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House Journal: Page 1792: Monday, April 22, 1996

Page  15

 1   system as of June 30, 1995.  If the annual actuarial
 2   valuation indicates that the amount of the employer
 3   and employee contributions in excess of the amount
 4   necessary to fund existing liabilities is less than
 5   three million eight hundred sixty thousand dollars,
 6   the department shall set aside all funds that are
 7   available.  The funds set aside shall not be used in
 8   determining the covered wage limitation pursuant to
 9   section 97B.41, subsection 20, paragraph "b",
10   subparagraph (11), on January 1, 1996.  However, any
11   funds set aside which are not specifically dedicated
12   to a purpose by the Seventy-sixth General Assembly
13   shall be used in determining the covered wage
14   limitation thereafter.
15     In accordance with sections 97D.1 and 97D.4, it is
16   the intent of the general assembly that once the goal
17   of sixty percent of the three-year average covered
18   wage is attained for a percentage multiplier, the
19   department shall submit to the public retirement
20   systems committee a plan for future benefit
21   enhancements.  This plan shall include, but is not
22   limited to, continuation in the increase in the
23   covered wage ceiling until reaching fifty-five
24   thousand dollars for a calendar year, providing for
25   annual adjustments in the annual dividends paid to
26   retired members as provided in section 97B.49,
27   subsection 13, and providing for the indexing of
28   terminated vested members' earned benefits at a rate
29   of three percent per year calculated from the date of
30   termination from covered employment until the date of
31   retirement.
32     Sec. 32.  Section 97B.49, subsection 5, Code
33   Supplement 1995, is amended by adding the following
34   new paragraph:
35     NEW PARAGRAPH.  e.  Notwithstanding any other
36   provisions of this section to the contrary, for
37   members retiring on or after July 1, 1997, and whose
38   three-year average covered wage exceeds fifty-five
39   thousand dollars, the monthly benefit shall be
40   calculated by multiplying the sum of the following
41   amounts by the fractions of years of service for that
42   member.
43     (1)  For the first fifty-five thousand dollars of
44   the member's three-year average covered wage, one-
45   twelfth of an amount equal to the applicable
46   percentage multiplier otherwise provided in this
47   subsection multiplied by fifty-five thousand dollars.
48     (2)  For that portion of a member's three-year
49   average covered wage that exceeds fifty-five thousand
50   dollars but is less than or equal to sixty-five

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 2)

© 1996 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

Last update: Tue Apr 23 13:30:03 CDT 1996
URL: /DOCS/GA/76GA/Session.2/HJournal/01700/01792.html
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