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PAG LIN 1 1 DIVISION I 1 2 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 1 3 Section 1. Section 97B.4, unnumbered paragraph 1, Code 1 4 1995, is amended to read as follows: 1 5 The department, through the chief investment officer and 1 6 chief benefits officer, shall administer this chapter. The 1 7 department may adopt, amend, or rescind rules, employ persons, 1 8 execute contracts with outside parties, make expenditures, 1 9 require reports, make investigations, and take other action it 1 10 deems necessary for the administration of the system in 1 11 conformity with the requirements of this chapter, the 1 12 applicable provisions of the Internal Revenue Code, and all 1 13 other applicable federal and state laws. The rules shall be 1 14 effective upon compliance with chapter 17A. Not later than 1 15 the fifteenth day of December of each year, the department 1 16 shall submit to the governor a report covering the 1 17 administration and operation of this chapter during the 1 18 preceding fiscal year and shall make recommendations for 1 19 amendments to this chapter. The report shall include a 1 20 balance sheet of the moneys in the Iowa public employees' 1 21 retirement fund. 1 22 Sec. 2. Section 97B.7, subsection 2, paragraph b, 1 23 unnumbered paragraphs 1 through 3, Code 1995, are amended to 1 24 read as follows: 1 25 To invest the portion of the retirement fund which in the 1 26 judgment of the department is not needed for current payment 1 27 of benefits under this chapter. The department shall execute 1 28 the disposition and investment of moneys in the retirement 1 29 fund in accordance with the investment policy and goal 1 30 statement established by the investment board. In 1 31 establishing the investment policy of the fund and the 1 32 investment of the fund, the department and investment board 1 33 shall exercise the judgment and care, under the circumstances 1 34 then prevailing, which persons of prudence, discretion, and 1 35 intelligence exercise in the management of their own affairs, 2 1 not for the purpose of speculation, but with regard to the 2 2 permanent disposition of the funds, considering the probable 2 3 income, as well as the probable safety, of their capital. 2 4 Within the limitations of the standard prescribed in this 2 5 section, the treasurer of state, the department, and the board 2 6 may acquire and retain every kind of property and every kind 2 7 of investment which persons of prudence, discretion, and 2 8 intelligence acquire or retain for their own account. 2 9 The department and investment board shall give appropriate 2 10 consideration to those facts and circumstances that the 2 11 department and investment board know or should know are 2 12 relevant to the particular investment or investment policy 2 13 involved, including the role the investment plays in the total 2 14 value of the retirement fund. 2 15 For the purposes of this paragraph, appropriate 2 16 consideration includes, but is not limited to, a determination 2 17 by the department and investment board that the particular 2 18 investment or investment policy is reasonably designed to 2 19 further the purposes of the retirement system, taking into 2 20 consideration the risk of loss and the opportunity for gain or 2 21 other return associated with the investment or investment 2 22 policy and consideration of the following factors as they 2 23 relate to the retirement fund: 2 24 Sec. 3. Section 97B.7, subsection 2, paragraph b, 2 25 unnumbered paragraph 5, Code 1995, is amended to read as 2 26 follows: 2 27 Except as provided in section 97B.4, if there is loss to 2 28 the fund, the treasurer, the department, and the board are not 2 29 personally liable, and the loss shall be charged against the 2 30 retirement fund. There is appropriated from the retirement 2 31 fund the amount required to cover a loss. Expenses incurred 2 32 in the sale and purchase of securities belonging to the 2 33 retirement fund shall be charged to the retirement fund, and 2 34 there is appropriated from the retirement fund the amount 2 35 required for the expenses incurred. Investment management 3 1 expenses shall be charged to the investment income of the 3 2 retirement fund, and there is appropriated from the retirement 3 3 fund the amount required for the investment management 3 4 expenses, subject to the limitations stated in this unnumbered 3 5 paragraph. The amount appropriated for a fiscal year under 3 6 this unnumbered paragraph shall not exceedone-halffour- 3 7 tenths of one percent of the market value of the retirement 3 8 fund. The department shall report the investment management 3 9 expenses for a fiscal year as a percent of the market value of 3 10 the retirement fund in the annual report to the governor 3 11 required in section 97B.4. A person who has signed a contract 3 12 with the department for investment management purposes shall 3 13 meet the requirements for doing business in Iowa sufficient to 3 14 be subject to tax under rules of the department of revenue and 3 15 finance. 3 16 Sec. 4. Section 97B.11, Code 1995, is amended to read as 3 17 follows: 3 18 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE. 3 19 Each employer shall deduct from the wages of each member of 3 20 the system a contribution in the amount of three and seven- 3 21 tenths percent of the covered wages paid by the employer, 3 22 until the member's termination or retirement from employment, 3 23 whichever is earlier. The contributions of the employer shall 3 24 be in the amount of five and seventy-five hundredths percent 3 25 of the covered wages of the member. 3 26 If the total of the contributions to be deducted from the 3 27 wages of a member and contributions picked up and paid by the 3 28 employer shall not exceed one dollar for any calendar quarter, 3 29 contributions shall not be deducted or paid concerning that 3 30 member and the member shall not receive credit for membership 3 31 service for that quarter. 3 32 Sec. 5. Section 97B.14, Code 1995, is amended to read as 3 33 follows: 3 34 97B.14 CONTRIBUTIONS FORWARDED. 3 35 Contributions deducted from the wages of the memberor4 1 under section 97B.11 prior to January 1, 1995, member 4 2 contributions picked up by the employer under section 97B.11A 4 3 beginning January 1, 1995, and the employer's contribution 4 4 shall be forwarded to the department for recording and 4 5 deposited with the treasurer of the state to the credit of the 4 6 Iowa public employees' retirement fund. Contributions shall 4 7 be remitted monthly, if total contributions by both employee 4 8 and employer amount to one hundred dollars or more each month, 4 9 and shall be otherwise paid in such manner, at such times and 4 10 under such conditions, either by copies of payrolls or other 4 11 methods necessary or helpful in securing proper identification 4 12 of the member, as may be prescribed by the department. 4 13 Sec. 6. Section 97B.15, Code 1995, is amended to read as 4 14 follows: 4 15 97B.15 RULES, POLICIES, AND PROCEDURES. 4 16 The department may adopt rules under chapter 17A and 4 17 establish procedures, not inconsistent with this chapter, 4 18 which are necessary or appropriate to implement this chapter 4 19 and shall adopt reasonable and proper rules to regulate and 4 20 provide for the nature and extent of the proofs and evidence 4 21 and the method of taking and furnishing the proofs and 4 22 evidence in order to establish the right to benefits under 4 23 this chapter. The department may adopt rules, and take action 4 24 based on the rules, to conform the requirements for receipt of 4 25 retirement benefits under this chapter to the mandates of 4 26 applicable federal statutes and regulations. 4 27 Prior to the adoption of rules, the department may 4 28 establish interim written policies and procedures, and take 4 29 action based on the policies and procedures, to conform the 4 30 requirements for receipt of retirement benefits under this 4 31 chapter to the applicable requirements of federal law. 4 32 Sec. 7. Section 97B.17, unnumbered paragraph 1, Code 1995, 4 33 is amended to read as follows: 4 34 The department shall establish and maintain records of each 4 35 member, including but not limited to, the amount of wages of 5 1 each member, the contribution of each member with interest, 5 2 and interest dividends credited. The records may be 5 3 maintained in paper, magnetic, or electronic form, including 5 4 optical disk storage. These records are the basis for the 5 5 compilation of the retirement benefits provided under this 5 6 chapter. The following records maintained under this chapter 5 7 containing personal identifiable information are not public 5 8 records for the purposes of chapter 22: 5 9 Sec. 8. Section 97B.17, Code 1995, is amended by adding 5 10 the following new unnumbered paragraph: 5 11 NEW UNNUMBERED PARAGRAPH. Notwithstanding any provisions 5 12 of chapter 22 to the contrary, the department's records may be 5 13 released to any political subdivision, instrumentality, or 5 14 other agency of the state solely for use in a civil or 5 15 criminal law enforcement activity pursuant to the requirements 5 16 of this paragraph. To obtain the records, the political 5 17 subdivision, instrumentality, or agency shall, in writing, 5 18 certify that the activity is authorized by law, provide a 5 19 written description of the information desired, and describe 5 20 the law enforcement activity for which the information is 5 21 sought. The department shall not be civilly or criminally 5 22 liable for the release or rerelease of records in accordance 5 23 with this paragraph. 5 24 Sec. 9. Section 97B.25, Code 1995, is amended to read as 5 25 follows: 5 26 97B.25 APPLICATIONS FOR BENEFITS. 5 27 A representative designated by the chief benefits officer 5 28 and referred to in this chapter as a retirement benefits 5 29 specialist shall promptly examine applications for retirement 5 30 benefits and on the basis of facts found shall determine 5 31 whether or not the claim is valid and if valid, the month with 5 32 respect to which benefits shall commence, the monthly benefit 5 33 amount payable, and the maximum duration. The retirement 5 34 benefits specialist shall promptly notify the applicant and 5 35 any other interested party of the decision and the reasons. 6 1 Unless the applicant or other interested party, within thirty 6 2 calendar days after the notification was mailed to the 6 3 applicant's or party's last known address, files an appeal as 6 4 provided in section 97B.20A, the decision is final and 6 5 benefits shall be paid or denied in accord with the decision. 6 6 A retirement application shall not be amended or revoked by 6 7 the member once the first retirement allowance is paid. A 6 8 member's death during the first month of entitlement shall not 6 9 invalidate an approved application. 6 10 Sec. 10. Section 97B.39, Code 1995, is amended to read as 6 11 follows: 6 12 97B.39 RIGHTS NOT TRANSFERABLE –NOTOR SUBJECT TO LEGAL 6 13 PROCESS – EXCEPTIONS. 6 14 The right of any person to any future payment under this 6 15 chapter is not transferable or assignable, at law or in 6 16 equity, and the moneys paid or payable or rights existing 6 17 under this chapter are not subject to execution, levy, 6 18 attachment, garnishment, or other legal process, or to the 6 19 operation of any bankruptcy or insolvency law except for the 6 20 purposes of enforcing child, spousal, or medical support 6 21 obligations or marital property orders. For the purposes of 6 22 enforcing child, spousal, or medical support obligations, the 6 23 garnishment or attachment of or the execution against 6 24 compensation due a person under this chapter97Bshall not 6 25 exceed the amount specified in 15 U.S.C. } 1673(b). The 6 26 department shall comply with the provisions of a marital 6 27 property order requiring the selection of a particular benefit 6 28 option, designated beneficiary, or contingent annuitant if the 6 29 selection is otherwise authorized by this chapter and the 6 30 member has not received payment of the member's first 6 31 retirement allowance. However, a marital property order shall 6 32 not require the payment of benefits to an alternative payee 6 33 prior to the member's retirement, prior to the date the member 6 34 elects to receive a lump sum distribution of accumulated 6 35 contributions pursuant to section 97B.53, or in an amount that 7 1 exceeds the benefits the member would otherwise be eligible to 7 2 receive pursuant to this chapter. 7 3 Sec. 11. Section 97B.41, subsection 2, Code Supplement 7 4 1995, is amended to read as follows: 7 5 2. "Accumulated contributions" means the total obtained as 7 6 of any date, by accumulating each individual contribution by 7 7 the memberat two percentwith interest plus interest 7 8 dividends as provided in section 97B.70, for all completed 7 9 calendar years and for any completed calendar year for which 7 10 the interest dividend has not been declared and for completed 7 11 months of partially completed calendar yearsat two percent7 12interest plus the interest dividend rate calculated for the7 13previous year, compoundedannually, from the end of the7 14calendar year in which such contribution was made to the first7 15day of the month of such dateas provided in section 97B.70. 7 16 Sec. 12. Section 97B.41, subsection 8, paragraph b, 7 17 subparagraph (6), Code Supplement 1995, is amended to read as 7 18 follows: 7 19 (6) Employees hired for temporary employment of less than 7 20 six months or one thousand and forty hours in a calendar year. 7 21 An employee who works for an employer for six or more months 7 22 in a calendar year or who works for an employer for more than 7 23 one thousand forty hours in a calendar year is not a temporary 7 24 employee under this subparagraph. Adjunct instructors are 7 25 temporary employees for the purposes of this chapter. As used 7 26 in this section, unless the context otherwise requires, 7 27 "adjunct instructors" means instructors employed by a 7 28 community college or a university governed by the state board 7 29 of regents without a continuing contract, whose teaching load 7 30 does not exceed one-half time for two full semesters or three 7 31 full quarters per calendar year. 7 32 Sec. 13. Section 97B.41, subsection 8, paragraph b, Code 7 33 Supplement 1995, is amended by adding the following new 7 34 subparagraph: 7 35 NEW SUBPARAGRAPH. (20) Persons employed through any 8 1 program described in section 15.225, subsection 1, and 8 2 provided by the Iowa conservation corps. 8 3 Sec. 14. Section 97B.41, Code Supplement 1995, is amended 8 4 by adding the following new subsection: 8 5 NEW SUBSECTION. 10A. "Internal Revenue Code" means the 8 6 Internal Revenue Code as defined in section 422.3. 8 7 Sec. 15. Section 97B.41, subsection 12, Code Supplement 8 8 1995, is amended to read as follows: 8 9 12. "Membership service" means service rendered by a 8 10 member after July 4, 1953. Years of membership service shall 8 11 be counted to the complete quarter calendar year. However, 8 12 membership service for a calendar year shall not include more 8 13 than four quarters. In determining a member's period of 8 14 membership service, the department shall combine all periods 8 15 of service for which the member has made contributions. If 8 16 the department has not maintained the accumulated contribution 8 17 account of the member for a period of service, as provided 8 18 pursuant to section 97B.53, subsection 6, the department shall 8 19 credit the member for the service if the member submits 8 20 satisfactory proof to the department that the member did make 8 21 the contributions for the period of service and did not take a 8 22 refund for the period of service.However, the department8 23shall not implement the amendments to this subsection, as8 24enacted in 1994 Iowa Acts, chapter 1183, unless and until the8 25department determines that the most recent annual actuarial8 26valuation of the retirement system indicates that the employer8 27and employee contribution rates in effect under section 97B.118 28can absorb the amendments to this subsection and to section8 2997B.53, subsections 3 and 7, section 97B.53, subsection 6,8 30unnumbered paragraph 1, and section 97B.70, by enacting a new8 31subsection 4, contained in 1994 Iowa Acts, chapter 1183, after8 32meeting the other established priorities of the system. Until8 33the amendments are implemented, the department shall continue8 34to implement the provisions of section 97B.41, subsection 12,8 35Code Supplement 1993. As used in this subsection, unless the9 1context otherwise requires, "other established priorities of9 2the system" means that commencing January 1 following the most9 3recent annual actuarial valuation of the system, the9 4department has increased the covered wage limitation from the9 5previous year by three thousand dollars, in accordance with9 6section 97B.41, subsection 20, paragraph "b", subparagraph9 7(11), and that the department has implemented the amendments9 8to section 97B.66, unnumbered paragraphs 1 and 2, section9 997B.72, unnumbered paragraphs 1 and 2, section 97B.72A,9 10subsection 1, unnumbered paragraph 1, section 97B.73A,9 11unnumbered paragraph 1, and section 97B.74, unnumbered9 12paragraphs 1 and 2, contained in 1994 Iowa Acts, chapter 1183.9 13 Sec. 16. Section 97B.41, Code Supplement 1995, is amended 9 14 by adding the following new subsection: 9 15 NEW SUBSECTION. 13A. "Regular service" means service for 9 16 an employer other than special service. 9 17 Sec. 17. Section 97B.41, Code Supplement 1995, is amended 9 18 by adding the following new subsection: 9 19 NEW SUBSECTION. 14A. "Retirement" means that period of 9 20 time beginning when a member who has filed an approved 9 21 application for a retirement allowance has survived into at 9 22 least the first day of the member's first month of entitlement 9 23 and ending when the member dies. 9 24 Sec. 18. Section 97B.41, subsection 15, paragraphs a and 9 25 b, Code Supplement 1995, are amended to read as follows: 9 26 a. Service in the armed forces of the United States, if 9 27 the employee was employed by the employer immediately prior to 9 28 entry into the armed forces, and if the employee was released 9 29 from service and returns to covered employment with the 9 30 employer within twelve months of the date on which the 9 31 employee has the right of release from service or within a 9 32 longer period asprovidedrequired by the applicable laws of 9 33 the United States. 9 34 b. Leave of absence or vacation authorized by the employer 9 35 for a period not exceeding twelve months. A leave of absence 10 1 authorized pursuant to the requirements of the federal Family 10 2 and Medical Leave Act of 1993 is considered a leave of absence 10 3 authorized by the employer. 10 4 Sec. 19. Section 97B.41, Code Supplement 1995, is amended 10 5 by adding the following new subsection: 10 6 NEW SUBSECTION. 16A. "Special service" means service for 10 7 an employer while employed in a protection occupation as 10 8 provided in section 97B.49, subsection 16, paragraph "a", and 10 9 as a county sheriff, deputy sheriff, or airport fire fighter 10 10 as provided in section 97B.49, subsection 16, paragraph "b". 10 11 Sec. 20. Section 97B.41, subsection 18, Code Supplement 10 12 1995, is amended to read as follows: 10 13 18. a. "Three-year average covered wage" means a member's 10 14 covered wages averaged for the highest three years of the 10 15 member's service, except as otherwise provided in this 10 16 subsection. The highest three years of a member's covered 10 17 wages shall be determined using calendar years. However, if a 10 18 member's final quarter of a year of employment does not occur 10 19 at the end of a calendar year, the department may determine 10 20 the wages for the third year by computing the average quarter 10 21 of all quarters from the member's highest calendar year of 10 22 covered wages not being used in the selection of the two 10 23 highest years and using the computed average quarter for each 10 24 quarter in the third year in which no wages have been reported 10 25 in combination with the final quarter or quarters of the 10 26 member's service to create a full year. However, the 10 27 department shall not use the member's final quarter of wages 10 28 if using that quarter would reduce the member's three-year 10 29 average covered wage. If the three-year average covered wage 10 30 of a member exceeds the highest maximum covered wages in 10 31 effect for a calendar year during the member's period of 10 32 service, the three-year average covered wage of the member 10 33 shall be reduced to the highest maximum covered wages in 10 34 effect during the member's period of service. 10 35 b. Notwithstanding any other provisions of this subsection 11 1 to the contrary, the three-year average covered wage shall be 11 2 computed as follows for the following members: 11 3 (1) For a member who retires during the calendar year 11 4 beginning January 1, 1997, and whose three-year average 11 5 covered wage at the time of retirement exceeds forty-eight 11 6 thousand dollars, the member's covered wages averaged for the 11 7 highest four years of the member's service or forty-eight 11 8 thousand dollars, whichever is greater. 11 9 (2) For a member who retires during the calendar year 11 10 beginning January 1, 1998, and whose three-year average 11 11 covered wage at the time of retirement exceeds fifty-two 11 12 thousand dollars, the member's covered wages averaged for the 11 13 highest five years of the member's service or fifty-two 11 14 thousand dollars, whichever is greater. 11 15 (3) For a member who retires during the calendar year 11 16 beginning January 1, 1999, and whose three-year average 11 17 covered wage at the time of retirement exceeds fifty-five 11 18 thousand dollars, the member's covered wages averaged for the 11 19 highest six years of the member's service or fifty-five 11 20 thousand dollars, whichever is greater. 11 21 (4) For a member who retires on or after January 1, 2000, 11 22 but before January 1, 2003, and whose three-year average 11 23 covered wage at the time of retirement exceeds fifty-five 11 24 thousand dollars, the member's covered wages averaged for the 11 25 highest seven years of the member's service or fifty-five 11 26 thousand dollars, whichever is greater. 11 27 For purposes of this paragraph, the highest years of the 11 28 member's service shall be determined using calendar years and 11 29 may be determined using one computed year calculated in the 11 30 manner and subject to the restrictions provided in paragraph 11 31 "a". 11 32 Sec. 21. Section 97B.41, subsection 20, paragraph b, 11 33 subparagraph (11), unnumbered paragraphs 1 and 2, Code 11 34 Supplement 1995, are amended by striking the unnumbered 11 35 paragraphs and inserting in lieu thereof the following: 12 1 (11) For the calendar year beginning January 1, 1991, 12 2 wages not in excess of thirty-one thousand dollars. 12 3 (11A) For the calendar year beginning January 1, 1992, 12 4 wages not in excess of thirty-four thousand dollars. 12 5 (11B) For the calendar year beginning January 1, 1993, 12 6 wages not in excess of thirty-five thousand dollars. 12 7 (11C) For the calendar year beginning January 1, 1994, 12 8 wages not in excess of thirty-eight thousand dollars. 12 9 (11D) For the calendar year beginning January 1, 1995, 12 10 wages not in excess of forty-one thousand dollars. 12 11 (11E) For the calendar year beginning January 1, 1996, 12 12 wages not in excess of forty-four thousand dollars. 12 13 (11F) Commencing with the calendar year beginning January 12 14 1, 1997, and for each subsequent calendar year, wages not in 12 15 excess of the amount permitted for that year under section 12 16 401(a)(17) of the Internal Revenue Code. 12 17 Sec. 22. Section 97B.41, subsection 20, paragraph b, 12 18 subparagraph (11), unnumbered paragraph 3, Code Supplement 12 19 1995, is amended to read as follows: 12 20 Notwithstanding any other provision of this chapter 12 21 providing for the payment of the benefits provided in section 12 22 97B.49, subsection 16 or 17, the department shall establish 12 23 the covered wages limitation which applies to members covered 12 24 under section 97B.49, subsection 16 or 17, at the same level 12 25 as is established under this subparagraph for other members of 12 26 the system. 12 27 Sec. 23. Section 97B.42, unnumbered paragraph 1, Code 12 28 1995, is amended to read as follows: 12 29 Each employee whose employment commences after July 4, 12 30 1953, or who has not qualified for credit for prior service 12 31 rendered prior to July 4, 1953, or any publicly elected 12 32 official of the state or any of its political subdivisions 12 33 shall become a member upon the first day in which such 12 34 employee is employed. The employee shall continue to be an 12 35 active member so long as the employee continues in covered 13 1 employment. The employee shall cease to be an active member 13 2 if the employee joins another retirement system in the state 13 3 which is maintained in whole or in part by public 13 4 contributions or payments and receives retirement credit for 13 5 service in that other system for the same position previously 13 6 covered under this chapter. If an employee joins another 13 7 publicly maintained retirement system and ceases to be an 13 8 active member under this chapter, the employee may elect to 13 9 leave the employee's accumulated contributions in the 13 10 retirement fund or receive a refund of the employee's 13 11 accumulated contributions in the manner provided for members 13 12 who are terminating covered employment pursuant to section 13 13 97B.53. However, if an employee joins another publicly 13 14 maintained retirement system and leaves the employee's 13 15 accumulated contributions in the retirement fund, the employee 13 16 shall not be eligible to receive retirement benefits until the 13 17 employee has a bona fide retirement from employment with a 13 18 covered employer as provided in section 97B.52A, or until the 13 19 employee would otherwise be eligible to receive benefits upon 13 20 attaining the age of seventy years as provided in section 13 21 97B.46. 13 22 Sec. 24. Section 97B.42, unnumbered paragraph 4, Code 13 23 1995, is amended to read as follows: 13 24 Persons who are members of any other retirement system in 13 25 the state which is maintained in whole or in part by public 13 26 contributions other than persons who are covered under the 13 27 provisions of chapter 97, Code 1950, as amended by the Fifty- 13 28 fourth General Assembly on the date of the repeal of said 13 29 chapter, under the provisions of sections 97.50 through 97.53 13 30 shall not become members under this chapter while still 13 31 actively participating in that other retirement system unless 13 32 the persons do not receive retirement credit for service in 13 33 that other system for the position to be covered under this 13 34 chapter. 13 35 Sec. 25. Section 97B.42, unnumbered paragraph 5, Code 14 1 1995, is amended to read as follows: 14 2 Nothing herein contained shall be construed to permit any 14 3person in public employment to be an active member ofemployer 14 4 to make any public contributions or payments on behalf of an 14 5 employee in the same position for the same period of time to 14 6 both the Iowa public employees' retirement system and of any 14 7 other retirement system in the state which is supported in 14 8 whole or in part by public contributions or paymentsexcept as14 9heretofore provided. 14 10 Sec. 26. Section 97B.42, Code 1995, is amended by adding 14 11 the following new unnumbered paragraph: 14 12 NEW UNNUMBERED PARAGRAPH. For purposes of this section, a 14 13 "retirement system in the state which is maintained in whole 14 14 or in part by public contributions or payments" shall not 14 15 include a deferred compensation plan established under section 14 16 509A.12 or a tax-sheltered annuity qualified under section 14 17 403(b) of the Internal Revenue Code. 14 18 Sec. 27. Section 97B.48, subsection 1, Code 1995, is 14 19 amended to read as follows: 14 20 1. Retirement allowances shall be paid monthly, except 14 21 that an allowance of less than six hundred dollars a year may, 14 22 at the member's option, be paid as a lump sum in anactuarial14 23equivalentamount equal to the sum of the member's and 14 24 employer's accumulated contributions and the retirement 14 25 dividends standing to the member's credit before December 31, 14 26 1966. Receipt of the lump-sum payment by a member shall 14 27 terminate any and all entitlement for the period of service 14 28 covered of the member under this chapter. 14 29 Sec. 28. Section 97B.48A, subsection 1, Code 1995, is 14 30 amended to read as follows: 14 31 1. If, after the first day of the month in which the14 32member attains the age of fifty-five years and until the14 33member's sixty-fifth birthday,a member who has not reached 14 34 the member's sixty-fifth birthday and who has a bona fide 14 35 retirement under this chapter is in regular full-time 15 1 employment during a calendar year, the member's retirement 15 2 allowance shall besuspended for as long as the member remains15 3in employment for the remainder of that calendar yearreduced 15 4 by fifty cents for each dollar the member earns over the limit 15 5 provided in this subsection. However,effective January 1,15 61992,employment is not full-time employment until the member 15 7 receives remuneration in an amount in excess of seven thousand 15 8 four hundred forty dollars for a calendar year, or an amount 15 9 equal to the amount of remuneration permitted for a calendar 15 10 year for persons under sixty-five years of age before a 15 11 reduction in federal Social Security retirement benefits is 15 12 required, whichever is higher. Effective the first of the 15 13 month in which a member attains the age of sixty-five years, a 15 14 retired member may receive a retirement allowance without a 15 15 reduction after return to covered employment regardless of the 15 16 amount of remuneration received. 15 17 If a member dies and the full amount of the reduction from 15 18 retirement allowances required under this subsection has not 15 19 been paid, the remaining amounts shall be deducted from the 15 20 payments made, if any, to the member's designated beneficiary 15 21 or contingent annuitant. If the member has selected an option 15 22 under which remaining payments are not required or the 15 23 remaining payments are insufficient to satisfy the full amount 15 24 of the reduction from retirement allowances required under 15 25 this subsection, the amount still unpaid shall be a claim 15 26 against the member's estate. 15 27 Sec. 29. Section 97B.48A, subsection 4, Code 1995, is 15 28 amended to read as follows: 15 29 4. The department shall pay to the member the accumulated 15 30 contributions of the member and to the employer the employer 15 31 contributions, plustwo percentinterest plus interest 15 32 dividends as provided in section 97B.70, for all completed 15 33 calendar years, compoundedannuallyas provided in section 15 34 97B.70, on the covered wages earned by a retired member that 15 35 are not used in the recalculation of the retirement allowance 16 1 of a member. 16 2 Sec. 30. Section 97B.49, subsection 4, Code Supplement 16 3 1995, is amended by adding the following new unnumbered 16 4 paragraph: 16 5 NEW UNNUMBERED PARAGRAPH. Effective January 1, 1997, for 16 6 members who retired on or after July 1, 1953, and before July 16 7 1, 1990, with at least ten years of prior and membership 16 8 service, the minimum monthly benefit payable at the normal 16 9 retirement date for prior and membership service shall be two 16 10 hundred dollars. The minimum monthly benefit payable shall be 16 11 increased by ten dollars for each year of prior and membership 16 12 service beyond ten years, up to a maximum of twenty additional 16 13 years of prior and membership service. If benefits commenced 16 14 on an early retirement date, the amount of the benefit shall 16 15 be reduced in accordance with section 97B.50. If an optional 16 16 allowance was selected under section 97B.51, the amount 16 17 payable shall be the actuarial equivalent of the minimum 16 18 benefit. 16 19 Sec. 31. Section 97B.49, subsection 5, paragraph b, Code 16 20 Supplement 1995, is amended to read as follows: 16 21 b. For each active or inactive vested member retiring on 16 22 or after July 1, 1990, with four or more complete years of 16 23 service, a monthly benefit shall be computed which is equal to 16 24 one-twelfth of an amount equal tofifty-two percentthe 16 25 applicable percentage multiplier of the three-year average 16 26 covered wage multiplied by a fraction of years of service. 16 27 The applicable percentage multiplier shall be the following: 16 28 (1) For active or inactive vested members retiring on or 16 29 after July 1, 1990, but before July 1, 1991, fifty-two 16 30 percent. 16 31 (2) For active or inactive vested members retiring on or 16 32 after July 1, 1991, but before July 1, 1992, fifty-four 16 33 percent. 16 34 (3) For active or inactive vested members retiring on or 16 35 after July 1, 1992, but before July 1, 1993, fifty-six 17 1 percent. 17 2 (4) For active or inactive vested members retiring on or 17 3 after July 1, 1993, but before July 1, 1994, fifty-seven and 17 4 four-tenths percent. 17 5 (5) For active or inactive vested members retiring on or 17 6 after July 1, 1994, sixty percent. 17 7 The applicable percentage multiplier shall be subject to 17 8 adjustments as provided in paragraphs "e" and "f". 17 9Commencing July 1, 1991, the department shall increase the17 10percentage multiplier of the three-year average covered wage17 11by an additional two percent each July 1 until reaching sixty17 12percent of the three-year average covered wage if the annual17 13actuarial valuation of the retirement system indicates for17 14that year that the cost of this increase in the percentage of17 15the three-year average covered wage used in computing17 16retirement benefits can be absorbed within the employer and17 17employee contribution rates in effect under section 97B.11.17 18However, commencing July 1, 1994, if the annual actuarial17 19valuation of the retirement system indicates that the employer17 20and employee contribution rates in effect under section 97B.1117 21can absorb an increase in the percentage multiplier in excess17 22of two percent, the department shall increase the percentage17 23multiplier for that year beyond two percent to the extent17 24which the increase can be absorbed by the contribution rates17 25in effect, not to exceed a maximum percentage multiplier of17 26sixty percent. The increase in the percentage multiplier for17 27a year applies only to the members retiring on or after July 117 28of the respective year.17 29If the annual actuarial valuation of the retirement system17 30in any year indicates that the full cost of the increase17 31provided under this paragraph cannot be absorbed within the17 32employer and employee contribution rates in effect under17 33section 97B.11, the department shall reduce the increase to a17 34level which the department determines can be so absorbed.17 35 Notwithstanding any other provision of this chapter 18 1 providing for the payment of the benefits provided in 18 2 subsection 16 or 17, the department shallestablishapply the 18 3 percentage multiplier which applies to members covered under 18 4 subsection 16 or 17 at the same level as is established under 18 5 this subsection for other members of the system, including any 18 6 modification in the percentage multiplier as provided in 18 7 paragraphs "e" and "f". 18 8By November 15, 1995, the department shall set aside from18 9other moneys in the retirement fund three million eight18 10hundred sixty thousand dollars. The moneys set aside shall be18 11from the funds generated by the employer and employee18 12contributions in effect under section 97B.11 that exceed the18 13amount necessary to fund the system's existing liabilities, as18 14determined in the annual actuarial valuation of the system as18 15of June 30, 1995. If the annual actuarial valuation indicates18 16that the amount of the employer and employee contributions in18 17excess of the amount necessary to fund existing liabilities is18 18less than three million eight hundred sixty thousand dollars,18 19the department shall set aside all funds that are available.18 20The funds set aside shall not be used in determining the18 21covered wage limitation pursuant to section 97B.41, subsection18 2220, paragraph "b", subparagraph (11), on January 1, 1996.18 23However, any funds set aside which are not specifically18 24dedicated to a purpose by the Seventy-sixth General Assembly18 25shall be used in determining the covered wage limitation18 26thereafter.18 27In accordance with sections 97D.1 and 97D.4, it is the18 28intent of the general assembly that once the goal of sixty18 29percent of the three-year average covered wage is attained for18 30a percentage multiplier, the department shall submit to the18 31public retirement systems committee a plan for future benefit18 32enhancements. This plan shall include, but is not limited to,18 33continuation in the increase in the covered wage ceiling until18 34reaching fifty-five thousand dollars for a calendar year,18 35providing for annual adjustments in the annual dividends paid19 1to retired members as provided in section 97B.49, subsection19 213, and providing for the indexing of terminated vested19 3members' earned benefits at a rate of three percent per year19 4calculated from the date of termination from covered19 5employment until the date of retirement.19 6 Sec. 32. Section 97B.49, subsection 5, Code Supplement 19 7 1995, is amended by adding the following new paragraph: 19 8 NEW PARAGRAPH. e. Notwithstanding any other provisions of 19 9 this section to the contrary, for members retiring on or after 19 10 July 1, 1997, and whose three-year average covered wage 19 11 exceeds fifty-five thousand dollars, the monthly benefit shall 19 12 be calculated by multiplying the sum of the following amounts 19 13 by the fractions of years of service for that member. 19 14 (1) For the first fifty-five thousand dollars of the 19 15 member's three-year average covered wage, one-twelfth of an 19 16 amount equal to the applicable percentage multiplier otherwise 19 17 provided in this subsection multiplied by fifty-five thousand 19 18 dollars. 19 19 (2) For that portion of a member's three-year average 19 20 covered wage that exceeds fifty-five thousand dollars but is 19 21 less than or equal to sixty-five thousand dollars, one-twelfth 19 22 of an amount equal to the applicable percentage multiplier 19 23 otherwise provided in this subsection, reduced by ten 19 24 percentage points, multiplied by that portion. 19 25 (3) For that portion of a member's three-year average 19 26 covered wage that exceeds sixty-five thousand dollars but is 19 27 less than or equal to seventy-five thousand dollars, one- 19 28 twelfth of an amount equal to the applicable percentage 19 29 multiplier otherwise provided in this subsection, reduced by 19 30 fifteen percentage points, multiplied by that portion. 19 31 (4) For that portion of a member's three-year average 19 32 covered wage that exceeds seventy-five thousand dollars but is 19 33 less than or equal to eighty-five thousand dollars, one- 19 34 twelfth of an amount equal to the applicable percentage 19 35 multiplier otherwise provided in this subsection, reduced by 20 1 twenty percentage points, multiplied by that portion. 20 2 (5) For that portion of a member's three-year average 20 3 covered wage that exceeds eighty-five thousand dollars but is 20 4 less than or equal to ninety-five thousand dollars, one- 20 5 twelfth of an amount equal to the applicable percentage 20 6 multiplier otherwise provided in this subsection, reduced by 20 7 thirty percentage points, multiplied by that portion. 20 8 (6) For that portion of a member's three-year average 20 9 covered wage that exceeds ninety-five thousand dollars, one- 20 10 twelfth of an amount equal to the applicable percentage 20 11 multiplier otherwise provided in this subsection, reduced by 20 12 forty percentage points, multiplied by that portion. 20 13 The covered wage categories referred to in subparagraphs 20 14 (1) through (6) of this paragraph and the fifty-five thousand 20 15 dollar amount otherwise specified in this paragraph shall be 20 16 increased by the department for each fiscal year, beginning 20 17 July 1, 1998, by an amount that represents the increase in the 20 18 consumer price index during the previous twelve-month period 20 19 ending on June 30, as published annually in the federal 20 20 register by the federal department of labor, bureau of labor 20 21 statistics. 20 22 Sec. 33. Section 97B.49, subsection 5, Code Supplement 20 23 1995, is amended by adding the following new paragraph: 20 24 NEW PARAGRAPH. f. For each active or inactive vested 20 25 member retiring on or after July 1, 1996, the percentage 20 26 multiplier of the three-year average covered wage used under 20 27 subsections 5, 15, 16, and 17 to calculate the monthly 20 28 retirement allowance shall be increased by one-fourth of one 20 29 percentage point for each additional calendar quarter of 20 30 membership service beyond the applicable years of service, not 20 31 to exceed a total of five additional percentage points. For 20 32 purposes of this paragraph, "the applicable years of service" 20 33 shall be the following, based upon the service retirement 20 34 allowance selected: 20 35 (1) For members receiving a retirement allowance for 21 1 regular service under subsection 5 or 15, or receiving a 21 2 combined retirement allowance under subsection 17, the 21 3 applicable years of service is thirty. 21 4 (2) For members receiving a retirement allowance for 21 5 service in a protection occupation under subsection 16, 21 6 paragraph "a", the applicable years of service is twenty-five. 21 7 (3) For members receiving a retirement allowance for 21 8 service as a sheriff, deputy sheriff, or airport fire fighter 21 9 under subsection 16, paragraph "b", subparagraph (1) or (2), 21 10 the applicable years of service is twenty-two. 21 11 Sec. 34. Section 97B.49, subsection 13, Code Supplement 21 12 1995, is amended to read as follows: 21 13 13. a. A member who retired from the system between 21 14 January 1, 1976, and June 30, 1982, or a contingent annuitant 21 15 or beneficiary of such a member, shall receive with the 21 16 November1994 and the November 19951996 monthly benefit 21 17paymentspayment a retirement dividend equal toonetwo 21 18 hundredeighty-onetwenty-three percent of the monthly benefit 21 19 payment the member received for the preceding June, or the 21 20 most recently received benefit payment, whichever is greater. 21 21 The retirement dividend does not affect the amount of a 21 22 monthly benefit payment. 21 23 b. Each member who retired from the system between July 4, 21 24 1953, and December 31, 1975, or a contingent annuitant or 21 25 beneficiary of such a member, shall receive with the November 21 261994 and the November 19951996 monthly benefitpayments21 27 payment a retirement dividend equal to two hundredthirty-six21 28 ninety-two percent of the monthly benefit payment the member 21 29 received for the preceding June, or the most recently received 21 30 benefit payment, whichever is greater. The retirement 21 31 dividend does not affect the amount of a monthly benefit 21 32 payment. 21 33 c. Notwithstanding the determination of the amount of a 21 34 retirement dividend under paragraph "a", "b", "d",or"f", or 21 35 "g", a retirement dividend shall not be less than twenty-five 22 1 dollars. 22 2 d. A member who retired from the system between July 1, 22 3 1982, and June 30, 1986, or a contingent annuitant or 22 4 beneficiary of such a member, shall receive with the November 22 51994 and the November 19951996 monthly benefitpayments22 6 payment a retirement dividend equal toforty-nineseventy-four 22 7 percent of the monthly benefit payment the member received for 22 8 the preceding June, or the most recently received benefit 22 9 payment, whichever is greater. The retirement dividend does 22 10 not affect the amount of a monthly benefit payment. 22 11 e. If the member dies on or after July 1 of the dividend 22 12 year but before the payment date, the full amount of the 22 13 retirement dividend for that year shall be paidto the22 14designated beneficiaryto the member's account, upon 22 15 notification of the member's death.If there is no22 16beneficiary designated by the member, the department shall pay22 17the dividend to the member's estate. The beneficiary, or the22 18representative of the member's estate, must apply for the22 19dividend within two years after the dividend is payable or the22 20dividend is forfeited.22 21 f. A member who retired from the system between July 1, 22 22 1986, and June 30, 1990, or a contingent annuitant or 22 23 beneficiary of such a member, shall receive with the November 22 24 1996and the November 1997monthly benefitpaymentspayment a 22 25 retirement dividendin an amount determined by the general22 26assemblyequal to twenty-four percent of the monthly benefit 22 27 payment the member received for the preceding June, or the 22 28 most recently received benefit payment, whichever is greater. 22 29 The retirement dividend does not affect the amount of a 22 30 monthly benefit payment. 22 31 Sec. 35. Section 97B.49, subsection 13, Code Supplement 22 32 1995, is amended by adding the following new paragraph: 22 33 NEW PARAGRAPH. g. Effective July 1, 1997, commencing with 22 34 dividends payable in November 1997, and for each subsequent 22 35 year, all members who retired prior to July 1, 1990, shall be 23 1 eligible for annual dividend payments, payable in November of 23 2 that year, pursuant to the requirements of this paragraph. 23 3 The dividend payable in any given year shall be the sum of the 23 4 dollar amount of the dividend payable in the previous November 23 5 and the dividend adjustment. 23 6 The dividend adjustment for a given year shall be 23 7 calculated by multiplying the total of the retiree's monthly 23 8 benefit payments and the dividend payable to the retiree in 23 9 the previous calendar year by the applicable percentage as 23 10 determined by this paragraph. The applicable percentage shall 23 11 be the least of the following percentages: 23 12 (1) The percentage representing eighty percent of the 23 13 percentage increase in the consumer price index published in 23 14 the federal register by the federal department of labor, 23 15 bureau of labor statistics, that reflects the percentage 23 16 increase in the consumer price index for the twelve-month 23 17 period ending June 30 of the year that the dividend is to be 23 18 paid. 23 19 (2) The percentage representing the percentage amount the 23 20 actuary has certified, in the annual actuarial valuation of 23 21 the system as of June 30 of the year in which the dividend is 23 22 to be paid, that the fund can absorb without requiring an 23 23 increase in the employer and employee contributions to the 23 24 fund. 23 25 (3) Three percent. 23 26 The dividend determined pursuant to this paragraph shall 23 27 not be used to increase the monthly benefit amount payable. 23 28 Sec. 36. Section 97B.49, subsection 15, paragraph b, Code 23 29 Supplement 1995, is amended to read as follows: 23 30 b. For each active or inactive vested member retiring on 23 31 or after July 1, 1990, and before July 1, 1996, who is at 23 32 least fifty-five years of age and for which the sum of the 23 33 number of years of membership service and prior service and 23 34 the member's age in years as of the member's last birthday 23 35 equals or exceeds ninety-two, a monthly benefit shall be 24 1 computed which is equal to one-twelfth of the same percentage 24 2 of the three-year average covered wage of the member as is 24 3 provided in subsection 5. 24 4 Sec. 37. Section 97B.49, subsection 15, Code Supplement 24 5 1995, is amended by adding the following new paragraphs: 24 6 NEW PARAGRAPH. c. For each active or inactive vested 24 7 member retiring on or after July 1, 1996, and before the 24 8 implementation date provided in paragraph "d", subparagraph 24 9 (2), who is at least fifty-five years of age and for which the 24 10 sum of the number of years of membership service and prior 24 11 service and the member's age in years as of the member's last 24 12 birthday equals or exceeds ninety, a monthly benefit shall be 24 13 computed which is equal to one-twelfth of the same percentage 24 14 of the three-year average covered wage of the member as is 24 15 provided in subsection 5, multiplied by a fraction of years of 24 16 service as is provided in subsection 5. 24 17 NEW PARAGRAPH. d. (1) For each active or inactive vested 24 18 member retiring on or after the implementation date provided 24 19 in subparagraph (2), who is at least fifty-five years of age 24 20 and for which the sum of the number of years of membership 24 21 service and prior service and the member's age in years as of 24 22 the member's last birthday equals or exceeds eighty-eight, a 24 23 monthly benefit shall be computed which is equal to one- 24 24 twelfth of the same percentage of the three-year average 24 25 covered wage of the member as is provided in subsection 5, 24 26 multiplied by a fraction of years of service as is provided in 24 27 subsection 5. 24 28 (2) The department shall implement this paragraph on July 24 29 1, 1997, or on the date that the department determines that 24 30 the most recent annual actuarial valuation of the system 24 31 indicates that the employer and employee contribution rates in 24 32 effect under section 97B.11 can absorb the costs of this 24 33 paragraph, whichever is later. However, until this paragraph 24 34 is implemented, the department shall not pay a dividend 24 35 adjustment pursuant to subsection 13, paragraph "g". 25 1 Sec. 38. Section 97B.49, subsection 16, paragraph e, Code 25 2 Supplement 1995, is amended to read as follows: 25 3 e. Annually, the department of personnel shall actuarially 25 4 determine the cost of the additional benefits provided for 25 5 members covered under paragraph "a" and the cost of the 25 6 additional benefits provided for members covered under 25 7 paragraph "b" as percents of the covered wages of the 25 8 employees covered by this subsection. Sixty percent of the 25 9 cost shall be paid by the employers of employees covered under 25 10 this subsection and forty percent of the cost shall be paid by 25 11 the employees. The employer and employee contributions 25 12 required under this paragraph are in addition to the 25 13 contributions paid undersectionsections 97B.11 and 97B.11A. 25 14 Sec. 39. Section 97B.49, subsection 16, Code Supplement 25 15 1995, is amended by adding the following new paragraph: 25 16 NEW PARAGRAPH. m. For the fiscal year commencing July 1, 25 17 1992, and each succeeding fiscal year, the department of 25 18 public safety shall pay to the department of personnel from 25 19 funds appropriated to the department of public safety, the 25 20 amount necessary to pay the employer share of the cost of the 25 21 additional benefits provided to a fire prevention inspector 25 22 peace officer pursuant to paragraph "d", subparagraph (8). 25 23 Sec. 40. Section 97B.49, Code Supplement 1995, is amended 25 24 by adding the following new subsection: 25 25 NEW SUBSECTION. 17. a. An active or inactive vested 25 26 member, who is or has been employed in both special service 25 27 and regular service, who retires on or after July 1, 1996, 25 28 with four or more completed years of service and at the time 25 29 of retirement is at least fifty-five years of age, may elect 25 30 to receive, in lieu of the receipt of any other benefits under 25 31 this section, a combined monthly retirement allowance equal to 25 32 the sum of the following: 25 33 (1) One-twelfth of an amount equal to the applicable 25 34 percentage multiplier established in subsection 5 of the 25 35 member's three-year average covered wage multiplied by a 26 1 fraction of years of service. The fraction of years of 26 2 service for purposes of this subparagraph shall be the actual 26 3 years of service, not to exceed twenty-two, earned in a 26 4 position described in subsection 16, paragraph "b", for which 26 5 special service contributions were made, divided by twenty- 26 6 two. 26 7 (2) One-twelfth of an amount equal to the applicable 26 8 percentage multiplier established in subsection 5 of the 26 9 member's three-year average covered wage multiplied by a 26 10 fraction of years of service. The fraction of years of 26 11 service for purposes of this subparagraph shall be the actual 26 12 years of service, not to exceed twenty-five, earned in a 26 13 position described in subsection 16, paragraph "a", for which 26 14 special service contributions were made, divided by twenty- 26 15 five. 26 16 (3) One-twelfth of an amount equal to the applicable 26 17 percentage multiplier established in subsection 5 of the 26 18 member's three-year average covered wage multiplied by a 26 19 fraction of years of service. The fraction of years of 26 20 service for purposes of this subparagraph shall be the actual 26 21 years of service, not to exceed thirty, for which regular 26 22 service contributions were made, divided by thirty. However, 26 23 any otherwise applicable age reduction for early retirement 26 24 shall apply to the calculation under this subparagraph. 26 25 In calculating the fractions of years of service under 26 26 subparagraphs (1) and (2), a member shall not receive special 26 27 service credit for years of service for which the member and 26 28 the member's employer did not make the required special 26 29 service contributions to the department. 26 30 b. In calculating the combined monthly retirement 26 31 allowance pursuant to paragraph "a", the sum of the fraction 26 32 of years of service provided in paragraph "a", subparagraphs 26 33 (1), (2), and (3), shall not exceed one. If the sum of the 26 34 fractions of years of service would exceed one, the department 26 35 shall deduct years of service first from the calculation under 27 1 paragraph "a", subparagraph (3), and then from the calculation 27 2 under paragraph "a", subparagraph (2), if necessary, so that 27 3 the sum of the fractions of years of service shall equal one. 27 4 c. (1) In calculating the combined monthly retirement 27 5 allowance pursuant to paragraph "a", for members retiring on 27 6 or after July 1, 1997, whose three-year average covered wage 27 7 exceeds fifty-five thousand dollars, each calculation under 27 8 paragraph "a", subparagraphs (1), (2), and (3) of this 27 9 subsection shall be subject to reduction, calculated in the 27 10 manner provided in subsection 5, paragraph "e". 27 11 (2) In calculating the combined monthly retirement 27 12 allowance pursuant to paragraph "a", and in determining the 27 13 applicable percentage multiplier established in subsection 5, 27 14 the member shall be entitled to an addition in the percentage 27 15 multiplier in accordance with subsection 5, paragraph "f", 27 16 only for those years of service in excess of thirty years. 27 17 Any addition in the percentage multiplier shall be included in 27 18 the calculations required under paragraph "a", subparagraphs 27 19 (1), (2), and (3) of this subsection. 27 20 Sec. 41. Section 97B.50, subsection 2, Code 1995, is 27 21 amended to read as follows: 27 22 2. a. A vested member who retires from the system due to 27 23 disability and commences receiving disability benefits 27 24 pursuant to the federal Social Security Act, 42 U.S.C. } 423 27 25 et seq., and who has not reached the normal retirement date, 27 26 shall receive benefits under section 97B.49 and shall not have 27 27 benefits reduced upon retirement as required under subsection 27 28 1 regardless of whether the member has completed thirty or 27 29 more years of membership service. However, the benefits shall 27 30 be suspended during any period in which the member returns to 27 31 covered employment. This section takes effect July 1, 1990, 27 32 for a member meeting the requirements of this paragraph who 27 33 retired from the system at any time after July 4, 1953. 27 34 Eligible members are entitled to the receipt of retroactive 27 35 adjustment payments back to July 1, 1990, notwithstanding the 28 1 requirements of subsection 4. 28 2 b. A vested member who retires from the system due to 28 3 disability and commences receiving disability benefits 28 4 pursuant to the federal Railroad Retirement Act, 45 U.S.C. } 28 5 231 et seq., and who has not reached the normal retirement 28 6 date, shall receive benefits under section 97B.49 and shall 28 7 not have benefits reduced upon retirement as required under 28 8 subsection 1 regardless of whether the member has completed 28 9 thirty or more years of membership service. However, the 28 10 benefits shall be suspended during any period in which the 28 11 member returns to covered employment. This section takes 28 12 effect July 1, 1990, for a member meeting the requirements of 28 13 this paragraph who retired from the system at any time since 28 14 July 4, 1953. Eligible members are entitled to the receipt of 28 15 retroactive adjustment payments back to July 1, 1990, 28 16 notwithstanding the requirements of subsection 4. 28 17 Sec. 42. Section 97B.51, subsection 3, Code Supplement 28 18 1995, is amended to read as follows: 28 19 3. A member who had elected to take the option stated in 28 20 subsection 1 of this section may, at any time prior to 28 21 retirement, revoke such an election by written notice to the 28 22 department. A member shall not change or revoke an election 28 23 once the first retirement allowance is paid. 28 24 Sec. 43. Section 97B.51, subsection 5, Code Supplement 28 25 1995, is amended to read as follows: 28 26 5. At retirement, a member may designate that upon the 28 27 member's death, a specified amount of money shall be paid to a 28 28 named beneficiary, and the member's monthly retirement 28 29 allowance shall be reduced by an actuarially determined amount 28 30 to provide for the lump sum payment. The amount designated by 28 31 the member must be in thousand dollar increments, and theand 28 32 shall be limited to the amount of the member's accumulated 28 33 contributions. The amount designated shall not lower the 28 34 monthly retirement allowance of the member by more than one- 28 35 half the amount payable under section 97B.49, subsection 1 or 29 1 5. A member may designate a different beneficiary if the 29 2 original named beneficiary predeceases the member. 29 3 Sec. 44. Section 97B.51, subsection 6, Code Supplement 29 4 1995, is amended to read as follows: 29 5 6. A member may elect to receive a decreased retirement 29 6 allowance during the member's lifetime with provision that in 29 7 event of the member's death during the first one hundred 29 8 twenty months of retirement, monthly payments of the member's 29 9 decreased retirement allowance shall be made to the member's 29 10 beneficiary until a combined total of one hundred twenty 29 11 monthly payments have been made to the member and the member's 29 12 beneficiary. When the member designates multiple 29 13 beneficiaries, the present value of the remaining payments 29 14 shall be paid in a lump sum to each beneficiary, either in 29 15 equal shares to the beneficiaries, or if the member specifies 29 16 otherwise in a written request, in the specified proportion. 29 17 A member may designate a different beneficiary if the original 29 18 named beneficiary predeceases the member. 29 19 Sec. 45. Section 97B.52, subsection 1, Code Supplement 29 20 1995, is amended to read as follows: 29 21 1. If a member dies prior to the member's first month of 29 22 entitlement, the accumulated contributions of the member at 29 23 the date of death plus the product of an amount equal to the 29 24 highest year of covered wages of the deceased member and the 29 25 number of years of membership service divided bythirtythe 29 26 applicable denominator shall be paid to the member's 29 27 beneficiary in a lump sum payment. However, a lump sum 29 28 payment made to a beneficiary under this subsection due to the 29 29 death of a member shall not be less than the amount that would 29 30 have been payable on the death of the member on June 30, 1984, 29 31 under this subsection as it appeared in the 1983 Code. 29 32 As used in this subsection, "applicable denominator" means 29 33 the following, based upon the type of membership service in 29 34 which the member served either on the date of death, or if the 29 35 member died after terminating service, on the date of the 30 1 member's last termination of service: 30 2 a. For regular service, the applicable denominator is 30 3 thirty. 30 4 b. For service in a protection occupation, as defined in 30 5 section 97B.49, subsection 16, paragraph "d", the applicable 30 6 denominator is twenty-five. 30 7 c. For service as a sheriff, deputy sheriff, or airport 30 8 fire fighter, as provided in section 97B.49, subsection 16, 30 9 paragraph "b", the applicable denominator is twenty-two. 30 10 Effective July 1, 1978, a method of payment under this 30 11 subsection filed with the department by a member does not 30 12 apply. 30 13 Sec. 46. Section 97B.52, subsection 3, paragraph b, Code 30 14 Supplement 1995, is amended to read as follows: 30 15 b. If a death benefit is due and payable, interest shall 30 16 continue to accumulate through the month preceding the month 30 17 in which payment is made to the designated beneficiary, heirs 30 18 at law, or the estate unless the payment of the death benefit 30 19 is delayed because of a dispute between alleged heirs, in 30 20 which case the benefit due and payable shall be placed in a 30 21 noninterest bearing escrow account until the beneficiary is 30 22 determined in accordance with this section. In order to 30 23 receive the death benefit, the beneficiary, heirs at law, or 30 24 the estate, or any other third-party payee, must apply to the 30 25 department withintwofive years of the member's death. 30 26 The department shall reinstate a designated beneficiary's 30 27 right to receive a death benefit beyond the five-year 30 28 limitation if the designated beneficiary was the member's 30 29 spouse at the time of the member's death and the distribution 30 30 is required or permitted pursuant to Internal Revenue Code 30 31 section 401(a)(9) and the applicable treasury regulations. 30 32 Sec. 47. Section 97B.52, subsection 5, Code Supplement 30 33 1995, is amended to read as follows: 30 34 5. Following written notification to the department, a 30 35 beneficiary of a deceased member may waive current and future 31 1 rights to payments to which the beneficiary would otherwise be 31 2 entitled under sections 97B.51 and this section. Upon receipt 31 3 of the waiver, the department shall payto the estate of the31 4deceased memberthe amount designated to be received bythe31 5 that beneficiary to the member's other surviving beneficiary 31 6 or beneficiaries or to the estate of the deceased member, as 31 7 elected by the beneficiary in the waiver. If the payments 31 8 being waived are payable to the member's estate and an estate 31 9 is not probated, the payments shall be paid to the deceased 31 10 member's surviving spouse, or if there is no surviving spouse, 31 11 to the member's heirs other than the beneficiary who waived 31 12 the payments. 31 13 Sec. 48. Section 97B.52A, Code Supplement 1995, is amended 31 14 by adding the following new subsection: 31 15 NEW SUBSECTION. 3. A member who terminates covered 31 16 employment but maintains an employment relationship with an 31 17 employer that made contributions to the system on the member's 31 18 behalf does not have a bona fide retirement until all 31 19 employment, including employment which is not covered by this 31 20 chapter, with such employer is terminated for at least thirty 31 21 days. In order to receive retirement benefits, the member 31 22 must file a completed application for benefits form with the 31 23 department before returning to any employment with the same 31 24 employer. 31 25 Sec. 49. Section 97B.53, subsection 3, Code Supplement 31 26 1995, is amended to read as follows: 31 27 3. The accumulated contributions of a terminated, vested 31 28 member shall be credited with interest, including interest 31 29 dividends, in the manner provided in section 97B.70. Interest 31 30 and interest dividends shall be credited to the accumulated 31 31 contributions of members who terminate service and 31 32 subsequently become vested in accordance with section 97B.70. 31 33However, the department shall not implement the amendments to31 34this subsection or to subsection 6, unnumbered paragraph 1, or31 35to subsection 7, as enacted in 1994 Iowa Acts, chapter 1183,32 1unless and until the department determines that the most32 2recent annual actuarial valuation of the retirement system32 3indicates that the employer and employee contribution rates in32 4effect under section 97B.11 can absorb the amendments to these32 5provisions of this section and the amendments to section32 697B.41, subsection 12, and section 97B.70, by enacting a new32 7subsection 4, contained in 1994 Iowa Acts, chapter 1183, after32 8meeting the other established priorities of the system, as32 9defined in section 97B.41, subsection 12. Until the32 10amendments are implemented, the department shall continue to32 11implement the provisions of section 97B.53, subsections 3 and32 127, and section 97B.53, subsection 6, unnumbered paragraph 1,32 131993 Code of Iowa.32 14 Sec. 50. Section 97B.53B, subsection 1, paragraph c, 32 15 subparagraph (4), Code 1995, is amended to read as follows: 32 16 (4)A distributionAnnual distributions of less than two 32 17 hundred dollars of taxable income. 32 18 Sec. 51. Section 97B.66, unnumbered paragraph 1, Code 32 19 Supplement 1995, is amended to read as follows: 32 20 A vested or retired member who was a member of the teachers 32 21 insurance and annuity association-college retirement equity 32 22 fund at any time between July 1, 1967 and June 30, 1971 and 32 23 who became a member of the system on July 1, 1971, upon 32 24 submitting verification of service and wages earned during the 32 25 applicable period of service under the teachers insurance and 32 26 annuity association-college retirement equity fund, may make 32 27 employer and employee contributions to the system based upon 32 28 the covered wages of the member and the covered wages and the 32 29 contribution rates in effect for all or a portion of that 32 30 period of service and receive credit for membership service 32 31 under this system equivalent to the applicable period of 32 32 membership service in the teachers insurance and annuity 32 33 association-college retirement equity fund for which the 32 34 contributions have been made. In addition, a member making 32 35 employer and employee contributions because of membership in 33 1 the teachers insurance and annuity association-college 33 2 retirement equity fund under this section who was a member of 33 3 the system on June 30, 1967 and withdrew the member's 33 4 accumulated contributions because of membership on July 1, 33 5 1967 in the teachers insurance and annuity association-college 33 6 retirement equity fund, may make employee contributions to the 33 7 system for all or a portion of the period of service under the 33 8 system prior to July 1, 1967. A member making contributions 33 9 pursuant to this section may make the contributions either for 33 10 the entire applicable period of service, or, effective upon33 11the date that the department determines that the amendments to33 12this paragraph and unnumbered paragraph 2 contained in 199433 13Iowa Acts, chapter 1183, shall be implemented,for portions of 33 14 the period of service, and if contributions are made for 33 15 portions of the period of service, the contributions shall be 33 16 in increments of one or moreyears, as long as the increments33 17represent full years and not a portion of a yearcalendar 33 18 quarters.However, the department shall not implement the33 19amendments to this paragraph or unnumbered paragraph 2, as33 20enacted in 1994 Iowa Acts, chapter 1183, unless and until the33 21department determines that the most recent annual actuarial33 22valuation of the retirement system indicates that the employer33 23and employee contribution rates in effect under section 97B.1133 24can absorb the amendments to this paragraph and unnumbered33 25paragraph 2 and to section 97B.72, unnumbered paragraphs 1 and33 262, section 97B.72A, subsection 1, unnumbered paragraph 1,33 27section 97B.73A, unnumbered paragraph 1, and section 97B.74,33 28unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,33 29chapter 1183, after meeting the other established priority of33 30the system. Until the amendments are implemented, the33 31department shall continue to implement the provisions of33 32section 97B.66, unnumbered paragraphs 1 and 2, Code Supplement33 331993. As used in this section, unless the context otherwise33 34requires, "other established priority of the system" means33 35that commencing January 1 following the most recent annual34 1actuarial valuation of the system, the department has34 2increased the covered wage limitation from the previous year34 3by three thousand dollars, in accordance with section 97B.41,34 4subsection 20, paragraph "b", subparagraph (11).34 5 Sec. 52. Section 97B.66, unnumbered paragraph 2, Code 34 6 Supplement 1995, is amended to read as follows: 34 7 The contributions paid by the vested or retired member 34 8 shall be equal to the accumulated contributions as defined in 34 9 section 97B.41, subsection 2, by the member for the applicable 34 10 period of service, and the employer contribution for the 34 11 applicable period of service under the teachers insurance and 34 12 annuity association-college retirement equity fund, that would 34 13 have been or had been contributed by the vested or retired 34 14 member and the employer, if applicable, plus interest on the 34 15 contributions that would have accrued for the applicable 34 16 period from the date the previous applicable period of service 34 17 commenced under this system or from the date the service of 34 18 the member in the teachers insurance and annuity association- 34 19 college retirement equity fund commenced to the date of 34 20 payment of the contributions by the memberequal to two34 21percent plus the interest dividend rate applicable for each34 22yearas provided in section 97B.70. 34 23 Sec. 53. Section 97B.66, unnumbered paragraph 3, Code 34 24 Supplement 1995, is amended to read as follows: 34 25 However,effective January 1, 1994,the department shall 34 26 ensure that the member, in exercising an option provided in 34 27 this section, does not exceed the amount of annual additions 34 28 to a member's account permitted pursuant to section 415 of the 34 29 federal Internal Revenue Code. 34 30 Sec. 54. Section 97B.68, subsection 1, Code 1995, is 34 31 amended to read as follows: 34 32 1. Effective July 1,19881996, a person who is a member 34 33 of the federal civil service retirement program or the federal 34 34 employee's retirement system is not eligible for membership in 34 35 the Iowa public employees' retirement system for the same 35 1 position, and this chapter does not apply to that employee. 35 2 An employee whose membership in the federal civil service 35 3 retirement program or the federal employee's retirement system 35 4 is subsequently terminated shall immediately notify the 35 5 employee's employer and the department of personnel of that 35 6 fact, and the employee shall become subject to this chapter on 35 7 the date the notification is received by the department. 35 8 Sec. 55. Section 97B.68, Code 1995, is amended by adding 35 9 the following new subsection: 35 10 NEW SUBSECTION. 3. Effective July 1, 1996, an employee 35 11 who participates in the federal civil service retirement 35 12 program or the federal employee's retirement system may be 35 13 covered under this chapter if otherwise eligible. The 35 14 employee shall not be covered under this chapter, however, 35 15 unless the employee is not credited for service in the federal 35 16 civil service retirement system or the federal employee's 35 17 retirement system for the position to be covered under this 35 18 chapter. This subsection shall not be construed to permit any 35 19 employer to contribute on behalf of an employee for the same 35 20 position and the same period of service to both the Iowa 35 21 public employees' retirement system and either the federal 35 22 civil service retirement program or the federal employee's 35 23 retirement system. 35 24 Sec. 56. Section 97B.70, Code Supplement 1995, is amended 35 25 to read as follows: 35 26 97B.70 INTEREST AND DIVIDENDS TO MEMBERS. 35 27 1.InterestFor calendar years prior to January 1, 1997, 35 28 interest at two percent per annum and interest dividends 35 29 declared by the department shall be credited to the member's 35 30 contributions and the employer's contributions to become part 35 31 of the accumulated contributions thereby. 35 321.a. The average rate of interest earned shall be 35 33 determined upon the following basis: 35 34a.(1) Investment income shall include interest and cash 35 35 dividends on stock. 36 1b.(2) Investment income shall be accounted for on an 36 2 accrual basis. 36 3c.(3) Capital gains and losses, realized or unrealized, 36 4 shall not be included in investment income. 36 5d.(4) Mean assets shall include fixed income investments 36 6 valued at cost or on an amortized basis, and common stocks at 36 7 market values or cost, whichever is lower. 36 8e.(5) The average rate of earned interest shall be the 36 9 quotient of the investment income and the mean assets of the 36 10 retirement fund. 36 112.b. The interest dividend shall be determined within 36 12 sixty days after the end of each calendar year as follows: 36 13 The dividend rate for a calendar year shall be the excess 36 14 of the average rate of interest earned for the year over the 36 15 statutory two percent rate plus twenty-five hundredths of one 36 16 percent. The average rate of interest earned and the interest 36 17 dividend rate in percent shall be calculated to the nearest 36 18 one hundredth, that is, to two decimal places. Interest and 36 19 interest dividends calculated pursuant to this subsection 36 20 shall be compounded annually. 36 21 2. For calendar years beginning January 1, 1997, a per 36 22 annum interest rate at one percent above the interest rate on 36 23 one-year certificates of deposit shall be credited to the 36 24 member's contributions and the employer's contributions to 36 25 become part of the accumulated contributions. For purposes of 36 26 this subsection, the interest rate on one-year certificates of 36 27 deposit shall be determined by the department based on the 36 28 average rate for such certificates of deposit as of the first 36 29 business day of each year as published in a publication of 36 30 general acceptance in the business community. The per annum 36 31 interest rate shall be credited on a quarterly basis by 36 32 applying one-quarter of the annual interest rate to the sum of 36 33 the accumulated contributions as of the end of the previous 36 34 calendar quarter. 36 35 3. Interest and interest dividends shall be credited to 37 1 the contributions of active members and inactive vested 37 2 members until the first of the month coinciding with or next 37 3 following the member's retirement date. 37 4 4.Effective upon the date that the department determines37 5that this subsection shall be implemented, interestInterest 37 6 and interest dividends shall be credited to the contributions 37 7 of a person who leaves the contributions in the retirement 37 8 fund upon termination from covered employment prior to 37 9 achieving vested status, but who subsequently achieves vested 37 10 status. The interest and interest dividends shall be credited 37 11 to the contributions commencingeitheruponthe date that the37 12department determines that this subsection shall be37 13implemented, orthe date on which the person becomes a vested 37 14 member, whichever is later. Interest and interest dividends 37 15 shall cease upon the first of the month coinciding with or 37 16 next following the person's retirement date. If the 37 17 department no longer maintains the accumulated contribution 37 18 account of the person pursuant to section 97B.53, but the 37 19 person submits satisfactory proof to the department that the 37 20 person did make the contributions, the department shall credit 37 21 interest and interest dividends in the manner provided in this 37 22 subsection.However, the department shall not implement this37 23subsection, unless and until the department determines that37 24the most recent annual actuarial valuation of the retirement37 25system indicates that the employer and employee contribution37 26rates in effect under section 97B.11 can absorb the enactment37 27of this subsection and the amendments to section 97B.41,37 28subsection 12, section 97B.53, subsections 3 and 7, and37 29section 97B.53, subsection 6, unnumbered paragraph 1,37 30contained in 1994 Iowa Acts, chapter 1183, after meeting the37 31other established priorities of the system, as defined in37 32section 97B.41, subsection 12.37 33 Sec. 57. Section 97B.72, unnumbered paragraphs 1 and 2, 37 34 Code Supplement 1995, are amended to read as follows: 37 35 Persons who are members of the Seventy-first General 38 1 Assembly or a succeeding general assembly who submit proof to 38 2 the department of membership in the general assembly during 38 3 any period beginning July 4, 1953, may make contributions to 38 4 the system for all or a portion of the period of service in 38 5 the general assembly, and receive credit for the applicable 38 6 period for which contributions are made. The contributions 38 7 made by the member shall be equal to the accumulated 38 8 contributions as defined in section 97B.41, subsection 2, 38 9 which would have been made if the member of the general 38 10 assembly had been a member of the system during the applicable 38 11 period. The proof of membership in the general assembly and 38 12 payment of accumulated contributions shall be transmitted to 38 13 the department. A member making contributions pursuant to 38 14 this section may make the contributions either for the entire 38 15 applicable period of service, or, effective upon the date that38 16the department determines that the amendments to this38 17paragraph and unnumbered paragraph 2 contained in 1994 Iowa38 18Acts, chapter 1183, shall be implemented,for portions of the 38 19 period of service, and if contributions are made for portions 38 20 of the period of service, the contributions shall be in 38 21 increments of one or moreyears, as long as the increments38 22represent full years and not a portion of a yearcalendar 38 23 quarters.However, the department shall not implement the38 24amendments to this paragraph or unnumbered paragraph 2, as38 25enacted in 1994 Iowa Acts, chapter 1183, unless and until the38 26department determines that the most recent annual actuarial38 27valuation of the retirement system indicates that the employer38 28and employee contribution rates in effect under section 97B.1138 29can absorb the amendments to this paragraph and unnumbered38 30paragraph 2 and to section 97B.66, unnumbered paragraphs 1 and38 312, section 97B.72A, subsection 1, unnumbered paragraph 1,38 32section 97B.73A, unnumbered paragraph 1, and section 97B.74,38 33unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,38 34chapter 1183, after meeting the other established priority of38 35the system, as defined in section 97B.66. Until the39 1amendments are implemented, the department shall continue to39 2implement the provisions of section 97B.72, unnumbered39 3paragraphs 1 and 2, Code Supplement 1993.39 4 There is appropriated from moneys available to the general 39 5 assembly under section 2.12 an amount sufficient to pay the 39 6 contributions of the employer based on the period of service 39 7 for which the members have paid accumulated contributions in 39 8 an amount equal to the contributions which would have been 39 9 made if the members of the general assembly who made employee 39 10 contributions had been members of the system during the 39 11 applicable period of service in the general assembly plustwo39 12percentinterestplusand interest dividends at the rate 39 13 provided in section 97B.70 for all completed calendar years, 39 14 and for any completed calendar year for which the interest 39 15 dividend has not been declared and for completed months of 39 16 partially completed calendar yearsat two percent interest39 17plus the interest dividend rate calculated for the previous39 18year, compoundedannually, from the end of the calendar year39 19in which contribution was made to the first day of the month39 20of such dateas provided in section 97B.70. 39 21 Sec. 58. Section 97B.72, unnumbered paragraph 3, Code 39 22 Supplement 1995, is amended to read as follows: 39 23 However,effective January 1, 1994,the department shall 39 24 ensure that the member, in exercising an option provided in 39 25 this section, does not exceed the amount of annual additions 39 26 to a member's account permitted pursuant to section 415 of the 39 27 federal Internal Revenue Code. 39 28 Sec. 59. Section 97B.72A, subsection 1, Code Supplement 39 29 1995, is amended to read as follows: 39 30 1.An active orA vested or retired member of the system 39 31 who was a member of the general assembly prior to July 1, 39 32 1988, may make contributions to the system for all or a 39 33 portion of the period of service in the general assembly. The 39 34 contributions made by the member shall be equal to the 39 35 accumulated contributions as defined in section 97B.41, 40 1 subsection 2, which would have been made if the member of the 40 2 general assembly had been a member of the system during the 40 3 applicable period of service in the general assembly. A 40 4 member making contributions pursuant to this section may make 40 5 the contributions either for the entire applicable period of 40 6 service, or for portions of the period of service, and,40 7effective upon the date that the department determines that40 8the amendments to this paragraph contained in 1994 Iowa Acts,40 9chapter 1183, shall be implemented,if contributions are made 40 10 for portions of the period of service, the contributions shall 40 11 be in increments of one or moreyears, as long as the40 12increments represent full years and not a portion of a year40 13 calendar quarters. The member of the system shall submit 40 14 proof to the department of membership in the general assembly. 40 15 The department shall credit the member with the period of 40 16 membership service for which contributions are made.However,40 17the department shall not implement the amendments to this40 18paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless40 19and until the department determines that the most recent40 20annual actuarial valuation of the retirement system indicates40 21that the employer and employee contribution rates in effect40 22under section 97B.11 can absorb the amendments to this40 23paragraph and to section 97B.66, unnumbered paragraphs 1 and40 242, section 97B.72, unnumbered paragraphs 1 and 2, section40 2597B.73A, unnumbered paragraph 1, and section 97B.74,40 26unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,40 27chapter 1183, after meeting the other established priority of40 28the system, as defined in section 97B.66. Until the40 29amendments are implemented, the department shall continue to40 30implement the provisions of section 97B.72A, subsection 1,40 31unnumbered paragraph 1, Code Supplement 1993.40 32 There is appropriated from the general fund of the state to 40 33 the department an amount sufficient to pay the contributions 40 34 of the employer based on the period of service of members of 40 35 the general assembly for which the member paid accumulated 41 1 contributions under this section. The amount appropriated is 41 2 equal to the employer contributions which would have been made 41 3 if the members of the system who made employee contributions 41 4 had been members of the system during the period for which 41 5 they made employee contributions plustwo percentinterest 41 6plus the interest dividend rate applicableat the rate 41 7 provided in section 97B.70 for each year compoundedannually41 8 as provided in section 97B.70. 41 9 Sec. 60. Section 97B.72A, subsection 2, Code Supplement 41 10 1995, is amended to read as follows: 41 11 2.Effective January 1, 1994, howeverHowever, the 41 12 department shall ensure that the member, in exercising an 41 13 option provided in this section, does not exceed the amount of 41 14 annual additions to a member's account permitted pursuant to 41 15 section 415 of the federal Internal Revenue Code. 41 16 Sec. 61. Section 97B.73, unnumbered paragraph 1, Code 41 17 1995, is amended to read as follows: 41 18 A vested or retired member who was in public employment 41 19 comparable to employment covered under this chapter in another 41 20 state or in the federal government, or who was a member of 41 21 another public retirement system in this state, including but 41 22 not limited to the teachers insurance annuity association- 41 23 college retirement equities fund, but who was not retired 41 24 under that system, upon submitting verification of membership 41 25 and service in the other public system to the department, 41 26 including proof that the member has no further claim upon a 41 27 retirement benefit from that other public system, may make 41 28 employer and employee contributions to the system either for 41 29 the entire period of service in the other public system, or 41 30 for partial service in the other public system in increments 41 31 of one or moreyears, as long as the increments represent full41 32years and not a portion of a yearcalendar quarters.The41 33member may also make one lump sum contribution to the system41 34which represents the entire period of service in the other41 35public system, even if the period of time exceeds one year or42 1includes a portion of a year.If the member wishes to 42 2 transfer only a portion of the service value of another public 42 3 system to this system and the other public system allows a 42 4 partial withdrawal of a member's system credits, the member 42 5 shall receive credit for membership service in this system 42 6 equivalent to thenumber of yearsperiod of service 42 7 transferred from the other public system. The contribution 42 8 payable shall be based upon the member's covered wages for the 42 9 most recent full calendar year at the applicable rates in 42 10 effect for that calendar year under sections 97B.11 and 97B.49 42 11 and multiplied by the member's years of service in other 42 12 public employment. If the member's most recent covered wages 42 13 were earned prior to the most recent calendar year, the 42 14 member's covered wages shall be adjusted by the department by 42 15 an inflation factor to reflect changes in the economy since 42 16 the covered wages were earned. 42 17 Sec. 62. Section 97B.73, unnumbered paragraph 6, Code 42 18 1995, is amended to read as follows: 42 19 However,effective January 1, 1994,the department shall 42 20 ensure that the member, in exercising an option provided in 42 21 this section, does not exceed the amount of annual additions 42 22 to a member's account permitted pursuant to section 415 of the 42 23 federal Internal Revenue Code. 42 24 Sec. 63. Section 97B.73A, unnumbered paragraph 1, Code 42 25 Supplement 1995, is amended to read as follows: 42 26 A part-time county attorney may elect in writing to the 42 27 department to make employee contributions to the system for 42 28 the county attorney's previous service as a county attorney 42 29 and receive credit for membership service in the system for 42 30 the applicable period of service as a part-time county 42 31 attorney for which employee contributions are made. The 42 32 contributions paid by the member shall be equal to the 42 33 accumulated contributions, as defined in section 97B.41, 42 34 subsection 2, for the applicable period of membership service. 42 35 A member making contributions pursuant to this section may 43 1 make the contributions either for the entire applicable period 43 2 of service, or, effective upon the date that the department43 3determines that the amendments to this paragraph contained in43 41994 Iowa Acts, chapter 1183, shall be implemented,for 43 5 portions of the period of service, and if contributions are 43 6 made for portions of the period of service, the contributions 43 7 shall be in increments of one or moreyears, as long as the43 8increments represent full years and not a portion of a year43 9 calendar quarters. A member who elects to make contributions 43 10 under this section shall notify the applicable county board of 43 11 supervisors of the member's election, and the county board of 43 12 supervisors shall pay to the department the employer 43 13 contributions that would have been contributed by the employer 43 14 under section 97B.11 plus interest on the contributions that 43 15 would have accrued if the county attorney had been a member of 43 16 the system for the applicable period of service.However, the43 17department shall not implement the amendments to this43 18paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless43 19and until the department determines that the most recent43 20annual actuarial valuation of the retirement system indicates43 21that the employer and employee contribution rates in effect43 22under section 97B.11 can absorb the amendments to this43 23paragraph and to section 97B.66, unnumbered paragraphs 1 and43 242, section 97B.72, unnumbered paragraphs 1 and 2, section43 2597B.72A, subsection 1, unnumbered paragraph 1, and section43 2697B.74, unnumbered paragraphs 1 and 2, contained in 1994 Iowa43 27Acts, chapter 1183, after meeting the other established43 28priority of the system, as defined in section 97B.66. Until43 29the amendments are implemented, the department shall continue43 30to implement the provisions of section 97B.73A, unnumbered43 31paragraph 1, Code Supplement 1993.43 32 Sec. 64. Section 97B.73A, unnumbered paragraph 3, Code 43 33 Supplement 1995, is amended to read as follows: 43 34 However,effective January 1, 1994,the department shall 43 35 ensure that the member, in exercising an option provided in 44 1 this section, does not exceed the amount of annual additions 44 2 to a member's account permitted pursuant to section 415 of the 44 3 federal Internal Revenue Code. 44 4 Sec. 65. Section 97B.74, unnumbered paragraphs 1 and 2, 44 5 Code Supplement 1995, are amended to read as follows: 44 6An active,A vested,or retired member who was a member of 44 7 the system at any time on or after July 4, 1953, and who 44 8 received a refund of the member's contributions for that 44 9 period of membership service, may elect in writing to the 44 10 department to make contributions to the system for all or a 44 11 portion of the period of membership service for which a refund 44 12 of contributions was made, and receive credit for the period 44 13 of membership service for which contributions are made. The 44 14 contributions repaid by the member for such service shall be 44 15 equal to the accumulated contributions, as defined in section 44 16 97B.41, subsection 2, received by the member for the 44 17 applicable period of membership service plus interest on the 44 18 accumulated contributions for the applicable period from the 44 19 date of receipt by the member to the date of repaymentequal44 20to two percent plusat the interestdividendrate provided in 44 21 section 97B.70 applicable for each year compoundedannuallyas 44 22 provided in section 97B.70. 44 23An active member must have at least one quarter's44 24reportable wages on file and have membership service,44 25including that period of membership service for which a refund44 26of contributions was made, sufficient to give the member44 27vested status.A member making contributions pursuant to this 44 28 section may make the contributions either for the entire 44 29 applicable period of service, or, effective upon the date that44 30the department determines that the amendments to this44 31paragraph and unnumbered paragraph 1 contained in 1994 Iowa44 32Acts, chapter 1183, shall be implemented,for portions of the 44 33 period of service, and if contributions are made for portions 44 34 of the period of service, the contributions shall be in 44 35 increments of one or moreyears, as long as the increments45 1represent full years and not a portion of a yearcalendar 45 2 quarters.However, the department shall not implement the45 3amendments to this paragraph or unnumbered paragraph 1, as45 4enacted in 1994 Iowa Acts, chapter 1183, unless and until the45 5department determines that the most recent annual actuarial45 6valuation of the retirement system indicates that the employer45 7and employee contribution rates in effect under section 97B.1145 8can absorb the amendments to this paragraph and to unnumbered45 9paragraph 1 and to section 97B.66, unnumbered paragraphs 1 and45 102, section 97B.72, unnumbered paragraphs 1 and 2, section45 1197B.72A, subsection 1, unnumbered paragraph 1, and section45 1297B.73A, unnumbered paragraph 1, contained in 1994 Iowa Acts,45 13chapter 1183, after meeting the other established priority of45 14the system, as defined in section 97B.66. Until the45 15amendments are implemented, the department shall continue to45 16implement the provisions of section 97B.74, unnumbered45 17paragraphs 1 and 2, Code Supplement 1993.45 18 Sec. 66. Section 97B.74, unnumbered paragraph 4, Code 45 19 Supplement 1995, is amended by striking the unnumbered 45 20 paragraph. 45 21 Sec. 67. Section 97B.80, unnumbered paragraph 1, Code 45 22 1995, is amended to read as follows: 45 23 Effective July 1, 1992, a vested or retired member, who at 45 24 any time served on active duty in the armed forces of the 45 25 United States, upon submitting verification of the dates of 45 26 the active duty service, may make employer and employee 45 27 contributions to the system based upon the member's covered 45 28 wages for the most recent full calendar year in which the 45 29 member had reportable wages at the applicable rates in effect 45 30 for that year under sections 97B.11 and 97B.49, for all or a 45 31 portion of the period of time of the active duty service, in 45 32 increments ofno greater than one year and not less thanone 45 33 or more calendarquarterquarters, and receive credit for 45 34 membership service and prior service for the period of time 45 35 for which the contributions are made.However, the member may46 1not make contributions in an increment of less than one year46 2more than once. The member may also make one lump sum46 3contribution to the system which represents the period of time46 4of the active duty service, even if the period of time exceeds46 5one year.If the member's most recent covered wages were 46 6 earned prior to the most recent calendar year, the member's 46 7 covered wages shall be adjusted by the department by an 46 8 inflation factor to reflect changes in the economy. The 46 9 department shall adjust benefits for a six-month period prior 46 10 to the date the member pays contributions under this section 46 11 if the member is receiving a retirement allowance at the time 46 12 the contribution payment is made. Verification of active duty 46 13 service and payment of contributions shall be made to the 46 14 department. However, a member is not eligible to make 46 15 contributions under this section if the member is receiving, 46 16 is eligible to receive, or may in the future be eligible to 46 17 receive retirement pay from the United States government for 46 18 active duty in the armed forces, except for retirement pay 46 19 granted by the United States government under retired pay for 46 20 nonregular service (10 U.S.C. } 1331, et seq.). A member 46 21 receiving retired pay for nonregular service who makes 46 22 contributions under this section shall provide information 46 23 required by the department documenting time periods covered 46 24 under retired pay for nonregular service. 46 25 Sec. 68. Section 97B.80, unnumbered paragraph 3, Code 46 26 1995, is amended to read as follows: 46 27 However,effective January 1, 1994,the department shall 46 28 ensure that the member, in exercising an option provided in 46 29 this section, does not exceed the amount of annual additions 46 30 to a member's account permitted pursuant to section 415 of the 46 31 federal Internal Revenue Code. 46 32 Sec. 69. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – 46 33 DEVELOPMENT OF PROPOSALS FOR ESTABLISHING A DEFINED 46 34 CONTRIBUTION OPTION AND FOR CONVERTING THE SYSTEM INTO A 46 35 DEFINED CONTRIBUTION PLAN – REPORT. The Iowa public 47 1 employees' retirement system division, in consultation with 47 2 the public retirement systems committee established in section 47 3 97D.4, shall develop a proposal concerning various 47 4 alternatives for establishing a defined contribution option 47 5 for members of the Iowa public employees' retirement system in 47 6 addition to the current defined benefit plan and a proposal 47 7 concerning various alternatives for converting the Iowa public 47 8 employees' retirement system into a defined contribution plan 47 9 by terminating the current defined benefit plan and 47 10 establishing a defined contribution plan. On or before 47 11 September 1, 1997, the Iowa public employees' retirement 47 12 system division shall file a report with the legislative 47 13 service bureau, for distribution to the public retirement 47 14 systems committee, which contains proposals for establishing a 47 15 defined contribution option and for converting the Iowa public 47 16 employees' retirement system into a defined contribution plan. 47 17 The report shall also contain actuarial information concerning 47 18 the costs of the proposals. 47 19 Sec. 70. STUDY OF PROPOSALS CONCERNING CONTRIBUTION RATES 47 20 – IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – REPORT. The 47 21 Iowa public employees' retirement system division, in 47 22 consultation with the public retirement systems committee 47 23 established in section 97D.4, shall study proposals concerning 47 24 various options for establishing equitable contribution rates 47 25 for both employers and employees covered by the Iowa public 47 26 employees' retirement system. In conducting the study, the 47 27 division shall consider a proposal to provide that the 47 28 employee and employer contribution rate be equal. On or 47 29 before September 1, 1997, the Iowa public employees' 47 30 retirement system division shall file a report with the 47 31 legislative service bureau, for distribution to the public 47 32 retirement systems committee, which contains the results of 47 33 the study and any proposal, or proposals, for establishing 47 34 employer and employee contribution rates. The report shall 47 35 also contain actuarial information concerning the costs of the 48 1 proposal or proposals. 48 2 Sec. 71. STUDY OF PROPOSALS REGARDING DISABILITY 48 3 RETIREMENT BENEFITS – IOWA PUBLIC EMPLOYEES' RETIREMENT 48 4 SYSTEM – REPORT. The Iowa public employees' retirement 48 5 system division, in consultation with the public retirement 48 6 systems committee established in section 97D.4, shall study 48 7 proposals concerning various options for establishing 48 8 disability retirement benefits for employees, or certain 48 9 employees, covered by the Iowa public employees' retirement 48 10 system. In conducting the study, the division shall consider 48 11 a proposal to provide disability retirement benefits for 48 12 sheriffs, deputy sheriffs, airport fire fighters, or members 48 13 of a protection occupation in a manner similar to the 48 14 disability retirement benefits provided under chapters 97A and 48 15 411. On or before September 1, 1997, the Iowa public 48 16 employees' retirement system division shall file a report with 48 17 the legislative service bureau, for distribution to the public 48 18 retirement systems committee, which contains the results of 48 19 the study and any proposal, or proposals, for establishing 48 20 disability retirement benefits. The report shall also contain 48 21 actuarial information concerning the costs of the proposal or 48 22 proposals. 48 23 Sec. 72. STUDY OF PROPOSALS CONCERNING INCLUSION OF 48 24 MEMBERS IN A PROTECTION OCCUPATION – IOWA PUBLIC EMPLOYEES' 48 25 RETIREMENT SYSTEM – REPORT. The Iowa public employees' 48 26 retirement system division, in consultation with the public 48 27 retirement systems committee established in section 97D.4, 48 28 shall study proposals concerning various options for 48 29 determining additional occupations of members who should be 48 30 eligible for inclusion as members in a protection occupation 48 31 as provided in section 97B.49, subsection 16, paragraph "d". 48 32 On or before September 1, 1997, the Iowa public employees' 48 33 retirement system division shall file a report with the 48 34 legislative service bureau, for distribution to the public 48 35 retirement systems committee, which contains the results of 49 1 the study and any proposal, or proposals, for establishing 49 2 which occupations should qualify for inclusion in a protection 49 3 occupation. The report shall also contain actuarial 49 4 information concerning the costs of the proposal or proposals. 49 5 Sec. 73. STUDY CONCERNING ORGANIZATIONAL STRUCTURE OF THE 49 6 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. The public 49 7 retirement systems committee established in section 97D.4 49 8 shall study the feasibility of changing the organizational 49 9 structure and governance of the Iowa public employees' 49 10 retirement system. The committee shall consider the 49 11 recommendations of the Buck Consultants Inc. report submitted 49 12 to the Iowa public employees' retirement system in 1995, the 49 13 Iowa public employees' retirement system division, and the 49 14 department of personnel. The public retirement systems 49 15 committee shall submit a report to the general assembly on or 49 16 before January 31, 1998, containing its findings and 49 17 recommendations. 49 18 Sec. 74. COMPREHENSIVE EXAMINATION OF PLAN DESIGN FOR THE 49 19 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – REPORT. The Iowa 49 20 public employees' retirement system division, in consultation 49 21 with the public retirement systems committee established in 49 22 section 97D.4, shall conduct a comprehensive examination of 49 23 the plan design of the Iowa public employees' retirement 49 24 system, pursuant to the principles established in chapter 97D, 49 25 and make recommendations for plan improvement. 49 26 In conducting the examination, the division shall consider 49 27 and develop recommendations concerning establishment of the 49 28 following: 49 29 1. Objective actuarial standards to determine the funded 49 30 status of the system, including recommended minimum standards 49 31 to determine whether the system is fully funded, and to 49 32 develop safeguards to ensure that the system remains fully 49 33 funded based on those standards. 49 34 2. Equitable contribution rates for both employers and 49 35 employees, to include consideration of proposals to provide 50 1 for equal employer and employee contribution rates and 50 2 proposals to increase or decrease contribution rates based on 50 3 the funded status of the system. 50 4 3. Establishing a schedule for implementing the 50 5 recommendations. 50 6 On or before September 1, 1997, the Iowa public employees' 50 7 retirement system division shall file a report with the 50 8 legislative service bureau, for distribution to the public 50 9 retirement systems committee, which contains the results of 50 10 the comprehensive examination and any proposal, or proposals, 50 11 for improving plan design of the Iowa public employees' 50 12 retirement system. The report shall also contain actuarial 50 13 information concerning the costs of the proposal or proposals. 50 14 DIVISION II 50 15 TEACHERS' PENSION AND ANNUITY RETIREMENT SYSTEMS 50 16 Sec. 75. Section 12B.10, subsection 6, Code 1995, is 50 17 amended by adding the following new paragraph e and 50 18 relettering the subsequent paragraphs: 50 19 NEW PARAGRAPH. e. A pension and annuity retirement system 50 20 governed by chapter 294. 50 21 Sec. 76. Section 12B.10A, subsection 6, Code 1995, is 50 22 amended by adding the following new paragraph e and 50 23 relettering the subsequent paragraphs: 50 24 NEW PARAGRAPH. e. A pension and annuity retirement system 50 25 governed by chapter 294. 50 26 Sec. 77. Section 12B.10B, subsection 3, Code 1995, is 50 27 amended by adding the following new paragraph e and 50 28 relettering the subsequent paragraphs: 50 29 NEW PARAGRAPH. e. A pension and annuity retirement system 50 30 governed by chapter 294. 50 31 Sec. 78. Section 12B.10C, Code 1995, is amended by adding 50 32 the following new subsection 4 and renumbering the subsequent 50 33 subsections: 50 34 NEW SUBSECTION. 4. A pension and annuity retirement 50 35 system governed by chapter 294. 51 1 Sec. 79. NEW SECTION. 294.10B RIGHTS NOT TRANSFERABLE – 51 2 NOT SUBJECT TO LEGAL PROCESS. 51 3 The right of any person to any future payment under a 51 4 pension and annuity retirement system established in this 51 5 chapter shall not be transferable or assignable, at law or in 51 6 equity, and shall not be subject to execution, levy, 51 7 attachment, garnishment, or other legal process, or to the 51 8 operation of any bankruptcy or insolvency law, except for the 51 9 purposes of enforcing child, spousal, or medical support 51 10 obligations, or marital property orders. For the purposes of 51 11 enforcing child, spousal, or medical support obligations, the 51 12 garnishment or attachment of or the execution against benefits 51 13 due a person under such a retirement system shall not exceed 51 14 the amount specified in 15 U.S.C. } 1673(b). 51 15 DIVISION III 51 16 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 51 17 ACCIDENT, AND DISABILITY SYSTEM 51 18 Sec. 80. Section 97A.5, subsection 9, Code 1995, is 51 19 amended to read as follows: 51 20 9. DUTIES OFCOMMISSIONER OF INSURANCEACTUARY. Thestate51 21commissioner of insuranceactuary hired by the board of 51 22 trustees shall be the technical advisor of the board of 51 23 trustees on matters regarding the operation of the funds 51 24 created by the provisions of this chapter and shall perform 51 25 such other duties as are required in connection therewith. 51 26 Sec. 81. Section 97A.5, subsections 10 through 12, Code 51 27 1995, are amended to read as follows: 51 28 10. TABLES – RATES.Immediately after the establishment51 29of this system, the state commissioner of insuranceThe 51 30 actuary hired by the board of trustees shall make such 51 31 investigation of anticipated interest earnings and of the 51 32 mortality, service, and compensation experience of the members 51 33 of the system as the actuaryshall recommend and the board of51 34trustees shall authorizerecommends, and on the basis ofsuch51 35 the investigation, theactuary shall recommend for adoption by52 1theboard of trusteessuchshall adopt the tables andsuchthe 52 2 rates as are required in subsection 11 of this section. The 52 3 board of trustees shall adopt the rate of interest and tables, 52 4 and certify rates of contributions to be used by the system. 52 5 11. ACTUARIAL INVESTIGATION.In the year 1952, and atAt 52 6 least once in each two-year periodthereafter,the state52 7commissioner of insurancethe actuary hired by the board of 52 8 trustees shall make an actuarial investigation in the 52 9 mortality, service, and compensation experience of the members 52 10 and beneficiaries of the system, and the interest and other 52 11 earnings on the moneys and other assets of the system, and 52 12 shall make a valuation of the assets and liabilities of the 52 13 funds of the system, and taking into account the results of 52 14suchthe investigation and valuation, the board of trustees 52 15 shall: 52 16 a. Adopt for the system such interest rate, mortality and 52 17 other tables as shall be deemed necessary; 52 18 b. Certify the rates of contribution payable by the state 52 19 of Iowa in accordance with section 97A.8. 52 20 12. VALUATION. On the basis ofsuchthe rate of interest 52 21 andsuchtablesasadopted by the board of trusteesshall52 22adopt,the state commissioner of insurancethe actuary hired 52 23 by the board of trustees shall make an annual valuation of the 52 24 assets and liabilities of the funds of the system created by 52 25 this chapter. 52 26 Sec. 82. Section 97A.5, Code 1995, is amended by adding 52 27 the following new subsections: 52 28 NEW SUBSECTION. 14. INVESTMENT CONTRACTS. The board of 52 29 trustees may execute contracts and agreements with investment 52 30 advisors, consultants, and investment management and benefit 52 31 consultant firms in the administration of the funds 52 32 established in section 97A.8. 52 33 NEW SUBSECTION. 15. LIABILITY. The department, the board 52 34 of trustees, and the treasurer of state are not personally 52 35 liable for claims based upon an act or omission of the person 53 1 performed in the discharge of the person's duties under this 53 2 chapter, even if those actions or omissions violate the 53 3 standards established in section 97A.7, except for acts or 53 4 omissions which involve malicious or wanton misconduct. 53 5 Sec. 83. Section 97A.6, subsection 1, paragraph a, Code 53 6 1995, is amended to read as follows: 53 7 a. Any member in service may retire upon the member's 53 8 written application to the board of trustees, setting forth at 53 9 what time, not less than thirty nor more than ninety days 53 10 subsequent to the execution and filing therefor, the member 53 11 desires to be retired, provided, that the said member at the 53 12 time so specified for retirement shall have attained the age 53 13 of fifty-five and shall have completed twenty-two years or 53 14 more of creditable service, and notwithstanding that, during 53 15 such period of notification, the member may have separated 53 16 from the service. However, a member may retire at fifty years 53 17 of age and receive a reduced retirement allowance pursuant to 53 18 subsection 2A. 53 19 Sec. 84. Section 97A.6, subsection 2, paragraph d, 53 20 subparagraph (3), Code 1995, is amended to read as follows: 53 21 (3) For a member who terminates service, other than by 53 22 death or disability, on or after October 16, 1992, but before 53 23 July 1, 1996, and who does not withdraw the member's 53 24 contributions pursuant to section 97A.16, upon the member's 53 25 retirement there shall be added six-tenths percent of the 53 26 member's average final compensation for each year of service 53 27 over twenty-two years. However, this subparagraph does not 53 28 apply to more than eight additional years of service. 53 29 Sec. 85. Section 97A.6, subsection 2, paragraph d, Code 53 30 1995, is amended by adding the following new subparagraph: 53 31 NEW SUBPARAGRAPH. (4) For a member who terminates 53 32 service, other than by death or disability, on or after July 53 33 1, 1996, and who does not withdraw the member's contributions 53 34 pursuant to section 97A.16, upon the member's retirement there 53 35 shall be added one and one-half percent of the member's 54 1 average final compensation for each year of service over 54 2 twenty-two years. However, this subparagraph does not apply 54 3 to more than eight additional years of service. 54 4 Sec. 86. Section 97A.6, subsection 10, Code 1995, is 54 5 amended to read as follows: 54 6 10. OPTIONAL ALLOWANCE. With the provision that no 54 7 optional selection shall be effective in case a beneficiary 54 8 dies within thirty days after retirement, in which event such 54 9 a beneficiary shall be considered as an active member at the 54 10 time of death, until the first payment on account of any 54 11 benefit becomes normally due, any beneficiary may elect to 54 12 receive the beneficiary's benefit in a retirement allowance 54 13 payable throughout life, or may elect to receive the actuarial 54 14 equivalent at that time of the beneficiary's retirement 54 15 allowance in a lesser retirement allowance payable throughout 54 16 life with the provision that an amount in money not exceeding 54 17 the amount of the beneficiary's accumulated contributions 54 18 shall be immediately paid in cash to such member or some other 54 19 benefit or benefits shall be paid either to the member or to 54 20 such person or persons as the member shall nominate, provided 54 21 such cash payment or other benefit or benefits, together with 54 22 the lesser retirement allowance, shall be certified by the 54 23state commissioner of insuranceactuary to be of equivalent 54 24 actuarial value to the member's retirement allowance and shall 54 25 be approved by the board of trustees; provided, that a cash 54 26 payment to such member or beneficiary at the time of 54 27 retirement of an amount not exceeding fifty percent of the 54 28 member's or beneficiary's accumulated contributions shall be 54 29 made by the board of trustees upon said member's or 54 30 beneficiary's election. 54 31 Sec. 87. Section 97A.6, subsection 12, unnumbered 54 32 paragraph 1, Code 1995, is amended to read as follows: 54 33 Pension to surviving spouse and children of deceased 54 34 pensioned members. In the event of the death of any member 54 35 receiving a retirement allowance under the provisions of 55 1 subsections 2, 2A, 4, or 6 of this section there shall be paid 55 2 a pension: 55 3 Sec. 88. Section 97A.6, subsection 12, paragraph a, Code 55 4 1995, is amended to read as follows: 55 5 a. To the member's surviving spouse, equal to one-half the 55 6 amount received by the deceased beneficiary, but in no 55 7 instance less than an amount equal totwentytwenty-five 55 8 percent of the monthly earnable compensation paid to an active 55 9 member having the rank of senior patrol officer of the Iowa 55 10 highway safety patrol, and in addition a monthly pension equal 55 11 to the monthly pension payable under subsection 9, paragraph 55 12 "c," of this section for each child under eighteen years of 55 13 age or twenty-two years of age if applicable; or 55 14 Sec. 89. Section 97A.6, subsection 14, paragraph a, 55 15 subparagraphs (1), (2), and (3), Code 1995, are amended to 55 16 read as follows: 55 17 (1)Twenty-fiveThirty percent for members receiving a 55 18 service retirement allowance and for beneficiaries receiving a 55 19 pension under subsection 9 of this section.However,55 20effective July 1, 1990, for members who retired before that55 21date, thirty percent shall be the applicable percentage for55 22members and beneficiaries under this subparagraph.55 23 (2)Twenty-fiveThirty percent for members with five or 55 24 more years of membership service who are receiving an ordinary 55 25 disability retirement allowance.However, effective July 1,55 261990, for members who retired before that date, thirty percent55 27shall be the applicable percentage for members under this55 28subparagraph.55 29 (3)Twelve and one-halfFifteen percent for members with 55 30 less than five years of membership service who are receiving 55 31 an ordinary disability retirement allowance, and for 55 32 beneficiaries receiving a pension under subsection 8 of this 55 33 section.However, effective July 1, 1990, for members who55 34retired before that date, fifteen percent shall be the55 35applicable percentage for members and beneficiaries under this56 1subparagraph.56 2 Sec. 90. Section 97A.6, subsection 14, paragraph d, Code 56 3 1995, is amended to read as follows: 56 4 d. A retired member eligible for benefits under the 56 5 provisions of subsection 1 is not eligible for the annual 56 6 readjustment of pensions provided in this subsection unless 56 7 the member served at least twenty-two yearsand attained the56 8age of fifty-five yearsprior to the member's termination of 56 9 employment. 56 10 Sec. 91. Section 97A.6, Code 1995, is amended by adding 56 11 the following new subsection: 56 12 NEW SUBSECTION. 2A. EARLY RETIREMENT BENEFITS. 56 13 a. Notwithstanding the calculation of the service 56 14 retirement allowance under subsection 2, beginning July 1, 56 15 1996, a member who has completed twenty-two years or more of 56 16 creditable service and is at least fifty years of age, but 56 17 less than fifty-five years of age, who has otherwise completed 56 18 the requirements for retirement under subsection 1, may retire 56 19 and receive a reduced service retirement allowance pursuant to 56 20 this subsection. The service retirement allowance for a 56 21 member less than fifty-five years of age shall be calculated 56 22 in the manner prescribed in subsection 2, except that the 56 23 percentage multiplier of the member's average final 56 24 compensation used in the determination of the service 56 25 retirement allowance shall be reduced by the board of trustees 56 26 pursuant to paragraph "b". 56 27 b. On July 1, 1996, and on each July 1 thereafter, the 56 28 board of trustees shall determine for the respective fiscal 56 29 year the percent by which the percentage multiplier under 56 30 subsection 2 shall be reduced for each month that a member's 56 31 retirement date precedes the member's fifty-fifth birthday. 56 32 The board of trustees shall make this determination based upon 56 33 the most recent actuarial valuation of the system, the 56 34 calculation of the actuarial cost for each month of retirement 56 35 of a member prior to age fifty-five, and the premise that the 57 1 provision of a service retirement allowance to a member who is 57 2 less than fifty-five years of age will not result in any 57 3 increase in cost to the system. 57 4 Sec. 92. Section 97A.7, subsection 2, Code 1995, is 57 5 amended to read as follows: 57 6 2. The several funds created by this chapter may be 57 7 invested in:57 8a. Bonds or other evidences of indebtedness issued,57 9assumed, or guaranteed by the United States of America, or by57 10any agency or instrumentality thereof.57 11b. In savings accounts or time deposits in Iowa banks57 12approved as depositories by the executive council.57 13c. Inany investments authorized for the Iowa public 57 14 employees' retirement system in section 97B.7, subsection 2, 57 15 paragraph "b". 57 16 Sec. 93. Section 97A.8, subsection 1, paragraph b, Code 57 17 1995, is amended to read as follows: 57 18 b. On the basis of the rate of interest and of the 57 19 mortality, interest, and other tables adopted by the board of 57 20 trustees, thestate commissioner of insuranceboard of 57 21 trustees, upon the advice of the actuary hired by the board 57 22 for that purpose, shall make each valuation required by this 57 23 chapter and shall immediately after making such valuation, 57 24 determine the "normal contribution rate". The normal 57 25 contribution rate shall be the rate percent of the earnable 57 26 compensation of all members obtained by deducting from the 57 27 total liabilities of the fund the sum of the amount of the 57 28 funds in hand to the credit of the fund and dividing the 57 29 remainder by one percent of the present value of the 57 30 prospective future compensation of all members as computed on 57 31 the basis of the rate of interest and of mortality and service 57 32 tables adopted by the board of trustees, all reduced by the 57 33 employee contribution made pursuant to this subsection. 57 34 However, the normal rate of contribution shall not be less 57 35 than seventeen percent. The normal rate of contribution shall 58 1 be determined by thestate commissioner of insuranceboard of 58 2 trustees after each valuation. 58 3 Sec. 94. Section 97A.8, subsection 1, paragraph c, 58 4 unnumbered paragraph 3, Code 1995, is amended by striking the 58 5 unnumbered paragraph. 58 6 Sec. 95. Section 97A.8, subsection 1, paragraph f, 58 7 subparagraph (8), Code 1995, is amended to read as follows: 58 8 (8) Notwithstanding any other provision of this chapter, 58 9 beginning July 1, 1996, and each fiscal year thereafter,the58 10member's contribution rate shall be equivalent to the member's58 11contribution rate provided under section 411.8, subsection 1,58 12paragraph "f", for the statewide fire and police retirement58 13system for the applicable fiscal yearan amount equal to the 58 14 member's contribution rate times each member's compensation 58 15 shall be paid to the pension accumulation fund from the 58 16 earnable compensation of the member. For the purposes of this 58 17 subparagraph, the member's contribution rate shall be nine and 58 18 thirty-five hundredths percent. However, the system shall 58 19 increase the member's contribution rate as necessary to cover 58 20 any increase in cost to the system resulting from statutory 58 21 changes which are enacted by any session of the general 58 22 assembly meeting after January 1, 1995, if the increase cannot 58 23 be absorbed within the contribution rates otherwise 58 24 established pursuant to this paragraph, but subject to a 58 25 maximum employee contribution rate of eleven and three-tenths 58 26 percent. After the employee contribution reaches eleven and 58 27 three-tenths percent, sixty percent of the additional cost of 58 28 such statutory changes shall be paid by the employer under 58 29 paragraph "c" and forty percent of the additional cost shall 58 30 be paid by employees under this paragraph. 58 31 Sec. 96. Section 97A.8, subsection 3, Code 1995, is 58 32 amended to read as follows: 58 33 3. EXPENSE FUND. The expense fund shall be the fund to 58 34 which shall be credited all money provided by the state of 58 35 Iowa to pay the administration expenses of the system and from 59 1 which shall be paid all the expenses necessary in connection 59 2 with the administration and operation of the system. 59 3 Biennially the board of trustees shall estimate the amount of 59 4 money necessary to be paid into the expense fund during the 59 5 ensuing biennium to provide for the expense of operation of 59 6 the system. Investment management expenses shall be charged 59 7 to the investment income of the system and there is 59 8 appropriated from the system an amount required for the 59 9 investment management expenses. The board of trustees shall 59 10 report the investment management expenses for the fiscal year 59 11 as a percent of the market value of the system. 59 12 For purposes of this subsection, investment management 59 13 expenses are limited to the following: 59 14 a. Fees for investment advisors, consultants, and 59 15 investment management and benefit consultant firms hired by 59 16 the board of trustees in administering this chapter. 59 17 b. Fees and costs for safekeeping fund assets. 59 18 c. Costs for performance and compliance monitoring, and 59 19 accounting for fund investments. 59 20 d. Any other costs necessary to prudently invest or 59 21 protect the assets of the fund. 59 22 Sec. 97. Section 97A.12, Code 1995, is amended to read as 59 23 follows: 59 24 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR 59 25 ASSIGNMENT. 59 26 The right of any person to a pension, annuity, or 59 27 retirement allowance, to the return of contributions, the 59 28 pension, annuity, or retirement allowance itself, any optional 59 29 benefit or death benefit, any other right accrued or accruing 59 30 to any person under this chapter, and the moneys in the 59 31 various funds created under this chapter, are not subject to 59 32 execution, garnishment, attachment, or any other process 59 33 whatsoever, and are unassignable except for the purposes of 59 34 enforcing child, spousal, or medical support obligations or 59 35 marital property orders, or asin this chapterotherwise 60 1 specifically provided in this chapter. For the purposes of 60 2 enforcing child, spousal, or medical support obligations, the 60 3 garnishment or attachment of or the execution against 60 4 compensation due a person under this chapter shall not exceed 60 5 the amount specified in 15 U.S.C. } 1673(b). 60 6 Sec. 98. NEW SECTION. 97A.17 OPTIONAL TRANSFERS WITH 60 7 CHAPTER 411. 60 8 1. For purposes of this section unless the context 60 9 otherwise requires: 60 10 a. "Average accrued benefit" means the average of the 60 11 amounts representing the present value of the accrued benefit 60 12 earned by the member determined by the former system and the 60 13 present value of the accrued benefit earned by the member 60 14 determined by the current system. 60 15 b. "Current system" means the eligible retirement system 60 16 in which a person has commenced employment covered by the 60 17 system after having terminated employment covered by the 60 18 former system. 60 19 c. "Eligible retirement system" means the system created 60 20 under this chapter and the statewide fire and police 60 21 retirement system established in chapter 411. 60 22 d. "Former system" means the eligible retirement system in 60 23 which a person has terminated employment covered by the system 60 24 prior to commencing employment covered by the current system. 60 25 2. Commencing July 1, 1996, a vested member of an eligible 60 26 retirement system who terminates employment covered by one 60 27 eligible retirement system and, within sixty days, commences 60 28 employment covered by the other eligible retirement system may 60 29 elect to transfer the average accrued benefit earned from the 60 30 former system to the current system. The member shall file an 60 31 application with the current system for transfer of the 60 32 average accrued benefit within ninety days of the commencement 60 33 of employment with the current system. 60 34 3. Notwithstanding subsection 2, a vested member whose 60 35 employment with the current system commenced prior to July 1, 61 1 1996, may elect to transfer the average accrued benefit earned 61 2 under the former system to the current system by filing an 61 3 application with the current system for transfer of the 61 4 average accrued benefit on or before July 1, 1997. 61 5 4. Upon receipt of an application for transfer of the 61 6 average accrued benefit, the current system shall calculate 61 7 the average accrued benefit and the former system shall 61 8 transfer to the current system assets in an amount equal to 61 9 the average accrued benefit. Once the transfer of the average 61 10 accrued benefit is completed, the member's service under the 61 11 former system shall be treated as membership service under the 61 12 current system for purposes of this chapter and chapter 411. 61 13 DIVISION IV 61 14 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 61 15 Sec. 99. Section 400.8, subsection 1, Code 1995, is 61 16 amended to read as follows: 61 17 1. The commission, when necessary under the rules, 61 18 including minimum and maximum age limits, which shall be 61 19 prescribed and published in advance by the commission and 61 20 posted in the city hall, shall hold examinations for the 61 21 purpose of determining the qualifications of applicants for 61 22 positions under civil service, other than promotions, which 61 23 examinations shall be practical in character and shall relate 61 24 to matters which will fairly test the mental and physical 61 25 ability of the applicant to discharge the duties of the 61 26 position to which the applicant seeks appointment. The 61 27 physical examination of applicants for appointment to the 61 28 positions of police officer, police matron, or fire fighter 61 29 shall be held in accordance with medical protocols established 61 30 by the board of trustees of the fire and police retirement 61 31 system established by section 411.5. The board of trustees 61 32 may change the medical protocols at any time the board so 61 33 determines. The commission shall conduct a medical 61 34 examination of an applicant for the position of police 61 35 officer, police matron, or fire fighter after a conditional 62 1 offer of employment has been made to the applicant. An 62 2 applicant shall not be discriminated against on the basis of 62 3 height, weight, sex, or race in determining physical or mental 62 4 ability of the applicant. Reasonable rules relating to 62 5 strength, agility, and general health of applicants shall be 62 6 prescribed. The costs of the physical examination required 62 7 under this subsection shall be paid from the trust and agency 62 8 fund of the city. 62 9 Sec. 100. Section 411.5, Code 1995, is amended by adding 62 10 the following new subsection: 62 11 NEW SUBSECTION. 13. VOLUNTARY BENEFIT PROGRAMS. The 62 12 board of trustees shall be responsible for the administration 62 13 of the voluntary benefit programs established under section 62 14 411.40. The board may take any necessary action, including 62 15 the adoption of rules, for purposes of administering the 62 16 programs. 62 17 Sec. 101. Section 411.6, subsection 7, paragraph a, 62 18 unnumbered paragraph 1, Code 1995, is amended to read as 62 19 follows: 62 20 Should any beneficiary for either ordinary or accidental 62 21 disability, except a beneficiary who is fifty-five years of 62 22 age or over and would have completed twenty-two years of 62 23 service if the beneficiary had remained in active service, be 62 24 engaged in a gainful occupation paying more than the 62 25 difference between the member's retirement allowance and one 62 26 and one-half times the earnable compensation of an active 62 27 member at the same position on the salary scale within the 62 28 member's rank as the member held at retirement, then the 62 29 amount of the member's retirement allowance shall be reduced 62 30 to an amount which together with the amount earned by the 62 31 member shall equal one and one-half times the amount of the 62 32 current earnable compensation of an active member at the same 62 33 position on the salary scale within the member's rank as the 62 34 member held at retirement. Should the member's earning 62 35 capacity be later changed, the amount of the member's 63 1 retirement allowance may be further modified, provided, that 63 2 the new retirement allowance shall not exceed the amount of 63 3 the retirement allowance adjusted by annual readjustments of 63 4 pensions pursuant to subsection 12 of this section nor an 63 5 amount which, when added to the amount earned by the 63 6 beneficiary, equals one and one-half times the amount of the 63 7 earnable compensation of an active member at the same position 63 8 on the salary scale within the member's rank as the member 63 9 held at retirement. A beneficiary restored to active service 63 10 at a salary less than the average final compensation upon the 63 11 basis of which the member was retired at age fifty-five or 63 12 greater, shall not again become a member of the retirement 63 13 system and shall have the member's retirement allowance 63 14 suspended while in active service. If the rank or position 63 15 held by the retired member is subsequently abolished, 63 16 adjustments to the allowable limit on the amount of income 63 17 which can be earned in a gainful occupation shall be computed 63 18in the same manner as provided in subsection 12, paragraph63 19"c", of this section for readjustment of pensions when a rank63 20or position has been abolishedby the board of trustees as 63 21 though such rank or position had not been abolished and salary 63 22 increases had been granted to such rank or position on the 63 23 same basis as increases granted to other ranks and positions 63 24 in the department. 63 25 Sec. 102. Section 411.6, subsection 12, paragraphs a 63 26 through c, Code 1995, are amended by striking the paragraphs 63 27 and inserting in lieu thereof the following: 63 28 a. On each July 1, the monthly pensions authorized in this 63 29 section payable to retired members and to beneficiaries shall 63 30 be adjusted as provided in this subsection. An amount equal 63 31 to the sum of one and one-half percent of the monthly pension 63 32 of each retired member and beneficiary and the applicable 63 33 incremental amount shall be added to the monthly pension of 63 34 each retired member and beneficiary. The board of trustees 63 35 shall report to the general assembly every six years, by 64 1 September 15 of that year, beginning with September 15, 2001, 64 2 on whether the provisions of this subsection continue to 64 3 provide an equitable method for the annual readjustment of 64 4 pensions payable under this chapter. 64 5 b. For purposes of this subsection, "applicable 64 6 incremental amount" means the following amount for members 64 7 receiving a pension under subsection 2, 4, or 6 and for 64 8 beneficiaries receiving a pension under subsection 11: 64 9 (1) Fifteen dollars where the member's retirement date was 64 10 less than five years prior to the effective date of the 64 11 increase. 64 12 (2) Twenty dollars where the member's retirement date was 64 13 at least five years, but less than ten years, prior to the 64 14 effective date of the increase. 64 15 (3) Twenty-five dollars where the member's retirement date 64 16 was at least ten years, but less than fifteen years, prior to 64 17 the effective date of the increase. 64 18 (4) Thirty dollars where the member's retirement date was 64 19 at least fifteen years, but less than twenty years, prior to 64 20 the effective date of the increase. 64 21 (5) Thirty-five dollars where the member's retirement date 64 22 was at least twenty years prior to the effective date of the 64 23 increase. 64 24 c. For beneficiaries receiving a pension under subsection 64 25 8 or 9, the applicable incremental amount shall be determined 64 26 as set forth in paragraph "b", except that the date of the 64 27 member's death shall be substituted for the member's 64 28 retirement date. 64 29 Sec. 103. Section 411.6, subsection 12, Code 1995, is 64 30 amended by adding the following new paragraph: 64 31 NEW PARAGRAPH. e. A retired member eligible for benefits 64 32 under this section and otherwise eligible for the readjustment 64 33 of benefits provided in this subsection is not eligible for 64 34 the readjustment unless the member was retired on or before 64 35 the effective date of the readjustment. 65 1 Sec. 104. Section 411.13, Code 1995, is amended to read as 65 2 follows: 65 3 411.13 EXEMPTION FROM EXECUTION AND OTHER PROCESS, OR 65 4 ASSIGNMENT – EXCEPTIONS. 65 5 The right of any person to a pension, annuity, or 65 6 retirement allowance, to the return of contributions, the 65 7 pension, annuity, or retirement allowance itself, any optional 65 8 benefit or death benefit, any other right accrued or accruing 65 9 to any person under this chapter, and the moneys in the fire 65 10 and police retirement fund created under this chapter, are not 65 11 subject to execution, garnishment, attachment, or any other 65 12 process whatsoever, and are unassignable except for the 65 13 purposes of enforcing child, spousal, or medical support 65 14 obligations or marital property orders, or asin this chapter65 15 otherwise specifically provided in this chapter. For the 65 16 purposes of enforcing child, spousal, or medical support 65 17 obligations, the garnishment or attachment of or the execution 65 18 against compensation due a person under this chapter shall not 65 19 exceed the amount specified in 15 U.S.C. } 1673(b). 65 20 Sec. 105. NEW SECTION. 411.31 OPTIONAL TRANSFERS WITH 65 21 CHAPTER 97A. 65 22 1. For purposes of this section, unless the context 65 23 otherwise requires: 65 24 a. "Average accrued benefit" means the average of the 65 25 amounts representing the present value of the accrued benefit 65 26 earned by the member determined by the former system and the 65 27 present value of the accrued benefit earned by the member 65 28 determined by the current system. 65 29 b. "Current system" means the eligible retirement system 65 30 in which a person has commenced employment covered by the 65 31 system after having terminated employment covered by the 65 32 former system. 65 33 c. "Eligible retirement system" means the system created 65 34 under this chapter and the Iowa department of public safety 65 35 peace officers' retirement, accident, and disability system 66 1 established in chapter 97A. 66 2 d. "Former system" means the eligible retirement system in 66 3 which a person has terminated employment covered by the system 66 4 prior to commencing employment covered by the current system. 66 5 2. Commencing July 1, 1996, a vested member of an eligible 66 6 retirement system who terminates employment covered by one 66 7 eligible retirement system and, within sixty days, commences 66 8 employment covered by the other eligible retirement system may 66 9 elect to transfer the average accrued benefit earned from the 66 10 former system to the current system. The member shall file an 66 11 application with the current system for transfer of the 66 12 average accrued benefit within ninety days of the commencement 66 13 of employment with the current system. 66 14 3. Notwithstanding subsection 2, a vested member whose 66 15 employment with the current system commenced prior to July 1, 66 16 1996, may elect to transfer the average accrued benefit earned 66 17 under the former system to the current system by filing an 66 18 application with the current system for transfer of the 66 19 average accrued benefit on or before July 1, 1997. 66 20 4. Upon receipt of an application for transfer of the 66 21 average accrued benefit, the current system shall calculate 66 22 the average accrued benefit and the former system shall 66 23 transfer to the current system assets in an amount equal to 66 24 the average accrued benefit. Once the transfer of the average 66 25 accrued benefit is completed, the member's service under the 66 26 former system shall be treated as membership service under the 66 27 current system for purposes of this chapter and chapter 97A. 66 28 Sec. 106. Section 411.37, subsection 2, Code 1995, is 66 29 amended to read as follows: 66 30 2. The board shall include in the transition plan or other 66 31 transition documents, provisions to facilitate continuity 66 32 under sections 411.20, 411.21, and 411.30and a recommendation66 33for an equitable process for determining earnable compensation66 34changes when calculating adjustments to pensions under section66 35411.6, subsection 12, to be submitted to the general assembly67 1meeting in 1991. 67 2 Sec. 107. Section 411.38, subsection 1, paragraph b, 67 3 unnumbered paragraph 1, Code 1995, is amended to read as 67 4 follows: 67 5 Transfer from each terminated city fire or police 67 6 retirement system to the statewide system amounts sufficient 67 7 to cover the accrued liabilities of that terminated system as 67 8 determined by the actuary of the statewide system. The 67 9 actuary of the statewide system shall redetermine the accrued 67 10 liabilities of the terminated systems as necessary to take 67 11 into account additional amounts payable by the city which are 67 12 attributable to errors or omissions which occurred prior to 67 13 January 1, 1992, or to matters pending as of January 1, 1992. 67 14 If the actuary of the statewide system determines that the 67 15 assets transferred by a terminated system are insufficient to 67 16 fully fund the accrued liabilities of the terminated system as 67 17 determined by the actuary as of January 1, 1992, the 67 18 participating city shall pay to the statewide system an amount 67 19 equal to the unfunded liability plus interest for the period 67 20 beginning January 1, 1992, and ending with the date of payment 67 21 or the date of entry into an amortization agreement pursuant 67 22 to this section. Interest on the unfunded liability shall be 67 23 computed at a rate equal to the greater of the actuarial 67 24 interest rate assumption on investments of the moneys in the 67 25 fund or the actual investment earnings of the fund for the 67 26 applicable calendar year. The participating city may enter 67 27 into an agreement with the statewide system to make additional 67 28 annual contributions sufficient to amortize the unfunded 67 29 accrued liability of the terminated system. The terms of an 67 30 amortization agreement shall be based upon the recommendation 67 31 of the actuary of the statewide system, and the agreement 67 32 shall do each of the following: 67 33 Sec. 108. NEW SECTION. 411.40 VOLUNTARY BENEFIT 67 34 PROGRAMS. 67 35 The board of trustees may establish voluntary benefit 68 1 programs for members subject to the following conditions: 68 2 1. The voluntary benefit programs may provide benefits 68 3 including, but not limited to, retiree health benefits, long- 68 4 term care, and life insurance. 68 5 2. Participation in the voluntary benefit programs by 68 6 members shall be voluntary. 68 7 3. Contributions to the voluntary benefit programs shall 68 8 be paid entirely by each participating member by means of 68 9 payroll deduction. Cities employing members participating in 68 10 voluntary benefit programs shall forward the amounts deducted 68 11 to the board of trustees for deposit in the voluntary benefit 68 12 fund. 68 13 4. The voluntary benefit programs and the voluntary 68 14 benefit fund shall be administered under the direction of the 68 15 board of trustees for the exclusive benefit of members paying 68 16 contributions as provided in subsection 3. 68 17 5. The assets of the voluntary benefit programs shall be 68 18 credited to the voluntary benefit fund, which is hereby 68 19 created. The voluntary benefit fund shall include 68 20 contributions deposited in accordance with subsection 3, and 68 21 any interest and earnings on the contributions. The board of 68 22 trustees shall annually establish an investment policy to 68 23 govern the investment and reinvestment of the assets in the 68 24 voluntary benefit fund. The voluntary benefit fund created 68 25 under this section and the fire and police retirement fund 68 26 created under section 411.8 shall not be used to subsidize any 68 27 portion of the liabilities of the other fund. 68 28 6. The board of trustees shall include in its annual 68 29 budget the amount of money necessary during the following year 68 30 to provide for the expense of operation of the voluntary 68 31 benefit programs. The operating expenses shall be paid from 68 32 the voluntary benefit fund under the direction of the board of 68 33 trustees. 68 34 DIVISION V 68 35 JUDICIAL RETIREMENT SYSTEM 69 1 Sec. 109. Section 602.9111, Code 1995, is amended to read 69 2 as follows: 69 3 602.9111 INVESTMENT OF FUND. 69 4 So much of the judicial retirement fund as may not be 69 5 necessary to be kept on hand for the making of disbursements 69 6 under this article shall be invested by the treasurer of state 69 7 inbonds or other evidences of indebtedness issued, assumed,69 8or guaranteed by the United States of America, or by any69 9agency or instrumentality thereof or inany investments 69 10 authorized for the Iowa public employees' retirement system in 69 11 section 97B.7, subsection 2, paragraph "b", and the earnings 69 12 therefrom shall be credited tosaidthe fund. The treasurer 69 13 of state may execute contracts and agreements with investment 69 14 advisors, consultants, and investment management and benefit 69 15 consultant firms in the administration of the judicial 69 16 retirement fund. 69 17 Investment management expenses shall be charged to the 69 18 investment income of the fund and there is appropriated from 69 19 the fund an amount required for the investment management 69 20 expenses. The court administrator shall report the investment 69 21 management expenses for the fiscal year as a percent of the 69 22 market value of the system. 69 23 For purposes of this section, investment management 69 24 expenses are limited to the following: 69 25 a. Fees for investment advisors, consultants, and 69 26 investment management and benefit consultant firms hired by 69 27 the treasurer of state in administering the fund. 69 28 b. Fees and costs for safekeeping fund assets. 69 29 c. Costs for performance and compliance monitoring, and 69 30 accounting for fund investments. 69 31 d. Any other costs necessary to prudently invest or 69 32 protect the assets of the fund. The state court administrator 69 33 and the treasurer of state, and their employees, are not 69 34 personally liable for claims based upon an act or omission of 69 35 the person performed in the discharge of the person's duties 70 1 concerning the judicial retirement fund, except for acts or 70 2 omissions which involve malicious or wanton misconduct. 70 3 DIVISION VI 70 4 EFFECTIVE AND APPLICABILITY PROVISIONS 70 5 Sec. 110. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 70 6 1. The section of this Act which amends section 97B.49, 70 7 subsection 16, by enacting a new paragraph "m", being deemed 70 8 of immediate importance, takes effect upon enactment and 70 9 applies retroactively to July 1, 1992. 70 10 2. The section of this Act which amends section 411.6, 70 11 subsection 12, paragraphs "a" through "c", takes effect July 70 12 1, 1997. 70 13 SF 2245 70 14 ec/cc/26
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