Text: HF02152 Text: HF02154 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2153 1 2 1 3 AN ACT 1 4 PROVIDING THAT MEMBER CONTRIBUTIONS UNDER CERTAIN PUBLIC 1 5 RETIREMENT SYSTEMS ARE CONSIDERED EMPLOYER CONTRIBUTIONS 1 6 FOR STATE INCOME TAX PURPOSES, AND PROVIDING EFFECTIVE 1 7 AND APPLICABILITY DATE PROVISIONS. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. Section 97A.8, subsection 1, paragraph i, Code 1 12 1997, is amended to read as follows: 1 13 i. (1) Notwithstanding paragraph "g" or other provisions 1 14 of this chapter, beginning January 1, 1995, for federal income 1 15 tax purposes, and beginning January 1, 1999, for state income 1 16 tax purposes, member contributions required under paragraph 1 17 "f" or "h" which are picked up by the department shall be 1 18 considered employer contributions for federal and state income 1 19 tax purposes, and the department shall pick up the member 1 20 contributions to be made under paragraph "f" or "h" by its 1 21 employees. The department shall pick up these contributions 1 22 by reducing the salary of each of its employees covered by 1 23 this chapter by the amount which each employee is required to 1 24 contribute under paragraph "f" or "h" and shall certify the 1 25 amount picked up in lieu of the member contributions to the 1 26 department of revenue and finance. The department of revenue 1 27 and finance shall forward the amount of the contributions 1 28 picked up to the board of trustees for recording and deposit 1 29 in the pension accumulation fund. 1 30 (2) Member contributions picked up by the department under 1 31 subparagraph (1) shall be treated as employer contributions 1 32 for federal and state income tax purposes only and for all 1 33 other purposes of this chapterand the laws of this state1 34 shall be treated as employee contributions and deemed part of 1 35 the employee's earnable compensation or salary. 2 1 Sec. 2. Section 97B.11A, Code 1997, is amended to read as 2 2 follows: 2 3 97B.11A PICKUP OF EMPLOYEE CONTRIBUTIONS. 2 4 1. Notwithstanding section 97B.11 or other provisions of 2 5 this chapter, beginning January 1, 1995, for federal income 2 6 tax purposes, and beginning January 1, 1999, for state income 2 7 tax purposes, member contributions required under section 2 8 97B.11 which are picked up by the employer shall be considered 2 9 employer contributions for federal and state income tax 2 10 purposes, and each employer shall pick up the member 2 11 contributions to be made under section 97B.11 by its 2 12 employees. Each employer shall pick up these contributions by 2 13 reducing the salary of each of its employees covered by this 2 14 chapter by the amount which each employee is required to 2 15 contribute under section 97B.11 and shall pay the amount 2 16 picked up in lieu of the member contributions as provided in 2 17 section 97B.14. 2 18 2. Member contributions picked up by each employer under 2 19 subsection 1 shall be treated as employer contributions for 2 20 federal and state income tax purposes only and for all other 2 21 purposes of this chapterand the laws of this stateshall be 2 22 treated as employee contributions and deemed part of the 2 23 employee's wages or salary. 2 24 Sec. 3. Section 294.10A, Code 1997, is amended to read as 2 25 follows: 2 26 294.10A PICKUP OF TEACHER ASSESSMENTS. 2 27 1. Notwithstanding section 294.9 or other provisions of 2 28 this chapter, for federal income tax purposes beginning 2 29 January 1 following the submission by a board of trustees of 2 30 an application to the federal internal revenue service 2 31 requesting qualification of a plan in accordance with the 2 32 requirements of the Internal Revenue Code, as defined in 2 33 section 422.3, and for state income tax purposes beginning 2 34 January 1, 1999, or January 1 following an application for 2 35 qualification, whichever is later, teacher assessments 3 1 required under section 294.9 which are picked up by an 3 2 employing school district shall be considered employer 3 3 contributions for federal and state income tax purposes, and 3 4 each employing school district establishing a pension and 3 5 annuity retirement system pursuant to this chapter shall pick 3 6 up the teacher assessments to be made under section 294.9 by 3 7 its employees commencing on theJanuary 1 following an3 8application for qualificationapplicable date on which the 3 9 assessments shall be considered employer contributions for 3 10 income tax purposes under this subsection. Each employing 3 11 school district shall pick up these teacher assessments by 3 12 reducing the salary of each of the teachers covered by this 3 13 chapter by the amount which each teacher is required to 3 14 contribute through assessments under section 294.9 and shall 3 15 pay to the board of trustees the amount picked up in lieu of 3 16 the teacher assessments for recording and deposit in the fund. 3 17 2. Teacher assessments picked up by each employing school 3 18 district under subsection 1 shall be treated as employer 3 19 contributions for federal and state income tax purposes only 3 20 and for all other purposes of this chapterand the laws of3 21this stateshall be treated as teacher assessments and deemed 3 22 part of the teacher's wages or salary. 3 23 Sec. 4. Section 411.8, subsection 1, paragraph i, Code 3 24 1997, is amended to read as follows: 3 25 i. (1) Notwithstanding paragraph "g" or other provisions 3 26 of this chapter, beginning January 1, 1995, for federal income 3 27 tax purposes, and beginning January 1, 1999, for state income 3 28 tax purposes, member contributions required under paragraph 3 29 "f" or "h" which are picked up by the city shall be considered 3 30 employer contributions for federal and state income tax 3 31 purposes, and each city shall pick up the member contributions 3 32 to be made under paragraph "f" or "h" by its employees. Each 3 33 city shall pick up these contributions by reducing the salary 3 34 of each of its employees covered by this chapter by the amount 3 35 which each employee is required to contribute under paragraph 4 1 "f" or "h" and shall pay the amount picked up in lieu of the 4 2 member contributions to the board of trustees for recording 4 3 and deposit in the fund. 4 4 (2) Member contributions picked up by each city under 4 5 subparagraph (1) shall be treated as employer contributions 4 6 for federal and state income tax purposes only and for all 4 7 other purposes of this chapterand the laws of this state4 8 shall be treated as employee contributions and deemed part of 4 9 the employee's earnable compensation or salary. 4 10 Sec. 5. Section 422.7, subsections 29 through 31, Code 4 11 Supplement 1997, are amended by striking the subsections. 4 12 Sec. 6. EFFECTIVE AND APPLICABILITY DATE. This Act takes 4 13 effect January 1, 1999, and applies to tax years beginning on 4 14 or after January 1, 1999. 4 15 4 16 4 17 4 18 RON J. CORBETT 4 19 Speaker of the House 4 20 4 21 4 22 4 23 MARY E. KRAMER 4 24 President of the Senate 4 25 4 26 I hereby certify that this bill originated in the House and 4 27 is known as House File 2153, Seventy-seventh General Assembly. 4 28 4 29 4 30 4 31 ELIZABETH ISAACSON 4 32 Chief Clerk of the House 4 33 Approved , 1998 4 34 4 35 5 1 5 2 TERRY E. BRANSTAD 5 3 Governor
Text: HF02152 Text: HF02154 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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