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PAG LIN 1 1 Amend Senate File 2245, as amended, passed, and 1 2 reprinted by the Senate, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "DIVISION I 1 6 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 1 7 Section 1. Section 97B.4, unnumbered paragraph 1, 1 8 Code 1995, is amended to read as follows: 1 9 The department, through the chief investment 1 10 officer and chief benefits officer, shall administer 1 11 this chapter. The department may adopt, amend, or 1 12 rescind rules, employ persons, execute contracts with 1 13 outside parties, make expenditures, require reports, 1 14 make investigations, and take other action it deems 1 15 necessary for the administration of the system in 1 16 conformity with the requirements of this chapter, the 1 17 applicable provisions of the Internal Revenue Code, 1 18 and all other applicable federal and state laws. The 1 19 rules shall be effective upon compliance with chapter 1 20 17A. Not later than the fifteenth day of December of 1 21 each year, the department shall submit to the governor 1 22 a report covering the administration and operation of 1 23 this chapter during the preceding fiscal year and 1 24 shall make recommendations for amendments to this 1 25 chapter. The report shall include a balance sheet of 1 26 the moneys in the Iowa public employees' retirement 1 27 fund. 1 28 Sec. 2. Section 97B.7, subsection 2, paragraph b, 1 29 unnumbered paragraphs 1 through 3, Code 1995, are 1 30 amended to read as follows: 1 31 To invest the portion of the retirement fund which 1 32 in the judgment of the department is not needed for 1 33 current payment of benefits under this chapter. The 1 34 department shall execute the disposition and 1 35 investment of moneys in the retirement fund in 1 36 accordance with the investment policy and goal 1 37 statement established by the investment board. In 1 38 establishing the investment policy of the fund and the 1 39 investment of the fund, the department and investment 1 40 board shall exercise the judgment and care, under the 1 41 circumstances then prevailing, which persons of 1 42 prudence, discretion, and intelligence exercise in the 1 43 management of their own affairs, not for the purpose 1 44 of speculation, but with regard to the permanent 1 45 disposition of the funds, considering the probable 1 46 income, as well as the probable safety, of their 1 47 capital. Within the limitations of the standard 1 48 prescribed in this section, the treasurer of state, 1 49 the department, and the board may acquire and retain 1 50 every kind of property and every kind of investment 2 1 which persons of prudence, discretion, and 2 2 intelligence acquire or retain for their own account. 2 3 The department and investment board shall give 2 4 appropriate consideration to those facts and 2 5 circumstances that the department and investment board 2 6 know or should know are relevant to the particular 2 7 investment or investment policy involved, including 2 8 the role the investment plays in the total value of 2 9 the retirement fund. 2 10 For the purposes of this paragraph, appropriate 2 11 consideration includes, but is not limited to, a 2 12 determination by the department and investment board 2 13 that the particular investment or investment policy is 2 14 reasonably designed to further the purposes of the 2 15 retirement system, taking into consideration the risk 2 16 of loss and the opportunity for gain or other return 2 17 associated with the investment or investment policy 2 18 and consideration of the following factors as they 2 19 relate to the retirement fund: 2 20 Sec. 3. Section 97B.7, subsection 2, paragraph b, 2 21 unnumbered paragraph 5, Code 1995, is amended to read 2 22 as follows: 2 23 Except as provided in section 97B.4, if there is 2 24 loss to the fund, the treasurer, the department, and 2 25 the board are not personally liable, and the loss 2 26 shall be charged against the retirement fund. There 2 27 is appropriated from the retirement fund the amount 2 28 required to cover a loss. Expenses incurred in the 2 29 sale and purchase of securities belonging to the 2 30 retirement fund shall be charged to the retirement 2 31 fund, and there is appropriated from the retirement 2 32 fund the amount required for the expenses incurred. 2 33 Investment management expenses shall be charged to the 2 34 investment income of the retirement fund, and there is 2 35 appropriated from the retirement fund the amount 2 36 required for the investment management expenses, 2 37 subject to the limitations stated in this unnumbered 2 38 paragraph. The amount appropriated for a fiscal year 2 39 under this unnumbered paragraph shall not exceedone-2 40halffour-tenths of one percent of the market value of 2 41 the retirement fund. The department shall report the 2 42 investment management expenses for a fiscal year as a 2 43 percent of the market value of the retirement fund in 2 44 the annual report to the governor required in section 2 45 97B.4. A person who has signed a contract with the 2 46 department for investment management purposes shall 2 47 meet the requirements for doing business in Iowa 2 48 sufficient to be subject to tax under rules of the 2 49 department of revenue and finance. 2 50 Sec. 4. Section 97B.11, Code 1995, is amended to 3 1 read as follows: 3 2 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE. 3 3 Each employer shall deduct from the wages of each 3 4 member of the system a contribution in the amount of 3 5 three and seven-tenths percent of the covered wages 3 6 paid by the employer, until the member's termination 3 7 or retirement from employment, whichever is earlier. 3 8 The contributions of the employer shall be in the 3 9 amount of five and seventy-five hundredths percent of 3 10 the covered wages of the member. 3 11 If the total of the contributions to be deducted 3 12 from the wages of a member and contributions picked up 3 13 and paid by the employer shall not exceed one dollar 3 14 for any calendar quarter, contributions shall not be 3 15 deducted or paid concerning that member and the member 3 16 shall not receive credit for membership service for 3 17 that quarter. 3 18 Sec. 5. Section 97B.14, Code 1995, is amended to 3 19 read as follows: 3 20 97B.14 CONTRIBUTIONS FORWARDED. 3 21 Contributions deducted from the wages of the member 3 22orunder section 97B.11 prior to January 1, 1995, 3 23 member contributions picked up by the employer under 3 24 section 97B.11A beginning January 1, 1995, and the 3 25 employer's contribution shall be forwarded to the 3 26 department for recording and deposited with the 3 27 treasurer of the state to the credit of the Iowa 3 28 public employees' retirement fund. Contributions 3 29 shall be remitted monthly, if total contributions by 3 30 both employee and employer amount to one hundred 3 31 dollars or more each month, and shall be otherwise 3 32 paid in such manner, at such times and under such 3 33 conditions, either by copies of payrolls or other 3 34 methods necessary or helpful in securing proper 3 35 identification of the member, as may be prescribed by 3 36 the department. 3 37 Sec. 6. Section 97B.15, Code 1995, is amended to 3 38 read as follows: 3 39 97B.15 RULES, POLICIES, AND PROCEDURES. 3 40 The department may adopt rules under chapter 17A 3 41 and establish procedures, not inconsistent with this 3 42 chapter, which are necessary or appropriate to 3 43 implement this chapter and shall adopt reasonable and 3 44 proper rules to regulate and provide for the nature 3 45 and extent of the proofs and evidence and the method 3 46 of taking and furnishing the proofs and evidence in 3 47 order to establish the right to benefits under this 3 48 chapter. The department may adopt rules, and take 3 49 action based on the rules, to conform the requirements 3 50 for receipt of retirement benefits under this chapter 4 1 to the mandates of applicable federal statutes and 4 2 regulations. 4 3 Prior to the adoption of rules, the department may 4 4 establish interim written policies and procedures, and 4 5 take action based on the policies and procedures, to 4 6 conform the requirements for receipt of retirement 4 7 benefits under this chapter to the applicable 4 8 requirements of federal law. 4 9 Sec. 7. Section 97B.17, unnumbered paragraph 1, 4 10 Code 1995, is amended to read as follows: 4 11 The department shall establish and maintain records 4 12 of each member, including but not limited to, the 4 13 amount of wages of each member, the contribution of 4 14 each member with interest, and interest dividends 4 15 credited. The records may be maintained in paper, 4 16 magnetic, or electronic form, including optical disk 4 17 storage. These records are the basis for the 4 18 compilation of the retirement benefits provided under 4 19 this chapter. The following records maintained under 4 20 this chapter containing personal identifiable 4 21 information are not public records for the purposes of 4 22 chapter 22: 4 23 Sec. 8. Section 97B.17, Code 1995, is amended by 4 24 adding the following new unnumbered paragraph: 4 25 NEW UNNUMBERED PARAGRAPH. Notwithstanding any 4 26 provisions of chapter 22 to the contrary, the 4 27 department's records may be released to any political 4 28 subdivision, instrumentality, or other agency of the 4 29 state solely for use in a civil or criminal law 4 30 enforcement activity pursuant to the requirements of 4 31 this paragraph. To obtain the records, the political 4 32 subdivision, instrumentality, or agency shall, in 4 33 writing, certify that the activity is authorized by 4 34 law, provide a written description of the information 4 35 desired, and describe the law enforcement activity for 4 36 which the information is sought. The department shall 4 37 not be civilly or criminally liable for the release or 4 38 rerelease of records in accordance with this 4 39 paragraph. 4 40 Sec. 9. Section 97B.25, Code 1995, is amended to 4 41 read as follows: 4 42 97B.25 APPLICATIONS FOR BENEFITS. 4 43 A representative designated by the chief benefits 4 44 officer and referred to in this chapter as a 4 45 retirement benefits specialist shall promptly examine 4 46 applications for retirement benefits and on the basis 4 47 of facts found shall determine whether or not the 4 48 claim is valid and if valid, the month with respect to 4 49 which benefits shall commence, the monthly benefit 4 50 amount payable, and the maximum duration. The 5 1 retirement benefits specialist shall promptly notify 5 2 the applicant and any other interested party of the 5 3 decision and the reasons. Unless the applicant or 5 4 other interested party, within thirty calendar days 5 5 after the notification was mailed to the applicant's 5 6 or party's last known address, files an appeal as 5 7 provided in section 97B.20A, the decision is final and 5 8 benefits shall be paid or denied in accord with the 5 9 decision. A retirement application shall not be 5 10 amended or revoked by the member once the first 5 11 retirement allowance is paid. A member's death during 5 12 the first month of entitlement shall not invalidate an 5 13 approved application. 5 14 Sec. 10. Section 97B.39, Code 1995, is amended to 5 15 read as follows: 5 16 97B.39 RIGHTS NOT TRANSFERABLE –NOTOR SUBJECT 5 17 TO LEGAL PROCESS – EXCEPTIONS. 5 18 The right of any person to any future payment under 5 19 this chapter is not transferable or assignable, at law 5 20 or in equity, and the moneys paid or payable or rights 5 21 existing under this chapter are not subject to 5 22 execution, levy, attachment, garnishment, or other 5 23 legal process, or to the operation of any bankruptcy 5 24 or insolvency law except for the purposes of enforcing 5 25 child, spousal, or medical support obligations or 5 26 marital property orders. For the purposes of 5 27 enforcing child, spousal, or medical support 5 28 obligations, the garnishment or attachment of or the 5 29 execution against compensation due a person under this 5 30 chapter97Bshall not exceed the amount specified in 5 31 15 U.S.C. } 1673(b). The department shall comply with 5 32 the provisions of a marital property order requiring 5 33 the selection of a particular benefit option, 5 34 designated beneficiary, or contingent annuitant if the 5 35 selection is otherwise authorized by this chapter and 5 36 the member has not received payment of the member's 5 37 first retirement allowance. However, a marital 5 38 property order shall not require the payment of 5 39 benefits to an alternative payee prior to the member's 5 40 retirement, prior to the date the member elects to 5 41 receive a lump sum distribution of accumulated 5 42 contributions pursuant to section 97B.53, or in an 5 43 amount that exceeds the benefits the member would 5 44 otherwise be eligible to receive pursuant to this 5 45 chapter. 5 46 Sec. 11. Section 97B.41, subsection 2, Code 5 47 Supplement 1995, is amended to read as follows: 5 48 2. "Accumulated contributions" means the total 5 49 obtained as of any date, by accumulating each 5 50 individual contribution by the memberat two percent6 1 with interest plus interest dividends as provided in 6 2 section 97B.70, for all completed calendar years and 6 3 for any completed calendar year for which the interest 6 4 dividend has not been declared and for completed 6 5 months of partially completed calendar yearsat two6 6percent interest plus the interest dividend rate6 7calculated for the previous year, compoundedannually,6 8from the end of the calendar year in which such6 9contribution was made to the first day of the month of6 10such dateas provided in section 97B.70. 6 11 Sec. 12. Section 97B.41, subsection 8, paragraph 6 12 b, subparagraph (6), Code Supplement 1995, is amended 6 13 to read as follows: 6 14 (6) Employees hired for temporary employment of 6 15 less than six months or one thousand and forty hours 6 16 in a calendar year. An employee who works for an 6 17 employer for six or more months in a calendar year or 6 18 who works for an employer for more than one thousand 6 19 forty hours in a calendar year is not a temporary 6 20 employee under this subparagraph. Adjunct instructors 6 21 are temporary employees for the purposes of this 6 22 chapter. As used in this section, unless the context 6 23 otherwise requires, "adjunct instructors" means 6 24 instructors employed by a community college or a 6 25 university governed by the state board of regents 6 26 without a continuing contract, whose teaching load 6 27 does not exceed one-half time for two full semesters 6 28 or three full quarters per calendar year. 6 29 Sec. 13. Section 97B.41, subsection 8, paragraph 6 30 b, Code Supplement 1995, is amended by adding the 6 31 following new subparagraph: 6 32 NEW SUBPARAGRAPH. (20) Persons employed through 6 33 any program described in section 15.225, subsection 1, 6 34 and provided by the Iowa conservation corps. 6 35 Sec. 14. Section 97B.41, Code Supplement 1995, is 6 36 amended by adding the following new subsection: 6 37 NEW SUBSECTION. 10A. "Internal Revenue Code" 6 38 means the Internal Revenue Code as defined in section 6 39 422.3. 6 40 Sec. 15. Section 97B.41, subsection 12, Code 6 41 Supplement 1995, is amended to read as follows: 6 42 12. "Membership service" means service rendered by 6 43 a member after July 4, 1953. Years of membership 6 44 service shall be counted to the complete quarter 6 45 calendar year. However, membership service for a 6 46 calendar year shall not include more than four 6 47 quarters. In determining a member's period of 6 48 membership service, the department shall combine all 6 49 periods of service for which the member has made 6 50 contributions. If the department has not maintained 7 1 the accumulated contribution account of the member for 7 2 a period of service, as provided pursuant to section 7 3 97B.53, subsection 6, the department shall credit the 7 4 member for the service if the member submits 7 5 satisfactory proof to the department that the member 7 6 did make the contributions for the period of service 7 7 and did not take a refund for the period of service. 7 8However, the department shall not implement the7 9amendments to this subsection, as enacted in 1994 Iowa7 10Acts, chapter 1183, unless and until the department7 11determines that the most recent annual actuarial7 12valuation of the retirement system indicates that the7 13employer and employee contribution rates in effect7 14under section 97B.11 can absorb the amendments to this7 15subsection and to section 97B.53, subsections 3 and 7,7 16section 97B.53, subsection 6, unnumbered paragraph 1,7 17and section 97B.70, by enacting a new subsection 4,7 18contained in 1994 Iowa Acts, chapter 1183, after7 19meeting the other established priorities of the7 20system. Until the amendments are implemented, the7 21department shall continue to implement the provisions7 22of section 97B.41, subsection 12, Code Supplement7 231993. As used in this subsection, unless the context7 24otherwise requires, "other established priorities of7 25the system" means that commencing January 1 following7 26the most recent annual actuarial valuation of the7 27system, the department has increased the covered wage7 28limitation from the previous year by three thousand7 29dollars, in accordance with section 97B.41, subsection7 3020, paragraph "b", subparagraph (11), and that the7 31department has implemented the amendments to section7 3297B.66, unnumbered paragraphs 1 and 2, section 97B.72,7 33unnumbered paragraphs 1 and 2, section 97B.72A,7 34subsection 1, unnumbered paragraph 1, section 97B.73A,7 35unnumbered paragraph 1, and section 97B.74, unnumbered7 36paragraphs 1 and 2, contained in 1994 Iowa Acts,7 37chapter 1183.7 38 Sec. 16. Section 97B.41, Code Supplement 1995, is 7 39 amended by adding the following new subsection: 7 40 NEW SUBSECTION. 13A. "Regular service" means 7 41 service for an employer other than special service. 7 42 Sec. 17. Section 97B.41, Code Supplement 1995, is 7 43 amended by adding the following new subsection: 7 44 NEW SUBSECTION. 14A. "Retirement" means that 7 45 period of time beginning when a member who has filed 7 46 an approved application for a retirement allowance has 7 47 survived into at least the first day of the member's 7 48 first month of entitlement and ending when the member 7 49 dies. 7 50 Sec. 18. Section 97B.41, subsection 15, paragraphs 8 1 a and b, Code Supplement 1995, are amended to read as 8 2 follows: 8 3 a. Service in the armed forces of the United 8 4 States, if the employee was employed by the employer 8 5 immediately prior to entry into the armed forces, and 8 6 if the employee was released from service and returns 8 7 to covered employment with the employer within twelve 8 8 months of the date on which the employee has the right 8 9 of release from service or within a longer period as 8 10providedrequired by the applicable laws of the United 8 11 States. 8 12 b. Leave of absence or vacation authorized by the 8 13 employer for a period not exceeding twelve months. A 8 14 leave of absence authorized pursuant to the 8 15 requirements of the federal Family and Medical Leave 8 16 Act of 1993 is considered a leave of absence 8 17 authorized by the employer. 8 18 Sec. 19. Section 97B.41, Code Supplement 1995, is 8 19 amended by adding the following new subsection: 8 20 NEW SUBSECTION. 16A. "Special service" means 8 21 service for an employer while employed in a protection 8 22 occupation as provided in section 97B.49, subsection 8 23 16, paragraph "a", and as a county sheriff, deputy 8 24 sheriff, or airport fire fighter as provided in 8 25 section 97B.49, subsection 16, paragraph "b". 8 26 Sec. 20. Section 97B.41, subsection 18, Code 8 27 Supplement 1995, is amended to read as follows: 8 28 18. a. "Three-year average covered wage" means a 8 29 member's covered wages averaged for the highest three 8 30 years of the member's service, except as otherwise 8 31 provided in this subsection. The highest three years 8 32 of a member's covered wages shall be determined using 8 33 calendar years. However, if a member's final quarter 8 34 of a year of employment does not occur at the end of a 8 35 calendar year, the department may determine the wages 8 36 for the third year by computing the average quarter of 8 37 all quarters from the member's highest calendar year 8 38 of covered wages not being used in the selection of 8 39 the two highest years and using the computed average 8 40 quarter for each quarter in the third year in which no 8 41 wages have been reported in combination with the final 8 42 quarter or quarters of the member's service to create 8 43 a full year. However, the department shall not use 8 44 the member's final quarter of wages if using that 8 45 quarter would reduce the member's three-year average 8 46 covered wage. If the three-year average covered wage 8 47 of a member exceeds the highest maximum covered wages 8 48 in effect for a calendar year during the member's 8 49 period of service, the three-year average covered wage 8 50 of the member shall be reduced to the highest maximum 9 1 covered wages in effect during the member's period of 9 2 service. 9 3 b. Notwithstanding any other provisions of this 9 4 subsection to the contrary, the three-year average 9 5 covered wage shall be computed as follows for the 9 6 following members: 9 7 (1) For a member who retires during the calendar 9 8 year beginning January 1, 1997, and whose three-year 9 9 average covered wage at the time of retirement exceeds 9 10 forty-eight thousand dollars, the member's covered 9 11 wages averaged for the highest four years of the 9 12 member's service or forty-eight thousand dollars, 9 13 whichever is greater. 9 14 (2) For a member who retires during the calendar 9 15 year beginning January 1, 1998, and whose three-year 9 16 average covered wage at the time of retirement exceeds 9 17 fifty-two thousand dollars, the member's covered wages 9 18 averaged for the highest five years of the member's 9 19 service or fifty-two thousand dollars, whichever is 9 20 greater. 9 21 (3) For a member who retires during the calendar 9 22 year beginning January 1, 1999, and whose three-year 9 23 average covered wage at the time of retirement exceeds 9 24 fifty-five thousand dollars, the member's covered 9 25 wages averaged for the highest six years of the 9 26 member's service or fifty-five thousand dollars, 9 27 whichever is greater. 9 28 (4) For a member who retires on or after January 9 29 1, 2000, but before January 1, 2003, and whose three- 9 30 year average covered wage at the time of retirement 9 31 exceeds fifty-five thousand dollars, the member's 9 32 covered wages averaged for the highest seven years of 9 33 the member's service or fifty-five thousand dollars, 9 34 whichever is greater. 9 35 For purposes of this paragraph, the highest years 9 36 of the member's service shall be determined using 9 37 calendar years and may be determined using one 9 38 computed year calculated in the manner and subject to 9 39 the restrictions provided in paragraph "a". 9 40 Sec. 21. Section 97B.41, subsection 20, paragraph 9 41 b, subparagraph (11), unnumbered paragraphs 1 and 2, 9 42 Code Supplement 1995, are amended by striking the 9 43 unnumbered paragraphs and inserting in lieu thereof 9 44 the following: 9 45 (11) For the calendar year beginning January 1, 9 46 1991, wages not in excess of thirty-one thousand 9 47 dollars. 9 48 (11A) For the calendar year beginning January 1, 9 49 1992, wages not in excess of thirty-four thousand 9 50 dollars. 10 1 (11B) For the calendar year beginning January 1, 10 2 1993, wages not in excess of thirty-five thousand 10 3 dollars. 10 4 (11C) For the calendar year beginning January 1, 10 5 1994, wages not in excess of thirty-eight thousand 10 6 dollars. 10 7 (11D) For the calendar year beginning January 1, 10 8 1995, wages not in excess of forty-one thousand 10 9 dollars. 10 10 (11E) For the calendar year beginning January 1, 10 11 1996, wages not in excess of forty-four thousand 10 12 dollars. 10 13 (11F) Commencing with the calendar year beginning 10 14 January 1, 1997, and for each subsequent calendar 10 15 year, wages not in excess of the amount permitted for 10 16 that year under section 401(a)(17) of the Internal 10 17 Revenue Code. 10 18 Sec. 22. Section 97B.41, subsection 20, paragraph 10 19 b, subparagraph (11), unnumbered paragraph 3, Code 10 20 Supplement 1995, is amended to read as follows: 10 21 Notwithstanding any other provision of this chapter 10 22 providing for the payment of the benefits provided in 10 23 section 97B.49, subsection 16 or 17, the department 10 24 shall establish the covered wages limitation which 10 25 applies to members covered under section 97B.49, 10 26 subsection 16 or 17, at the same level as is 10 27 established under this subparagraph for other members 10 28 of the system. 10 29 Sec. 23. Section 97B.42, unnumbered paragraph 1, 10 30 Code 1995, is amended to read as follows: 10 31 Each employee whose employment commences after July 10 32 4, 1953, or who has not qualified for credit for prior 10 33 service rendered prior to July 4, 1953, or any 10 34 publicly elected official of the state or any of its 10 35 political subdivisions shall become a member upon the 10 36 first day in which such employee is employed. The 10 37 employee shall continue to be an active member so long 10 38 as the employee continues in covered employment. The 10 39 employee shall cease to be an active member if the 10 40 employee joins another retirement system in the state 10 41 which is maintained in whole or in part by public 10 42 contributions or payments and receives retirement 10 43 credit for service in that other system for the same 10 44 position previously covered under this chapter. If an 10 45 employee joins another publicly maintained retirement 10 46 system and ceases to be an active member under this 10 47 chapter, the employee may elect to leave the 10 48 employee's accumulated contributions in the retirement 10 49 fund or receive a refund of the employee's accumulated 10 50 contributions in the manner provided for members who 11 1 are terminating covered employment pursuant to section 11 2 97B.53. However, if an employee joins another 11 3 publicly maintained retirement system and leaves the 11 4 employee's accumulated contributions in the retirement 11 5 fund, the employee shall not be eligible to receive 11 6 retirement benefits until the employee has a bona fide 11 7 retirement from employment with a covered employer as 11 8 provided in section 97B.52A, or until the employee 11 9 would otherwise be eligible to receive benefits upon 11 10 attaining the age of seventy years as provided in 11 11 section 97B.46. 11 12 Sec. 24. Section 97B.42, unnumbered paragraph 4, 11 13 Code 1995, is amended to read as follows: 11 14 Persons who are members of any other retirement 11 15 system in the state which is maintained in whole or in 11 16 part by public contributions other than persons who 11 17 are covered under the provisions of chapter 97, Code 11 18 1950, as amended by the Fifty-fourth General Assembly 11 19 on the date of the repeal of said chapter, under the 11 20 provisions of sections 97.50 through 97.53 shall not 11 21 become members under this chapter while still actively 11 22 participating in that other retirement system unless 11 23 the persons do not receive retirement credit for 11 24 service in that other system for the position to be 11 25 covered under this chapter. 11 26 Sec. 25. Section 97B.42, unnumbered paragraph 5, 11 27 Code 1995, is amended to read as follows: 11 28 Nothing herein contained shall be construed to 11 29 permit anyperson in public employment to be an active11 30member ofemployer to make any public contributions or 11 31 payments on behalf of an employee in the same position 11 32 for the same period of time to both the Iowa public 11 33 employees' retirement system and of any other 11 34 retirement system in the state which is supported in 11 35 whole or in part by public contributions or payments 11 36except as heretofore provided. 11 37 Sec. 26. Section 97B.42, Code 1995, is amended by 11 38 adding the following new unnumbered paragraph: 11 39 NEW UNNUMBERED PARAGRAPH. For purposes of this 11 40 section, a "retirement system in the state which is 11 41 maintained in whole or in part by public contributions 11 42 or payments" shall not include a deferred compensation 11 43 plan established under section 509A.12 or a tax- 11 44 sheltered annuity qualified under section 403(b) of 11 45 the Internal Revenue Code. 11 46 Sec. 27. Section 97B.48, subsection 1, Code 1995, 11 47 is amended to read as follows: 11 48 1. Retirement allowances shall be paid monthly, 11 49 except that an allowance of less than six hundred 11 50 dollars a year may, at the member's option, be paid as 12 1 a lump sum in anactuarial equivalentamount equal to 12 2 the sum of the member's and employer's accumulated 12 3 contributions and the retirement dividends standing to 12 4 the member's credit before December 31, 1966. Receipt 12 5 of the lump-sum payment by a member shall terminate 12 6 any and all entitlement for the period of service 12 7 covered of the member under this chapter. 12 8 Sec. 28. Section 97B.48A, subsection 1, Code 1995, 12 9 is amended to read as follows: 12 10 1. If, after the first day of the month in which12 11the member attains the age of fifty-five years and12 12until the member's sixty-fifth birthday,a member who 12 13 has not reached the member's sixty-fifth birthday and 12 14 who has a bona fide retirement under this chapter is 12 15 in regular full-time employment during a calendar 12 16 year, the member's retirement allowance shall be 12 17suspended for as long as the member remains in12 18employment for the remainder of that calendar year12 19 reduced by fifty cents for each dollar the member 12 20 earns over the limit provided in this subsection. 12 21 However,effective January 1, 1992,employment is not 12 22 full-time employment until the member receives 12 23 remuneration in an amount in excess of seven thousand 12 24 four hundred forty dollars for a calendar year, or an 12 25 amount equal to the amount of remuneration permitted 12 26 for a calendar year for persons under sixty-five years 12 27 of age before a reduction in federal Social Security 12 28 retirement benefits is required, whichever is higher. 12 29 Effective the first of the month in which a member 12 30 attains the age of sixty-five years, a retired member 12 31 may receive a retirement allowance without a reduction 12 32 after return to covered employment regardless of the 12 33 amount of remuneration received. 12 34 If a member dies and the full amount of the 12 35 reduction from retirement allowances required under 12 36 this subsection has not been paid, the remaining 12 37 amounts shall be deducted from the payments made, if 12 38 any, to the member's designated beneficiary or 12 39 contingent annuitant. If the member has selected an 12 40 option under which remaining payments are not required 12 41 or the remaining payments are insufficient to satisfy 12 42 the full amount of the reduction from retirement 12 43 allowances required under this subsection, the amount 12 44 still unpaid shall be a claim against the member's 12 45 estate. 12 46 Sec. 29. Section 97B.48A, subsection 4, Code 1995, 12 47 is amended to read as follows: 12 48 4. The department shall pay to the member the 12 49 accumulated contributions of the member and to the 12 50 employer the employer contributions, plustwo percent13 1 interest plus interest dividends as provided in 13 2 section 97B.70, for all completed calendar years, 13 3 compoundedannuallyas provided in section 97B.70, on 13 4 the covered wages earned by a retired member that are 13 5 not used in the recalculation of the retirement 13 6 allowance of a member. 13 7 Sec. 30. Section 97B.49, subsection 4, Code 13 8 Supplement 1995, is amended by adding the following 13 9 new unnumbered paragraph: 13 10 NEW UNNUMBERED PARAGRAPH. Effective January 1, 13 11 1997, for members who retired on or after July 1, 13 12 1953, and before July 1, 1990, with at least ten years 13 13 of prior and membership service, the minimum monthly 13 14 benefit payable at the normal retirement date for 13 15 prior and membership service shall be two hundred 13 16 dollars. The minimum monthly benefit payable shall be 13 17 increased by ten dollars for each year of prior and 13 18 membership service beyond ten years, up to a maximum 13 19 of twenty additional years of prior and membership 13 20 service. If benefits commenced on an early retirement 13 21 date, the amount of the benefit shall be reduced in 13 22 accordance with section 97B.50. If an optional 13 23 allowance was selected under section 97B.51, the 13 24 amount payable shall be the actuarial equivalent of 13 25 the minimum benefit. 13 26 Sec. 31. Section 97B.49, subsection 5, paragraph 13 27 b, Code Supplement 1995, is amended to read as 13 28 follows: 13 29 b. For each active or inactive vested member 13 30 retiring on or after July 1, 1990, with four or more 13 31 complete years of service, a monthly benefit shall be 13 32 computed which is equal to one-twelfth of an amount 13 33 equal tofifty-two percentthe applicable percentage 13 34 multiplier of the three-year average covered wage 13 35 multiplied by a fraction of years of service. The 13 36 applicable percentage multiplier shall be the 13 37 following: 13 38 (1) For active or inactive vested members retiring 13 39 on or after July 1, 1990, but before July 1, 1991, 13 40 fifty-two percent. 13 41 (2) For active or inactive vested members retiring 13 42 on or after July 1, 1991, but before July 1, 1992, 13 43 fifty-four percent. 13 44 (3) For active or inactive vested members retiring 13 45 on or after July 1, 1992, but before July 1, 1993, 13 46 fifty-six percent. 13 47 (4) For active or inactive vested members retiring 13 48 on or after July 1, 1993, but before July 1, 1994, 13 49 fifty-seven and four-tenths percent. 13 50 (5) For active or inactive vested members retiring 14 1 on or after July 1, 1994, sixty percent. 14 2 The applicable percentage multiplier shall be 14 3 subject to adjustments as provided in paragraphs "e" 14 4 and "f". 14 5Commencing July 1, 1991, the department shall14 6increase the percentage multiplier of the three-year14 7average covered wage by an additional two percent each14 8July 1 until reaching sixty percent of the three-year14 9average covered wage if the annual actuarial valuation14 10of the retirement system indicates for that year that14 11the cost of this increase in the percentage of the14 12three-year average covered wage used in computing14 13retirement benefits can be absorbed within the14 14employer and employee contribution rates in effect14 15under section 97B.11. However, commencing July 1,14 161994, if the annual actuarial valuation of the14 17retirement system indicates that the employer and14 18employee contribution rates in effect under section14 1997B.11 can absorb an increase in the percentage14 20multiplier in excess of two percent, the department14 21shall increase the percentage multiplier for that year14 22beyond two percent to the extent which the increase14 23can be absorbed by the contribution rates in effect,14 24not to exceed a maximum percentage multiplier of sixty14 25percent. The increase in the percentage multiplier14 26for a year applies only to the members retiring on or14 27after July 1 of the respective year.14 28If the annual actuarial valuation of the retirement14 29system in any year indicates that the full cost of the14 30increase provided under this paragraph cannot be14 31absorbed within the employer and employee contribution14 32rates in effect under section 97B.11, the department14 33shall reduce the increase to a level which the14 34department determines can be so absorbed.14 35 Notwithstanding any other provision of this chapter 14 36 providing for the payment of the benefits provided in 14 37 subsection 16 or 17, the department shallestablish14 38 apply the percentage multiplier which applies to 14 39 members covered under subsection 16 or 17 at the same 14 40 level as is established under this subsection for 14 41 other members of the system, including any 14 42 modification in the percentage multiplier as provided 14 43 in paragraphs "e" and "f". 14 44By November 15, 1995, the department shall set14 45aside from other moneys in the retirement fund three14 46million eight hundred sixty thousand dollars. The14 47moneys set aside shall be from the funds generated by14 48the employer and employee contributions in effect14 49under section 97B.11 that exceed the amount necessary14 50to fund the system's existing liabilities, as15 1determined in the annual actuarial valuation of the15 2system as of June 30, 1995. If the annual actuarial15 3valuation indicates that the amount of the employer15 4and employee contributions in excess of the amount15 5necessary to fund existing liabilities is less than15 6three million eight hundred sixty thousand dollars,15 7the department shall set aside all funds that are15 8available. The funds set aside shall not be used in15 9determining the covered wage limitation pursuant to15 10section 97B.41, subsection 20, paragraph "b",15 11subparagraph (11), on January 1, 1996. However, any15 12funds set aside which are not specifically dedicated15 13to a purpose by the Seventy-sixth General Assembly15 14shall be used in determining the covered wage15 15limitation thereafter.15 16In accordance with sections 97D.1 and 97D.4, it is15 17the intent of the general assembly that once the goal15 18of sixty percent of the three-year average covered15 19wage is attained for a percentage multiplier, the15 20department shall submit to the public retirement15 21systems committee a plan for future benefit15 22enhancements. This plan shall include, but is not15 23limited to, continuation in the increase in the15 24covered wage ceiling until reaching fifty-five15 25thousand dollars for a calendar year, providing for15 26annual adjustments in the annual dividends paid to15 27retired members as provided in section 97B.49,15 28subsection 13, and providing for the indexing of15 29terminated vested members' earned benefits at a rate15 30of three percent per year calculated from the date of15 31termination from covered employment until the date of15 32retirement.15 33 Sec. 32. Section 97B.49, subsection 5, Code 15 34 Supplement 1995, is amended by adding the following 15 35 new paragraph: 15 36 NEW PARAGRAPH. e. Notwithstanding any other 15 37 provisions of this section to the contrary, for 15 38 members retiring on or after July 1, 1997, and whose 15 39 three-year average covered wage exceeds fifty-five 15 40 thousand dollars, the monthly benefit shall be 15 41 calculated by multiplying the sum of the following 15 42 amounts by the fractions of years of service for that 15 43 member. 15 44 (1) For the first fifty-five thousand dollars of 15 45 the member's three-year average covered wage, one- 15 46 twelfth of an amount equal to the applicable 15 47 percentage multiplier otherwise provided in this 15 48 subsection multiplied by fifty-five thousand dollars. 15 49 (2) For that portion of a member's three-year 15 50 average covered wage that exceeds fifty-five thousand 16 1 dollars but is less than or equal to sixty-five 16 2 thousand dollars, one-twelfth of an amount equal to 16 3 the applicable percentage multiplier otherwise 16 4 provided in this subsection, reduced by ten percentage 16 5 points, multiplied by that portion. 16 6 (3) For that portion of a member's three-year 16 7 average covered wage that exceeds sixty-five thousand 16 8 dollars but is less than or equal to seventy-five 16 9 thousand dollars, one-twelfth of an amount equal to 16 10 the applicable percentage multiplier otherwise 16 11 provided in this subsection, reduced by fifteen 16 12 percentage points, multiplied by that portion. 16 13 (4) For that portion of a member's three-year 16 14 average covered wage that exceeds seventy-five 16 15 thousand dollars but is less than or equal to eighty- 16 16 five thousand dollars, one-twelfth of an amount equal 16 17 to the applicable percentage multiplier otherwise 16 18 provided in this subsection, reduced by twenty 16 19 percentage points, multiplied by that portion. 16 20 (5) For that portion of a member's three-year 16 21 average covered wage that exceeds eighty-five thousand 16 22 dollars but is less than or equal to ninety-five 16 23 thousand dollars, one-twelfth of an amount equal to 16 24 the applicable percentage multiplier otherwise 16 25 provided in this subsection, reduced by thirty 16 26 percentage points, multiplied by that portion. 16 27 (6) For that portion of a member's three-year 16 28 average covered wage that exceeds ninety-five thousand 16 29 dollars, one-twelfth of an amount equal to the 16 30 applicable percentage multiplier otherwise provided in 16 31 this subsection, reduced by forty percentage points, 16 32 multiplied by that portion. 16 33 The covered wage categories referred to in 16 34 subparagraphs (1) through (6) of this paragraph and 16 35 the fifty-five thousand dollar amount otherwise 16 36 specified in this paragraph shall be increased by the 16 37 department for each fiscal year, beginning July 1, 16 38 1998, by an amount that represents the increase in the 16 39 consumer price index during the previous twelve-month 16 40 period ending on June 30, as published annually in the 16 41 federal register by the federal department of labor, 16 42 bureau of labor statistics. 16 43 Sec. 33. Section 97B.49, subsection 5, Code 16 44 Supplement 1995, is amended by adding the following 16 45 new paragraph: 16 46 NEW PARAGRAPH. f. For each active or inactive 16 47 vested member retiring on or after July 1, 1996, the 16 48 percentage multiplier of the three-year average 16 49 covered wage used under subsections 5, 15, 16, and 17 16 50 to calculate the monthly retirement allowance shall be 17 1 increased by one-fourth of one percentage point for 17 2 each additional calendar quarter of membership service 17 3 beyond the applicable years of service, not to exceed 17 4 a total of five additional percentage points. For 17 5 purposes of this paragraph, "the applicable years of 17 6 service" shall be the following, based upon the 17 7 service retirement allowance selected: 17 8 (1) For members receiving a retirement allowance 17 9 for regular service under subsection 5 or 15, or 17 10 receiving a combined retirement allowance under 17 11 subsection 17, the applicable years of service is 17 12 thirty. 17 13 (2) For members receiving a retirement allowance 17 14 for service in a protection occupation under 17 15 subsection 16, paragraph "a", the applicable years of 17 16 service is twenty-five. 17 17 (3) For members receiving a retirement allowance 17 18 for service as a sheriff, deputy sheriff, or airport 17 19 fire fighter under subsection 16, paragraph "b", 17 20 subparagraph (1) or (2), the applicable years of 17 21 service is twenty-two. 17 22 Sec. 34. Section 97B.49, subsection 13, Code 17 23 Supplement 1995, is amended to read as follows: 17 24 13. a. A member who retired from the system 17 25 between January 1, 1976, and June 30, 1982, or a 17 26 contingent annuitant or beneficiary of such a member, 17 27 shall receive with the November1994 and the November17 2819951996 monthly benefitpaymentspayment a 17 29 retirement dividend equal toonetwo hundredeighty-17 30onetwenty-three percent of the monthly benefit 17 31 payment the member received for the preceding June, or 17 32 the most recently received benefit payment, whichever 17 33 is greater. The retirement dividend does not affect 17 34 the amount of a monthly benefit payment. 17 35 b. Each member who retired from the system between 17 36 July 4, 1953, and December 31, 1975, or a contingent 17 37 annuitant or beneficiary of such a member, shall 17 38 receive with the November1994 and the November 199517 39 1996 monthly benefitpaymentspayment a retirement 17 40 dividend equal to two hundredthirty-sixninety-two 17 41 percent of the monthly benefit payment the member 17 42 received for the preceding June, or the most recently 17 43 received benefit payment, whichever is greater. The 17 44 retirement dividend does not affect the amount of a 17 45 monthly benefit payment. 17 46 c. Notwithstanding the determination of the amount 17 47 of a retirement dividend under paragraph "a", "b", 17 48 "d",or"f", or "g", a retirement dividend shall not 17 49 be less than twenty-five dollars. 17 50 d. A member who retired from the system between 18 1 July 1, 1982, and June 30, 1986, or a contingent 18 2 annuitant or beneficiary of such a member, shall 18 3 receive with the November1994 and the November 199518 4 1996 monthly benefitpaymentspayment a retirement 18 5 dividend equal toforty-nineseventy-four percent of 18 6 the monthly benefit payment the member received for 18 7 the preceding June, or the most recently received 18 8 benefit payment, whichever is greater. The retirement 18 9 dividend does not affect the amount of a monthly 18 10 benefit payment. 18 11 e. If the member dies on or after July 1 of the 18 12 dividend year but before the payment date, the full 18 13 amount of the retirement dividend for that year shall 18 14 be paidto the designated beneficiaryto the member's 18 15 account, upon notification of the member's death.If18 16there is no beneficiary designated by the member, the18 17department shall pay the dividend to the member's18 18estate. The beneficiary, or the representative of the18 19member's estate, must apply for the dividend within18 20two years after the dividend is payable or the18 21dividend is forfeited.18 22 f. A member who retired from the system between 18 23 July 1, 1986, and June 30, 1990, or a contingent 18 24 annuitant or beneficiary of such a member, shall 18 25 receive with the November 1996and the November 199718 26 monthly benefitpaymentspayment a retirement dividend 18 27in an amount determined by the general assemblyequal 18 28 to twenty-four percent of the monthly benefit payment 18 29 the member received for the preceding June, or the 18 30 most recently received benefit payment, whichever is 18 31 greater. The retirement dividend does not affect the 18 32 amount of a monthly benefit payment. 18 33 Sec. 35. Section 97B.49, subsection 13, Code 18 34 Supplement 1995, is amended by adding the following 18 35 new paragraph: 18 36 NEW PARAGRAPH. g. Effective July 1, 1997, 18 37 commencing with dividends payable in November 1997, 18 38 and for each subsequent year, all members who retired 18 39 prior to July 1, 1990, shall be eligible for annual 18 40 dividend payments, payable in November of that year, 18 41 pursuant to the requirements of this paragraph. The 18 42 dividend payable in any given year shall be the sum of 18 43 the dollar amount of the dividend payable in the 18 44 previous November and the dividend adjustment. 18 45 The dividend adjustment for a given year shall be 18 46 calculated by multiplying the total of the retiree's 18 47 monthly benefit payments and the dividend payable to 18 48 the retiree in the previous calendar year by the 18 49 applicable percentage as determined by this paragraph. 18 50 The applicable percentage shall be the least of the 19 1 following percentages: 19 2 (1) The percentage representing eighty percent of 19 3 the percentage increase in the consumer price index 19 4 published in the federal register by the federal 19 5 department of labor, bureau of labor statistics, that 19 6 reflects the percentage increase in the consumer price 19 7 index for the twelve-month period ending June 30 of 19 8 the year that the dividend is to be paid. 19 9 (2) The percentage representing the percentage 19 10 amount the actuary has certified, in the annual 19 11 actuarial valuation of the system as of June 30 of the 19 12 year in which the dividend is to be paid, that the 19 13 fund can absorb without requiring an increase in the 19 14 employer and employee contributions to the fund. 19 15 (3) Three percent. 19 16 The dividend determined pursuant to this paragraph 19 17 shall not be used to increase the monthly benefit 19 18 amount payable. 19 19 Sec. 36. Section 97B.49, subsection 15, paragraph 19 20 b, Code Supplement 1995, is amended to read as 19 21 follows: 19 22 b. For each active or inactive vested member 19 23 retiring on or after July 1, 1990, and before July 1, 19 24 1996, who is at least fifty-five years of age and for 19 25 which the sum of the number of years of membership 19 26 service and prior service and the member's age in 19 27 years as of the member's last birthday equals or 19 28 exceeds ninety-two, a monthly benefit shall be 19 29 computed which is equal to one-twelfth of the same 19 30 percentage of the three-year average covered wage of 19 31 the member as is provided in subsection 5. 19 32 Sec. 37. Section 97B.49, subsection 15, Code 19 33 Supplement 1995, is amended by adding the following 19 34 new paragraphs: 19 35 NEW PARAGRAPH. c. For each active or inactive 19 36 vested member retiring on or after July 1, 1996, and 19 37 before the implementation date provided in paragraph 19 38 "d", subparagraph (2), who is at least fifty-five 19 39 years of age and for which the sum of the number of 19 40 years of membership service and prior service and the 19 41 member's age in years as of the member's last birthday 19 42 equals or exceeds ninety, a monthly benefit shall be 19 43 computed which is equal to one-twelfth of the same 19 44 percentage of the three-year average covered wage of 19 45 the member as is provided in subsection 5, multiplied 19 46 by a fraction of years of service as is provided in 19 47 subsection 5. 19 48 NEW PARAGRAPH. d. (1) For each active or 19 49 inactive vested member retiring on or after the 19 50 implementation date provided in subparagraph (2), who 20 1 is at least fifty-five years of age and for which the 20 2 sum of the number of years of membership service and 20 3 prior service and the member's age in years as of the 20 4 member's last birthday equals or exceeds eighty-eight, 20 5 a monthly benefit shall be computed which is equal to 20 6 one-twelfth of the same percentage of the three-year 20 7 average covered wage of the member as is provided in 20 8 subsection 5, multiplied by a fraction of years of 20 9 service as is provided in subsection 5. 20 10 (2) The department shall implement this paragraph 20 11 on July 1, 1997, or on the date that the department 20 12 determines that the most recent annual actuarial 20 13 valuation of the system indicates that the employer 20 14 and employee contribution rates in effect under 20 15 section 97B.11 can absorb the costs of this paragraph, 20 16 whichever is later. However, until this paragraph is 20 17 implemented, the department shall not pay a dividend 20 18 adjustment pursuant to subsection 13, paragraph "g". 20 19 Sec. 38. Section 97B.49, subsection 16, paragraph 20 20 e, Code Supplement 1995, is amended to read as 20 21 follows: 20 22 e. Annually, the department of personnel shall 20 23 actuarially determine the cost of the additional 20 24 benefits provided for members covered under paragraph 20 25 "a" and the cost of the additional benefits provided 20 26 for members covered under paragraph "b" as percents of 20 27 the covered wages of the employees covered by this 20 28 subsection. Sixty percent of the cost shall be paid 20 29 by the employers of employees covered under this 20 30 subsection and forty percent of the cost shall be paid 20 31 by the employees. The employer and employee 20 32 contributions required under this paragraph are in 20 33 addition to the contributions paid undersection20 34 sections 97B.11 and 97B.11A. 20 35 Sec. 39. Section 97B.49, subsection 16, Code 20 36 Supplement 1995, is amended by adding the following 20 37 new paragraph: 20 38 NEW PARAGRAPH. m. For the fiscal year commencing 20 39 July 1, 1992, and each succeeding fiscal year, the 20 40 department of public safety shall pay to the 20 41 department of personnel from funds appropriated to the 20 42 department of public safety, the amount necessary to 20 43 pay the employer share of the cost of the additional 20 44 benefits provided to a fire prevention inspector peace 20 45 officer pursuant to paragraph "d", subparagraph (8). 20 46 Sec. 40. Section 97B.49, Code Supplement 1995, is 20 47 amended by adding the following new subsection: 20 48 NEW SUBSECTION. 17. a. An active or inactive 20 49 vested member, who is or has been employed in both 20 50 special service and regular service, who retires on or 21 1 after July 1, 1996, with four or more completed years 21 2 of service and at the time of retirement is at least 21 3 fifty-five years of age, may elect to receive, in lieu 21 4 of the receipt of any other benefits under this 21 5 section, a combined monthly retirement allowance equal 21 6 to the sum of the following: 21 7 (1) One-twelfth of an amount equal to the 21 8 applicable percentage multiplier established in 21 9 subsection 5 of the member's three-year average 21 10 covered wage multiplied by a fraction of years of 21 11 service. The fraction of years of service for 21 12 purposes of this subparagraph shall be the actual 21 13 years of service, not to exceed twenty-two, earned in 21 14 a position described in subsection 16, paragraph "b", 21 15 for which special service contributions were made, 21 16 divided by twenty-two. 21 17 (2) One-twelfth of an amount equal to the 21 18 applicable percentage multiplier established in 21 19 subsection 5 of the member's three-year average 21 20 covered wage multiplied by a fraction of years of 21 21 service. The fraction of years of service for 21 22 purposes of this subparagraph shall be the actual 21 23 years of service, not to exceed twenty-five, earned in 21 24 a position described in subsection 16, paragraph "a", 21 25 for which special service contributions were made, 21 26 divided by twenty-five. 21 27 (3) One-twelfth of an amount equal to the 21 28 applicable percentage multiplier established in 21 29 subsection 5 of the member's three-year average 21 30 covered wage multiplied by a fraction of years of 21 31 service. The fraction of years of service for 21 32 purposes of this subparagraph shall be the actual 21 33 years of service, not to exceed thirty, for which 21 34 regular service contributions were made, divided by 21 35 thirty. However, any otherwise applicable age 21 36 reduction for early retirement shall apply to the 21 37 calculation under this subparagraph. 21 38 In calculating the fractions of years of service 21 39 under subparagraphs (1) and (2), a member shall not 21 40 receive special service credit for years of service 21 41 for which the member and the member's employer did not 21 42 make the required special service contributions to the 21 43 department. 21 44 b. In calculating the combined monthly retirement 21 45 allowance pursuant to paragraph "a", the sum of the 21 46 fraction of years of service provided in paragraph 21 47 "a", subparagraphs (1), (2), and (3), shall not exceed 21 48 one. If the sum of the fractions of years of service 21 49 would exceed one, the department shall deduct years of 21 50 service first from the calculation under paragraph 22 1 "a", subparagraph (3), and then from the calculation 22 2 under paragraph "a", subparagraph (2), if necessary, 22 3 so that the sum of the fractions of years of service 22 4 shall equal one. 22 5 c. (1) In calculating the combined monthly 22 6 retirement allowance pursuant to paragraph "a", for 22 7 members retiring on or after July 1, 1997, whose 22 8 three-year average covered wage exceeds fifty-five 22 9 thousand dollars, each calculation under paragraph 22 10 "a", subparagraphs (1), (2), and (3) of this 22 11 subsection shall be subject to reduction, calculated 22 12 in the manner provided in subsection 5, paragraph "e". 22 13 (2) In calculating the combined monthly retirement 22 14 allowance pursuant to paragraph "a", and in 22 15 determining the applicable percentage multiplier 22 16 established in subsection 5, the member shall be 22 17 entitled to an addition in the percentage multiplier 22 18 in accordance with subsection 5, paragraph "f", only 22 19 for those years of service in excess of thirty years. 22 20 Any addition in the percentage multiplier shall be 22 21 included in the calculations required under paragraph 22 22 "a", subparagraphs (1), (2), and (3) of this 22 23 subsection. 22 24 Sec. 41. Section 97B.50, subsection 2, Code 1995, 22 25 is amended to read as follows: 22 26 2. a. A vested member who retires from the system 22 27 due to disability and commences receiving disability 22 28 benefits pursuant to the federal Social Security Act, 22 29 42 U.S.C. } 423 et seq., and who has not reached the 22 30 normal retirement date, shall receive benefits under 22 31 section 97B.49 and shall not have benefits reduced 22 32 upon retirement as required under subsection 1 22 33 regardless of whether the member has completed thirty 22 34 or more years of membership service. However, the 22 35 benefits shall be suspended during any period in which 22 36 the member returns to covered employment. This 22 37 section takes effect July 1, 1990, for a member 22 38 meeting the requirements of this paragraph who retired 22 39 from the system at any time after July 4, 1953. 22 40 Eligible members are entitled to the receipt of 22 41 retroactive adjustment payments back to July 1, 1990, 22 42 notwithstanding the requirements of subsection 4. 22 43 b. A vested member who retires from the system due 22 44 to disability and commences receiving disability 22 45 benefits pursuant to the federal Railroad Retirement 22 46 Act, 45 U.S.C. } 231 et seq., and who has not reached 22 47 the normal retirement date, shall receive benefits 22 48 under section 97B.49 and shall not have benefits 22 49 reduced upon retirement as required under subsection 1 22 50 regardless of whether the member has completed thirty 23 1 or more years of membership service. However, the 23 2 benefits shall be suspended during any period in which 23 3 the member returns to covered employment. This 23 4 section takes effect July 1, 1990, for a member 23 5 meeting the requirements of this paragraph who retired 23 6 from the system at any time since July 4, 1953. 23 7 Eligible members are entitled to the receipt of 23 8 retroactive adjustment payments back to July 1, 1990, 23 9 notwithstanding the requirements of subsection 4. 23 10 Sec. 42. Section 97B.51, subsection 3, Code 23 11 Supplement 1995, is amended to read as follows: 23 12 3. A member who had elected to take the option 23 13 stated in subsection 1 of this section may, at any 23 14 time prior to retirement, revoke such an election by 23 15 written notice to the department. A member shall not 23 16 change or revoke an election once the first retirement 23 17 allowance is paid. 23 18 Sec. 43. Section 97B.51, subsection 5, Code 23 19 Supplement 1995, is amended to read as follows: 23 20 5. At retirement, a member may designate that upon 23 21 the member's death, a specified amount of money shall 23 22 be paid to a named beneficiary, and the member's 23 23 monthly retirement allowance shall be reduced by an 23 24 actuarially determined amount to provide for the lump 23 25 sum payment. The amount designated by the member must 23 26 be in thousand dollar increments, and theand shall be 23 27 limited to the amount of the member's accumulated 23 28 contributions. The amount designated shall not lower 23 29 the monthly retirement allowance of the member by more 23 30 than one-half the amount payable under section 97B.49, 23 31 subsection 1 or 5. A member may designate a different 23 32 beneficiary if the original named beneficiary 23 33 predeceases the member. 23 34 Sec. 44. Section 97B.51, subsection 6, Code 23 35 Supplement 1995, is amended to read as follows: 23 36 6. A member may elect to receive a decreased 23 37 retirement allowance during the member's lifetime with 23 38 provision that in event of the member's death during 23 39 the first one hundred twenty months of retirement, 23 40 monthly payments of the member's decreased retirement 23 41 allowance shall be made to the member's beneficiary 23 42 until a combined total of one hundred twenty monthly 23 43 payments have been made to the member and the member's 23 44 beneficiary. When the member designates multiple 23 45 beneficiaries, the present value of the remaining 23 46 payments shall be paid in a lump sum to each 23 47 beneficiary, either in equal shares to the 23 48 beneficiaries, or if the member specifies otherwise in 23 49 a written request, in the specified proportion. A 23 50 member may designate a different beneficiary if the 24 1 original named beneficiary predeceases the member. 24 2 Sec. 45. Section 97B.52, subsection 1, Code 24 3 Supplement 1995, is amended to read as follows: 24 4 1. If a member dies prior to the member's first 24 5 month of entitlement, the accumulated contributions of 24 6 the member at the date of death plus the product of an 24 7 amount equal to the highest year of covered wages of 24 8 the deceased member and the number of years of 24 9 membership service divided bythirtythe applicable 24 10 denominator shall be paid to the member's beneficiary 24 11 in a lump sum payment. However, a lump sum payment 24 12 made to a beneficiary under this subsection due to the 24 13 death of a member shall not be less than the amount 24 14 that would have been payable on the death of the 24 15 member on June 30, 1984, under this subsection as it 24 16 appeared in the 1983 Code. 24 17 As used in this subsection, "applicable 24 18 denominator" means the following, based upon the type 24 19 of membership service in which the member served 24 20 either on the date of death, or if the member died 24 21 after terminating service, on the date of the member's 24 22 last termination of service: 24 23 a. For regular service, the applicable denominator 24 24 is thirty. 24 25 b. For service in a protection occupation, as 24 26 defined in section 97B.49, subsection 16, paragraph 24 27 "d", the applicable denominator is twenty-five. 24 28 c. For service as a sheriff, deputy sheriff, or 24 29 airport fire fighter, as provided in section 97B.49, 24 30 subsection 16, paragraph "b", the applicable 24 31 denominator is twenty-two. 24 32 Effective July 1, 1978, a method of payment under 24 33 this subsection filed with the department by a member 24 34 does not apply. 24 35 Sec. 46. Section 97B.52, subsection 3, paragraph 24 36 b, Code Supplement 1995, is amended to read as 24 37 follows: 24 38 b. If a death benefit is due and payable, interest 24 39 shall continue to accumulate through the month 24 40 preceding the month in which payment is made to the 24 41 designated beneficiary, heirs at law, or the estate 24 42 unless the payment of the death benefit is delayed 24 43 because of a dispute between alleged heirs, in which 24 44 case the benefit due and payable shall be placed in a 24 45 noninterest bearing escrow account until the 24 46 beneficiary is determined in accordance with this 24 47 section. In order to receive the death benefit, the 24 48 beneficiary, heirs at law, or the estate, or any other 24 49 third-party payee, must apply to the department within 24 50twofive years of the member's death. 25 1 The department shall reinstate a designated 25 2 beneficiary's right to receive a death benefit beyond 25 3 the five-year limitation if the designated beneficiary 25 4 was the member's spouse at the time of the member's 25 5 death and the distribution is required or permitted 25 6 pursuant to Internal Revenue Code section 401(a)(9) 25 7 and the applicable treasury regulations. 25 8 Sec. 47. Section 97B.52, subsection 5, Code 25 9 Supplement 1995, is amended to read as follows: 25 10 5. Following written notification to the 25 11 department, a beneficiary of a deceased member may 25 12 waive current and future rights to payments to which 25 13 the beneficiary would otherwise be entitled under 25 14 sections 97B.51 and this section. Upon receipt of the 25 15 waiver, the department shall payto the estate of the25 16deceased memberthe amount designated to be received 25 17 bythethat beneficiary to the member's other 25 18 surviving beneficiary or beneficiaries or to the 25 19 estate of the deceased member, as elected by the 25 20 beneficiary in the waiver. If the payments being 25 21 waived are payable to the member's estate and an 25 22 estate is not probated, the payments shall be paid to 25 23 the deceased member's surviving spouse, or if there is 25 24 no surviving spouse, to the member's heirs other than 25 25 the beneficiary who waived the payments. 25 26 Sec. 48. Section 97B.52A, Code Supplement 1995, is 25 27 amended by adding the following new subsection: 25 28 NEW SUBSECTION. 3. A member who terminates 25 29 covered employment but maintains an employment 25 30 relationship with an employer that made contributions 25 31 to the system on the member's behalf does not have a 25 32 bona fide retirement until all employment, including 25 33 employment which is not covered by this chapter, with 25 34 such employer is terminated for at least thirty days. 25 35 In order to receive retirement benefits, the member 25 36 must file a completed application for benefits form 25 37 with the department before returning to any employment 25 38 with the same employer. 25 39 Sec. 49. Section 97B.53, subsection 3, Code 25 40 Supplement 1995, is amended to read as follows: 25 41 3. The accumulated contributions of a terminated, 25 42 vested member shall be credited with interest, 25 43 including interest dividends, in the manner provided 25 44 in section 97B.70. Interest and interest dividends 25 45 shall be credited to the accumulated contributions of 25 46 members who terminate service and subsequently become 25 47 vested in accordance with section 97B.70.However,25 48the department shall not implement the amendments to25 49this subsection or to subsection 6, unnumbered25 50paragraph 1, or to subsection 7, as enacted in 199426 1Iowa Acts, chapter 1183, unless and until the26 2department determines that the most recent annual26 3actuarial valuation of the retirement system indicates26 4that the employer and employee contribution rates in26 5effect under section 97B.11 can absorb the amendments26 6to these provisions of this section and the amendments26 7to section 97B.41, subsection 12, and section 97B.70,26 8by enacting a new subsection 4, contained in 1994 Iowa26 9Acts, chapter 1183, after meeting the other26 10established priorities of the system, as defined in26 11section 97B.41, subsection 12. Until the amendments26 12are implemented, the department shall continue to26 13implement the provisions of section 97B.53,26 14subsections 3 and 7, and section 97B.53, subsection 6,26 15unnumbered paragraph 1, 1993 Code of Iowa.26 16 Sec. 50. Section 97B.53B, subsection 1, paragraph 26 17 c, subparagraph (4), Code 1995, is amended to read as 26 18 follows: 26 19 (4)A distributionAnnual distributions of less 26 20 than two hundred dollars of taxable income. 26 21 Sec. 51. Section 97B.66, unnumbered paragraph 1, 26 22 Code Supplement 1995, is amended to read as follows: 26 23 A vested or retired member who was a member of the 26 24 teachers insurance and annuity association-college 26 25 retirement equity fund at any time between July 1, 26 26 1967 and June 30, 1971 and who became a member of the 26 27 system on July 1, 1971, upon submitting verification 26 28 of service and wages earned during the applicable 26 29 period of service under the teachers insurance and 26 30 annuity association-college retirement equity fund, 26 31 may make employer and employee contributions to the 26 32 system based upon the covered wages of the member and 26 33 the covered wages and the contribution rates in effect 26 34 for all or a portion of that period of service and 26 35 receive credit for membership service under this 26 36 system equivalent to the applicable period of 26 37 membership service in the teachers insurance and 26 38 annuity association-college retirement equity fund for 26 39 which the contributions have been made. In addition, 26 40 a member making employer and employee contributions 26 41 because of membership in the teachers insurance and 26 42 annuity association-college retirement equity fund 26 43 under this section who was a member of the system on 26 44 June 30, 1967 and withdrew the member's accumulated 26 45 contributions because of membership on July 1, 1967 in 26 46 the teachers insurance and annuity association-college 26 47 retirement equity fund, may make employee 26 48 contributions to the system for all or a portion of 26 49 the period of service under the system prior to July 26 50 1, 1967. A member making contributions pursuant to 27 1 this section may make the contributions either for the 27 2 entire applicable period of service, or, effective27 3upon the date that the department determines that the27 4amendments to this paragraph and unnumbered paragraph27 52 contained in 1994 Iowa Acts, chapter 1183, shall be27 6implemented,for portions of the period of service, 27 7 and if contributions are made for portions of the 27 8 period of service, the contributions shall be in 27 9 increments of one or moreyears, as long as the27 10increments represent full years and not a portion of a27 11yearcalendar quarters.However, the department shall27 12not implement the amendments to this paragraph or27 13unnumbered paragraph 2, as enacted in 1994 Iowa Acts,27 14chapter 1183, unless and until the department27 15determines that the most recent annual actuarial27 16valuation of the retirement system indicates that the27 17employer and employee contribution rates in effect27 18under section 97B.11 can absorb the amendments to this27 19paragraph and unnumbered paragraph 2 and to section27 2097B.72, unnumbered paragraphs 1 and 2, section27 2197B.72A, subsection 1, unnumbered paragraph 1, section27 2297B.73A, unnumbered paragraph 1, and section 97B.74,27 23unnumbered paragraphs 1 and 2, contained in 1994 Iowa27 24Acts, chapter 1183, after meeting the other27 25established priority of the system. Until the27 26amendments are implemented, the department shall27 27continue to implement the provisions of section27 2897B.66, unnumbered paragraphs 1 and 2, Code Supplement27 291993. As used in this section, unless the context27 30otherwise requires, "other established priority of the27 31system" means that commencing January 1 following the27 32most recent annual actuarial valuation of the system,27 33the department has increased the covered wage27 34limitation from the previous year by three thousand27 35dollars, in accordance with section 97B.41, subsection27 3620, paragraph "b", subparagraph (11).27 37 Sec. 52. Section 97B.66, unnumbered paragraph 2, 27 38 Code Supplement 1995, is amended to read as follows: 27 39 The contributions paid by the vested or retired 27 40 member shall be equal to the accumulated contributions 27 41 as defined in section 97B.41, subsection 2, by the 27 42 member for the applicable period of service, and the 27 43 employer contribution for the applicable period of 27 44 service under the teachers insurance and annuity 27 45 association-college retirement equity fund, that would 27 46 have been or had been contributed by the vested or 27 47 retired member and the employer, if applicable, plus 27 48 interest on the contributions that would have accrued 27 49 for the applicable period from the date the previous 27 50 applicable period of service commenced under this 28 1 system or from the date the service of the member in 28 2 the teachers insurance and annuity association-college 28 3 retirement equity fund commenced to the date of 28 4 payment of the contributions by the memberequal to28 5two percent plus the interest dividend rate applicable28 6for each yearas provided in section 97B.70. 28 7 Sec. 53. Section 97B.66, unnumbered paragraph 3, 28 8 Code Supplement 1995, is amended to read as follows: 28 9 However,effective January 1, 1994,the department 28 10 shall ensure that the member, in exercising an option 28 11 provided in this section, does not exceed the amount 28 12 of annual additions to a member's account permitted 28 13 pursuant to section 415 of the federal Internal 28 14 Revenue Code. 28 15 Sec. 54. Section 97B.68, subsection 1, Code 1995, 28 16 is amended to read as follows: 28 17 1. Effective July 1,19881996, a person who is a 28 18 member of the federal civil service retirement program 28 19 or the federal employee's retirement system is not 28 20 eligible for membership in the Iowa public employees' 28 21 retirement system for the same position, and this 28 22 chapter does not apply to that employee. An employee 28 23 whose membership in the federal civil service 28 24 retirement program or the federal employee's 28 25 retirement system is subsequently terminated shall 28 26 immediately notify the employee's employer and the 28 27 department of personnel of that fact, and the employee 28 28 shall become subject to this chapter on the date the 28 29 notification is received by the department. 28 30 Sec. 55. Section 97B.68, Code 1995, is amended by 28 31 adding the following new subsection: 28 32 NEW SUBSECTION. 3. Effective July 1, 1996, an 28 33 employee who participates in the federal civil service 28 34 retirement program or the federal employee's 28 35 retirement system may be covered under this chapter if 28 36 otherwise eligible. The employee shall not be covered 28 37 under this chapter, however, unless the employee is 28 38 not credited for service in the federal civil service 28 39 retirement system or the federal employee's retirement 28 40 system for the position to be covered under this 28 41 chapter. This subsection shall not be construed to 28 42 permit any employer to contribute on behalf of an 28 43 employee for the same position and the same period of 28 44 service to both the Iowa public employees' retirement 28 45 system and either the federal civil service retirement 28 46 program or the federal employee's retirement system. 28 47 Sec. 56. Section 97B.70, Code Supplement 1995, is 28 48 amended to read as follows: 28 49 97B.70 INTEREST AND DIVIDENDS TO MEMBERS. 28 50 1.InterestFor calendar years prior to January 1, 29 1 1997, interest at two percent per annum and interest 29 2 dividends declared by the department shall be credited 29 3 to the member's contributions and the employer's 29 4 contributions to become part of the accumulated 29 5 contributions thereby. 29 61.a. The average rate of interest earned shall be 29 7 determined upon the following basis: 29 8a.(1) Investment income shall include interest 29 9 and cash dividends on stock. 29 10b.(2) Investment income shall be accounted for on 29 11 an accrual basis. 29 12c.(3) Capital gains and losses, realized or 29 13 unrealized, shall not be included in investment 29 14 income. 29 15d.(4) Mean assets shall include fixed income 29 16 investments valued at cost or on an amortized basis, 29 17 and common stocks at market values or cost, whichever 29 18 is lower. 29 19e.(5) The average rate of earned interest shall 29 20 be the quotient of the investment income and the mean 29 21 assets of the retirement fund. 29 222.b. The interest dividend shall be determined 29 23 within sixty days after the end of each calendar year 29 24 as follows: 29 25 The dividend rate for a calendar year shall be the 29 26 excess of the average rate of interest earned for the 29 27 year over the statutory two percent rate plus twenty- 29 28 five hundredths of one percent. The average rate of 29 29 interest earned and the interest dividend rate in 29 30 percent shall be calculated to the nearest one 29 31 hundredth, that is, to two decimal places. Interest 29 32 and interest dividends calculated pursuant to this 29 33 subsection shall be compounded annually. 29 34 2. For calendar years beginning January 1, 1997, a 29 35 per annum interest rate at one percent above the 29 36 interest rate on one-year certificates of deposit 29 37 shall be credited to the member's contributions and 29 38 the employer's contributions to become part of the 29 39 accumulated contributions. For purposes of this 29 40 subsection, the interest rate on one-year certificates 29 41 of deposit shall be determined by the department based 29 42 on the average rate for such certificates of deposit 29 43 as of the first business day of each year as published 29 44 in a publication of general acceptance in the business 29 45 community. The per annum interest rate shall be 29 46 credited on a quarterly basis by applying one-quarter 29 47 of the annual interest rate to the sum of the 29 48 accumulated contributions as of the end of the 29 49 previous calendar quarter. 29 50 3. Interest and interest dividends shall be 30 1 credited to the contributions of active members and 30 2 inactive vested members until the first of the month 30 3 coinciding with or next following the member's 30 4 retirement date. 30 5 4.Effective upon the date that the department30 6determines that this subsection shall be implemented,30 7interestInterest and interest dividends shall be 30 8 credited to the contributions of a person who leaves 30 9 the contributions in the retirement fund upon 30 10 termination from covered employment prior to achieving 30 11 vested status, but who subsequently achieves vested 30 12 status. The interest and interest dividends shall be 30 13 credited to the contributions commencingeitherupon 30 14the date that the department determines that this30 15subsection shall be implemented, orthe date on which 30 16 the person becomes a vested member, whichever is30 17later. Interest and interest dividends shall cease 30 18 upon the first of the month coinciding with or next 30 19 following the person's retirement date. If the 30 20 department no longer maintains the accumulated 30 21 contribution account of the person pursuant to section 30 22 97B.53, but the person submits satisfactory proof to 30 23 the department that the person did make the 30 24 contributions, the department shall credit interest 30 25 and interest dividends in the manner provided in this 30 26 subsection.However, the department shall not30 27implement this subsection, unless and until the30 28department determines that the most recent annual30 29actuarial valuation of the retirement system indicates30 30that the employer and employee contribution rates in30 31effect under section 97B.11 can absorb the enactment30 32of this subsection and the amendments to section30 3397B.41, subsection 12, section 97B.53, subsections 330 34and 7, and section 97B.53, subsection 6, unnumbered30 35paragraph 1, contained in 1994 Iowa Acts, chapter30 361183, after meeting the other established priorities30 37of the system, as defined in section 97B.41,30 38subsection 12.30 39 Sec. 57. Section 97B.72, unnumbered paragraphs 1 30 40 and 2, Code Supplement 1995, are amended to read as 30 41 follows: 30 42 Persons who are members of the Seventy-first 30 43 General Assembly or a succeeding general assembly who 30 44 submit proof to the department of membership in the 30 45 general assembly during any period beginning July 4, 30 46 1953, may make contributions to the system for all or 30 47 a portion of the period of service in the general 30 48 assembly, and receive credit for the applicable period 30 49 for which contributions are made. The contributions 30 50 made by the member shall be equal to the accumulated 31 1 contributions as defined in section 97B.41, subsection 31 2 2, which would have been made if the member of the 31 3 general assembly had been a member of the system 31 4 during the applicable period. The proof of membership 31 5 in the general assembly and payment of accumulated 31 6 contributions shall be transmitted to the department. 31 7 A member making contributions pursuant to this section 31 8 may make the contributions either for the entire 31 9 applicable period of service, or, effective upon the31 10date that the department determines that the31 11amendments to this paragraph and unnumbered paragraph31 122 contained in 1994 Iowa Acts, chapter 1183, shall be31 13implemented,for portions of the period of service, 31 14 and if contributions are made for portions of the 31 15 period of service, the contributions shall be in 31 16 increments of one or moreyears, as long as the31 17increments represent full years and not a portion of a31 18yearcalendar quarters.However, the department shall31 19not implement the amendments to this paragraph or31 20unnumbered paragraph 2, as enacted in 1994 Iowa Acts,31 21chapter 1183, unless and until the department31 22determines that the most recent annual actuarial31 23valuation of the retirement system indicates that the31 24employer and employee contribution rates in effect31 25under section 97B.11 can absorb the amendments to this31 26paragraph and unnumbered paragraph 2 and to section31 2797B.66, unnumbered paragraphs 1 and 2, section31 2897B.72A, subsection 1, unnumbered paragraph 1, section31 2997B.73A, unnumbered paragraph 1, and section 97B.74,31 30unnumbered paragraphs 1 and 2, contained in 1994 Iowa31 31Acts, chapter 1183, after meeting the other31 32established priority of the system, as defined in31 33section 97B.66. Until the amendments are implemented,31 34the department shall continue to implement the31 35provisions of section 97B.72, unnumbered paragraphs 131 36and 2, Code Supplement 1993.31 37 There is appropriated from moneys available to the 31 38 general assembly under section 2.12 an amount 31 39 sufficient to pay the contributions of the employer 31 40 based on the period of service for which the members 31 41 have paid accumulated contributions in an amount equal 31 42 to the contributions which would have been made if the 31 43 members of the general assembly who made employee 31 44 contributions had been members of the system during 31 45 the applicable period of service in the general 31 46 assembly plustwo percentinterestplusand interest 31 47 dividends at the rate provided in section 97B.70 for 31 48 all completed calendar years, and for any completed 31 49 calendar year for which the interest dividend has not 31 50 been declared and for completed months of partially 32 1 completed calendar yearsat two percent interest plus32 2the interest dividend rate calculated for the previous32 3year, compoundedannually, from the end of the32 4calendar year in which contribution was made to the32 5first day of the month of such dateas provided in 32 6 section 97B.70. 32 7 Sec. 58. Section 97B.72, unnumbered paragraph 3, 32 8 Code Supplement 1995, is amended to read as follows: 32 9 However,effective January 1, 1994,the department 32 10 shall ensure that the member, in exercising an option 32 11 provided in this section, does not exceed the amount 32 12 of annual additions to a member's account permitted 32 13 pursuant to section 415 of the federal Internal 32 14 Revenue Code. 32 15 Sec. 59. Section 97B.72A, subsection 1, Code 32 16 Supplement 1995, is amended to read as follows: 32 17 1.An active orA vested or retired member of the 32 18 system who was a member of the general assembly prior 32 19 to July 1, 1988, may make contributions to the system 32 20 for all or a portion of the period of service in the 32 21 general assembly. The contributions made by the 32 22 member shall be equal to the accumulated contributions 32 23 as defined in section 97B.41, subsection 2, which 32 24 would have been made if the member of the general 32 25 assembly had been a member of the system during the 32 26 applicable period of service in the general assembly. 32 27 A member making contributions pursuant to this section 32 28 may make the contributions either for the entire 32 29 applicable period of service, or for portions of the 32 30 period of service, and, effective upon the date that32 31the department determines that the amendments to this32 32paragraph contained in 1994 Iowa Acts, chapter 1183,32 33shall be implemented,if contributions are made for 32 34 portions of the period of service, the contributions 32 35 shall be in increments of one or moreyears, as long32 36as the increments represent full years and not a32 37portion of a yearcalendar quarters. The member of 32 38 the system shall submit proof to the department of 32 39 membership in the general assembly. The department 32 40 shall credit the member with the period of membership 32 41 service for which contributions are made.However,32 42the department shall not implement the amendments to32 43this paragraph, as enacted in 1994 Iowa Acts, chapter32 441183, unless and until the department determines that32 45the most recent annual actuarial valuation of the32 46retirement system indicates that the employer and32 47employee contribution rates in effect under section32 4897B.11 can absorb the amendments to this paragraph and32 49to section 97B.66, unnumbered paragraphs 1 and 2,32 50section 97B.72, unnumbered paragraphs 1 and 2, section33 197B.73A, unnumbered paragraph 1, and section 97B.74,33 2unnumbered paragraphs 1 and 2, contained in 1994 Iowa33 3Acts, chapter 1183, after meeting the other33 4established priority of the system, as defined in33 5section 97B.66. Until the amendments are implemented,33 6the department shall continue to implement the33 7provisions of section 97B.72A, subsection 1,33 8unnumbered paragraph 1, Code Supplement 1993.33 9 There is appropriated from the general fund of the 33 10 state to the department an amount sufficient to pay 33 11 the contributions of the employer based on the period 33 12 of service of members of the general assembly for 33 13 which the member paid accumulated contributions under 33 14 this section. The amount appropriated is equal to the 33 15 employer contributions which would have been made if 33 16 the members of the system who made employee 33 17 contributions had been members of the system during 33 18 the period for which they made employee contributions 33 19 plustwo percentinterestplus the interest dividend33 20rate applicableat the rate provided in section 97B.70 33 21 for each year compoundedannuallyas provided in 33 22 section 97B.70. 33 23 Sec. 60. Section 97B.72A, subsection 2, Code 33 24 Supplement 1995, is amended to read as follows: 33 25 2.Effective January 1, 1994, howeverHowever, the 33 26 department shall ensure that the member, in exercising 33 27 an option provided in this section, does not exceed 33 28 the amount of annual additions to a member's account 33 29 permitted pursuant to section 415 of the federal 33 30 Internal Revenue Code. 33 31 Sec. 61. Section 97B.73, unnumbered paragraph 1, 33 32 Code 1995, is amended to read as follows: 33 33 A vested or retired member who was in public 33 34 employment comparable to employment covered under this 33 35 chapter in another state or in the federal government, 33 36 or who was a member of another public retirement 33 37 system in this state, including but not limited to the 33 38 teachers insurance annuity association-college 33 39 retirement equities fund, but who was not retired 33 40 under that system, upon submitting verification of 33 41 membership and service in the other public system to 33 42 the department, including proof that the member has no 33 43 further claim upon a retirement benefit from that 33 44 other public system, may make employer and employee 33 45 contributions to the system either for the entire 33 46 period of service in the other public system, or for 33 47 partial service in the other public system in 33 48 increments of one or moreyears, as long as the33 49increments represent full years and not a portion of a33 50yearcalendar quarters.The member may also make one34 1lump sum contribution to the system which represents34 2the entire period of service in the other public34 3system, even if the period of time exceeds one year or34 4includes a portion of a year.If the member wishes to 34 5 transfer only a portion of the service value of 34 6 another public system to this system and the other 34 7 public system allows a partial withdrawal of a 34 8 member's system credits, the member shall receive 34 9 credit for membership service in this system 34 10 equivalent to thenumber of yearsperiod of service 34 11 transferred from the other public system. The 34 12 contribution payable shall be based upon the member's 34 13 covered wages for the most recent full calendar year 34 14 at the applicable rates in effect for that calendar 34 15 year under sections 97B.11 and 97B.49 and multiplied 34 16 by the member's years of service in other public 34 17 employment. If the member's most recent covered wages 34 18 were earned prior to the most recent calendar year, 34 19 the member's covered wages shall be adjusted by the 34 20 department by an inflation factor to reflect changes 34 21 in the economy since the covered wages were earned. 34 22 Sec. 62. Section 97B.73, unnumbered paragraph 6, 34 23 Code 1995, is amended to read as follows: 34 24 However,effective January 1, 1994,the department 34 25 shall ensure that the member, in exercising an option 34 26 provided in this section, does not exceed the amount 34 27 of annual additions to a member's account permitted 34 28 pursuant to section 415 of the federal Internal 34 29 Revenue Code. 34 30 Sec. 63. Section 97B.73A, unnumbered paragraph 1, 34 31 Code Supplement 1995, is amended to read as follows: 34 32 A part-time county attorney may elect in writing to 34 33 the department to make employee contributions to the 34 34 system for the county attorney's previous service as a 34 35 county attorney and receive credit for membership 34 36 service in the system for the applicable period of 34 37 service as a part-time county attorney for which 34 38 employee contributions are made. The contributions 34 39 paid by the member shall be equal to the accumulated 34 40 contributions, as defined in section 97B.41, 34 41 subsection 2, for the applicable period of membership 34 42 service. A member making contributions pursuant to 34 43 this section may make the contributions either for the 34 44 entire applicable period of service, or, effective34 45upon the date that the department determines that the34 46amendments to this paragraph contained in 1994 Iowa34 47Acts, chapter 1183, shall be implemented,for portions 34 48 of the period of service, and if contributions are 34 49 made for portions of the period of service, the 34 50 contributions shall be in increments of one or more 35 1years, as long as the increments represent full years35 2and not a portion of a yearcalendar quarters. A 35 3 member who elects to make contributions under this 35 4 section shall notify the applicable county board of 35 5 supervisors of the member's election, and the county 35 6 board of supervisors shall pay to the department the 35 7 employer contributions that would have been 35 8 contributed by the employer under section 97B.11 plus 35 9 interest on the contributions that would have accrued 35 10 if the county attorney had been a member of the system 35 11 for the applicable period of service.However, the35 12department shall not implement the amendments to this35 13paragraph, as enacted in 1994 Iowa Acts, chapter 1183,35 14unless and until the department determines that the35 15most recent annual actuarial valuation of the35 16retirement system indicates that the employer and35 17employee contribution rates in effect under section35 1897B.11 can absorb the amendments to this paragraph and35 19to section 97B.66, unnumbered paragraphs 1 and 2,35 20section 97B.72, unnumbered paragraphs 1 and 2, section35 2197B.72A, subsection 1, unnumbered paragraph 1, and35 22section 97B.74, unnumbered paragraphs 1 and 2,35 23contained in 1994 Iowa Acts, chapter 1183, after35 24meeting the other established priority of the system,35 25as defined in section 97B.66. Until the amendments35 26are implemented, the department shall continue to35 27implement the provisions of section 97B.73A,35 28unnumbered paragraph 1, Code Supplement 1993.35 29 Sec. 64. Section 97B.73A, unnumbered paragraph 3, 35 30 Code Supplement 1995, is amended to read as follows: 35 31 However,effective January 1, 1994,the department 35 32 shall ensure that the member, in exercising an option 35 33 provided in this section, does not exceed the amount 35 34 of annual additions to a member's account permitted 35 35 pursuant to section 415 of the federal Internal 35 36 Revenue Code. 35 37 Sec. 65. Section 97B.74, unnumbered paragraphs 1 35 38 and 2, Code Supplement 1995, are amended to read as 35 39 follows: 35 40An active,A vested,or retired member who was a 35 41 member of the system at any time on or after July 4, 35 42 1953, and who received a refund of the member's 35 43 contributions for that period of membership service, 35 44 may elect in writing to the department to make 35 45 contributions to the system for all or a portion of 35 46 the period of membership service for which a refund of 35 47 contributions was made, and receive credit for the 35 48 period of membership service for which contributions 35 49 are made. The contributions repaid by the member for 35 50 such service shall be equal to the accumulated 36 1 contributions, as defined in section 97B.41, 36 2 subsection 2, received by the member for the 36 3 applicable period of membership service plus interest 36 4 on the accumulated contributions for the applicable 36 5 period from the date of receipt by the member to the 36 6 date of repaymentequal to two percent plusat the 36 7 interestdividendrate provided in section 97B.70 36 8 applicable for each year compoundedannuallyas 36 9 provided in section 97B.70. 36 10An active member must have at least one quarter's36 11reportable wages on file and have membership service,36 12including that period of membership service for which36 13a refund of contributions was made, sufficient to give36 14the member vested status.A member making 36 15 contributions pursuant to this section may make the 36 16 contributions either for the entire applicable period 36 17 of service, or, effective upon the date that the36 18department determines that the amendments to this36 19paragraph and unnumbered paragraph 1 contained in 199436 20Iowa Acts, chapter 1183, shall be implemented,for 36 21 portions of the period of service, and if 36 22 contributions are made for portions of the period of 36 23 service, the contributions shall be in increments of 36 24 one or moreyears, as long as the increments represent36 25full years and not a portion of a yearcalendar 36 26 quarters.However, the department shall not implement36 27the amendments to this paragraph or unnumbered36 28paragraph 1, as enacted in 1994 Iowa Acts, chapter36 291183, unless and until the department determines that36 30the most recent annual actuarial valuation of the36 31retirement system indicates that the employer and36 32employee contribution rates in effect under section36 3397B.11 can absorb the amendments to this paragraph and36 34to unnumbered paragraph 1 and to section 97B.66,36 35unnumbered paragraphs 1 and 2, section 97B.72,36 36unnumbered paragraphs 1 and 2, section 97B.72A,36 37subsection 1, unnumbered paragraph 1, and section36 3897B.73A, unnumbered paragraph 1, contained in 199436 39Iowa Acts, chapter 1183, after meeting the other36 40established priority of the system, as defined in36 41section 97B.66. Until the amendments are implemented,36 42the department shall continue to implement the36 43provisions of section 97B.74, unnumbered paragraphs 136 44and 2, Code Supplement 1993.36 45 Sec. 66. Section 97B.74, unnumbered paragraph 4, 36 46 Code Supplement 1995, is amended by striking the 36 47 unnumbered paragraph. 36 48 Sec. 67. Section 97B.80, unnumbered paragraph 1, 36 49 Code 1995, is amended to read as follows: 36 50 Effective July 1, 1992, a vested or retired member, 37 1 who at any time served on active duty in the armed 37 2 forces of the United States, upon submitting 37 3 verification of the dates of the active duty service, 37 4 may make employer and employee contributions to the 37 5 system based upon the member's covered wages for the 37 6 most recent full calendar year in which the member had 37 7 reportable wages at the applicable rates in effect for 37 8 that year under sections 97B.11 and 97B.49, for all or 37 9 a portion of the period of time of the active duty 37 10 service, in increments ofno greater than one year and37 11not less thanone or more calendarquarterquarters, 37 12 and receive credit for membership service and prior 37 13 service for the period of time for which the 37 14 contributions are made.However, the member may not37 15make contributions in an increment of less than one37 16year more than once. The member may also make one37 17lump sum contribution to the system which represents37 18the period of time of the active duty service, even if37 19the period of time exceeds one year.If the member's 37 20 most recent covered wages were earned prior to the 37 21 most recent calendar year, the member's covered wages 37 22 shall be adjusted by the department by an inflation 37 23 factor to reflect changes in the economy. The 37 24 department shall adjust benefits for a six-month 37 25 period prior to the date the member pays contributions 37 26 under this section if the member is receiving a 37 27 retirement allowance at the time the contribution 37 28 payment is made. Verification of active duty service 37 29 and payment of contributions shall be made to the 37 30 department. However, a member is not eligible to make 37 31 contributions under this section if the member is 37 32 receiving, is eligible to receive, or may in the 37 33 future be eligible to receive retirement pay from the 37 34 United States government for active duty in the armed 37 35 forces, except for retirement pay granted by the 37 36 United States government under retired pay for 37 37 nonregular service (10 U.S.C. } 1331, et seq.). A 37 38 member receiving retired pay for nonregular service 37 39 who makes contributions under this section shall 37 40 provide information required by the department 37 41 documenting time periods covered under retired pay for 37 42 nonregular service. 37 43 Sec. 68. Section 97B.80, unnumbered paragraph 3, 37 44 Code 1995, is amended to read as follows: 37 45 However,effective January 1, 1994,the department 37 46 shall ensure that the member, in exercising an option 37 47 provided in this section, does not exceed the amount 37 48 of annual additions to a member's account permitted 37 49 pursuant to section 415 of the federal Internal 37 50 Revenue Code. 38 1 Sec. 69. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM 38 2 – DEVELOPMENT OF PROPOSALS FOR ESTABLISHING A DEFINED 38 3 CONTRIBUTION OPTION AND FOR CONVERTING THE SYSTEM INTO 38 4 A DEFINED CONTRIBUTION PLAN – REPORT. The Iowa 38 5 public employees' retirement system division, in 38 6 consultation with the public retirement systems 38 7 committee established in section 97D.4, shall develop 38 8 a proposal concerning various alternatives for 38 9 establishing a defined contribution option for members 38 10 of the Iowa public employees' retirement system in 38 11 addition to the current defined benefit plan and a 38 12 proposal concerning various alternatives for 38 13 converting the Iowa public employees' retirement 38 14 system into a defined contribution plan by terminating 38 15 the current defined benefit plan and establishing a 38 16 defined contribution plan. On or before September 1, 38 17 1997, the Iowa public employees' retirement system 38 18 division shall file a report with the legislative 38 19 service bureau, for distribution to the public 38 20 retirement systems committee, which contains proposals 38 21 for establishing a defined contribution option and for 38 22 converting the Iowa public employees' retirement 38 23 system into a defined contribution plan. The report 38 24 shall also contain actuarial information concerning 38 25 the costs of the proposals. 38 26 Sec. 70. STUDY OF PROPOSALS CONCERNING 38 27 CONTRIBUTION RATES – IOWA PUBLIC EMPLOYEES' 38 28 RETIREMENT SYSTEM – REPORT. The Iowa public 38 29 employees' retirement system division, in consultation 38 30 with the public retirement systems committee 38 31 established in section 97D.4, shall study proposals 38 32 concerning various options for establishing equitable 38 33 contribution rates for both employers and employees 38 34 covered by the Iowa public employees' retirement 38 35 system. In conducting the study, the division shall 38 36 consider a proposal to provide that the employee and 38 37 employer contribution rate be equal. On or before 38 38 September 1, 1997, the Iowa public employees' 38 39 retirement system division shall file a report with 38 40 the legislative service bureau, for distribution to 38 41 the public retirement systems committee, which 38 42 contains the results of the study and any proposal, or 38 43 proposals, for establishing employer and employee 38 44 contribution rates. The report shall also contain 38 45 actuarial information concerning the costs of the 38 46 proposal or proposals. 38 47 Sec. 71. STUDY OF PROPOSALS REGARDING DISABILITY 38 48 RETIREMENT BENEFITS – IOWA PUBLIC EMPLOYEES' 38 49 RETIREMENT SYSTEM – REPORT. The Iowa public 38 50 employees' retirement system division, in consultation 39 1 with the public retirement systems committee 39 2 established in section 97D.4, shall study proposals 39 3 concerning various options for establishing disability 39 4 retirement benefits for employees, or certain 39 5 employees, covered by the Iowa public employees' 39 6 retirement system. In conducting the study, the 39 7 division shall consider a proposal to provide 39 8 disability retirement benefits for sheriffs, deputy 39 9 sheriffs, airport fire fighters, or members of a 39 10 protection occupation in a manner similar to the 39 11 disability retirement benefits provided under chapters 39 12 97A and 411. On or before September 1, 1997, the Iowa 39 13 public employees' retirement system division shall 39 14 file a report with the legislative service bureau, for 39 15 distribution to the public retirement systems 39 16 committee, which contains the results of the study and 39 17 any proposal, or proposals, for establishing 39 18 disability retirement benefits. The report shall also 39 19 contain actuarial information concerning the costs of 39 20 the proposal or proposals. 39 21 Sec. 72. STUDY OF PROPOSALS CONCERNING INCLUSION 39 22 OF MEMBERS IN A PROTECTION OCCUPATION – IOWA PUBLIC 39 23 EMPLOYEES' RETIREMENT SYSTEM – REPORT. The Iowa 39 24 public employees' retirement system division, in 39 25 consultation with the public retirement systems 39 26 committee established in section 97D.4, shall study 39 27 proposals concerning various options for determining 39 28 additional occupations of members who should be 39 29 eligible for inclusion as members in a protection 39 30 occupation as provided in section 97B.49, subsection 39 31 16, paragraph "d". On or before September 1, 1997, 39 32 the Iowa public employees' retirement system division 39 33 shall file a report with the legislative service 39 34 bureau, for distribution to the public retirement 39 35 systems committee, which contains the results of the 39 36 study and any proposal, or proposals, for establishing 39 37 which occupations should qualify for inclusion in a 39 38 protection occupation. The report shall also contain 39 39 actuarial information concerning the costs of the 39 40 proposal or proposals. 39 41 Sec. 73. STUDY CONCERNING ORGANIZATIONAL STRUCTURE 39 42 OF THE IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. The 39 43 public retirement systems committee established in 39 44 section 97D.4 shall study the feasibility of changing 39 45 the organizational structure and governance of the 39 46 Iowa public employees' retirement system. The 39 47 committee shall consider the recommendations of the 39 48 Buck Consultants Inc. report submitted to the Iowa 39 49 public employees' retirement system in 1995, the Iowa 39 50 public employees' retirement system division, and the 40 1 department of personnel. The public retirement 40 2 systems committee shall submit a report to the general 40 3 assembly on or before January 31, 1998, containing its 40 4 findings and recommendations. 40 5 Sec. 74. COMPREHENSIVE EXAMINATION OF PLAN DESIGN 40 6 FOR THE IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – 40 7 REPORT. The Iowa public employees' retirement system 40 8 division, in consultation with the public retirement 40 9 systems committee established in section 97D.4, shall 40 10 conduct a comprehensive examination of the plan design 40 11 of the Iowa public employees' retirement system, 40 12 pursuant to the principles established in chapter 97D, 40 13 and make recommendations for plan improvement. 40 14 In conducting the examination, the division shall 40 15 consider and develop recommendations concerning 40 16 establishment of the following: 40 17 1. Objective actuarial standards to determine the 40 18 funded status of the system, including recommended 40 19 minimum standards to determine whether the system is 40 20 fully funded, and to develop safeguards to ensure that 40 21 the system remains fully funded based on those 40 22 standards. 40 23 2. Equitable contribution rates for both employers 40 24 and employees, to include consideration of proposals 40 25 to provide for equal employer and employee 40 26 contribution rates and proposals to increase or 40 27 decrease contribution rates based on the funded status 40 28 of the system. 40 29 3. Establishing a schedule for implementing the 40 30 recommendations. 40 31 On or before September 1, 1997, the Iowa public 40 32 employees' retirement system division shall file a 40 33 report with the legislative service bureau, for 40 34 distribution to the public retirement systems 40 35 committee, which contains the results of the 40 36 comprehensive examination and any proposal, or 40 37 proposals, for improving plan design of the Iowa 40 38 public employees' retirement system. The report shall 40 39 also contain actuarial information concerning the 40 40 costs of the proposal or proposals. 40 41 DIVISION II 40 42 TEACHERS' PENSION AND ANNUITY RETIREMENT SYSTEMS 40 43 Sec. 75. Section 12B.10, subsection 6, Code 1995, 40 44 is amended by adding the following new paragraph e and 40 45 relettering the subsequent paragraphs: 40 46 NEW PARAGRAPH. e. A pension and annuity 40 47 retirement system governed by chapter 294. 40 48 Sec. 76. Section 12B.10A, subsection 6, Code 1995, 40 49 is amended by adding the following new paragraph e and 40 50 relettering the subsequent paragraphs: 41 1 NEW PARAGRAPH. e. A pension and annuity 41 2 retirement system governed by chapter 294. 41 3 Sec. 77. Section 12B.10B, subsection 3, Code 1995, 41 4 is amended by adding the following new paragraph e and 41 5 relettering the subsequent paragraphs: 41 6 NEW PARAGRAPH. e. A pension and annuity 41 7 retirement system governed by chapter 294. 41 8 Sec. 78. Section 12B.10C, Code 1995, is amended by 41 9 adding the following new subsection 4 and renumbering 41 10 the subsequent subsections: 41 11 NEW SUBSECTION. 4. A pension and annuity 41 12 retirement system governed by chapter 294. 41 13 Sec. 79. NEW SECTION. 294.10B RIGHTS NOT 41 14 TRANSFERABLE – NOT SUBJECT TO LEGAL PROCESS. 41 15 The right of any person to any future payment under 41 16 a pension and annuity retirement system established in 41 17 this chapter shall not be transferable or assignable, 41 18 at law or in equity, and shall not be subject to 41 19 execution, levy, attachment, garnishment, or other 41 20 legal process, or to the operation of any bankruptcy 41 21 or insolvency law, except for the purposes of 41 22 enforcing child, spousal, or medical support 41 23 obligations, or marital property orders. For the 41 24 purposes of enforcing child, spousal, or medical 41 25 support obligations, the garnishment or attachment of 41 26 or the execution against benefits due a person under 41 27 such a retirement system shall not exceed the amount 41 28 specified in 15 U.S.C. } 1673(b). 41 29 DIVISION III 41 30 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 41 31 ACCIDENT, AND DISABILITY SYSTEM 41 32 Sec. 80. Section 97A.5, subsection 9, Code 1995, 41 33 is amended to read as follows: 41 34 9. DUTIES OFCOMMISSIONER OF INSURANCEACTUARY. 41 35 Thestate commissioner of insuranceactuary hired by 41 36 the board of trustees shall be the technical advisor 41 37 of the board of trustees on matters regarding the 41 38 operation of the funds created by the provisions of 41 39 this chapter and shall perform such other duties as 41 40 are required in connection therewith. 41 41 Sec. 81. Section 97A.5, subsections 10 through 12, 41 42 Code 1995, are amended to read as follows: 41 43 10. TABLES – RATES.Immediately after the41 44establishment of this system, the state commissioner41 45of insuranceThe actuary hired by the board of 41 46 trustees shall make such investigation of anticipated 41 47 interest earnings and of the mortality, service, and 41 48 compensation experience of the members of the system 41 49 as the actuaryshall recommend and the board of41 50trustees shall authorizerecommends, and on the basis 42 1 ofsuchthe investigation, theactuary shall recommend42 2for adoption by theboard of trusteessuchshall adopt 42 3 the tables andsuchthe rates as are required in 42 4 subsection 11 of this section. The board of trustees 42 5 shall adopt the rate of interest and tables, and 42 6 certify rates of contributions to be used by the 42 7 system. 42 8 11. ACTUARIAL INVESTIGATION.In the year 1952,42 9and atAt least once in each two-year period 42 10thereafter,the state commissioner of insurancethe 42 11 actuary hired by the board of trustees shall make an 42 12 actuarial investigation in the mortality, service, and 42 13 compensation experience of the members and 42 14 beneficiaries of the system, and the interest and 42 15 other earnings on the moneys and other assets of the 42 16 system, and shall make a valuation of the assets and 42 17 liabilities of the funds of the system, and taking 42 18 into account the results ofsuchthe investigation and 42 19 valuation, the board of trustees shall: 42 20 a. Adopt for the system such interest rate, 42 21 mortality and other tables as shall be deemed 42 22 necessary; 42 23 b. Certify the rates of contribution payable by 42 24 the state of Iowa in accordance with section 97A.8. 42 25 12. VALUATION. On the basis ofsuchthe rate of 42 26 interest andsuchtablesasadopted by the board of 42 27 trusteesshall adopt,the state commissioner of42 28insurancethe actuary hired by the board of trustees 42 29 shall make an annual valuation of the assets and 42 30 liabilities of the funds of the system created by this 42 31 chapter. 42 32 Sec. 82. Section 97A.5, Code 1995, is amended by 42 33 adding the following new subsections: 42 34 NEW SUBSECTION. 14. INVESTMENT CONTRACTS. The 42 35 board of trustees may execute contracts and agreements 42 36 with investment advisors, consultants, and investment 42 37 management and benefit consultant firms in the 42 38 administration of the funds established in section 42 39 97A.8. 42 40 NEW SUBSECTION. 15. LIABILITY. The department, 42 41 the board of trustees, and the treasurer of state are 42 42 not personally liable for claims based upon an act or 42 43 omission of the person performed in the discharge of 42 44 the person's duties under this chapter, even if those 42 45 actions or omissions violate the standards established 42 46 in section 97A.7, except for acts or omissions which 42 47 involve malicious or wanton misconduct. 42 48 Sec. 83. Section 97A.6, subsection 1, paragraph a, 42 49 Code 1995, is amended to read as follows: 42 50 a. Any member in service may retire upon the 43 1 member's written application to the board of trustees, 43 2 setting forth at what time, not less than thirty nor 43 3 more than ninety days subsequent to the execution and 43 4 filing therefor, the member desires to be retired, 43 5 provided, that the said member at the time so 43 6 specified for retirement shall have attained the age 43 7 of fifty-five and shall have completed twenty-two 43 8 years or more of creditable service, and 43 9 notwithstanding that, during such period of 43 10 notification, the member may have separated from the 43 11 service. However, a member may retire at fifty years 43 12 of age and receive a reduced retirement allowance 43 13 pursuant to subsection 2A. 43 14 Sec. 84. Section 97A.6, subsection 2, paragraph d, 43 15 subparagraph (3), Code 1995, is amended to read as 43 16 follows: 43 17 (3) For a member who terminates service, other 43 18 than by death or disability, on or after October 16, 43 19 1992, but before July 1, 1996, and who does not 43 20 withdraw the member's contributions pursuant to 43 21 section 97A.16, upon the member's retirement there 43 22 shall be added six-tenths percent of the member's 43 23 average final compensation for each year of service 43 24 over twenty-two years. However, this subparagraph 43 25 does not apply to more than eight additional years of 43 26 service. 43 27 Sec. 85. Section 97A.6, subsection 2, paragraph d, 43 28 Code 1995, is amended by adding the following new 43 29 subparagraph: 43 30 NEW SUBPARAGRAPH. (4) For a member who terminates 43 31 service, other than by death or disability, on or 43 32 after July 1, 1996, and who does not withdraw the 43 33 member's contributions pursuant to section 97A.16, 43 34 upon the member's retirement there shall be added one 43 35 and one-half percent of the member's average final 43 36 compensation for each year of service over twenty-two 43 37 years. However, this subparagraph does not apply to 43 38 more than eight additional years of service. 43 39 Sec. 86. Section 97A.6, subsection 10, Code 1995, 43 40 is amended to read as follows: 43 41 10. OPTIONAL ALLOWANCE. With the provision that 43 42 no optional selection shall be effective in case a 43 43 beneficiary dies within thirty days after retirement, 43 44 in which event such a beneficiary shall be considered 43 45 as an active member at the time of death, until the 43 46 first payment on account of any benefit becomes 43 47 normally due, any beneficiary may elect to receive the 43 48 beneficiary's benefit in a retirement allowance 43 49 payable throughout life, or may elect to receive the 43 50 actuarial equivalent at that time of the beneficiary's 44 1 retirement allowance in a lesser retirement allowance 44 2 payable throughout life with the provision that an 44 3 amount in money not exceeding the amount of the 44 4 beneficiary's accumulated contributions shall be 44 5 immediately paid in cash to such member or some other 44 6 benefit or benefits shall be paid either to the member 44 7 or to such person or persons as the member shall 44 8 nominate, provided such cash payment or other benefit 44 9 or benefits, together with the lesser retirement 44 10 allowance, shall be certified by thestate44 11commissioner of insuranceactuary to be of equivalent 44 12 actuarial value to the member's retirement allowance 44 13 and shall be approved by the board of trustees; 44 14 provided, that a cash payment to such member or 44 15 beneficiary at the time of retirement of an amount not 44 16 exceeding fifty percent of the member's or 44 17 beneficiary's accumulated contributions shall be made 44 18 by the board of trustees upon said member's or 44 19 beneficiary's election. 44 20 Sec. 87. Section 97A.6, subsection 12, unnumbered 44 21 paragraph 1, Code 1995, is amended to read as follows: 44 22 Pension to surviving spouse and children of 44 23 deceased pensioned members. In the event of the death 44 24 of any member receiving a retirement allowance under 44 25 the provisions of subsections 2, 2A, 4, or 6 of this 44 26 section there shall be paid a pension: 44 27 Sec. 88. Section 97A.6, subsection 12, paragraph 44 28 a, Code 1995, is amended to read as follows: 44 29 a. To the member's surviving spouse, equal to one- 44 30 half the amount received by the deceased beneficiary, 44 31 but in no instance less than an amount equal totwenty44 32 twenty-five percent of the monthly earnable 44 33 compensation paid to an active member having the rank 44 34 of senior patrol officer of the Iowa highway safety 44 35 patrol, and in addition a monthly pension equal to the 44 36 monthly pension payable under subsection 9, paragraph 44 37 "c," of this section for each child under eighteen 44 38 years of age or twenty-two years of age if applicable; 44 39 or 44 40 Sec. 89. Section 97A.6, subsection 14, paragraph 44 41 a, subparagraphs (1), (2), and (3), Code 1995, are 44 42 amended to read as follows: 44 43 (1)Twenty-fiveThirty percent for members 44 44 receiving a service retirement allowance and for 44 45 beneficiaries receiving a pension under subsection 9 44 46 of this section.However, effective July 1, 1990, for44 47members who retired before that date, thirty percent44 48shall be the applicable percentage for members and44 49beneficiaries under this subparagraph.44 50 (2)Twenty-fiveThirty percent for members with 45 1 five or more years of membership service who are 45 2 receiving an ordinary disability retirement allowance. 45 3However, effective July 1, 1990, for members who45 4retired before that date, thirty percent shall be the45 5applicable percentage for members under this45 6subparagraph.45 7 (3)Twelve and one-halfFifteen percent for 45 8 members with less than five years of membership 45 9 service who are receiving an ordinary disability 45 10 retirement allowance, and for beneficiaries receiving 45 11 a pension under subsection 8 of this section. 45 12However, effective July 1, 1990, for members who45 13retired before that date, fifteen percent shall be the45 14applicable percentage for members and beneficiaries45 15under this subparagraph.45 16 Sec. 90. Section 97A.6, subsection 14, paragraph 45 17 d, Code 1995, is amended to read as follows: 45 18 d. A retired member eligible for benefits under 45 19 the provisions of subsection 1 is not eligible for the 45 20 annual readjustment of pensions provided in this 45 21 subsection unless the member served at least twenty- 45 22 two yearsand attained the age of fifty-five years45 23 prior to the member's termination of employment. 45 24 Sec. 91. Section 97A.6, Code 1995, is amended by 45 25 adding the following new subsection: 45 26 NEW SUBSECTION. 2A. EARLY RETIREMENT BENEFITS. 45 27 a. Notwithstanding the calculation of the service 45 28 retirement allowance under subsection 2, beginning 45 29 July 1, 1996, a member who has completed twenty-two 45 30 years or more of creditable service and is at least 45 31 fifty years of age, but less than fifty-five years of 45 32 age, who has otherwise completed the requirements for 45 33 retirement under subsection 1, may retire and receive 45 34 a reduced service retirement allowance pursuant to 45 35 this subsection. The service retirement allowance for 45 36 a member less than fifty-five years of age shall be 45 37 calculated in the manner prescribed in subsection 2, 45 38 except that the percentage multiplier of the member's 45 39 average final compensation used in the determination 45 40 of the service retirement allowance shall be reduced 45 41 by the board of trustees pursuant to paragraph "b". 45 42 b. On July 1, 1996, and on each July 1 thereafter, 45 43 the board of trustees shall determine for the 45 44 respective fiscal year the percent by which the 45 45 percentage multiplier under subsection 2 shall be 45 46 reduced for each month that a member's retirement date 45 47 precedes the member's fifty-fifth birthday. The board 45 48 of trustees shall make this determination based upon 45 49 the most recent actuarial valuation of the system, the 45 50 calculation of the acturial cost for each month of 46 1 retirement of a member prior to age fifty-five, and 46 2 the premise that the provision of a service retirement 46 3 allowance to a member who is less than fifty-five 46 4 years of age will not result in any increase in cost 46 5 to the system. 46 6 Sec. 92. Section 97A.7, subsection 2, Code 1995, 46 7 is amended to read as follows: 46 8 2. The several funds created by this chapter may 46 9 be invested in:46 10a. Bonds or other evidences of indebtedness46 11issued, assumed, or guaranteed by the United States of46 12America, or by any agency or instrumentality thereof.46 13b. In savings accounts or time deposits in Iowa46 14banks approved as depositories by the executive46 15council.46 16c. Inany investments authorized for the Iowa 46 17 public employees' retirement system in section 97B.7, 46 18 subsection 2, paragraph "b". 46 19 Sec. 93. Section 97A.8, subsection 1, paragraph b, 46 20 Code 1995, is amended to read as follows: 46 21 b. On the basis of the rate of interest and of the 46 22 mortality, interest, and other tables adopted by the 46 23 board of trustees, thestate commissioner of insurance46 24 board of trustees, upon the advice of the actuary 46 25 hired by the board for that purpose, shall make each 46 26 valuation required by this chapter and shall 46 27 immediately after making such valuation, determine the 46 28 "normal contribution rate". The normal contribution 46 29 rate shall be the rate percent of the earnable 46 30 compensation of all members obtained by deducting from 46 31 the total liabilities of the fund the sum of the 46 32 amount of the funds in hand to the credit of the fund 46 33 and dividing the remainder by one percent of the 46 34 present value of the prospective future compensation 46 35 of all members as computed on the basis of the rate of 46 36 interest and of mortality and service tables adopted 46 37 by the board of trustees, all reduced by the employee 46 38 contribution made pursuant to this subsection. 46 39 However, the normal rate of contribution shall not be 46 40 less than seventeen percent. The normal rate of 46 41 contribution shall be determined by thestate46 42commissioner of insuranceboard of trustees after each 46 43 valuation. 46 44 Sec. 94. Section 97A.8, subsection 1, paragraph c, 46 45 unnumbered paragraph 3, Code 1995, is amended by 46 46 striking the unnumbered paragraph. 46 47 Sec. 95. Section 97A.8, subsection 1, paragraph f, 46 48 subparagraph (8), Code 1995, is amended to read as 46 49 follows: 46 50 (8) Notwithstanding any other provision of this 47 1 chapter, beginning July 1, 1996, and each fiscal year 47 2 thereafter,the member's contribution rate shall be47 3equivalent to the member's contribution rate provided47 4under section 411.8, subsection 1, paragraph "f", for47 5the statewide fire and police retirement system for47 6the applicable fiscal yearan amount equal to the 47 7 member's contribution rate times each member's 47 8 compensation shall be paid to the pension accumulation 47 9 fund from the earnable compensation of the member. 47 10 For the purposes of this subparagraph, the member's 47 11 contribution rate shall be nine and thirty-five 47 12 hundredths percent. However, the system shall 47 13 increase the member's contribution rate as necessary 47 14 to cover any increase in cost to the system resulting 47 15 from statutory changes which are enacted by any 47 16 session of the general assembly meeting after January 47 17 1, 1995, if the increase cannot be absorbed within the 47 18 contribution rates otherwise established pursuant to 47 19 this paragraph, but subject to a maximum employee 47 20 contribution rate of eleven and three-tenths percent. 47 21 After the employee contribution reaches eleven and 47 22 three-tenths percent, sixty percent of the additional 47 23 cost of such statutory changes shall be paid by the 47 24 employer under paragraph "c" and forty percent of the 47 25 additional cost shall be paid by employees under this 47 26 paragraph. 47 27 Sec. 96. Section 97A.8, subsection 3, Code 1995, 47 28 is amended to read as follows: 47 29 3. EXPENSE FUND. The expense fund shall be the 47 30 fund to which shall be credited all money provided by 47 31 the state of Iowa to pay the administration expenses 47 32 of the system and from which shall be paid all the 47 33 expenses necessary in connection with the 47 34 administration and operation of the system. 47 35 Biennially the board of trustees shall estimate the 47 36 amount of money necessary to be paid into the expense 47 37 fund during the ensuing biennium to provide for the 47 38 expense of operation of the system. Investment 47 39 management expenses shall be charged to the investment 47 40 income of the system and there is appropriated from 47 41 the system an amount required for the investment 47 42 management expenses. The board of trustees shall 47 43 report the investment management expenses for the 47 44 fiscal year as a percent of the market value of the 47 45 system. 47 46 For purposes of this subsection, investment 47 47 management expenses are limited to the following: 47 48 a. Fees for investment advisors, consultants, and 47 49 investment management and benefit consultant firms 47 50 hired by the board of trustees in administering this 48 1 chapter. 48 2 b. Fees and costs for safekeeping fund assets. 48 3 c. Costs for performance and compliance 48 4 monitoring, and accounting for fund investments. 48 5 d. Any other costs necessary to prudently invest 48 6 or protect the assets of the fund. 48 7 Sec. 97. Section 97A.12, Code 1995, is amended to 48 8 read as follows: 48 9 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS 48 10 OR ASSIGNMENT. 48 11 The right of any person to a pension, annuity, or 48 12 retirement allowance, to the return of contributions, 48 13 the pension, annuity, or retirement allowance itself, 48 14 any optional benefit or death benefit, any other right 48 15 accrued or accruing to any person under this chapter, 48 16 and the moneys in the various funds created under this 48 17 chapter, are not subject to execution, garnishment, 48 18 attachment, or any other process whatsoever, and are 48 19 unassignable except for the purposes of enforcing 48 20 child, spousal, or medical support obligations or 48 21 marital property orders, or asin this chapter48 22 otherwise specifically provided in this chapter. For 48 23 the purposes of enforcing child, spousal, or medical 48 24 support obligations, the garnishment or attachment of 48 25 or the execution against compensation due a person 48 26 under this chapter shall not exceed the amount 48 27 specified in 15 U.S.C. } 1673(b). 48 28 Sec. 98. NEW SECTION. 97A.17 OPTIONAL TRANSFERS 48 29 WITH CHAPTER 411. 48 30 1. For purposes of this section unless the context 48 31 otherwise requires: 48 32 a. "Average accrued benefit" means the average of 48 33 the amounts representing the present value of the 48 34 accrued benefit earned by the member determined by the 48 35 former system and the present value of the accrued 48 36 benefit earned by the member determined by the current 48 37 system. 48 38 b. "Current system" means the eligible retirement 48 39 system in which a person has commenced employment 48 40 covered by the system after having terminated 48 41 employment covered by the former system. 48 42 c. "Eligible retirement system" means the system 48 43 created under this chapter and the statewide fire and 48 44 police retirement system established in chapter 411. 48 45 d. "Former system" means the eligible retirement 48 46 system in which a person has terminated employment 48 47 covered by the system prior to commencing employment 48 48 covered by the current system. 48 49 2. Commencing July 1, 1996, a vested member of an 48 50 eligible retirement system who terminates employment 49 1 covered by one eligible retirement system and, within 49 2 sixty days, commences employment covered by the other 49 3 eligible retirement system may elect to transfer the 49 4 average accrued benefit earned from the former system 49 5 to the current system. The member shall file an 49 6 application with the current system for transfer of 49 7 the average accrued benefit within ninety days of the 49 8 commencement of employment with the current system. 49 9 3. Notwithstanding subsection 2, a vested member 49 10 whose employment with the current system commenced 49 11 prior to July 1, 1996, may elect to transfer the 49 12 average accrued benefit earned under the former system 49 13 to the current system by filing an application with 49 14 the current system for transfer of the average accrued 49 15 benefit on or before July 1, 1997. 49 16 4. Upon receipt of an application for transfer of 49 17 the average accrued benefit, the current system shall 49 18 calculate the average accrued benefit and the former 49 19 system shall transfer to the current system assets in 49 20 an amount equal to the average accrued benefit. Once 49 21 the transfer of the average accrued benefit is 49 22 completed, the member's service under the former 49 23 system shall be treated as membership service under 49 24 the current system for purposes of this chapter and 49 25 chapter 411. 49 26 DIVISION IV 49 27 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 49 28 Sec. 99. Section 400.8, subsection 1, Code 1995, 49 29 is amended to read as follows: 49 30 1. The commission, when necessary under the rules, 49 31 including minimum and maximum age limits, which shall 49 32 be prescribed and published in advance by the 49 33 commission and posted in the city hall, shall hold 49 34 examinations for the purpose of determining the 49 35 qualifications of applicants for positions under civil 49 36 service, other than promotions, which examinations 49 37 shall be practical in character and shall relate to 49 38 matters which will fairly test the mental and physical 49 39 ability of the applicant to discharge the duties of 49 40 the position to which the applicant seeks appointment. 49 41 The physical examination of applicants for appointment 49 42 to the positions of police officer, police matron, or 49 43 fire fighter shall be held in accordance with medical 49 44 protocols established by the board of trustees of the 49 45 fire and police retirement system established by 49 46 section 411.5. The board of trustees may change the 49 47 medical protocols at any time the board so determines. 49 48 The commission shall conduct a medical examination of 49 49 an applicant for the position of police officer, 49 50 police matron, or fire fighter after a conditional 50 1 offer of employment has been made to the applicant. 50 2 An applicant shall not be discriminated against on the 50 3 basis of height, weight, sex, or race in determining 50 4 physical or mental ability of the applicant. 50 5 Reasonable rules relating to strength, agility, and 50 6 general health of applicants shall be prescribed. The 50 7 costs of the physical examination required under this 50 8 subsection shall be paid from the trust and agency 50 9 fund of the city. 50 10 Sec. 100. Section 411.5, Code 1995, is amended by 50 11 adding the following new subsection: 50 12 NEW SUBSECTION. 13. VOLUNTARY BENEFIT PROGRAMS. 50 13 The board of trustees shall be responsible for the 50 14 administration of the voluntary benefit programs 50 15 established under section 411.40. The board may take 50 16 any necessary action, including the adoption of rules, 50 17 for purposes of administering the programs. 50 18 Sec. 101. Section 411.6, subsection 7, paragraph 50 19 a, unnumbered paragraph 1, Code 1995, is amended to 50 20 read as follows: 50 21 Should any beneficiary for either ordinary or 50 22 accidental disability, except a beneficiary who is 50 23 fifty-five years of age or over and would have 50 24 completed twenty-two years of service if the 50 25 beneficiary had remained in active service, be engaged 50 26 in a gainful occupation paying more than the 50 27 difference between the member's retirement allowance 50 28 and one and one-half times the earnable compensation 50 29 of an active member at the same position on the salary 50 30 scale within the member's rank as the member held at 50 31 retirement, then the amount of the member's retirement 50 32 allowance shall be reduced to an amount which together 50 33 with the amount earned by the member shall equal one 50 34 and one-half times the amount of the current earnable 50 35 compensation of an active member at the same position 50 36 on the salary scale within the member's rank as the 50 37 member held at retirement. Should the member's 50 38 earning capacity be later changed, the amount of the 50 39 member's retirement allowance may be further modified, 50 40 provided, that the new retirement allowance shall not 50 41 exceed the amount of the retirement allowance adjusted 50 42 by annual readjustments of pensions pursuant to 50 43 subsection 12 of this section nor an amount which, 50 44 when added to the amount earned by the beneficiary, 50 45 equals one and one-half times the amount of the 50 46 earnable compensation of an active member at the same 50 47 position on the salary scale within the member's rank 50 48 as the member held at retirement. A beneficiary 50 49 restored to active service at a salary less than the 50 50 average final compensation upon the basis of which the 51 1 member was retired at age fifty-five or greater, shall 51 2 not again become a member of the retirement system and 51 3 shall have the member's retirement allowance suspended 51 4 while in active service. If the rank or position held 51 5 by the retired member is subsequently abolished, 51 6 adjustments to the allowable limit on the amount of 51 7 income which can be earned in a gainful occupation 51 8 shall be computedin the same manner as provided in51 9subsection 12, paragraph "c", of this section for51 10readjustment of pensions when a rank or position has51 11been abolishedby the board of trustees as though such 51 12 rank or position had not been abolished and salary 51 13 increases had been granted to such rank or position on 51 14 the same basis as increases granted to other ranks and 51 15 positions in the department. 51 16 Sec. 102. Section 411.6, subsection 12, paragraphs 51 17 a through c, Code 1995, are amended by striking the 51 18 paragraphs and inserting in lieu thereof the 51 19 following: 51 20 a. On each July 1, the monthly pensions authorized 51 21 in this section payable to retired members and to 51 22 beneficiaries shall be adjusted as provided in this 51 23 subsection. An amount equal to the sum of one and 51 24 one-half percent of the monthly pension of each 51 25 retired member and beneficiary and the applicable 51 26 incremental amount shall be added to the monthly 51 27 pension of each retired member and beneficiary. The 51 28 board of trustees shall report to the general assembly 51 29 every six years, by September 15 of that year, 51 30 beginning with September 15, 2001, on whether the 51 31 provisions of this subsection continue to provide an 51 32 equitable method for the annual readjustment of 51 33 pensions payable under this chapter. 51 34 b. For purposes of this subsection, "applicable 51 35 incremental amount" means the following amount for 51 36 members receiving a pension under subsection 2, 4, or 51 37 6 and for beneficiaries receiving a pension under 51 38 subsection 11: 51 39 (1) Fifteen dollars where the member's retirement 51 40 date was less than five years prior to the effective 51 41 date of the increase. 51 42 (2) Twenty dollars where the member's retirement 51 43 date was at least five years, but less than ten years, 51 44 prior to the effective date of the increase. 51 45 (3) Twenty-five dollars where the member's 51 46 retirement date was at least ten years, but less than 51 47 fifteen years, prior to the effective date of the 51 48 increase. 51 49 (4) Thirty dollars where the member's retirement 51 50 date was at least fifteen years, but less than twenty 52 1 years, prior to the effective date of the increase. 52 2 (5) Thirty-five dollars where the member's 52 3 retirement date was at least twenty years prior to the 52 4 effective date of the increase. 52 5 c. For beneficiaries receiving a pension under 52 6 subsection 8 or 9, the applicable incremental amount 52 7 shall be determined as set forth in paragraph "b", 52 8 except that the date of the member's death shall be 52 9 substituted for the member's retirement date. 52 10 Sec. 103. Section 411.6, subsection 12, Code 1995, 52 11 is amended by adding the following new paragraph: 52 12 NEW PARAGRAPH. e. A retired member eligible for 52 13 benefits under this section and otherwise eligible for 52 14 the readjustment of benefits provided in this 52 15 subsection is not eligible for the readjustment unless 52 16 the member was retired on or before the effective date 52 17 of the readjustment. 52 18 Sec. 104. Section 411.13, Code 1995, is amended to 52 19 read as follows: 52 20 411.13 EXEMPTION FROM EXECUTION AND OTHER PROCESS, 52 21 OR ASSIGNMENT – EXCEPTIONS. 52 22 The right of any person to a pension, annuity, or 52 23 retirement allowance, to the return of contributions, 52 24 the pension, annuity, or retirement allowance itself, 52 25 any optional benefit or death benefit, any other right 52 26 accrued or accruing to any person under this chapter, 52 27 and the moneys in the fire and police retirement fund 52 28 created under this chapter, are not subject to 52 29 execution, garnishment, attachment, or any other 52 30 process whatsoever, and are unassignable except for 52 31 the purposes of enforcing child, spousal, or medical 52 32 support obligations or marital property orders, or as 52 33in this chapterotherwise specifically provided in 52 34 this chapter. For the purposes of enforcing child, 52 35 spousal, or medical support obligations, the 52 36 garnishment or attachment of or the execution against 52 37 compensation due a person under this chapter shall not 52 38 exceed the amount specified in 15 U.S.C. } 1673(b). 52 39 Sec. 105. NEW SECTION. 411.31 OPTIONAL TRANSFERS 52 40 WITH CHAPTER 97A. 52 41 1. For purposes of this section, unless the 52 42 context otherwise requires: 52 43 a. "Average accrued benefit" means the average of 52 44 the amounts representing the present value of the 52 45 accrued benefit earned by the member determined by the 52 46 former system and the present value of the accrued 52 47 benefit earned by the member determined by the current 52 48 system. 52 49 b. "Current system" means the eligible retirement 52 50 system in which a person has commenced employment 53 1 covered by the system after having terminated 53 2 employment covered by the former system. 53 3 c. "Eligible retirement system" means the system 53 4 created under this chapter and the Iowa department of 53 5 public safety peace officers' retirement, accident, 53 6 and disability system established in chapter 97A. 53 7 d. "Former system" means the eligible retirement 53 8 system in which a person has terminated employment 53 9 covered by the system prior to commencing employment 53 10 covered by the current system. 53 11 2. Commencing July 1, 1996, a vested member of an 53 12 eligible retirement system who terminates employment 53 13 covered by one eligible retirement system and, within 53 14 sixty days, commences employment covered by the other 53 15 eligible retirement system may elect to transfer the 53 16 average accrued benefit earned from the former system 53 17 to the current system. The member shall file an 53 18 application with the current system for transfer of 53 19 the average accrued benefit within ninety days of the 53 20 commencement of employment with the current system. 53 21 3. Notwithstanding subsection 2, a vested member 53 22 whose employment with the current system commenced 53 23 prior to July 1, 1996, may elect to transfer the 53 24 average accrued benefit earned under the former system 53 25 to the current system by filing an application with 53 26 the current system for transfer of the average accrued 53 27 benefit on or before July 1, 1997. 53 28 4. Upon receipt of an application for transfer of 53 29 the average accrued benefit, the current system shall 53 30 calculate the average accrued benefit and the former 53 31 system shall transfer to the current system assets in 53 32 an amount equal to the average accrued benefit. Once 53 33 the transfer of the average accrued benefit is 53 34 completed, the member's service under the former 53 35 system shall be treated as membership service under 53 36 the current system for purposes of this chapter and 53 37 chapter 97A. 53 38 Sec. 106. Section 411.37, subsection 2, Code 1995, 53 39 is amended to read as follows: 53 40 2. The board shall include in the transition plan 53 41 or other transition documents, provisions to 53 42 facilitate continuity under sections 411.20, 411.21, 53 43 and 411.30and a recommendation for an equitable53 44process for determining earnable compensation changes53 45when calculating adjustments to pensions under section53 46411.6, subsection 12, to be submitted to the general53 47assembly meeting in 1991. 53 48 Sec. 107. Section 411.38, subsection 1, paragraph 53 49 b, unnumbered paragraph 1, Code 1995, is amended to 53 50 read as follows: 54 1 Transfer from each terminated city fire or police 54 2 retirement system to the statewide system amounts 54 3 sufficient to cover the accrued liabilities of that 54 4 terminated system as determined by the actuary of the 54 5 statewide system. The actuary of the statewide system 54 6 shall redetermine the accrued liabilities of the 54 7 terminated systems as necessary to take into account 54 8 additional amounts payable by the city which are 54 9 attributable to errors or omissions which occurred 54 10 prior to January 1, 1992, or to matters pending as of 54 11 January 1, 1992. If the actuary of the statewide 54 12 system determines that the assets transferred by a 54 13 terminated system are insufficient to fully fund the 54 14 accrued liabilities of the terminated system as 54 15 determined by the actuary as of January 1, 1992, the 54 16 participating city shall pay to the statewide system 54 17 an amount equal to the unfunded liability plus 54 18 interest for the period beginning January 1, 1992, and 54 19 ending with the date of payment or the date of entry 54 20 into an amortization agreement pursuant to this 54 21 section. Interest on the unfunded liability shall be 54 22 computed at a rate equal to the greater of the 54 23 actuarial interest rate assumption on investments of 54 24 the moneys in the fund or the actual investment 54 25 earnings of the fund for the applicable calendar year. 54 26 The participating city may enter into an agreement 54 27 with the statewide system to make additional annual 54 28 contributions sufficient to amortize the unfunded 54 29 accrued liability of the terminated system. The terms 54 30 of an amortization agreement shall be based upon the 54 31 recommendation of the actuary of the statewide system, 54 32 and the agreement shall do each of the following: 54 33 Sec. 108. NEW SECTION. 411.40 VOLUNTARY BENEFIT 54 34 PROGRAMS. 54 35 The board of trustees may establish voluntary 54 36 benefit programs for members subject to the following 54 37 conditions: 54 38 1. The voluntary benefit programs may provide 54 39 benefits including, but not limited to, retiree health 54 40 benefits, long-term care, and life insurance. 54 41 2. Participation in the voluntary benefit programs 54 42 by members shall be voluntary. 54 43 3. Contributions to the voluntary benefit programs 54 44 shall be paid entirely by each participating member by 54 45 means of payroll deduction. Cities employing members 54 46 participating in voluntary benefit programs shall 54 47 forward the amounts deducted to the board of trustees 54 48 for deposit in the voluntary benefit fund. 54 49 4. The voluntary benefit programs and the 54 50 voluntary benefit fund shall be administered under the 55 1 direction of the board of trustees for the exclusive 55 2 benefit of members paying contributions as provided in 55 3 subsection 3. 55 4 5. The assets of the voluntary benefit programs 55 5 shall be credited to the voluntary benefit fund, which 55 6 is hereby created. The voluntary benefit fund shall 55 7 include contributions deposited in accordance with 55 8 subsection 3, and any interest and earnings on the 55 9 contributions. The board of trustees shall annually 55 10 establish an investment policy to govern the 55 11 investment and reinvestment of the assets in the 55 12 voluntary benefit fund. The voluntary benefit fund 55 13 created under this section and the fire and police 55 14 retirement fund created under section 411.8 shall not 55 15 be used to subsidize any portion of the liabilities of 55 16 the other fund. 55 17 6. The board of trustees shall include in its 55 18 annual budget the amount of money necessary during the 55 19 following year to provide for the expense of operation 55 20 of the voluntary benefit programs. The operating 55 21 expenses shall be paid from the voluntary benefit fund 55 22 under the direction of the board of trustees. 55 23 DIVISION V 55 24 JUDICIAL RETIREMENT SYSTEM 55 25 Sec. 109. Section 602.9111, Code 1995, is amended 55 26 to read as follows: 55 27 602.9111 INVESTMENT OF FUND. 55 28 So much of the judicial retirement fund as may not 55 29 be necessary to be kept on hand for the making of 55 30 disbursements under this article shall be invested by 55 31 the treasurer of state inbonds or other evidences of55 32indebtedness issued, assumed, or guaranteed by the55 33United States of America, or by any agency or55 34instrumentality thereof or inany investments 55 35 authorized for the Iowa public employees' retirement 55 36 system in section 97B.7, subsection 2, paragraph "b", 55 37 and the earnings therefrom shall be credited tosaid55 38 the fund. The treasurer of state may execute 55 39 contracts and agreements with investment advisors, 55 40 consultants, and investment management and benefit 55 41 consultant firms in the administration of the judicial 55 42 retirement fund. 55 43 Investment management expenses shall be charged to 55 44 the investment income of the fund and there is 55 45 appropriated from the fund an amount required for the 55 46 investment management expenses. The court 55 47 administrator shall report the investment management 55 48 expenses for the fiscal year as a percent of the 55 49 market value of the system. 55 50 For purposes of this section, investment management 56 1 expenses are limited to the following: 56 2 a. Fees for investment advisors, consultants, and 56 3 investment management and benefit consultant firms 56 4 hired by the treasurer of state in administering the 56 5 fund. 56 6 b. Fees and costs for safekeeping fund assets. 56 7 c. Costs for performance and compliance 56 8 monitoring, and accounting for fund investments. 56 9 d. Any other costs necessary to prudently invest 56 10 or protect the assets of the fund. The state court 56 11 administrator and the treasurer of state, and their 56 12 employees, are not personally liable for claims based 56 13 upon an act or omission of the person performed in the 56 14 discharge of the person's duties concerning the 56 15 judicial retirement fund, except for acts or omissions 56 16 which involve malicious or wanton misconduct. 56 17 DIVISION IV 56 18 EFFECTIVE AND APPLICABILITY PROVISIONS 56 19 Sec. 110. EFFECTIVE AND RETROACTIVE APPLICABILITY 56 20 DATES. 56 21 1. The section of this Act which amends section 56 22 97B.49, subsection 16, by enacting a new paragraph 56 23 "m", being deemed of immediate importance, takes 56 24 effect upon enactment and applies retroactively to 56 25 July 1, 1992. 56 26 2. The section of this Act which amends section 56 27 411.6, subsection 12, paragraphs "a" through "c", 56 28 takes effect July 1, 1997." 56 29 SF 2245H 56 30 ec/pk/25
Text: S05827 Text: S05829 Text: S05800 - S05899 Text: S Index Bills and Amendments: General Index Bill History: General Index
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