Text: SSB02179 Text: SSB02181 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 1 3 Section 1. Section 97B.4, unnumbered paragraph 1, Code 1 4 1995, is amended to read as follows: 1 5 The department, through the chief investment officer and 1 6 chief benefits officer, shall administer this chapter. The 1 7 department may adopt, amend, or rescind rules, employ persons, 1 8 execute contracts with outside parties, make expenditures, 1 9 require reports, make investigations, and take other action it 1 10 deems necessary for the administration of the system in 1 11 conformity with the requirements of this chapter, the 1 12 applicable provisions of the Internal Revenue Code, and all 1 13 other applicable federal and state laws. The rules shall be 1 14 effective upon compliance with chapter 17A. Not later than 1 15 the fifteenth day of December of each year, the department 1 16 shall submit to the governor a report covering the 1 17 administration and operation of this chapter during the 1 18 preceding fiscal year and shall make recommendations for 1 19 amendments to this chapter. The report shall include a 1 20 balance sheet of the moneys in the Iowa public employees' 1 21 retirement fund. 1 22 Sec. 2. Section 97B.7, subsection 2, paragraph b, 1 23 unnumbered paragraphs 1 through 3, Code 1995, are amended to 1 24 read as follows: 1 25 To invest the portion of the retirement fund which in the 1 26 judgment of the department is not needed for current payment 1 27 of benefits under this chapter. The department shall execute 1 28 the disposition and investment of moneys in the retirement 1 29 fund in accordance with the investment policy and goal 1 30 statement established by the investment board. In 1 31 establishing the investment policy of the fund and the 1 32 investment of the fund, the department and investment board 1 33 shall exercise the judgment and care, under the circumstances 1 34 then prevailing, which persons of prudence, discretion, and 1 35 intelligence exercise in the management of their own affairs, 2 1 not for the purpose of speculation, but with regard to the 2 2 permanent disposition of the funds, considering the probable 2 3 income, as well as the probable safety, of their capital. 2 4 Within the limitations of the standard prescribed in this 2 5 section, the treasurer of state, the department, and the board 2 6 may acquire and retain every kind of property and every kind 2 7 of investment which persons of prudence, discretion, and 2 8 intelligence acquire or retain for their own account. 2 9 The department and investment board shall give appropriate 2 10 consideration to those facts and circumstances that the 2 11 department and investment board know or should know are 2 12 relevant to the particular investment or investment policy 2 13 involved, including the role the investment plays in the total 2 14 value of the retirement fund. 2 15 For the purposes of this paragraph, appropriate con- 2 16 sideration includes, but is not limited to, a determination by 2 17 the department and investment board that the particular 2 18 investment or investment policy is reasonably designed to 2 19 further the purposes of the retirement system, taking into 2 20 consideration the risk of loss and the opportunity for gain or 2 21 other return associated with the investment or investment 2 22 policy and consideration of the following factors as they 2 23 relate to the retirement fund: 2 24 Sec. 3. Section 97B.11, Code 1995, is amended to read as 2 25 follows: 2 26 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE. 2 27 Each employer shall deduct from the wages of each member of 2 28 the system a contribution in the amount of three and seven- 2 29 tenths percent of the covered wages paid by the employer, 2 30 until the member's termination or retirement from employment, 2 31 whichever is earlier. The contributions of the employer shall 2 32 be in the amount of five and seventy-five hundredths percent 2 33 of the covered wages of the member. 2 34 If the total of the contributions to be deducted from the 2 35 wages of a member and contributions picked up and paid by the 3 1 employer shall not exceed one dollar for any calendar quarter, 3 2 contributions shall not be deducted or paid concerning that 3 3 member and the member shall not receive credit for membership 3 4 service for that quarter. 3 5 Sec. 4. Section 97B.14, Code 1995, is amended to read as 3 6 follows: 3 7 97B.14 CONTRIBUTIONS FORWARDED. 3 8 Contributions deducted from the wages of the memberor3 9 under section 97B.11 prior to January 1, 1995, member 3 10 contributions picked up by the employer under section 97B.11A 3 11 beginning January 1, 1995, and the employer's contribution 3 12 shall be forwarded to the department for recording and 3 13 deposited with the treasurer of the state to the credit of the 3 14 Iowa public employees' retirement fund. Contributions shall 3 15 be remitted monthly, if total contributions by both employee 3 16 and employer amount to one hundred dollars or more each month, 3 17 and shall be otherwise paid in such manner, at such times and 3 18 under such conditions, either by copies of payrolls or other 3 19 methods necessary or helpful in securing proper identification 3 20 of the member, as may be prescribed by the department. 3 21 Sec. 5. Section 97B.15, Code 1995, is amended to read as 3 22 follows: 3 23 97B.15 RULES, POLICIES, AND PROCEDURES. 3 24 The department may adopt rules under chapter 17A and 3 25 establish procedures, not inconsistent with this chapter, 3 26 which are necessary or appropriate to implement this chapter 3 27 and shall adopt reasonable and proper rules to regulate and 3 28 provide for the nature and extent of the proofs and evidence 3 29 and the method of taking and furnishing the proofs and 3 30 evidence in order to establish the right to benefits under 3 31 this chapter. The department may adopt rules, and take action 3 32 based on the rules, to conform the requirements for receipt of 3 33 retirement benefits under this chapter to the mandates of 3 34 applicable federal statutes and regulations. 3 35 Prior to the adoption of rules, the department may 4 1 establish interim written policies and procedures, and take 4 2 action based on the policies and procedures, to conform the 4 3 requirements for receipt of retirement benefits under this 4 4 chapter to the applicable requirements of federal law. 4 5 Sec. 6. Section 97B.17, unnumbered paragraph 1, Code 1995, 4 6 is amended to read as follows: 4 7 The department shall establish and maintain records of each 4 8 member, including but not limited to, the amount of wages of 4 9 each member, the contribution of each member with interest, 4 10 and interest dividends credited. The records may be 4 11 maintained in paper, magnetic, or electronic form, including 4 12 optical disk storage. These records are the basis for the 4 13 compilation of the retirement benefits provided under this 4 14 chapter. The following records maintained under this chapter 4 15 containing personal identifiable information are not public 4 16 records for the purposes of chapter 22: 4 17 Sec. 7. Section 97B.17, Code 1995, is amended by adding 4 18 the following new unnumbered paragraph: 4 19 NEW UNNUMBERED PARAGRAPH. Notwithstanding any provisions 4 20 of chapter 22 to the contrary, the department's records may be 4 21 released to any political subdivision, instrumentality, or 4 22 other agency of the state solely for use in a civil or 4 23 criminal law enforcement activity pursuant to the requirements 4 24 of this paragraph. To obtain the records, the political 4 25 subdivision, instrumentality, or agency shall, in writing, 4 26 certify that the activity is authorized by law, provide a 4 27 written description of the information desired, and describe 4 28 the law enforcement activity for which the information is 4 29 sought. The department shall not be civilly or criminally 4 30 liable for the release or rerelease of records in accordance 4 31 with this paragraph. 4 32 Sec. 8. Section 97B.25, Code 1995, is amended to read as 4 33 follows: 4 34 97B.25 APPLICATIONS FOR BENEFITS. 4 35 A representative designated by the chief benefits officer 5 1 and referred to in this chapter as a retirement benefits 5 2 specialist shall promptly examine applications for retirement 5 3 benefits and on the basis of facts found shall determine 5 4 whether or not the claim is valid and if valid, the month with 5 5 respect to which benefits shall commence, the monthly benefit 5 6 amount payable, and the maximum duration. The retirement 5 7 benefits specialist shall promptly notify the applicant and 5 8 any other interested party of the decision and the reasons. 5 9 Unless the applicant or other interested party, within thirty 5 10 calendar days after the notification was mailed to the 5 11 applicant's or party's last known address, files an appeal as 5 12 provided in section 97B.20A, the decision is final and 5 13 benefits shall be paid or denied in accord with the decision. 5 14 A retirement application shall not be amended or revoked by 5 15 the member once the first retirement allowance is paid. A 5 16 member's death during the first month of entitlement shall not 5 17 invalidate an approved application. 5 18 Sec. 9. Section 97B.39, Code 1995, is amended to read as 5 19 follows: 5 20 97B.39 RIGHTS NOT TRANSFERABLE&endash; NOTOR SUBJECT TO LEGAL 5 21 PROCESS &endash; EXCEPTIONS. 5 22 The right of any person to any future payment under this 5 23 chapter is not transferable or assignable, at law or in 5 24 equity, and the moneys paid or payable or rights existing 5 25 under this chapter are not subject to execution, levy, 5 26 attachment, garnishment, or other legal process, or to the 5 27 operation of any bankruptcy or insolvency law except for the 5 28 purposes of enforcing child, spousal, or medical support 5 29 obligations or marital property orders. For the purposes of 5 30 enforcing child, spousal, or medical support obligations or 5 31 marital property orders, the garnishment or attachment of or 5 32 the execution against compensation due a person underchapter5 3397Bthis chapter shall not exceed the amount specified in 15 5 34 U.S.C. } 1673(b). A marital property order shall not require 5 35 the payment of benefits to an alternate payee prior to the 6 1 member's retirement or require the department or the member to 6 2 designate a particular person as a designated beneficiary or 6 3 contingent annuitant, or to select a particular benefit option 6 4 on behalf of the member. In addition, a marital property 6 5 order shall not require payment of benefits to an alternate 6 6 payee prior to the date the member elects to receive a refund 6 7 of accumulated contributions pursuant to section 97B.53. 6 8 Sec. 10. Section 97B.41, subsection 2, Code Supplement 6 9 1995, is amended to read as follows: 6 10 2. "Accumulated contributions" means the total obtained as 6 11 of any date, by accumulating each individual contribution by 6 12 the memberat two percentwith interest plus interest 6 13 dividends as provided in section 97B.70, for all completed 6 14 calendar years and for any completed calendar year for which 6 15 the interest dividend has not been declared and for completed 6 16 months of partially completed calendar yearsat two percent6 17interest plus the interest dividend rate calculated for the6 18previous year, compoundedannually, from the end of the6 19calendar year in which such contribution was made to the first6 20day of the month of such dateas provided in section 97B.70. 6 21 Sec. 11. Section 97B.41, subsection 8, paragraph b, 6 22 subparagraph (6), Code Supplement 1995, is amended to read as 6 23 follows: 6 24 (6) Employees hired for temporary employment of less than 6 25 six months or one thousand and forty hours in a calendar year. 6 26 An employee who works for an employer for six or more months 6 27 in a calendar year or who works for an employer for more than 6 28 one thousand forty hours in a calendar year is not a temporary 6 29 employee under this subparagraph. Adjunct instructors are 6 30 temporary employees for the purposes of this chapter. As used 6 31 in this section, unless the context otherwise requires, 6 32 "adjunct instructors" means instructors employed by a 6 33 community college or a university governed by the state board 6 34 of regents without a continuing contract, whose teaching load 6 35 does not exceed one-half time for two full semesters or three 7 1 full quarters per calendar year. 7 2 Sec. 12. Section 97B.41, subsection 8, paragraph b, Code 7 3 Supplement 1995, is amended by adding the following new 7 4 subparagraph: 7 5 NEW SUBPARAGRAPH. (20) Persons employed through any 7 6 program described in section 15.225, subsection 1, and 7 7 provided by the Iowa conservation corps. 7 8 Sec. 13. Section 97B.41, Code Supplement 1995, is amended 7 9 by adding the following new subsection: 7 10 NEW SUBSECTION. 10A. "Internal Revenue Code" means the 7 11 Internal Revenue Code as defined in section 422.3. 7 12 Sec. 14. Section 97B.41, subsection 12, Code Supplement 7 13 1995, is amended to read as follows: 7 14 12. "Membership service" means service rendered by a 7 15 member after July 4, 1953. Years of membership service shall 7 16 be counted to the complete quarter calendar year. However, 7 17 membership service for a calendar year shall not include more 7 18 than four quarters. In determining a member's period of 7 19 membership service, the department shall combine all periods 7 20 of service for which the member has made contributions. If 7 21 the department has not maintained the accumulated contribution 7 22 account of the member for a period of service, as provided 7 23 pursuant to section 97B.53, subsection 6, the department shall 7 24 credit the member for the service if the member submits 7 25 satisfactory proof to the department that the member did make 7 26 the contributions for the period of service and did not take a 7 27 refund for the period of service.However, the department7 28shall not implement the amendments to this subsection, as7 29enacted in 1994 Iowa Acts, chapter 1183, unless and until the7 30department determines that the most recent annual actuarial7 31valuation of the retirement system indicates that the employer7 32and employee contribution rates in effect under section 97B.117 33can absorb the amendments to this subsection and to section7 3497B.53, subsections 3 and 7, section 97B.53, subsection 6,7 35unnumbered paragraph 1, and section 97B.70, by enacting a new8 1subsection 4, contained in 1994 Iowa Acts, chapter 1183, after8 2meeting the other established priorities of the system. Until8 3the amendments are implemented, the department shall continue8 4to implement the provisions of section 97B.41, subsection 12,8 5Code Supplement 1993. As used in this subsection, unless the8 6context otherwise requires, "other established priorities of8 7the system" means that commencing January 1 following the most8 8recent annual actuarial valuation of the system, the8 9department has increased the covered wage limitation from the8 10previous year by three thousand dollars, in accordance with8 11section 97B.41, subsection 20, paragraph "b", subparagraph8 12(11), and that the department has implemented the amendments8 13to section 97B.66, unnumbered paragraphs 1 and 2, section8 1497B.72, unnumbered paragraphs 1 and 2, section 97B.72A,8 15subsection 1, unnumbered paragraph 1, section 97B.73A,8 16unnumbered paragraph 1, and section 97B.74, unnumbered8 17paragraphs 1 and 2, contained in 1994 Iowa Acts, chapter 1183.8 18 Sec. 15. Section 97B.41, Code Supplement 1995, is amended 8 19 by adding the following new subsection: 8 20 NEW SUBSECTION. 13A. "Regular service" means service for 8 21 an employer other than special service. 8 22 Sec. 16. Section 97B.41, Code Supplement 1995, is amended 8 23 by adding the following new subsection: 8 24 NEW SUBSECTION. 14A. "Retirement" means that period of 8 25 time beginning when a member who has filed an approved 8 26 application for a retirement allowance has survived into at 8 27 least the first day of the member's first month of entitlement 8 28 and ending when the member dies. 8 29 Sec. 17. Section 97B.41, subsection 15, paragraphs a and 8 30 b, Code Supplement 1995, are amended to read as follows: 8 31 a. Service in the armed forces of the United States, if 8 32 the employee was employed by the employer immediately prior to 8 33 entry into the armed forces, and if the employee was released 8 34 from service and returns to covered employment with the 8 35 employer within twelve months of the date on which the 9 1 employee has the right of release from service or within a 9 2 longer period asprovidedrequired by the applicable laws of 9 3 the United States. 9 4 b. Leave of absence or vacation authorized by the employer 9 5 for a period not exceeding twelve months. A leave of absence 9 6 authorized pursuant to the requirements of the federal Family 9 7 and Medical Leave Act of 1993 is considered a leave of absence 9 8 authorized by the employer. 9 9 Sec. 18. Section 97B.41, Code Supplement 1995, is amended 9 10 by adding the following new subsection: 9 11 NEW SUBSECTION. 16A. "Special service" means service for 9 12 an employer while employed in a protection occupation as 9 13 provided in section 97B.49, subsection 16, paragraph "a", and 9 14 as a county sheriff, deputy sheriff, or airport fire fighter 9 15 as provided in section 97B.49, subsection 16, paragraph "b". 9 16 Sec. 19. Section 97B.41, subsection 18, Code Supplement 9 17 1995, is amended to read as follows: 9 18 18. a. "Three-year average covered wage" means a member's 9 19 covered wages averaged for the highest three years of the 9 20 member's service, except as otherwise provided in this 9 21 subsection. The highest three years of a member's covered 9 22 wages shall be determined using calendar years. However, if a 9 23 member's final quarter of a year of employment does not occur 9 24 at the end of a calendar year, the department may determine 9 25 the wages for the third year by computing the average quarter 9 26 of all quarters from the member's highest calendar year of 9 27 covered wages not being used in the selection of the two 9 28 highest years and using the computed average quarter for each 9 29 quarter in the third year in which no wages have been reported 9 30 in combination with the final quarter or quarters of the 9 31 member's service to create a full year. However, the 9 32 department shall not use the member's final quarter of wages 9 33 if using that quarter would reduce the member's three-year 9 34 average covered wage. If the three-year average covered wage 9 35 of a member exceeds the highest maximum covered wages in 10 1 effect for a calendar year during the member's period of 10 2 service, the three-year average covered wage of the member 10 3 shall be reduced to the highest maximum covered wages in 10 4 effect during the member's period of service. 10 5 b. Notwithstanding any other provisions of this subsection 10 6 to the contrary, the three-year average covered wage shall be 10 7 computed as follows for the following members: 10 8 (1) For a member who retires during the calendar year 10 9 beginning January 1, 1997, and whose three-year average 10 10 covered wage at the time of retirement exceeds forty-eight 10 11 thousand dollars, the member's covered wages averaged for the 10 12 highest four years of the member's service or forty-eight 10 13 thousand dollars, whichever is greater. 10 14 (2) For a member who retires during the calendar year 10 15 beginning January 1, 1998, and whose three-year average 10 16 covered wage at the time of retirement exceeds fifty-two 10 17 thousand dollars, the member's covered wages averaged for the 10 18 highest five years of the member's service or fifty-two 10 19 thousand dollars, whichever is greater. 10 20 (3) For a member who retires during the calendar year 10 21 beginning January 1, 1999, and whose three-year average 10 22 covered wage at the time of retirement exceeds fifty-five 10 23 thousand dollars, the member's covered wages averaged for the 10 24 highest six years of the member's service or fifty-five 10 25 thousand dollars, whichever is greater. 10 26 (4) For a member who retires on or after January 1, 2000, 10 27 but before January 1, 2003, and whose three-year average 10 28 covered wage at the time of retirement exceeds fifty-five 10 29 thousand dollars, the member's covered wages averaged for the 10 30 highest seven years of the member's service or fifty-five 10 31 thousand dollars, whichever is greater. 10 32 For purposes of this paragraph, the highest years of the 10 33 member's service shall be determined using calendar years and 10 34 may be determined using one computed year calculated in the 10 35 manner and subject to the restrictions provided in paragraph 11 1 "a". 11 2 Sec. 20. Section 97B.41, subsection 20, paragraph b, 11 3 subparagraph (11), unnumbered paragraphs 1 and 2, Code 11 4 Supplement 1995, are amended by striking the unnumbered 11 5 paragraphs and inserting in lieu thereof the following: 11 6 (11) For the calendar year beginning January 1, 1991, 11 7 wages not in excess of thirty-one thousand dollars. 11 8 (11A) For the calendar year beginning January 1, 1992, 11 9 wages not in excess of thirty-four thousand dollars. 11 10 (11B) For the calendar year beginning January 1, 1993, 11 11 wages not in excess of thirty-five thousand dollars. 11 12 (11C) For the calendar year beginning January 1, 1994, 11 13 wages not in excess of thirty-eight thousand dollars. 11 14 (11D) For the calendar year beginning January 1, 1995, 11 15 wages not in excess of forty-one thousand dollars. 11 16 (11E) For the calendar year beginning January 1, 1996, 11 17 wages not in excess of forty-four thousand dollars. 11 18 (11F) Commencing with the calendar year beginning January 11 19 1, 1997, and for each subsequent calendar year, wages not in 11 20 excess of the amount permitted for that year under section 11 21 401(a)(17) of the Internal Revenue Code. 11 22 Sec. 21. Section 97B.41, subsection 20, paragraph b, 11 23 subparagraph (11), unnumbered paragraph 3, Code Supplement 11 24 1995, is amended to read as follows: 11 25 Notwithstanding any other provision of this chapter 11 26 providing for the payment of the benefits provided in section 11 27 97B.49, subsection 16 or 17, the department shall establish 11 28 the covered wages limitation which applies to members covered 11 29 under section 97B.49, subsection 16 or 17, at the same level 11 30 as is established under this subparagraph for other members of 11 31 the system. 11 32 Sec. 22. Section 97B.42, unnumbered paragraph 1, Code 11 33 1995, is amended to read as follows: 11 34 Each employee whose employment commences after July 4, 11 35 1953, or who has not qualified for credit for prior service 12 1 rendered prior to July 4, 1953, or any publicly elected 12 2 official of the state or any of its political subdivisions 12 3 shall become a member upon the first day in which such 12 4 employee is employed. The employee shall continue to be an 12 5 active member so long as the employee continues in covered 12 6 employment. The employee shall cease to be an active member 12 7 if the employee joins another retirement system in the state 12 8 which is maintained in whole or in part by public 12 9 contributions or payments and receives retirement credit for 12 10 service in that other system for the same position previously 12 11 covered under this chapter. If an employee joins another 12 12 publicly maintained retirement system and ceases to be an 12 13 active member under this chapter, the employee may elect to 12 14 leave the employee's accumulated contributions in the 12 15 retirement fund or receive a refund of the employee's 12 16 accumulated contributions in the manner provided for members 12 17 who are terminating covered employment pursuant to section 12 18 97B.53. However, if an employee joins another publicly 12 19 maintained retirement system and leaves the employee's 12 20 accumulated contributions in the retirement fund, the employee 12 21 shall not be eligible to receive retirement benefits until the 12 22 employee has a bona fide retirement from employment with a 12 23 covered employer as provided in section 97B.52A, or until the 12 24 employee would otherwise be eligible to receive benefits upon 12 25 attaining the age of seventy years as provided in section 12 26 97B.46. 12 27 Sec. 23. Section 97B.42, unnumbered paragraph 4, Code 12 28 1995, is amended to read as follows: 12 29 Persons who are members of any other retirement system in 12 30 the state which is maintained in whole or in part by public 12 31 contributions other than persons who are covered under the 12 32 provisions of chapter 97, Code 1950, as amended by the Fifty- 12 33 fourth General Assembly on the date of the repeal of said 12 34 chapter, under the provisions of sections 97.50 through 97.53 12 35 shall not become members under this chapter while still 13 1 actively participating in that other retirement system unless 13 2 the persons do not receive retirement credit for service in 13 3 that other system for the position to be covered under this 13 4 chapter. 13 5 Sec. 24. Section 97B.42, unnumbered paragraph 5, Code 13 6 1995, is amended to read as follows: 13 7 Nothing herein contained shall be construed to permit any 13 8person in public employment to be an active member ofemployer 13 9 to make any public contributions or payments on behalf of an 13 10 employee in the same position for the same period of time to 13 11 both the Iowa public employees' retirement system and of any 13 12 other retirement system in the state which is supported in 13 13 whole or in part by public contributions or paymentsexcept as13 14heretofore provided. 13 15 Sec. 25. Section 97B.45, unnumbered paragraph 2, Code 13 16 1995, is amended to read as follows: 13 17 A member may retire after the member's sixty-fifth birthday 13 18except as otherwise provided in section 97B.46. A member 13 19 retiring on or after the normal retirement date, as provided 13 20 in section 97B.46, shall submit a written notice to the 13 21 department setting forth the date the retirement is to become 13 22 effective. The date shall be after the member's last day of 13 23 service and not before the first day of the sixth calendar 13 24 month preceding the month in which the notice is filed. 13 25 Sec. 26. Section 97B.46, subsection 2, Code 1995, is 13 26 amended by striking the subsection. 13 27 Sec. 27. Section 97B.48, subsection 1, Code 1995, is 13 28 amended to read as follows: 13 29 1. Retirement allowances shall be paid monthly, except 13 30 that an allowance of less than six hundred dollars a year may, 13 31 at the member's option, be paid as a lump sum in anactuarial13 32equivalentamount equal to the sum of the member's and 13 33 employer's accumulated contributions and the retirement 13 34 dividends standing to the member's credit before December 31, 13 35 1966. Receipt of the lump-sum payment by a member shall 14 1 terminate any and all entitlement for the period of service 14 2 covered of the member under this chapter. 14 3 Sec. 28. Section 97B.48A, subsection 1, Code 1995, is 14 4 amended to read as follows: 14 5 1. If, after the first day of the month in which the14 6member attains the age of fifty-five years and until the14 7member's sixty-fifth birthday,a member who has not reached 14 8 the member's sixty-fifth birthday and who has a bona fide 14 9 retirement under this chapter is in regular full-time 14 10 employment during a calendar year, the member's retirement 14 11 allowance shall besuspended for as long as the member remains14 12in employment for the remainder of that calendar yearreduced 14 13 by fifty cents for each dollar the member earns over the limit 14 14 provided in this subsection. However,effective January 1,14 151992,employment is not full-time employment until the member 14 16 receives remuneration in an amount in excess of seven thousand 14 17 four hundred forty dollars for a calendar year, or an amount 14 18 equal to the amount of remuneration permitted for a calendar 14 19 year for persons under sixty-five years of age before a 14 20 reduction in federal Social Security retirement benefits is 14 21 required, whichever is higher. Effective the first of the 14 22 month in which a member attains the age of sixty-five years, a 14 23 retired member may receive a retirement allowance without a 14 24 reduction after return to covered employment regardless of the 14 25 amount of remuneration received. 14 26 If a member dies and the full amount of the reduction from 14 27 retirement allowances required under this subsection has not 14 28 been paid, the remaining amounts shall be deducted from the 14 29 payments made, if any, to the member's designated beneficiary 14 30 or contingent annuitant. If the member has selected an option 14 31 under which remaining payments are not required or the 14 32 remaining payments are insufficient to satisfy the full amount 14 33 of the reduction from retirement allowances required under 14 34 this subsection, the amount still unpaid shall be a claim 14 35 against the member's estate. 15 1 Sec. 29. Section 97B.48A, subsection 4, Code 1995, is 15 2 amended to read as follows: 15 3 4. The department shall pay to the member the accumulated 15 4 contributions of the member and to the employer the employer 15 5 contributions, plustwo percentinterest plus interest 15 6 dividends as provided in section 97B.70, for all completed 15 7 calendar years, compoundedannuallyas provided in section 15 8 97B.70, on the covered wages earned by a retired member that 15 9 are not used in the recalculation of the retirement allowance 15 10 of a member. 15 11 Sec. 30. Section 97B.49, subsection 4, Code Supplement 15 12 1995, is amended by adding the following new unnumbered 15 13 paragraph: 15 14 NEW UNNUMBERED PARAGRAPH. Effective January 1, 1997, for 15 15 members who retired on or after July 1, 1953, and before July 15 16 1, 1990, with at least ten years of membership service, the 15 17 minimum monthly benefit payable at the normal retirement date 15 18 for prior and membership service shall be two hundred dollars. 15 19 The minimum monthly benefit payable shall be increased by ten 15 20 dollars for each year of membership service beyond ten years, 15 21 up to a maximum of twenty additional years of membership 15 22 service. If benefits commenced on an early retirement date, 15 23 the amount of the benefit shall be reduced in accordance with 15 24 section 97B.50. If an optional allowance was selected under 15 25 section 97B.51, the amount payable shall be the actuarial 15 26 equivalent of the minimum benefit. 15 27 Sec. 31. Section 97B.49, subsection 5, paragraph b, Code 15 28 Supplement 1995, is amended to read as follows: 15 29 b. For each active or inactive vested member retiring on 15 30 or after July 1, 1990, with four or more complete years of 15 31 service, a monthly benefit shall be computed which is equal to 15 32 one-twelfth of an amount equal tofifty-two percentthe 15 33 applicable percentage multiplier of the three-year average 15 34 covered wage multiplied by a fraction of years of service. 15 35 The applicable percentage multiplier shall be the following: 16 1 (1) For active or inactive vested members retiring on or 16 2 after July 1, 1990, but before July 1, 1991, fifty-two 16 3 percent. 16 4 (2) For active or inactive vested members retiring on or 16 5 after July 1, 1991, but before July 1, 1992, fifty-four 16 6 percent. 16 7 (3) For active or inactive vested members retiring on or 16 8 after July 1, 1992, but before July 1, 1993, fifty-six 16 9 percent. 16 10 (4) For active or inactive vested members retiring on or 16 11 after July 1, 1993, but before July 1, 1994, fifty-seven and 16 12 four-tenths percent. 16 13 (5) For active or inactive vested members retiring on or 16 14 after July 1, 1994, sixty percent. 16 15 The applicable percentage multiplier shall be subject to 16 16 adjustments as provided in paragraphs "e" and "f". 16 17Commencing July 1, 1991, the department shall increase the16 18percentage multiplier of the three-year average covered wage16 19by an additional two percent each July 1 until reaching sixty16 20percent of the three-year average covered wage if the annual16 21actuarial valuation of the retirement system indicates for16 22that year that the cost of this increase in the percentage of16 23the three-year average covered wage used in computing16 24retirement benefits can be absorbed within the employer and16 25employee contribution rates in effect under section 97B.11.16 26However, commencing July 1, 1994, if the annual actuarial16 27valuation of the retirement system indicates that the employer16 28and employee contribution rates in effect under section 97B.1116 29can absorb an increase in the percentage multiplier in excess16 30of two percent, the department shall increase the percentage16 31multiplier for that year beyond two percent to the extent16 32which the increase can be absorbed by the contribution rates16 33in effect, not to exceed a maximum percentage multiplier of16 34sixty percent. The increase in the percentage multiplier for16 35a year applies only to the members retiring on or after July 117 1of the respective year.17 2If the annual actuarial valuation of the retirement system17 3in any year indicates that the full cost of the increase17 4provided under this paragraph cannot be absorbed within the17 5employer and employee contribution rates in effect under17 6section 97B.11, the department shall reduce the increase to a17 7level which the department determines can be so absorbed.17 8 Notwithstanding any other provision of this chapter 17 9 providing for the payment of the benefits provided in 17 10 subsection 16 or 17, the department shallestablishapply the 17 11 percentage multiplier which applies to members covered under 17 12 subsection 16 or 17 at the same level as is established under 17 13 this subsection for other members of the system, including any 17 14 modification in the percentage multiplier as provided in 17 15 paragraphs "e" and "f". 17 16By November 15, 1995, the department shall set aside from17 17other moneys in the retirement fund three million eight17 18hundred sixty thousand dollars. The moneys set aside shall be17 19from the funds generated by the employer and employee17 20contributions in effect under section 97B.11 that exceed the17 21amount necessary to fund the system's existing liabilities, as17 22determined in the annual actuarial valuation of the system as17 23of June 30, 1995. If the annual actuarial valuation indicates17 24that the amount of the employer and employee contributions in17 25excess of the amount necessary to fund existing liabilities is17 26less than three million eight hundred sixty thousand dollars,17 27the department shall set aside all funds that are available.17 28The funds set aside shall not be used in determining the17 29covered wage limitation pursuant to section 97B.41, subsection17 3020, paragraph "b", subparagraph (11), on January 1, 1996.17 31However, any funds set aside which are not specifically17 32dedicated to a purpose by the Seventy-sixth General Assembly17 33shall be used in determining the covered wage limitation17 34thereafter.17 35In accordance with sections 97D.1 and 97D.4, it is the18 1intent of the general assembly that once the goal of sixty18 2percent of the three-year average covered wage is attained for18 3a percentage multiplier, the department shall submit to the18 4public retirement systems committee a plan for future benefit18 5enhancements. This plan shall include, but is not limited to,18 6continuation in the increase in the covered wage ceiling until18 7reaching fifty-five thousand dollars for a calendar year,18 8providing for annual adjustments in the annual dividends paid18 9to retired members as provided in section 97B.49, subsection18 1013, and providing for the indexing of terminated vested18 11members' earned benefits at a rate of three percent per year18 12calculated from the date of termination from covered18 13employment until the date of retirement.18 14 Sec. 32. Section 97B.49, subsection 5, Code Supplement 18 15 1995, is amended by adding the following new paragraph: 18 16 NEW PARAGRAPH. e. For each active or inactive vested 18 17 member retiring on or after July 1, 1996, the percentage 18 18 multiplier of the three-year average covered wage used under 18 19 subsections 5, 15, 16, and 17 to calculate the monthly 18 20 retirement allowance shall be increased by one-fourth of one 18 21 percentage point for each additional calendar quarter of 18 22 membership service beyond the applicable years of service, not 18 23 to exceed a total of six additional percentage points. For 18 24 purposes of this paragraph, "the applicable years of service" 18 25 shall be the following, based upon the service retirement 18 26 allowance selected: 18 27 (1) For members receiving a retirement allowance for 18 28 regular service under subsection 5 or 15, or receiving a 18 29 combined retirement allowance under subsection 17, the 18 30 applicable years of service is thirty. 18 31 (2) For members receiving a retirement allowance for 18 32 service in a protection occupation under subsection 16, 18 33 paragraph "a", or receiving a retirement allowance for service 18 34 as a sheriff, deputy sheriff, or airport fire fighter under 18 35 subsection 16, paragraph "b", subparagraph (3), the applicable 19 1 years of service is twenty-five. 19 2 (3) For members receiving a retirement allowance for 19 3 service as a sheriff, deputy sheriff, or airport fire fighter 19 4 under subsection 16, paragraph "b", subparagraph (1) or (2), 19 5 the applicable years of service is twenty-two. 19 6 Sec. 33. Section 97B.49, subsection 5, Code Supplement 19 7 1995, is amended by adding the following new paragraph: 19 8 NEW PARAGRAPH. f. 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 calendar year, beginning 20 17 January 1, 1998, by an amount that represents the percentage 20 18 increase in the consumer price index during the previous 20 19 calendar year, as published annually in the federal register 20 20 by the federal department of labor, bureau of labor 20 21 statistics. 20 22 Sec. 34. Section 97B.49, subsection 13, Code Supplement 20 23 1995, is amended to read as follows: 20 24 13. a. A member who retired from the system between 20 25 January 1, 1976, and June 30, 1982, or a contingent annuitant 20 26 or beneficiary of such a member, shall receive with the 20 27 November1994 and the November 19951996 monthly benefit 20 28paymentspayment a retirement dividend equal toonetwo 20 29 hundredeighty-onetwenty-three percent of the monthly benefit 20 30 payment the member received for the preceding June, or the 20 31 most recently received benefit payment, whichever is greater. 20 32 The retirement dividend does not affect the amount of a 20 33 monthly benefit payment. 20 34 b. Each member who retired from the system between July 4, 20 35 1953, and December 31, 1975, or a contingent annuitant or 21 1 beneficiary of such a member, shall receive with the November 21 21994 and the November 19951996 monthly benefitpayments21 3 payment a retirement dividend equal to two hundredthirty-six21 4 ninety-two percent of the monthly benefit payment the member 21 5 received for the preceding June, or the most recently received 21 6 benefit payment, whichever is greater. The retirement 21 7 dividend does not affect the amount of a monthly benefit 21 8 payment. 21 9 c. Notwithstanding the determination of the amount of a 21 10 retirement dividend under paragraph "a", "b", "d",or"f", or 21 11 "g", a retirement dividend shall not be less than twenty-five 21 12 dollars. 21 13 d. A member who retired from the system between July 1, 21 14 1982, and June 30, 1986, or a contingent annuitant or 21 15 beneficiary of such a member, shall receive with the November 21 161994 and the November 19951996 monthly benefitpayments21 17 payment a retirement dividend equal toforty-nineseventy-four 21 18 percent of the monthly benefit payment the member received for 21 19 the preceding June, or the most recently received benefit 21 20 payment, whichever is greater. The retirement dividend does 21 21 not affect the amount of a monthly benefit payment. 21 22 e. If the member dies on or after July 1 of the dividend 21 23 year but before the payment date, the full amount of the 21 24 retirement dividend for that year shall be paidto the21 25designated beneficiaryto the member's account, upon 21 26 notification of the member's death.If there is no21 27beneficiary designated by the member, the department shall pay21 28the dividend to the member's estate. The beneficiary, or the21 29representative of the member's estate, must apply for the21 30dividend within two years after the dividend is payable or the21 31dividend is forfeited.21 32 f. A member who retired from the system between July 1, 21 33 1986, and June 30, 1990, or a contingent annuitant or 21 34 beneficiary of such a member, shall receive with the November 21 35 1996and the November 1997monthly benefitpaymentspayment a 22 1 retirement dividendin an amount determined by the general22 2assemblyequal to twenty-four percent of the monthly benefit 22 3 payment the member received for the preceding June, or the 22 4 most recently received benefit payment, whichever is greater. 22 5 The retirement dividend does not affect the amount of a 22 6 monthly benefit payment. 22 7 Sec. 35. Section 97B.49, subsection 13, Code Supplement 22 8 1995, is amended by adding the following new paragraph: 22 9 NEW PARAGRAPH. g. Effective July 1, 1997, commencing with 22 10 dividends payable in November 1997, and for each subsequent 22 11 year, all members who retired prior to July 1, 1990, shall be 22 12 eligible for annual dividend payments, payable in November of 22 13 that year, pursuant to the requirements of this paragraph. 22 14 The dividend payable in any given year shall be the sum of the 22 15 dollar amount of the dividend payable in the previous November 22 16 and the dividend adjustment. 22 17 The dividend adjustment for a given year shall be 22 18 calculated by multiplying the total of the retiree's monthly 22 19 benefit payments and the dividend payable to the retiree in 22 20 the previous calendar year by the applicable percentage as 22 21 determined by this paragraph. The applicable percentage shall 22 22 be the least of the following percentages: 22 23 (1) The percentage representing eighty percent of the 22 24 percentage increase in the consumer price index published in 22 25 the federal register by the federal department of labor, 22 26 bureau of labor statistics, that reflects the percentage 22 27 increase in the consumer price index for the twelve-month 22 28 period ending June 30 of the year that the dividend is to be 22 29 paid. 22 30 (2) The percentage representing the percentage amount the 22 31 actuary has certified, in the annual actuarial valuation of 22 32 the system as of June 30 of the year in which the dividend is 22 33 to be paid, that the fund can absorb without requiring an 22 34 increase in the employer and employee contributions to the 22 35 fund. 23 1 (3) Three percent. 23 2 The dividend determined pursuant to this paragraph shall 23 3 not be used to increase the monthly benefit amount payable. 23 4 Sec. 36. Section 97B.49, subsection 15, paragraph b, Code 23 5 Supplement 1995, is amended to read as follows: 23 6 b. For each active or inactive vested member retiring on 23 7 or after July 1, 1990, and before July 1, 1996, who is at 23 8 least fifty-five years of age and for which the sum of the 23 9 number of years of membership service and prior service and 23 10 the member's age in years as of the member's last birthday 23 11 equals or exceeds ninety-two, a monthly benefit shall be 23 12 computed which is equal to one-twelfth of the same percentage 23 13 of the three-year average covered wage of the member as is 23 14 provided in subsection 5. 23 15 Sec. 37. Section 97B.49, subsection 15, Code Supplement 23 16 1995, is amended by adding the following new paragraph: 23 17 NEW PARAGRAPH. c. For each active or inactive vested 23 18 member retiring on or after July 1, 1996, who is at least 23 19 fifty-five years of age and for which the sum of the number of 23 20 years of membership service and prior service and the member's 23 21 age in years as of the member's last birthday equals or 23 22 exceeds eighty-eight, a monthly benefit shall be computed 23 23 which is equal to one-twelfth of the same percentage of the 23 24 three-year average covered wage of the member as is provided 23 25 in subsection 5, multiplied by a fraction of years of service 23 26 as is provided in subsection 5. 23 27 Sec. 38. Section 97B.49, subsection 16, paragraph b, Code 23 28 Supplement 1995, is amended by adding the following new 23 29 subparagraph: 23 30 NEW SUBPARAGRAPH. (3) A member who retires from 23 31 employment as a county sheriff, deputy sheriff, or airport 23 32 fire fighter, who retires on or after July 1, 1996, and at the 23 33 time of retirement has completed a total of twenty-five years 23 34 of membership service with the last twelve years of membership 23 35 service as a county sheriff, deputy sheriff, or airport fire 24 1 fighter, may elect to receive in lieu of the receipt of any 24 2 benefits under subsection 5 or 15, or subparagraphs (1) and 24 3 (2) of this paragraph, a monthly retirement allowance equal to 24 4 one-twelfth of the applicable percentage multiplier of the 24 5 member's three-year average covered wage as is provided in 24 6 paragraph "a", with benefits payable during the member's 24 7 lifetime. 24 8 Sec. 39. Section 97B.49, subsection 16, paragraph d, 24 9 subparagraph (9), Code Supplement 1995, is amended to read as 24 10 follows: 24 11 (9) An employee of a judicial district department of 24 12 correctional services who is employed as a probation officer 24 13 II or III,ora parole officer II or III, or a residential 24 14 counselor. 24 15 Sec. 40. Section 97B.49, subsection 16, paragraph e, Code 24 16 Supplement 1995, is amended to read as follows: 24 17 e. Annually, the department of personnel shall actuarially 24 18 determine the cost of the additional benefits provided for 24 19 members covered under paragraph "a" and the cost of the 24 20 additional benefits provided for members covered under 24 21 paragraph "b" as percents of the covered wages of the 24 22 employees covered by this subsection. Sixty percent of the 24 23 cost shall be paid by the employers of employees covered under 24 24 this subsection and forty percent of the cost shall be paid by 24 25 the employees. The employer and employee contributions 24 26 required under this paragraph are in addition to the 24 27 contributions paid undersectionsections 97B.11 and 97B.11A. 24 28 Sec. 41. Section 97B.49, subsection 16, Code Supplement 24 29 1995, is amended by adding the following new paragraph: 24 30 NEW PARAGRAPH. m. For the fiscal year commencing July 1, 24 31 1992, and each succeeding fiscal year, the department of 24 32 public safety shall pay to the department of personnel from 24 33 funds appropriated to the department of public safety, the 24 34 amount necessary to pay the employer share of the cost of the 24 35 additional benefits provided to a fire protection inspector 25 1 peace officer pursuant to paragraph "d", subparagraph (8). 25 2 Sec. 42. Section 97B.49, Code Supplement 1995, is amended 25 3 by adding the following new subsection: 25 4 NEW SUBSECTION. 17. a. An active or inactive vested 25 5 member, who is or has been employed in both special service 25 6 and regular service, who retires on or after July 1, 1996, 25 7 with four or more completed years of service and at the time 25 8 of retirement is at least fifty-five years of age, may elect 25 9 to receive, in lieu of the receipt of any other benefits under 25 10 this section, a combined monthly retirement allowance equal to 25 11 the sum of the following: 25 12 (1) One-twelfth of an amount equal to the applicable 25 13 percentage multiplier established in subsection 5 of the 25 14 member's three-year average covered wage multiplied by a 25 15 fraction of years of service. The fraction of years of 25 16 service for purposes of this subparagraph shall be the actual 25 17 years of service, not to exceed twenty-two, earned in a 25 18 position described in subsection 16, paragraph "b", for which 25 19 special service contributions were made, divided by twenty- 25 20 two. 25 21 (2) One-twelfth of an amount equal to the applicable 25 22 percentage multiplier established in subsection 5 of the 25 23 member's three-year average covered wage multiplied by a 25 24 fraction of years of service. The fraction of years of 25 25 service for purposes of this subparagraph shall be the actual 25 26 years of service, not to exceed twenty-five, earned in a 25 27 position described in subsection 16, paragraph "a", for which 25 28 special service contributions were made, divided by twenty- 25 29 five. 25 30 (3) One-twelfth of an amount equal to the applicable 25 31 percentage multiplier established in subsection 5 of the 25 32 member's three-year average covered wage multiplied by a 25 33 fraction of years of service. The fraction of years of 25 34 service for purposes of this subparagraph shall be the actual 25 35 years of service, not to exceed thirty, for which regular 26 1 service contributions were made, divided by thirty. However, 26 2 any otherwise applicable age reduction for early retirement 26 3 shall apply to the calculation under this subparagraph. 26 4 In calculating the fractions of years of service under 26 5 subparagraphs (1) and (2), a member shall not receive special 26 6 service credit for years of service for which the member and 26 7 the member's employer did not make the required special 26 8 service contributions to the department. 26 9 b. In calculating the combined monthly retirement 26 10 allowance pursuant to paragraph "a", the sum of the fraction 26 11 of years of service provided in paragraph "a", subparagraphs 26 12 (1), (2), and (3), shall not exceed one. If the sum of the 26 13 fractions of years of service would exceed one, the department 26 14 shall deduct years of service first from the calculation under 26 15 paragraph "a", subparagraph (3), and then from the calculation 26 16 under paragraph "a", subparagraph (2), if necessary, so that 26 17 the sum of the fractions of years of service shall equal one. 26 18 c. (1) In calculating the combined monthly retirement 26 19 allowance pursuant to paragraph "a", and in determining the 26 20 applicable percentage multiplier established in subsection 5, 26 21 the member shall be entitled to an addition in the percentage 26 22 multiplier in accordance with subsection 5, paragraph "e", 26 23 only for those years of service in excess of thirty years. 26 24 Any addition in the percentage multiplier shall be included in 26 25 the calculations required under paragraph "a", subparagraphs 26 26 (1), (2), and (3) of this subsection. 26 27 (2) In calculating the combined monthly retirement 26 28 allowance pursuant to paragraph "a", for members retiring on 26 29 or after July 1, 1997, whose three-year average covered wage 26 30 exceeds fifty-five thousand dollars, each calculation under 26 31 paragraph "a", subparagraphs (1), (2), and (3) of this 26 32 subsection shall be subject to reduction, calculated in the 26 33 manner provided in subsection 5, paragraph "f". 26 34 Sec. 43. Section 97B.50, subsection 2, Code 1995, is 26 35 amended to read as follows: 27 1 2. a. A vested member who retires from the system due to 27 2 disability and commences receiving disability benefits 27 3 pursuant to the federal Social Security Act, 42 U.S.C. } 423 27 4 et seq., and who has not reached the normal retirement date, 27 5 shall receive benefits under section 97B.49 and shall not have 27 6 benefits reduced upon retirement as required under subsection 27 7 1 regardless of whether the member has completed thirty or 27 8 more years of membership service. However, the benefits shall 27 9 be suspended during any period in which the member returns to 27 10 covered employment. This section takes effect July 1, 1990, 27 11 for a member meeting the requirements of this paragraph who 27 12 retired from the system at any time after July 4, 1953. 27 13 Eligible members are entitled to the receipt of retroactive 27 14 adjustment payments back to July 1, 1990, notwithstanding the 27 15 requirements of subsection 4. 27 16 b. A vested member who retires from the system due to 27 17 disability and commences receiving disability benefits 27 18 pursuant to the federal Railroad Retirement Act, 45 U.S.C. } 27 19 231 et seq., and who has not reached the normal retirement 27 20 date, shall receive benefits under section 97B.49 and shall 27 21 not have benefits reduced upon retirement as required under 27 22 subsection 1 regardless of whether the member has completed 27 23 thirty or more years of membership service. However, the 27 24 benefits shall be suspended during any period in which the 27 25 member returns to covered employment. This section takes 27 26 effect July 1, 1990, for a member meeting the requirements of 27 27 this paragraph who retired from the system at any time since 27 28 July 4, 1953. Eligible members are entitled to the receipt of 27 29 retroactive adjustment payments back to July 1, 1990, 27 30 notwithstanding the requirements of subsection 4. 27 31 Sec. 44. NEW SECTION. 97B.50A ACCIDENTAL DISABILITY 27 32 BENEFITS FOR SHERIFFS, DEPUTY SHERIFFS, AIRPORT FIRE FIGHTERS, 27 33 AND MEMBERS OF A PROTECTION OCCUPATION. 27 34 1. DEFINITIONS. For purposes of this section, unless the 27 35 context otherwise provides, "member" means a vested member who 28 1 is classified as a sheriff, deputy sheriff, or airport fire 28 2 fighter or as a vested member of a protection occupation under 28 3 section 97B.49, subsection 16, at the time of the alleged 28 4 disability. 28 5 2. ACCIDENTAL DISABILITY RETIREMENT ALLOWANCE. 28 6 a. Effective January 1, 1997, a member who is injured in 28 7 the performance of the member's duties, and otherwise meets 28 8 the requirements of this section shall receive an accidental 28 9 disability retirement allowance under the provisions of this 28 10 section, in lieu of a monthly retirement allowance as provided 28 11 in section 97B.49 or benefits calculated as provided in 28 12 section 97B.50, subsection 2. 28 13 b. Upon application of a member, a member who has become 28 14 totally and permanently incapacitated for duty as the natural 28 15 and proximate result of an injury, disease, or exposure 28 16 occurring or aggravated while in the actual performance of 28 17 duty shall be retired by the department, provided that the 28 18 medical board shall certify that the member is mentally or 28 19 physically incapacitated for further performance of duty, that 28 20 the incapacity is likely to be permanent, and that the member 28 21 should be retired. The department shall make the final 28 22 determination, based on the medical evidence received, of a 28 23 member's total and permanent disability. However, if a 28 24 person's membership in the system first commenced on or after 28 25 January 1, 1997, the member shall not be eligible for benefits 28 26 with respect to a disability which would not exist, but for a 28 27 medical condition that was known to exist on the date that 28 28 membership commenced. 28 29 c. Disease under this section shall mean heart disease or 28 30 any disease of the lungs or respiratory tract and shall be 28 31 presumed to have been contracted while on active duty as a 28 32 result of strain, exposure, or the inhalation of noxious 28 33 fumes, poison, or gases. However, if a person's membership in 28 34 the system first commenced on or after January 1, 1997, and 28 35 the heart disease or disease of the lungs or respiratory tract 29 1 would not exist, but for a medical condition that was known to 29 2 exist on the date that membership commenced, the presumption 29 3 established in this paragraph shall not apply. 29 4 d. Any amounts which may be paid or payable by the 29 5 employer under the provisions of any workers' compensation or 29 6 other law to a member, or to the dependents of a member on 29 7 account of any disability, shall not be offset against and 29 8 payable in lieu of any retirement allowance payable pursuant 29 9 to this section on account of the same disability. 29 10 3. RETIREMENT AFTER ACCIDENT. 29 11 Upon retirement for an accidental disability as provided by 29 12 this section, a member shall receive the greater of a monthly 29 13 accidental disability retirement allowance calculated under 29 14 this section or a disability retirement allowance calculated 29 15 under section 97B.50, subsection 2. The monthly accidental 29 16 disability allowance calculated under this section shall 29 17 consist of an allowance equal to one-twelfth of thirty-three 29 18 and one-third percent of the member's three-year average 29 19 covered wage at the time of disability. 29 20 4. REEXAMINATION &endash; REEMPLOYMENT OF MEMBERS RETIRED ON 29 21 ACCOUNT OF AN ACCIDENTAL DISABILITY. 29 22 a. Once each year during the first five years following 29 23 the retirement of a member under this section, and once in 29 24 every three-year period thereafter, the department may, and 29 25 upon the member's application shall, require any member 29 26 receiving an accidental disability retirement allowance who 29 27 has not yet attained the age of fifty-five years to undergo a 29 28 medical examination as arranged by the medical board. The 29 29 examination shall be made by the medical board or by an 29 30 additional physician or physicians designated by the board. 29 31 If any member receiving an accidental disability retirement 29 32 allowance who has not attained the age of fifty-five years 29 33 refuses to submit to the medical examination, the allowance 29 34 may be discontinued until the member's withdrawal of the 29 35 refusal, and should the member's refusal continue for one 30 1 year, all rights in and to the member's disability retirement 30 2 allowance shall be revoked by the department. 30 3 b. If a member receiving a disability retirement allowance 30 4 is returned to covered employment, the member's disability 30 5 retirement allowance shall cease, the member shall again 30 6 become an active member, and shall contribute thereafter at 30 7 the same rate payable by similarly classified members. Upon 30 8 subsequent retirement, the member's retirement allowance shall 30 9 be calculated as provided in section 97B.48A. 30 10 5. DEATH BENEFITS. A member who is receiving an 30 11 accidental disability retirement allowance under this section 30 12 shall be treated as having elected a lifetime monthly 30 13 retirement allowance with no death benefit unless the member 30 14 elects an optional form of benefit provided under section 30 15 97B.51, which shall be actuarially equivalent to the lifetime 30 16 monthly retirement allowance provided under subsection 3. 30 17 6. MEDICAL BOARD. The system shall designate a medical 30 18 board to be composed of three physicians who shall arrange for 30 19 and pass upon the medical examinations required under the 30 20 provisions of this section and shall report in writing to the 30 21 department the conclusions and recommendations upon all 30 22 matters duly referred to the medical board. Each report of a 30 23 medical examination under this section shall include the 30 24 medical board's findings as to the extent of the member's 30 25 physical impairment. 30 26 7. RULES. The department shall adopt rules pursuant to 30 27 chapter 17A specifying the application procedure for members 30 28 pursuant to this section. 30 29 Sec. 45. Section 97B.51, subsection 3, Code Supplement 30 30 1995, is amended to read as follows: 30 31 3. A member who had elected to take the option stated in 30 32 subsection 1 of this section may, at any time prior to 30 33 retirement, revoke such an election by written notice to the 30 34 department. A member shall not change or revoke an election 30 35 once the first retirement allowance is paid. 31 1 Sec. 46. Section 97B.51, subsection 5, Code Supplement 31 2 1995, is amended to read as follows: 31 3 5. At retirement, a member may designate that upon the 31 4 member's death, a specified amount of money shall be paid to a 31 5 named beneficiary, and the member's monthly retirement 31 6 allowance shall be reduced by an actuarially determined amount 31 7 to provide for the lump sum payment. The amount designated by 31 8 the member must be in thousand dollar increments, and theand 31 9 shall be limited to the amount of the member's accumulated 31 10 contributions. The amount designated shall not lower the 31 11 monthly retirement allowance of the member by more than one- 31 12 half the amount payable under section 97B.49, subsection 1 or 31 13 5. A member may designate a different beneficiary if the 31 14 original named beneficiary predeceases the member. 31 15 Sec. 47. Section 97B.51, subsection 6, Code Supplement 31 16 1995, is amended to read as follows: 31 17 6. A member may elect to receive a decreased retirement 31 18 allowance during the member's lifetime with provision that in 31 19 event of the member's death during the first one hundred 31 20 twenty months of retirement, monthly payments of the member's 31 21 decreased retirement allowance shall be made to the member's 31 22 beneficiary until a combined total of one hundred twenty 31 23 monthly payments have been made to the member and the member's 31 24 beneficiary. When the member designates multiple 31 25 beneficiaries, the present value of the remaining payments 31 26 shall be paid in a lump sum to each beneficiary, either in 31 27 equal shares to the beneficiaries, or if the member specifies 31 28 otherwise in a written request, in the specified proportion. 31 29 A member may designate a different beneficiary if the original 31 30 named beneficiary predeceases the member. 31 31 Sec. 48. Section 97B.52, subsection 1, Code Supplement 31 32 1995, is amended to read as follows: 31 33 1. If a member dies prior to the member's first month of 31 34 entitlement, the accumulated contributions of the member at 31 35 the date of death plus the product of an amount equal to the 32 1 highest year of covered wages of the deceased member and the 32 2 number of years of membership service divided bythirtythe 32 3 applicable denominator shall be paid to the member's 32 4 beneficiary in a lump sum payment. However, a lump sum 32 5 payment made to a beneficiary under this subsection due to the 32 6 death of a member shall not be less than the amount that would 32 7 have been payable on the death of the member on June 30, 1984, 32 8 under this subsection as it appeared in the 1983 Code. 32 9 As used in this subsection, "applicable denominator" means 32 10 the following, based upon the type of membership service in 32 11 which the member served either on the date of death, or if the 32 12 member died after terminating service, on the date of the 32 13 member's last termination of service: 32 14 a. For regular service, the applicable denominator is 32 15 thirty. 32 16 b. For service in a protection occupation, as defined in 32 17 section 97B.49, subsection 16, paragraph "d", the applicable 32 18 denominator is twenty-five. 32 19 c. For service as a sheriff, deputy sheriff, or airport 32 20 fire fighter, as provided in section 97B.49, subsection 16, 32 21 paragraph "b", the applicable denominator is twenty-two. 32 22 Effective July 1, 1978, a method of payment under this 32 23 subsection filed with the department by a member does not 32 24 apply. 32 25 Sec. 49. Section 97B.52, subsection 3, paragraph b, Code 32 26 Supplement 1995, is amended to read as follows: 32 27 b. If a death benefit is due and payable, interest shall 32 28 continue to accumulate through the month preceding the month 32 29 in which payment is made to the designated beneficiary, heirs 32 30 at law, or the estate unless the payment of the death benefit 32 31 is delayed because of a dispute between alleged heirs, in 32 32 which case the benefit due and payable shall be placed in a 32 33 noninterest bearing escrow account until the beneficiary is 32 34 determined in accordance with this section. In order to 32 35 receive the death benefit, the beneficiary, heirs at law, or 33 1 the estate, or any other third-party payee, must apply to the 33 2 department withintwofive years of the member's death. 33 3 The department shall reinstate a designated beneficiary's 33 4 right to receive a death benefit beyond the five-year 33 5 limitation if the designated beneficiary was the member's 33 6 spouse at the time of the member's death and the distribution 33 7 is required or permitted pursuant to Internal Revenue Code 33 8 section 401(a)(9) and the applicable treasury regulations. 33 9 Sec. 50. Section 97B.52, subsection 5, Code Supplement 33 10 1995, is amended to read as follows: 33 11 5. Following written notification to the department, a 33 12 beneficiary of a deceased member may waive current and future 33 13 rights to payments to which the beneficiary would otherwise be 33 14 entitled under sections 97B.51 and this section. Upon receipt 33 15 of the waiver, the department shall payto the estate of the33 16deceased memberthe amount designated to be received bythe33 17 that beneficiary to the member's other surviving beneficiary 33 18 or beneficiaries or to the estate of the deceased member, as 33 19 elected by the beneficiary in the waiver. If the payments 33 20 being waived are payable to the member's estate and an estate 33 21 is not probated, the payments shall be paid to the deceased 33 22 member's surviving spouse, or if there is no surviving spouse, 33 23 to the member's heirs other than the beneficiary who waived 33 24 the payments. 33 25 Sec. 51. Section 97B.52A, Code Supplement 1995, is amended 33 26 by adding the following new subsection: 33 27 NEW SUBSECTION. 3. A member who terminates covered 33 28 employment but maintains an employment relationship with an 33 29 employer that made contributions to the system on the member's 33 30 behalf does not have a bona fide retirement until all 33 31 employment, including employment which is not covered by this 33 32 chapter, with such employer is terminated for at least thirty 33 33 days. In order to receive retirement benefits, the member 33 34 must file a completed application for benefits form with the 33 35 department before returning to any employment with the same 34 1 employer. 34 2 Sec. 52. Section 97B.53, subsection 3, Code Supplement 34 3 1995, is amended to read as follows: 34 4 3. The accumulated contributions of a terminated, vested 34 5 member shall be credited with interest, including interest 34 6 dividends, in the manner provided in section 97B.70. Interest 34 7 and interest dividends shall be credited to the accumulated 34 8 contributions of members who terminate service and 34 9 subsequently become vested in accordance with section 97B.70. 34 10However, the department shall not implement the amendments to34 11this subsection or to subsection 6, unnumbered paragraph 1, or34 12to subsection 7, as enacted in 1994 Iowa Acts, chapter 1183,34 13unless and until the department determines that the most34 14recent annual actuarial valuation of the retirement system34 15indicates that the employer and employee contribution rates in34 16effect under section 97B.11 can absorb the amendments to these34 17provisions of this section and the amendments to section34 1897B.41, subsection 12, and section 97B.70, by enacting a new34 19subsection 4, contained in 1994 Iowa Acts, chapter 1183, after34 20meeting the other established priorities of the system, as34 21defined in section 97B.41, subsection 12. Until the34 22amendments are implemented, the department shall continue to34 23implement the provisions of section 97B.53, subsections 3 and34 247, and section 97B.53, subsection 6, unnumbered paragraph 1,34 251993 Code of Iowa.34 26 Sec. 53. Section 97B.53B, subsection 1, paragraph c, 34 27 subparagraph (4), Code 1995, is amended to read as follows: 34 28 (4)A distributionAnnual distributions of less than two 34 29 hundred dollars of taxable income. 34 30 Sec. 54. Section 97B.66, unnumbered paragraph 1, Code 34 31 Supplement 1995, is amended to read as follows: 34 32 A vested or retired member who was a member of the teachers 34 33 insurance and annuity association-college retirement equity 34 34 fund at any time between July 1, 1967 and June 30, 1971 and 34 35 who became a member of the system on July 1, 1971, upon 35 1 submitting verification of service and wages earned during the 35 2 applicable period of service under the teachers insurance and 35 3 annuity association-college retirement equity fund, may make 35 4 employer and employee contributions to the system based upon 35 5 the covered wages of the member and the covered wages and the 35 6 contribution rates in effect for all or a portion of that 35 7 period of service and receive credit for membership service 35 8 under this system equivalent to the applicable period of 35 9 membership service in the teachers insurance and annuity 35 10 association-college retirement equity fund for which the 35 11 contributions have been made. In addition, a member making 35 12 employer and employee contributions because of membership in 35 13 the teachers insurance and annuity association-college 35 14 retirement equity fund under this section who was a member of 35 15 the system on June 30, 1967 and withdrew the member's 35 16 accumulated contributions because of membership on July 1, 35 17 1967 in the teachers insurance and annuity association-college 35 18 retirement equity fund, may make employee contributions to the 35 19 system for all or a portion of the period of service under the 35 20 system prior to July 1, 1967. A member making contributions 35 21 pursuant to this section may make the contributions either for 35 22 the entire applicable period of service, or, effective upon35 23the date that the department determines that the amendments to35 24this paragraph and unnumbered paragraph 2 contained in 199435 25Iowa Acts, chapter 1183, shall be implemented,for portions of 35 26 the period of service, and if contributions are made for 35 27 portions of the period of service, the contributions shall be 35 28 in increments of one or moreyears, as long as the increments35 29represent full years and not a portion of a yearcalendar 35 30 quarters.However, the department shall not implement the35 31amendments to this paragraph or unnumbered paragraph 2, as35 32enacted in 1994 Iowa Acts, chapter 1183, unless and until the35 33department determines that the most recent annual actuarial35 34valuation of the retirement system indicates that the employer35 35and employee contribution rates in effect under section 97B.1136 1can absorb the amendments to this paragraph and unnumbered36 2paragraph 2 and to section 97B.72, unnumbered paragraphs 1 and36 32, section 97B.72A, subsection 1, unnumbered paragraph 1,36 4section 97B.73A, unnumbered paragraph 1, and section 97B.74,36 5unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,36 6chapter 1183, after meeting the other established priority of36 7the system. Until the amendments are implemented, the36 8department shall continue to implement the provisions of36 9section 97B.66, unnumbered paragraphs 1 and 2, Code Supplement36 101993. As used in this section, unless the context otherwise36 11requires, "other established priority of the system" means36 12that commencing January 1 following the most recent annual36 13actuarial valuation of the system, the department has36 14increased the covered wage limitation from the previous year36 15by three thousand dollars, in accordance with section 97B.41,36 16subsection 20, paragraph "b", subparagraph (11).36 17 Sec. 55. Section 97B.66, unnumbered paragraph 2, Code 36 18 Supplement 1995, is amended to read as follows: 36 19 The contributions paid by the vested or retired member 36 20 shall be equal to the accumulated contributions as defined in 36 21 section 97B.41, subsection 2, by the member for the applicable 36 22 period of service, and the employer contribution for the 36 23 applicable period of service under the teachers insurance and 36 24 annuity association-college retirement equity fund, that would 36 25 have been or had been contributed by the vested or retired 36 26 member and the employer, if applicable, plus interest on the 36 27 contributions that would have accrued for the applicable 36 28 period from the date the previous applicable period of service 36 29 commenced under this system or from the date the service of 36 30 the member in the teachers insurance and annuity association- 36 31 college retirement equity fund commenced to the date of 36 32 payment of the contributions by the memberequal to two36 33percent plus the interest dividend rate applicable for each36 34yearas provided in section 97B.70. 36 35 Sec. 56. Section 97B.68, subsection 1, Code 1995, is 37 1 amended to read as follows: 37 2 1. Effective July 1,19881996, a person who is a member 37 3 of the federal civil service retirement program or the federal 37 4 employee's retirement system is not eligible for membership in 37 5 the Iowa public employees' retirement system for the same 37 6 position, and this chapter does not apply to that employee. 37 7 An employee whose membership in the federal civil service 37 8 retirement program or the federal employee's retirement system 37 9 is subsequently terminated shall immediately notify the 37 10 employee's employer and the department of personnel of that 37 11 fact, and the employee shall become subject to this chapter on 37 12 the date the notification is received by the department. 37 13 Sec. 57. Section 97B.68, Code 1995, is amended by adding 37 14 the following new subsection: 37 15 NEW SUBSECTION. 3. Effective July 1, 1996, an employee 37 16 who participates in the federal civil service retirement 37 17 program or the federal employee's retirement system may be 37 18 covered under this chapter if otherwise eligible. The 37 19 employee shall not be covered under this chapter, however, 37 20 unless the employee is not credited for service in the federal 37 21 civil service retirement system or the federal employee's 37 22 retirement system for the position to be covered under this 37 23 chapter. This subsection shall not be construed to permit any 37 24 employer to contribute on behalf of an employee for the same 37 25 position for and the same period of service to both the Iowa 37 26 public employees' retirement system and either the federal 37 27 civil service retirement program or the federal employee's 37 28 retirement system. 37 29 Sec. 58. Section 97B.70, Code Supplement 1995, is amended 37 30 to read as follows: 37 31 97B.70 INTEREST AND DIVIDENDS TO MEMBERS. 37 32 1.InterestFor calendar years prior to January 1, 1997, 37 33 interest at two percent per annum and interest dividends 37 34 declared by the department shall be credited to the member's 37 35 contributions and the employer's contributions to become part 38 1 of the accumulated contributions thereby. 38 21.a. The average rate of interest earned shall be 38 3 determined upon the following basis: 38 4a.(1) Investment income shall include interest and cash 38 5 dividends on stock. 38 6b.(2) Investment income shall be accounted for on an 38 7 accrual basis. 38 8c.(3) Capital gains and losses, realized or unrealized, 38 9 shall not be included in investment income. 38 10d.(4) Mean assets shall include fixed income investments 38 11 valued at cost or on an amortized basis, and common stocks at 38 12 market values or cost, whichever is lower. 38 13e.(5) The average rate of earned interest shall be the 38 14 quotient of the investment income and the mean assets of the 38 15 retirement fund. 38 162.b. The interest dividend shall be determined within 38 17 sixty days after the end of each calendar year as follows: 38 18 The dividend rate for a calendar year shall be the excess 38 19 of the average rate of interest earned for the year over the 38 20 statutory two percent rate plus twenty-five hundredths of one 38 21 percent. The average rate of interest earned and the interest 38 22 dividend rate in percent shall be calculated to the nearest 38 23 one hundredth, that is, to two decimal places. Interest and 38 24 interest dividends calculated pursuant to this subsection 38 25 shall be compounded annually. 38 26 2. For calendar years beginning January 1, 1997, a per 38 27 annum interest rate at one percent above the interest rate on 38 28 one-year certificates of deposit shall be credited to the 38 29 member's contributions and the employer's contributions to 38 30 become part of the accumulated contributions. For purposes of 38 31 this subsection, the interest rate on one-year certificates of 38 32 deposit shall be determined by the department based on the 38 33 average rate for such certificates of deposit as of January 10 38 34 of each year as published in a publication of general 38 35 acceptance in the business community. The per annum interest 39 1 rate shall be credited on a quarterly basis by applying one- 39 2 quarter of the annual interest rate to the sum of the 39 3 accumulated contributions as of the end of the previous 39 4 calendar quarter. 39 5 3. Interest and interest dividends shall be credited to 39 6 the contributions of active members and inactive vested 39 7 members until the first of the month coinciding with or next 39 8 following the member's retirement date. 39 9 4.Effective upon the date that the department determines39 10that this subsection shall be implemented, interestInterest 39 11 and interest dividends shall be credited to the contributions 39 12 of a person who leaves the contributions in the retirement 39 13 fund upon termination from covered employment prior to 39 14 achieving vested status, but who subsequently achieves vested 39 15 status. The interest and interest dividends shall be credited 39 16 to the contributions commencingeitheruponthe date that the39 17department determines that this subsection shall be39 18implemented, orthe date on which the person becomes a vested 39 19 member, whichever is later. Interest and interest dividends 39 20 shall cease upon the first of the month coinciding with or 39 21 next following the person's retirement date. If the 39 22 department no longer maintains the accumulated contribution 39 23 account of the person pursuant to section 97B.53, but the 39 24 person submits satisfactory proof to the department that the 39 25 person did make the contributions, the department shall credit 39 26 interest and interest dividends in the manner provided in this 39 27 subsection.However, the department shall not implement this39 28subsection, unless and until the department determines that39 29the most recent annual actuarial valuation of the retirement39 30system indicates that the employer and employee contribution39 31rates in effect under section 97B.11 can absorb the enactment39 32of this subsection and the amendments to section 97B.41,39 33subsection 12, section 97B.53, subsections 3 and 7, and39 34section 97B.53, subsection 6, unnumbered paragraph 1,39 35contained in 1994 Iowa Acts, chapter 1183, after meeting the40 1other established priorities of the system, as defined in40 2section 97B.41, subsection 12.40 3 Sec. 59. Section 97B.72, unnumbered paragraphs 1 and 2, 40 4 Code Supplement 1995, are amended to read as follows: 40 5 Persons who are members of the Seventy-first General 40 6 Assembly or a succeeding general assembly who submit proof to 40 7 the department of membership in the general assembly during 40 8 any period beginning July 4, 1953, may make contributions to 40 9 the system for all or a portion of the period of service in 40 10 the general assembly, and receive credit for the applicable 40 11 period for which contributions are made. The contributions 40 12 made by the member shall be equal to the accumulated 40 13 contributions as defined in section 97B.41, subsection 2, 40 14 which would have been made if the member of the general 40 15 assembly had been a member of the system during the applicable 40 16 period. The proof of membership in the general assembly and 40 17 payment of accumulated contributions shall be transmitted to 40 18 the department. A member making contributions pursuant to 40 19 this section may make the contributions either for the entire 40 20 applicable period of service, or, effective upon the date that40 21the department determines that the amendments to this40 22paragraph and unnumbered paragraph 2 contained in 1994 Iowa40 23Acts, chapter 1183, shall be implemented,for portions of the 40 24 period of service, and if contributions are made for portions 40 25 of the period of service, the contributions shall be in 40 26 increments of one or moreyears, as long as the increments40 27represent full years and not a portion of a yearcalendar 40 28 quarters.However, the department shall not implement the40 29amendments to this paragraph or unnumbered paragraph 2, as40 30enacted in 1994 Iowa Acts, chapter 1183, unless and until the40 31department determines that the most recent annual actuarial40 32valuation of the retirement system indicates that the employer40 33and employee contribution rates in effect under section 97B.1140 34can absorb the amendments to this paragraph and unnumbered40 35paragraph 2 and to section 97B.66, unnumbered paragraphs 1 and41 12, section 97B.72A, subsection 1, unnumbered paragraph 1,41 2section 97B.73A, unnumbered paragraph 1, and section 97B.74,41 3unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,41 4chapter 1183, after meeting the other established priority of41 5the system, as defined in section 97B.66. Until the41 6amendments are implemented, the department shall continue to41 7implement the provisions of section 97B.72, unnumbered41 8paragraphs 1 and 2, Code Supplement 1993.41 9 There is appropriated from moneys available to the general 41 10 assembly under section 2.12 an amount sufficient to pay the 41 11 contributions of the employer based on the period of service 41 12 for which the members have paid accumulated contributions in 41 13 an amount equal to the contributions which would have been 41 14 made if the members of the general assembly who made employee 41 15 contributions had been members of the system during the 41 16 applicable period of service in the general assembly plustwo41 17percentinterestplusand interest dividends at the rate 41 18 provided in section 97B.70 for all completed calendar years, 41 19 and for any completed calendar year for which the interest 41 20 dividend has not been declared and for completed months of 41 21 partially completed calendar yearsat two percent interest41 22plus the interest dividend rate calculated for the previous41 23year, compoundedannually, from the end of the calendar year41 24in which contribution was made to the first day of the month41 25of such dateas provided in section 97B.70. 41 26 Sec. 60. Section 97B.72A, subsection 1, Code Supplement 41 27 1995, is amended to read as follows: 41 28 1.An active orA vested or retired member of the system 41 29 who was a member of the general assembly prior to July 1, 41 30 1988, may make contributions to the system for all or a 41 31 portion of the period of service in the general assembly. The 41 32 contributions made by the member shall be equal to the 41 33 accumulated contributions as defined in section 97B.41, 41 34 subsection 2, which would have been made if the member of the 41 35 general assembly had been a member of the system during the 42 1 applicable period of service in the general assembly. A 42 2 member making contributions pursuant to this section may make 42 3 the contributions either for the entire applicable period of 42 4 service, or for portions of the period of service, and,42 5effective upon the date that the department determines that42 6the amendments to this paragraph contained in 1994 Iowa Acts,42 7chapter 1183, shall be implemented,if contributions are made 42 8 for portions of the period of service, the contributions shall 42 9 be in increments of one or moreyears, as long as the42 10increments represent full years and not a portion of a year42 11 calendar quarters. The member of the system shall submit 42 12 proof to the department of membership in the general assembly. 42 13 The department shall credit the member with the period of 42 14 membership service for which contributions are made.However,42 15the department shall not implement the amendments to this42 16paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless42 17and until the department determines that the most recent42 18annual actuarial valuation of the retirement system indicates42 19that the employer and employee contribution rates in effect42 20under section 97B.11 can absorb the amendments to this42 21paragraph and to section 97B.66, unnumbered paragraphs 1 and42 222, section 97B.72, unnumbered paragraphs 1 and 2, section42 2397B.73A, unnumbered paragraph 1, and section 97B.74,42 24unnumbered paragraphs 1 and 2, contained in 1994 Iowa Acts,42 25chapter 1183, after meeting the other established priority of42 26the system, as defined in section 97B.66. Until the42 27amendments are implemented, the department shall continue to42 28implement the provisions of section 97B.72A, subsection 1,42 29unnumbered paragraph 1, Code Supplement 1993.42 30 There is appropriated from the general fund of the state to 42 31 the department an amount sufficient to pay the contributions 42 32 of the employer based on the period of service of members of 42 33 the general assembly for which the member paid accumulated 42 34 contributions under this section. The amount appropriated is 42 35 equal to the employer contributions which would have been made 43 1 if the members of the system who made employee contributions 43 2 had been members of the system during the period for which 43 3 they made employee contributions plustwo percentinterest 43 4plus the interest dividend rate applicableat the rate 43 5 provided in section 97B.70 for each year compoundedannually43 6 as provided in section 97B.70. 43 7 Sec. 61. Section 97B.73, unnumbered paragraph 1, Code 43 8 1995, is amended to read as follows: 43 9 A vested or retired member who was in public employment 43 10 comparable to employment covered under this chapter in another 43 11 state or in the federal government, or who was a member of 43 12 another public retirement system in this state, including but 43 13 not limited to the teachers insurance annuity association- 43 14 college retirement equities fund, but who was not retired 43 15 under that system, upon submitting verification of membership 43 16 and service in the other public system to the department, 43 17 including proof that the member has no further claim upon a 43 18 retirement benefit from that other public system, may make 43 19 employer and employee contributions to the system either for 43 20 the entire period of service in the other public system, or 43 21 for partial service in the other public system in increments 43 22 of one or moreyears, as long as the increments represent full43 23years and not a portion of a yearcalendar quarters.The43 24member may also make one lump sum contribution to the system43 25which represents the entire period of service in the other43 26public system, even if the period of time exceeds one year or43 27includes a portion of a year.If the member wishes to 43 28 transfer only a portion of the service value of another public 43 29 system to this system and the other public system allows a 43 30 partial withdrawal of a member's system credits, the member 43 31 shall receive credit for membership service in this system 43 32 equivalent to thenumber of yearsperiod of service 43 33 transferred from the other public system. The contribution 43 34 payable shall be based upon the member's covered wages for the 43 35 most recent full calendar year at the applicable rates in 44 1 effect for that calendar year under sections 97B.11 and 97B.49 44 2 and multiplied by the member's years of service in other 44 3 public employment. If the member's most recent covered wages 44 4 were earned prior to the most recent calendar year, the 44 5 member's covered wages shall be adjusted by the department by 44 6 an inflation factor to reflect changes in the economy since 44 7 the covered wages were earned. 44 8 Sec. 62. Section 97B.73A, unnumbered paragraph 1, Code 44 9 Supplement 1995, is amended to read as follows: 44 10 A part-time county attorney may elect in writing to the 44 11 department to make employee contributions to the system for 44 12 the county attorney's previous service as a county attorney 44 13 and receive credit for membership service in the system for 44 14 the applicable period of service as a part-time county 44 15 attorney for which employee contributions are made. The 44 16 contributions paid by the member shall be equal to the 44 17 accumulated contributions, as defined in section 97B.41, 44 18 subsection 2, for the applicable period of membership service. 44 19 A member making contributions pursuant to this section may 44 20 make the contributions either for the entire applicable period 44 21 of service, or, effective upon the date that the department44 22determines that the amendments to this paragraph contained in44 231994 Iowa Acts, chapter 1183, shall be implemented,for 44 24 portions of the period of service, and if contributions are 44 25 made for portions of the period of service, the contributions 44 26 shall be in increments of one or moreyears, as long as the44 27increments represent full years and not a portion of a year44 28 calendar quarters. A member who elects to make contributions 44 29 under this section shall notify the applicable county board of 44 30 supervisors of the member's election, and the county board of 44 31 supervisors shall pay to the department the employer 44 32 contributions that would have been contributed by the employer 44 33 under section 97B.11 plus interest on the contributions that 44 34 would have accrued if the county attorney had been a member of 44 35 the system for the applicable period of service.However, the45 1department shall not implement the amendments to this45 2paragraph, as enacted in 1994 Iowa Acts, chapter 1183, unless45 3and until the department determines that the most recent45 4annual actuarial valuation of the retirement system indicates45 5that the employer and employee contribution rates in effect45 6under section 97B.11 can absorb the amendments to this45 7paragraph and to section 97B.66, unnumbered paragraphs 1 and45 82, section 97B.72, unnumbered paragraphs 1 and 2, section45 997B.72A, subsection 1, unnumbered paragraph 1, and section45 1097B.74, unnumbered paragraphs 1 and 2, contained in 1994 Iowa45 11Acts, chapter 1183, after meeting the other established45 12priority of the system, as defined in section 97B.66. Until45 13the amendments are implemented, the department shall continue45 14to implement the provisions of section 97B.73A, unnumbered45 15paragraph 1, Code Supplement 1993.45 16 Sec. 63. Section 97B.74, unnumbered paragraphs 1 and 2, 45 17 Code Supplement 1995, are amended to read as follows: 45 18An active,A vested,or retired member who was a member of 45 19 the system at any time on or after July 4, 1953, and who 45 20 received a refund of the member's contributions for that 45 21 period of membership service, may elect in writing to the 45 22 department to make contributions to the system for all or a 45 23 portion of the period of membership service for which a refund 45 24 of contributions was made, and receive credit for the period 45 25 of membership service for which contributions are made. The 45 26 contributions repaid by the member for such service shall be 45 27 equal to the accumulated contributions, as defined in section 45 28 97B.41, subsection 2, received by the member for the 45 29 applicable period of membership service plus interest on the 45 30 accumulated contributions for the applicable period from the 45 31 date of receipt by the member to the date of repaymentequal45 32to two percent plusat the interestdividendrate provided in 45 33 section 97B.70 applicable for each year compoundedannuallyas 45 34 provided in section 97B.70. 45 35An active member must have at least one quarter's46 1reportable wages on file and have membership service,46 2including that period of membership service for which a refund46 3of contributions was made, sufficient to give the member46 4vested status.A member making contributions pursuant to this 46 5 section may make the contributions either for the entire 46 6 applicable period of service, or, effective upon the date that46 7the department determines that the amendments to this46 8paragraph and unnumbered paragraph 1 contained in 1994 Iowa46 9Acts, chapter 1183, shall be implemented,for portions of the 46 10 period of service, and if contributions are made for portions 46 11 of the period of service, the contributions shall be in 46 12 increments of one or moreyears, as long as the increments46 13represent full years and not a portion of a yearcalendar 46 14 quarters.However, the department shall not implement the46 15amendments to this paragraph or unnumbered paragraph 1, as46 16enacted in 1994 Iowa Acts, chapter 1183, unless and until the46 17department determines that the most recent annual actuarial46 18valuation of the retirement system indicates that the employer46 19and employee contribution rates in effect under section 97B.1146 20can absorb the amendments to this paragraph and to unnumbered46 21paragraph 1 and to section 97B.66, unnumbered paragraphs 1 and46 222, section 97B.72, unnumbered paragraphs 1 and 2, section46 2397B.72A, subsection 1, unnumbered paragraph 1, and section46 2497B.73A, unnumbered paragraph 1, contained in 1994 Iowa Acts,46 25chapter 1183, after meeting the other established priority of46 26the system, as defined in section 97B.66. Until the46 27amendments are implemented, the department shall continue to46 28implement the provisions of section 97B.74, unnumbered46 29paragraphs 1 and 2, Code Supplement 1993.46 30 Sec. 64. Section 97B.80, unnumbered paragraph 1, Code 46 31 1995, is amended to read as follows: 46 32 Effective July 1, 1992, a vested or retired member, who at 46 33 any time served on active duty in the armed forces of the 46 34 United States, upon submitting verification of the dates of 46 35 the active duty service, may make employer and employee 47 1 contributions to the system based upon the member's covered 47 2 wages for the most recent full calendar year in which the 47 3 member had reportable wages at the applicable rates in effect 47 4 for that year under sections 97B.11 and 97B.49, for all or a 47 5 portion of the period of time of the active duty service, in 47 6 increments ofno greater than one year and not less thanone 47 7 or more calendarquarterquarters, and receive credit for 47 8 membership service and prior service for the period of time 47 9 for which the contributions are made.However, the member may47 10not make contributions in an increment of less than one year47 11more than once. The member may also make one lump sum47 12contribution to the system which represents the period of time47 13of the active duty service, even if the period of time exceeds47 14one year.If the member's most recent covered wages were 47 15 earned prior to the most recent calendar year, the member's 47 16 covered wages shall be adjusted by the department by an 47 17 inflation factor to reflect changes in the economy. The 47 18 department shall adjust benefits for a six-month period prior 47 19 to the date the member pays contributions under this section 47 20 if the member is receiving a retirement allowance at the time 47 21 the contribution payment is made. Verification of active duty 47 22 service and payment of contributions shall be made to the 47 23 department. However, a member is not eligible to make 47 24 contributions under this section if the member is receiving, 47 25 is eligible to receive, or may in the future be eligible to 47 26 receive retirement pay from the United States government for 47 27 active duty in the armed forces, except for retirement pay 47 28 granted by the United States government under retired pay for 47 29 nonregular service (10 U.S.C. } 1331, et seq.). A member 47 30 receiving retired pay for nonregular service who makes 47 31 contributions under this section shall provide information 47 32 required by the department documenting time periods covered 47 33 under retired pay for nonregular service. 47 34 DIVISION II 47 35 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 48 1 ACCIDENT, AND DISABILITY SYSTEM 48 2 Sec. 65. Section 97A.5, subsection 9, Code 1995, is 48 3 amended to read as follows: 48 4 9. DUTIES OFCOMMISSIONER OF INSURANCEACTUARY. Thestate48 5commissioner of insuranceactuary hired by the board of 48 6 trustees shall be the technical advisor of the board of 48 7 trustees on matters regarding the operation of the funds 48 8 created by the provisions of this chapter and shall perform 48 9 such other duties as are required in connection therewith. 48 10 Sec. 66. Section 97A.5, subsections 10 through 12, Code 48 11 1995, are amended to read as follows: 48 12 10. TABLES &endash; RATES.Immediately after the establishment48 13of this system, the state commissioner of insuranceThe 48 14 actuary hired by the board of trustees shall make such 48 15 investigation of anticipated interest earnings and of the 48 16 mortality, service, and compensation experience of the members 48 17 of the system as the actuaryshall recommend and the board of48 18trustees shall authorizerecommends, and on the basis ofsuch48 19 the investigation, theactuary shall recommend for adoption by48 20theboard of trusteessuchshall adopt the tables andsuchthe 48 21 rates as are required in subsection 11 of this section. The 48 22 board of trustees shall adopt the rate of interest and tables, 48 23 and certify rates of contributions to be used by the system. 48 24 11. ACTUARIAL INVESTIGATION.In the year 1952, and atAt 48 25 least once in each two-year periodthereafter,the state48 26commissioner of insurancethe actuary hired by the board of 48 27 trustees shall make an actuarial investigation in the 48 28 mortality, service, and compensation experience of the members 48 29 and beneficiaries of the system, and the interest and other 48 30 earnings on the moneys and other assets of the system, and 48 31 shall make a valuation of the assets and liabilities of the 48 32 funds of the system, and taking into account the results of 48 33suchthe investigation and valuation, the board of trustees 48 34 shall: 48 35 a. Adopt for the system such interest rate, mortality and 49 1 other tables as shall be deemed necessary; 49 2 b. Certify the rates of contribution payable by the state 49 3 of Iowa in accordance with section 97A.8. 49 4 12. VALUATION. On the basis ofsuchthe rate of interest 49 5 andsuchtablesasadopted by the board of trusteesshall49 6adopt,the state commissioner of insurancethe actuary hired 49 7 by the board of trustees shall make an annual valuation of the 49 8 assets and liabilities of the funds of the system created by 49 9 this chapter. 49 10 Sec. 67. Section 97A.5, Code 1995, is amended by adding 49 11 the following new subsections: 49 12 NEW SUBSECTION. 14. INVESTMENT CONTRACTS. The board of 49 13 trustees may execute contracts and agreements with investment 49 14 advisors, consultants, and investment management and benefit 49 15 consultant firms in the administration of the funds 49 16 established in section 97A.8. 49 17 NEW SUBSECTION. 15. LIABILITY. The department, the board 49 18 of trustees, and the treasurer of state are not personally 49 19 liable for claims based upon an act or omission of the person 49 20 performed in the discharge of the person's duties under this 49 21 chapter, even if those actions or omissions violate the 49 22 standards established in section 97A.7, except for acts or 49 23 omissions which involve malicious or wanton misconduct. 49 24 Sec. 68. Section 97A.6, subsection 1, paragraph a, Code 49 25 1995, is amended to read as follows: 49 26 a. Any member in service may retire upon the member's 49 27 written application to the board of trustees, setting forth at 49 28 what time, not less than thirty nor more than ninety days 49 29 subsequent to the execution and filing therefor, the member 49 30 desires to be retired, provided, that the said member at the 49 31 time so specified for retirement shall have attained the age 49 32 of fifty-five and shall have completed twenty-two years or 49 33 more of creditable service, and notwithstanding that, during 49 34 such period of notification, the member may have separated 49 35 from the service. However, a member may retire at fifty years 50 1 of age and receive a reduced retirement allowance pursuant to 50 2 subsection 2A. 50 3 Sec. 69. Section 97A.6, subsection 2, paragraph d, 50 4 subparagraph (3), Code 1995, is amended to read as follows: 50 5 (3) For a member who terminates service, other than by 50 6 death or disability, on or after October 16, 1992, but before 50 7 July 1, 1996, and who does not withdraw the member's 50 8 contributions pursuant to section 97A.16, upon the member's 50 9 retirement there shall be added six-tenths percent of the 50 10 member's average final compensation for each year of service 50 11 over twenty-two years. However, this subparagraph does not 50 12 apply to more than eight additional years of service. 50 13 Sec. 70. Section 97A.6, subsection 2, paragraph d, Code 50 14 1995, is amended by adding the following new subparagraph: 50 15 NEW SUBPARAGRAPH. (4) For a member who terminates 50 16 service, other than by death or disability, on or after July 50 17 1, 1996, and who does not withdraw the member's contributions 50 18 pursuant to section 97A.16, upon the member's retirement there 50 19 shall be added one and one-half percent of the member's 50 20 average final compensation for each year of service over 50 21 twenty-two years. However, this subparagraph does not apply 50 22 to more than eight additional years of service. 50 23 Sec. 71. Section 97A.6, subsection 10, Code 1995, is 50 24 amended to read as follows: 50 25 10. OPTIONAL ALLOWANCE. With the provision that no 50 26 optional selection shall be effective in case a beneficiary 50 27 dies within thirty days after retirement, in which event such 50 28 a beneficiary shall be considered as an active member at the 50 29 time of death, until the first payment on account of any 50 30 benefit becomes normally due, any beneficiary may elect to 50 31 receive the beneficiary's benefit in a retirement allowance 50 32 payable throughout life, or may elect to receive the actuarial 50 33 equivalent at that time of the beneficiary's retirement 50 34 allowance in a lesser retirement allowance payable throughout 50 35 life with the provision that an amount in money not exceeding 51 1 the amount of the beneficiary's accumulated contributions 51 2 shall be immediately paid in cash to such member or some other 51 3 benefit or benefits shall be paid either to the member or to 51 4 such person or persons as the member shall nominate, provided 51 5 such cash payment or other benefit or benefits, together with 51 6 the lesser retirement allowance, shall be certified by the 51 7state commissioner of insuranceactuary to be of equivalent 51 8 actuarial value to the member's retirement allowance and shall 51 9 be approved by the board of trustees; provided, that a cash 51 10 payment to such member or beneficiary at the time of 51 11 retirement of an amount not exceeding fifty percent of the 51 12 member's or beneficiary's accumulated contributions shall be 51 13 made by the board of trustees upon said member's or 51 14 beneficiary's election. 51 15 Sec. 72. Section 97A.6, subsection 12, unnumbered 51 16 paragraph 1, Code 1995, is amended to read as follows: 51 17 Pension to surviving spouse and children of deceased 51 18 pensioned members. In the event of the death of any member 51 19 receiving a retirement allowance under the provisions of 51 20 subsections 2, 2A, 4, or 6 of this section there shall be paid 51 21 a pension: 51 22 Sec. 73. Section 97A.6, subsection 12, paragraph a, Code 51 23 1995, is amended to read as follows: 51 24 a. To the member's surviving spouse, equal to one-half the 51 25 amount received by the deceased beneficiary, but in no 51 26 instance less than an amount equal totwentytwenty-five 51 27 percent of the monthly earnable compensation paid to an active 51 28 member having the rank of senior patrol officer of the Iowa 51 29 highway safety patrol, and in addition a monthly pension equal 51 30 to the monthly pension payable under subsection 9, paragraph 51 31 "c," of this section for each child under eighteen years of 51 32 age or twenty-two years of age if applicable; or 51 33 Sec. 74. Section 97A.6, subsection 14, paragraph a, 51 34 subparagraphs (1), (2), and (3), Code 1995, are amended to 51 35 read as follows: 52 1 (1)Twenty-fiveThirty percent for members receiving a 52 2 service retirement allowance and for beneficiaries receiving a 52 3 pension under subsection 9 of this section.However,52 4effective July 1, 1990, for members who retired before that52 5date, thirty percent shall be the applicable percentage for52 6members and beneficiaries under this subparagraph.52 7 (2)Twenty-fiveThirty percent for members with five or 52 8 more years of membership service who are receiving an ordinary 52 9 disability retirement allowance.However, effective July 1,52 101990, for members who retired before that date, thirty percent52 11shall be the applicable percentage for members under this52 12subparagraph.52 13 (3)Twelve and one-halfFifteen percent for members with 52 14 less than five years of membership service who are receiving 52 15 an ordinary disability retirement allowance, and for 52 16 beneficiaries receiving a pension under subsection 8 of this 52 17 section.However, effective July 1, 1990, for members who52 18retired before that date, fifteen percent shall be the52 19applicable percentage for members and beneficiaries under this52 20subparagraph.52 21 Sec. 75. Section 97A.6, subsection 14, paragraph d, Code 52 22 1995, is amended to read as follows: 52 23 d. A retired member eligible for benefits under the 52 24 provisions of subsection 1 is not eligible for the annual 52 25 readjustment of pensions provided in this subsection unless 52 26 the member served at least twenty-two yearsand attained the52 27age of fifty-five yearsprior to the member's termination of 52 28 employment. 52 29 Sec. 76. Section 97A.6, Code 1995, is amended by adding 52 30 the following new subsection: 52 31 NEW SUBSECTION. 2A. EARLY RETIREMENT BENEFITS. 52 32 a. Notwithstanding the calculation of the service 52 33 retirement allowance under subsection 2, beginning July 1, 52 34 1996, a member who has completed twenty-two years or more of 52 35 creditable service and is at least fifty years of age, but 53 1 less than fifty-five years of age, who has otherwise completed 53 2 the requirements for retirement under subsection 1, may retire 53 3 and receive a reduced service retirement allowance pursuant to 53 4 this subsection. The service retirement allowance for a 53 5 member less than fifty-five years of age shall be calculated 53 6 in the manner prescribed in subsection 2, except that the 53 7 percentage multiplier of the member's average final 53 8 compensation used in the determination of the service 53 9 retirement allowance shall be reduced by the board of trustees 53 10 pursuant to paragraph "b". 53 11 b. On July 1, 1996, and on each July 1 thereafter, the 53 12 board of trustees shall determine for the respective fiscal 53 13 year the percent by which the percentage multiplier under 53 14 subsection 2 shall be reduced for each month that a member's 53 15 retirement date precedes the member's fifty-fifth birthday. 53 16 The board of trustees shall make this determination based upon 53 17 the most recent actuarial valuation of the system, the 53 18 calculation of the acturial cost for each month of retirement 53 19 of a member prior to age fifty-five, and the premise that the 53 20 provision of a service retirement allowance to a member who is 53 21 less than fifty-five years of age will not result in any 53 22 increase in cost to the system. 53 23 Sec. 77. Section 97A.7, subsection 2, Code 1995, is 53 24 amended to read as follows: 53 25 2. The several funds created by this chapter may be 53 26 invested in:53 27a. Bonds or other evidences of indebtedness issued,53 28assumed, or guaranteed by the United States of America, or by53 29any agency or instrumentality thereof.53 30b. In savings accounts or time deposits in Iowa banks53 31approved as depositories by the executive council.53 32c. Inany investments authorized for the Iowa public 53 33 employees' retirement system in section 97B.7, subsection 2, 53 34 paragraph "b". 53 35 Sec. 78. Section 97A.8, subsection 1, paragraph b, Code 54 1 1995, is amended to read as follows: 54 2 b. On the basis of the rate of interest and of the 54 3 mortality, interest, and other tables adopted by the board of 54 4 trustees, thestate commissioner of insuranceboard of 54 5 trustees, upon the advice of the actuary hired by the board 54 6 for that purpose, shall make each valuation required by this 54 7 chapter and shall immediately after making such valuation, 54 8 determine the "normal contribution rate". The normal 54 9 contribution rate shall be the rate percent of the earnable 54 10 compensation of all members obtained by deducting from the 54 11 total liabilities of the fund the sum of the amount of the 54 12 funds in hand to the credit of the fund and dividing the 54 13 remainder by one percent of the present value of the 54 14 prospective future compensation of all members as computed on 54 15 the basis of the rate of interest and of mortality and service 54 16 tables adopted by the board of trustees, all reduced by the 54 17 employee contribution made pursuant to this subsection. 54 18 However, the normal rate of contribution shall not be less 54 19 than seventeen percent. The normal rate of contribution shall 54 20 be determined by thestate commissioner of insuranceboard of 54 21 trustees after each valuation. 54 22 Sec. 79. Section 97A.8, subsection 1, paragraph c, 54 23 unnumbered paragraph 3, Code 1995, is amended by striking the 54 24 unnumbered paragraph. 54 25 Sec. 80. Section 97A.8, subsection 1, paragraph f, 54 26 subparagraph (8), Code 1995, is amended to read as follows: 54 27 (8) Notwithstanding any other provision of this chapter, 54 28 beginning July 1, 1996, and each fiscal year thereafter,the54 29member's contribution rate shall be equivalent to the member's54 30contribution rate provided under section 411.8, subsection 1,54 31paragraph "f", for the statewide fire and police retirement54 32system for the applicable fiscal yearan amount equal to the 54 33 member's contribution rate times each member's compensation 54 34 shall be paid to the pension accumulation fund from the 54 35 earnable compensation of the member. For the purposes of this 55 1 subparagraph, the member's contribution rate shall be nine and 55 2 thirty-five hundredths percent. However, the system shall 55 3 increase the member's contribution rate as necessary to cover 55 4 any increase in cost to the system resulting from statutory 55 5 changes which are enacted by any session of the general 55 6 assembly meeting after January 1, 1995, if the increase cannot 55 7 be absorbed within the contribution rates otherwise 55 8 established pursuant to this paragraph, but subject to a 55 9 maximum employee contribution rate of eleven and three-tenths 55 10 percent. After the employee contribution reaches eleven and 55 11 three-tenths percent, sixty percent of the additional cost of 55 12 such statutory changes shall be paid by the employer under 55 13 paragraph "c" and forty percent of the additional cost shall 55 14 be paid by employees under this paragraph. 55 15 Sec. 81. Section 97A.8, subsection 3, Code 1995, is 55 16 amended to read as follows: 55 17 3. EXPENSE FUND. The expense fund shall be the fund to 55 18 which shall be credited all money provided by the state of 55 19 Iowa to pay the administration expenses of the system and from 55 20 which shall be paid all the expenses necessary in connection 55 21 with the administration and operation of the system. 55 22 Biennially the board of trustees shall estimate the amount of 55 23 money necessary to be paid into the expense fund during the 55 24 ensuing biennium to provide for the expense of operation of 55 25 the system. Investment management expenses shall be charged 55 26 to the investment income of the system and there is 55 27 appropriated from the system an amount required for the 55 28 investment management expenses. The board of trustees shall 55 29 report the investment management expenses for the fiscal year 55 30 as a percent of the market value of the system. 55 31 For purposes of this subsection, investment management 55 32 expenses are limited to the following: 55 33 a. Fees for investment advisors, consultants, and 55 34 investment management and benefit consultant firms hired by 55 35 the board of trustees in administering this chapter. 56 1 b. Fees and costs for safekeeping fund assets. 56 2 c. Costs for performance and compliance monitoring, and 56 3 accounting for fund investments. 56 4 d. Any other costs necessary to prudently invest or 56 5 protect the assets of the fund. 56 6 Sec. 82. Section 97A.12, Code 1995, is amended to read as 56 7 follows: 56 8 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR 56 9 ASSIGNMENT. 56 10 The right of any person to a pension, annuity, or 56 11 retirement allowance, to the return of contributions, the 56 12 pension, annuity, or retirement allowance itself, any optional 56 13 benefit or death benefit, any other right accrued or accruing 56 14 to any person under this chapter, and the moneys in the 56 15 various funds created under this chapter, are not subject to 56 16 execution, garnishment, attachment, or any other process 56 17 whatsoever, and are unassignable except for the purposes of 56 18 enforcing child, spousal, or medical support obligations or 56 19 marital property orders, or asin this chapterotherwise 56 20 specifically provided in this chapter. For the purposes of 56 21 enforcing child, spousal, or medical support obligations or 56 22 marital property orders, the garnishment or attachment of or 56 23 the execution against compensation due a person under this 56 24 chapter shall not exceed the amount specified in 15 U.S.C. } 56 25 1673(b). 56 26 Sec. 83. NEW SECTION. 97A.17 OPTIONAL TRANSFERS WITH 56 27 CHAPTER 411. 56 28 1. For purposes of this section unless the context 56 29 otherwise requires: 56 30 a. "Average accrued benefit" means the average of the 56 31 amounts representing the present value of the accrued benefit 56 32 earned by the member determined by the former system and the 56 33 present value of the accrued benefit earned by the member 56 34 determined by the current system. 56 35 b. "Current system" means the eligible retirement system 57 1 in which a person has commenced employment covered by the 57 2 system after having terminated employment covered by the 57 3 former system. 57 4 c. "Eligible retirement system" means the system created 57 5 under this chapter and the statewide fire and police 57 6 retirement system established in chapter 411. 57 7 d. "Former system" means the eligible retirement system in 57 8 which a person has terminated employment covered by the system 57 9 prior to commencing employment covered by the current system. 57 10 2. Commencing July 1, 1996, a vested member of an eligible 57 11 retirement system who terminates employment covered by one 57 12 eligible retirement system and, within sixty days, commences 57 13 employment covered by the other eligible retirement system may 57 14 elect to transfer the average accrued benefit earned from the 57 15 former system to the current system. The member shall file an 57 16 application with the current system for transfer of the 57 17 average accrued benefit within ninety days of the commencement 57 18 of employment with the current system. 57 19 3. Notwithstanding subsection 2, a vested member whose 57 20 employment with the current system commenced prior to July 1, 57 21 1996, may elect to transfer the average accrued benefit earned 57 22 under the former system to the current system by filing an 57 23 application with the current system for transfer of the 57 24 average accrued benefit on or before July 1, 1997. 57 25 4. Upon receipt of an application for transfer of the 57 26 average accrued benefit, the current system shall calculate 57 27 the average accrued benefit and the former system shall 57 28 transfer to the current system assets in an amount equal to 57 29 the average accrued benefit. Once the transfer of the average 57 30 accrued benefit is completed, the member's service under the 57 31 former system shall be treated as membership service under the 57 32 current system for purposes of this chapter and chapter 411. 57 33 DIVISION III 57 34 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 57 35 Sec. 84. Section 400.8, subsection 1, Code 1995, is 58 1 amended to read as follows: 58 2 1. The commission, when necessary under the rules, 58 3 including minimum and maximum age limits, which shall be 58 4 prescribed and published in advance by the commission and 58 5 posted in the city hall, shall hold examinations for the 58 6 purpose of determining the qualifications of applicants for 58 7 positions under civil service, other than promotions, which 58 8 examinations shall be practical in character and shall relate 58 9 to matters which will fairly test the mental and physical 58 10 ability of the applicant to discharge the duties of the 58 11 position to which the applicant seeks appointment. The 58 12 physical examination of applicants for appointment to the 58 13 positions of police officer, police matron, or fire fighter 58 14 shall be held in accordance with medical protocols established 58 15 by the board of trustees of the fire and police retirement 58 16 system established by section 411.5. The board of trustees 58 17 may change the medical protocols at any time the board so 58 18 determines. The commission shall conduct a medical 58 19 examination of an applicant for the position of police 58 20 officer, police matron, or fire fighter after a conditional 58 21 offer of employment has been made to the applicant. An 58 22 applicant shall not be discriminated against on the basis of 58 23 height, weight, sex, or race in determining physical or mental 58 24 ability of the applicant. Reasonable rules relating to 58 25 strength, agility, and general health of applicants shall be 58 26 prescribed. The costs of the physical examination required 58 27 under this subsection shall be paid from the trust and agency 58 28 fund of the city. 58 29 Sec. 85. Section 411.5, Code 1995, is amended by adding 58 30 the following new subsection: 58 31 NEW SUBSECTION. 13. VOLUNTARY BENEFIT PROGRAMS. The 58 32 board of trustees shall be responsible for the administration 58 33 of the voluntary benefit programs established under section 58 34 411.40. The board may take any necessary action, including 58 35 the adoption of rules, for purposes of administering the 59 1 programs. 59 2 Sec. 86. Section 411.6, subsection 7, paragraph a, 59 3 unnumbered paragraph 1, Code 1995, is amended to read as 59 4 follows: 59 5 Should any beneficiary for either ordinary or accidental 59 6 disability, except a beneficiary who is fifty-five years of 59 7 age or over and would have completed twenty-two years of 59 8 service if the beneficiary had remained in active service, be 59 9 engaged in a gainful occupation paying more than the 59 10 difference between the member's retirement allowance and one 59 11 and one-half times the earnable compensation of an active 59 12 member at the same position on the salary scale within the 59 13 member's rank as the member held at retirement, then the 59 14 amount of the member's retirement allowance shall be reduced 59 15 to an amount which together with the amount earned by the 59 16 member shall equal one and one-half times the amount of the 59 17 current earnable compensation of an active member at the same 59 18 position on the salary scale within the member's rank as the 59 19 member held at retirement. Should the member's earning 59 20 capacity be later changed, the amount of the member's 59 21 retirement allowance may be further modified, provided, that 59 22 the new retirement allowance shall not exceed the amount of 59 23 the retirement allowance adjusted by annual readjustments of 59 24 pensions pursuant to subsection 12 of this section nor an 59 25 amount which, when added to the amount earned by the 59 26 beneficiary, equals one and one-half times the amount of the 59 27 earnable compensation of an active member at the same position 59 28 on the salary scale within the member's rank as the member 59 29 held at retirement. A beneficiary restored to active service 59 30 at a salary less than the average final compensation upon the 59 31 basis of which the member was retired at age fifty-five or 59 32 greater, shall not again become a member of the retirement 59 33 system and shall have the member's retirement allowance 59 34 suspended while in active service. If the rank or position 59 35 held by the retired member is subsequently abolished, 60 1 adjustments to the allowable limit on the amount of income 60 2 which can be earned in a gainful occupation shall be computed 60 3in the same manner as provided in subsection 12, paragraph60 4"c", of this section for readjustment of pensions when a rank60 5or position has been abolishedby the board of trustees as 60 6 through such rank or position had not been abolished and 60 7 salary increases had been granted to such rank or position on 60 8 the same basis as increases granted to other ranks and 60 9 positions in the department. 60 10 Sec. 87. Section 411.6, subsection 12, paragraphs a 60 11 through c, Code 1995, are amended by striking the paragraphs 60 12 and inserting in lieu thereof the following: 60 13 a. On each July 1, the monthly pensions authorized in this 60 14 section payable to retired members and to beneficiaries shall 60 15 be adjusted as provided in this subsection. An amount equal 60 16 to the sum of one and one-half percent of the monthly pension 60 17 of each retired member and beneficiary and the applicable 60 18 incremental amount shall be added to the monthly pension of 60 19 each retired member and beneficiary. The board of trustees 60 20 shall report to the general assembly every six years, by 60 21 September 15 of that year, beginning with September 15, 2001, 60 22 on whether the provisions of this subsection continue to pro- 60 23 vide an equitable method for the annual readjustment of 60 24 pensions payable under this chapter. 60 25 b. For purposes of this subsection, "applicable 60 26 incremental amount" means the following amount for members 60 27 receiving a pension under subsection 2, 4, or 6 and for 60 28 beneficiaries receiving a pension under subsection 11: 60 29 (1) Fifteen dollars where the member's retirement date was 60 30 less than five years prior to the effective date of the 60 31 increase. 60 32 (2) Twenty dollars where the member's retirement date was 60 33 at least five years, but less than ten years, prior to the 60 34 effective date of the increase. 60 35 (3) Twenty-five dollars where the member's retirement date 61 1 was at least ten years, but less than fifteen years, prior to 61 2 the effective date of the increase. 61 3 (4) Thirty dollars where the member's retirement date was 61 4 at least fifteen years, but less than twenty years, prior to 61 5 the effective date of the increase. 61 6 (5) Thirty-five dollars where the member's retirement date 61 7 was at least twenty years prior to the effective date of the 61 8 increase. 61 9 c. For beneficiaries receiving a pension under subsection 61 10 8 or 9, the applicable incremental amount shall be determined 61 11 as set forth in paragraph "b", except that the date of the 61 12 member's death shall be substituted for the member's 61 13 retirement date. 61 14 Sec. 88. Section 411.6, subsection 12, Code 1995, is 61 15 amended by adding the following new paragraph: 61 16 NEW PARAGRAPH. e. A retired member eligible for benefits 61 17 under this section and otherwise eligible for the readjustment 61 18 of benefits provided in this subsection is not eligible for 61 19 the readjustment unless the member was retired on or before 61 20 the effective date of the readjustment. 61 21 Sec. 89. Section 411.13, Code 1995, is amended to read as 61 22 follows: 61 23 411.13 EXEMPTION FROM EXECUTION AND OTHER PROCESS, OR 61 24 ASSIGNMENT &endash; EXCEPTIONS. 61 25 The right of any person to a pension, annuity, or 61 26 retirement allowance, to the return of contributions, the 61 27 pension, annuity, or retirement allowance itself, any optional 61 28 benefit or death benefit, any other right accrued or accruing 61 29 to any person under this chapter, and the moneys in the fire 61 30 and police retirement fund created under this chapter, are not 61 31 subject to execution, garnishment, attachment, or any other 61 32 process whatsoever, and are unassignable except for the 61 33 purposes of enforcing child, spousal, or medical support obli- 61 34 gations or marital property orders, or asin this chapter61 35 otherwise specifically provided in this chapter. For the 62 1 purposes of enforcing child, spousal, or medical support 62 2 obligations or marital property orders, the garnishment or 62 3 attachment of or the execution against compensation due a 62 4 person under this chapter shall not exceed the amount 62 5 specified in 15 U.S.C. } 1673(b). 62 6 Sec. 90. NEW SECTION. 411.31 OPTIONAL TRANSFERS WITH 62 7 CHAPTER 97A. 62 8 1. For purposes of this section, unless the context 62 9 otherwise requires: 62 10 a. "Average accrued benefit" means the average of the 62 11 amounts representing the present value of the accrued benefit 62 12 earned by the member determined by the former system and the 62 13 present value of the accrued benefit earned by the member 62 14 determined by the current system. 62 15 b. "Current system" means the eligible retirement system 62 16 in which a person has commenced employment covered by the 62 17 system after having terminated employment covered by the 62 18 former system. 62 19 c. "Eligible retirement system" means the system created 62 20 under this chapter and the Iowa department of public safety 62 21 peace officers' retirement, accident, and disability system 62 22 established in chapter 97A. 62 23 d. "Former system" means the eligible retirement system in 62 24 which a person has terminated employment covered by the system 62 25 prior to commencing employment covered by the current system. 62 26 2. Commencing July 1, 1996, a vested member of an eligible 62 27 retirement system who terminates employment covered by one 62 28 eligible retirement system and, within sixty days, commences 62 29 employment covered by the other eligible retirement system may 62 30 elect to transfer the average accrued benefit earned from the 62 31 former system to the current system. The member shall file an 62 32 application with the current system for transfer of the 62 33 average accrued benefit within ninety days of the commencement 62 34 of employment with the current system. 62 35 3. Notwithstanding subsection 2, a vested member whose 63 1 employment with the current system commenced prior to July 1, 63 2 1996, may elect to transfer the average accrued benefit earned 63 3 under the former system to the current system by filing an 63 4 application with the current system for transfer of the 63 5 average accrued benefit on or before July 1, 1997. 63 6 4. Upon receipt of an application for transfer of the 63 7 average accrued benefit, the current system shall calculate 63 8 the average accrued benefit and the former system shall 63 9 transfer to the current system assets in an amount equal to 63 10 the average accrued benefit. Once the transfer of the average 63 11 accrued benefit is completed, the member's service under the 63 12 former system shall be treated as membership service under the 63 13 current system for purposes of this chapter and chapter 97A. 63 14 Sec. 91. Section 411.37, subsection 2, Code 1995, is 63 15 amended to read as follows: 63 16 2. The board shall include in the transition plan or other 63 17 transition documents, provisions to facilitate continuity 63 18 under sections 411.20, 411.21, and 411.30and a recommendation63 19for an equitable process for determining earnable compensation63 20changes when calculating adjustments to pensions under section63 21411.6, subsection 12, to be submitted to the general assembly63 22meeting in 1991. 63 23 Sec. 92. Section 411.38, subsection 1, paragraph b, 63 24 unnumbered paragraph 1, Code 1995, is amended to read as 63 25 follows: 63 26 Transfer from each terminated city fire or police 63 27 retirement system to the statewide system amounts sufficient 63 28 to cover the accrued liabilities of that terminated system as 63 29 determined by the actuary of the statewide system. The 63 30 actuary of the statewide system shall redetermine the accrued 63 31 liabilities of the terminated systems as necessary to take 63 32 into account additional amounts payable by the city which are 63 33 attributable to errors or omissions which occurred prior to 63 34 January 1, 1992, or to matters pending as of January 1, 1992. 63 35 If the actuary of the statewide system determines that the 64 1 assets transferred by a terminated system are insufficient to 64 2 fully fund the accrued liabilities of the terminated system as 64 3 determined by the actuary as of January 1, 1992, the 64 4 participating city shall pay to the statewide system an amount 64 5 equal to the unfunded liability plus interest for the period 64 6 beginning January 1, 1992, and ending with the date of payment 64 7 or the date of entry into an amortization agreement pursuant 64 8 to this section. Interest on the unfunded liability shall be 64 9 computed at a rate equal to the greater of the actuarial 64 10 interest rate assumption on investments of the moneys in the 64 11 fund or the actual investment earnings of the fund for the 64 12 applicable calendar year. The participating city may enter 64 13 into an agreement with the statewide system to make additional 64 14 annual contributions sufficient to amortize the unfunded 64 15 accrued liability of the terminated system. The terms of an 64 16 amortization agreement shall be based upon the recommendation 64 17 of the actuary of the statewide system, and the agreement 64 18 shall do each of the following: 64 19 Sec. 93. NEW SECTION. 411.40 VOLUNTARY BENEFIT PROGRAMS. 64 20 The board of trustees may establish voluntary benefit 64 21 programs for members subject to the following conditions: 64 22 1. The voluntary benefit programs may provide benefits 64 23 including, but not limited to, retiree health benefits, long- 64 24 term care, and life insurance. 64 25 2. Participation in the voluntary benefit programs by 64 26 members shall be voluntary. 64 27 3. Contributions to the voluntary benefit programs shall 64 28 be paid entirely by each participating member by means of 64 29 payroll deduction. Cities employing members participating in 64 30 voluntary benefit programs shall forward the amounts deducted 64 31 to the board of trustees for deposit in the voluntary benefit 64 32 fund. 64 33 4. The voluntary benefit programs and the voluntary 64 34 benefit fund shall be administered under the direction of the 64 35 board of trustees for the exclusive benefit of members paying 65 1 contributions as provided in subsection 3. 65 2 5. The assets of the voluntary benefit programs shall be 65 3 credited to the voluntary benefit fund, which is hereby 65 4 created. The voluntary benefit fund shall include 65 5 contributions deposited in accordance with subsection 3, and 65 6 any interest and earnings on the contributions. The board of 65 7 trustees shall annually establish an investment policy to 65 8 govern the investment and reinvestment of the assets in the 65 9 voluntary benefit fund. The voluntary benefit fund created 65 10 under this section and the fire and police retirement fund 65 11 created under section 411.8 shall not be used to subsidize any 65 12 portion of the liabilities of the other fund. 65 13 6. The board of trustees shall include in its annual 65 14 budget the amount of money necessary during the following year 65 15 to provide for the expense of operation of the voluntary 65 16 benefit programs. The operating expenses shall be paid from 65 17 the voluntary benefit fund under the direction of the board of 65 18 trustees. 65 19 DIVISION IV 65 20 JUDICIAL RETIREMENT SYSTEM 65 21 Sec. 94. Section 602.9111, Code 1995, is amended to read 65 22 as follows: 65 23 602.9111 INVESTMENT OF FUND. 65 24 So much of the judicial retirement fund as may not be 65 25 necessary to be kept on hand for the making of disbursements 65 26 under this article shall be invested by the treasurer of state 65 27 inbonds or other evidences of indebtedness issued, assumed,65 28or guaranteed by the United States of America, or by any65 29agency or instrumentality thereof or inany investments 65 30 authorized for the Iowa public employees' retirement system in 65 31 section 97B.7, subsection 2, paragraph "b", and the earnings 65 32 therefrom shall be credited tosaidthe fund. The treasurer 65 33 of state may execute contracts and agreements with investment 65 34 advisors, consultants, and investment management and benefit 65 35 consultant firms in the administration of the judicial 66 1 retirement fund. 66 2 Investment management expenses shall be charged to the 66 3 investment income of the fund and there is appropriated from 66 4 the fund an amount required for the investment management 66 5 expenses. The court administrator shall report the investment 66 6 management expenses for the fiscal year as a percent of the 66 7 market value of the system. 66 8 For purposes of this section, investment management 66 9 expenses are limited to the following: 66 10 a. Fees for investment advisors, consultants, and 66 11 investment management and benefit consultant firms hired by 66 12 the treasurer of state in administering the fund. 66 13 b. Fees and costs for safekeeping fund assets. 66 14 c. Costs for performance and compliance monitoring, and 66 15 accounting for fund investments. 66 16 d. Any other costs necessary to prudently invest or 66 17 protect the assets of the fund. The state court administrator 66 18 and the treasurer of state, and their employees, are not 66 19 personally liable for claims based upon an act or omission of 66 20 the person performed in the discharge of the person's duties 66 21 concerning the judicial retirement fund, except for acts or 66 22 omissions which involve malicious or wanton misconduct. 66 23 DIVISION V 66 24 EFFECTIVE AND APPLICABILITY PROVISIONS 66 25 Sec. 95. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 66 26 1. The section of this Act which amends section 97B.49, 66 27 subsection 16, by enacting a new paragraph "m", being deemed 66 28 of immediate importance, takes effect upon enactment and 66 29 applies retroactively to July 1, 1992. 66 30 2. The section of this Act which amends section 411.6, 66 31 subsection 12, paragraphs "a" through "c", takes effect July 66 32 1, 1997. 66 33 EXPLANATION 66 34 This bill provides numerous changes to public retirement 66 35 systems. This bill may include a state mandate as defined in 67 1 section 25B.3. The state mandate funding requirement in 67 2 section 25B.2, however, does not apply to public employee 67 3 retirement systems. 67 4 The changes to each public retirement system are as 67 5 follows: 67 6 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 67 7 Section 97B.4 is amended to state that the department of 67 8 personnel shall comply with applicable federal and state laws. 67 9 Section 97B.7 is amended to provide that the department 67 10 follow the same standards in establishing investment policy as 67 11 are required in making particular investments for the fund. 67 12 Section 97B.11 is amended to provide that no contributions 67 13 shall be deducted from wages, and no membership service 67 14 credited, from a member whose contributions for any calendar 67 15 quarter would amount to one dollar or less. 67 16 Section 97B.14 is amended concerning which contributions 67 17 are forwarded to the department. The change references the 67 18 date established in section 97B.11A concerning the employer 67 19 pickup of employee contributions. 67 20 Section 97B.15 is amended to provide that the department 67 21 may adopt interim written policies and procedures to conform 67 22 the requirements of the retirement system with federal law 67 23 without complying with the rulemaking requirements of chapter 67 24 17A. 67 25 Section 97B.17 is amended to provide that the records 67 26 maintained by the department concerning IPERS members may be 67 27 stored on paper, in a magnetic format, or in electronic form, 67 28 including optical disk storage. 67 29 The section is also amended by adding a new paragraph 67 30 authorizing the department to release records to a 67 31 governmental entity for the purposes of civil or criminal law 67 32 enforcement activity. The section further provides that the 67 33 department is not liable for the release of records pursuant 67 34 to this new paragraph. 67 35 Section 97B.25 is amended to provide that a retirement 68 1 application shall not be amended or revoked by the member once 68 2 the first retirement allowance is paid and a member's death 68 3 during the member's first month of entitlement shall not 68 4 invalidate an approved application. 68 5 Section 97B.39 is amended to provide that a member's right 68 6 to payments under IPERS is subject to marital property orders. 68 7 This amendment further provides that a marital property order 68 8 shall not attempt to require payment prior to retirement or 68 9 mandate a member's right to select certain options upon 68 10 retirement. 68 11 Section 97B.41, concerning definitions, is amended. 68 12 Subsection 8, concerning the definition of employees under 68 13 IPERS, is amended to provide that certain university 68 14 instructors governed by the board of regents who work less 68 15 than half-time for a school year are considered temporary 68 16 employees and not covered by IPERS. Currently, this reference 68 17 applies to half-time community college instructors. 68 18 In addition, subsection 8 is amended to provide that 68 19 persons employed through programs provided through the Iowa 68 20 conservation corps under chapter 15 are not employees for 68 21 purposes of IPERS. 68 22 New subsection 10A provides that reference to the Internal 68 23 Revenue Code means the Internal Revenue Code as defined in 68 24 section 422.3. 68 25 Subsection 12, concerning the definition of membership 68 26 service is amended to eliminate contingent language concerning 68 27 the implementation of certain amendments to this subsection. 68 28 New subsections 13A and 16A add two definitions concerning 68 29 regular and special service. Special service is defined as 68 30 service as a member of a protected occupation, and service as 68 31 a county sheriff, deputy sheriff, or airport fire fighter, all 68 32 as described in section 97B.49, subsection 16. Regular 68 33 service is defined as service other than special service. 68 34 New subsection 14A defines retirement as the period of time 68 35 from when a member has survived into the first day of the 69 1 member's first month of entitlement until the member dies. 69 2 Subsection 15, concerning the definition of service, is 69 3 amended to provide that a leave of absence authorized pursuant 69 4 to the federal Family and Medical Leave Act is deemed to be a 69 5 leave authorized by the person's employer. 69 6 Subsection 18, concerning the definition of three-year 69 7 average covered wage is amended to provide that, for certain 69 8 members who retire between January 1, 1997, and December 31, 69 9 2003, the member's three-year average covered wage shall be 69 10 determined on the member's wages from four to seven years if 69 11 the member's three-year average covered wage exceeds a certain 69 12 dollar amount for the year the member decides to retire. 69 13 Subsection 20, concerning the definition of covered wages, 69 14 provides that, beginning January 1, 1997, the covered wage 69 15 limitation is eliminated subject to the amount permitted under 69 16 the Internal Revenue Code. Currently, the covered wage 69 17 limitation for 1996 is $44,000 and current law provides that 69 18 this amount will increase by $3,000 a year up to a maximum of 69 19 $55,000, provided that the actuarial valuation of the system 69 20 indicates that the increase can be absorbed within existing 69 21 contribution rates. 69 22 Section 97B.42 is amended to provide that an employee 69 23 ceases to be an active member of IPERS if the employee 69 24 receives service credit for service in another public 69 25 retirement system for the same position previously covered 69 26 under IPERS. Current law provides that an employee shall 69 27 cease to be an active member of IPERS upon joining another 69 28 public retirement system maintained by public contributions. 69 29 The bill adds similar language to a provision which currently 69 30 prohibits a person from being a member of another public 69 31 retirement system in the state and a member under IPERS. 69 32 Section 97B.42 is further amended to state that an employer 69 33 shall not make contributions on behalf of an employee to both 69 34 IPERS and any other public retirement system in the state 69 35 which is supported by public contributions. Current law 70 1 provides that a person in public employment shall not be an 70 2 active member of both IPERS and any other public retirement 70 3 system in the state which is supported by public 70 4 contributions. 70 5 Sections 97B.45 and 97B.46 are amended by striking the 70 6 provision that a member shall not be employed as a peace 70 7 officer or fire fighter after attaining 65 years of age. 70 8 Section 97B.48, subsection 1, is amended to provide that a 70 9 member who would have received a retirement allowance of less 70 10 than $600 a year may elect to receive a lump sum equal to the 70 11 member's and the employer's accumulated contributions and any 70 12 retirement dividends credited before December 31, 1966. 70 13 Current law provides that the lump sum received shall be an 70 14 actuarial equivalent amount, defined as a benefit of equal 70 15 value when computed pursuant to actuarial tables. 70 16 Section 97B.48A, concerning reemployment, is amended to 70 17 provide that for members under 65 years of age, a member's 70 18 retirement allowance shall be reduced by 50 cents for each 70 19 dollar the member earns over the limit for extra income 70 20 provided in section 97B.48A. This section of the bill also 70 21 provides that the earned income limit is the greater of $7,440 70 22 or the amount of income permitted under Social Security. 70 23 Current law provides for a suspension of the retirement 70 24 allowance for earnings over $7,440. The section provides for 70 25 recouping these reductions from beneficiaries of the member if 70 26 the member dies prior to IPERS recovering the full amount of 70 27 the reductions. 70 28 Section 97B.49, subsection 4, is amended to provide, 70 29 beginning January 1, 1997, that the minimum monthly benefit 70 30 for members who retired between July 1, 1953, and July 1, 70 31 1990, with at least 10 years of service is $200. For each 70 32 year of service from 10 to 30 years of total service, the 70 33 minimum benefit shall increase by $10 per year of additional 70 34 service. 70 35 Section 97B.49, subsection 5, paragraph "b", is amended to 71 1 reflect the history of the increase in the percentage 71 2 multiplier up to the current 60 percent. The section reflects 71 3 that vested members retiring on or after July 1, 1994, get a 71 4 monthly retirement allowance based on 60 percent of the 71 5 member's three-year average covered wage. The paragraph is 71 6 also amended to provide that the increase in the percentage 71 7 multiplier for years of service as provided in section 97B.49, 71 8 subsection 5, new paragraph "e", in this bill applies to 71 9 members covered under subsection 16 or 17 which apply to 71 10 protection occupations, sheriffs, deputies, and airport fire 71 11 fighters and that these members are also subject to the 71 12 reduction in the percentage multiplier if the member's three- 71 13 year average covered wage exceeds certain income levels. 71 14 Section 97B.49, subsection 5 is amended by adding new 71 15 paragraph "e" which provides that a member retiring after July 71 16 1, 1996, gets an additional one-fourth of one percent added to 71 17 the applicable percentage multiplier for each quarter year of 71 18 service in addition to the number of years of service required 71 19 for a member to receive the maximum percentage multiplier, up 71 20 to a maximum of an additional 6 percentage points. This 71 21 additional percentage applies to all members under IPERS. 71 22 Section 97B.49, subsection 13, concerning retirement 71 23 dividends, is amended to provide for the payment of a 71 24 retirement dividend based on a percentage of a member's 71 25 monthly retirement allowance for certain retirees in November 71 26 1996. Members who retired between July 4, 1953, and December 71 27 31, 1975, receive a dividend of 292 percent of the monthly 71 28 benefit, members who retired between January 1, 1976, and June 71 29 30, 1982, receive a dividend of 223 percent of the monthly 71 30 benefit, members who retired between July 1, 1982, and June 71 31 30, 1986, receive a dividend of 74 percent of the monthly 71 32 benefit, and members who retired between July 1, 1986, and 71 33 June 30, 1990, receive a dividend of 24 percent of the monthly 71 34 benefit. 71 35 Section 97B.49, subsection 13, concerning retirement 72 1 dividends, is further amended by adding a new paragraph "g" to 72 2 provide for the payment of a retirement dividend every 72 3 November, beginning in November 1997, for members who retired 72 4 before July 1, 1990. The percentage applied to calculate the 72 5 adjustment of the dividend is the lesser of 80 percent of the 72 6 increase in the federal consumer price index, the amount the 72 7 actuary determines the system can afford without an increase 72 8 in contribution rates, or 3 percent. 72 9 Section 97B.49, subsection 15, is amended to provide that a 72 10 member retiring on or after July 1, 1996, is eligible for 72 11 normal retirement without penalty based upon a rule of 88 72 12 where the combination of a member's age and years of service 72 13 equals or exceeds 88, and the member is at least 55 years of 72 14 age. Currently, the law provides for a rule of 92. 72 15 Section 97B.49, subsection 16, is amended to provide that 72 16 for members retiring on or after July 1, 1996, a county 72 17 sheriff, deputy sheriff, or airport fire fighter may elect to 72 18 retire at any age without a penalty after 25 years of service, 72 19 so long as the last 12 years of service were as a sheriff, 72 20 deputy, or fire fighter. A sheriff, deputy, or fire fighter 72 21 may still elect, as is provided under current law, to obtain 72 22 full retirement at 55 years of age with 22 years of service. 72 23 Section 97B.49, subsection 16, paragraph "d", is amended to 72 24 add probation officer II, parole officer II, and residential 72 25 counselor to the classifications of employees of a judicial 72 26 district department of correctional services who are included 72 27 within the definition of a member of a protection occupation. 72 28 Section 97B.49, subsection 16, is amended by adding a new 72 29 paragraph "m" requiring that the department of public safety 72 30 shall pay the department of personnel the costs of additional 72 31 benefits provided a fire protection inspector peace officer. 72 32 This provision is immediately effective and retroactive to 72 33 July 1, 1992. 72 34 Section 97B.49 is amended to add a new subsection 17 that 72 35 establishes a hybrid retirement formula to be used in 73 1 computing the retirement allowance for members who earned 73 2 service as a regular IPERS member and who earned service as a 73 3 member of a protection occupation or a county sheriff, deputy 73 4 sheriff, or airport fire fighter. 73 5 New section 97B.50A is added to provide for a disability 73 6 retirement allowance for members of a protection occupation or 73 7 a county sheriff, deputy sheriff, or airport fire fighter, 73 8 effective January 1, 1997. The section provides for a monthly 73 9 accidental disability benefit equal to 1/12 of 33 1/3 percent 73 10 of the member's three-year average covered wage. Accidental 73 11 disability is based on job-related injury or disease. The 73 12 section provides that certain heart and lung diseases qualify 73 13 an eligible member for an accidental disability. The section 73 14 also establishes a medical board and provides for the medical 73 15 reexamination of certain disabled retirees. 73 16 Section 97B.51 is amended to provide that a member shall 73 17 not change an election of an optional retirement allowance 73 18 once the first retirement allowance is paid. 73 19 Section 97B.51, subsection 5, provides that a member may 73 20 elect, at retirement, to provide a lump sum payment to a 73 21 beneficiary on the member's death. This section of the bill 73 22 provides that the lump sum payment shall not exceed the 73 23 member's accumulated contributions. Current law does not 73 24 specify that the lump sum payment cannot exceed the member's 73 25 accumulated contributions. 73 26 Section 97B.51, subsection 6, is amended to provide for an 73 27 equal distribution of a member's reduced retirement allowance 73 28 payments upon the member's death if multiple beneficiaries are 73 29 designated unless the member provides in writing for a 73 30 different distribution. 73 31 Section 97B.52 is amended to provide that payment to a 73 32 member's beneficiary, if the member dies prior to the member's 73 33 first month of entitlement, is calculated based on years of 73 34 service divided by 22, 25, or 30, depending upon the member's 73 35 last membership service. 74 1 Section 97B.52, subsection 3, is amended to provide that a 74 2 beneficiary, heirs, or the estate, have five years, and not 74 3 two years, after the member's death to apply to the department 74 4 to receive the member's death benefit. The section of the 74 5 bill also requires the department to reinstate a surviving 74 6 spouse's right to receive a death benefit after five years if 74 7 required or permitted pursuant to the Internal Revenue Code. 74 8 Section 97B.52, subsection 5, is amended to provide for the 74 9 payment of benefits that are waived by the eligible 74 10 beneficiary. 74 11 Section 97B.52A is amended to provide that a member does 74 12 not have a bona fide retirement until all employment with the 74 13 employer, even noncovered employment, is terminated for at 74 14 least 30 days. 74 15 Section 97B.53 is amended to eliminate contingent language 74 16 concerning the implementation of amendments to this section. 74 17 Section 97B.53B is amended to provide that annual 74 18 distributions of less than $200 of taxable income are not 74 19 considered an eligible rollover distribution. Current law 74 20 refers to a distribution of less than $200 of taxable income. 74 21 Section 97B.66 is amended to provide that members may make 74 22 contributions as "buy-backs" in increments of calendar 74 23 quarters rather than full years concerning former service in 74 24 the teachers insurance and annuity association-college 74 25 retirement equity fund (TIAA-CREF). This section also 74 26 eliminates contingency language concerning the implementation 74 27 of partial "buy-backs", and contains a conforming change 74 28 pertaining to interest accrual under section 97B.70. 74 29 Section 97B.68 is amended to provide that a member of a 74 30 federal retirement system is not eligible for membership in 74 31 IPERS for the same position. Current law prohibits membership 74 32 in both systems regardless of the position. 74 33 Section 97B.68 is amended by adding a new subsection 3 to 74 34 provide that effective July 1, 1996, employees under the 74 35 federal retirement system may be covered under IPERS if 75 1 service under IPERS is not counted for their federal system 75 2 retirement. 75 3 Section 97B.70 is amended to provide that, effective for 75 4 years beginning January 1997, the interest credited to the 75 5 member's and the employer's contributions for purposes of 75 6 determining the accumulated contributions shall be equal to 1 75 7 percent higher than the interest rate for one year 75 8 certificates of deposit as of January of each year. This 75 9 section also provides that interest shall be credited on a 75 10 quarterly basis, and removes contingency language. 75 11 Sections 97B.72, concerning members of the general assembly 75 12 or after the 71st General Assembly, 97B.72A, concerning 75 13 members of the general assembly before July 1, 1988, 97B.73, 75 14 for members of other public retirement systems, and 97B.73A, 75 15 concerning part-time county attorneys, are amended to provide 75 16 that members may make contributions in increments of calendar 75 17 quarters rather than full years concerning former service. 75 18 The sections also eliminate contingency language concerning 75 19 the implementation of partial "buy-ins", or "buy-backs", as 75 20 applicable, and contain conforming change pertaining to 75 21 interest accrual under section 97B.70. Section 97B.72A is 75 22 also amended to provide that only vested or retired members, 75 23 and not active members, may make contributions. 75 24 Section 97B.74 is amended to provide that members may make 75 25 contributions as "buy-backs" in increments of calendar 75 26 quarters rather than full years concerning members seeking 75 27 reinstatement as a vested member. The section also provides 75 28 that only former vested or retired members, and not former 75 29 active members who were not vested, can buy back refunds 75 30 received. The section also eliminates contingent language 75 31 concerning the implementation of amendments to this Code 75 32 section. 75 33 Section 97B.80 is amended to provide that members may make 75 34 contributions as "buy-ins" in increments of one or more 75 35 calendar quarters rather than full years for active duty 76 1 service in the armed forces. The section eliminates the 76 2 restriction on making contributions in increments of less than 76 3 one year only once. 76 4 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 76 5 ACCIDENT, AND DISABILITY SYSTEM 76 6 Sections 97A.5, 97A.6, and 97A.8 are amended to provide 76 7 that the board of trustees shall, upon the advice of an 76 8 actuary hired by the board, make the necessary valuations for 76 9 determining the contribution rate into the fund. Currently, 76 10 the commissioner of insurance is given the responsibility to 76 11 perform these functions. 76 12 Section 97A.5 is further amended to provide that the board 76 13 of trustees may hire investment and benefit advisors and 76 14 consultants in order to administer the system. The section is 76 15 also amended to provide that the department of public safety, 76 16 the board of trustees, and the treasurer of state shall not be 76 17 liable for their actions that do not constitute malicious or 76 18 wanton misconduct, even if the actions violate standards 76 19 established in section 97A.7. 76 20 Section 97A.6, subsection 2, is amended to increase, from 76 21 .6 percent to 1.5 percent the additional benefit for members 76 22 for each additional year of service in the system from 22 to 76 23 30 years of service for members terminating service on or 76 24 after July 1, 1996. 76 25 Section 97A.6, subsection 12, is amended to increase the 76 26 minimum benefit for surviving spouses of members from 20 76 27 percent to 25 percent of the compensation for a senior patrol 76 28 officer. 76 29 Section 97A.6, subsection 14, is amended to provide for an 76 30 increase in the percentages used to provide an annual 76 31 readjustment of the pension payable from the current 12.5 76 32 percent and 25 percent to 15 percent and 30 percent, 76 33 respectively. Currently, only those members who retired prior 76 34 to July 1, 1990, get the higher percentage readjustment. The 76 35 bill also provides that a retired member is eligible for this 77 1 readjustment if the member served 22 years. Currently, a 77 2 member must serve 22 years and attain the age of 55 years 77 3 before retirement in order to be eligible for the 77 4 readjustment. 77 5 Section 97A.6 is amended by adding a new subsection 77 6 providing for early retirement benefits for members who retire 77 7 between the ages of 50 and 55 years but who have 22 years of 77 8 service. The member's benefit will be reduced by an amount 77 9 for each month of early retirement to reflect the actuarial 77 10 cost, so that the early retirement does not result in any 77 11 increase in cost to the system. 77 12 Section 97A.8, subsection 1, is amended to eliminate the 77 13 requirement that, beginning July 1, 1996, the normal 77 14 contribution rate and the members contribution rate be 77 15 equivalent to the respective rates provided under the 77 16 statewide fire and police retirement system. Instead, these 77 17 sections provide for establishing both rates based on the 77 18 costs associated with the peace officers' retirement system, 77 19 subject to certain existing limitations. 77 20 Section 97A.8, subsection 3, is amended to specify which 77 21 investment management expenses may be paid for by the expense 77 22 fund established for the system. 77 23 Section 97A.12 is amended to provide that a member's 77 24 pension under the system is subject to assignment based on a 77 25 marital property order or a child, spousal, or medical support 77 26 order. 77 27 New section 97A.17 establishes a mechanism for allowing 77 28 vested members of the system and vested members of the 77 29 statewide fire and police retirement system established in 77 30 chapter 411 to transfer to the other system with credit for 77 31 the period of service in the former system. The section 77 32 permits a member who transferred to the other system before 77 33 the effective date of this section to transfer credit from the 77 34 former system to the current system within one year from the 77 35 effective date of this section. 78 1 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 78 2 Section 400.8 is amended to authorize the board of trustees 78 3 of the statewide fire and police retirement system to update 78 4 the medical protocols used for examining applicants for 78 5 employment as a police officer or fire fighter. 78 6 Section 411.5 is amended to provide that the board of 78 7 trustees is given the authority to take any necessary action 78 8 to administer the voluntary benefit programs established in 78 9 new section 411.40. 78 10 Section 411.6, subsection 12, is amended to replace the 78 11 current method for annually readjusting the pensions of 78 12 members of the system effective July 1, 1997. The bill 78 13 provides that the monthly pensions of members shall be 78 14 adjusted each July 1 by adding an amount to the pension that 78 15 represents an increase of 1.5 percent over the previous year's 78 16 monthly pension plus a set dollar amount based on the number 78 17 of years the member has been retired. This section provides 78 18 that a retired member must be retired on or before the 78 19 effective date of the pension readjustment to be eligible for 78 20 the readjustment. 78 21 Section 411.31 is amended to provide that a member's 78 22 pension under the system is subject to assignment based on a 78 23 marital property order or a child, spousal, or medical support 78 24 order. 78 25 New section 411.31 establishes a mechanism for allowing 78 26 vested members of the system and vested members of the public 78 27 safety peace officers', accident and disability system in 78 28 chapter 97A to transfer to the other system with credit for 78 29 the period of service in the former system. The section 78 30 permits a member who transferred to the other system before 78 31 the effective date of this section to transfer credit from the 78 32 former system to the current system within one year from the 78 33 effective date of this section. 78 34 Section 411.38 is amended to establish a mechanism to 78 35 charge participating cities in the system with the unfunded 79 1 liability of that city along with interest calculated based on 79 2 the investment performance or actuarial assumptions of the 79 3 system. 79 4 New section 411.40 establishes voluntary benefit programs 79 5 for members of the system. The board of trustees is 79 6 authorized to establish programs for the benefit of members, 79 7 to include retiree health, long-term care, and life insurance. 79 8 The section establishes a voluntary benefit fund for the 79 9 purpose of investing assets transferred to the fund from 79 10 employee contributions. Participation in the program by 79 11 members is voluntary. 79 12 JUDICIAL RETIREMENT SYSTEM 79 13 Section 602.9111 is amended to provide that the state 79 14 treasurer may hire investment and benefit advisors and 79 15 consultants in order to administer the system and is amended 79 16 to provide for what investment management expenses may be paid 79 17 for from the judicial retirement fund. The bill provides that 79 18 the state court administrator and the treasurer of state shall 79 19 not be liable for their actions concerning the fund that do 79 20 not constitute malicious or wanton misconduct even if the 79 21 actions violate standards established for the fund. 79 22 LSB 3538SC 76 79 23 ec/cf/24.1
Text: SSB02179 Text: SSB02181 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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