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House Journal: Page 1818: Monday, April 22, 1996

Page  41

 1   retirement of a member prior to age fifty-five, and
 2   the premise that the provision of a service retirement
 3   allowance to a member who is less than fifty-five
 4   years of age will not result in any increase in cost
 5   to the system.
 6     Sec. 83.  Section 97A.7, subsection 2, Code 1995,
 7   is amended to read as follows:
 8     2.  The several funds created by this chapter may
 9   be invested in:
10     a.  Bonds or other evidences of indebtedness
11   issued, assumed, or guaranteed by the United States of
12   America, or by any agency or instrumentality thereof.
13     b.  In savings accounts or time deposits in Iowa
14   banks approved as depositories by the executive
15   council.
16     c.  In any investments authorized for the Iowa
17   public employees' retirement system in section 97B.7,
18   subsection 2, paragraph "b".
19     Sec. 84.  Section 97A.8, subsection 1, paragraph b,
20   Code 1995, is amended to read as follows:
21     b.  On the basis of the rate of interest and of the
22   mortality, interest, and other tables adopted by the
23   board of trustees, the state commissioner of insurance
24   board of trustees, upon the advice of the actuary
25   hired by the board for that purpose, shall make each
26   valuation required by this chapter and shall
27   immediately after making such valuation, determine the
28   "normal contribution rate".  The normal contribution
29   rate shall be the rate percent of the earnable
30   compensation of all members obtained by deducting from
31   the total liabilities of the fund the sum of the
32   amount of the funds in hand to the credit of the fund
33   and dividing the remainder by one percent of the
34   present value of the prospective future compensation
35   of all members as computed on the basis of the rate of
36   interest and of mortality and service tables adopted
37   by the board of trustees, all reduced by the employee
38   contribution made pursuant to this subsection.
39   However, the normal rate of contribution shall not be
40   less than seventeen percent.  The normal rate of
41   contribution shall be determined by the state
42   commissioner of insurance board of trustees after
each
43   valuation.
44     Sec. 85.  Section 97A.8, subsection 1, paragraph c,
45   unnumbered paragraph 3, Code 1995, is amended by
46   striking the unnumbered paragraph.
47     Sec. 86.  Section 97A.8, subsection 1, paragraph f,
48   subparagraph (8), Code 1995, is amended to read as
49   follows:
50     (8)  Notwithstanding any other provision of this

Iowa General Assembly

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

© 1996 Cornell College and League of Women Voters of Iowa

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URL: /DOCS/GA/76GA/Session.2/HJournal/01800/01818.html
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