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House Journal: Page 1803: Monday, April 22, 1996

Page  26

 1   shall become subject to this chapter on the date the
 2   notification is received by the department.
 3     Sec. 51.  Section 97B.68, Code 1995, is amended by
 4   adding the following new subsection:
 5     NEW SUBSECTION.  3.  Effective July 1, 1996, an
 6   employee who participates in the federal civil service
 7   retirement program or the federal employee's
 8   retirement system may be covered under this chapter if
 9   otherwise eligible.  The employee shall not be covered
10   under this chapter, however, unless the employee is
11   not credited for service in the federal civil service
12   retirement system or the federal employee's retirement
13   system for the position to be covered under this
14   chapter.  This subsection shall not be construed to
15   permit any employer to contribute on behalf of an
16   employee for the same position and the same period of
17   service to both the Iowa public employees' retirement
18   system and either the federal civil service retirement
19   program or the federal employee's retirement system.
20     Sec. 52.  Section 97B.70, Code Supplement 1995, is
21   amended to read as follows:
22     97B.70  INTEREST AND DIVIDENDS TO MEMBERS.
23     1.  Interest For calendar years prior to Jan 
1,~ 
24   1997, interest at two percent per annum and interest
25   dividends declared by the department shall be credited
26   to the member's contributions and the employer's
27   contributions to become part of the accumulated
28   contributions thereby.
29     1. a.  The average rate of interest earned shall
be
30   determined upon the following basis:
31     a. (1)  Investment income shall include interest
32   and cash dividends on stock.
33     b. (2)  Investment income shall be accounted for
on
34   an accrual basis.
35     c. (3)  Capital gains and losses, realized or
36   unrealized, shall not be included in investment
37   income.
38     d. (4)  Mean assets shall include fixed income
39   investments valued at cost or on an amortized basis,
40   and common stocks at market values or cost, whichever
41   is lower.
42     e. (5)  The average rate of earned interest shall
43   be the quotient of the investment income and the mean
44   assets of the retirement fund.
45     2. b.  The interest dividend shall be determined
46   within sixty days after the end of each calendar year
47   as follows:
48     The dividend rate for a calendar year shall be the
49   excess of the average rate of interest earned for the
50   year over the statutory two percent rate plus twenty-

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/01800/01803.html
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