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One Hundred-sixth Calendar Day - Sixty-ninth Session Day
Hall of the House of Representatives
Des Moines, Iowa, Monday, April 22, 1996
The House met pursuant to adjournment at 1:00 p.m., Speaker pro
tempore Van Maanen of Marion in the chair.
Prayer was offered by Chaplain Marvin Boldt, of the Iowa
Fireman's Association, Traer.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Bill E. Anders, Liberty
Center, a Kindergarten student at Southeast Warren Elementary
School.
The Journal of Thursday, April 18, 1996 was approved.
LEAVE OF ABSENCE
Leave of absence was granted as follows:
Drees of Carroll, on request of Schrader of Marion; Van Fossen
of Scott, and Grubbs of Scott, until their arrival, on request
of Siegrist of Pottawattamie.
MESSAGE FROM THE SENATE
The following message was received from the Senate:
Mr. Speaker: I am directed to inform your honorable body that
the Senate has on April 18, 1996, amended and passed the
following bill in which the concurrence of the House is asked:
House File 2486, a bill for an act appropriating federal funds
made available from federal block grants and other federal
grants, allocating portions of federal block grants, and
providing procedures if federal funds are more or less than
anticipated or if federal block grants are more or less than
anticipated.
JOHN F. DWYER, Secretary
HOUSE FILE 2457 WITHDRAWN
Carroll of Poweshiek asked and received unanimous consent to
withdraw House File 2457 from further consideration by the House.
CONSIDERATION OF BILLS
SENATE AMENDMENT CONSIDERED
Brauns of Muscatine called up for consideration House File 2491,
a bill for an act relating to the care and maintenance of
pioneer cemeteries and authorizing a tax levy, amended by the
Senate, and moved that the House concur in the following Senate
amendment H-6027:
H-6027
1 Amend House File 2491, as passed by the House, as
2 follows:
3 1. Page 1, line 15, by inserting after the word
4 "fund." the following: "The maintenance and
5 improvement program for a pioneer cemetery may include
6 restoration and management of native prairie grasses
7 and wildflowers."
8 2. Page 2, line 6, by striking the word and
9 figure "Section 444.25A does" and inserting the
10 following: "Sections 444.25A and 444.25B do".
11 3. By renumbering, relettering, or redesignating
12 and correcting internal references as necessary.
The motion prevailed and the House concurred in the Senate
amendment H-6027.
Brauns of Muscatine moved that the bill, as amended by the
Senate and concurred in by the House, be read a last time now
and placed upon its passage which motion prevailed and the bill
was read a last time.
On the question "Shall the bill pass?" (H.F. 2491)
The ayes were, 91:
Arnold Bell Bernau Blodgett
Boggess Bradley Brand Branstad
Brauns Brunkhorst Burnett Carroll
Cataldo Churchill Cohoon Connors
Coon Corbett, Spkr. Cormack Daggett
Dinkla Disney Doderer Drake
Eddie Ertl Fallon Garman Gipp
Greig Greiner Gries
Grundberg Hahn Halvorson Hammitt Barry
Hanson Harper Harrison Heaton
Holveck Houser Hurley Huseman
Jacobs Jochum Klemme Koenigs
Kreiman Kremer Lamberti Larkin Lord
Main Martin Mascher May
McCoy Mertz Metcalf Meyer
Millage Moreland Mundie Murphy
Myers Nelson, B. Nelson, L. Nutt
O'Brien Ollie Osterhaus Rants
Renken Schrader Schulte Shoultz
Siegrist Sukup Teig Thomson
Tyrrell Vande Hoef Veenstra Warnstadt
Weidman Weigel Welter Wise
Witt Van Maanen,
Presiding
The nays were, none.
Absent or not voting, 9:
Baker Boddicker Brammer Drees
Grubbs Larson Salton Taylor
Van Fossen
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Ways and Means Calendar
House File 2480, a bill for an act relating to property taxation
of property given to the state or a political subdivision upon
which a life estate is retained, was taken up for consideration.
Greig of Emmet moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was
read a last time.
On the question "Shall the bill pass?" (H.F. 2480)
The ayes were, 91:
Arnold Bell Bernau Blodgett
Boggess Bradley Brand Branstad
Brauns Brunkhorst Burnett Carroll
Cataldo Churchill Cohoon Connors
Coon Corbett, Spkr. Cormack Daggett
Dinkla Disney Doderer Drake
Eddie Ertl Fallon Garman
Gipp Greig Greiner Gries
Grundberg Hahn Halvorson Hammitt Barry
Hanson Harper Harrison Heaton
Holveck Houser Hurley Huseman
Jacobs Jochum Klemme Koenigs
Kreiman Kremer Lamberti Larkin
Lord Main Martin Mascher
May McCoy Mertz Metcalf
Meyer Millage Moreland Mundie
Murphy Myers Nelson, B. Nelson, L.
Nutt O'Brien Ollie Osterhaus
Rants Renken Schrader Schulte
Shoultz Siegrist Sukup Taylor Teig
Thomson Tyrrell Vande Hoef
Veenstra Warnstadt Weidman Welter
Wise Witt Van Maanen,
Presiding
The nays were, 1:
Weigel
Absent or not voting, 8:
Baker Boddicker Brammer Drees
Grubbs Larson Salton Van Fossen
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGES
Siegrist of Pottawattamie asked and received unanimous consent
that the following bills be immediately messaged to the Senate:
House Files 2480 and 2491.
The House stood at ease at 1:23 p.m., until the fall of the
gavel.
The House resumed session at 1:45 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
RULES SUSPENDED
Gipp of Winneshiek asked and received unanimous consent to
suspend the rules for immediate consideration of House File 2495.
House File 2495, a bill for an act relating to the tax exemption
of active duty pay of national guard or armed forces military
reserve personnel for certain foreign service, was taken up for
consideration.
Halvorson of Clayton offered the following amendment H-5913
filed by him and moved its adoption:
H-5913
1 Amend House File 2495 as follows:
2 1. Page 1, lines 5 and 6, by striking the words
3 "in a qualified hazardous duty area".
4 2. Page 1, by striking lines 8 through 10 and
5 inserting the following: "Herzegovina."
Amendment H-5913 was adopted.
Halvorson of Clayton moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill
was read a last time.
On the question "Shall the bill pass?" (H.F. 2495)
The ayes were, 93:
Arnold Baker Bell Bernau
Blodgett Boggess Bradley Brand
Branstad Brauns Brunkhorst Burnett
Carroll Cataldo Churchill Cohoon
Connors Coon Corbett, Spkr.
Cormack Daggett Dinkla Disney
Doderer Drake Eddie Ertl
Fallon Garman Gipp Greig
Greiner Gries Grundberg Hahn
Halvorson Hammitt Barry Hanson Harper
Harrison Heaton Holveck Hurley
Huseman Jacobs Jochum Klemme
Koenigs Kreiman Kremer Lamberti
Larkin Lord Main Martin
Mascher May McCoy Mertz
Metcalf Meyer Millage Moreland
Mundie Murphy Myers Nelson, B.
Nelson, L. Nutt O'Brien Ollie
Osterhaus Rants Renken Schrader
Schulte Shoultz Siegrist Sukup
Taylor Teig Thomson Tyrrell
Van Fossen Vande Hoef Veenstra Warnstadt
Weidman Weigel Welter Wise
Witt Van Maanen,
Presiding
The nays were, none.
Absent or not voting, 7:
Boddicker Brammer Drees Grubbs
Houser Larson Salton
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGE
Gipp of Winneshiek asked and received unanimous consent that
House File 2495 be immediately messaged to the Senate.
The House stood at ease at 1:51 p.m., until the fall of the
gavel.
The House resumed session at 2:00 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
Unfinished Business Calendar
The House resumed consideration of Senate File 2245, a bill for
an act relating to public retirement systems, making
appropriations, and providing effective and retroactive
applicability dates, previously deferred and placed on the
unfinished business calendar.
The House stood at ease at 2:05 p.m., until the fall of the
gavel.
The House resumed session at 3:35 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
Martin of Scott offered amendment H-5515 filed by the committee
on state government as follows:
H-5515
1 Amend Senate File 2245, as amended, passed, and
2 reprinted by the Senate, as follows:
3 1. By striking everything after the enacting
4 clause and inserting the following:
5 "DIVISION I
6 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
7 Section 1. Section 97B.4, unnumbered paragraph 1,
8 Code 1995, is amended to read as follows:
9 The department, through the chief investment
10 officer and chief benefits officer, shall administer
11 this chapter. The department may adopt, amend, or
12 rescind rules, employ persons, execute contracts with
13 outside parties, make expenditures, require reports,
14 make investigations, and take other action it deems
15 necessary for the administration of the system in
16 conformity with the requirements of this chapter, the
17 applicable provisions of the Internal Revenue Code,
18 and all other applicable federal and state laws. The
19 rules shall be effective upon compliance with chapter
20 17A. Not later than the fifteenth day of December of
21 each year, the department shall submit to the governor
22 a report covering the administration and operation of
23 this chapter during the preceding fiscal year and
24 shall make recommendations for amendments to this
25 chapter. The report shall include a balance sheet of
26 the moneys in the Iowa public employees' retirement
27 fund.
28 Sec. 2. Section 97B.7, subsection 2, paragraph b,
29 unnumbered paragraphs 1 through 3, Code 1995, are
30 amended to read as follows:
31 To invest the portion of the retirement fund which
32 in the judgment of the department is not needed for
33 current payment of benefits under this chapter. The
34 department shall execute the disposition and
35 investment of moneys in the retirement fund in
36 accordance with the investment policy and goal
37 statement established by the investment board. In
38 establishing the investment policy of the fund and the
39 investment of the fund, the department and investment
40 board shall exercise the judgment and care, under the
41 circumstances then prevailing, which persons of
42 prudence, discretion, and intelligence exercise in the
43 management of their own affairs, not for the purpose
44 of speculation, but with regard to the permanent
45 disposition of the funds, considering the probable
46 income, as well as the probable safety, of their
47 capital. Within the limitations of the standard
48 prescribed in this section, the treasurer of state,
49 the department, and the board may acquire and retain
50 every kind of property and every kind of investment
Page 2
1 which persons of prudence, discretion, and
2 intelligence acquire or retain for their own account.
3 The department and investment board shall give
4 appropriate consideration to those facts and
5 circumstances that the department and investment board
6 know or should know are relevant to the particular
7 investment or investment policy involved, including
8 the role the investment plays in the total value of
9 the retirement fund.
10 For the purposes of this paragraph, appropriate
11 consideration includes, but is not limited to, a
12 determination by the department and investment board
13 that the particular investment or investment policy is
14 reasonably designed to further the purposes of the
15 retirement system, taking into consideration the risk
16 of loss and the opportunity for gain or other return
17 associated with the investment or investment policy
18 and consideration of the following factors as they
19 relate to the retirement fund:
20 Sec. 3. Section 97B.7, subsection 2, paragraph b,
21 unnumbered paragraph 5, Code 1995, is amended to read
22 as follows:
23 Except as provided in section 97B.4, if there is
24 loss to the fund, the treasurer, the department, and
25 the board are not personally liable, and the loss
26 shall be charged against the retirement fund. There
27 is appropriated from the retirement fund the amount
28 required to cover a loss. Expenses incurred in the
29 sale and purchase of securities belonging to the
30 retirement fund shall be charged to the retirement
31 fund, and there is appropriated from the retirement
32 fund the amount required for the expenses incurred.
33 Investment management expenses shall be charged to the
34 investment income of the retirement fund, and there is
35 appropriated from the retirement fund the amount
36 required for the investment management expenses,
37 subject to the limitations stated in this unnumbered
38 paragraph. The amount appropriated for a fiscal year
39 under this unnumbered paragraph shall not exceed one-
40 half four-tenths of one percent of the market value
of
41 the retirement fund. The department shall report the
42 investment management expenses for a fiscal year as a
43 percent of the market value of the retirement fund in
44 the annual report to the governor required in section
45 97B.4. A person who has signed a contract with the
46 department for investment management purposes shall
47 meet the requirements for doing business in Iowa
48 sufficient to be subject to tax under rules of the
49 department of revenue and finance.
50 Sec. 4. Section 97B.11, Code 1995, is amended to
Page 3
1 read as follows:
2 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.
3 Each employer shall deduct from the wages of each
4 member of the system a contribution in the amount of
5 three and seven-tenths percent of the covered wages
6 paid by the employer, until the member's termination
7 or retirement from employment, whichever is earlier.
8 The contributions of the employer shall be in the
9 amount of five and seventy-five hundredths percent of
10 the covered wages of the member.
11 If the total of the contributions to be deducted
12 from the wages of a member and contributions picked up
13 and paid by the employer shall not exceed one dollar
14 for any calendar quarter, contributions shall not be
15 deducted or paid concerning that member and the member
16 shall not receive credit for membership service for
17 that quarter.
18 Sec. 5. Section 97B.14, Code 1995, is amended to
19 read as follows:
20 97B.14 CONTRIBUTIONS FORWARDED.
21 Contributions deducted from the wages of the member
22 or under section 97B.11 prior to January 1, 1995,
23 member contributions picked up by the employer under
24 section 97B.11A beginning January 1, 1995, and the
25 employer's contribution shall be forwarded to the
26 department for recording and deposited with the
27 treasurer of the state to the credit of the Iowa
28 public employees' retirement fund. Contributions
29 shall be remitted monthly, if total contributions by
30 both employee and employer amount to one hundred
31 dollars or more each month, and shall be otherwise
32 paid in such manner, at such times and under such
33 conditions, either by copies of payrolls or other
34 methods necessary or helpful in securing proper
35 identification of the member, as may be prescribed by
36 the department.
37 Sec. 6. Section 97B.15, Code 1995, is amended to
38 read as follows:
39 97B.15 RULES, POLICIES, AND PROCEDURES.
40 The department may adopt rules under chapter 17A
41 and establish procedures, not inconsistent with this
42 chapter, which are necessary or appropriate to
43 implement this chapter and shall adopt reasonable and
44 proper rules to regulate and provide for the nature
45 and extent of the proofs and evidence and the method
46 of taking and furnishing the proofs and evidence in
47 order to establish the right to benefits under this
48 chapter. The department may adopt rules, and take
49 action based on the rules, to conform the requirements
50 for receipt of retirement benefits under this chapter
Page 4
1 to the mandates of applicable federal statutes and
2 regulations.
3 Prior to the adoption of rules, the department may
4 establish interim written policies and procedures, and
5 take action based on the policies and procedures, to
6 conform the requirements for receipt of retirement
7 benefits under this chapter to the applicable
8 requirements of federal law.
9 Sec. 7. Section 97B.17, unnumbered paragraph 1,
10 Code 1995, is amended to read as follows:
11 The department shall establish and maintain records
12 of each member, including but not limited to, the
13 amount of wages of each member, the contribution of
14 each member with interest, and interest dividends
15 credited. The records may be maintained in paper,
16 magnetic, or electronic form, including optical disk
17 storage. These records are the basis for the
18 compilation of the retirement benefits provided under
19 this chapter. The following records maintained under
20 this chapter containing personal identifiable
21 information are not public records for the purposes of
22 chapter 22:
23 Sec. 8. Section 97B.17, Code 1995, is amended by
24 adding the following new unnumbered paragraph:
25 NEW UNNUMBERED PARAGRAPH. Notwithstanding any
26 provisions of chapter 22 to the contrary, the
27 department's records may be released to any political
28 subdivision, instrumentality, or other agency of the
29 state solely for use in a civil or criminal law
30 enforcement activity pursuant to the requirements of
31 this paragraph. To obtain the records, the political
32 subdivision, instrumentality, or agency shall, in
33 writing, certify that the activity is authorized by
34 law, provide a written description of the information
35 desired, and describe the law enforcement activity for
36 which the information is sought. The department shall
37 not be civilly or criminally liable for the release or
38 rerelease of records in accordance with this
39 paragraph.
40 Sec. 9. Section 97B.25, Code 1995, is amended to
41 read as follows:
42 97B.25 APPLICATIONS FOR BENEFITS.
43 A representative designated by the chief benefits
44 officer and referred to in this chapter as a
45 retirement benefits specialist shall promptly examine
46 applications for retirement benefits and on the basis
47 of facts found shall determine whether or not the
48 claim is valid and if valid, the month with respect to
49 which benefits shall commence, the monthly benefit
50 amount payable, and the maximum duration. The
Page 5
1 retirement benefits specialist shall promptly notify
2 the applicant and any other interested party of the
3 decision and the reasons. Unless the applicant or
4 other interested party, within thirty calendar days
5 after the notification was mailed to the applicant's
6 or party's last known address, files an appeal as
7 provided in section 97B.20A, the decision is final and
8 benefits shall be paid or denied in accord with the
9 decision. A retirement application shall not be
10 amended or revoked by the member once the first
11 retirement allowance is paid. A member's death during
12 the first month of entitlement shall not invalidate an
13 approved application.
14 Sec. 10. Section 97B.39, Code 1995, is amended to
15 read as follows:
16 97B.39 RIGHTS NOT TRANSFERABLE _ NOT OR SUBJECT
17 TO LEGAL PROCESS _ EXCEPTIONS.
18 The right of any person to any future payment under
19 this chapter is not transferable or assignable, at law
20 or in equity, and the moneys paid or payable or rights
21 existing under this chapter are not subject to
22 execution, levy, attachment, garnishment, or other
23 legal process, or to the operation of any bankruptcy
24 or insolvency law except for the purposes of enforcing
25 child, spousal, or medical support obligations or
26 marital property orders. For the purposes of
27 enforcing child, spousal, or medical support
28 obligations, the garnishment or attachment of or the
29 execution against compensation due a person under this
30 chapter 97B shall not exceed the amount specified in
31 15 U.S.C. "/g" 1673(b). The department shall comply with
32 the provisions of a marital property order requiring
33 the selection of a particular benefit option,
34 designated beneficiary, or contingent annuitant if the
35 selection is otherwise authorized by this chapter and
36 the member has not received payment of the member's
37 first retirement allowance. However, a marital
38 property order shall not require the payment of
39 benefits to an alternative payee prior to the member's
40 retirement, prior to the date the member elects to
41 receive a lump sum distribution of accumulated
42 contributions pursuant to section 97B.53, or in an
43 amount that exceeds the benefits the member would
44 otherwise be eligible to receive pursuant to this
45 chapter.
46 Sec. 11. Section 97B.41, subsection 2, Code
47 Supplement 1995, is amended to read as follows:
48 2. "Accumulated contributions" means the total
49 obtained as of any date, by accumulating each
50 individual contribution by the member at two percent
Page 6
1 with interest plus interest dividends as provided in
2 section 97B.70, for all completed calendar years and
3 for any completed calendar year for which the interest
4 dividend has not been declared and for completed
5 months of partially completed calendar years at two
6 percent interest plus the interest dividend rate
7 calculated for the previous year, compounded
annually,
8 from the end of the calendar year in which such
9 contribution was made to the first day of the month of
10 such date as provided in section 97B.70.
11 Sec. 12. Section 97B.41, subsection 8, paragraph
12 b, subparagraph (6), Code Supplement 1995, is amended
13 to read as follows:
14 (6) Employees hired for temporary employment of
15 less than six months or one thousand and forty hours
16 in a calendar year. An employee who works for an
17 employer for six or more months in a calendar year or
18 who works for an employer for more than one thousand
19 forty hours in a calendar year is not a temporary
20 employee under this subparagraph. Adjunct instructors
21 are temporary employees for the purposes of this
22 chapter. As used in this section, unless the context
23 otherwise requires, "adjunct instructors" means
24 instructors employed by a community college or a
25 university governed by the state board of regents
26 without a continuing contract, whose teaching load
27 does not exceed one-half time for two full semesters
28 or three full quarters per calendar year.
29 Sec. 13. Section 97B.41, subsection 8, paragraph
30 b, Code Supplement 1995, is amended by adding the
31 following new subparagraph:
32 NEW SUBPARAGRAPH. (20) Persons employed through
33 any program described in section 15.225, subsection 1,
34 and provided by the Iowa conservation corps.
35 Sec. 14. Section 97B.41, Code Supplement 1995, is
36 amended by adding the following new subsection:
37 NEW SUBSECTION. 10A. "Internal Revenue Code"
38 means the Internal Revenue Code as defined in section
39 422.3.
40 Sec. 15. Section 97B.41, subsection 12, Code
41 Supplement 1995, is amended to read as follows:
42 12. "Membership service" means service rendered by
43 a member after July 4, 1953. Years of membership
44 service shall be counted to the complete quarter
45 calendar year. However, membership service for a
46 calendar year shall not include more than four
47 quarters. In determining a member's period of
48 membership service, the department shall combine all
49 periods of service for which the member has made
50 contributions. If the department has not maintained
Page 7
1 the accumulated contribution account of the member for
2 a period of service, as provided pursuant to section
3 97B.53, subsection 6, the department shall credit the
4 member for the service if the member submits
5 satisfactory proof to the department that the member
6 did make the contributions for the period of service
7 and did not take a refund for the period of service.
8 However, the department shall not implement the
9 amendments to this subsection, as enacted in 1994 Iowa
10 Acts, chapter 1183, unless and until the department
11 determines that the most recent annual actuarial
12 valuation of the retirement system indicates that the
13 employer and employee contribution rates in effect
14 under section 97B.11 can absorb the amendments to this
15 subsection and to section 97B.53, subsections 3 and 7,
16 section 97B.53, subsection 6, unnumbered paragraph 1,
17 and section 97B.70, by enacting a new subsection 4,
18 contained in 1994 Iowa Acts, chapter 1183, after
19 meeting the other established priorities of the
20 system. Until the amendments are implemented, the
21 department shall continue to implement the provisions
22 of section 97B.41, subsection 12, Code Supplement
23 1993. As used in this subsection, unless the context
24 otherwise requires, "other established priorities of
25 the system" means that commencing January 1 following
26 the most recent annual actuarial valuation of the
27 system, the department has increased the covered wage
28 limitation from the previous year by three thousand
29 dollars, in accordance with section 97B.41, subsection
30 20, paragraph "b", subparagraph (11), and that the
31 department has implemented the amendments to section
32 97B.66, unnumbered paragraphs 1 and 2, section 97B.72,
33 unnumbered paragraphs 1 and 2, section 97B.72A,
34 subsection 1, unnumbered paragraph 1, section 97B.73A,
35 unnumbered paragraph 1, and section 97B.74, unnumbered
36 paragraphs 1 and 2, contained in 1994 Iowa Acts,
37 chapter 1183.
38 Sec. 16. Section 97B.41, Code Supplement 1995, is
39 amended by adding the following new subsection:
40 NEW SUBSECTION. 13A. "Regular service" means
41 service for an employer other than special service.
42 Sec. 17. Section 97B.41, Code Supplement 1995, is
43 amended by adding the following new subsection:
44 NEW SUBSECTION. 14A. "Retirement" means that
45 period of time beginning when a member who has filed
46 an approved application for a retirement allowance has
47 survived into at least the first day of the member's
48 first month of entitlement and ending when the member
49 dies.
50 Sec. 18. Section 97B.41, subsection 15, paragraphs
Page 8
1 a and b, Code Supplement 1995, are amended to read as
2 follows:
3 a. Service in the armed forces of the United
4 States, if the employee was employed by the employer
5 immediately prior to entry into the armed forces, and
6 if the employee was released from service and returns
7 to covered employment with the employer within twelve
8 months of the date on which the employee has the right
9 of release from service or within a longer period as
10 provided required by the applicable laws of the
United
11 States.
12 b. Leave of absence or vacation authorized by the
13 employer for a period not exceeding twelve months. A
14 leave of absence authorized pursuant to the
15 requirements of the federal Family and Medical Leave
16 Act of 1993 is considered a leave of absence
17 authorized by the employer.
18 Sec. 19. Section 97B.41, Code Supplement 1995, is
19 amended by adding the following new subsection:
20 NEW SUBSECTION. 16A. "Special service" means
21 service for an employer while employed in a protection
22 occupation as provided in section 97B.49, subsection
23 16, paragraph "a", and as a county sheriff, deputy
24 sheriff, or airport fire fighter as provided in
25 section 97B.49, subsection 16, paragraph "b".
26 Sec. 20. Section 97B.41, subsection 18, Code
27 Supplement 1995, is amended to read as follows:
28 18. a. "Three-year average covered wage" means a
29 member's covered wages averaged for the highest three
30 years of the member's service, except as otherwise
31 provided in this subsection. The highest three years
32 of a member's covered wages shall be determined using
33 calendar years. However, if a member's final quarter
34 of a year of employment does not occur at the end of a
35 calendar year, the department may determine the wages
36 for the third year by computing the average quarter of
37 all quarters from the member's highest calendar year
38 of covered wages not being used in the selection of
39 the two highest years and using the computed average
40 quarter for each quarter in the third year in which no
41 wages have been reported in combination with the final
42 quarter or quarters of the member's service to create
43 a full year. However, the department shall not use
44 the member's final quarter of wages if using that
45 quarter would reduce the member's three-year average
46 covered wage. If the three-year average covered wage
47 of a member exceeds the highest maximum covered wages
48 in effect for a calendar year during the member's
49 period of service, the three-year average covered wage
50 of the member shall be reduced to the highest maximum
Page 9
1 covered wages in effect during the member's period of
2 service.
3 b. Notwithstanding any other provisions of this
4 subsection to the contrary, the three-year average
5 covered wage shall be computed as follows for the
6 following members:
7 (1) For a member who retires during the calendar
8 year beginning January 1, 1997, and whose three-year
9 average covered wage at the time of retirement exceeds
10 forty-eight thousand dollars, the member's covered
11 wages averaged for the highest four years of the
12 member's service or forty-eight thousand dollars,
13 whichever is greater.
14 (2) For a member who retires during the calendar
15 year beginning January 1, 1998, and whose three-year
16 average covered wage at the time of retirement exceeds
17 fifty-two thousand dollars, the member's covered wages
18 averaged for the highest five years of the member's
19 service or fifty-two thousand dollars, whichever is
20 greater.
21 (3) For a member who retires during the calendar
22 year beginning January 1, 1999, and whose three-year
23 average covered wage at the time of retirement exceeds
24 fifty-five thousand dollars, the member's covered
25 wages averaged for the highest six years of the
26 member's service or fifty-five thousand dollars,
27 whichever is greater.
28 (4) For a member who retires on or after January
29 1, 2000, but before January 1, 2003, and whose three-
30 year average covered wage at the time of retirement
31 exceeds fifty-five thousand dollars, the member's
32 covered wages averaged for the highest seven years of
33 the member's service or fifty-five thousand dollars,
34 whichever is greater.
35 For purposes of this paragraph, the highest years
36 of the member's service shall be determined using
37 calendar years and may be determined using one
38 computed year calculated in the manner and subject to
39 the restrictions provided in paragraph "a".
40 Sec. 21. Section 97B.41, subsection 20, paragraph
41 b, subparagraph (11), unnumbered paragraphs 1 and 2,
42 Code Supplement 1995, are amended by striking the
43 unnumbered paragraphs and inserting in lieu thereof
44 the following:
45 (11) For the calendar year beginning January 1,
46 1991, wages not in excess of thirty-one thousand
47 dollars.
48 (11A) For the calendar year beginning January 1,
49 1992, wages not in excess of thirty-four thousand
50 dollars.
Page 10
1 (11B) For the calendar year beginning January 1,
2 1993, wages not in excess of thirty-five thousand
3 dollars.
4 (11C) For the calendar year beginning January 1,
5 1994, wages not in excess of thirty-eight thousand
6 dollars.
7 (11D) For the calendar year beginning January 1,
8 1995, wages not in excess of forty-one thousand
9 dollars.
10 (11E) For the calendar year beginning January 1,
11 1996, wages not in excess of forty-four thousand
12 dollars.
13 (11F) Commencing with the calendar year beginning
14 January 1, 1997, and for each subsequent calendar
15 year, wages not in excess of the amount permitted for
16 that year under section 401(a)(17) of the Internal
17 Revenue Code.
18 Sec. 22. Section 97B.41, subsection 20, paragraph
19 b, subparagraph (11), unnumbered paragraph 3, Code
20 Supplement 1995, is amended to read as follows:
21 Notwithstanding any other provision of this chapter
22 providing for the payment of the benefits provided in
23 section 97B.49, subsection 16 or 17, the department
24 shall establish the covered wages limitation which
25 applies to members covered under section 97B.49,
26 subsection 16 or 17, at the same level as is
27 established under this subparagraph for other members
28 of the system.
29 Sec. 23. Section 97B.42, unnumbered paragraph 1,
30 Code 1995, is amended to read as follows:
31 Each employee whose employment commences after July
32 4, 1953, or who has not qualified for credit for prior
33 service rendered prior to July 4, 1953, or any
34 publicly elected official of the state or any of its
35 political subdivisions shall become a member upon the
36 first day in which such employee is employed. The
37 employee shall continue to be an active member so long
38 as the employee continues in covered employment. The
39 employee shall cease to be an active member if the
40 employee joins another retirement system in the state
41 which is maintained in whole or in part by public
42 contributions or payments and receives retirement
43 credit for service in that other system for the same
44 position previously covered under this chapter. If an
45 employee joins another publicly maintained retirement
46 system and ceases to be an active member under this
47 chapter, the employee may elect to leave the
48 employee's accumulated contributions in the retirement
49 fund or receive a refund of the employee's accumulated
50 contributions in the manner provided for members who
Page 11
1 are terminating covered employment pursuant to section
2 97B.53. However, if an employee joins another
3 publicly maintained retirement system and leaves the
4 employee's accumulated contributions in the retirement
5 fund, the employee shall not be eligible to receive
6 retirement benefits until the employee has a bona fide
7 retirement from employment with a covered employer as
8 provided in section 97B.52A, or until the employee
9 would otherwise be eligible to receive benefits upon
10 attaining the age of seventy years as provided in
11 section 97B.46.
12 Sec. 24. Section 97B.42, unnumbered paragraph 4,
13 Code 1995, is amended to read as follows:
14 Persons who are members of any other retirement
15 system in the state which is maintained in whole or in
16 part by public contributions other than persons who
17 are covered under the provisions of chapter 97, Code
18 1950, as amended by the Fifty-fourth General Assembly
19 on the date of the repeal of said chapter, under the
20 provisions of sections 97.50 through 97.53 shall not
21 become members under this chapter while still actively
22 participating in that other retirement system unless
23 the persons do not receive retirement credit for
24 service in that other system for the position to be
25 covered under this chapter.
26 Sec. 25. Section 97B.42, unnumbered paragraph 5,
27 Code 1995, is amended to read as follows:
28 Nothing herein contained shall be construed to
29 permit any person in public employment to be an active
30 member of employer to make any public contributions
or
31 payments on behalf of an employee in the same position
32 for the same period of time to both the Iowa public
33 employees' retirement system and of any other
34 retirement system in the state which is supported in
35 whole or in part by public contributions or payments
36 except as heretofore provided.
37 Sec. 26. Section 97B.42, Code 1995, is amended by
38 adding the following new unnumbered paragraph:
39 NEW UNNUMBERED PARAGRAPH. For purposes of this
40 section, a "retirement system in the state which is
41 maintained in whole or in part by public contributions
42 or payments" shall not include a deferred compensation
43 plan established under section 509A.12 or a tax-
44 sheltered annuity qualified under section 403(b) of
45 the Internal Revenue Code.
46 Sec. 27. Section 97B.48, subsection 1, Code 1995,
47 is amended to read as follows:
48 1. Retirement allowances shall be paid monthly,
49 except that an allowance of less than six hundred
50 dollars a year may, at the member's option, be paid as
Page 12
1 a lump sum in an actuarial equivalent amount equal
to
2 the sum of the member's and employer's accumulated
3 contributions and the retirement dividends standing to
4 the member's credit before December 31, 1966. Receipt
5 of the lump-sum payment by a member shall terminate
6 any and all entitlement for the period of service
7 covered of the member under this chapter.
8 Sec. 28. Section 97B.48A, subsection 1, Code 1995,
9 is amended to read as follows:
10 1. If, after the first day of the month in which
11 the member attains the age of fifty-five years and
12 until the member's sixty-fifth birthday, a member
who
13 has not reached the member's sixty-fifth birthday and
14 who has a bona fide retirement under this chapter is
15 in regular full-time employment during a calendar
16 year, the member's retirement allowance shall be
17 suspended for as long as the member remains in
18 employment for the remainder of that calendar year
19 reduced by fifty cents for each dollar the member
20 earns over the limit provided in this subsection.
21 However, effective January 1, 1992, employment is not
22 full-time employment until the member receives
23 remuneration in an amount in excess of seven thousand
24 four hundred forty dollars for a calendar year, or an
25 amount equal to the amount of remuneration permitted
26 for a calendar year for persons under sixty-five years
27 of age before a reduction in federal Social Security
28 retirement benefits is required, whichever is higher.
29 Effective the first of the month in which a member
30 attains the age of sixty-five years, a retired member
31 may receive a retirement allowance without a reduction
32 after return to covered employment regardless of the
33 amount of remuneration received.
34 If a member dies and the full amount of the
35 reduction from retirement allowances required under
36 this subsection has not been paid, the remaining
37 amounts shall be deducted from the payments made, if
38 any, to the member's designated beneficiary or
39 contingent annuitant. If the member has selected an
40 option under which remaining payments are not required
41 or the remaining payments are insufficient to satisfy
42 the full amount of the reduction from retirement
43 allowances required under this subsection, the amount
44 still unpaid shall be a claim against the member's
45 estate.
46 Sec. 29. Section 97B.48A, subsection 4, Code 1995,
47 is amended to read as follows:
48 4. The department shall pay to the member the
49 accumulated contributions of the member and to the
50 employer the employer contributions, plus two percent
Page 13
1 interest plus interest dividends as provided in
2 section 97B.70, for all completed calendar years,
3 compounded annually as provided in section 97B.70,
on
4 the covered wages earned by a retired member that are
5 not used in the recalculation of the retirement
6 allowance of a member.
7 Sec. 30. Section 97B.49, subsection 4, Code
8 Supplement 1995, is amended by adding the following
9 new unnumbered paragraph:
10 NEW UNNUMBERED PARAGRAPH. Effective January 1,
11 1997, for members who retired on or after July 1,
12 1953, and before July 1, 1990, with at least ten years
13 of prior and membership service, the minimum monthly
14 benefit payable at the normal retirement date for
15 prior and membership service shall be two hundred
16 dollars. The minimum monthly benefit payable shall be
17 increased by ten dollars for each year of prior and
18 membership service beyond ten years, up to a maximum
19 of twenty additional years of prior and membership
20 service. If benefits commenced on an early retirement
21 date, the amount of the benefit shall be reduced in
22 accordance with section 97B.50. If an optional
23 allowance was selected under section 97B.51, the
24 amount payable shall be the actuarial equivalent of
25 the minimum benefit.
26 Sec. 31. Section 97B.49, subsection 5, paragraph
27 b, Code Supplement 1995, is amended to read as
28 follows:
29 b. For each active or inactive vested member
30 retiring on or after July 1, 1990, with four or more
31 complete years of service, a monthly benefit shall be
32 computed which is equal to one-twelfth of an amount
33 equal to fifty-two percent the applicable percentage
34 multiplier of the three-year average covered wage
35 multiplied by a fraction of years of service. The
36 applicable percentage multiplier shall be the
37 following:
38 (1) For active or inactive vested members retiring
39 on or after July 1, 1990, but before July 1, 1991,
40 fifty-two percent.
41 (2) For active or inactive vested members retiring
42 on or after July 1, 1991, but before July 1, 1992,
43 fifty-four percent.
44 (3) For active or inactive vested members retiring
45 on or after July 1, 1992, but before July 1, 1993,
46 fifty-six percent.
47 (4) For active or inactive vested members retiring
48 on or after July 1, 1993, but before July 1, 1994,
49 fifty-seven and four-tenths percent.
50 (5) For active or inactive vested members retiring
Page 14
1 on or after July 1, 1994, sixty percent.
2 The applicable percentage multiplier shall be
3 subject to adjustments as provided in paragraph "e".
4 Commencing July 1, 1991, the department shall
5 increase the percentage multiplier of the three-year
6 average covered wage by an additional two percent each
7 July 1 until reaching sixty percent of the three-year
8 average covered wage if the annual actuarial valuation
9 of the retirement system indicates for that year that
10 the cost of this increase in the percentage of the
11 three-year average covered wage used in computing
12 retirement benefits can be absorbed within the
13 employer and employee contribution rates in effect
14 under section 97B.11. However, commencing July 1,
15 1994, if the annual actuarial valuation of the
16 retirement system indicates that the employer and
17 employee contribution rates in effect under section
18 97B.11 can absorb an increase in the percentage
19 multiplier in excess of two percent, the department
20 shall increase the percentage multiplier for that year
21 beyond two percent to the extent which the increase
22 can be absorbed by the contribution rates in effect,
23 not to exceed a maximum percentage multiplier of sixty
24 percent. The increase in the percentage multiplier
25 for a year applies only to the members retiring on or
26 after July 1 of the respective year.
27 If the annual actuarial valuation of the retirement
28 system in any year indicates that the full cost of the
29 increase provided under this paragraph cannot be
30 absorbed within the employer and employee contribution
31 rates in effect under section 97B.11, the department
32 shall reduce the increase to a level which the
33 department determines can be so absorbed.
34 Notwithstanding any other provision of this chapter
35 providing for the payment of the benefits provided in
36 subsection 16 or 17, the department shall establish
37 apply the percentage multiplier which applies to
38 members covered under subsection 16 or 17 at the same
39 level as is established under this subsection for
40 other members of the system, including any
41 modification in the percentage multiplier as provided
42 in paragraph "e".
43 By November 15, 1995, the department shall set
44 aside from other moneys in the retirement fund three
45 million eight hundred sixty thousand dollars. The
46 moneys set aside shall be from the funds generated by
47 the employer and employee contributions in effect
48 under section 97B.11 that exceed the amount necessary
49 to fund the system's existing liabilities, as
50 determined in the annual actuarial valuation of the
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
Page 16
1 thousand dollars, one-twelfth of an amount equal to
2 the applicable percentage multiplier otherwise
3 provided in this subsection, reduced by ten percentage
4 points, multiplied by that portion.
5 (3) For that portion of a member's three-year
6 average covered wage that exceeds sixty-five thousand
7 dollars but is less than or equal to seventy-five
8 thousand dollars, one-twelfth of an amount equal to
9 the applicable percentage multiplier otherwise
10 provided in this subsection, reduced by fifteen
11 percentage points, multiplied by that portion.
12 (4) For that portion of a member's three-year
13 average covered wage that exceeds seventy-five
14 thousand dollars but is less than or equal to eighty-
15 five thousand dollars, one-twelfth of an amount equal
16 to the applicable percentage multiplier otherwise
17 provided in this subsection, reduced by twenty
18 percentage points, multiplied by that portion.
19 (5) For that portion of a member's three-year
20 average covered wage that exceeds eighty-five thousand
21 dollars but is less than or equal to ninety-five
22 thousand dollars, one-twelfth of an amount equal to
23 the applicable percentage multiplier otherwise
24 provided in this subsection, reduced by thirty
25 percentage points, multiplied by that portion.
26 (6) For that portion of a member's three-year
27 average covered wage that exceeds ninety-five thousand
28 dollars, one-twelfth of an amount equal to the
29 applicable percentage multiplier otherwise provided in
30 this subsection, reduced by forty percentage points,
31 multiplied by that portion.
32 The covered wage categories referred to in
33 subparagraphs (1) through (6) of this paragraph and
34 the fifty-five thousand dollar amount otherwise
35 specified in this paragraph shall be increased by the
36 department for each fiscal year, beginning July 1,
37 1998, by an amount that represents the increase in the
38 consumer price index during the previous twelve-month
39 period ending on June 30, as published annually in the
40 federal register by the federal department of labor,
41 bureau of labor statistics.
42 Sec. 33. Section 97B.49, subsection 13, Code
43 Supplement 1995, is amended to read as follows:
44 13. a. A member who retired from the system
45 between January 1, 1976, and June 30, 1982, or a
46 contingent annuitant or beneficiary of such a member,
47 shall receive with the November 1994 1996 and the
48 November 1995 1997 monthly benefit payments a
49 retirement dividend equal to one two hundred
eighty-
50 one twenty-three percent of the monthly benefit
Page 17
1 payment the member received for the preceding June, or
2 the most recently received benefit payment, whichever
3 is greater. The retirement dividend does not affect
4 the amount of a monthly benefit payment.
5 b. Each member who retired from the system between
6 July 4, 1953, and December 31, 1975, or a contingent
7 annuitant or beneficiary of such a member, shall
8 receive with the November 1994 1996 and the November
9 1995 1997 monthly benefit payments a retirement
10 dividend equal to two hundred thirty-six ninety-two
11 percent of the monthly benefit payment the member
12 received for the preceding June, or the most recently
13 received benefit payment, whichever is greater. The
14 retirement dividend does not affect the amount of a
15 monthly benefit payment.
16 c. Notwithstanding the determination of the amount
17 of a retirement dividend under paragraph "a", "b",
18 "d", or "f", a retirement dividend shall not be less
19 than twenty-five dollars.
20 d. A member who retired from the system between
21 July 1, 1982, and June 30, 1986, or a contingent
22 annuitant or beneficiary of such a member, shall
23 receive with the November 1994 1996 and the November
24 1995 1997 monthly benefit payments a retirement
25 dividend equal to forty-nine seventy-four percent of
26 the monthly benefit payment the member received for
27 the preceding June, or the most recently received
28 benefit payment, whichever is greater. The retirement
29 dividend does not affect the amount of a monthly
30 benefit payment.
31 e. If the member dies on or after July 1 of the
32 dividend year but before the payment date, the full
33 amount of the retirement dividend for that year shall
34 be paid to the designated beneficiary to the
member's
35 account, upon notification of the member's death.
If
36 there is no beneficiary designated by the member, the
37 department shall pay the dividend to the member's
38 estate. The beneficiary, or the representative of the
39 member's estate, must apply for the dividend within
40 two years after the dividend is payable or the
41 dividend is forfeited.
42 f. A member who retired from the system between
43 July 1, 1986, and June 30, 1990, or a contingent
44 annuitant or beneficiary of such a member, shall
45 receive with the November 1996 and the November 1997
46 monthly benefit payments a retirement dividend in an
47 amount determined by the general assembly equal to
48 twenty-four percent of the monthly benefit payment the
49 member received for the preceding June, or the most
50 recently received benefit payment, whichever is
Page 18
1 greater. The retirement dividend does not affect the
2 amount of a monthly benefit payment.
3 Sec. 34. Section 97B.49, subsection 16, paragraph
4 e, Code Supplement 1995, is amended to read as
5 follows:
6 e. Annually, the department of personnel shall
7 actuarially determine the cost of the additional
8 benefits provided for members covered under paragraph
9 "a" and the cost of the additional benefits provided
10 for members covered under paragraph "b" as percents of
11 the covered wages of the employees covered by this
12 subsection. Sixty percent of the cost shall be paid
13 by the employers of employees covered under this
14 subsection and forty percent of the cost shall be paid
15 by the employees. The employer and employee
16 contributions required under this paragraph are in
17 addition to the contributions paid under section
18 sections 97B.11 and 97B.11A.
19 Sec. 35. Section 97B.49, subsection 16, Code
20 Supplement 1995, is amended by adding the following
21 new paragraph:
22 NEW PARAGRAPH. m. For the fiscal year commencing
23 July 1, 1992, and each succeeding fiscal year, the
24 department of public safety shall pay to the
25 department of personnel from funds appropriated to the
26 department of public safety, the amount necessary to
27 pay the employer share of the cost of the additional
28 benefits provided to a fire prevention inspector peace
29 officer pursuant to paragraph "d", subparagraph (8).
30 Sec. 36. Section 97B.49, Code Supplement 1995, is
31 amended by adding the following new subsection:
32 NEW SUBSECTION. 17. a. An active or inactive
33 vested member, who is or has been employed in both
34 special service and regular service, who retires on or
35 after July 1, 1996, with four or more completed years
36 of service and at the time of retirement is at least
37 fifty-five years of age, may elect to receive, in lieu
38 of the receipt of any other benefits under this
39 section, a combined monthly retirement allowance equal
40 to the sum of the following:
41 (1) One-twelfth of an amount equal to the
42 applicable percentage multiplier established in
43 subsection 5 of the member's three-year average
44 covered wage multiplied by a fraction of years of
45 service. The fraction of years of service for
46 purposes of this subparagraph shall be the actual
47 years of service, not to exceed twenty-two, earned in
48 a position described in subsection 16, paragraph "b",
49 for which special service contributions were made,
50 divided by twenty-two.
Page 19
1 (2) One-twelfth of an amount equal to the
2 applicable percentage multiplier established in
3 subsection 5 of the member's three-year average
4 covered wage multiplied by a fraction of years of
5 service. The fraction of years of service for
6 purposes of this subparagraph shall be the actual
7 years of service, not to exceed twenty-five, earned in
8 a position described in subsection 16, paragraph "a",
9 for which special service contributions were made,
10 divided by twenty-five.
11 (3) One-twelfth of an amount equal to the
12 applicable percentage multiplier established in
13 subsection 5 of the member's three-year average
14 covered wage multiplied by a fraction of years of
15 service. The fraction of years of service for
16 purposes of this subparagraph shall be the actual
17 years of service, not to exceed thirty, for which
18 regular service contributions were made, divided by
19 thirty. However, any otherwise applicable age
20 reduction for early retirement shall apply to the
21 calculation under this subparagraph.
22 In calculating the fractions of years of service
23 under subparagraphs (1) and (2), a member shall not
24 receive special service credit for years of service
25 for which the member and the member's employer did not
26 make the required special service contributions to the
27 department.
28 b. In calculating the combined monthly retirement
29 allowance pursuant to paragraph "a", the sum of the
30 fraction of years of service provided in paragraph
31 "a", subparagraphs (1), (2), and (3), shall not exceed
32 one. If the sum of the fractions of years of service
33 would exceed one, the department shall deduct years of
34 service first from the calculation under paragraph
35 "a", subparagraph (3), and then from the calculation
36 under paragraph "a", subparagraph (2), if necessary,
37 so that the sum of the fractions of years of service
38 shall equal one.
39 c. In calculating the combined monthly retirement
40 allowance pursuant to paragraph "a", for members
41 retiring on or after July 1, 1997, whose three-year
42 average covered wage exceeds fifty-five thousand
43 dollars, each calculation under paragraph "a",
44 subparagraphs (1), (2), and (3) of this subsection
45 shall be subject to reduction, calculated in the
46 manner provided in subsection 5, paragraph "e".
47 Sec. 37. Section 97B.50, subsection 2, Code 1995,
48 is amended to read as follows:
49 2. a. A vested member who retires from the system
50 due to disability and commences receiving disability
Page 20
1 benefits pursuant to the federal Social Security Act,
2 42 U.S.C. "/g" 423 et seq., and who has not reached the
3 normal retirement date, shall receive benefits under
4 section 97B.49 and shall not have benefits reduced
5 upon retirement as required under subsection 1
6 regardless of whether the member has completed thirty
7 or more years of membership service. However, the
8 benefits shall be suspended during any period in which
9 the member returns to covered employment. This
10 section takes effect July 1, 1990, for a member
11 meeting the requirements of this paragraph who retired
12 from the system at any time after July 4, 1953.
13 Eligible members are entitled to the receipt of
14 retroactive adjustment payments back to July 1, 1990,
15 notwithstanding the requirements of subsection 4.
16 b. A vested member who retires from the system due
17 to disability and commences receiving disability
18 benefits pursuant to the federal Railroad Retirement
19 Act, 45 U.S.C. "/g" 231 et seq., and who has not reached
20 the normal retirement date, shall receive benefits
21 under section 97B.49 and shall not have benefits
22 reduced upon retirement as required under subsection 1
23 regardless of whether the member has completed thirty
24 or more years of membership service. However, the
25 benefits shall be suspended during any period in which
26 the member returns to covered employment. This
27 section takes effect July 1, 1990, for a member
28 meeting the requirements of this paragraph who retired
29 from the system at any time since July 4, 1953.
30 Eligible members are entitled to the receipt of
31 retroactive adjustment payments back to July 1, 1990,
32 notwithstanding the requirements of subsection 4.
33 Sec. 38. Section 97B.51, subsection 3, Code
34 Supplement 1995, is amended to read as follows:
35 3. A member who had elected to take the option
36 stated in subsection 1 of this section may, at any
37 time prior to retirement, revoke such an election by
38 written notice to the department. A member shall not
39 change or revoke an election once the first retirement
40 allowance is paid.
41 Sec. 39. Section 97B.51, subsection 5, Code
42 Supplement 1995, is amended to read as follows:
43 5. At retirement, a member may designate that upon
44 the member's death, a specified amount of money shall
45 be paid to a named beneficiary, and the member's
46 monthly retirement allowance shall be reduced by an
47 actuarially determined amount to provide for the lump
48 sum payment. The amount designated by the member must
49 be in thousand dollar increments, and the and shall
be
50 limited to the amount of the member's accumulated
Page 21
1 contributions. The amount designated shall not lower
2 the monthly retirement allowance of the member by more
3 than one-half the amount payable under section 97B.49,
4 subsection 1 or 5. A member may designate a different
5 beneficiary if the original named beneficiary
6 predeceases the member.
7 Sec. 40. Section 97B.51, subsection 6, Code
8 Supplement 1995, is amended to read as follows:
9 6. A member may elect to receive a decreased
10 retirement allowance during the member's lifetime with
11 provision that in event of the member's death during
12 the first one hundred twenty months of retirement,
13 monthly payments of the member's decreased retirement
14 allowance shall be made to the member's beneficiary
15 until a combined total of one hundred twenty monthly
16 payments have been made to the member and the member's
17 beneficiary. When the member designates multiple
18 beneficiaries, the present value of the remaining
19 payments shall be paid in a lump sum to each
20 beneficiary, either in equal shares to the
21 beneficiaries, or if the member specifies otherwise in
22 a written request, in the specified proportion. A
23 member may designate a different beneficiary if the
24 original named beneficiary predeceases the member.
25 Sec. 41. Section 97B.52, subsection 1, Code
26 Supplement 1995, is amended to read as follows:
27 1. If a member dies prior to the member's first
28 month of entitlement, the accumulated contributions of
29 the member at the date of death plus the product of an
30 amount equal to the highest year of covered wages of
31 the deceased member and the number of years of
32 membership service divided by thirty the applicable
33 denominator shall be paid to the member's beneficiary
34 in a lump sum payment. However, a lump sum payment
35 made to a beneficiary under this subsection due to the
36 death of a member shall not be less than the amount
37 that would have been payable on the death of the
38 member on June 30, 1984, under this subsection as it
39 appeared in the 1983 Code.
40 As used in this subsection, "applicable
41 denominator" means the following, based upon the type
42 of membership service in which the member served
43 either on the date of death, or if the member died
44 after terminating service, on the date of the member's
45 last termination of service:
46 a. For regular service, the applicable denominator
47 is thirty.
48 b. For service in a protection occupation, as
49 defined in section 97B.49, subsection 16, paragraph
50 "d", the applicable denominator is twenty-five.
Page 22
1 c. For service as a sheriff, deputy sheriff, or
2 airport fire fighter, as provided in section 97B.49,
3 subsection 16, paragraph "b", the applicable
4 denominator is twenty-two.
5 Effective July 1, 1978, a method of payment under
6 this subsection filed with the department by a member
7 does not apply.
8 Sec. 42. Section 97B.52, subsection 3, paragraph
9 b, Code Supplement 1995, is amended to read as
10 follows:
11 b. If a death benefit is due and payable, interest
12 shall continue to accumulate through the month
13 preceding the month in which payment is made to the
14 designated beneficiary, heirs at law, or the estate
15 unless the payment of the death benefit is delayed
16 because of a dispute between alleged heirs, in which
17 case the benefit due and payable shall be placed in a
18 noninterest bearing escrow account until the
19 beneficiary is determined in accordance with this
20 section. In order to receive the death benefit, the
21 beneficiary, heirs at law, or the estate, or any other
22 third-party payee, must apply to the department within
23 two five years of the member's death.
24 The department shall reinstate a designated
25 beneficiary's right to receive a death benefit beyond
26 the five-year limitation if the designated beneficiary
27 was the member's spouse at the time of the member's
28 death and the distribution is required or permitted
29 pursuant to Internal Revenue Code section 401(a)(9)
30 and the applicable treasury regulations.
31 Sec. 43. Section 97B.52, subsection 5, Code
32 Supplement 1995, is amended to read as follows:
33 5. Following written notification to the
34 department, a beneficiary of a deceased member may
35 waive current and future rights to payments to which
36 the beneficiary would otherwise be entitled under
37 sections 97B.51 and this section. Upon receipt of the
38 waiver, the department shall pay to the estate of the
39 deceased member the amount designated to be received
40 by the that beneficiary to the member's other
41 surviving beneficiary or beneficiaries or to the
42 estate of the deceased member, as elected by the
43 beneficiary in the waiver. If the payments being
44 waived are payable to the member's estate and an
45 estate is not probated, the payments shall be paid to
46 the deceased member's surviving spouse, or if there is
47 no surviving spouse, to the member's heirs other than
48 the beneficiary who waived the payments.
49 Sec. 44. Section 97B.52A, Code Supplement 1995, is
50 amended by adding the following new subsection:
Page 23
1 NEW SUBSECTION. 3. A member who terminates
2 covered employment but maintains an employment
3 relationship with an employer that made contributions
4 to the system on the member's behalf does not have a
5 bona fide retirement until all employment, including
6 employment which is not covered by this chapter, with
7 such employer is terminated for at least thirty days.
8 In order to receive retirement benefits, the member
9 must file a completed application for benefits form
10 with the department before returning to any employment
11 with the same employer.
12 Sec. 45. Section 97B.53, subsection 3, Code
13 Supplement 1995, is amended to read as follows:
14 3. The accumulated contributions of a terminated,
15 vested member shall be credited with interest,
16 including interest dividends, in the manner provided
17 in section 97B.70. Interest and interest dividends
18 shall be credited to the accumulated contributions of
19 members who terminate service and subsequently become
20 vested in accordance with section 97B.70. However,
21 the department shall not implement the amendments to
22 this subsection or to subsection 6, unnumbered
23 paragraph 1, or to subsection 7, as enacted in 1994
24 Iowa Acts, chapter 1183, unless and until the
25 department determines that the most recent annual
26 actuarial valuation of the retirement system indicates
27 that the employer and employee contribution rates in
28 effect under section 97B.11 can absorb the amendments
29 to these provisions of this section and the amendments
30 to section 97B.41, subsection 12, and section 97B.70,
31 by enacting a new subsection 4, contained in 1994 Iowa
32 Acts, chapter 1183, after meeting the other
33 established priorities of the system, as defined in
34 section 97B.41, subsection 12. Until the amendments
35 are implemented, the department shall continue to
36 implement the provisions of section 97B.53,
37 subsections 3 and 7, and section 97B.53, subsection 6,
38 unnumbered paragraph 1, 1993 Code of Iowa.
39 Sec. 46. Section 97B.53B, subsection 1, paragraph
40 c, subparagraph (4), Code 1995, is amended to read as
41 follows:
42 (4) A distribution Annual distributions of less
43 than two hundred dollars of taxable income.
44 Sec. 47. Section 97B.66, unnumbered paragraph 1,
45 Code Supplement 1995, is amended to read as follows:
46 A vested or retired member who was a member of the
47 teachers insurance and annuity association-college
48 retirement equity fund at any time between July 1,
49 1967 and June 30, 1971 and who became a member of the
50 system on July 1, 1971, upon submitting verification
Page 24
1 of service and wages earned during the applicable
2 period of service under the teachers insurance and
3 annuity association-college retirement equity fund,
4 may make employer and employee contributions to the
5 system based upon the covered wages of the member and
6 the covered wages and the contribution rates in effect
7 for all or a portion of that period of service and
8 receive credit for membership service under this
9 system equivalent to the applicable period of
10 membership service in the teachers insurance and
11 annuity association-college retirement equity fund for
12 which the contributions have been made. In addition,
13 a member making employer and employee contributions
14 because of membership in the teachers insurance and
15 annuity association-college retirement equity fund
16 under this section who was a member of the system on
17 June 30, 1967 and withdrew the member's accumulated
18 contributions because of membership on July 1, 1967 in
19 the teachers insurance and annuity association-college
20 retirement equity fund, may make employee
21 contributions to the system for all or a portion of
22 the period of service under the system prior to July
23 1, 1967. A member making contributions pursuant to
24 this section may make the contributions either for the
25 entire applicable period of service, or, effective
26 upon the date that the department determines that the
27 amendments to this paragraph and unnumbered paragraph
28 2 contained in 1994 Iowa Acts, chapter 1183, shall be
29 implemented, for portions of the period of service,
30 and if contributions are made for portions of the
31 period of service, the contributions shall be in
32 increments of one or more years, as long as the
33 increments represent full years and not a portion of a
34 year calendar quarters. However, the department
shall
35 not implement the amendments to this paragraph or
36 unnumbered paragraph 2, as enacted in 1994 Iowa Acts,
37 chapter 1183, unless and until the department
38 determines that the most recent annual actuarial
39 valuation of the retirement system indicates that the
40 employer and employee contribution rates in effect
41 under section 97B.11 can absorb the amendments to this
42 paragraph and unnumbered paragraph 2 and to section
43 97B.72, unnumbered paragraphs 1 and 2, section
44 97B.72A, subsection 1, unnumbered paragraph 1, section
45 97B.73A, unnumbered paragraph 1, and section 97B.74,
46 unnumbered paragraphs 1 and 2, contained in 1994 Iowa
47 Acts, chapter 1183, after meeting the other
48 established priority of the system. Until the
49 amendments are implemented, the department shall
50 continue to implement the provisions of section
Page 25
1 97B.66, unnumbered paragraphs 1 and 2, Code Supplement
2 1993. As used in this section, unless the context
3 otherwise requires, "other established priority of the
4 system" means that commencing January 1 following the
5 most recent annual actuarial valuation of the system,
6 the department has increased the covered wage
7 limitation from the previous year by three thousand
8 dollars, in accordance with section 97B.41, subsection
9 20, paragraph "b", subparagraph (11).
10 Sec. 48. Section 97B.66, unnumbered paragraph 2,
11 Code Supplement 1995, is amended to read as follows:
12 The contributions paid by the vested or retired
13 member shall be equal to the accumulated contributions
14 as defined in section 97B.41, subsection 2, by the
15 member for the applicable period of service, and the
16 employer contribution for the applicable period of
17 service under the teachers insurance and annuity
18 association-college retirement equity fund, that would
19 have been or had been contributed by the vested or
20 retired member and the employer, if applicable, plus
21 interest on the contributions that would have accrued
22 for the applicable period from the date the previous
23 applicable period of service commenced under this
24 system or from the date the service of the member in
25 the teachers insurance and annuity association-college
26 retirement equity fund commenced to the date of
27 payment of the contributions by the member equal to
28 two percent plus the interest dividend rate applicable
29 for each year as provided in section 97B.70.
30 Sec. 49. Section 97B.66, unnumbered paragraph 3,
31 Code Supplement 1995, is amended to read as follows:
32 However, effective January 1, 1994, the department
33 shall ensure that the member, in exercising an option
34 provided in this section, does not exceed the amount
35 of annual additions to a member's account permitted
36 pursuant to section 415 of the federal Internal
37 Revenue Code.
38 Sec. 50. Section 97B.68, subsection 1, Code 1995,
39 is amended to read as follows:
40 1. Effective July 1, 1988 1996, a person who is a
41 member of the federal civil service retirement program
42 or the federal employee's retirement system is not
43 eligible for membership in the Iowa public employees'
44 retirement system for the same position, and this
45 chapter does not apply to that employee. An employee
46 whose membership in the federal civil service
47 retirement program or the federal employee's
48 retirement system is subsequently terminated shall
49 immediately notify the employee's employer and the
50 department of personnel of that fact, and the employee
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-
Page 27
1 five hundredths of one percent. The average rate of
2 interest earned and the interest dividend rate in
3 percent shall be calculated to the nearest one
4 hundredth, that is, to two decimal places. Interest
5 and interest dividends calculated pursuant to this
6 subsection shall be compounded annually.
7 2. For calendar years beginning January 1, 1997, a
8 per annum interest rate at one percent above the
9 interest rate on one-year certificates of deposit
10 shall be credited to the member's contributions and
11 the employer's contributions to become part of the
12 accumulated contributions. For purposes of this
13 subsection, the interest rate on one-year certificates
14 of deposit shall be determined by the department based
15 on the average rate for such certificates of deposit
16 as of the first business day of each year as published
17 in a publication of general acceptance in the business
18 community. The per annum interest rate shall be
19 credited on a quarterly basis by applying one-quarter
20 of the annual interest rate to the sum of the
21 accumulated contributions as of the end of the
22 previous calendar quarter.
23 3. Interest and interest dividends shall be
24 credited to the contributions of active members and
25 inactive vested members until the first of the month
26 coinciding with or next following the member's
27 retirement date.
28 4. Effective upon the date that the department
29 determines that this subsection shall be implemented,
30 interest Interest and interest dividends shall be
31 credited to the contributions of a person who leaves
32 the contributions in the retirement fund upon
33 termination from covered employment prior to achieving
34 vested status, but who subsequently achieves vested
35 status. The interest and interest dividends shall be
36 credited to the contributions commencing either upon
37 the date that the department determines that this
38 subsection shall be implemented, or the date on which
39 the person becomes a vested member, whichever is
40 later. Interest and interest dividends shall cease
41 upon the first of the month coinciding with or next
42 following the person's retirement date. If the
43 department no longer maintains the accumulated
44 contribution account of the person pursuant to section
45 97B.53, but the person submits satisfactory proof to
46 the department that the person did make the
47 contributions, the department shall credit interest
48 and interest dividends in the manner provided in this
49 subsection. However, the department shall not
50 implement this subsection, unless and until the
Page 28
1 department determines that the most recent annual
2 actuarial valuation of the retirement system indicates
3 that the employer and employee contribution rates in
4 effect under section 97B.11 can absorb the enactment
5 of this subsection and the amendments to section
6 97B.41, subsection 12, section 97B.53, subsections 3
7 and 7, and section 97B.53, subsection 6, unnumbered
8 paragraph 1, contained in 1994 Iowa Acts, chapter
9 1183, after meeting the other established priorities
10 of the system, as defined in section 97B.41,
11 subsection 12.
12 Sec. 53. Section 97B.72, unnumbered paragraphs 1
13 and 2, Code Supplement 1995, are amended to read as
14 follows:
15 Persons who are members of the Seventy-first
16 General Assembly or a succeeding general assembly who
17 submit proof to the department of membership in the
18 general assembly during any period beginning July 4,
19 1953, may make contributions to the system for all or
20 a portion of the period of service in the general
21 assembly, and receive credit for the applicable period
22 for which contributions are made. The contributions
23 made by the member shall be equal to the accumulated
24 contributions as defined in section 97B.41, subsection
25 2, which would have been made if the member of the
26 general assembly had been a member of the system
27 during the applicable period. The proof of membership
28 in the general assembly and payment of accumulated
29 contributions shall be transmitted to the department.
30 A member making contributions pursuant to this section
31 may make the contributions either for the entire
32 applicable period of service, or, effective upon the
33 date that the department determines that the
34 amendments to this paragraph and unnumbered paragraph
35 2 contained in 1994 Iowa Acts, chapter 1183, shall be
36 implemented, for portions of the period of service,
37 and if contributions are made for portions of the
38 period of service, the contributions shall be in
39 increments of one or more years, as long as the
40 increments represent full years and not a portion of a
41 year calendar quarters. However, the department
shall
42 not implement the amendments to this paragraph or
43 unnumbered paragraph 2, as enacted in 1994 Iowa Acts,
44 chapter 1183, unless and until the department
45 determines that the most recent annual actuarial
46 valuation of the retirement system indicates that the
47 employer and employee contribution rates in effect
48 under section 97B.11 can absorb the amendments to this
49 paragraph and unnumbered paragraph 2 and to section
50 97B.66, unnumbered paragraphs 1 and 2, section
Page 29
1 97B.72A, subsection 1, unnumbered paragraph 1, section
2 97B.73A, unnumbered paragraph 1, and section 97B.74,
3 unnumbered paragraphs 1 and 2, contained in 1994 Iowa
4 Acts, chapter 1183, after meeting the other
5 established priority of the system, as defined in
6 section 97B.66. Until the amendments are implemented,
7 the department shall continue to implement the
8 provisions of section 97B.72, unnumbered paragraphs 1
9 and 2, Code Supplement 1993.
10 There is appropriated from moneys available to the
11 general assembly under section 2.12 an amount
12 sufficient to pay the contributions of the employer
13 based on the period of service for which the members
14 have paid accumulated contributions in an amount equal
15 to the contributions which would have been made if the
16 members of the general assembly who made employee
17 contributions had been members of the system during
18 the applicable period of service in the general
19 assembly plus two percent interest plus and
interest
20 dividends at the rate provided in section 97B.70 for
21 all completed calendar years, and for any completed
22 calendar year for which the interest dividend has not
23 been declared and for completed months of partially
24 completed calendar years at two percent interest plus
25 the interest dividend rate calculated for the previous
26 year, compounded annually, from the end of the
27 calendar year in which contribution was made to the
28 first day of the month of such date as provided in
29 section 97B.70.
30 Sec. 54. Section 97B.72, unnumbered paragraph 3,
31 Code Supplement 1995, is amended to read as follows:
32 However, effective January 1, 1994, the department
33 shall ensure that the member, in exercising an option
34 provided in this section, does not exceed the amount
35 of annual additions to a member's account permitted
36 pursuant to section 415 of the federal Internal
37 Revenue Code.
38 Sec. 55. Section 97B.72A, subsection 1, Code
39 Supplement 1995, is amended to read as follows:
40 1. An active or A vested or retired member
of the
41 system who was a member of the general assembly prior
42 to July 1, 1988, may make contributions to the system
43 for all or a portion of the period of service in the
44 general assembly. The contributions made by the
45 member shall be equal to the accumulated contributions
46 as defined in section 97B.41, subsection 2, which
47 would have been made if the member of the general
48 assembly had been a member of the system during the
49 applicable period of service in the general assembly.
50 A member making contributions pursuant to this section
Page 30
1 may make the contributions either for the entire
2 applicable period of service, or for portions of the
3 period of service, and, effective upon the date that
4 the department determines that the amendments to this
5 paragraph contained in 1994 Iowa Acts, chapter 1183,
6 shall be implemented, if contributions are made for
7 portions of the period of service, the contributions
8 shall be in increments of one or more years, as long
9 as the increments represent full years and not a
10 portion of a year calendar quarters. The member of
11 the system shall submit proof to the department of
12 membership in the general assembly. The department
13 shall credit the member with the period of membership
14 service for which contributions are made. However,
15 the department shall not implement the amendments to
16 this paragraph, as enacted in 1994 Iowa Acts, chapter
17 1183, unless and until the department determines that
18 the most recent annual actuarial valuation of the
19 retirement system indicates that the employer and
20 employee contribution rates in effect under section
21 97B.11 can absorb the amendments to this paragraph and
22 to section 97B.66, unnumbered paragraphs 1 and 2,
23 section 97B.72, unnumbered paragraphs 1 and 2, section
24 97B.73A, unnumbered paragraph 1, and section 97B.74,
25 unnumbered paragraphs 1 and 2, contained in 1994 Iowa
26 Acts, chapter 1183, after meeting the other
27 established priority of the system, as defined in
28 section 97B.66. Until the amendments are implemented,
29 the department shall continue to implement the
30 provisions of section 97B.72A, subsection 1,
31 unnumbered paragraph 1, Code Supplement 1993.
32 There is appropriated from the general fund of the
33 state to the department an amount sufficient to pay
34 the contributions of the employer based on the period
35 of service of members of the general assembly for
36 which the member paid accumulated contributions under
37 this section. The amount appropriated is equal to the
38 employer contributions which would have been made if
39 the members of the system who made employee
40 contributions had been members of the system during
41 the period for which they made employee contributions
42 plus two percent interest plus the interest dividend
43 rate applicable at the rate provided in section
97B.70
44 for each year compounded annually as provided in
45 section 97B.70.
46 Sec. 56. Section 97B.72A, subsection 2, Code
47 Supplement 1995, is amended to read as follows:
48 2. Effective January 1, 1994, however However,
the
49 department shall ensure that the member, in exercising
50 an option provided in this section, does not exceed
Page 31
1 the amount of annual additions to a member's account
2 permitted pursuant to section 415 of the federal
3 Internal Revenue Code.
4 Sec. 57. Section 97B.73, unnumbered paragraph 1,
5 Code 1995, is amended to read as follows:
6 A vested or retired member who was in public
7 employment comparable to employment covered under this
8 chapter in another state or in the federal government,
9 or who was a member of another public retirement
10 system in this state, including but not limited to the
11 teachers insurance annuity association-college
12 retirement equities fund, but who was not retired
13 under that system, upon submitting verification of
14 membership and service in the other public system to
15 the department, including proof that the member has no
16 further claim upon a retirement benefit from that
17 other public system, may make employer and employee
18 contributions to the system either for the entire
19 period of service in the other public system, or for
20 partial service in the other public system in
21 increments of one or more years, as long as the
22 increments represent full years and not a portion of a
23 year calendar quarters. The member may also make
one
24 lump sum contribution to the system which represents
25 the entire period of service in the other public
26 system, even if the period of time exceeds one year or
27 includes a portion of a year. If the member wishes to
28 transfer only a portion of the service value of
29 another public system to this system and the other
30 public system allows a partial withdrawal of a
31 member's system credits, the member shall receive
32 credit for membership service in this system
33 equivalent to the number of years period of service
34 transferred from the other public system. The
35 contribution payable shall be based upon the member's
36 covered wages for the most recent full calendar year
37 at the applicable rates in effect for that calendar
38 year under sections 97B.11 and 97B.49 and multiplied
39 by the member's years of service in other public
40 employment. If the member's most recent covered wages
41 were earned prior to the most recent calendar year,
42 the member's covered wages shall be adjusted by the
43 department by an inflation factor to reflect changes
44 in the economy since the covered wages were earned.
45 Sec. 58. Section 97B.73, unnumbered paragraph 6,
46 Code 1995, is amended to read as follows:
47 However, effective January 1, 1994, the department
48 shall ensure that the member, in exercising an option
49 provided in this section, does not exceed the amount
50 of annual additions to a member's account permitted
Page 32
1 pursuant to section 415 of the federal Internal
2 Revenue Code.
3 Sec. 59. Section 97B.73A, unnumbered paragraph 1,
4 Code Supplement 1995, is amended to read as follows:
5 A part-time county attorney may elect in writing to
6 the department to make employee contributions to the
7 system for the county attorney's previous service as a
8 county attorney and receive credit for membership
9 service in the system for the applicable period of
10 service as a part-time county attorney for which
11 employee contributions are made. The contributions
12 paid by the member shall be equal to the accumulated
13 contributions, as defined in section 97B.41,
14 subsection 2, for the applicable period of membership
15 service. A member making contributions pursuant to
16 this section may make the contributions either for the
17 entire applicable period of service, or, effective
18 upon the date that the department determines that the
19 amendments to this paragraph contained in 1994 Iowa
20 Acts, chapter 1183, shall be implemented, for portions
21 of the period of service, and if contributions are
22 made for portions of the period of service, the
23 contributions shall be in increments of one or more
24 years, as long as the increments represent full years
25 and not a portion of a year calendar quarters. A
26 member who elects to make contributions under this
27 section shall notify the applicable county board of
28 supervisors of the member's election, and the county
29 board of supervisors shall pay to the department the
30 employer contributions that would have been
31 contributed by the employer under section 97B.11 plus
32 interest on the contributions that would have accrued
33 if the county attorney had been a member of the system
34 for the applicable period of service. However, the
35 department shall not implement the amendments to this
36 paragraph, as enacted in 1994 Iowa Acts, chapter 1183,
37 unless and until the department determines that the
38 most recent annual actuarial valuation of the
39 retirement system indicates that the employer and
40 employee contribution rates in effect under section
41 97B.11 can absorb the amendments to this paragraph and
42 to section 97B.66, unnumbered paragraphs 1 and 2,
43 section 97B.72, unnumbered paragraphs 1 and 2, section
44 97B.72A, subsection 1, unnumbered paragraph 1, and
45 section 97B.74, unnumbered paragraphs 1 and 2,
46 contained in 1994 Iowa Acts, chapter 1183, after
47 meeting the other established priority of the system,
48 as defined in section 97B.66. Until the amendments
49 are implemented, the department shall continue to
50 implement the provisions of section 97B.73A,
Page 33
1 unnumbered paragraph 1, Code Supplement 1993.
2 Sec. 60. Section 97B.73A, unnumbered paragraph 3,
3 Code Supplement 1995, is amended to read as follows:
4 However, effective January 1, 1994, the department
5 shall ensure that the member, in exercising an option
6 provided in this section, does not exceed the amount
7 of annual additions to a member's account permitted
8 pursuant to section 415 of the federal Internal
9 Revenue Code.
10 Sec. 61. Section 97B.74, unnumbered paragraphs 1
11 and 2, Code Supplement 1995, are amended to read as
12 follows:
13 An active, A vested, or retired member who
was a
14 member of the system at any time on or after July 4,
15 1953, and who received a refund of the member's
16 contributions for that period of membership service,
17 may elect in writing to the department to make
18 contributions to the system for all or a portion of
19 the period of membership service for which a refund of
20 contributions was made, and receive credit for the
21 period of membership service for which contributions
22 are made. The contributions repaid by the member for
23 such service shall be equal to the accumulated
24 contributions, as defined in section 97B.41,
25 subsection 2, received by the member for the
26 applicable period of membership service plus interest
27 on the accumulated contributions for the applicable
28 period from the date of receipt by the member to the
29 date of repayment equal to two percent plus at the
30 interest dividend rate provided in section 97B.70
31 applicable for each year compounded annually as
32 provided in section 97B.70.
33 An active member must have at least one quarter's
34 reportable wages on file and have membership service,
35 including that period of membership service for which
36 a refund of contributions was made, sufficient to give
37 the member vested status. A member making
38 contributions pursuant to this section may make the
39 contributions either for the entire applicable period
40 of service, or, effective upon the date that the
41 department determines that the amendments to this
42 paragraph and unnumbered paragraph 1 contained in 1994
43 Iowa Acts, chapter 1183, shall be implemented, for
44 portions of the period of service, and if
45 contributions are made for portions of the period of
46 service, the contributions shall be in increments of
47 one or more years, as long as the increments represent
48 full years and not a portion of a year calendar
49 quarters. However, the department shall not
implement
50 the amendments to this paragraph or unnumbered
Page 34
1 paragraph 1, as enacted in 1994 Iowa Acts, chapter
2 1183, unless and until the department determines that
3 the most recent annual actuarial valuation of the
4 retirement system indicates that the employer and
5 employee contribution rates in effect under section
6 97B.11 can absorb the amendments to this paragraph and
7 to unnumbered paragraph 1 and to section 97B.66,
8 unnumbered paragraphs 1 and 2, section 97B.72,
9 unnumbered paragraphs 1 and 2, section 97B.72A,
10 subsection 1, unnumbered paragraph 1, and section
11 97B.73A, unnumbered paragraph 1, contained in 1994
12 Iowa Acts, chapter 1183, after meeting the other
13 established priority of the system, as defined in
14 section 97B.66. Until the amendments are implemented,
15 the department shall continue to implement the
16 provisions of section 97B.74, unnumbered paragraphs 1
17 and 2, Code Supplement 1993.
18 Sec. 62. Section 97B.74, unnumbered paragraph 4,
19 Code Supplement 1995, is amended by striking the
20 unnumbered paragraph.
21 Sec. 63. Section 97B.80, unnumbered paragraph 1,
22 Code 1995, is amended to read as follows:
23 Effective July 1, 1992, a vested or retired member,
24 who at any time served on active duty in the armed
25 forces of the United States, upon submitting
26 verification of the dates of the active duty service,
27 may make employer and employee contributions to the
28 system based upon the member's covered wages for the
29 most recent full calendar year in which the member had
30 reportable wages at the applicable rates in effect for
31 that year under sections 97B.11 and 97B.49, for all or
32 a portion of the period of time of the active duty
33 service, in increments of no greater than one year and
34 not less than one or more calendar quarter
quarters,
35 and receive credit for membership service and prior
36 service for the period of time for which the
37 contributions are made. However, the member may not
38 make contributions in an increment of less than one
39 year more than once. The member may also make one
40 lump sum contribution to the system which represents
41 the period of time of the active duty service, even if
42 the period of time exceeds one year. If the member's
43 most recent covered wages were earned prior to the
44 most recent calendar year, the member's covered wages
45 shall be adjusted by the department by an inflation
46 factor to reflect changes in the economy. The
47 department shall adjust benefits for a six-month
48 period prior to the date the member pays contributions
49 under this section if the member is receiving a
50 retirement allowance at the time the contribution
Page 35
1 payment is made. Verification of active duty service
2 and payment of contributions shall be made to the
3 department. However, a member is not eligible to make
4 contributions under this section if the member is
5 receiving, is eligible to receive, or may in the
6 future be eligible to receive retirement pay from the
7 United States government for active duty in the armed
8 forces, except for retirement pay granted by the
9 United States government under retired pay for
10 nonregular service (10 U.S.C. "/g" 1331, et seq.). A
11 member receiving retired pay for nonregular service
12 who makes contributions under this section shall
13 provide information required by the department
14 documenting time periods covered under retired pay for
15 nonregular service.
16 Sec. 64. Section 97B.80, unnumbered paragraph 3,
17 Code 1995, is amended to read as follows:
18 However, effective January 1, 1994, the department
19 shall ensure that the member, in exercising an option
20 provided in this section, does not exceed the amount
21 of annual additions to a member's account permitted
22 pursuant to section 415 of the federal Internal
23 Revenue Code.
24 Sec. 65. DEVELOPMENT OF PROPOSAL FOR ESTABLISHING
25 A DEFINED CONTRIBUTION OPTION - IOWA PUBLIC
26 EMPLOYEES' RETIREMENT SYSTEM - REPORT. The Iowa
27 public employees' retirement system division, in
28 consultation with the public retirement systems
29 committee established in section 97D.4, shall develop
30 a proposal concerning various alternatives for
31 establishing a defined contribution option for members
32 of the Iowa public employees' retirement system. On
33 or before September 1, 1997, the Iowa public
34 employees' retirement system division shall file a
35 report with the legislative service bureau, for
36 distribution to the public retirement systems
37 committee, which contains a proposal, or proposals,
38 for establishing a defined contribution option. The
39 report shall also contain actuarial information
40 concerning the costs of the proposal or proposals.
41 DIVISION II
42 TEACHERS' PENSION AND ANNUITY RETIREMENT SYSTEMS
43 Sec. 66. Section 12B.10, subsection 6, Code 1995,
44 is amended by adding the following new paragraph e and
45 relettering the subsequent paragraphs:
46 NEW PARAGRAPH. e. A pension and annuity
47 retirement system governed by chapter 294.
48 Sec. 67. Section 12B.10A, subsection 6, Code 1995,
49 is amended by adding the following new paragraph e and
50 relettering the subsequent paragraphs:
Page 36
1 NEW PARAGRAPH. e. A pension and annuity
2 retirement system governed by chapter 294.
3 Sec. 68. Section 12B.10B, subsection 3, Code 1995,
4 is amended by adding the following new paragraph e and
5 relettering the subsequent paragraphs:
6 NEW PARAGRAPH. e. A pension and annuity
7 retirement system governed by chapter 294.
8 Sec. 69. Section 12B.10C, Code 1995, is amended by
9 adding the following new subsection 4 and renumbering
10 the subsequent subsections:
11 NEW SUBSECTION. 4. A pension and annuity
12 retirement system governed by chapter 294.
13 Sec. 70. NEW SECTION. 294.10B RIGHTS NOT
14 TRANSFERABLE - NOT SUBJECT TO LEGAL PROCESS.
15 The right of any person to any future payment under
16 a pension and annuity retirement system established in
17 this chapter shall not be transferable or assignable,
18 at law or in equity, and shall not be subject to
19 execution, levy, attachment, garnishment, or other
20 legal process, or to the operation of any bankruptcy
21 or insolvency law, except for the purposes of
22 enforcing child, spousal, or medical support
23 obligations, or marital property orders. For the
24 purposes of enforcing child, spousal, or medical
25 support obligations, the garnishment or attachment of
26 or the execution against benefits due a person under
27 such a retirement system shall not exceed the amount
28 specified in 15 U.S.C. "/g" 1673(b).
29 DIVISION III
30 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT,
31 ACCIDENT, AND DISABILITY SYSTEM
32 Sec. 71. Section 97A.5, subsection 9, Code 1995,
33 is amended to read as follows:
34 9. DUTIES OF COMMISSIONER OF INSURANCE ACTUARY.
35 The state commissioner of insurance actuary hired by
36 the board of trustees shall be the technical advisor
37 of the board of trustees on matters regarding the
38 operation of the funds created by the provisions of
39 this chapter and shall perform such other duties as
40 are required in connection therewith.
41 Sec. 72. Section 97A.5, subsections 10 through 12,
42 Code 1995, are amended to read as follows:
43 10. TABLES - RATES. Immediately after the
44 establishment of this system, the state commissioner
45 of insurance The actuary hired by the board of
46 trustees shall make such investigation of anticipated
47 interest earnings and of the mortality, service, and
48 compensation experience of the members of the system
49 as the actuary shall recommend and the board of
50 trustees shall authorize recommends, and on the
basis
Page 37
1 of such the investigation, the actuary shall
recommend
2 for adoption by the board of trustees such shall
adopt
3 the tables and such the rates as are required in
4 subsection 11 of this section. The board of trustees
5 shall adopt the rate of interest and tables, and
6 certify rates of contributions to be used by the
7 system.
8 11. ACTUARIAL INVESTIGATION. In the year 1952,
9 and at At least once in each two-year period
10 thereafter, the state commissioner of insurance
the
11 actuary hired by the board of trustees shall make an
12 actuarial investigation in the mortality, service, and
13 compensation experience of the members and
14 beneficiaries of the system, and the interest and
15 other earnings on the moneys and other assets of the
16 system, and shall make a valuation of the assets and
17 liabilities of the funds of the system, and taking
18 into account the results of such the investigation
and
19 valuation, the board of trustees shall:
20 a. Adopt for the system such interest rate,
21 mortality and other tables as shall be deemed
22 necessary;
23 b. Certify the rates of contribution payable by
24 the state of Iowa in accordance with section 97A.8.
25 12. VALUATION. On the basis of such the rate of
26 interest and such tables as adopted by the
board of
27 trustees shall adopt, the state commissioner of
28 insurance the actuary hired by the board of trustees
29 shall make an annual valuation of the assets and
30 liabilities of the funds of the system created by this
31 chapter.
32 Sec. 73. Section 97A.5, Code 1995, is amended by
33 adding the following new subsections:
34 NEW SUBSECTION. 14. INVESTMENT CONTRACTS. The
35 board of trustees may execute contracts and agreements
36 with investment advisors, consultants, and investment
37 management and benefit consultant firms in the
38 administration of the funds established in section
39 97A.8.
40 NEW SUBSECTION. 15. LIABILITY. The department,
41 the board of trustees, and the treasurer of state are
42 not personally liable for claims based upon an act or
43 omission of the person performed in the discharge of
44 the person's duties under this chapter, even if those
45 actions or omissions violate the standards established
46 in section 97A.7, except for acts or omissions which
47 involve malicious or wanton misconduct.
48 Sec. 74. Section 97A.6, subsection 1, paragraph a,
49 Code 1995, is amended to read as follows:
50 a. Any member in service may retire upon the
Page 38
1 member's written application to the board of trustees,
2 setting forth at what time, not less than thirty nor
3 more than ninety days subsequent to the execution and
4 filing therefor, the member desires to be retired,
5 provided, that the said member at the time so
6 specified for retirement shall have attained the age
7 of fifty-five and shall have completed twenty-two
8 years or more of creditable service, and
9 notwithstanding that, during such period of
10 notification, the member may have separated from the
11 service. However, a member may retire at fifty years
12 of age and receive a reduced retirement allowance
13 pursuant to subsection 2A.
14 Sec. 75. Section 97A.6, subsection 2, paragraph d,
15 subparagraph (3), Code 1995, is amended to read as
16 follows:
17 (3) For a member who terminates service, other
18 than by death or disability, on or after October 16,
19 1992, but before July 1, 1996, and who does not
20 withdraw the member's contributions pursuant to
21 section 97A.16, upon the member's retirement there
22 shall be added six-tenths percent of the member's
23 average final compensation for each year of service
24 over twenty-two years. However, this subparagraph
25 does not apply to more than eight additional years of
26 service.
27 Sec. 76. Section 97A.6, subsection 2, paragraph d,
28 Code 1995, is amended by adding the following new
29 subparagraph:
30 NEW SUBPARAGRAPH. (4) For a member who terminates
31 service, other than by death or disability, on or
32 after July 1, 1996, and who does not withdraw the
33 member's contributions pursuant to section 97A.16,
34 upon the member's retirement there shall be added one
35 and one-half percent of the member's average final
36 compensation for each year of service over twenty-two
37 years. However, this subparagraph does not apply to
38 more than eight additional years of service.
39 Sec. 77. Section 97A.6, subsection 10, Code 1995,
40 is amended to read as follows:
41 10. OPTIONAL ALLOWANCE. With the provision that
42 no optional selection shall be effective in case a
43 beneficiary dies within thirty days after retirement,
44 in which event such a beneficiary shall be considered
45 as an active member at the time of death, until the
46 first payment on account of any benefit becomes
47 normally due, any beneficiary may elect to receive the
48 beneficiary's benefit in a retirement allowance
49 payable throughout life, or may elect to receive the
50 actuarial equivalent at that time of the beneficiary's
Page 39
1 retirement allowance in a lesser retirement allowance
2 payable throughout life with the provision that an
3 amount in money not exceeding the amount of the
4 beneficiary's accumulated contributions shall be
5 immediately paid in cash to such member or some other
6 benefit or benefits shall be paid either to the member
7 or to such person or persons as the member shall
8 nominate, provided such cash payment or other benefit
9 or benefits, together with the lesser retirement
10 allowance, shall be certified by the state
11 commissioner of insurance actuary to be of
equivalent
12 actuarial value to the member's retirement allowance
13 and shall be approved by the board of trustees;
14 provided, that a cash payment to such member or
15 beneficiary at the time of retirement of an amount not
16 exceeding fifty percent of the member's or
17 beneficiary's accumulated contributions shall be made
18 by the board of trustees upon said member's or
19 beneficiary's election.
20 Sec. 78. Section 97A.6, subsection 12, unnumbered
21 paragraph 1, Code 1995, is amended to read as follows:
22 Pension to surviving spouse and children of
23 deceased pensioned members. In the event of the death
24 of any member receiving a retirement allowance under
25 the provisions of subsections 2, 2A, 4, or 6 of this
26 section there shall be paid a pension:
27 Sec. 79. Section 97A.6, subsection 12, paragraph
28 a, Code 1995, is amended to read as follows:
29 a. To the member's surviving spouse, equal to one-
30 half the amount received by the deceased beneficiary,
31 but in no instance less than an amount equal to twenty
32 twenty-five percent of the monthly earnable
33 compensation paid to an active member having the rank
34 of senior patrol officer of the Iowa highway safety
35 patrol, and in addition a monthly pension equal to the
36 monthly pension payable under subsection 9, paragraph
37 "c," of this section for each child under eighteen
38 years of age or twenty-two years of age if applicable;
39 or
40 Sec. 80. Section 97A.6, subsection 14, paragraph
41 a, subparagraphs (1), (2), and (3), Code 1995, are
42 amended to read as follows:
43 (1) Twenty-five Thirty percent for members
44 receiving a service retirement allowance and for
45 beneficiaries receiving a pension under subsection 9
46 of this section. However, effective July 1, 1990, for
47 members who retired before that date, thirty percent
48 shall be the applicable percentage for members and
49 beneficiaries under this subparagraph.
50 (2) Twenty-five Thirty percent for members with
Page 40
1 five or more years of membership service who are
2 receiving an ordinary disability retirement allowance.
3 However, effective July 1, 1990, for members who
4 retired before that date, thirty percent shall be the
5 applicable percentage for members under this
6 subparagraph.
7 (3) Twelve and one-half Fifteen percent for
8 members with less than five years of membership
9 service who are receiving an ordinary disability
10 retirement allowance, and for beneficiaries receiving
11 a pension under subsection 8 of this section.
12 However, effective July 1, 1990, for members who
13 retired before that date, fifteen percent shall be the
14 applicable percentage for members and beneficiaries
15 under this subparagraph.
16 Sec. 81. Section 97A.6, subsection 14, paragraph
17 d, Code 1995, is amended to read as follows:
18 d. A retired member eligible for benefits under
19 the provisions of subsection 1 is not eligible for the
20 annual readjustment of pensions provided in this
21 subsection unless the member served at least twenty-
22 two years and attained the age of fifty-five years
23 prior to the member's termination of employment.
24 Sec. 82. Section 97A.6, Code 1995, is amended by
25 adding the following new subsection:
26 NEW SUBSECTION. 2A. EARLY RETIREMENT BENEFITS.
27 a. Notwithstanding the calculation of the service
28 retirement allowance under subsection 2, beginning
29 July 1, 1996, a member who has completed twenty-two
30 years or more of creditable service and is at least
31 fifty years of age, but less than fifty-five years of
32 age, who has otherwise completed the requirements for
33 retirement under subsection 1, may retire and receive
34 a reduced service retirement allowance pursuant to
35 this subsection. The service retirement allowance for
36 a member less than fifty-five years of age shall be
37 calculated in the manner prescribed in subsection 2,
38 except that the percentage multiplier of the member's
39 average final compensation used in the determination
40 of the service retirement allowance shall be reduced
41 by the board of trustees pursuant to paragraph "b".
42 b. On July 1, 1996, and on each July 1 thereafter,
43 the board of trustees shall determine for the
44 respective fiscal year the percent by which the
45 percentage multiplier under subsection 2 shall be
46 reduced for each month that a member's retirement date
47 precedes the member's fifty-fifth birthday. The board
48 of trustees shall make this determination based upon
49 the most recent actuarial valuation of the system, the
50 calculation of the acturial cost for each month of
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
Page 42
1 chapter, beginning July 1, 1996, and each fiscal year
2 thereafter, the member's contribution rate shall be
3 equivalent to the member's contribution rate provided
4 under section 411.8, subsection 1, paragraph "f", for
5 the statewide fire and police retirement system for
6 the applicable fiscal year an amount equal to the
7 member's contribution rate times each member's
8 compensation shall be paid to the pension accumulation
9 fund from the earnable compensation of the member.
10 For the purposes of this subparagraph, the member's
11 contribution rate shall be nine and thirty-five
12 hundredths percent. However, the system shall
13 increase the member's contribution rate as necessary
14 to cover any increase in cost to the system resulting
15 from statutory changes which are enacted by any
16 session of the general assembly meeting after January
17 1, 1995, if the increase cannot be absorbed within the
18 contribution rates otherwise established pursuant to
19 this paragraph, but subject to a maximum employee
20 contribution rate of eleven and three-tenths percent.
21 After the employee contribution reaches eleven and
22 three-tenths percent, sixty percent of the additional
23 cost of such statutory changes shall be paid by the
24 employer under paragraph "c" and forty percent of the
25 additional cost shall be paid by employees under this
26 paragraph.
27 Sec. 87. Section 97A.8, subsection 3, Code 1995,
28 is amended to read as follows:
29 3. EXPENSE FUND. The expense fund shall be the
30 fund to which shall be credited all money provided by
31 the state of Iowa to pay the administration expenses
32 of the system and from which shall be paid all the
33 expenses necessary in connection with the
34 administration and operation of the system.
35 Biennially the board of trustees shall estimate the
36 amount of money necessary to be paid into the expense
37 fund during the ensuing biennium to provide for the
38 expense of operation of the system. Investment
39 management expenses shall be charged to the investment
40 income of the system and there is appropriated from
41 the system an amount required for the investment
42 management expenses. The board of trustees shall
43 report the investment management expenses for the
44 fiscal year as a percent of the market value of the
45 system.
46 For purposes of this subsection, investment
47 management expenses are limited to the following:
48 a. Fees for investment advisors, consultants, and
49 investment management and benefit consultant firms
50 hired by the board of trustees in administering this
Page 43
1 chapter.
2 b. Fees and costs for safekeeping fund assets.
3 c. Costs for performance and compliance
4 monitoring, and accounting for fund investments.
5 d. Any other costs necessary to prudently invest
6 or protect the assets of the fund.
7 Sec. 88. Section 97A.12, Code 1995, is amended to
8 read as follows:
9 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS
10 OR ASSIGNMENT.
11 The right of any person to a pension, annuity, or
12 retirement allowance, to the return of contributions,
13 the pension, annuity, or retirement allowance itself,
14 any optional benefit or death benefit, any other right
15 accrued or accruing to any person under this chapter,
16 and the moneys in the various funds created under this
17 chapter, are not subject to execution, garnishment,
18 attachment, or any other process whatsoever, and are
19 unassignable except for the purposes of enforcing
20 child, spousal, or medical support obligations or
21 marital property orders, or as in this chapter
22 otherwise specifically provided in this chapter.
For
23 the purposes of enforcing child, spousal, or medical
24 support obligations, the garnishment or attachment of
25 or the execution against compensation due a person
26 under this chapter shall not exceed the amount
27 specified in 15 U.S.C. "/g" 1673(b).
28 Sec. 89. NEW SECTION. 97A.17 OPTIONAL TRANSFERS
29 WITH CHAPTER 411.
30 1. For purposes of this section unless the context
31 otherwise requires:
32 a. "Average accrued benefit" means the average of
33 the amounts representing the present value of the
34 accrued benefit earned by the member determined by the
35 former system and the present value of the accrued
36 benefit earned by the member determined by the current
37 system.
38 b. "Current system" means the eligible retirement
39 system in which a person has commenced employment
40 covered by the system after having terminated
41 employment covered by the former system.
42 c. "Eligible retirement system" means the system
43 created under this chapter and the statewide fire and
44 police retirement system established in chapter 411.
45 d. "Former system" means the eligible retirement
46 system in which a person has terminated employment
47 covered by the system prior to commencing employment
48 covered by the current system.
49 2. Commencing July 1, 1996, a vested member of an
50 eligible retirement system who terminates employment
Page 44
1 covered by one eligible retirement system and, within
2 sixty days, commences employment covered by the other
3 eligible retirement system may elect to transfer the
4 average accrued benefit earned from the former system
5 to the current system. The member shall file an
6 application with the current system for transfer of
7 the average accrued benefit within ninety days of the
8 commencement of employment with the current system.
9 3. Notwithstanding subsection 2, a vested member
10 whose employment with the current system commenced
11 prior to July 1, 1996, may elect to transfer the
12 average accrued benefit earned under the former system
13 to the current system by filing an application with
14 the current system for transfer of the average accrued
15 benefit on or before July 1, 1997.
16 4. Upon receipt of an application for transfer of
17 the average accrued benefit, the current system shall
18 calculate the average accrued benefit and the former
19 system shall transfer to the current system assets in
20 an amount equal to the average accrued benefit. Once
21 the transfer of the average accrued benefit is
22 completed, the member's service under the former
23 system shall be treated as membership service under
24 the current system for purposes of this chapter and
25 chapter 411.
26 DIVISION IV
27 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
28 Sec. 90. Section 400.8, subsection 1, Code 1995,
29 is amended to read as follows:
30 1. The commission, when necessary under the rules,
31 including minimum and maximum age limits, which shall
32 be prescribed and published in advance by the
33 commission and posted in the city hall, shall hold
34 examinations for the purpose of determining the
35 qualifications of applicants for positions under civil
36 service, other than promotions, which examinations
37 shall be practical in character and shall relate to
38 matters which will fairly test the mental and physical
39 ability of the applicant to discharge the duties of
40 the position to which the applicant seeks appointment.
41 The physical examination of applicants for appointment
42 to the positions of police officer, police matron, or
43 fire fighter shall be held in accordance with medical
44 protocols established by the board of trustees of the
45 fire and police retirement system established by
46 section 411.5. The board of trustees may change the
47 medical protocols at any time the board so determines.
48 The commission shall conduct a medical examination of
49 an applicant for the position of police officer,
50 police matron, or fire fighter after a conditional
Page 45
1 offer of employment has been made to the applicant.
2 An applicant shall not be discriminated against on the
3 basis of height, weight, sex, or race in determining
4 physical or mental ability of the applicant.
5 Reasonable rules relating to strength, agility, and
6 general health of applicants shall be prescribed. The
7 costs of the physical examination required under this
8 subsection shall be paid from the trust and agency
9 fund of the city.
10 Sec. 91. Section 411.5, Code 1995, is amended by
11 adding the following new subsection:
12 NEW SUBSECTION. 13. VOLUNTARY BENEFIT PROGRAMS.
13 The board of trustees shall be responsible for the
14 administration of the voluntary benefit programs
15 established under section 411.40. The board may take
16 any necessary action, including the adoption of rules,
17 for purposes of administering the programs.
18 Sec. 92. Section 411.6, subsection 7, paragraph a,
19 unnumbered paragraph 1, Code 1995, is amended to read
20 as follows:
21 Should any beneficiary for either ordinary or
22 accidental disability, except a beneficiary who is
23 fifty-five years of age or over and would have
24 completed twenty-two years of service if the
25 beneficiary had remained in active service, be engaged
26 in a gainful occupation paying more than the
27 difference between the member's retirement allowance
28 and one and one-half times the earnable compensation
29 of an active member at the same position on the salary
30 scale within the member's rank as the member held at
31 retirement, then the amount of the member's retirement
32 allowance shall be reduced to an amount which together
33 with the amount earned by the member shall equal one
34 and one-half times the amount of the current earnable
35 compensation of an active member at the same position
36 on the salary scale within the member's rank as the
37 member held at retirement. Should the member's
38 earning capacity be later changed, the amount of the
39 member's retirement allowance may be further modified,
40 provided, that the new retirement allowance shall not
41 exceed the amount of the retirement allowance adjusted
42 by annual readjustments of pensions pursuant to
43 subsection 12 of this section nor an amount which,
44 when added to the amount earned by the beneficiary,
45 equals one and one-half times the amount of the
46 earnable compensation of an active member at the same
47 position on the salary scale within the member's rank
48 as the member held at retirement. A beneficiary
49 restored to active service at a salary less than the
50 average final compensation upon the basis of which the
Page 46
1 member was retired at age fifty-five or greater, shall
2 not again become a member of the retirement system and
3 shall have the member's retirement allowance suspended
4 while in active service. If the rank or position held
5 by the retired member is subsequently abolished,
6 adjustments to the allowable limit on the amount of
7 income which can be earned in a gainful occupation
8 shall be computed in the same manner as provided in
9 subsection 12, paragraph "c", of this section for
10 readjustment of pensions when a rank or position has
11 been abolished by the board of trustees as though
such
12 rank or position had not been abolished and salary
13 increases had been granted to such rank or position on
14 the same basis as increases granted to other ranks and
15 positions in the department.
16 Sec. 93. Section 411.6, subsection 12, paragraphs
17 a through c, Code 1995, are amended by striking the
18 paragraphs and inserting in lieu thereof the
19 following:
20 a. On each July 1, the monthly pensions authorized
21 in this section payable to retired members and to
22 beneficiaries shall be adjusted as provided in this
23 subsection. An amount equal to the sum of one and
24 one-half percent of the monthly pension of each
25 retired member and beneficiary and the applicable
26 incremental amount shall be added to the monthly
27 pension of each retired member and beneficiary. The
28 board of trustees shall report to the general assembly
29 every six years, by September 15 of that year,
30 beginning with September 15, 2001, on whether the
31 provisions of this subsection continue to provide an
32 equitable method for the annual readjustment of
33 pensions payable under this chapter.
34 b. For purposes of this subsection, "applicable
35 incremental amount" means the following amount for
36 members receiving a pension under subsection 2, 4, or
37 6 and for beneficiaries receiving a pension under
38 subsection 11:
39 (1) Fifteen dollars where the member's retirement
40 date was less than five years prior to the effective
41 date of the increase.
42 (2) Twenty dollars where the member's retirement
43 date was at least five years, but less than ten years,
44 prior to the effective date of the increase.
45 (3) Twenty-five dollars where the member's
46 retirement date was at least ten years, but less than
47 fifteen years, prior to the effective date of the
48 increase.
49 (4) Thirty dollars where the member's retirement
50 date was at least fifteen years, but less than twenty
Page 47
1 years, prior to the effective date of the increase.
2 (5) Thirty-five dollars where the member's
3 retirement date was at least twenty years prior to the
4 effective date of the increase.
5 c. For beneficiaries receiving a pension under
6 subsection 8 or 9, the applicable incremental amount
7 shall be determined as set forth in paragraph "b",
8 except that the date of the member's death shall be
9 substituted for the member's retirement date.
10 Sec. 94. Section 411.6, subsection 12, Code 1995,
11 is amended by adding the following new paragraph:
12 NEW PARAGRAPH. e. A retired member eligible for
13 benefits under this section and otherwise eligible for
14 the readjustment of benefits provided in this
15 subsection is not eligible for the readjustment unless
16 the member was retired on or before the effective date
17 of the readjustment.
18 Sec. 95. Section 411.13, Code 1995, is amended to
19 read as follows:
20 411.13 EXEMPTION FROM EXECUTION AND OTHER PROCESS,
21 OR ASSIGNMENT - EXCEPTIONS.
22 The right of any person to a pension, annuity, or
23 retirement allowance, to the return of contributions,
24 the pension, annuity, or retirement allowance itself,
25 any optional benefit or death benefit, any other right
26 accrued or accruing to any person under this chapter,
27 and the moneys in the fire and police retirement fund
28 created under this chapter, are not subject to
29 execution, garnishment, attachment, or any other
30 process whatsoever, and are unassignable except for
31 the purposes of enforcing child, spousal, or medical
32 support obligations or marital property orders, or as
33 in this chapter otherwise specifically provided
in
34 this chapter. For the purposes of enforcing child,
35 spousal, or medical support obligations, the
36 garnishment or attachment of or the execution against
37 compensation due a person under this chapter shall not
38 exceed the amount specified in 15 U.S.C. "/g" 1673(b).
39 Sec. 96. NEW SECTION. 411.31 OPTIONAL TRANSFERS
40 WITH CHAPTER 97A.
41 1. For purposes of this section, unless the
42 context otherwise requires:
43 a. "Average accrued benefit" means the average of
44 the amounts representing the present value of the
45 accrued benefit earned by the member determined by the
46 former system and the present value of the accrued
47 benefit earned by the member determined by the current
48 system.
49 b. "Current system" means the eligible retirement
50 system in which a person has commenced employment
Page 48
1 covered by the system after having terminated
2 employment covered by the former system.
3 c. "Eligible retirement system" means the system
4 created under this chapter and the Iowa department of
5 public safety peace officers' retirement, accident,
6 and disability system established in chapter 97A.
7 d. "Former system" means the eligible retirement
8 system in which a person has terminated employment
9 covered by the system prior to commencing employment
10 covered by the current system.
11 2. Commencing July 1, 1996, a vested member of an
12 eligible retirement system who terminates employment
13 covered by one eligible retirement system and, within
14 sixty days, commences employment covered by the other
15 eligible retirement system may elect to transfer the
16 average accrued benefit earned from the former system
17 to the current system. The member shall file an
18 application with the current system for transfer of
19 the average accrued benefit within ninety days of the
20 commencement of employment with the current system.
21 3. Notwithstanding subsection 2, a vested member
22 whose employment with the current system commenced
23 prior to July 1, 1996, may elect to transfer the
24 average accrued benefit earned under the former system
25 to the current system by filing an application with
26 the current system for transfer of the average accrued
27 benefit on or before July 1, 1997.
28 4. Upon receipt of an application for transfer of
29 the average accrued benefit, the current system shall
30 calculate the average accrued benefit and the former
31 system shall transfer to the current system assets in
32 an amount equal to the average accrued benefit. Once
33 the transfer of the average accrued benefit is
34 completed, the member's service under the former
35 system shall be treated as membership service under
36 the current system for purposes of this chapter and
37 chapter 97A.
38 Sec. 97. Section 411.37, subsection 2, Code 1995,
39 is amended to read as follows:
40 2. The board shall include in the transition plan
41 or other transition documents, provisions to
42 facilitate continuity under sections 411.20, 411.21,
43 and 411.30 and a recommendation for an equitable
44 process for determining earnable compensation changes
45 when calculating adjustments to pensions under section
46 411.6, subsection 12, to be submitted to the general
47 assembly meeting in 1991.
48 Sec. 98. Section 411.38, subsection 1, paragraph
49 b, unnumbered paragraph 1, Code 1995, is amended to
50 read as follows:
Page 49
1 Transfer from each terminated city fire or police
2 retirement system to the statewide system amounts
3 sufficient to cover the accrued liabilities of that
4 terminated system as determined by the actuary of the
5 statewide system. The actuary of the statewide system
6 shall redetermine the accrued liabilities of the
7 terminated systems as necessary to take into account
8 additional amounts payable by the city which are
9 attributable to errors or omissions which occurred
10 prior to January 1, 1992, or to matters pending as of
11 January 1, 1992. If the actuary of the statewide
12 system determines that the assets transferred by a
13 terminated system are insufficient to fully fund the
14 accrued liabilities of the terminated system as
15 determined by the actuary as of January 1, 1992, the
16 participating city shall pay to the statewide system
17 an amount equal to the unfunded liability plus
18 interest for the period beginning January 1, 1992, and
19 ending with the date of payment or the date of entry
20 into an amortization agreement pursuant to this
21 section. Interest on the unfunded liability shall be
22 computed at a rate equal to the greater of the
23 actuarial interest rate assumption on investments of
24 the moneys in the fund or the actual investment
25 earnings of the fund for the applicable calendar year.
26 The participating city may enter into an agreement
27 with the statewide system to make additional annual
28 contributions sufficient to amortize the unfunded
29 accrued liability of the terminated system. The terms
30 of an amortization agreement shall be based upon the
31 recommendation of the actuary of the statewide system,
32 and the agreement shall do each of the following:
33 Sec. 99. NEW SECTION. 411.40 VOLUNTARY BENEFIT
34 PROGRAMS.
35 The board of trustees may establish voluntary
36 benefit programs for members subject to the following
37 conditions:
38 1. The voluntary benefit programs may provide
39 benefits including, but not limited to, retiree health
40 benefits, long-term care, and life insurance.
41 2. Participation in the voluntary benefit programs
42 by members shall be voluntary.
43 3. Contributions to the voluntary benefit programs
44 shall be paid entirely by each participating member by
45 means of payroll deduction. Cities employing members
46 participating in voluntary benefit programs shall
47 forward the amounts deducted to the board of trustees
48 for deposit in the voluntary benefit fund.
49 4. The voluntary benefit programs and the
50 voluntary benefit fund shall be administered under the
Page 50
1 direction of the board of trustees for the exclusive
2 benefit of members paying contributions as provided in
3 subsection 3.
4 5. The assets of the voluntary benefit programs
5 shall be credited to the voluntary benefit fund, which
6 is hereby created. The voluntary benefit fund shall
7 include contributions deposited in accordance with
8 subsection 3, and any interest and earnings on the
9 contributions. The board of trustees shall annually
10 establish an investment policy to govern the
11 investment and reinvestment of the assets in the
12 voluntary benefit fund. The voluntary benefit fund
13 created under this section and the fire and police
14 retirement fund created under section 411.8 shall not
15 be used to subsidize any portion of the liabilities of
16 the other fund.
17 6. The board of trustees shall include in its
18 annual budget the amount of money necessary during the
19 following year to provide for the expense of operation
20 of the voluntary benefit programs. The operating
21 expenses shall be paid from the voluntary benefit fund
22 under the direction of the board of trustees.
23 DIVISION V
24 JUDICIAL RETIREMENT SYSTEM
25 Sec. 100. Section 602.9111, Code 1995, is amended
26 to read as follows:
27 602.9111 INVESTMENT OF FUND.
28 So much of the judicial retirement fund as may not
29 be necessary to be kept on hand for the making of
30 disbursements under this article shall be invested by
31 the treasurer of state in bonds or other evidences of
32 indebtedness issued, assumed, or guaranteed by the
33 United States of America, or by any agency or
34 instrumentality thereof or in any investments
35 authorized for the Iowa public employees' retirement
36 system in section 97B.7, subsection 2, paragraph "b",
37 and the earnings therefrom shall be credited to said
38 the fund. The treasurer of state may execute
39 contracts and agreements with investment advisors,
40 consultants, and investment management and benefit
41 consultant firms in the administration of the judicial
42 retirement fund.
43 Investment management expenses shall be charged to
44 the investment income of the fund and there is
45 appropriated from the fund an amount required for the
46 investment management expenses. The court
47 administrator shall report the investment management
48 expenses for the fiscal year as a percent of the
49 market value of the system.
50 For purposes of this section, investment management
Page 51
1 expenses are limited to the following:
2 a. Fees for investment advisors, consultants, and
3 investment management and benefit consultant firms
4 hired by the treasurer of state in administering the
5 fund.
6 b. Fees and costs for safekeeping fund assets.
7 c. Costs for performance and compliance
8 monitoring, and accounting for fund investments.
9 d. Any other costs necessary to prudently invest
10 or protect the assets of the fund. The state court
11 administrator and the treasurer of state, and their
12 employees, are not personally liable for claims based
13 upon an act or omission of the person performed in the
14 discharge of the person's duties concerning the
15 judicial retirement fund, except for acts or omissions
16 which involve malicious or wanton misconduct.
17 DIVISION IV
18 EFFECTIVE AND APPLICABILITY PROVISIONS
19 Sec. 101. EFFECTIVE AND RETROACTIVE APPLICABILITY
20 DATES.
21 1. The section of this Act which amends section
22 97B.49, subsection 16, by enacting a new paragraph
23 "m", being deemed of immediate importance, takes
24 effect upon enactment and applies retroactively to
25 July 1, 1992.
26 2. The section of this Act which amends section
27 411.6, subsection 12, paragraphs "a" through "c",
28 takes effect July 1, 1997."
Larkin of Lee asked and received unanimous consent that
amendments H-5792 and H-5864, to the committee amendment H-5515,
be deferred.
Martin of Scott offered the following amendment H-6034, to the
committee amendment H-5515, filed by Martin, Jacobs and Gipp
from the floor and moved its adoption:
H-6034
1 Amend the amendment, H-5515, to Senate File 2245,
2 as amended, passed, and reprinted by the Senate, as
3 follows:
4 1. Page 14, line 3, by striking the words
5 "paragraph "e"" and inserting the following:
6 "paragraphs "e" and "f"".
7 2. Page 14, line 42, by striking the words
8 "paragraph "e"" and inserting the following:
9 "paragraphs "e" and "f"".
10 3. Page 16, by inserting after line 41 the
11 following:
12 "Sec. ___. Section 97B.49, subsection 5, Code
13 Supplement 1995, is amended by adding the following
14 new paragraph:
15 NEW PARAGRAPH. f. For each active or inactive
16 vested member retiring on or after July 1, 1996, the
17 percentage multiplier of the three-year average
18 covered wage used under subsections 5, 15, 16, and 17
19 to calculate the monthly retirement allowance shall be
20 increased by one-fourth of one percentage point for
21 each additional calendar quarter of membership service
22 beyond the applicable years of service, not to exceed
23 a total of five additional percentage points. For
24 purposes of this paragraph, "the applicable years of
25 service" shall be the following, based upon the
26 service retirement allowance selected:
27 (1) For members receiving a retirement allowance
28 for regular service under subsection 5 or 15, or
29 receiving a combined retirement allowance under
30 subsection 17, the applicable years of service is
31 thirty.
32 (2) For members receiving a retirement allowance
33 for service in a protection occupation under
34 subsection 16, paragraph "a", the applicable years of
35 service is twenty-five.
36 (3) For members receiving a retirement allowance
37 for service as a sheriff, deputy sheriff, or airport
38 fire fighter under subsection 16, paragraph "b",
39 subparagraph (1) or (2), the applicable years of
40 service is twenty-two."
41 4. By striking page 16, line 42, through page 18,
42 line 2, and inserting the following:
43 "Sec. ___. Section 97B.49, subsection 13, Code
44 Supplement 1995, is amended to read as follows:
45 13. a. A member who retired from the system
46 between January 1, 1976, and June 30, 1982, or a
47 contingent annuitant or beneficiary of such a member,
48 shall receive with the November 1994 and the November
49 1995 1996 monthly benefit payments payment a
50 retirement dividend equal to one two hundred
eighty-
Page 2
1 one twenty-three percent of the monthly benefit
2 payment the member received for the preceding June, or
3 the most recently received benefit payment, whichever
4 is greater. The retirement dividend does not affect
5 the amount of a monthly benefit payment.
6 b. Each member who retired from the system between
7 July 4, 1953, and December 31, 1975, or a contingent
8 annuitant or beneficiary of such a member, shall
9 receive with the November 1994 and the November 1995
10 1996 monthly benefit payments payment a
retirement
11 dividend equal to two hundred thirty-six ninety-two
12 percent of the monthly benefit payment the member
13 received for the preceding June, or the most recently
14 received benefit payment, whichever is greater. The
15 retirement dividend does not affect the amount of a
16 monthly benefit payment.
17 c. Notwithstanding the determination of the amount
18 of a retirement dividend under paragraph "a", "b",
19 "d", or "f", or "g", a retirement dividend shall not
20 be less than twenty-five dollars.
21 d. A member who retired from the system between
22 July 1, 1982, and June 30, 1986, or a contingent
23 annuitant or beneficiary of such a member, shall
24 receive with the November 1994 and the November 1995
25 1996 monthly benefit payments payment a
retirement
26 dividend equal to forty-nine seventy-four percent of
27 the monthly benefit payment the member received for
28 the preceding June, or the most recently received
29 benefit payment, whichever is greater. The retirement
30 dividend does not affect the amount of a monthly
31 benefit payment.
32 e. If the member dies on or after July 1 of the
33 dividend year but before the payment date, the full
34 amount of the retirement dividend for that year shall
35 be paid to the designated beneficiary to the
member's
36 account, upon notification of the member's death.
If
37 there is no beneficiary designated by the member, the
38 department shall pay the dividend to the member's
39 estate. The beneficiary, or the representative of the
40 member's estate, must apply for the dividend within
41 two years after the dividend is payable or the
42 dividend is forfeited.
43 f. A member who retired from the system between
44 July 1, 1986, and June 30, 1990, or a contingent
45 annuitant or beneficiary of such a member, shall
46 receive with the November 1996 and the November 1997
47 monthly benefit payments payment a retirement
dividend
48 in an amount determined by the general assembly
equal
49 to twenty-four percent of the monthly benefit payment
50 the member received for the preceding June, or the
Page 3
1 most recently received benefit payment, whichever is
2 greater. The retirement dividend does not affect the
3 amount of a monthly benefit payment.
4 Sec. ___. Section 97B.49, subsection 13, Code
5 Supplement 1995, is amended by adding the following
6 new paragraph:
7 NEW PARAGRAPH. g. Effective July 1, 1997,
8 commencing with dividends payable in November 1997,
9 and for each subsequent year, all members who retired
10 prior to July 1, 1990, shall be eligible for annual
11 dividend payments, payable in November of that year,
12 pursuant to the requirements of this paragraph. The
13 dividend payable in any given year shall be the sum of
14 the dollar amount of the dividend payable in the
15 previous November and the dividend adjustment.
16 The dividend adjustment for a given year shall be
17 calculated by multiplying the total of the retiree's
18 monthly benefit payments and the dividend payable to
19 the retiree in the previous calendar year by the
20 applicable percentage as determined by this paragraph.
21 The applicable percentage shall be the least of the
22 following percentages:
23 (1) The percentage representing eighty percent of
24 the percentage increase in the consumer price index
25 published in the federal register by the federal
26 department of labor, bureau of labor statistics, that
27 reflects the percentage increase in the consumer price
28 index for the twelve-month period ending June 30 of
29 the year that the dividend is to be paid.
30 (2) The percentage representing the percentage
31 amount the actuary has certified, in the annual
32 actuarial valuation of the system as of June 30 of the
33 year in which the dividend is to be paid, that the
34 fund can absorb without requiring an increase in the
35 employer and employee contributions to the fund.
36 (3) Three percent.
37 The dividend determined pursuant to this paragraph
38 shall not be used to increase the monthly benefit
39 amount payable."
40 5. Page 18, by inserting before line 3 the
41 following:
42 "Sec. ___. Section 97B.49, subsection 15,
43 paragraph b, Code Supplement 1995, is amended to read
44 as follows:
45 b. For each active or inactive vested member
46 retiring on or after July 1, 1990, and before July 1,
47 1996, who is at least fifty-five years of age and for
48 which the sum of the number of years of membership
49 service and prior service and the member's age in
50 years as of the member's last birthday equals or
Page 4
1 exceeds ninety-two, a monthly benefit shall be
2 computed which is equal to one-twelfth of the same
3 percentage of the three-year average covered wage of
4 the member as is provided in subsection 5.
5 Sec. ___. Section 97B.49, subsection 15, Code
6 Supplement 1995, is amended by adding the following
7 new paragraphs:
8 NEW PARAGRAPH. c. For each active or inactive
9 vested member retiring on or after July 1, 1996, and
10 before the implementation date provided in paragraph
11 "d", subparagraph (2), who is at least fifty-five
12 years of age and for which the sum of the number of
13 years of membership service and prior service and the
14 member's age in years as of the member's last birthday
15 equals or exceeds ninety, a monthly benefit shall be
16 computed which is equal to one-twelfth of the same
17 percentage of the three-year average covered wage of
18 the member as is provided in subsection 5, multiplied
19 by a fraction of years of service as is provided in
20 subsection 5.
21 NEW PARAGRAPH. d. (1) For each active or
22 inactive vested member retiring on or after the
23 implementation date provided in subparagraph (2), who
24 is at least fifty-five years of age and for which the
25 sum of the number of years of membership service and
26 prior service and the member's age in years as of the
27 member's last birthday equals or exceeds eighty-eight,
28 a monthly benefit shall be computed which is equal to
29 one-twelfth of the same percentage of the three-year
30 average covered wage of the member as is provided in
31 subsection 5, multiplied by a fraction of years of
32 service as is provided in subsection 5.
33 (2) The department shall implement this paragraph
34 on July 1, 1997, or on the date that the department
35 determines that the most recent annual actuarial
36 valuation of the system indicates that the employer
37 and employee contribution rates in effect under
38 section 97B.11 can absorb the costs of this paragraph,
39 whichever is later. However, until this paragraph is
40 implemented, the department shall not pay a dividend
41 adjustment pursuant to subsection 13, paragraph "g"."
42 6. Page 19, line 39, by inserting after the
43 letter "c." the following: "(1)".
44 7. Page 19, by inserting after line 46 the
45 following:
46 "(2) In calculating the combined monthly
47 retirement allowance pursuant to paragraph "a", and in
48 determining the applicable percentage multiplier
49 established in subsection 5, the member shall be
50 entitled to an addition in the percentage multiplier
Page 5
1 in accordance with subsection 5, paragraph "f", only
2 for those years of service in excess of thirty years.
3 Any addition in the percentage multiplier shall be
4 included in the calculations required under paragraph
5 "a", subparagraphs (1), (2), and (3) of this
6 subsection."
7 8. Page 35, by inserting after line 40 the
8 following:
9 "Sec. ___. STUDY OF PROPOSALS CONCERNING
10 CONTRIBUTION RATES - IOWA PUBLIC EMPLOYEES'
11 RETIREMENT SYSTEM - REPORT. The Iowa public
12 employees' retirement system division, in consultation
13 with the public retirement systems committee
14 established in section 97D.4, shall study proposals
15 concerning various options for establishing equitable
16 contribution rates for both employers and employees
17 covered by the Iowa public employees' retirement
18 system. In conducting the study, the division shall
19 consider a proposal to provide that the employee and
20 employer contribution rate be equal. On or before
21 September 1, 1997, the Iowa public employees'
22 retirement system division shall file a report with
23 the legislative service bureau, for distribution to
24 the public retirement systems committee, which
25 contains the results of the study and any proposal, or
26 proposals, for establishing employer and employee
27 contribution rates. The report shall also contain
28 actuarial information concerning the costs of the
29 proposal or proposals.
30 Sec. ___. STUDY OF PROPOSALS REGARDING DISABILITY
31 RETIREMENT BENEFITS - IOWA PUBLIC EMPLOYEES'
32 RETIREMENT SYSTEM - REPORT. The Iowa public
33 employees' retirement system division, in consultation
34 with the public retirement systems committee
35 established in section 97D.4, shall study proposals
36 concerning various options for establishing disability
37 retirement benefits for employees, or certain
38 employees, covered by the Iowa public employees'
39 retirement system. In conducting the study, the
40 division shall consider a proposal to provide
41 disability retirement benefits for sheriffs, deputy
42 sheriffs, airport fire fighters, or members of a
43 protection occupation in a manner similar to the
44 disability retirement benefits provided under chapters
45 97A and 411. On or before September 1, 1997, the Iowa
46 public employees' retirement system division shall
47 file a report with the legislative service bureau, for
48 distribution to the public retirement systems
49 committee, which contains the results of the study and
50 any proposal, or proposals, for establishing
Page 6
1 disability retirement benefits. The report shall also
2 contain actuarial information concerning the costs of
3 the proposal or proposals.
4 Sec. ___. STUDY OF PROPOSALS CONCERNING INCLUSION
5 OF MEMBERS IN A PROTECTION OCCUPATION - IOWA PUBLIC
6 EMPLOYEES' RETIREMENT SYSTEM - REPORT. The Iowa
7 public employees' retirement system division, in
8 consultation with the public retirement systems
9 committee established in section 97D.4, shall study
10 proposals concerning various options for determining
11 additional occupations of members who should be
12 eligible for inclusion as members in a protection
13 occupation as provided in section 97B.49, subsection
14 16, paragraph "d". On or before September 1, 1997,
15 the Iowa public employees' retirement system division
16 shall file a report with the legislative service
17 bureau, for distribution to the public retirement
18 systems committee, which contains the results of the
19 study and any proposal, or proposals, for establishing
20 which occupations should qualify for inclusion in a
21 protection occupation. The report shall also contain
22 actuarial information concerning the costs of the
23 proposal or proposals.
24 Sec. ___. STUDY CONCERNING ORGANIZATIONAL
25 STRUCTURE OF THE IOWA PUBLIC EMPLOYEES' RETIREMENT
26 SYSTEM. The public retirement systems committee
27 established in section 97D.4 shall study the
28 feasibility of changing the organizational structure
29 and governance of the Iowa public employees'
30 retirement system. The committee shall consider the
31 recommendations of the Buck Consultants Inc. report
32 submitted to the Iowa public employees' retirement
33 system in 1995, the Iowa public employees' retirement
34 system division, and the department of personnel. The
35 public retirement systems committee shall submit a
36 report to the general assembly on or before January
37 31, 1998, containing its findings and
38 recommendations."
39 9. By renumbering as necessary.
Roll call was requested by Schrader of Marion and Myers of
Johnson.
Rule 75 was invoked.
On the question "Shall amendment H-6034, to the committee
amendment H-5515, be adopted?" (S.F. 2245)
The ayes were, 94:
Arnold Bell Bernau Blodgett
Boggess Bradley Brand Branstad
Brauns Brunkhorst Burnett Carroll
Cataldo Churchill Cohoon Connors
Coon Corbett, Spkr. Cormack Daggett
Dinkla Disney Doderer Drake
Eddie Ertl Fallon Garman
Gipp Greig Greiner Gries
Grubbs Grundberg Hahn
Halvorson Hammitt Barry Hanson Harper
Harrison Heaton Holveck Houser
Hurley Huseman Jacobs Jochum
Klemme Koenigs Kreiman Kremer
Lamberti Larkin Lord Main
Martin Mascher May McCoy
Mertz Metcalf Meyer Millage
Moreland Mundie Murphy Myers
Nelson, B.
Nelson, L. Nutt O'Brien Ollie
Osterhaus Rants Renken
Schrader Schulte Shoultz Siegrist
Sukup Taylor Teig Thomson
Tyrrell Van Fossen Vande Hoef Veenstra
Warnstadt Weidman Weigel Welter
Wise Witt Van Maanen,
Presiding
The nays were, none.
Absent or not voting, 6:
Baker Boddicker Brammer Drees
Larson Salton
Amendment H-6034 was adopted, placing the following amendments
out of order:
H-5850, to the committee amendment H-5515, filed by Grundberg of
Polk, et. al., on April 3, 1996.
H-5962, to the committee amendment H-5515, filed by Halvorson of
Clayton on April 16, 1996.
Connors of Polk offered the following amendment H-5533, to the
committee amendment H-5515, filed by Connors, et. al., and moved
its adoption:
H-5533
1 Amend the amendment, H-5515, to Senate File 2245,
2 as amended, passed, and reprinted by the Senate, as
3 follows:
4 1. Page 18, by inserting after line 2 the
5 following:
6 "Sec. ___. Section 97B.49, subsection 16,
7 paragraph b, Code Supplement 1995, is amended by
8 adding the following new subparagraph:
9 NEW SUBPARAGRAPH. (3) A member who retires from
10 employment as a county sheriff, deputy sheriff, or
11 airport fire fighter, who retires on or after July 1,
12 1997, and at the time of retirement has completed a
13 total of twenty-five years of membership service with
14 the last twelve years of membership service as a
15 county sheriff, deputy sheriff, or airport fire
16 fighter, may elect to receive in lieu of the receipt
17 of any benefits under subsection 5 or 15, or
18 subparagraphs (1) and (2) of this paragraph, a monthly
19 retirement allowance equal to one-twelfth of the
20 applicable percentage multiplier of the member's
21 three-year average covered wage as is provided in
22 paragraph "a", with benefits payable during the
23 member's lifetime."
24 2. By renumbering as necessary.
Amendment H-5533 lost.
Warnstadt of Woodbury offered the following amendment H-6035, to
the committee amendment H-5515, filed by him from the floor and
moved its adoption:
H-6035
1 Amend the amendment, H-5515, to Senate File 2245,
2 as amended, passed, and reprinted by the Senate, as
3 follows:
4 1. Page 20, by inserting after line 32 the
5 following:
6 "Sec. ___. NEW SECTION. 97B.50A DISABILITY
7 BENEFITS FOR AIRPORT FIRE FIGHTERS.
8 1. DEFINITIONS. For purposes of this section,
9 unless the context otherwise provides, "member" means
10 a vested member who is classified as an airport fire
11 fighter under section 97B.49, subsection 16, at the
12 time of the alleged disability.
13 2. ACCIDENTAL DISABILITY RETIREMENT ALLOWANCE.
14 a. Effective July 1, 1997, a member who is injured
15 in the performance of the member's duties, and
16 otherwise meets the requirements of this subsection
17 shall receive an accidental disability retirement
18 allowance under the provisions of this subsection, in
19 lieu of a monthly retirement allowance as provided in
20 section 97B.49 or benefits calculated as provided in
21 section 97B.50, subsection 2.
22 b. Upon application of a member, a member who has
23 become totally and permanently incapacitated for duty
24 as the natural and proximate result of an injury,
25 disease, or exposure occurring or aggravated while in
26 the actual performance of duty shall be retired by the
27 department, provided that the medical board shall
28 certify that the member is mentally or physically
29 incapacitated for further performance of duty, that
30 the incapacity is likely to be permanent, and that the
31 member should be retired. The department shall make
32 the final determination, based on the medical evidence
33 received, of a member's total and permanent
34 disability. However, if a person's membership in the
35 system first commenced on or after July 1, 1997, the
36 member shall not be eligible for benefits with respect
37 to a disability which would not exist, but for a
38 medical condition that was known to exist on the date
39 that membership commenced.
40 c. Disease under this subsection shall mean heart
41 disease or any disease of the lungs or respiratory
42 tract and shall be presumed to have been contracted
43 while on active duty as a result of strain, exposure,
44 or the inhalation of noxious fumes, poison, or gases.
45 However, if a person's membership in the system first
46 commenced on or after July 1, 1997, and the heart
47 disease or disease of the lungs or respiratory tract
48 would not exist, but for a medical condition that was
49 known to exist on the date that membership commenced,
50 the presumption established in this paragraph shall
Page 2
1 not apply.
2 d. Upon retirement for an accidental disability as
3 provided by this subsection, a member shall receive
4 the greater of a monthly accidental disability
5 retirement allowance calculated under this subsection
6 or a disability retirement allowance calculated under
7 section 97B.50, subsection 2. The monthly accidental
8 disability allowance calculated under this subsection
9 shall consist of an allowance equal to one-twelfth of
10 sixty percent of the member's three-year average
11 covered wage at the time of disability.
12 3. ORDINARY DISABILITY RETIREMENT ALLOWANCE.
13 a. Effective July 1, 1997, a member who otherwise
14 meets the requirements of this subsection shall
15 receive an ordinary disability retirement allowance
16 under the provisions of this subsection, in lieu of a
17 monthly retirement allowance as provided in section
18 97B.49 or benefits calculated as provided in section
19 97B.50, subsection 2.
20 b. Upon application of a member, a member who has
21 become totally and permanently incapacitated for duty
22 shall be retired by the department, provided that the
23 medical board shall certify that the member is
24 mentally or physically incapacitated for further
25 performance of duty, that the incapacity is likely to
26 be permanent, and that the member should be retired.
27 The department shall make the final determination,
28 based on the medical evidence received, of a member's
29 total and permanent disability. However, if a
30 person's membership in the system first commenced on
31 or after July 1, 1997, the member shall not be
32 eligible for benefits with respect to a disability
33 which would not exist, but for a medical condition
34 that was known to exist on the date that membership
35 commenced.
36 c. Upon retirement for an ordinary disability as
37 provided by this subsection, a member shall receive
38 the greater of a monthly ordinary disability
39 retirement allowance calculated under this subsection
40 or a disability retirement allowance calculated under
41 section 97B.50, subsection 2. The monthly ordinary
42 disability allowance calculated under this subsection
43 shall consist of an allowance equal to one-twelfth of
44 fifty percent of the member's three-year average
45 covered wage at the time of disability.
46 4. OFFSET TO ALLOWANCE. Any amounts which may be
47 paid or payable by the employer under the provisions
48 of any workers' compensation or other law to a member,
49 or to the dependents of a member on account of any
50 disability, shall be offset against and payable in
Page 3
1 lieu of any retirement allowance payable pursuant to
2 this section on account of the same disability.
3 5. REEXAMINATION - REEMPLOYMENT OF MEMBERS
4 RETIRED ON ACCOUNT OF AN ACCIDENTAL DISABILITY.
5 a. Once each year during the first five years
6 following the retirement of a member under this
7 section, and once in every three-year period
8 thereafter, the department may, and upon the member's
9 application shall, require any member receiving an
10 accidental or ordinary disability retirement allowance
11 who has not yet attained the age of fifty-five years
12 to undergo a medical examination as arranged by the
13 medical board. The examination shall be made by the
14 medical board or by an additional physician or
15 physicians designated by the board. If any member
16 receiving an accidental or ordinary disability
17 retirement allowance who has not attained the age of
18 fifty-five years refuses to submit to the medical
19 examination, the allowance may be discontinued until
20 the member's withdrawal of the refusal, and should the
21 member's refusal continue for one year, all rights in
22 and to the member's disability retirement allowance
23 shall be revoked by the department.
24 b. If a member receiving a disability retirement
25 allowance is returned to covered employment, the
26 member's disability retirement allowance shall cease,
27 the member shall again become an active member, and
28 shall contribute thereafter at the same rate payable
29 by similarly classified members. Upon subsequent
30 retirement, the member's retirement allowance shall be
31 calculated as provided in section 97B.48A.
32 6. DEATH BENEFITS. A member who is receiving an
33 accidental or ordinary disability retirement allowance
34 under this section shall be treated as having elected
35 a lifetime monthly retirement allowance with no death
36 benefit unless the member elects an optional form of
37 benefit provided under section 97B.51, which shall be
38 actuarially equivalent to the lifetime monthly
39 retirement allowance provided under this section.
40 7. MEDICAL BOARD. The system shall designate a
41 medical board to be composed of three physicians who
42 shall arrange for and pass upon the medical
43 examinations required under the provisions of this
44 section and shall report in writing to the department
45 the conclusions and recommendations upon all matters
46 duly referred to the medical board. Each report of a
47 medical examination under this section shall include
48 the medical board's findings as to the extent of the
49 member's physical impairment.
50 8. RULES. The department shall adopt rules
Page 4
1 pursuant to chapter 17A specifying the application
2 procedure for members pursuant to this section."
3 2. By renumbering as necessary.
Roll call was requested by Taylor of Linn and Warnstadt of
Woodbury.
On the question "Shall amendment H-6035, to the committee
amendment H-5515, be adopted?" (S.F. 2245)
The ayes were, 37:
Baker Bell Bernau Brand
Burnett Cataldo Cohoon Connors
Doderer Fallon Harper Holveck
Jochum Koenigs Kreiman Larkin
Mascher May McCoy Mertz
Moreland Mundie Murphy Myers
Nelson, L. Nutt O'Brien Ollie
Osterhaus Rants Schrader Shoultz
Taylor Warnstadt Weigel Wise
Witt
The nays were, 58:
Arnold Blodgett Boggess Bradley
Branstad Brauns Brunkhorst Carroll
Churchill Coon Corbett, Spkr. Cormack
Daggett Dinkla Disney Drake
Eddie Ertl Garman Gipp
Greig Greiner Gries Grubbs
Grundberg Hahn Halvorson Hammitt Barry
Hanson Harrison Heaton Houser
Hurley Huseman Jacobs Klemme
Kremer Lamberti Lord Main
Martin Metcalf Meyer Millage
Nelson, B. Renken Schulte Siegrist
Sukup Teig Thomson Tyrrell
Van Fossen Vande Hoef Veenstra Weidman
Welter Van Maanen,
Presiding
Absent or not voting, 5:
Boddicker Brammer Drees Larson
Salton
Amendment H-6035 lost.
Sukup of Franklin asked and received unanimous consent to
withdraw amendment H-5995, to the committee amendment H-5515,
filed by Sukup, et. al., on April 17, 1996.
Martin of Scott offered the following amendment H-5919, to the
committee amendment H-5515, filed by her and Connors and moved
its adoption:
H-5919
1 Amend the amendment, H-5515, to Senate File 2245,
2 as amended, passed, and reprinted by the Senate, as
3 follows:
4 1. Page 35, by striking lines 24 through 26 and
5 inserting the following:
6 "Sec. ___. IOWA PUBLIC EMPLOYEES' RETIREMENT
7 SYSTEM - DEVELOPMENT OF PROPOSALS FOR ESTABLISHING A
8 DEFINED CONTRIBUTION OPTION AND FOR CONVERTING THE
9 SYSTEM INTO A DEFINED CONTRIBUTION PLAN - REPORT.
10 The Iowa".
11 2. Page 35, line 32, by inserting after the word
12 "system" the following: "in addition to the current
13 defined benefit plan and a proposal concerning various
14 alternatives for converting the Iowa public employees'
15 retirement system into a defined contribution plan by
16 terminating the current defined benefit plan and
17 establishing a defined contribution plan".
18 3. Page 35, line 37, by striking the words "a
19 proposal, or proposals," and inserting the following:
20 "proposals".
21 4. Page 35, line 38, by inserting after the word
22 "option" the following: "and for converting the Iowa
23 public employees' retirement system into a defined
24 contribution plan".
25 5. Page 35, line 40, by striking the words
26 "proposal or".
27 6. By renumbering as necessary.
Amendment H-5919 was adopted.
Sukup of Franklin offered the following amendment H-6033, to the
committee amendment H-5515, filed by him from the floor and
moved its adoption:
H-6033
1 Amend the amendment, H-5515, to Senate File 2245,
2 as amended, passed, and reprinted by the Senate, as
3 follows:
4 1. Page 35, by inserting after line 40 the
5 following:
6 "Sec. ___. COMPREHENSIVE EXAMINATION OF PLAN
7 DESIGN FOR THE IOWA PUBLIC EMPLOYEES' RETIREMENT
8 SYSTEM - REPORT. The Iowa public employees'
9 retirement system division, in consultation with the
10 public retirement systems committee established in
11 section 97D.4, shall conduct a comprehensive
12 examination of the plan design of the Iowa public
13 employees' retirement system, pursuant to the
14 principles established in chapter 97D, and make
15 recommendations for plan improvement.
16 In conducting the examination, the division shall
17 consider and develop recommendations concerning
18 establishment of the following:
19 1. Objective actuarial standards to determine the
20 funded status of the system, including recommended
21 minimum standards to determine whether the system is
22 fully funded, and to develop safeguards to ensure that
23 the system remains fully funded based on those
24 standards.
25 2. Equitable contribution rates for both employers
26 and employees, to include consideration of proposals
27 to provide for equal employer and employee
28 contribution rates and proposals to increase or
29 decrease contribution rates based on the funded status
30 of the system.
31 3. Establishing a schedule for implementing the
32 recommendations.
33 On or before September 1, 1997, the Iowa public
34 employees' retirement system division shall file a
35 report with the legislative service bureau, for
36 distribution to the public retirement systems
37 committee, which contains the results of the
38 comprehensive examination and any proposal, or
39 proposals, for improving plan design of the Iowa
40 public employees' retirement system. The report shall
41 also contain actuarial information concerning the
42 costs of the proposal or proposals."
43 2. By renumbering as necessary.
Amendment H-6033 was adopted.
Rants of Woodbury offered the following amendment H-5963, to the
committee amendment H-5515, filed by him and moved its adoption:
H-5963
1 Amend the amendment, H-5515, to Senate File 2245,
2 as amended, passed, and reprinted by the Senate, as
3 follows:
4 1. Page 48, by inserting after line 37 the
5 following:
6 "Sec. ___. Section 411.36, subsection 1, paragraph
7 a, Code Supplement 1995, is amended to read as
8 follows:
9 a. Two fire fighters from different participating
10 cities, one of whom is an active member of the
11 retirement system and one of whom is a retired member.
12 The fire fighters shall be appointed by the governing
13 body of the Iowa association of professional fire
14 fighters selected pursuant to an election as
provided
15 in section 411.36A.
16 Sec. ___. NEW SECTION. 411.36A ELECTION TO BOARD
17 - FIRE FIGHTERS.
18 The fire fighters who are voting members of the
19 board shall be elected by the active members of the
20 system who are fire fighters. The board shall adopt
21 guidelines governing the election of the fire fighter
22 members that shall provide a nomination procedure, the
23 manner for each participating city fire department to
24 conduct the election, and that ensures compliance with
25 the requirements of state law."
26 2. Page 50, by inserting after line 22 the
27 following:
28 "Sec. ___. BOARD OF TRUSTEES - TRANSITION. The
29 section of this Act that amends section 411.36 shall
30 not apply to the members of the board selected
31 pursuant to section 411.36, subsection 1, paragraph
32 "a", prior to the effective date of this Act, and
33 those members shall serve until the expiration of the
34 terms to which they were appointed. Upon the
35 expiration of their terms, section 411.36, as amended
36 by this Act, and section 411.36A shall apply to their
37 successors."
38 3. By renumbering as necessary.
Amendment H-5963 lost.
Larkin of Lee asked and received unanimous consent to withdraw
the following amendments, previously deferred:
H-5792, to the committee amendment H-5515, filed by Larkin of
Lee, et. al., on April 1, 1996.
H-5864, to the committee amendment H-5515, filed by Larkin of
Lee on April 4, 1996.
On motion by Martin of Scott, the committee amendment H-5515, as
amended, was adopted.
Martin of Scott moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was
read a last time.
On the question "Shall the bill pass?" (S.F. 2245)
The ayes were, 95:
Arnold Baker Bell Bernau
Blodgett Boggess Bradley Brand
Branstad Brauns Brunkhorst Burnett
Carroll Cataldo Churchill Cohoon
Connors Coon Corbett, Spkr.
Cormack Daggett Dinkla Disney
Doderer Drake Eddie Ertl
Fallon Garman Gipp Greig
Greiner Gries Grubbs Grundberg
Hahn Halvorson Hammitt Barry Hanson
Harper Harrison Heaton Holveck
Houser Hurley Huseman Jacobs
Jochum Klemme Koenigs Kreiman
Kremer Lamberti Larkin Lord
Main Martin Mascher May
McCoy Mertz Metcalf Meyer
Millage Moreland Mundie Murphy Myers
Nelson, B. Nelson, L. Nutt
O'Brien Ollie Osterhaus Rants
Renken Schrader Schulte Shoultz
Siegrist Sukup Taylor Teig
Thomson Tyrrell Van Fossen Vande Hoef
Veenstra Warnstadt Weidman Weigel
Welter Wise Witt Van Maanen,
Presiding
The nays were, none.
Absent or not voting, 5:
Boddicker Brammer Drees Larson
Salton
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 2245 be immediately messaged to the Senate.
The House stood at ease at 4:35 p.m., until the fall of the
gavel.
The House resumed session at 4:38 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
SENATE FILE 2040 REREFERRED
The Speaker announced that Senate File 2040, previously referred
to committee on transportation, was rereferred to committee on
ways and means.
The House stood at ease at 4:42 p.m., until the fall of the
gavel.
The House resumed session at 5:09 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Mr. Speaker: I am directed to inform your honorable body that
the Senate has on April 22, 1996, passed the following bill in
which the concurrence of the Senate was asked:
House File 2499, a bill for an act relating to definitions,
reporting, and remittance guidelines concerning the disposition
of unclaimed property.
Also: That the Senate on April 22, 1996 adopted the conference
committee report and passed Senate File 2446, a bill for an act
relating to agriculture and natural resources, by providing for
appropriations, providing related statutory changes, and
providing effective dates.
JOHN F. DWYER, Secretary
ADOPTION OF THE REPORT OF THE
CONFERENCE COMMITTEE
(Senate File 2446)
Hahn of Muscatine called up for consideration the report of the
conference committee on Senate File 2446 and the amendments
contained therein as follows:
REPORT OF THE CONFERENCE COMMITTEE
ON SENATE FILE 2446
To the President of the Senate and the Speaker of the House of
Representatives:
We, the undersigned members of the conference committee
appointed to resolve the differences between the Senate and the
House of Representatives on Senate File 2446, a bill for An Act
relating to agriculture and natural resources, by providing for
appropriations, providing related statutory changes, and
providing effective dates, respectfully make the following
report:
1. That the Senate recedes from its amendment, H-5834.
2. That the House recedes from its amendment, S-5613.
3. That Senate File 2446, as amended, passed, and reprinted by
the Senate, is amended as follows:
1. By striking everything after the enacting clause and
inserting the following:
"DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP
Section 1. GENERAL APPROPRIATION. There is appropriated from
the general fund of the state to the department of agriculture
and land stewardship for the fiscal year beginning July 1, 1996,
and ending June 30, 1997, the following amounts, or so much
thereof as is necessary, to be used for the purposes designated:
1. ADMINISTRATIVE DIVISION
a. For salaries, support, maintenance, the support of the state
4-H foundation, support of the statistics bureau, and
miscellaneous purposes, and for the salaries and support of not
more than the following full-time equivalent positions:
$ 1,836,111
FTEs 43.45
(1) Of the amount appropriated and full-time equivalent
positions authorized in this paragraph "a", $322,406 and 7.00
FTEs shall be used to support horticulture.
(2) Of the amount appropriated in this paragraph "a", $50,000
shall be allocated to the state 4-H foundation to foster the
development of Iowa's youth and to encourage them to study the
subject of agriculture.
(3) Of the amount appropriated and full-time equivalent
positions authorized in this paragraph "a", $130,519 and 4.00
FTEs shall be allocated to the statistics bureau to provide
county-by-county information on land in farms, production by
crop, acres by crop, and county prices by crop. This
information shall be made available to the department of revenue
and finance for use in the productivity formula for valuing and
equalizing the values of agricultural land.
(4) Of the amount appropriated in this paragraph "a", not more
than $5,000 shall be allocated to the Iowa limousin cattle
junior association in connection with the 1996 national junior
limousin cattle show.
(5) Of the amount appropriated in this paragraph "a", $500
shall be allocated as state aid to support the north Iowa
poultry expo.
(6) Of the amount appropriated and full-time equivalent
positions authorized in this paragraph "a", $71,486 and 1.00 FTE
shall be allocated to support the administrative assistant VI
position created in section 26 of this Act.
b. For the operations of the dairy trade practices bureau:
$ 66,846
c. For the purpose of performing commercial feed audits:
$ 64,698
d. For the purpose of performing fertilizer audits:
$ 64,697
2. REGULATORY DIVISION
a. For salaries, support, maintenance, miscellaneous purposes,
and for not more than the following full-time equivalent
positions:
$ 3,858,960
FTEs 122.50
Of the amount appropriated pursuant to this paragraph "a", not
more than $10,000 shall be used to support the hiring and
training of a meat and poultry inspector in west-central Iowa.
b. For the costs of inspection, sampling, analysis, and other
expenses necessary for the administration of chapters 192, 194,
and 195:
$ 651,220
3. LABORATORY DIVISION
a. For salaries, support, maintenance, and miscellaneous
purposes, including the administration of the gypsy moth
program, and for not more than the following full-time
equivalent positions:
$ 852,475
FTEs 85.10
(1) Of the amount appropriated in this paragraph "a", $110,000
shall be used to administer a program relating to the detection,
surveillance, and eradication of the gypsy moth. The department
shall allocate and use the appropriation made in this paragraph
before moneys other than those appropriated in this paragraph
are used to support the program.
(2) Of the amount appropriated and the number of full-time
equivalent positions authorized in this paragraph "a", $49,850
and 1.00 FTE shall be used to support an additional regional
entomologist for purposes of conducting laboratory and field
inspection activities.
(3) Of the number of full-time equivalent positions authorized
in this paragraph "a" and funded in paragraph "c", 1.00 FTE
shall be used to support an organics program coordinator who
shall assure compliance of organic foods sold commercially
within the state with federal regulations relating to organic
foods.
b. For the operations of the commercial feed programs:
$ 742,499
c. For the operations of the pesticide programs:
$ 1,291,781
Of the amount appropriated in this paragraph "c", $200,000 shall
be allocated to Iowa state university for purposes of training
commercial pesticide applicators.
d. For the operations of the fertilizer programs:
$ 633,832
4. SOIL CONSERVATION DIVISION
a. For salaries, support, maintenance, assistance to soil
conservation districts, miscellaneous purposes, and for not more
than the following full-time equivalent positions:
$ 5,951,591
FTEs 172.28
(1) Of the amount appropriated in this paragraph "a", $330,000
shall be used to reimburse commissioners of soil and water
conservation districts for administrative expenses. Moneys used
for the payment of meeting dues by counties shall be matched on
a dollar-for-dollar basis by the soil conservation division.
(2) Of the amount appropriated and the number of full-time
equivalent positions authorized in this paragraph "a", $56,000
and 1.00 FTE shall be used to support a position for oversight
of financial incentive programs.
b. To provide financial incentives for soil conservation
practices under chapter 161A:
$ 6,461,850
c. The following requirements apply to the moneys appropriated
in paragraph "b":
(1) Not more than 5 percent of the moneys appropriated in
paragraph "b" may be allocated for cost sharing to abate
complaints filed under section 161A.47.
(2) Of the moneys appropriated in paragraph "b", 5 percent
shall be allocated for financial incentives to establish
practices to protect watersheds above publicly owned lakes of
the state from soil erosion and sediment as provided in section
161A.73.
(3) Not more than 30 percent of a district's allocation of
moneys as financial incentives may be provided for the purpose
of establishing management practices to control soil erosion on
land that is row cropped, including but not limited to no-till
planting, ridge-till planting, contouring, and contour
stripcropping as provided in section 161A.73.
(4) The state soil conservation committee created in section
161A.4 may allocate moneys to conduct research and demonstration
projects to promote conservation tillage and nonpoint source
pollution control practices.
(5) The financial incentive payments may be used in combination
with department of natural resources moneys.
d. The provisions of section 8.33 shall not apply to the moneys
appropriated in paragraph "b". Unencumbered or unobligated
moneys remaining on June 30, 2000, from moneys appropriated in
paragraph "b" for the fiscal year beginning July 1, 1996, shall
revert to the general fund on August 31, 2000.
Sec. 2. FARMERS' MARKET COUPON PROGRAM. There is appropriated
from the general fund of the state to the department of
agriculture and land stewardship for the fiscal year beginning
July 1, 1996, and ending June 30, 1997, the following amount, or
so much thereof as is necessary, to be used for the purposes
designated:
For salaries, support, maintenance, and miscellaneous purposes,
to be used by the department to continue and expand the farmers'
market coupon program by providing federal special supplemental
food program recipients with coupons redeemable at farmers'
markets, and for not more than the following full-time
equivalent positions:
$ 215,807
FTEs 1.00
Sec. 3. PSEUDORABIES ERADICATION PROGRAM.
1. There is appropriated from the general fund of the state to
the department of agriculture and land stewardship for the
fiscal year beginning July 1, 1996, and ending June 30, 1997,
the following amount, or so much thereof as is necessary, to be
used for the purpose designated:
For support of the pseudorabies eradication program:
$ 900,300
2. Persons, including organizations interested in swine
production in this state and in the promotion of Iowa pork
products who contribute support to the program,
are encouraged to increase financial support for purposes of
ensuring the program's effective continuation.
Sec. 4. HORSE AND DOG RACING. There is appropriated from the
moneys available under section 99D.13 to the regulatory division
of the department of agriculture and land stewardship for the
fiscal year beginning July 1, 1996, and ending June 30, 1997,
the following amount, or so much thereof as is necessary, to be
used for the purpose designated:
For salaries, support, maintenance, and miscellaneous purposes
for the administration of section 99D.22:
$ 192,560
DEPARTMENT OF NATURAL RESOURCES
Sec. 5. GENERAL APPROPRIATION. There is appropriated from the
general fund of the state to the department of natural resources
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amounts, or so much thereof as is necessary,
to be used for the purposes designated:
1. ADMINISTRATIVE AND SUPPORT SERVICES
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:
$ 2,002,389
FTEs 119.25
Of the amount appropriated and the number of full-time
equivalent positions authorized in this subsection 1, at least
$150,000 and 4.00 FTEs shall be used by administration and
support services to support a compliance and permit assistance
team to facilitate cooperation between the department and
persons regulated by the department in order to ensure efficient
compliance with applicable legal requirements.
2. PARKS AND PRESERVES DIVISION
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:
$ 5,546,988
FTEs 195.73
3. FORESTS AND FORESTRY DIVISION
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:
$ 1,494,908
FTEs 48.71
4. ENERGY AND GEOLOGICAL RESOURCES DIVISION
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:
$ 1,681,228
FTEs 52.00
5. a. ENVIRONMENTAL PROTECTION DIVISION
(1) For salaries, support, maintenance, miscellaneous purposes,
and for not more than the following full-time equivalent
positions:
$ 1,920,509
FTEs 214.50
(2) Of the amount appropriated and the number of full-time
equivalent positions authorized in subparagraph (1) at least
$374,600 and 9.00 FTEs shall be used to support the regulation
of animal feeding operations.
(3) Of the number of full-time equivalent positions authorized
in subparagraph (1), 1.00 FTE shall be used to support the
administration of the waste tire management fund, as provided in
section 455D.11C, as enacted in 1996 Iowa Acts, House File 2433.
b. WATER QUALITY PROTECTION FUND
For allocation to the administrative account of the water
quality protection fund established pursuant to section
455B.183A, to carry out the purpose of that account:
$ 729,000
(1) Of the number of full-time equivalent positions authorized
in paragraph "a", 32.50 FTEs shall be dedicated to carrying out
the provisions of chapter 455B relating to the administration,
regulation, and enforcement of the federal Safe Drinking Water
Act and to support the program to assist water supply systems as
provided in section 455B.183B. However, the limitation on
full-time equivalent positions provided in paragraph "a", shall
not limit the number of additional fulltime equivalent positions
supported by moneys deposited in the water quality protection
fund as provided in section 455B.183A, in order to carry out the
provisions of division III of chapter 455B relating to the
administration, regulation, and enforcement of the federal Safe
Drinking Water Act, and the administration of the program to
assist water supply systems pursuant to section 455B.183B.
(2) In providing assistance to water supply systems, the
department shall provide priority to water supply systems
serving a population of seven thousand or less. At least 2.00
FTEs shall be allocated to provide assistance to systems serving
a population of seven thousand or less.
6. FISH AND WILDLIFE DIVISION
For not more than the following full-time equivalent positions:
FTEs 342.18
7. WASTE MANAGEMENT ASSISTANCE DIVISION
For not more than the following full-time equivalent positions:
FTEs 16.75
Sec. 6. STATE FISH AND GAME PROTECTION FUND - APPROPRIATION TO
THE DIVISION OF FISH AND WILDLIFE.
1. There is appropriated from the state fish and game
protection fund to the division of fish and wildlife of the
department of natural resources for the fiscal
year beginning July 1, 1996, and ending June 30, 1997, the
following amount, or so much thereof as is necessary, to be used
for the purposes designated:
For administrative support, and for salaries, support,
maintenance, equipment, and miscellaneous purposes:
$ 21,340,891
2. The department shall not expend more moneys from the fish
and game protection fund than provided in this section, unless
the expenditure derives from contributions made by a private
entity, or a grant or moneys received from the federal
government, and is approved by the natural resource commission.
The department of natural resources shall promptly notify the
legislative fiscal bureau and the chairpersons and ranking
members of the joint appropriations subcommittee on agriculture
and natural resources concerning the commission's approval.
Sec. 7. MARINE FUEL TAX RECEIPTS - BOATING FACILITIES AND
ACCESS. There is appropriated from the marine fuel tax receipts
deposited in the general fund of the state to the department of
natural resources for the fiscal year beginning July 1, 1996,
and ending June 30, 1997, the following amount, or so much
thereof as is necessary, to be used for the purpose designated:
For maintaining and developing boating facilities and access to
public waters by the parks and preserves division:
$ 411,311
Sec. 8. SNOWMOBILE FEES - TRANSFER FOR ENFORCEMENT PURPOSES.
There is transferred on July 1, 1996, from the fees deposited
under section 321G.7 to the fish and game protection fund and
appropriated to the department of natural resources for the
fiscal year beginning July 1, 1996, and ending June 30, 1997,
the following amount, or so much thereof as is necessary, to be
used for the purpose designated:
For enforcing snowmobile laws as part of the state snowmobile
program administered by the department of natural resources:
$ 100,000
Sec. 9. VESSEL FEES - TRANSFER FOR ENFORCEMENT PURPOSES. There
is transferred on July 1, 1996, from the fees deposited under
section 462A.52 to the fish and game protection fund and
appropriated to the department of natural resources for the
fiscal year beginning July 1, 1996, and ending June 30, 1997,
the following amount, or so much thereof as is necessary, to be
used for the purpose designated:
For the administration and enforcement of navigation laws and
water safety:
$ 1,300,000
Of the amount appropriated in this section and the full-time
equivalent positions authorized by section 5, subsection 6, of
this Act, not more than $100,000 and 1.00 FTE may be used for
purposes of controlling and eradicating eurasian milfoil.
Notwithstanding section 8.33, moneys transferred pursuant to
this section which are unencumbered or unobligated on June 30,
1997, shall be transferred on July 1, 1997, to the special
conservation fund established by section 462A.52 to be used as
provided in that section, and shall not revert as provided in
section 8.33.
RESOURCES ENHANCEMENT AND PROTECTION
Sec. 10. GENERAL APPROPRIATION. Notwithstanding the amount of
the standing appropriation from the general fund of the state
under section 455A.18, subsection 3, there is appropriated from
the general fund of the state to the Iowa resources enhancement
and protection fund, in lieu of the appropriation made in
section 455A.18, for the fiscal year beginning July 1, 1996, and
ending June 30, 1997, the sum of $9,000,000, of which all moneys
shall be allocated as provided in section 455A.19.
RELATED APPROPRIATIONS
Sec. 11. APPROPRIATION AND TRANSFER FROM ORGANIC NUTRIENT
MANAGEMENT FUND. There is appropriated and transferred from the
organic nutrient management fund, as created in section 161C.5,
to the following entities in the fiscal year beginning July 1,
1996, and ending June 30, 1997, the following amounts, or so
much thereof as is necessary, to be used for the purposes
designated:
1. To Iowa state university for supporting odor control
applications of animal feeding operations, including confinement
feeding operations, regulated by the department of natural
resources pursuant to chapter 455B:
$ 400,000
a. Moneys provided under this subsection for odor control
applications of animal feeding operations shall be provided on a
dollar-for-dollar match with an individual owner or operator and
shall not exceed the amount actually spent by or on behalf of
the owner or operator for odor control.
b. Notwithstanding section 8.33, moneys provided under this
subsection for odor control applications of animal feeding
operations shall not revert to the organic nutrient management
fund but shall remain available for use as provided in this
subsection during the fiscal year beginning July 1, 1997, and
ending June 30, 1998. The moneys provided in this subsection
which remain unexpended or unobligated on June 30, 1998, shall
revert to the organic nutrient management fund on August 31,
1998.
2. To Iowa state university for supporting a person connected
with the United States department of agriculture who engages in
animal control, for purposes of contributing to the control of
animals, and especially predators, which pose a threat to this
state's agriculture:
$ 50,000
3. To the soil conservation division of the department of
agriculture and land stewardship for supporting soil and water
conservation district development, including the training of
soil and water conservation district staff:
$ 42,000
4. To the interstate agricultural grain marketing commission
for carrying out duties of the commission as provided in Article
IV of the interstate compact on agricultural grain marketing as
provided in chapter 183:
$ 80,000
5. a. To Iowa state university for supporting multiflora rose
eradication research and projects:
$ 25,000
b. Notwithstanding 1995 Iowa Acts, chapter 216, section 19,
subsection 2, moneys allocated pursuant to 1995 Iowa Acts,
chapter 216, section 19, subsection 1, paragraph "d", which
remain unencumbered or unobligated on June 30, 1996, shall not
revert pursuant to section 8.33, but shall remain available to
Iowa state university for purposes of supporting multiflora rose
eradication research and projects, for subsequent fiscal years.
6. To the soil conservation division of the department of
agriculture and land stewardship to provide financial incentives
for soil conservation practices under chapter 161A:
$ 100,000
7. To Iowa state university, in cooperation with the farm
section of the attorney general's office, in sponsoring an Iowa
agriculture 2000 conference, with assistance provided by the
department of agriculture and land stewardship and Iowa
commodity organizations, for independent agricultural producers
and other persons interested in the future of Iowa agriculture:
$ 80,000
Moneys provided by this subsection shall be used to defray
expenses incurred by Iowa state university and the farm section
of the attorney general's office in planning and sponsoring the
conference. Iowa state university shall prepare a report which
accounts for moneys expended by the university in sponsoring the
conference. The report shall be submitted to the chairpersons
and ranking members of the joint appropriations subcommittee on
agriculture and natural resources on or before January 15, 1997.
Sec. 12. NONREVERSION OF MONEYS ALLOCATED TO IOWA GRAIN QUALITY
INITIATIVE. Notwithstanding 1995 Iowa Acts, chapter 216,
section 19, subsection 2, moneys allocated pursuant to 1995 Iowa
Acts, chapter 216, section 19, subsection 1, paragraph "f",
subparagraph (1), which remain unencumbered or unobligated on
June 30, 1996, shall not revert pursuant to section 8.33, but
shall remain available to Iowa state university for purposes of
supporting the Iowa cooperative extension service in agriculture
and home economics in establishing and administering an Iowa
grain quality initiative in subsequent fiscal years.
Sec. 13. TRANSFERS OF MONEYS REQUIRED TO BE DEPOSITED IN THE
WATER PROTECTION FUND. Notwithstanding section 161C.4 and the
reversion and allocation provisions in section 455A.19,
subsection 1, paragraph "c", of the unencumbered and unobligated
moneys remaining, which are required to be deposited in the
water protection fund created in section 161C.4, as provided in
section 455A.19, subsection 1, paragraph "c", the following
amount shall be transferred first from moneys required to be
deposited in the water protection practices account, and if
necessary from moneys required to be deposited in the water
quality protection projects account, which shall be used for the
following purposes:
To the Loess Hills development and conservation authority, for
deposit in the Loess Hills development and conservation fund
created in section 161D.2 for the purposes specified in section
161D.1:
$ 400,000
Sec. 14. REVENUE ADMINISTERED BY THE IOWA COMPREHENSIVE
UNDERGROUND STORAGE TANK FUND BOARD TRANSFER. There is
appropriated from the unassigned revenue fund administered by
the Iowa comprehensive underground storage tank fund board, to
the department of natural resources for the fiscal year
beginning July 1, 1996, and ending June 30, 1997, the following
amount, or so much thereof as is necessary, to be used for the
purpose designated:
For administration expenses of the underground storage tank
section of the department of natural resources:
$ 75,000
Sec. 15. TRANSFER - AIR QUALITY. For the fiscal year beginning
July 1, 1996, and ending June 30, 1997, the department of
natural resources shall transfer up to $430,000 from the
hazardous substance remedial fund created pursuant to section
455B.423, to support purposes related to carrying out the duties
of the commission under section 455B.133, or the director under
section 455B.134, or for carrying out the provisions of chapter
455B, division II.
MISCELLANEOUS
Sec. 16. STUDY OF LOCATING FIELD OFFICE IN NORTH CENTRAL
DISTRICT. The department of natural resources shall conduct a
study of the feasibility of locating a field office in the
department's north central district. On or before January 1,
1997, the department of natural resources shall submit a report
including findings and recommendations resulting from the study
to the committees of the general assembly which have
jurisdiction over natural resources.
Sec. 17. STATE NURSERIES. Notwithstanding section 17A.2,
subsection 10, paragraph "g", the department of natural
resources shall adopt administrative rules establishing a range
of prices of plant material grown at the state forest nurseries
to cover all expenses related to the growing of the plants.
1. The department shall develop programs to encourage the wise
management and preservation of existing woodlands and shall
continue its efforts to encourage forestation and reforestation
on private and public lands in the state.
2. The department shall encourage a cooperative relationship
between the state forest nurseries and private nurseries in the
state in order to achieve these goals.
Sec. 18. TRANSFER OF MONEYS OR POSITIONS; CHANGES IN TABLES OF
ORGANIZATION - NOTIFICATION. In addition to the requirements of
section 8.39, in each fiscal quarter, the department of
agriculture and land stewardship and the department of natural
resources shall notify the chairpersons, vice chairpersons, and
ranking members of the joint appropriations subcommittee on
agriculture and natural resources for the previous fiscal
quarter of any transfer of moneys or full-time equivalent
positions made by either department which is not authorized in
this Act, or any permanent position added to or deleted from
either department's table of organization.
Sec. 19. AIR QUALITY PROGRAM - NONGENERAL FUND SUPPORT. The
department of natural resources for the fiscal year beginning
July 1, 1996, and ending June 30, 1997, shall not use moneys
appropriated from the general fund of the state pursuant to this
Act, to support any purpose related to carrying out the duties
of the commission under section 455B.133 or the director under
section 455B.134, or for carrying out the provisions of chapter
455B, division II.
Notwithstanding section 455B.133B, the department may use moneys
deposited in the air contaminant source fund created in section
455B.133B during the
fiscal year beginning July 1, 1996, and ending June 30, 1997,
for any purpose related to carrying out the duties of the
commission under section 455B.133 or the director under section
455B.134, or for carrying out the provisions of chapter 455B,
division II.
Sec. 20. NATIVE AMERICAN WAR MEMORIAL. The department of
natural resources may purchase, with funds which become
available under chapter 465A for the fiscal year beginning July
1, 1996, and ending June 30, 1997, lands on which to locate a
native American war memorial.
Sec. 21. SOIL AND WATER CONSERVATION CONFERENCE.
1. The division of soil conservation of the department of
agriculture and land stewardship shall sponsor a conference not
later than September 1, 1996, regarding the protection of
cropland soils in this state. The conference shall include
discussions of the status of soil and water conservation as it
relates to conservation compliance accomplishments, agricultural
production policies, water quality protection, and the state's
Iowa soil 2000 goal.
2. Conferees shall include representatives of the division of
soil conservation, the state soil conservation committee, soil
and water conservation districts, the natural resources
conservation service of the United States department of
agriculture, the cooperative extension service of Iowa state
university, and the department of natural resources. The
division of soil conservation shall invite other interested
persons to serve as conferees, including members of Iowa's
congressional delegation; the chairpersons and ranking members
of the standing committees on agriculture, and on natural
resources, environment, and energy of the senate; the
chairpersons and ranking members of the standing committees on
agriculture, on natural resources, and on environmental
protection of the house of representatives; the chairpersons and
ranking members of the joint appropriations subcommittee on
agriculture and natural resources; representatives of the United
States environmental protection agency; and members of farm and
commodity organizations.
3. The division of soil conservation shall report to the
general assembly not later than January 15, 1997, regarding
findings and recommendations of the conferees.
Sec. 22. LAND ACQUISITION - NATURAL RESOURCE COMMISSION. The
natural resource commission, upon consultation with department
of natural resources staff, shall develop and implement a land
acquisition policy which shall be embodied in a strategic land
acquisition plan administered by the department. The land
acquisition policy and the land acquisition strategic plan shall
provide for the acquisition of land in order to enhance the
quality of existing state parks, state preserves, state forests,
state wildlife areas, and state recreation areas. The
commission shall consider all of the following factors and may
consider additional factors:
1. The enhancement of the goals of an ecosystem or biodiversity
management plan for a state park, state preserve, state forest,
state wildlife area, or state recreation area.
2. The proximity or contiguity of the land to a state park,
state preserve, state forest, state wildlife area, or state
recreation area.
3. The quality of existing natural communities existing on the
land.
4. The presence on the land of threatened or endangered species.
5. The potential for enhancing the natural quality or
recreational potential of land owned or managed for conservation
purposes by other public or nonprofit entities.
6. The risk of losing natural assets through the sale of the
land to a competing interest.
7. The preservation or enhancement of unique irreplaceable
archaeological, historical, or cultural features existing on
land owned or managed for such purposes by other public or
nonprofit entities.
Sec. 23. GIFT CERTIFICATES FOR SPECIAL PRIVILEGE FEES ON STATE
PARKS AND RECREATION AREAS. The department of natural resources
shall publish and make available for purchase by the general
public gift certificates entitling the bearer of the certificate
to free camping and other special privileges at state parks and
recreation areas. The department shall establish prices for the
certificates based on amounts required to be paid in fees for
camping and special privileges pursuant to section 461A.47.
Sec. 24. APPROPRIATIONS CONDITIONAL UPON IMPLEMENTATION OF
CERTAIN PROVISIONS. As a condition of the appropriations made
to the department of agriculture and land stewardship in
sections 1 through 4 of this Act, the following shall occur as
provided in sections 26 and 27 of this Act by July 1, 1996:
1. The department shall complete all administrative functions
necessary to transfer the powers and duties of the deputy
secretary of agriculture to the interim assistant secretary of
agriculture.
2. The office from which the position of deputy secretary of
agriculture performed duties on January 1, 1996, shall be
vacated until the position of interim assistant secretary of
agriculture is filled.
Sec. 25. DEPUTY SECRETARY OF AGRICULTURE - POSITION ELIMINATED.
Notwithstanding contrary provisions in sections 14A.1 and
159.14, the position of deputy secretary of agriculture is
eliminated.
Sec. 26. ADMINISTRATIVE ASSISTANT VI POSITION. An additional
position of administrative assistant VI is created within the
department of agriculture and land stewardship. The duties of
the position shall not include any matter relating to personnel,
including the appointment of an interim assistant secretary of
agriculture as provided in section 27 of this Act; or the
administration of or budgeting for the department or its
administrative units, including divisions within the department.
The position shall not have jurisdiction over the heads of the
department's administrative units, including division directors.
Notwithstanding chapter 19A, the person appointed to fill the
position shall serve at the pleasure of the secretary of
agriculture. The secretary of agriculture shall prepare and
submit a written report to the chairpersons and ranking members
of the house and senate standing committees on appropriations
and to the legislative fiscal bureau director not later than
August 31, 1996, describing the duties and responsibilities of
the position.
Sec. 27. INTERIM ASSISTANT SECRETARY OF AGRICULTURE. The
position of interim assistant secretary of agriculture is
created within the department of agriculture and land
stewardship. The secretary of agriculture shall appoint a
person to serve as the interim assistant secretary of
agriculture, at any time after the effective date of this
section of this Act. However, the person appointed as interim
assistant secretary of agriculture shall not fill that position
before January
15, 1997. Notwithstanding chapter 19A, the person appointed as
interim assistant secretary of agriculture shall serve at the
pleasure of the secretary of agriculture. The interim assistant
secretary of agriculture shall have the same powers and duties
performed by the position of the deputy secretary of
agriculture, as that position existed on January 1, 1996. Until
the appointment of the interim assistant secretary of
agriculture is made, the interim assistant secretary of
agriculture's duties shall be performed by the administrative
division director of the department of agriculture and land
stewardship who shall be acting interim assistant secretary of
agriculture. Upon appointment, the interim assistant secretary
of agriculture shall receive compensation at the same pay grade
at which the position of deputy secretary of agriculture was
compensated immediately prior to the effective date of this
section of this Act. No position shall be housed in the office
from which the position of deputy secretary of agriculture
performed duties on January 1, 1996, until the appointment of
the interim assistant secretary of agriculture, who shall be
housed in that office.
CODIFIED CHANGES
Sec. 28. NEW SECTION. 2.55A DEPARTMENTAL INFORMATION
REQUIRED.
1. The department of agriculture and land stewardship and the
department of natural resources, in cooperation as necessary
with the department of management and the department of
personnel, shall provide a list to the legislative fiscal
bureau, on a quarterly basis, of all permanent positions added
to or deleted from the departments' table of organization in the
previous fiscal quarter. This list shall include at least the
position number, salary range, projected funding source or
sources of each position, and the reason for the addition or
deletion. The legislative fiscal bureau may use this
information to assist in the establishment of the full-time
equivalent position limits authorized in law for the departments.
2. The department of natural resources shall provide the
legislative fiscal bureau information and financial data by cost
center, on at least a monthly basis, relating to the indirect
cost accounting procedure, the amount of funding from each
funding source for each cost center, and the internal budget
system used by the department. The information shall include
but is not limited to financial data covering the department's
budget by cost center and funding source prior to the start of
the fiscal year, and to the department's actual expenditures by
cost center and funding source after the accounting system has
been closed for that fiscal year.
3. The department of agriculture and land stewardship shall
provide the legislative fiscal bureau information and financial
data on at least a monthly basis, relating to the internal
budget system used by the department. The information shall
include but is not limited to financial data covering the
department's budget prior to the start of the fiscal year, and
to the department's actual expenditures after the accounting
system has been closed for that fiscal year.
Sec. 29. NEW SECTION. 8.60A TRUST FUND INFORMATION.
The department of revenue and finance in cooperation with each
appropriate agency shall track receipts to the general fund of
the state which under law were previously collected to be used
for specific purposes, or to be credited to, or be deposited to
a particular account or fund, as provided in section 8.60.
The department of revenue and finance and each appropriate
agency shall prepare reports detailing revenue from receipts
previously deposited into each of the funds. A report shall be
submitted to the legislative fiscal bureau at least once for
each three-month period as designated by the legislative fiscal
bureau.
Sec. 30. Section 166D.10, Code 1995, is amended by adding the
following new subsection:
NEW SUBSECTION. 4. In addition to other applicable
requirements of this section, feeder swine shall not be moved
into this state from another state except to slaughter, unless
the feeder swine are vaccinated by a differentiable vaccine
within forty-five days of arrival in this state.
Sec. 31. Section 455A.18, subsection 3, unnumbered paragraph 1,
Code 1995, is amended to read as follows:
For each fiscal year of the fiscal period beginning July 1,
1990 1997, and ending June 30, 2001 2021, there
is appropriated from the general fund, to the Iowa resources
enhancement and protection fund, the amount of thirty
twenty million dollars, except that for the fiscal year
beginning July 1, 1990, the amount is twenty million dollars,
to be used as provided in this chapter. However, in any fiscal
year of the fiscal period, if moneys from the lottery are
appropriated by the state to the fund, the amount appropriated
under this subsection shall be reduced by the amount
appropriated from the lottery.
Sec. 32. NEW SECTION. 455A.21 PREFERENCE PROVIDED -
PERSONS MEETING ELIGIBILITY REQUIREMENTS OF THE GREEN THUMB
PROGRAM.
In its employment of persons in temporary positions in
conservation and outdoor recreation, the department of natural
resources shall give preference to persons meeting eligibility
requirements for the green thumb program under section 15.227
and to persons working toward an advanced education in natural
resources and conservation.
Sec. 33. FUTURE REPEAL. Sections 25 through 27 of this Act are
repealed on December 31, 1998.
Sec. 34. EFFECTIVE DATES.
1. This subsection, section 11, subsection 5, paragraph "b",
and section 12 of this Act, being deemed of immediate
importance, take effect upon enactment.
2. The amendment to section 455A.18 in this Act takes effect on
July 1, 1997."
ON THE PART OF THE HOUSE ON THE PART OF THE SENATE
JAMES HAHN, Chair DENNIS H. BLACK, Chair
JACK DRAKE BRAD BANKS
SANDRA GREINER DON E. GETTINGS
Speaker Corbett in the chair at 5:12 p.m.
Koenigs of Mitchell rose on a point of order and invoked Rule
39A, relating to consideration of conference committee reports.
The Speaker ruled the point well taken and Rule 39A in order.
Siegrist of Pottawattamie moved to suspend Rule 39A for the
consideration of the conference committee report on Senate File
2446.
Roll call was requested by Murphy of Dubuque and Koenigs of
Mitchell.
On the question "Shall Rule 39A be suspended?" (S.F. 2446)
The ayes were, 52:
Arnold Blodgett Boggess Bradley
Brauns Carroll Coon Cormack
Daggett Dinkla Disney Drake
Eddie Gipp Greig Greiner
Gries Grubbs Grundberg Hahn
Hammitt Barry Hanson Harrison Hurley
Huseman Jacobs Klemme Kremer
Lamberti Lord Main Martin
Metcalf Meyer Millage Nelson, B.
Nutt Rants Renken Schulte
Siegrist Sukup Teig Thomson
Tyrrell Van Fossen Van Maanen Vande Hoef
Veenstra Weidman Welter Mr. Speaker
Corbett
The nays were, 35:
Baker Bell Bernau Burnett
Cataldo Cohoon Connors Doderer
Fallon Garman Harper Holveck
Jochum Koenigs Kreiman Larkin
Mascher May McCoy Mertz
Moreland Mundie Murphy Myers
Nelson, L. O'Brien Ollie Osterhaus
Schrader Shoultz Taylor Warnstadt
Weigel Wise Witt
Absent or not voting, 13:
Boddicker Brammer Brand Branstad
Brunkhorst Churchill Drees Ertl
Halvorson Heaton Houser Larson
Salton
The motion prevailed and the rule was suspended.
Doderer of Johnson rose on a point of order to amend the
conference committee report on Senate File 2446.
The Speaker ruled the point out of order.
Hahn of Muscatine moved the adoption of the conference committee
report on Senate File 2446.
Roll call was requested by Murphy of Dubuque and Van Maanen of
Marion.
On the question "Shall the conference committee report be
adopted?" (S.F. 2446)
The ayes were, 57:
Arnold Baker Blodgett Boggess
Bradley Brauns Cataldo Churchill
Coon Daggett Dinkla Disney
Drake Eddie Ertl Gipp
Greig Greiner Gries Grubbs
Grundberg Hahn Halvorson Hammitt
Barry Hanson Harrison Heaton Houser
Hurley Huseman Jacobs Klemme
Kremer Lamberti Lord Main
Martin Metcalf Meyer Millage
Mundie Nelson, B. Nutt Rants
Renken Schulte Siegrist Teig
Thomson Tyrrell Van Fossen Van Maanen
Vande Hoef Veenstra Weidman Welter
Mr. Speaker
Corbett
The nays were, 36:
Bell Bernau Branstad Brunkhorst
Burnett Cohoon Connors Cormack
Doderer Fallon Garman Harper
Holveck Jochum Koenigs Kreiman
Larkin Mascher May McCoy Mertz
Moreland Murphy Myers Nelson, L.
O'Brien Ollie Osterhaus Schrader
Shoultz Sukup Taylor Warnstadt
Weigel Wise Witt
Absent or not voting, 7:
Boddicker Brammer Brand Carroll
Drees Larson Salton
The motion prevailed and the report was adopted.
Hahn of Muscatine moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill
was read a last time.
On the question "Shall the bill pass?" (S.F. 2446)
The ayes were, 63:
Arnold Baker Bell Bernau
Blodgett Boggess Bradley Brauns
Cataldo Churchill Coon Daggett
Dinkla Disney Drake Eddie
Ertl Garman Gipp Greiner
Gries Grubbs Grundberg Hahn
Halvorson Hammitt Barry Hanson
Harrison Heaton Houser Hurley
Huseman Jacobs Klemme Koenigs
Kremer Lamberti Lord Main
Martin
Metcalf Meyer Millage
Mundie Murphy Nelson, B. Nutt
Rants Renken Schulte Shoultz
Siegrist Sukup Teig Thomson
Tyrrell Van Fossen Van Maanen Vande Hoef
Veenstra Weidman Welter Mr. Speaker
Corbett
The nays were, 30:
Branstad Brunkhorst Burnett Cohoon
Connors Cormack Doderer Fallon
Greig Harper Holveck Jochum
Kreiman Larkin Mascher May
McCoy Mertz Moreland Myers Nelson, L.
O'Brien Ollie Osterhaus Schrader
Taylor Warnstadt Weigel Wise
Witt
Absent or not voting, 7:
Boddicker Brammer Brand Carroll
Drees Larson Salton
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGE
Gipp of Winneshiek asked and received unanimous consent that
Senate File 2446 be immediately messaged to the Senate.
EXPLANATION OF VOTE
I was necessarily absent from the House chamber on April 18,
1996. Had I been present, I would have voted "aye" on House File
2458 and Senate Files 284, 2154, 2195, 2366, and 2370.
LARSON of Linn
BILLS ENROLLED, SIGNED AND SENT TO GOVERNOR
The Chief Clerk of the House submitted the following report:
Mr. Speaker: The Chief Clerk of the House respectfully reports
that the following bills have been examined and found correctly
enrolled, signed by the Speaker of the House and the President
of the Senate, and presented to the Governor for his approval on
this Nineteenth day of April, 1996: House Files 230, 2201, 2432
and 2448.
Also: Presented to the Governor for his approval on this
Twenty-second day of April, 1996: House Files 2144 and 2370.
ELIZABETH A. ISAACSON
Chief Clerk of the House
Reports adopted.
BILLS SIGNED BY THE GOVERNOR
A communication was received from the Governor announcing that
on April 18, 1996, he approved and transmitted to the Secretary
of State the following bills:
House File 2399, an act relating to eligibility of persons for
county general assistance.
House File 2488, an act relating to special census certification
and providing an effective date.
Senate File 2012, an act relating to the conduct of raffles.
Senate File 2071, an act creating an advisory commission on
intergovernmental relations, specifying its membership and its
powers and duties, providing for other properly related matters,
and providing an effective date.
Senate File 2211, an act relating to fingerprinting requirements
for certain public offenses.
Senate File 2305, an act relating to purchase money mortgages
and providing a retroactive applicability provision.
Senate File 2344, an act relating to child support enforcement.
Senate File 2359, an act relating to the source of payment of
the fee and expenses of a county medical examiner related to
services provided for a person whose death affects the public
interest.
Senate File 2368, an act providing for the regulation of
investment securities under Article 8 of the Uniform Commercial
Code, and providing conforming changes, and an effective date.
Senate File 2396, an act adding certain residential security
deposits and prepaid rent to the list of exempt property which a
debtor may claim.
Senate File 2420, an act relating to juvenile justice, including
the use of deadly force by criminal street gangs, dispositional
alternatives for juveniles adjudicated delinquent, registering
with the sex offender registry, and associate juvenile judge
jurisdiction.
CERTIFICATES OF RECOGNITION
MR. SPEAKER: The Chief Clerk of the House respectfully reports
that certificates of recognition have been issued as follows.
ELIZABETH A. ISAACSON
Chief Clerk of the House
1996\507 Marcella and Robert Brooks, Council Bluffs - For
celebrating their Fiftieth wedding anniversary.
1996\508 Kreft Elementary School, Council Bluffs - For receiving
a FINE Foundation Recognition Award.
1996\509 Marge and Earl Maytum, Council Bluffs - For celebrating
their Fiftieth wedding anniversary.
1996\510 Gerry and Randall Hough, Council Bluffs - For
celebrating their Fiftieth wedding anniversary.
1996\511 Bedford Main Street, Bedford - For receiving a Special
Recognition Award at the 1996 Main Street Recognition Program.
1996\512 Mark Norman, Bedford - For receiving a Main Street
Volunteer Award at the 1996 Main Street Recognition Program.
1996\513 United National Bank, Bedford - For receiving a Main
Street Volunteer Organization Award at the 1996 Main Street
Recognition Program.
1996\514 Corning Rotary Club, Corning - For receiving a Main
Street Volunteer Organization Award at the 1996 Main Street
Recognition Program.
1996\515 Corning Main Street, Corning - For receiving various
awards at the 1996 Main Street Recognition Program including the
Spirit of Main Street Award.
1996\516 John McMahon, Corning - For receiving a Main Street
Volunteer Award at the 1996 Main Street Recognition Program.
1996\517 Betty and Donald Wormley, Council Bluffs - For
celebrating their Fiftieth wedding anniversary.
1996\518 Ryan Scott Toenjes, Monticello - For attaining the rank
of Eagle Scout, the highest rank in the Boy Scouts of America.
1996\519 Matthew Miller, Manchester - For attaining the rank of
Eagle Scout, the highest rank in the Boy Scouts of America.
1996\520 Robert John Gallery, Masonville - For attaining the
rank of Eagle Scout, the highest rank in the Boy Scouts of
America.
1996\521 Ethel and Howard Swaney, Modale - For celebrating their
Sixty-fifth wedding anniversary.
1996\522 Helene and Edwin McFerrin, Modale - For celebrating
their Sixty-fifth wedding anniversary.
AMENDMENT FILED
H-6032 H.F. 2486 Senate Amendment
On motion by Siegrist of Pottawattamie, the House adjourned at
6:40 p.m., until 10:00 a.m., Tuesday, April 23, 1996.
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Index: House Journal (76th General Assembly: Session 2)
© 1996 Cornell College and League of Women Voters of Iowa
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