26 of the members shall be appointed by the governor.  Of
  5 27 the members appointed by the governor, one member
  5 28 shall be an executive of a domestic life insurance
  5 29 company; one member shall be an executive of a state
  5 30 or national bank operating within the state of Iowa;
  5 31 one member shall be a certified financial planner; one
  5 32 member shall be a retirement benefits specialist; one,
  5 33 not a member of the system, who is a member of a
  5 34 county board of supervisors or local school board; one
  5 35 member shall be an active member who is an employee of
  5 36 a school district, area education agency, or merged
  5 37 area; one member shall be an active member who is not
  5 38 an employee of a school district, area education
  5 39 agency, or merged area; and one member who is a
  5 40 retired member of the system.  One member shall be
  5 41 appointed by the benefits advisory committee.  The
  5 42 president of the senate, after consultation with the
  5 43 majority leader and the minority leader of the senate,
  5 44 shall appoint one member from the membership of the
  5 45 senate and the speaker of the house of
  5 46 representatives, after consultation with the majority
  5 47 leader and the minority leader of the house of
  5 48 representatives, shall appoint one member from the
  5 49 membership of the house.  The director of the
  5 50 department of personnel, the treasurer of state or the
  6  1 treasurer's designee, and the two legislative members
  6  2 are ex officio, nonvoting members of the board.  Five
  6  3 voting members of the board shall constitute a quorum.
  6  4    b.  The members who are an executive of a domestic
  6  5 life insurance company, an executive of a state or
  6  6 national bank operating within the state of Iowa, a
  6  7 certified financial planner, a retirement benefits
  6  8 specialist, a member of a county board of supervisors
  6  9 or school board, the member who is a retired member of
  6 10 the system, and, if an active member is not selected,
  6 11 the member selected by the benefits advisory committee
  6 12 shall be paid their actual expenses incurred in
  6 13 performance of their duties and shall receive a per
  6 14 diem as specified in section 7E.6 for each day of
  6 15 service not exceeding forty days per year.
  6 16 Legislative members shall be paid the per diem
  6 17 specified in section 2.10, subsection 6, for each day
  6 18 of service, and their actual expenses incurred in the
  6 19 performance of their duties.  The per diem and
  6 20 expenses of the legislative members shall be paid from
  6 21 funds appropriated under section 2.12.  The following
  6 22 members shall be paid their actual expenses incurred
  6 23 in the performance of their duties as members of the
  6 24 board and the performance of their duties as members
  6 25 of the board shall not affect their salaries,
  6 26 vacations, or leaves of absence for sickness or
  6 27 injury:  the director of the department of personnel;
  6 28 the treasurer of state, or the treasurer's designee;
  6 29 the active member who is an employee of a school
  6 30 district, area education agency, or merged area; the
  6 31 active member who is not an employee of a school
  6 32 district, area education agency, or merged area; and,
  6 33 if an active member is selected, the active member
  6 34 selected by the benefits advisory committee.  The
  6 35 appointive terms of the members appointed by the
  6 36 governor and the member selected by the benefits
  6 37 advisory committee are for a period of six years
  6 38 beginning and ending as provided in section 69.19.  A
  6 39 vacancy in the membership of the board shall be filled
  6 40 in the same manner as the original appointment.
  6 41 Gubernatorial appointees to the board are subject to
  6 42 confirmation by the senate.
  6 43    4.  ADMINISTRATIVE AUTHORITY.
  6 44    The authority of the department to carry out its
  6 45 duties as provided by this chapter are,
  6 46 notwithstanding provisions of this chapter to the
  6 47 contrary, subject to the approval of the board.
  6 48    Sec.    .  NEW SECTION.  97B.8B  BENEFITS ADVISORY
  6 49 COMMITTEE.
  6 50    A benefits advisory committee shall be established
  7  1 whose duties are to make recommendations to the board
  7  2 of trustees concerning the disbursement of benefits to
  7  3 members of the system and to select a member of the
  7  4 board of trustees.
  7  5    The benefits advisory committee shall be comprised
  7  6 of representatives of constituent groups concerned
  7  7 with the system and shall consist of representatives
  7  8 of employers, active members, and retired members.
  7  9 The Iowa public employees' retirement system division
  7 10 of the department shall adopt rules under chapter 17A
  7 11 to provide for the selection of members to the
  7 12 committee."
  7 13    #3.  Page 50, by inserting after line 23 the
  7 14 following:
  7 15    "Sec.    .  Section 473.11, subsection 2,
  7 16 unnumbered paragraph 1, Code 1995, is amended to read
  7 17 as follows:
  7 18    The treasurer of state shall be the custodian of
  7 19 the energy conservation trust and shall invest the
  7 20 moneys in the trust, in consultation with the energy
  7 21 fund disbursement council established in subsection 3
  7 22 and the investment board of trustees of the Iowa
  7 23 public employees' retirement system, in accordance
  7 24 with the following guidelines:
  7 25    Sec.    .  BOARD TRANSITION – EFFECTIVE DATE.
  7 26    1.  Notwithstanding provisions of section 97B.8A,
  7 27 as enacted in this Act, to the contrary, the initial
  7 28 board of trustees of the Iowa public employees'
  7 29 retirement system shall consist of the following
  7 30 members, who shall serve the following terms:
  7 31    a.  The governor shall appoint to the initial board
  7 32 of trustees one member, not a member of the system,
  7 33 who is a member of a county board of supervisors or
  7 34 local school board and one member who is a retirement
  7 35 benefits specialist.  The terms of these two members
  7 36 appointed under this paragraph shall commence on July
  7 37 1, 1996 and expire on April 30, 2002.
  7 38    b.  The members of the investment board established
  7 39 under section 97B.8, Code 1995, who are an executive
  7 40 of a domestic life insurance company, an executive of
  7 41 a state or national bank, an active member who is an
  7 42 employee of a school district, area education agency,
  7 43 or merged area, an active member who is not an
  7 44 employee of a school district, area education agency,
  7 45 or merged area, and a retired member shall cease
  7 46 membership on the investment board and commence
  7 47 membership on the initial board of trustees on July 1,
  7 48 1996.  The terms of these members on the initial board
  7 49 of trustees shall expire on the same date as their
  7 50 terms would have expired on the investment board in
  8  1 accordance with section 97B.8, Code 1995.
  8  2    c.  The term of the member of the investment board
  8  3 established under section 97B.8, Code 1995, who is an
  8  4 executive of an industrial corporation located within
  8  5 the state of Iowa shall cease on July 1, 1996.  The
  8  6 governor shall appoint to the initial board of
  8  7 trustees one member who is a certified financial
  8  8 planner, for a term which shall commence on July 1,
  8  9 1996, and expire on the same date as the term would
  8 10 have expired of the member of the investment board
  8 11 established under section 97B.8, Code 1995, who is an
  8 12 executive of an industrial corporation.
  8 13    d.  The benefits advisory committee established in
  8 14 section 97B.8B, as enacted in this Act, shall appoint
  8 15 one member to the initial board of trustees for a term
  8 16 which shall commence on July 1, 1996, and expire on
  8 17 April 30, 2000.
  8 18    e.  The members of the investment board established
  8 19 under section 97B.8, Code 1995, who are legislative
  8 20 members shall cease membership on the investment board
  8 21 and commence membership on the initial board of
  8 22 trustees on July 1, 1996.  The terms of these members
  8 23 shall expire at the pleasure of the appointing
  8 24 authorities as provided in section 97B.8A, as enacted
  8 25 in this Act.
  8 26    f.  The director of the department of personnel
  8 27 shall cease membership on the investment board
  8 28 established under section 97B.8, Code 1995, and
  8 29 commence membership on the initial board of trustees
  8 30 on July 1, 1996.  The director of the department of
  8 31 personnel shall serve on the board of trustees as
  8 32 provided in section 97B.8A, as enacted in this Act.
  8 33    g.  The treasurer of state or the treasurer's
  8 34 designee shall commence membership on the initial
  8 35 board of trustees on July 1, 1996, and shall serve on
  8 36 the board of trustees as provided in section 97B.8A,
  8 37 as enacted in this Act.
  8 38    2.  Initial appointments by the governor under this
  8 39 section are subject to confirmation by the senate.  If
  8 40 a vacancy occurs as to a member of the initial board
  8 41 of trustees who is appointed by the governor prior to
  8 42 the expiration of a term as provided in this section,
  8 43 the governor shall appoint a member to serve the
  8 44 remainder of the term so that the membership
  8 45 requirements of section 97B.8A, as enacted in this
  8 46 Act, are fulfilled, and the appointment shall be
  8 47 subject to confirmation by the senate.  If a vacancy
  8 48 occurs as to the member appointed by the benefits
  8 49 advisory committee prior to the expiration of the term
  8 50 established in this section, the benefits advisory
  9  1 committee shall appoint a member to serve the
  9  2 remainder of the term.  Upon the expiration of a term
  9  3 established in this section, a member shall be
  9  4 appointed in the manner and for a term of service as
  9  5 specified in section 97B.8A, as enacted in this Act.
  9  6 Except as otherwise provided in this section, the
  9  7 initial board of trustees shall be subject to the
  9  8 requirements of section 97B.8A, as enacted in this
  9  9 Act.
  9 10    3.  In order to provide for the appointments to the
  9 11 initial board of trustees, this section of this Act,
  9 12 being deemed of immediate importance, takes effect
  9 13 upon enactment.
  9 14    Sec.    .  REPEAL.  Section 97B.8, Code 1995, is
  9 15 repealed."
  9 16    #4.  Page 70, by inserting after line 25 the
  9 17 following:
  9 18    "   .  The section of this Act which enacts section
  9 19 97B.8B, being deemed of immediate importance, takes
  9 20 effect upon enactment."
  9 21    #5.  By renumbering as necessary.  
  9 22 
  9 23 
  9 24                              
  9 25 JIM LIND
  9 26 
  9 27 
  9 28                              
  9 29 MICHAEL E. GRONSTAL
  9 30 SF 2245.204 76
  9 31 ec/jj
     

Text: S05153                            Text: S05155
Text: S05100 - S05199                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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