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House File 2496

Partial Bill History

Bill Text

PAG LIN
  1  1                                        HOUSE FILE 2496
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO PUBLIC RETIREMENT SYSTEMS, AND PROVIDING 
  1  5    EFFECTIVE, IMPLEMENTATION, AND APPLICABILITY DATES.
  1  6 
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 
  1  8 
  1  9                           DIVISION I
  1 10       PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT,
  1 11                      AND DISABILITY SYSTEM
  1 12    Section 1.  Section 97A.6, subsection 2, paragraph d,
  1 13 subparagraph (4), Code 1997, is amended to read as follows:
  1 14    (4)  For a member who terminates service, other than by
  1 15 death or disability, on or after July 1, 1996, but before July
  1 16 1, 1998, and who does not withdraw the member's contributions
  1 17 pursuant to section 97A.16, upon the member's retirement there
  1 18 shall be added one and one-half percent of the member's
  1 19 average final compensation for each year of service over
  1 20 twenty-two years.  However, this subparagraph does not apply
  1 21 to more than eight additional years of service.
  1 22    Sec. 2.  Section 97A.6, subsection 2, paragraph d, Code
  1 23 1997, is amended by adding the following new subparagraph:
  1 24    NEW SUBPARAGRAPH.  (5)  For a member who terminates
  1 25 service, other than by death or disability, on or after July
  1 26 1, 1998, and who does not withdraw the member's contributions
  1 27 pursuant to section 97A.16, upon the member's retirement there
  1 28 shall be added one and one-half percent of the member's
  1 29 average final compensation for each year of service over
  1 30 twenty-two years.  However, this subparagraph does not apply
  1 31 to more than ten additional years of service.
  1 32    Sec. 3.  Section 97A.6, subsection 4, Code 1997, is amended
  1 33 to read as follows:
  1 34    4.  ALLOWANCE ON ORDINARY DISABILITY RETIREMENT.
  1 35    a.  Upon retirement for ordinary disability prior to July
  2  1 1, 1998, a member shall receive an ordinary disability
  2  2 retirement allowance which shall consist of a pension which
  2  3 shall equal fifty percent of the member's average final
  2  4 compensation unless either of the following conditions exist:
  2  5    a. (1)  If the member has not had five or more years of
  2  6 membership service, the member shall receive a disability
  2  7 pension equal to one-fourth of the member's average final
  2  8 compensation.
  2  9    b. (2)  If the member has had twenty-two or more years of
  2 10 membership service, the member shall receive a disability
  2 11 retirement allowance that is equal to the greater of the
  2 12 benefit that the member would receive under subsection 2 if
  2 13 the member were fifty-five years of age or the disability
  2 14 pension otherwise calculated under this subsection.
  2 15    b.  Upon retirement for ordinary disability on or after
  2 16 July 1, 1998, a member who has five or more years of
  2 17 membership service shall receive a disability retirement
  2 18 allowance in an amount equal to the greater of fifty percent
  2 19 of the member's average final compensation or the retirement
  2 20 allowance that the member would receive under subsection 2 if
  2 21 the member had attained fifty-five years of age.  A member who
  2 22 has less than five years of membership service shall receive a
  2 23 pension equal to one-fourth of the member's average final
  2 24 compensation.
  2 25    Sec. 4.  Section 97A.6, subsection 6, paragraph b, Code
  2 26 1997, is amended to read as follows:
  2 27    b.  Upon retirement for accidental disability on or after
  2 28 July 1, 1990, but before July 1, 1998, a member shall receive
  2 29 an accidental disability retirement allowance which shall
  2 30 consist of a pension equal to sixty percent of the member's
  2 31 average final compensation.  However, if the member has had
  2 32 twenty-two or more years of membership service, the member
  2 33 shall receive a disability retirement allowance that is equal
  2 34 to the greater of the retirement allowance that the member
  2 35 would receive under subsection 2 if the member were fifty-five
  3  1 years of age or the disability retirement allowance calculated
  3  2 under this paragraph.
  3  3    Sec. 5.  Section 97A.6, subsection 6, Code 1997, is amended
  3  4 by adding the following new paragraph:
  3  5    NEW PARAGRAPH.  c.  Upon retirement for accidental
  3  6 disability on or after July 1, 1998, a member shall receive an
  3  7 accidental disability retirement allowance which shall consist
  3  8 of a pension in an amount equal to the greater of sixty
  3  9 percent of the member's average final compensation or the
  3 10 retirement allowance that the member would receive under
  3 11 subsection 2 if the member has attained fifty-five years of
  3 12 age.
  3 13    Sec. 6.  Section 97A.6, subsection 7, paragraph a,
  3 14 unnumbered paragraph 1, Code 1997, is amended to read as
  3 15 follows:
  3 16    Should any beneficiary for either ordinary or accidental
  3 17 disability, except a beneficiary who is fifty-five years of
  3 18 age or over and would have completed twenty-two years of
  3 19 service if the beneficiary had remained in active service, be
  3 20 engaged in a gainful occupation paying more than the
  3 21 difference between the member's net retirement allowance and
  3 22 one and one-half times the current earnable compensation of an
  3 23 active member at the same position on the salary scale within
  3 24 the member's rank as the member held at retirement, then the
  3 25 amount of the retirement allowance shall be reduced to an
  3 26 amount which together with such that the member's net
  3 27 retirement allowance plus the amount earned by the member
  3 28 shall equal one and one-half times the amount of the current
  3 29 earnable compensation of an active member at the same position
  3 30 on the salary scale within the member's rank as the member
  3 31 held at retirement.  Should the member's earning capacity be
  3 32 later changed, the amount of the retirement allowance may be
  3 33 further modified, provided that the new retirement allowance
  3 34 shall not exceed the amount of the retirement allowance
  3 35 originally granted adjusted by annual readjustments of
  4  1 pensions pursuant to subsection 14 of this section nor an
  4  2 amount which would cause the member's net retirement
  4  3 allowance, when added to the amount earned by the beneficiary,
  4  4 equals to equal one and one-half times the amount of the
  4  5 current earnable compensation of an active member at the same
  4  6 position on the salary scale within the member's rank as the
  4  7 member held at retirement.  A beneficiary restored to active
  4  8 service at a salary less than the average final compensation
  4  9 upon the basis of which the member was retired at age fifty-
  4 10 five or greater, shall not again become a member of the
  4 11 retirement system and shall have the member's retirement
  4 12 allowance suspended while in active service.  If the rank or
  4 13 position held by the retired member is subsequently abolished,
  4 14 adjustments to the allowable limit on the amount of income
  4 15 which can be earned in a gainful occupation shall be computed
  4 16 in the same manner as provided in subsection 14, paragraph
  4 17 "c", of this section for readjustment of pensions when a rank
  4 18 or position has been abolished.  If the salary scale
  4 19 associated with a member's rank at retirement is changed after
  4 20 the member retires, earnable compensation for purposes of this
  4 21 section shall be based upon the salary an active member
  4 22 currently would receive at the same rank and with seniority
  4 23 equal to that of the retired member at the time of retirement.
  4 24 For purposes of this paragraph, "net retirement allowance"
  4 25 means the amount determined by subtracting the amount paid
  4 26 during the previous calendar year by the beneficiary for
  4 27 health insurance or similar health care coverage for the
  4 28 beneficiary and the beneficiary's dependents from the amount
  4 29 of the member's retirement allowance paid for that year
  4 30 pursuant to this chapter.  The beneficiary shall submit
  4 31 sufficient documentation to the board of trustees to permit
  4 32 the system to determine the member's net retirement allowance
  4 33 for the applicable year.
  4 34    Sec. 7.  APPLICABILITY.  Section 6 of this Act, amending
  4 35 section 97A.6, subsection 7, paragraph "a", is applicable to
  5  1 amounts earned by a beneficiary after December 31, 1997.  
  5  2                           DIVISION II
  5  3            IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
  5  4    Sec. 8.  Section 97.51, subsection 8, Code 1997, is amended
  5  5 to read as follows:
  5  6    8.  Effective July 1, 1980, a person receiving benefits, or
  5  7 who becomes eligible to receive benefits, on or after July 1,
  5  8 1980, under this chapter, shall receive the monthly increase
  5  9 in benefits provided in section 97B.49, subsection 11 97B.49G,
  5 10 subsection 3, paragraph "a".
  5 11    There is appropriated from the general fund of the state to
  5 12 the Iowa old-age and survivors' insurance liquidation fund
  5 13 from funds not otherwise appropriated an amount sufficient to
  5 14 finance the provisions of this subsection.
  5 15    Sec. 9.  Section 97B.8, unnumbered paragraph 1, Code 1997,
  5 16 is amended to read as follows:
  5 17    A board is established to be known as the "Investment Board
  5 18 of the Iowa Public Employees' Retirement System", referred to
  5 19 in this chapter as the "board", whose duties are to establish
  5 20 policy for the department in matters relating to the
  5 21 investment of the trust funds of the Iowa public employees'
  5 22 retirement system.  At least annually the board shall review
  5 23 the investment policies and procedures used by the department
  5 24 under section 97B.7, subsection 2, paragraph "b", and shall
  5 25 hold a public meeting on the investment policies and
  5 26 investment performance of the fund.  Following its review and
  5 27 the public meeting, the board shall establish an investment
  5 28 policy and goal statement which shall direct the investment
  5 29 activities of the department.  The development of the
  5 30 investment policy and goal statement and its subsequent
  5 31 execution shall be performed cooperatively between the board
  5 32 and the department.  In addition to the reasons provided in
  5 33 section 21.5, subsection 1, the board may hold a closed
  5 34 session pursuant to the requirements of section 21.5 of that
  5 35 portion of an investment board meeting in which financial or
  6  1 commercial information is provided to or discussed by the
  6  2 board if the board determines that disclosure of such
  6  3 information could result in a loss to the system or to the
  6  4 provider of the information.
  6  5    Sec. 10.  Section 97B.9, Code 1997, is amended by adding
  6  6 the following new subsection:
  6  7    NEW SUBSECTION.  4.  Regardless of any potentially
  6  8 applicable statute of limitations, if the department finds
  6  9 that the employee or employer, or both, have erroneously
  6 10 underpaid contributions, the employer shall pay the employer's
  6 11 share of contributions and interest and the interest assessed
  6 12 to the employee's share of contributions.  The employee shall
  6 13 pay the employee's share of contributions to the employer, who
  6 14 shall then remit them to the department.  For purposes of
  6 15 section 1526 of the federal Taxpayer Relief Act of 1997,
  6 16 eligible participants, as defined by section 1526, may make
  6 17 payments of contributions under this section without regard to
  6 18 the limitations of section 415(c)(1) of the federal Internal
  6 19 Revenue Code.
  6 20    Sec. 11.  Section 97B.10, Code 1997, is amended to read as
  6 21 follows:
  6 22    97B.10  REFUNDS CREDITING OF ERRONEOUS CONTRIBUTIONS.
  6 23    1.  If the department finds the employee or employer, or
  6 24 both, have erroneously paid contributions, including the
  6 25 payment of contributions prior to an individual's valid
  6 26 decision to elect out of coverage under this chapter on or
  6 27 after January 1, 1999, pursuant to section 97B.42A, the
  6 28 department shall make an adjustment, compromise, or settlement
  6 29 and make a refund of shall credit such payments to the
  6 30 employee or employer, or both, as it finds just and equitable
  6 31 appropriate party.  Refunds so made shall be charged to the
  6 32 fund to which the erroneous collections have been credited and
  6 33 shall be paid to the employee or employer, or both, without
  6 34 interest.
  6 35    2.  A claim of an employee or employer for a refund credit
  7  1 for erroneously paid contributions shall be made within three
  7  2 years of date of payment.  However, the department may make
  7  3 refund payments issue a credit to employees or employers after
  7  4 the expiration of the three-year deadline if the department
  7  5 finds that the payment of the refund issuing the credit is
  7  6 just and equitable.
  7  7    3.  Except as provided in this subsection, interest shall
  7  8 not be paid on credits issued pursuant to this section.
  7  9 However, if a credit for contributions paid prior to an
  7 10 individual's decision to elect out of coverage pursuant to
  7 11 section 97B.42A is issued, accumulated interest and interest
  7 12 on dividends as provided in section 97B.70 shall apply.  In
  7 13 addition, the department may, at any time, apply accumulated
  7 14 interest and interest dividends as provided in section 97B.70
  7 15 on any credits issued under this section if the department
  7 16 finds that the crediting of interest is just and equitable.
  7 17    Sec. 12.  Section 97B.11, unnumbered paragraph 1, Code
  7 18 1997, is amended to read as follows:
  7 19    Each employer shall deduct from the wages of each member of
  7 20 the system a contribution in the amount of three and seven-
  7 21 tenths percent of the covered wages paid by the employer,
  7 22 until the member's termination or retirement from employment,
  7 23 whichever is earlier.  The contributions of the employer shall
  7 24 be in the amount of five and seventy-five hundredths percent
  7 25 of the covered wages of the member.
  7 26    Sec. 13.  Section 97B.13, Code 1997, is amended to read as
  7 27 follows:
  7 28    97B.13  NO INCOME TAX DEDUCTION.
  7 29    For the purposes of the state income tax, the contribution
  7 30 required by this chapter shall not be allowed as a deduction
  7 31 to the taxpayer in computing the taxpayer's net income for any
  7 32 year in which such tax contribution is deducted from the
  7 33 taxpayer's wages.
  7 34    Sec. 14.  Section 97B.17, unnumbered paragraph 1, Code
  7 35 1997, is amended to read as follows:
  8  1    The department shall establish and maintain records of each
  8  2 member, including but not limited to, the amount of wages of
  8  3 each member, the contribution of each member with interest,
  8  4 and interest dividends credited.  The records may be
  8  5 maintained in paper, magnetic, or electronic form, including
  8  6 optical disk storage.  These records are the basis for the
  8  7 compilation of the retirement benefits provided under this
  8  8 chapter.  The following records maintained under this chapter
  8  9 containing personal identifiable information are not public
  8 10 records for the purposes of chapter 22:
  8 11    1.  Records containing social security numbers.
  8 12    2.  Records listing designated beneficiaries.
  8 13    3.  Records specifying amounts accumulated in members'
  8 14 active accounts.
  8 15    4. 3.  Records containing names, or addresses, and amounts
  8 16 of monthly benefits to which of members or their beneficiaries
  8 17 are entitled.
  8 18    5. 4.  Records containing names, addresses, and amounts of
  8 19 lump sum refund payments to terminated members or their
  8 20 beneficiaries.
  8 21    5.  Records containing financial or commercial information
  8 22 that relates to the investment of system funds if the
  8 23 disclosure of such information could result in a loss to the
  8 24 system or to the provider of the information.
  8 25    Sec. 15.  Section 97B.19, Code 1997, is amended to read as
  8 26 follows:
  8 27    97B.19  REVISION FOR ERROR.
  8 28    If, prior to the expiration of six months following the
  8 29 delivery of such the statement provided in section 97B.18, it
  8 30 is brought to the attention of the department that any entry
  8 31 of such wages in such its records is erroneous, or that any
  8 32 item of such wages has been omitted from the records, the
  8 33 department may correct such the entry or include such the
  8 34 omitted item in its records, as the case may be.  Written
  8 35 notice of any revision of any such entry which is adverse to
  9  1 the interest of any individual shall be given to such the
  9  2 individual in any case where such the individual has
  9  3 previously been notified by the department of the amount of
  9  4 wages and of the period of payments shown by such the entry.
  9  5 Upon request in writing made prior to the expiration of six
  9  6 months immediately following the giving of the statement
  9  7 provided for in section 97B.18, the department shall afford
  9  8 any individual, or after the individual's death shall afford
  9  9 the individual's beneficiary or any other person so entitled
  9 10 in the judgment of the department, reasonable notice and
  9 11 opportunity for hearing with respect to any entry or alleged
  9 12 omission of wages of such the individual in such record, or
  9 13 any revision of any such entry.  If a hearing is held, the
  9 14 department shall make findings of fact and a decision based
  9 15 upon the evidence adduced at such the hearing and shall revise
  9 16 its records accordingly.  Judicial review of action of the
  9 17 department under this section and section 97B.20 may be sought
  9 18 in accordance with the terms of the Iowa administrative
  9 19 procedure Act and section 97B.29.
  9 20    Sec. 16.  Section 97B.25, Code 1997, is amended to read as
  9 21 follows:
  9 22    97B.25  APPLICATIONS FOR BENEFITS.
  9 23    A representative designated by the chief benefits officer
  9 24 and referred to in this chapter as a retirement benefits
  9 25 specialist shall promptly examine applications for retirement
  9 26 benefits and on the basis of facts found shall determine
  9 27 whether or not the claim is valid and if.  If the claim is
  9 28 valid, the retirement benefits specialist shall send a
  9 29 notification to the member stating the option the member has
  9 30 selected pursuant to sections 97B.49A through 97B.49G, as
  9 31 applicable, or section 97B.51, the month with respect to which
  9 32 benefits shall commence, and the monthly benefit amount
  9 33 payable, and the maximum duration.  The If the claim is
  9 34 invalid, the retirement benefits specialist shall promptly
  9 35 notify the applicant and any other interested party of the
 10  1 decision and the reasons.  Unless the applicant or other
 10  2 interested party, within thirty calendar days after the
 10  3 notification was mailed to the applicant's or party's last
 10  4 known address, files an appeal as provided in section 97B.20A,
 10  5 the decision is final and benefits shall be paid or denied in
 10  6 accord with the decision.  A retirement application shall not
 10  7 be amended or revoked by the member once the first retirement
 10  8 allowance is paid.  A member's death during the first month of
 10  9 entitlement shall not invalidate an approved application.
 10 10    Sec. 17.  Section 97B.40, Code 1997, is amended to read as
 10 11 follows:
 10 12    97B.40  FRAUD.
 10 13    1.  Whoever, A person shall be guilty of a fraudulent
 10 14 practice if the person makes, or causes to be made, any false
 10 15 statement or representation for the purpose of causing an
 10 16 increase in any payment authorized to be made under this
 10 17 chapter, or for the purpose of causing any payment to be made
 10 18 where no payment is authorized under this chapter, shall
 10 19 willfully make or cause to be made any for the purpose of
 10 20 obtaining confidential information from the department, or for
 10 21 any other unlawful purpose related to this chapter.
 10 22    2.  For purposes of this section, "any false statement or
 10 23 representation" includes the following:
 10 24    a.  Any false statement or representation willfully made or
 10 25 caused to be made as to the amount of any wages paid or
 10 26 received for the period during which earned or unpaid, knowing
 10 27 it to be false or whoever makes or causes to be made any.
 10 28    b.  Any false statement of a material fact made or caused
 10 29 to be made knowing it to be false in any application for any
 10 30 payment under this chapter, or whoever willfully makes or
 10 31 causes to be made any.
 10 32    c.  Any false statement, representation, affidavit, or
 10 33 document willfully made, presented, or caused to be made in
 10 34 connection with such an application for any payment under this
 10 35 chapter knowing them it to be false, shall be guilty of a
 11  1 fraudulent practice.
 11  2    d.  Any unauthorized use of any security devices, such as
 11  3 personal identification codes, utilized for the purpose of
 11  4 accessing information from the department.
 11  5    Sec. 18.  Section 97B.41, subsection 6, Code 1997, is
 11  6 amended to read as follows:
 11  7    6.  "Bona fide retirement" means a retirement by a vested
 11  8 member which meets the requirements of section 97B.52A,
 11  9 subsection 1, and in which the member is eligible to receive
 11 10 benefits under this chapter.
 11 11    Sec. 19.  Section 97B.41, subsection 8, Code 1997, is
 11 12 amended by striking the subsection and inserting in lieu
 11 13 thereof the following:
 11 14    8.  "Employee" means an individual who is employed as
 11 15 defined in this chapter for whom coverage under this chapter
 11 16 is mandatory.
 11 17    a.  "Employee" shall also include any of the following
 11 18 individuals who do not elect out of coverage under this
 11 19 chapter pursuant to section 97B.42A:
 11 20    (1)  Elective officials in positions for which the
 11 21 compensation is on a fee basis, elective officials of school
 11 22 districts, elective officials of townships, and elective
 11 23 officials of other political subdivisions who are in part-time
 11 24 positions.  An elective official covered under this chapter
 11 25 may terminate membership under this chapter by informing the
 11 26 department in writing of the expiration of the member's term
 11 27 of office.  A county attorney is an employee for purposes of
 11 28 this chapter whether that county attorney is employed on a
 11 29 full-time or part-time basis.
 11 30    (2)  Members of the general assembly of Iowa and temporary
 11 31 employees of the general assembly of Iowa.  A member of the
 11 32 general assembly covered under this chapter may terminate
 11 33 membership under this chapter by informing the department in
 11 34 writing of the member's intent to terminate membership.
 11 35    Temporary employees of the general assembly covered under
 12  1 this chapter may terminate membership by sending written
 12  2 notification to the department of their separation from
 12  3 service.
 12  4    (3)  Nonvested employees of drainage and levee districts.
 12  5    (4)  Employees of a community action program determined to
 12  6 be an instrumentality of the state or a political subdivision.
 12  7    (5)  Magistrates.
 12  8    (6)  Persons employed under the federal Job Training
 12  9 Partnership Act of 1982, Pub. L. No. 97-300.
 12 10    (7)  Members of the ministry, rabbinate, or other religious
 12 11 order who have taken the vow of poverty.
 12 12    (8)  Persons employed as city managers, or as city
 12 13 administrators performing the duties of city managers, under a
 12 14 form of city government listed in chapter 372 or chapter 420.
 12 15    (9)  Members of the state transportation commission, the
 12 16 board of parole, and the state health facilities council.
 12 17    (10)  Employees appointed by the state board of regents who
 12 18 do not elect coverage in a retirement system qualified by the
 12 19 state board of regents that meets the criteria of section
 12 20 97B.2.
 12 21    (11)  Persons employed by the board of trustees for the
 12 22 statewide fire and police retirement system established in
 12 23 section 411.36.
 12 24    b.  "Employee" does not mean the following individuals:
 12 25    (1)  Individuals who are enrolled as students and whose
 12 26 primary occupations are as students who are incidentally
 12 27 employed by employers.
 12 28    (2)  Graduate medical students while serving as interns or
 12 29 resident doctors in training at any hospital, or county
 12 30 medical examiners and deputy county medical examiners under
 12 31 chapter 331, division V, part 8.
 12 32    (3)  Employees hired for temporary employment of less than
 12 33 six months or one thousand forty hours in a calendar year.  An
 12 34 employee who works for an employer for six or more months in a
 12 35 calendar year or who works for an employer for more than one
 13  1 thousand forty hours in a calendar year is not a temporary
 13  2 employee under this subparagraph.  Adjunct instructors are
 13  3 temporary employees for the purposes of this chapter.  As used
 13  4 in this section, unless the context otherwise requires,
 13  5 "adjunct instructors" means instructors employed by a
 13  6 community college or a university governed by the state board
 13  7 of regents without a continuing contract, whose teaching load
 13  8 does not exceed one-half time for two full semesters or three
 13  9 full quarters per calendar year.
 13 10    (4)  Foreign exchange teachers and visitors including alien
 13 11 scholars, trainees, professors, teachers, research assistants,
 13 12 and specialists in their field of specialized knowledge or
 13 13 skill.
 13 14    (5)  Employees of the Iowa dairy industry commission
 13 15 established under chapter 179, the Iowa beef cattle producers
 13 16 association established under chapter 181, the Iowa pork
 13 17 producers council established under chapter 183A, the Iowa
 13 18 turkey marketing council established under chapter 184A, the
 13 19 Iowa soybean promotion board established under chapter 185,
 13 20 the Iowa corn promotion board established under chapter 185C,
 13 21 and the Iowa egg council established under chapter 196A.
 13 22    (6)  Judicial hospitalization referees appointed under
 13 23 section 229.21.
 13 24    (7)  Employees of an area agency on aging, if as of July 1,
 13 25 1994, the agency provides for participation by all of its
 13 26 employees in an alternative qualified plan pursuant to the
 13 27 requirements of the federal Internal Revenue Code.
 13 28    (8)  Persons employed through any program described in
 13 29 section 84A.7 and provided by the Iowa conservation corps.
 13 30    8A.  "Employer" means the state of Iowa, the counties,
 13 31 municipalities, agencies, public school districts, all
 13 32 political subdivisions, and all of their departments and
 13 33 instrumentalities, including area agencies on aging, other
 13 34 than those employing persons as specified in subsection 8,
 13 35 paragraph "b", subparagraph (7), and joint planning
 14  1 commissions created under chapter 28E or 28I.
 14  2    If an interstate agency is established under chapter 28E
 14  3 and similar enabling legislation in an adjoining state, and an
 14  4 employer had made contributions to the system for employees
 14  5 performing functions which are transferred to the interstate
 14  6 agency, the employees of the interstate agency who perform
 14  7 those functions shall be considered to be employees of the
 14  8 employer for the sole purpose of membership in the system,
 14  9 although the employer contributions for those employees are
 14 10 made by the interstate agency.
 14 11    Sec. 20.  Section 97B.41, subsection 14, Code 1997, is
 14 12 amended to read as follows:
 14 13    14.  "Membership service" means service rendered by a
 14 14 member after July 4, 1953.  Years of membership service shall
 14 15 be counted to the complete quarter calendar year.  However,
 14 16 membership service for a calendar year shall not include more
 14 17 than four quarters.  In determining a member's period of
 14 18 membership service, the department shall combine all periods
 14 19 of service for which the member has made contributions.  If
 14 20 the department has not maintained the accumulated contribution
 14 21 account of the member for a period of service, as provided
 14 22 pursuant to section 97B.53, subsection 6, the department shall
 14 23 credit the member for the service if the member submits
 14 24 satisfactory proof to the department that the member did make
 14 25 the contributions for the period of service and did not take a
 14 26 refund for the period of service.
 14 27    Sec. 21.  Section 97B.41, subsection 19, Code 1997, is
 14 28 amended to read as follows:
 14 29    19.  "Service" means uninterrupted service under this
 14 30 chapter by an employee, except an elected official, from the
 14 31 date the employee last entered employment of the employer
 14 32 until the date the employee's employment shall be terminated
 14 33 by death, retirement, resignation or discharge; provided,
 14 34 however, the service of any employee shall not be deemed to be
 14 35 interrupted by for which the employee is paid covered wages.
 15  1 Service shall also mean the following:
 15  2    a.  Service in the armed forces of the United States, if
 15  3 the employee was employed by the a covered employer
 15  4 immediately prior to entry into the armed forces, and if the
 15  5 employee was released from service and returns to covered
 15  6 employment with the an employer within twelve months of the
 15  7 date on which the employee has the right of release from
 15  8 service or within a longer period as required by the
 15  9 applicable laws of the United States.
 15 10    b.  Leave of absence or vacation authorized by the employer
 15 11 prior to July 1, 1998, for a period not exceeding twelve
 15 12 months and ending no later than July 1, 1999.
 15 13    c.  A leave of absence authorized pursuant to the
 15 14 requirements of the federal Family and Medical Leave Act of
 15 15 1993 is considered a leave of absence authorized by the
 15 16 employer, or other similar leave authorized by the employer
 15 17 for a period not to exceed twelve weeks in any calendar year.
 15 18    c.  The termination at the end of the school year of the
 15 19 contract of employment of an employee in the public schools of
 15 20 the state of Iowa, provided the employee enters into a further
 15 21 contract of employment in the public schools of the state of
 15 22 Iowa for the next succeeding school year.
 15 23    d.  Temporary or seasonal interruptions in service such as
 15 24 service of school bus drivers, schoolteachers under regular
 15 25 contract, interim teachers or substitute teachers, instructors
 15 26 at Iowa state university of science and technology, the state
 15 27 university of Iowa, or university of northern Iowa, employees
 15 28 in state schools or hospital dormitories, other positions for
 15 29 employees of a school corporation or educational institution
 15 30 when the temporary suspension of service does not terminate
 15 31 the period of employment of the employee, or temporary
 15 32 employees of the general assembly and the employee returns to
 15 33 service at a school corporation or educational institution
 15 34 upon the end of the temporary or seasonal interruption.
 15 35    Sec. 22.  Section 97B.41, subsection 21, Code 1997, is
 16  1 amended to read as follows:
 16  2    21.  "Special service" means service for an employer while
 16  3 employed in a protection occupation as provided in section
 16  4 97B.49, subsection 16, paragraph "a" 97B.49B, and as a county
 16  5 sheriff, deputy sheriff, or airport fire fighter as provided
 16  6 in section 97B.49, subsection 16, paragraph "b" 97B.49C.
 16  7    Sec. 23.  Section 97B.41, subsection 23, paragraph a, Code
 16  8 1997, is amended to read as follows:
 16  9    a.  "Three-year average covered wage" means a member's
 16 10 covered wages averaged for the highest three years of the
 16 11 member's service, except as otherwise provided in this
 16 12 subsection.  The highest three years of a member's covered
 16 13 wages shall be determined using calendar years.  However, if a
 16 14 member's final quarter of a year of employment does not occur
 16 15 at the end of a calendar year, the department may determine
 16 16 the wages for the third year by computing the average quarter
 16 17 of all quarters from the member's highest calendar year of
 16 18 covered wages not being used in the selection of the two
 16 19 highest years and using the computed average quarter for each
 16 20 quarter in the third year in which no wages have been reported
 16 21 in combination with the final quarter or quarters of the
 16 22 member's service to create a full year.  However, the
 16 23 department shall not use the member's final quarter of wages
 16 24 if using that quarter would reduce the member's three-year
 16 25 average covered wage.  If the three-year average covered wage
 16 26 of a member exceeds the highest maximum covered wages in
 16 27 effect for a calendar year during the member's period of
 16 28 service, the three-year average covered wage of the member
 16 29 shall be reduced to the highest maximum covered wages in
 16 30 effect during the member's period of service.  Notwithstanding
 16 31 any other provision of this paragraph to the contrary, a
 16 32 member's wages for the third year as computed by this
 16 33 paragraph shall not exceed, by more than three percent, the
 16 34 member's highest actual calendar year of covered wages for a
 16 35 member whose first month of entitlement is January 1999 or
 17  1 later.
 17  2    Sec. 24.  Section 97B.41, subsection 25, paragraph b,
 17  3 subparagraph (17), unnumbered paragraph 2, Code 1997, is
 17  4 amended to read as follows:
 17  5    Notwithstanding any other provision of this chapter
 17  6 providing for the payment of the benefits provided in section
 17  7 97B.49, subsection 16 or 17 97B.49B, 97B.49C, 97B.49D, or
 17  8 97B.49G, the department shall establish the covered wages
 17  9 limitation which applies to members covered under section
 17 10 97B.49, subsection 16 or 17 97B.49B, 97B.49C, 97B.49D, or
 17 11 97B.49G, at the same level as is established under this
 17 12 subparagraph for other members of the system.
 17 13    Sec. 25.  Section 97B.42A, Code 1997, is amended by
 17 14 striking the section and inserting in lieu thereof the
 17 15 following:
 17 16    97B.42A  OPTIONAL EXCLUSION FROM MEMBERSHIP.
 17 17    1.  Commencing January 1, 1999, a person who is newly hired
 17 18 in a position as an employee, as defined in section 97B.1A,
 17 19 subsection 8, paragraph "a", shall be covered under this
 17 20 chapter unless the person files an application with
 17 21 appropriate documentation to the department within sixty days
 17 22 of employment in the position to affirmatively elect out of
 17 23 coverage.  A decision to elect out of coverage under this
 17 24 chapter is irrevocable upon approval from the system.
 17 25    2.  If a person elects out of coverage pursuant to this
 17 26 section, the period of time from the date on which the person
 17 27 was newly hired until the date the person's election out of
 17 28 coverage is effective shall not constitute service for
 17 29 purposes of coverage under this chapter.  In addition, a wage
 17 30 adjustment shall be processed for the person based on any
 17 31 contributions collected pursuant to this chapter during that
 17 32 period of time and shall be credited pursuant to section
 17 33 97B.10.
 17 34    3.  A person who is employed in a position as an employee
 17 35 as defined in section 97B.1A, subsection 8, paragraph "a", on
 18  1 January 1, 1999, and who has not elected coverage under this
 18  2 chapter prior to that date and is not an active member of
 18  3 another retirement system in the state which is maintained in
 18  4 whole or in part by public contributions or payments, shall
 18  5 begin coverage under the system on January 1, 1999, unless the
 18  6 person files an application with appropriate documentation
 18  7 with the department to elect out of coverage on or before
 18  8 January 1, 2000.  If a person elects out of coverage, the
 18  9 period of time from January 1, 1999, until the date the
 18 10 person's election out of coverage is effective shall not
 18 11 constitute service for purposes of coverage under this chapter
 18 12 and a wage adjustment shall be processed for the person based
 18 13 on any contributions collected pursuant to this chapter during
 18 14 that period of time and shall be credited pursuant to section
 18 15 97B.10.  A decision to elect out of coverage under this
 18 16 chapter pursuant to this section is irrevocable upon approval
 18 17 from the department.
 18 18    4.  A person who becomes a member of the system pursuant to
 18 19 subsection 3, or who is a member of the system, may purchase
 18 20 credit, pursuant to section 97B.73, for one or more quarters
 18 21 of service prior to January 1, 1999, in which the person was
 18 22 employed in a position as described in section 97B.1A,
 18 23 subsection 8, paragraph "a", but was not a member of the
 18 24 system.
 18 25    Sec. 26.  Section 97B.43, unnumbered paragraph 2, Code
 18 26 1997, is amended to read as follows:
 18 27    Any person with a record of thirty years as a public
 18 28 employee in the state of Iowa prior to July 1, 1947, and who
 18 29 is not eligible for prior service credit under other
 18 30 provisions of this section, is entitled to a credit for years
 18 31 of prior service in the determination of the retirement
 18 32 allowance payment under this chapter, provided the public
 18 33 employee makes application to the department of personnel for
 18 34 credit for prior public service, accompanied by verification
 18 35 of the person's claim as the department may require.  The
 19  1 person's allowance for prior service credits shall be computed
 19  2 in the same manner as otherwise provided in this section, but
 19  3 shall not exceed the sum of four hundred fifty dollars nor be
 19  4 less than three hundred dollars per annum.  Any such person is
 19  5 entitled to receive retirement allowances computed as provided
 19  6 by this chapter, effective from the date of application to the
 19  7 department, provided such application is approved.  However,
 19  8 beginning July 1, 1975, the amount of such person's retirement
 19  9 allowance payment received during June 1975, as computed under
 19 10 this section shall be increased by two hundred percent and the
 19 11 allowance for prior service credits shall not exceed one
 19 12 thousand three hundred fifty dollars nor be less than nine
 19 13 hundred dollars per annum.  Effective July 1, 1987, there is
 19 14 appropriated for each fiscal year from the Iowa public
 19 15 employees' retirement fund created in section 97B.7 to the
 19 16 department of personnel an amount sufficient to fund the
 19 17 retirement allowance increases paid under this paragraph.
 19 18 Effective July 1, 1980, a person with a record of thirty years
 19 19 as a public employee in the state of Iowa prior to July 1,
 19 20 1947, receiving retirement allowances under this chapter shall
 19 21 receive the monthly increase in benefits provided in section
 19 22 97B.49, subsection 11 97B.49G, subsection 3, paragraph "a".
 19 23    Sec. 27.  Section 97B.45, subsections 1, 2, 3, and 4, Code
 19 24 1997, are amended to read as follows:
 19 25    1.  The first of the month in which a member attains the
 19 26 age of sixty-five years if the member has not completed thirty
 19 27 twenty years of membership service.
 19 28    2.  The first of the month in which the member attains the
 19 29 age of sixty-two years if the member has completed thirty
 19 30 twenty years of membership service.
 19 31    3.  The first of any month in which the member has
 19 32 completed thirty twenty years of membership service if the
 19 33 member has attained the age of sixty-two years but is not yet
 19 34 sixty-five years of age.
 19 35    4.  The first of any month in which a member meets the
 20  1 membership service and age requirements to retire under
 20  2 section 97B.49, subsection 15 the member is at least fifty-
 20  3 five years of age and for which the sum of the number of years
 20  4 of membership service and prior service and the member's age
 20  5 in years as of the member's last birthday equals or exceeds
 20  6 eighty-eight.
 20  7    Sec. 28.  Section 97B.46, subsection 2, Code 1997, is
 20  8 amended by striking the subsection.
 20  9    Sec. 29.  Section 97B.46, subsection 3, Code 1997, is
 20 10 amended to read as follows:
 20 11    3.  A member remaining in service after attaining the age
 20 12 of seventy years is entitled to receive a retirement allowance
 20 13 under section 97B.49 sections 97B.49A through 97B.49H, as
 20 14 applicable, commencing with payment for the calendar month
 20 15 within which the written notice is submitted to the
 20 16 department, except that if the member fails to submit the
 20 17 notice on a timely basis, retroactive payments shall be made
 20 18 for no more than six months immediately preceding the month in
 20 19 which the written notice is submitted.
 20 20    Sec. 30.  Section 97B.48, subsection 3, Code 1997, is
 20 21 amended to read as follows:
 20 22    3.  As of the first of the month in which a member attains
 20 23 the age of seventy years, the department shall provide written
 20 24 notification to the member that the member may commence
 20 25 receiving a retirement allowance regardless of the member's
 20 26 employment status.  Upon termination from employment of a
 20 27 member receiving a retirement allowance pursuant to this
 20 28 subsection, the member is entitled to have the member's
 20 29 monthly retirement allowance recalculated using the applicable
 20 30 formula for determining a retirement allowance pursuant to
 20 31 sections 97B.49A through 97B.49G, as applicable, in place at
 20 32 the time of the member's first month of entitlement.
 20 33    Sec. 31.  Section 97B.48, Code 1997, is amended by adding
 20 34 the following new subsections:
 20 35    NEW SUBSECTION.  4.  Payment of a member's retirement
 21  1 allowance pursuant to sections 97B.49A through 97B.49H shall
 21  2 commence no later than the required beginning date specified
 21  3 under section 401(a)(9) of the federal Internal Revenue Code
 21  4 regardless of whether the member has submitted the appropriate
 21  5 notice to receive an allowance.  If the lump sum actuarial
 21  6 equivalent under section 97B.48, subsection 1, could have been
 21  7 selected by the member, payments shall be made in a lump sum
 21  8 rather than as a monthly allowance.
 21  9    NEW SUBSECTION.  5.  In the event that all, or any portion,
 21 10 of the retirement allowance payable to a member pursuant to
 21 11 subsection 4 shall remain unpaid solely by reason of the
 21 12 inability of the department to locate the member, the amounts
 21 13 payable shall be forfeited.  If the member is located after
 21 14 the amounts payable are forfeited, the amounts payable shall
 21 15 be restored.
 21 16    Sec. 32.  Section 97B.48A, subsection 1, unnumbered
 21 17 paragraph 1, Code 1997, is amended to read as follows:
 21 18    If a member who has not reached the member's sixty-fifth
 21 19 birthday and who has a bona fide retirement under this chapter
 21 20 is in regular full-time employment during a calendar year, the
 21 21 member's retirement allowance shall be reduced by fifty cents
 21 22 for each dollar the member earns over the limit provided in
 21 23 this subsection.  However, employment is not full-time
 21 24 employment until the member receives remuneration in an amount
 21 25 in excess of seven twelve thousand four hundred forty dollars
 21 26 for a calendar year, or an amount equal to the amount of
 21 27 remuneration permitted for a calendar year for persons under
 21 28 sixty-five years of age before a reduction in federal social
 21 29 security retirement benefits is required, whichever is higher.
 21 30 Effective the first of the month in which a member attains the
 21 31 age of sixty-five years, a retired member may receive a
 21 32 retirement allowance without a reduction after return to
 21 33 covered employment regardless of the amount of remuneration
 21 34 received.
 21 35    Sec. 33.  Section 97B.48A, subsection 3, Code 1997, is
 22  1 amended to read as follows:
 22  2    3.  Upon a retirement after reemployment, a retired member
 22  3 may have the retired member's retirement allowance
 22  4 redetermined under this section or section 97B.49 or 97B.48,
 22  5 97B.49A through 97B.49H, 97B.50, or 97B.51, whichever is
 22  6 applicable, based upon the addition of credit for the years of
 22  7 membership service of the employee after reemployment, the
 22  8 covered wage during reemployment, and the age of the employee
 22  9 after reemployment.  The member shall receive a single
 22 10 retirement allowance calculated from both periods of
 22 11 membership service, one based on the initial retirement and
 22 12 one based on the second retirement following reemployment.  If
 22 13 the total years of membership service and prior service of a
 22 14 member who has been reemployed equals or exceeds thirty, the
 22 15 years of membership service on which the original retirement
 22 16 allowance was based may be reduced by a fraction of the years
 22 17 of service equal to the number of years by which the total
 22 18 years of membership service and prior service exceeds thirty
 22 19 divided by thirty, if this reduction in years of service will
 22 20 increase the total retirement allowance of the member.  The
 22 21 additional retirement allowance calculated for the period of
 22 22 reemployment shall be added to the retirement allowance
 22 23 calculated for the initial period of membership service and
 22 24 prior service, adjusted as provided in this subsection.  The
 22 25 retirement allowance calculated for the initial period of
 22 26 membership service and prior service shall not be adjusted for
 22 27 any other factor than years of service.  The retired member
 22 28 shall not receive a retirement allowance based upon more than
 22 29 a total of thirty years of service.  Effective July 1, 1998, a
 22 30 redetermination of a retirement allowance as authorized by
 22 31 this subsection for a retired member whose combined service
 22 32 exceeds the applicable years of service for that member as
 22 33 provided in sections 97B.49A through 97B.49G shall have the
 22 34 determination of the member's reemployment benefit based upon
 22 35 the percentage multiplier as determined for that member as
 23  1 provided in sections 97B.49A through 97B.49G.
 23  2    Sec. 34.  Section 97B.48A, subsection 4, Code 1997, is
 23  3 amended to read as follows:
 23  4    4.  The department shall pay to the member the accumulated
 23  5 contributions of the member and to the employer the employer
 23  6 contributions, plus interest plus interest dividends as
 23  7 provided in section 97B.70, for all completed calendar years,
 23  8 compounded as provided in section 97B.70, on the covered wages
 23  9 earned by a retired member that are not used in the
 23 10 recalculation of the retirement allowance of a member.
 23 11    Sec. 35.  NEW SECTION.  97B.49A  MONTHLY PAYMENTS OF
 23 12 ALLOWANCE – GENERAL CALCULATION.
 23 13    1.  DEFINITIONS.  For the purposes of this section:
 23 14    a.  "Applicable percentage" means sixty percent or, for
 23 15 each active or inactive vested member retiring on or after
 23 16 July 1, 1996, sixty percent plus, if applicable, an additional
 23 17 one-fourth of one percentage point for each additional
 23 18 calendar quarter of membership and prior service beyond thirty
 23 19 years of service, not to exceed a total of five additional
 23 20 percentage points.
 23 21    b.  "Fraction of years of service" means a number, not to
 23 22 exceed one, equal to the sum of the years of membership
 23 23 service and the number of years of prior service divided by
 23 24 thirty years.
 23 25    2.  ENTITLEMENT TO MONTHLY ALLOWANCE.  Each member, upon
 23 26 retirement on or after the member's normal retirement date, is
 23 27 entitled to receive a monthly retirement allowance determined
 23 28 under this section.  For an inactive vested member the monthly
 23 29 retirement allowance shall be determined on the basis of this
 23 30 section and section 97B.50 as they are in effect on the date
 23 31 of the member's retirement.
 23 32    3.  CALCULATION OF MONTHLY ALLOWANCE.  For each active or
 23 33 inactive vested member retiring on or after July 1, 1994, with
 23 34 four or more complete years of service, a monthly benefit
 23 35 shall be computed which is equal to one-twelfth of an amount
 24  1 equal to the applicable percentage of the three-year average
 24  2 coverage wage multiplied by a fraction of years of service.
 24  3 However, if benefits under this section commence on an early
 24  4 retirement date, the amount of the benefit shall be reduced in
 24  5 accordance with section 97B.50.
 24  6    4.  ALTERNATIVE CALCULATIONS.
 24  7    a.  For each active member employed before January 1, 1976,
 24  8 and retiring on or after January 1, 1976, and for each member
 24  9 who was a vested member before January 1, 1976, with four or
 24 10 more complete years of service, a formula benefit shall be
 24 11 determined equal to the larger of the benefit determined under
 24 12 this paragraph and paragraph "b" of this subsection, as
 24 13 applicable, the benefit determined under subsection 3, or the
 24 14 benefit determined under section 97B.49G, subsection 1.  The
 24 15 amount of the monthly formula benefit for each such active or
 24 16 vested member who retired on or after January 1, 1976, shall
 24 17 be equal to one-twelfth of one and fifty-seven hundredths
 24 18 percent per year of membership service multiplied by the
 24 19 member's average annual covered wages.  In no case shall the
 24 20 amount of monthly formula benefit accrued for membership
 24 21 service prior to July 1, 1967, be less than the monthly
 24 22 annuity at the normal retirement date determined by applying
 24 23 the sum of the member's accumulated contributions, the
 24 24 member's employer's accumulated contributions on or before
 24 25 June 30, 1967, and any retirement dividends standing to the
 24 26 member's credit on or before December 31, 1966, to the annuity
 24 27 tables in use by the department with due regard to the
 24 28 benefits payable from such accumulated contributions under
 24 29 sections 97B.52 and 97B.53.
 24 30    b.  For each member employed before January 1, 1976, who
 24 31 has qualified for prior service credit in accordance with the
 24 32 first paragraph of section 97B.43, a formula benefit shall be
 24 33 determined equal to the larger of the benefit determined under
 24 34 this paragraph, and paragraph "a" of this subsection, as
 24 35 applicable, the benefit determined under subsection 3, or the
 25  1 benefit determined under section 97B.49G, subsection 1.  The
 25  2 amount of the monthly formula benefit under this paragraph
 25  3 shall be equal to eight-tenths of one percent per year of
 25  4 prior service credit multiplied by the monthly rate of the
 25  5 member's total remuneration not in excess of three thousand
 25  6 dollars annually during the twelve consecutive months of the
 25  7 member's prior service for which that total remuneration was
 25  8 the highest.  An additional three-tenths of one percent of the
 25  9 remuneration not in excess of three thousand dollars annually
 25 10 shall be payable for prior service during each year in which
 25 11 the accrued liability for benefit payments created by the
 25 12 abolished system is funded by appropriation from the Iowa
 25 13 public employees' retirement fund.
 25 14    c.  For each active and vested member retiring with less
 25 15 than four complete years of service and who therefore cannot
 25 16 have a benefit determined under the formula benefit of
 25 17 paragraph "a" or "b" of this subsection, subsection 3, or
 25 18 section 97B.49G, subsection 1, a monthly annuity for
 25 19 membership service shall be determined by applying the
 25 20 member's accumulated contributions and the employer's matching
 25 21 accumulated contributions as of the effective retirement date
 25 22 and any retirement dividends standing to the member's credit
 25 23 on or before December 31, 1966, to the annuity tables in use
 25 24 by the department according to the member's age and contingent
 25 25 annuitant's age, if applicable.
 25 26    Sec. 36.  NEW SECTION.  97B.49B  PROTECTION OCCUPATION.
 25 27    1.  DEFINITIONS.  For purposes of this section:
 25 28    a.  "Applicable percentage" means sixty percent or, for
 25 29 each active or inactive vested member retiring on or after
 25 30 July 1, 1996, sixty percent plus, if applicable, an additional
 25 31 one-fourth of one percentage point for each additional
 25 32 calendar quarter of eligible service beyond twenty-five years
 25 33 of service, not to exceed a total of five additional
 25 34 percentage points.
 25 35    b.  "Eligible service" means membership and prior service
 26  1 in a protection occupation.  In addition, for a member with
 26  2 membership and prior service in a protection occupation
 26  3 described in paragraph "d", subparagraph (2), eligible service
 26  4 includes membership and prior service as a sheriff, deputy
 26  5 sheriff, or airport fire fighter as defined in section
 26  6 97B.49C.
 26  7    c.  "Fraction of years of service" means a number, not to
 26  8 exceed one, equal to the sum of the years of eligible service
 26  9 in a protection occupation divided by twenty-five years.
 26 10    d.  "Protection occupation" includes all of the following:
 26 11    (1)  A conservation peace officer employed under section
 26 12 456A.13.
 26 13    (2)  A marshal in a city not covered under chapter 400 or a
 26 14 fire fighter or police officer of a city not participating in
 26 15 the retirement systems established in chapter 410 or 411.
 26 16    (3)  A correctional officer or correctional supervisor
 26 17 employed by the Iowa department of corrections, and any other
 26 18 employee of that department whose primary purpose is, through
 26 19 ongoing direct inmate contact, to enforce and maintain
 26 20 discipline, safety, and security within a correctional
 26 21 facility.  The Iowa department of corrections and the
 26 22 personnel division of the department of personnel shall
 26 23 jointly determine which job classifications are covered under
 26 24 this subparagraph.
 26 25    (4)  An airport safety officer employed under chapter 400
 26 26 by an airport commission in a city of one hundred thousand
 26 27 population or more.
 26 28    (5)  An employee of the state department of transportation
 26 29 who is designated as a "peace officer" by resolution under
 26 30 section 321.477, but only if the employee retires on or after
 26 31 July 1, 1990.  For purposes of this subparagraph, service as a
 26 32 traffic weight officer employed by the highway commission
 26 33 prior to the creation of the state department of
 26 34 transportation or as a peace officer employed by the Iowa
 26 35 state commerce commission prior to the creation of the state
 27  1 department of transportation shall be included in computing
 27  2 the employee's years of membership service.
 27  3    (6)  A fire prevention inspector peace officer employed by
 27  4 the department of public safety prior to July 1, 1994, who
 27  5 does not elect coverage under the Iowa department of public
 27  6 safety peace officers' retirement, accident, and disability
 27  7 system, as provided in section 97B.42B.
 27  8    2.  CALCULATION OF MONTHLY ALLOWANCE.  Notwithstanding
 27  9 other provisions of this chapter, a member who is or has been
 27 10 employed in a protection occupation who retires on or after
 27 11 July 1, 1994, and at the time of retirement is at least fifty-
 27 12 five years of age may elect to receive, in lieu of the receipt
 27 13 of any benefits as calculated pursuant to section 97B.49A or
 27 14 97B.49D, a monthly retirement allowance equal to one-twelfth
 27 15 of an amount equal to the applicable percentage of the three-
 27 16 year average covered wage as a member who has been employed in
 27 17 a protection occupation multiplied by a fraction of years of
 27 18 service, with benefits payable during the member's lifetime.
 27 19    3.  ADDITIONAL CONTRIBUTIONS.
 27 20    a.  Annually, the department of personnel shall actuarially
 27 21 determine the cost of the additional benefits provided for
 27 22 members covered under this section as a percentage of the
 27 23 covered wages of the employees covered by this section.  Sixty
 27 24 percent of the cost shall be paid by the employers of
 27 25 employees covered under this section and forty percent of the
 27 26 cost shall be paid by the employees.  The employer and
 27 27 employee contributions required under this paragraph are in
 27 28 addition to the contributions paid under sections 97B.11 and
 27 29 97B.11A.
 27 30    b.  (1)  For the fiscal year commencing July 1, 1988, and
 27 31 each succeeding fiscal year, there is appropriated from the
 27 32 state fish and game protection fund to the department of
 27 33 personnel the amount necessary to pay the employer share of
 27 34 the cost of the additional benefits provided to employees
 27 35 covered under subsection 1, paragraph "d", subparagraph (1).
 28  1    (2)  Annually, during each fiscal year commencing with the
 28  2 fiscal year beginning July 1, 1988, each applicable city shall
 28  3 pay to the department of personnel the amount necessary to pay
 28  4 the employer share of the cost of the additional benefits
 28  5 provided to employees of that city covered under subsection 1,
 28  6 paragraph "d", subparagraphs (2) and (4).
 28  7    (3)  For the fiscal year commencing July 1, 1988, and each
 28  8 succeeding fiscal year, the department of corrections shall
 28  9 pay to the department of personnel from funds appropriated to
 28 10 the Iowa department of corrections, the amount necessary to
 28 11 pay the employer share of the cost of the additional benefits
 28 12 provided to employees covered under subsection 1, paragraph
 28 13 "d", subparagraph (3).
 28 14    (4)  For the fiscal year commencing July 1, 1990, and each
 28 15 succeeding fiscal year, the state department of transportation
 28 16 shall pay to the department of personnel, from funds
 28 17 appropriated to the state department of transportation from
 28 18 the road use tax fund and the primary road fund, the amount
 28 19 necessary to pay the employer share of the cost of the
 28 20 additional benefits provided to employees covered under
 28 21 subsection 1, paragraph "d", subparagraph (5).
 28 22    (5)  For the fiscal year commencing July 1, 1992, and each
 28 23 succeeding fiscal year, the department of public safety shall
 28 24 pay to the department of personnel from funds appropriated to
 28 25 the department of public safety, the amount necessary to pay
 28 26 the employer share of the cost of the additional benefits
 28 27 provided to a fire prevention inspector peace officer pursuant
 28 28 to subsection 1, paragraph "d", subparagraph (6).
 28 29    (6)  For the fiscal year commencing July 1, 1994, and each
 28 30 succeeding fiscal year, each judicial district department of
 28 31 correctional services shall pay to the department of personnel
 28 32 from funds appropriated to that judicial district department
 28 33 of correctional services, the amount necessary to pay the
 28 34 employer share of the cost of the additional benefits provided
 28 35 to employees covered under subsection 1, paragraph "d",
 29  1 subparagraph (7).
 29  2    Sec. 37.  NEW SECTION.  97B.49C  SHERIFFS, DEPUTY SHERIFFS,
 29  3 AND AIRPORT FIRE FIGHTERS.
 29  4    1.  DEFINITIONS.  For purposes of this section:
 29  5    a.  "Airport fire fighter" means an airport fire fighter
 29  6 employed by the military division of the department of public
 29  7 defense.
 29  8    b.  "Applicable percentage" means the greater of the
 29  9 following percentages:
 29 10    (1)  Sixty percent.
 29 11    (2)  For each active or inactive vested member retiring on
 29 12 or after July 1, 1996, and before July 1, 1998, sixty percent
 29 13 plus, if applicable, an additional one-fourth of one
 29 14 percentage point for each additional calendar quarter of
 29 15 eligible service beyond twenty-two years of service, not to
 29 16 exceed a total of five additional percentage points.
 29 17    (3)  For each active or inactive vested member retiring on
 29 18 or after July 1, 1998, sixty percent plus, if applicable, an
 29 19 additional three-eighths of one percentage point for each
 29 20 additional calendar quarter of eligible service beyond twenty-
 29 21 two years of service, not to exceed a total of twelve
 29 22 additional percentage points.
 29 23    c.  "Deputy sheriff" means a deputy sheriff appointed
 29 24 pursuant to section 341.1 prior to July 1, 1981, or section
 29 25 331.903 on or after July 1, 1981.
 29 26    d.  "Eligible service" means membership and prior service
 29 27 as an airport fire fighter, sheriff, and deputy sheriff under
 29 28 this section.  In addition, eligible service includes
 29 29 membership and prior service as a marshal in a city not
 29 30 covered under chapter 400 or a fire fighter or police officer
 29 31 of a city not participating in the retirement systems
 29 32 established in chapter 410 or 411, and as an airport fire
 29 33 fighter prior to July 1, 1994.
 29 34    e.  "Fraction of years of service" means a number, not to
 29 35 exceed one, equal to the sum of the years of eligible service
 30  1 under this section divided by twenty-two years.
 30  2    f.  "Sheriff" means a county sheriff as defined in section
 30  3 39.17.
 30  4    2.  CALCULATION OF MONTHLY ALLOWANCE.  Notwithstanding
 30  5 other provisions of this chapter, a member who retires from
 30  6 employment as a sheriff, deputy sheriff, or airport fire
 30  7 fighter on or after July 1, 1994, and at the time of
 30  8 retirement is at least fifty-five years of age may elect to
 30  9 receive, in lieu of the receipt of any benefits as calculated
 30 10 pursuant to section 97B.49A or 97B.49D, a monthly retirement
 30 11 allowance equal to one-twelfth of an amount equal to the
 30 12 applicable percentage of the three-year average covered wage
 30 13 as a member who has been employed in eligible service
 30 14 multiplied by a fraction of years of service, with benefits
 30 15 payable during the member's lifetime.
 30 16    3.  ADDITIONAL CONTRIBUTIONS.
 30 17    a.  Annually, the department of personnel shall actuarially
 30 18 determine the cost of the additional benefits provided for
 30 19 members covered under this section as a percentage of the
 30 20 covered wages of the employees covered by this section.  Sixty
 30 21 percent of the cost shall be paid by the employers of
 30 22 employees covered under this section and forty percent of the
 30 23 cost shall be paid by the employees.  The employer and
 30 24 employee contributions required under this paragraph are in
 30 25 addition to the contributions paid under sections 97B.11 and
 30 26 97B.11A.  However, the cost of including service as an airport
 30 27 fire fighter prior to July 1, 1994, as eligible service under
 30 28 this section shall not affect the contribution rates
 30 29 calculated and paid by the member or the employer under this
 30 30 section.
 30 31    b.  (1)  Annually, during each fiscal year commencing with
 30 32 the fiscal year beginning July 1, 1988, each county shall pay
 30 33 to the department of personnel the amount necessary to pay the
 30 34 employer share of the cost of the additional benefits provided
 30 35 to sheriffs and deputy sheriffs.
 31  1    (2)  For the fiscal year commencing July 1, 1994, and each
 31  2 succeeding fiscal year, there is appropriated from the general
 31  3 fund of the state to the department of personnel, from funds
 31  4 not otherwise appropriated, an amount necessary to pay the
 31  5 employer share of the cost of the additional benefits provided
 31  6 to airport fire fighters under this section.
 31  7    Sec. 38.  NEW SECTION.  97B.49D  HYBRID FORMULA.
 31  8    1.  An active or inactive vested member, who is or has been
 31  9 employed in both special service and regular service, who
 31 10 retires on or after July 1, 1996, with four or more completed
 31 11 years of service and at the time of retirement is at least
 31 12 fifty-five years of age, may elect to receive, in lieu of the
 31 13 receipt of a monthly retirement allowance as calculated
 31 14 pursuant to sections 97B.49A through 97B.49C, a combined
 31 15 monthly retirement allowance equal to the sum of the
 31 16 following:
 31 17    a.  One-twelfth of an amount equal to the applicable
 31 18 percentage of the member's three-year average covered wage
 31 19 multiplied by a fraction of years of service.  The fraction of
 31 20 years of service for purposes of this paragraph shall be the
 31 21 actual years of service, not to exceed thirty, for which
 31 22 regular service contributions were made, divided by thirty.
 31 23 However, any otherwise applicable age reduction for early
 31 24 retirement shall apply to the calculation under this
 31 25 paragraph.
 31 26    b.  One-twelfth of an amount equal to the applicable
 31 27 percentage of the member's three-year average covered wage
 31 28 multiplied by a fraction of years of service.  The fraction of
 31 29 years of service for purposes of this paragraph shall be the
 31 30 actual years of service, not to exceed twenty-five, earned in
 31 31 a position described in section 97B.49B, for which special
 31 32 service contributions were made, divided by twenty-five.  In
 31 33 calculating the fractions of years of service under the
 31 34 paragraph, a member shall not receive special service credit
 31 35 for years of service for which the member and the member's
 32  1 employer did not make the required special service
 32  2 contributions to the department.
 32  3    c.  One-twelfth of an amount equal to the applicable
 32  4 percentage of the member's three-year average covered wage
 32  5 multiplied by a fraction of years of service.  The fraction of
 32  6 years of service for purposes of this paragraph shall be the
 32  7 actual years of service, not to exceed twenty-two, earned in a
 32  8 position described in section 97B.49C, for which special
 32  9 service contributions were made, divided by twenty-two.  In
 32 10 calculating the fractions of years of service under this
 32 11 paragraph, a member shall not receive special service credit
 32 12 for years of service for which the member and the member's
 32 13 employer did not make the required special service
 32 14 contributions to the department.
 32 15    2.  In calculating the combined monthly retirement
 32 16 allowance pursuant to subsection 1, the sum of the fraction of
 32 17 years of service provided in subsection 1, paragraphs "a",
 32 18 "b", and "c", shall not exceed one.  If the sum of the
 32 19 fractions of years of service would exceed one, the department
 32 20 shall deduct years of service first from the calculation under
 32 21 subsection 1, paragraph "a", and then from the calculation
 32 22 under subsection 1, paragraph "b", if necessary, so that the
 32 23 sum of the fractions of years of service shall equal one.
 32 24    3.  In calculating the combined monthly retirement
 32 25 allowance pursuant to subsection 1, the applicable percentage
 32 26 shall be sixty percent plus, if applicable, an additional one-
 32 27 fourth of one percentage point for each additional calendar
 32 28 quarter of membership service in service as described in
 32 29 subsection 1, paragraph "a", "b", or "c", beyond thirty years
 32 30 of service, not to exceed a total of five additional
 32 31 percentage points.  Any addition in the percentage multiplier
 32 32 shall be included in the calculations required under this
 32 33 section.
 32 34    Sec. 39.  NEW SECTION.  97B.49E  MINIMUM BENEFITS.
 32 35    1.  For each active member retiring on or after June 30,
 33  1 1973, and who has completed ten or more years of membership
 33  2 service, the total amount of monthly benefit payable at the
 33  3 normal retirement date for prior service and membership
 33  4 service shall not be less than fifty dollars per month.  If
 33  5 benefits commence on an early retirement date, the amount of
 33  6 benefit shall be reduced in accordance with section 97B.50.
 33  7 If an optional allowance is selected under section 97B.51, the
 33  8 amount payable shall be the actuarial equivalent of the
 33  9 minimum benefit.  An employee who is in employment on a school
 33 10 year or academic year basis, will be considered to be an
 33 11 active member as of June 30, 1973, if the employee completes
 33 12 the 1972-1973 school year or academic year.
 33 13    2.  Effective January 1, 1997, for members who retired on
 33 14 or after July 1, 1953, and before July 1, 1990, with at least
 33 15 ten years of prior and membership service, the minimum monthly
 33 16 benefit payable at the normal retirement date for prior and
 33 17 membership service shall be two hundred dollars.  The minimum
 33 18 monthly benefit payable shall be increased by ten dollars for
 33 19 each year of prior and membership service beyond ten years, up
 33 20 to a maximum of twenty additional years of prior and
 33 21 membership service.  If benefits commenced on an early
 33 22 retirement date, the amount of the benefit shall be reduced in
 33 23 accordance with section 97B.50.  If an optional allowance was
 33 24 selected under section 97B.51, the amount payable shall be the
 33 25 actuarial equivalent of the minimum benefit.
 33 26    Sec. 40.  NEW SECTION.  97B.49F  RETIREMENT DIVIDENDS.
 33 27    1.  COST OF LIVING DIVIDEND.
 33 28    a.  Effective July 1, 1997, commencing with dividends
 33 29 payable in November 1997, and for each subsequent year, all
 33 30 members who retired prior to July 1, 1990, and all
 33 31 beneficiaries and contingent annuitants of such members, shall
 33 32 be eligible for annual dividend payments, payable in November
 33 33 of that year, pursuant to the requirements of this subsection.
 33 34 The dividend payable in any given year shall be the sum of the
 33 35 dollar amount of the dividend payable in the previous November
 34  1 and the dividend adjustment.  A dividend determined pursuant
 34  2 to this subsection shall not be used to increase the monthly
 34  3 benefit amount payable.  In no event shall the dividend
 34  4 payable be less than twenty-five dollars.
 34  5    b.  (1)  The dividend adjustment for a given year shall be
 34  6 calculated by multiplying the total of the retiree's,
 34  7 beneficiary's, or contingent annuitant's monthly benefit
 34  8 payments and the dividend payable to the retiree, beneficiary,
 34  9 or contingent annuitant, in the previous calendar year by the
 34 10 applicable percentage as determined by this paragraph.
 34 11    (2)  The applicable percentage shall be the least of the
 34 12 following percentages:
 34 13    (a)  The percentage representing eighty percent of the
 34 14 percentage increase in the consumer price index published in
 34 15 the federal register by the federal department of labor,
 34 16 bureau of labor statistics, that reflects the percentage
 34 17 increase in the consumer price index for the twelve-month
 34 18 period ending June 30 of the year that the dividend is to be
 34 19 paid.
 34 20    (b)  The percentage representing the percentage amount the
 34 21 actuary has certified, in the annual actuarial valuation of
 34 22 the system as of June 30 of the year in which the dividend is
 34 23 to be paid, that the fund can absorb without requiring an
 34 24 increase in the employer and employee contributions to the
 34 25 fund.
 34 26    (c)  Three percent.
 34 27    c.  If a member dies on or after November 1, but before
 34 28 payment of a dividend is made in that month, the full amount
 34 29 of the retirement dividend for that year shall be paid in the
 34 30 member's name upon notification of the member's death.
 34 31    2.  FAVORABLE EXPERIENCE DIVIDEND.
 34 32    a.  Commencing January 1, 1999, all members who retired on
 34 33 or after July 1, 1990, and who have been retired for at least
 34 34 one year as of the date the dividend is payable, or a
 34 35 beneficiary or contingent annuitant of such a member, shall be
 35  1 eligible to receive a favorable experience dividend, payable
 35  2 on the last business day in January of each year pursuant to
 35  3 the requirements of this subsection.
 35  4    b.  A favorable experience dividend reserve account,
 35  5 hereafter called the "reserve account", is established within
 35  6 the retirement fund.  Moneys credited to the reserve account
 35  7 shall be used by the department for the purpose of providing a
 35  8 favorable experience dividend pursuant to this subsection.
 35  9    c.  Moneys shall be credited to the reserve account in the
 35 10 retirement fund as follows:
 35 11    (1)  On or before January 15, 1999, there shall be credited
 35 12 to the reserve account an amount that the system's actuary
 35 13 determines is sufficient to pay the maximum favorable
 35 14 experience dividend for each of the next following five years,
 35 15 based on reasonable actuarial assumptions.
 35 16    (2)  Beginning with the annual actuarial valuation of the
 35 17 system as of June 30, 1999, and for each annual actuarial
 35 18 valuation of the system thereafter, there shall be credited to
 35 19 the reserve account on each applicable January 15 following an
 35 20 actuarial valuation, an amount that represents that portion of
 35 21 the favorable actuarial experience, if any, that the system's
 35 22 actuary determines shall be credited to the reserve account
 35 23 pursuant to rules adopted by the department.
 35 24    (3)  The portion of the favorable actuarial experience, if
 35 25 any, that is not initially credited to the reserve account
 35 26 pursuant to subparagraph (2), but which, if applied to the
 35 27 retirement fund, would result in the actuarial valuation of
 35 28 assets exceeding the actuarial accrued liability of the system
 35 29 based on the most recent annual actuarial valuation of the
 35 30 system, shall be credited to the reserve account.
 35 31    (4)  As used in this paragraph, "favorable actuarial
 35 32 experience" means the difference, if positive, between the
 35 33 anticipated and actual experience of the system's actuarial
 35 34 assets and liabilities as measured by the system's actuary in
 35 35 the most recent annual actuarial valuation of the system
 36  1 pursuant to rules adopted by the department.
 36  2    d.  The favorable experience dividend is calculated by
 36  3 multiplying the total of the monthly benefit payments of the
 36  4 retiree, beneficiary, or contingent annuitant for the previous
 36  5 calendar year, by the number of complete years the member has
 36  6 been retired or would have been retired if living as of the
 36  7 date the dividend is payable, and by the applicable
 36  8 percentage.  For purposes of this paragraph, the applicable
 36  9 percentage is the percentage, not to exceed three percent,
 36 10 that the department determines shall be applied in calculating
 36 11 the favorable experience dividend if the department determines
 36 12 that the reserve account is sufficiently funded to make a
 36 13 distribution.  In making its determination, the department
 36 14 shall consider, but not be limited to, the amounts credited to
 36 15 the reserve account, the distributions from the reserve
 36 16 account made in previous years, the likelihood of future
 36 17 credits to and distributions from the reserve account, and the
 36 18 distributions paid under subsection 1.
 36 19    Sec. 41.  NEW SECTION.  97B.49G  MONTHLY PAYMENTS OF
 36 20 ALLOWANCE – MISCELLANEOUS PROVISIONS.
 36 21    1.  MONTHLY PAYMENTS OF ALLOWANCE – PERCENTAGE MULTIPLIER.
 36 22    a.  For each active or inactive vested member retiring on
 36 23 or after July 1, 1986, and before July 1, 1994, with four or
 36 24 more complete years of service, a monthly benefit shall be
 36 25 computed which is equal to one-twelfth of an amount equal to
 36 26 the applicable percentage multiplier of the three-year average
 36 27 covered wage multiplied by a fraction of years of service.
 36 28    b.  The applicable percentage multiplier for purposes of
 36 29 this subsection shall be the following:
 36 30    (1)  For active or inactive vested members retiring on or
 36 31 after July 1, 1986, but before July 1, 1990, fifty percent.
 36 32    (2)  For active or inactive vested members retiring on or
 36 33 after July 1, 1990, but before July 1, 1991, fifty-two
 36 34 percent.
 36 35    (3)  For active or inactive vested members retiring on or
 37  1 after July 1, 1991, but before July 1, 1992, fifty-four
 37  2 percent.
 37  3    (4)  For active or inactive vested members retiring on or
 37  4 after July 1, 1992, but before July 1, 1993, fifty-six
 37  5 percent.
 37  6    (5)  For active or inactive vested members retiring on or
 37  7 after July 1, 1993, but before July 1, 1994, fifty-seven and
 37  8 four-tenths percent.
 37  9    (6)  For active or inactive vested members retiring on or
 37 10 after July 1, 1994, sixty percent.
 37 11    c.  For purposes of this subsection, fraction of years of
 37 12 service means a number, not to exceed one, equal to the sum of
 37 13 the years of membership service and the number of years of
 37 14 prior service divided by thirty years.
 37 15    2.  EXTRA PAYMENTS ON ALLOWANCE – PRE-1976 RETIREES.
 37 16    a.  On January 1, 1976, for each member who retired before
 37 17 January 1, 1976, the amount of regular monthly retirement
 37 18 allowance attributable to membership service and prior service
 37 19 that was payable to the member for December 1975 is increased
 37 20 by ten percent for the first calendar year or portion of a
 37 21 calendar year the member was retired, and by an additional
 37 22 five percent for each calendar year after the first calendar
 37 23 year the member was retired through the calendar year
 37 24 beginning January 1, 1975.  The total increase shall not
 37 25 exceed one hundred percent.  Effective July 1, 1987, there is
 37 26 appropriated for each fiscal year from the Iowa public
 37 27 employees' retirement fund created in section 97B.7 to the
 37 28 department of personnel from funds not otherwise appropriated
 37 29 an amount sufficient to fund the monthly retirement allowance
 37 30 increases paid under this paragraph.
 37 31    The benefit increases granted to members retired under the
 37 32 system on January 1, 1976, shall be granted only on January 1,
 37 33 1976, and shall not be further increased for any year in which
 37 34 the member was retired after the calendar year beginning
 37 35 January 1, 1975.
 38  1    b.  Effective July 1, 1978, for each member who retired
 38  2 from the system prior to January 1, 1976, the amount of
 38  3 regular monthly retirement allowance attributable to
 38  4 membership service and prior service that was payable to the
 38  5 member for June 1978 is increased as follows:
 38  6    (1)  For the first ten years of service, fifty cents per
 38  7 month for each complete year of service.
 38  8    (2)  For the eleventh through the twentieth years of
 38  9 service, two dollars per month for each complete year of
 38 10 service.
 38 11    (3)  For the twenty-first through the thirtieth years of
 38 12 service, three dollars per month for each complete year of
 38 13 service.
 38 14    Effective July 1, 1979, the increases granted to members
 38 15 under this subparagraph shall be paid to contingent annuitants
 38 16 and to beneficiaries.
 38 17    3.  EXTRA PAYMENTS ON ALLOWANCE.
 38 18    a.  Effective July 1, 1980, for each member who retired
 38 19 from the system prior to January 1, 1976, and for each member
 38 20 who retired from the system on or after January 1, 1976, under
 38 21 section 97B.49A, subsection 4, the amount of regular monthly
 38 22 retirement allowance attributable to membership service and
 38 23 prior service that was payable to the member for June 1980 is
 38 24 increased as follows:
 38 25    (1)  For the first ten years of service, fifty cents per
 38 26 month for each complete year of service.
 38 27    (2)  For the eleventh through the twentieth years of
 38 28 service, one dollar per month for each complete year of
 38 29 service.
 38 30    (3)  For the twenty-first through the thirtieth years of
 38 31 service, one dollar and fifty cents per month for each
 38 32 complete year of service.
 38 33    (4)  The amount of monthly increase payable to a member
 38 34 under this paragraph is also payable to a beneficiary and a
 38 35 contingent annuitant and shall be reduced by an amount based
 39  1 upon the actuarial equivalent of the option selected in
 39  2 section 97B.51 or section 97B.52 compared to the full monthly
 39  3 benefit provided in this section or section 97B.49A, as
 39  4 applicable.
 39  5    However, effective July 1, 1980, the monthly retirement
 39  6 allowance attributable to membership service and prior service
 39  7 of a member, contingent annuitant, and beneficiary shall not
 39  8 be less than five dollars times the number of complete years
 39  9 of service of the member, not to exceed thirty, reduced by an
 39 10 amount based upon the actuarial equivalent of the option
 39 11 selected in section 97B.51 or section 97B.52, compared to the
 39 12 full monthly retirement benefit provided in this section or
 39 13 section 97B.49A, as applicable.
 39 14    b.  Effective beginning July 1, 1982, for each member who
 39 15 retired from the system prior to January 1, 1976, and for each
 39 16 member who retired from the system on or after January 1,
 39 17 1976, under section 97B.49A, subsection 4, the amount of
 39 18 regular monthly retirement allowance attributable to
 39 19 membership service and prior service that was payable to the
 39 20 member for June 1982 is increased as follows:
 39 21    (1)  For the first ten years of service, fifty cents per
 39 22 month for each complete year of service.
 39 23    (2)  For the eleventh through the twentieth years of
 39 24 service, one dollar per month for each complete year of
 39 25 service.
 39 26    (3)  For the twenty-first through the thirtieth years of
 39 27 service, one dollar and fifty cents per month for each
 39 28 complete year of service.
 39 29    (4)  The amount of monthly increase payable to a member
 39 30 under this paragraph is also payable to a beneficiary and a
 39 31 contingent annuitant and shall be reduced by an amount based
 39 32 upon the actuarial equivalent of the option selected in
 39 33 section 97B.51 or section 97B.52 compared to the full monthly
 39 34 benefit provided in this section or section 97B.49A, as
 39 35 applicable.
 40  1    c.  Beginning January 1, 1999, for each member who retired
 40  2 from the system prior to July 1, 1986, the amount of regular
 40  3 monthly retirement allowance attributable to membership and
 40  4 prior service that was payable to the member, or the
 40  5 beneficiary or contingent annuitant of the member, for
 40  6 December 1998 shall be increased by fifteen percent.
 40  7    d.  Beginning January 1, 1999, for each member who retired
 40  8 from the system on or after July 1, 1986, but before July 1,
 40  9 1990, the amount of regular monthly retirement allowance
 40 10 attributable to membership and prior service that was payable
 40 11 to the member, or the beneficiary or contingent annuitant of
 40 12 the member, for December 1998 shall be increased by seven
 40 13 percent.
 40 14    4.  NORMAL RETIREMENT DATES.  A retired member shall be
 40 15 deemed to have retired on the member's normal retirement date,
 40 16 and retirement benefits calculated shall not be reduced
 40 17 pursuant to section 97B.50, if the member meets any of the
 40 18 following requirements:
 40 19    a.  The member is an active or inactive vested member
 40 20 retiring on or after July 1, 1988, and before July 1, 1990,
 40 21 who is at least fifty-five years of age and has completed at
 40 22 least thirty years of membership service and prior service,
 40 23 and for which the sum of the number of years of membership
 40 24 service and prior service and the member's age in years as of
 40 25 the member's last birthday equals or exceeds ninety-two.
 40 26    b.  The member is an active or inactive vested member
 40 27 retiring on or after July 1, 1990, and before July 1, 1996,
 40 28 who is at least fifty-five years of age and for which the sum
 40 29 of the number of years of membership service and prior service
 40 30 and the member's age in years as of the member's last birthday
 40 31 equals or exceeds ninety-two.
 40 32    c.  The member is an active or inactive vested member
 40 33 retiring on or after July 1, 1996, and before July 1, 1997,
 40 34 who is at least fifty-five years of age and for which the sum
 40 35 of the number of years of membership service and prior service
 41  1 and the member's age in years as of the member's last birthday
 41  2 equals or exceeds ninety.
 41  3    d.  The member is an active or inactive vested member
 41  4 retiring on or after July 1, 1986, and before January 1, 1999,
 41  5 who is at least sixty-two years of age and who has completed
 41  6 thirty years of membership service.
 41  7    5.  DIVIDENDS – NOVEMBER 1996.
 41  8    a.  Each member who retired from the system between July 4,
 41  9 1953, and December 31, 1975, or a contingent annuitant or
 41 10 beneficiary of such a member, shall receive with the November
 41 11 1996 monthly benefit payment a retirement dividend equal to
 41 12 two hundred ninety-two percent of the monthly benefit payment
 41 13 the member received for the preceding June, or the most
 41 14 recently received benefit payment, whichever is greater.  The
 41 15 retirement dividend does not affect the amount of a monthly
 41 16 benefit payment.
 41 17    b.  A member who retired from the system between January 1,
 41 18 1976, and June 30, 1982, or a contingent annuitant or
 41 19 beneficiary of such a member, shall receive with the November
 41 20 1996 monthly benefit payment a retirement dividend equal to
 41 21 two hundred twenty-three percent of the monthly benefit
 41 22 payment the member received for the preceding June, or the
 41 23 most recently received benefit payment, whichever is greater.
 41 24 The retirement dividend does not affect the amount of a
 41 25 monthly benefit payment.
 41 26    c.  A member who retired from the system between July 1,
 41 27 1982, and June 30, 1986, or a contingent annuitant or
 41 28 beneficiary of such a member, shall receive with the November
 41 29 1996 monthly benefit payment a retirement dividend equal to
 41 30 seventy-four percent of the monthly benefit payment the member
 41 31 received for the preceding June, or the most recently received
 41 32 benefit payment, whichever is greater.  The retirement
 41 33 dividend does not affect the amount of a monthly benefit
 41 34 payment.
 41 35    d.  A member who retired from the system between July 1,
 42  1 1986, and June 30, 1990, or a contingent annuitant or
 42  2 beneficiary of such a member, shall receive with the November
 42  3 1996 monthly benefit payment a retirement dividend equal to
 42  4 twenty-four percent of the monthly benefit payment the member
 42  5 received for the preceding June, or the most recently received
 42  6 benefit payment, whichever is greater.  The retirement
 42  7 dividend does not affect the amount of a monthly benefit
 42  8 payment.
 42  9    e.  Notwithstanding the determination of the amount of a
 42 10 retirement dividend under this subsection, a retirement
 42 11 dividend shall not be less than twenty-five dollars.
 42 12    6.  CONSERVATION PEACE OFFICER – JULY 1986 - JULY 1988.
 42 13    a.  Notwithstanding other provisions of this chapter, a
 42 14 member who is or has been employed as a conservation peace
 42 15 officer under section 456A.13 and who retires on or after July
 42 16 1, 1986, and before July 1, 1988, and at the time of
 42 17 retirement is at least sixty years of age and has completed at
 42 18 least twenty-five years of membership service as a
 42 19 conservation peace officer, may elect to receive, in lieu of
 42 20 the receipt of any benefits under subsection 1 or section
 42 21 97B.49A, as applicable, a monthly retirement allowance equal
 42 22 to one-twelfth of fifty percent of the member's three-year
 42 23 average covered wage as a conservation peace officer, with
 42 24 benefits payable during the member's lifetime.
 42 25    b.  A conservation peace officer who retires on or after
 42 26 July 1, 1986, and before July 1, 1988, and has not completed
 42 27 twenty-five years of membership service as required under this
 42 28 subsection is eligible to receive a monthly retirement
 42 29 allowance equal to one-twelfth of fifty percent of the
 42 30 member's three-year average covered wage as a conservation
 42 31 peace officer, multiplied by a fraction of years of service as
 42 32 a conservation peace officer.  For the purpose of this
 42 33 subsection, "fraction of years of service" means a number, not
 42 34 to exceed one, equal to the sum of the years of membership
 42 35 service as a conservation peace officer, divided by twenty-
 43  1 five years.  On or after July 1, 1986, but before July 1,
 43  2 1988, if the conservation peace officer has not reached sixty
 43  3 years of age at retirement, the monthly retirement allowance
 43  4 shall be reduced by five-tenths of one percent per month for
 43  5 each month that the conservation peace officer's retirement
 43  6 precedes the date on which the conservation peace officer
 43  7 attains sixty years of age.
 43  8    The annual contribution necessary to pay for the additional
 43  9 benefits provided in this paragraph shall be paid by the
 43 10 employer and employee in the same proportion that employer and
 43 11 employee contributions are made under section 97B.11.
 43 12    c.  There is appropriated from the state fish and game
 43 13 protection fund to the department of personnel an actuarially
 43 14 determined amount calculated by the Iowa public employees'
 43 15 retirement system sufficient to pay for the additional
 43 16 benefits to conservation peace officers provided by this
 43 17 subsection, as a percentage, in paragraph "a" and for the
 43 18 employer portion of the benefits provided in paragraph "b".
 43 19 The amount is in addition to the contribution paid by the
 43 20 employer under section 97B.11.  The cost of the benefits
 43 21 relating to conservation peace officers within the fish and
 43 22 game division of the department of natural resources shall be
 43 23 paid from the state fish and game protection fund and the cost
 43 24 of the benefits relating to the other conservation peace
 43 25 officers of the department shall be paid from the general
 43 26 fund.
 43 27    7.  PEACE OFFICER – JULY 1986 - JULY 1988.
 43 28    a.  Notwithstanding other provisions of this chapter, a
 43 29 member who is or has been employed as a peace officer and who
 43 30 retires on or after July 1, 1986, and before July 1, 1988, and
 43 31 at the time of retirement is at least sixty years of age and
 43 32 has completed at least twenty-five years of membership service
 43 33 as a peace officer, may elect to receive, in lieu of the
 43 34 benefits under subsection 1 or section 97B.49A, subsection 4,
 43 35 as applicable, a monthly retirement allowance equal to one-
 44  1 twelfth of fifty percent of the member's three-year average
 44  2 covered wage as a peace officer, with benefits payable during
 44  3 the member's lifetime.
 44  4    A peace officer who retires on or after July 1, 1986, and
 44  5 before July 1, 1988, and has not completed twenty-five years
 44  6 of membership service as required under this subsection is
 44  7 eligible to receive a monthly retirement allowance equal to
 44  8 one-twelfth of fifty percent of the member's three-year
 44  9 average covered wage as a peace officer multiplied by the
 44 10 fraction of years of service as a peace officer.  For the
 44 11 purpose of this subsection, "fraction of years of service"
 44 12 means a number, not to exceed one, equal to the sum of the
 44 13 years of membership service as a peace officer, divided by
 44 14 twenty-five years.  On or after July 1, 1984, but before July
 44 15 1, 1988, if the peace officer has not reached sixty years of
 44 16 age at retirement, the monthly retirement allowance shall be
 44 17 reduced by five-tenths of one percent per month for each month
 44 18 that the peace officer's retirement precedes the date on which
 44 19 the peace officer attains sixty years of age.
 44 20    For the purpose of this subsection, membership service as a
 44 21 peace officer means service under this system as any or all of
 44 22 the following:
 44 23    (1)  As a county sheriff as defined in section 39.17.
 44 24    (2)  As a deputy sheriff appointed pursuant to section
 44 25 341.1, Code 1981, or section 331.903.
 44 26    (3)  As a marshal or police officer in a city not covered
 44 27 under chapter 400.
 44 28    b.  Each county and applicable city and employee eligible
 44 29 for benefits under this subsection shall annually contribute
 44 30 an amount determined by the department of personnel, as a
 44 31 percentage of covered wages, to be necessary to pay for the
 44 32 additional benefits provided by this subsection.  The annual
 44 33 contribution in excess of the employer and employee
 44 34 contributions required by this chapter shall be paid by the
 44 35 employer and the employee in the same proportion that employer
 45  1 and employee contributions are made under section 97B.11.  The
 45  2 additional percentage of covered wages shall be calculated
 45  3 separately by the department for service under paragraph "a",
 45  4 subparagraphs (1) and (2), and for service under paragraph
 45  5 "a", subparagraph (3), and each shall be an actuarially
 45  6 determined amount for that type of service which, if
 45  7 contributed throughout the entire period of active service,
 45  8 would be sufficient to provide the pension benefit provided in
 45  9 this subsection.
 45 10    8.  CORRECTIONAL OFFICER – JULY 1986 - JULY 1988.
 45 11    a.  Notwithstanding sections of this chapter relating to
 45 12 eligibility for and determination of retirement benefits, a
 45 13 vested member who is or has been employed as a correctional
 45 14 officer by the Iowa department of corrections and who retires
 45 15 on or after July 1, 1986, and before July 1, 1988, and at the
 45 16 time of retirement is at least sixty years of age and has
 45 17 completed at least thirty years of membership service as a
 45 18 correctional officer, may elect to receive, in lieu of the
 45 19 receipt of benefits under subsection 1 or section 97B.49A,
 45 20 subsection 4, as applicable, a monthly retirement allowance
 45 21 equal to one-twelfth of fifty percent of the member's three-
 45 22 year average covered wage as a correctional officer, with
 45 23 benefits payable during the member's lifetime.
 45 24    b.  The Iowa department of corrections and the department
 45 25 of personnel shall jointly determine the applicable merit
 45 26 system job classifications of correctional officers.
 45 27    c.  The Iowa department of corrections shall pay to the
 45 28 department of personnel, from funds appropriated to the Iowa
 45 29 department of corrections, an actuarially determined amount
 45 30 sufficient to pay for the additional benefits provided in this
 45 31 subsection.  The amount is in addition to the employer
 45 32 contributions required in section 97B.11.
 45 33    9.  AIRPORT FIRE FIGHTER – JULY 1986 - JULY 1988.
 45 34    a.  Notwithstanding other provisions of this chapter, a
 45 35 member who is or has been employed by the office of disaster
 46  1 services as an airport fire fighter who retires on or after
 46  2 July 1, 1986, and before July 1, 1988, and at the time of
 46  3 retirement is at least sixty years of age and has completed at
 46  4 least twenty-five years of membership service as an airport
 46  5 fire fighter, may elect to receive, in lieu of the receipt of
 46  6 any benefits under subsection 1 or section 97B.49A, subsection
 46  7 4, as applicable, a monthly retirement allowance equal to one-
 46  8 twelfth of fifty percent of the member's three-year average
 46  9 covered wage as an airport fire fighter, with benefits payable
 46 10 during the member's lifetime.
 46 11    b.  An airport fire fighter who retires on or after July 1,
 46 12 1986, and before July 1, 1988, and has not completed twenty-
 46 13 five years of membership service as required under this
 46 14 subsection is eligible to receive a monthly retirement
 46 15 allowance equal to one-twelfth of fifty percent of the
 46 16 member's three-year average covered wage as an airport fire
 46 17 fighter multiplied by a fraction of years of service as an
 46 18 airport fire fighter.  For the purpose of this subsection,
 46 19 "fraction of years of service" means a number, not to exceed
 46 20 one, equal to the sum of the years of membership service as an
 46 21 airport fire fighter, divided by twenty-five years.  On or
 46 22 after July 1, 1986, but before July 1, 1988, if the airport
 46 23 fire fighter has not reached sixty years of age at retirement,
 46 24 the monthly retirement allowance shall be reduced by five-
 46 25 tenths of one percent per month for each month that the
 46 26 airport fire fighter's retirement precedes the date on which
 46 27 the airport fire fighter attains sixty years of age.
 46 28    c.  The employer and each employee eligible for benefits
 46 29 under this subsection shall annually contribute an actuarially
 46 30 determined amount specified by the department, as a percentage
 46 31 of covered wages, that is necessary to pay for the additional
 46 32 benefits provided by this subsection.  The annual contribution
 46 33 in excess of the employer and employee contributions required
 46 34 in section 97B.11 shall be paid by the employer and the
 46 35 employee in the same proportion that the employer and employee
 47  1 contributions are made under section 97B.11.
 47  2    d.  There is appropriated from the general fund of the
 47  3 state to the department from funds not otherwise appropriated
 47  4 an amount sufficient to pay the employer share of the cost of
 47  5 the additional benefits provided in this subsection.
 47  6    10.  PROTECTION OCCUPATION – JULY 1988 - JULY 1994.
 47  7    a.  For purposes of this subsection:
 47  8    (1)  "Applicable percentage" means the applicable
 47  9 percentage multiplier defined in subsection 1, paragraph "b",
 47 10 that applies on the date a member retires and becomes eligible
 47 11 to receive a monthly allowance as calculated pursuant to this
 47 12 subsection.
 47 13    (2)  "Fraction of years of service" means a number, not to
 47 14 exceed one, equal to the sum of the years of membership
 47 15 service in a protection occupation divided by twenty-five
 47 16 years.
 47 17    b.  Notwithstanding other provisions of this chapter, a
 47 18 member who is or has been employed in a protection occupation
 47 19 who retires on or after July 1, 1988, and before July 1, 1994,
 47 20 and at the time of retirement is at least fifty-five years of
 47 21 age may elect to receive, in lieu of the receipt of any
 47 22 benefits as calculated pursuant to subsection 1 or section
 47 23 97B.49A, subsection 4, as applicable, a monthly retirement
 47 24 allowance equal to one-twelfth of an amount equal to the
 47 25 applicable percentage of the three-year average covered wage
 47 26 as a member who has been employed in a protection occupation
 47 27 multiplied by a fraction of years of service, with benefits
 47 28 payable during the member's lifetime.
 47 29    11.  SHERIFFS AND DEPUTY SHERIFFS – JULY 1988 - JULY 1994.
 47 30    a.  For purposes of this subsection:
 47 31    (1)  "Applicable percentage" means the applicable
 47 32 percentage multiplier as described in subsection 1, paragraph
 47 33 "b", that applies on the date a member retires and becomes
 47 34 eligible to receive a monthly allowance as calculated pursuant
 47 35 to this subsection.
 48  1    (2)  "Fraction of years of service" means a number, not to
 48  2 exceed one, equal to the sum of the years of membership
 48  3 service as a sheriff or deputy sheriff divided by twenty-two
 48  4 years.
 48  5    b.  Notwithstanding other provisions of this chapter, a
 48  6 member who retires from employment as a sheriff or deputy
 48  7 sheriff on or after July 1, 1988, and before July 1, 1994, and
 48  8 at the time of retirement is at least fifty-five years of age
 48  9 may elect to receive, in lieu of the receipt of any benefits
 48 10 as calculated pursuant to subsection 1 or section 97B.49A,
 48 11 subsection 4, as applicable, a monthly retirement allowance
 48 12 equal to one-twelfth of an amount equal to the applicable
 48 13 percentage of the three-year average covered wage as a member
 48 14 who has been employed as a sheriff or deputy sheriff
 48 15 multiplied by a fraction of years of service, with benefits
 48 16 payable during the member's lifetime.
 48 17    Sec. 42.  NEW SECTION.  97B.49H  ACTIVE MEMBER SUPPLEMENTAL
 48 18 ACCOUNTS.
 48 19    1.  There is established, for each active member, a
 48 20 supplemental account consisting of amounts credited to the
 48 21 account as provided in this section which shall be held and
 48 22 used for the exclusive benefit of the member pursuant to the
 48 23 requirements of this section.
 48 24    2.  Amounts shall be credited to a supplemental account of
 48 25 each active member pursuant to the requirements of this
 48 26 section following a determination by the system's actuary
 48 27 during the most recent annual actuarial valuation that the
 48 28 system does not have an unfunded accrued liability.  For
 48 29 purposes of this section, the system does not have an unfunded
 48 30 accrued liability if the actuarial accrued liability of the
 48 31 system based on the actuarial cost method used by the actuary
 48 32 does not exceed the actuarial value of assets of the system as
 48 33 of the valuation date.
 48 34    3.  The department shall annually determine the amount to
 48 35 be credited to the supplemental accounts of active members.
 49  1 The amount to be credited shall be calculated by multiplying
 49  2 the member's covered wages for the applicable wage reporting
 49  3 period by the supplemental rate.  For purposes of this
 49  4 subsection, the supplemental rate is the difference, if
 49  5 positive, between the combined employee and employer statutory
 49  6 contribution rates in effect under section 97B.11 and the
 49  7 normal cost rate of the system as determined by the system's
 49  8 actuary in the most recent annual actuarial valuation of the
 49  9 system.  The credits shall be made at least quarterly during
 49 10 the calendar year following a determination that the system
 49 11 does not have an unfunded accrued liability.  The normal cost
 49 12 rate, calculated according to the actuarial cost method used,
 49 13 is the percent of pay allocated to each year of service that
 49 14 is necessary to fund projected benefits over all members'
 49 15 service with the system.
 49 16    4.  Amounts credited to a member's supplemental account
 49 17 shall be credited with interest quarterly pursuant to section
 49 18 97B.70, subsection 2.
 49 19    5.  Amounts credited to a member's supplemental account
 49 20 shall be distributed as follows:
 49 21    a.  If a member terminates covered employment and files an
 49 22 application for a refund under section 97B.53, the member
 49 23 shall receive in a lump sum payment, in addition to any other
 49 24 payment provided by this chapter, all amounts credited to the
 49 25 member's supplemental account.
 49 26    b.  If a member dies prior to retirement, the member's
 49 27 beneficiary shall receive in a lump sum payment, in addition
 49 28 to any other payment provided by this chapter, all amounts
 49 29 credited to the member's supplemental account.
 49 30    c.  Upon retirement, the member shall receive in a lump sum
 49 31 payment or in an annuity, in addition to any other payment
 49 32 provided by this chapter, all amounts credited to the member's
 49 33 supplemental account.
 49 34    Sec. 43.  IMPLEMENTATION DATE.  New section 97B.49H,
 49 35 establishing an active member supplemental account, shall not
 50  1 be implemented until the Iowa public employees' retirement
 50  2 system receives approval to implement this new section from
 50  3 the federal internal revenue service.
 50  4    Sec. 44.  NEW SECTION.  97B.49I  QUALIFIED BENEFITS
 50  5 ARRANGEMENT.
 50  6    The department, by rule, may establish and maintain a
 50  7 qualified benefits arrangement under section 415(m) of the
 50  8 federal Internal Revenue Code.  The amount of any annual
 50  9 benefit that would be payable pursuant to this chapter but for
 50 10 the limitation imposed by section 415 of the federal Internal
 50 11 Revenue Code shall be paid from a qualified benefits
 50 12 arrangement established and maintained pursuant to this
 50 13 section.
 50 14    Sec. 45.  Section 97B.50, Code 1997, is amended to read as
 50 15 follows:
 50 16    97B.50  EARLY RETIREMENT.
 50 17    1.  Except as otherwise provided in this section, a vested
 50 18 member, upon retirement prior to the normal retirement date
 50 19 other than that specified in section 97B.45, subsection 4, is
 50 20 entitled to receive a monthly retirement allowance determined
 50 21 in the same manner as provided for normal retirement in
 50 22 section 97B.49, subsections 1, 4, and 5, sections 97B.49A,
 50 23 97B.49E, and 97B.49G, reduced as follows:
 50 24    a.  For a member who is less than sixty-two years of age,
 50 25 by twenty-five hundredths of one percent per month for each
 50 26 month that the early retirement date precedes the normal
 50 27 retirement date.
 50 28    b.  For a member who is at least sixty-two years of age and
 50 29 who has not completed thirty twenty years of membership
 50 30 service and prior service, by twenty-five hundredths of one
 50 31 percent per month for each month that the early retirement
 50 32 date precedes the normal retirement date.
 50 33    2.  a.  A vested member who retires from the system due to
 50 34 disability and commences receiving disability benefits
 50 35 pursuant to the federal Social Security Act, 42 U.S.C. } 423
 51  1 et seq., and who has not reached the normal retirement date,
 51  2 shall receive benefits under section 97B.49 sections 97B.49A
 51  3 through 97B.49G, as applicable, and shall not have benefits
 51  4 reduced upon retirement as required under subsection 1
 51  5 regardless of whether the member has completed thirty or more
 51  6 years of membership service.  However, the benefits shall be
 51  7 suspended during any period in which the member returns to
 51  8 covered employment.  This section takes effect July 1, 1990,
 51  9 for a member meeting the requirements of this paragraph who
 51 10 retired from the system at any time after July 4, 1953.
 51 11 Eligible members are entitled to the receipt of retroactive
 51 12 adjustment payments back to July 1, 1990, notwithstanding the
 51 13 requirements of subsection 4.
 51 14    b.  A vested member who retires from the system due to
 51 15 disability and commences receiving disability benefits
 51 16 pursuant to the federal Railroad Retirement Act, 45 U.S.C. }
 51 17 231 et seq., and who has not reached the normal retirement
 51 18 date, shall receive benefits under section 97B.49 sections
 51 19 97B.49A through 97B.49G, as applicable, and shall not have
 51 20 benefits reduced upon retirement as required under subsection
 51 21 1 regardless of whether the member has completed thirty or
 51 22 more years of membership service.  However, the benefits shall
 51 23 be suspended during any period in which the member returns to
 51 24 covered employment.  This section takes effect July 1, 1990,
 51 25 for a member meeting the requirements of this paragraph who
 51 26 retired from the system at any time since July 4, 1953.
 51 27 Eligible members are entitled to the receipt of retroactive
 51 28 adjustment payments back to July 1, 1990, notwithstanding the
 51 29 requirements of subsection 4.
 51 30    3.  A member who is at least sixty-two years of age and
 51 31 less than sixty-five years of age, and who has completed
 51 32 thirty twenty or more years of membership service and prior
 51 33 service, shall receive full benefits under section 97B.49
 51 34 sections 97B.49A through 97B.49G, as applicable, determined as
 51 35 if the member had attained sixty-five years of age.
 52  1    4.  A vested member eligible for a retirement allowance
 52  2 adjusted under this section is entitled to receipt of
 52  3 retroactive adjustment payments for no more than six months
 52  4 immediately preceding the month in which written notice of
 52  5 retirement was submitted to the department.
 52  6    Sec. 46.  NEW SECTION.  97B.50A  DISABILITY BENEFITS FOR
 52  7 SPECIAL SERVICE MEMBERS.
 52  8    1.  DEFINITIONS.  For purposes of this section, unless the
 52  9 context otherwise provides:
 52 10    a.  "Member" means a vested member who is classified as a
 52 11 special service member under section 97B.1A, subsection 21, at
 52 12 the time of the alleged disability.
 52 13    b.  "Net disability retirement allowance" means the amount
 52 14 determined by subtracting the amount paid during the previous
 52 15 calendar year by the member for health insurance or similar
 52 16 health care coverage for the member and the member's
 52 17 dependents from the amount of the member's disability
 52 18 retirement allowance paid for that year pursuant to this
 52 19 section.
 52 20    c.  "Reemployment comparison amount" means an amount equal
 52 21 to the current covered wages of an active special service
 52 22 member at the same position on the salary scale within the
 52 23 rank or position the member held at the time the member
 52 24 received a disability retirement allowance pursuant to this
 52 25 section.  If the rank or position held by the member at the
 52 26 time of retirement pursuant to this section is abolished, the
 52 27 amount shall be computed by the department as though the rank
 52 28 or position had not been abolished and salary increases had
 52 29 been granted on the same basis as granted to other ranks or
 52 30 positions by the former employer of the member.  The
 52 31 reemployment comparison amount shall not be less than the
 52 32 three-year average covered wage of the member.
 52 33    2.  IN-SERVICE DISABILITY RETIREMENT ALLOWANCE.
 52 34    a.  A member who is injured in the performance of the
 52 35 member's duties, and otherwise meets the requirements of this
 53  1 subsection shall receive an in-service disability retirement
 53  2 allowance under the provisions of this subsection, in lieu of
 53  3 a monthly retirement allowance as provided in section 97B.49A,
 53  4 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as applicable.
 53  5    b.  Upon application of a member, a member who has become
 53  6 totally and permanently incapacitated for duty in the member's
 53  7 special service occupation as the natural and proximate result
 53  8 of an injury, disease, or exposure occurring or aggravated
 53  9 while in the actual performance of duty shall be eligible to
 53 10 retire under this subsection, provided that the medical board
 53 11 shall certify that the member is mentally or physically
 53 12 incapacitated for further performance of duty, that the
 53 13 incapacity is likely to be permanent, and that the member
 53 14 should be retired.  The department shall make the final
 53 15 determination, based on the medical evidence received, of a
 53 16 member's total and permanent disability.  However, if a
 53 17 person's membership in the system first commenced on or after
 53 18 July 1, 1999, the member shall not be eligible for benefits
 53 19 with respect to a disability which would not exist, but for a
 53 20 medical condition that was known to exist on the date that
 53 21 membership commenced.  A member who is denied a benefit under
 53 22 this subsection, by reason of a finding by the department that
 53 23 the member is not mentally or physically incapacitated for the
 53 24 further performance of duty, shall be entitled to be restored
 53 25 to active service in the same or comparable special service
 53 26 position held by the member immediately prior to the
 53 27 application for disability benefits.
 53 28    c.  Disease under this subsection shall mean heart disease
 53 29 or any disease of the lungs or respiratory tract and shall be
 53 30 presumed to have been contracted while on active duty as a
 53 31 result of strain, exposure, or the inhalation of noxious
 53 32 fumes, poison, or gases.  However, if a person's membership in
 53 33 the system first commenced on or after July 1, 1999, and the
 53 34 heart disease or disease of the lungs or respiratory tract
 53 35 would not exist, but for a medical condition that was known to
 54  1 exist on the date that membership commenced, the presumption
 54  2 established in this paragraph shall not apply.
 54  3    d.  Upon retirement for an in-service disability as
 54  4 provided by this subsection, a member shall receive the
 54  5 greater of a monthly in-service disability retirement
 54  6 allowance calculated under this subsection or a monthly
 54  7 retirement allowance as provided in section 97B.49A, 97B.49B,
 54  8 97B.49C, 97B.49D, or 97B.49G, as applicable.  The monthly in-
 54  9 service disability allowance calculated under this subsection
 54 10 shall consist of an allowance equal to one-twelfth of sixty
 54 11 percent of the member's three-year average covered wage or its
 54 12 actuarial equivalent as provided under section 97B.51.
 54 13    3.  ORDINARY DISABILITY RETIREMENT ALLOWANCE.
 54 14    a.  A member who otherwise meets the requirements of this
 54 15 subsection shall receive an ordinary disability retirement
 54 16 allowance under the provisions of this subsection, in lieu of
 54 17 a monthly retirement allowance as provided in section 97B.49A,
 54 18 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as applicable.
 54 19    b.  Upon application of a member, a member who has become
 54 20 totally and permanently incapacitated for duty in the member's
 54 21 special service occupation shall be eligible to retire under
 54 22 this subsection, provided that the medical board shall certify
 54 23 that the member is mentally or physically incapacitated for
 54 24 further performance of duty, that the incapacity is likely to
 54 25 be permanent, and that the member should be retired.  The
 54 26 department shall make the final determination, based on the
 54 27 medical evidence received, of a member's total and permanent
 54 28 disability.  However, if a person's membership in the system
 54 29 first commenced on or after July 1, 1999, the member shall not
 54 30 be eligible for benefits with respect to a disability which
 54 31 would not exist, but for a medical condition that was known to
 54 32 exist on the date that membership commenced.  A member who is
 54 33 denied a benefit under this subsection, by reason of a finding
 54 34 by the department that the member is not mentally or
 54 35 physically incapacitated for the further performance of duty,
 55  1 shall be entitled to be restored to active service in the same
 55  2 or comparable special service position held by the member
 55  3 immediately prior to the application for disability benefits.
 55  4    c.  Upon retirement for an ordinary disability as provided
 55  5 by this subsection, a member shall receive the greater of a
 55  6 monthly ordinary disability retirement allowance calculated
 55  7 under this subsection or a monthly retirement allowance as
 55  8 provided in section 97B.49A, 97B.49B, 97B.49C, 97B.49D, or
 55  9 97B.49G, as applicable.  The monthly ordinary disability
 55 10 allowance calculated under this subsection shall consist of an
 55 11 allowance equal to one-twelfth of fifty percent of the
 55 12 member's three-year average covered wage or its actuarial
 55 13 equivalent as provided under section 97B.51.
 55 14    4.  WAIVER OF ALLOWANCE.  A member receiving a disability
 55 15 retirement allowance under this section may file an
 55 16 application to receive benefits pursuant to section 97B.50,
 55 17 subsection 2, in lieu of receiving a disability retirement
 55 18 allowance under the provisions of this section, if the member
 55 19 becomes eligible for benefits under section 97B.50, subsection
 55 20 2.  An application to receive benefits pursuant to section
 55 21 97B.50, subsection 2, shall be filed with the department
 55 22 within sixty days of becoming eligible for benefits pursuant
 55 23 to that section or the member shall be ineligible to elect
 55 24 coverage under that section.  On the first of the month
 55 25 following the month in which a member's application is
 55 26 approved by the department, the member's election of coverage
 55 27 under section 97B.50, subsection 2, shall become effective and
 55 28 the member's eligibility to receive a disability retirement
 55 29 allowance pursuant to this section shall cease.  Benefits
 55 30 payable pursuant to section 97B.50, subsection 2, shall be
 55 31 calculated using the option choice the member selected for
 55 32 payment of a disability retirement allowance pursuant to this
 55 33 section.  An application to elect coverage under section
 55 34 97B.50, subsection 2, is irrevocable upon approval by the
 55 35 department.
 56  1    5.  OFFSET TO ALLOWANCE.  Notwithstanding any provisions to
 56  2 the contrary in state law, or any applicable contract or
 56  3 policy, any amounts which may be paid or payable by the
 56  4 employer under the provisions of any workers' compensation,
 56  5 unemployment compensation, or other law to a member, and any
 56  6 disability payments the member receives pursuant to the
 56  7 federal Social Security Act, 42 U.S.C. } 423 et seq., shall be
 56  8 offset against and payable in lieu of any retirement allowance
 56  9 payable pursuant to this section on account of the same
 56 10 disability.
 56 11    6.  REEXAMINATION OF MEMBERS RETIRED ON ACCOUNT OF
 56 12 DISABILITY.
 56 13    a.  Once each year during the first five years following
 56 14 the retirement of a member under this section, and once in
 56 15 every three-year period thereafter, the department may, and
 56 16 upon the member's application shall, require any member
 56 17 receiving an in-service or ordinary disability retirement
 56 18 allowance who has not yet attained the age of fifty-five years
 56 19 to undergo a medical examination as arranged by the medical
 56 20 board.  The examination shall be made by the medical board or
 56 21 by an additional physician or physicians designated by the
 56 22 board.  If any member receiving an in-service or ordinary
 56 23 disability retirement allowance who has not attained the age
 56 24 of fifty-five years refuses to submit to the medical
 56 25 examination, the allowance may be discontinued until the
 56 26 member's withdrawal of the refusal, and should the member's
 56 27 refusal continue for one year, all rights in and to the
 56 28 member's disability retirement allowance shall be revoked by
 56 29 the department.
 56 30    b.  If a member is determined under paragraph "a" to be no
 56 31 longer eligible for in-service or ordinary disability
 56 32 benefits, all benefits paid under this section shall cease.
 56 33 The member shall be eligible to receive benefits calculated
 56 34 under section 97B.49B or 97B.49C, as applicable, when the
 56 35 member reaches age fifty-five.
 57  1    7.  REEMPLOYMENT.
 57  2    a.  If a member receiving a disability retirement allowance
 57  3 is returned to covered employment, the member's disability
 57  4 retirement allowance shall cease, the member shall again
 57  5 become an active member, and shall contribute thereafter at
 57  6 the same rate payable by similarly classified members.  If a
 57  7 member receiving a disability retirement allowance returns to
 57  8 special service employment, then the period of time the member
 57  9 received a disability retirement allowance shall constitute
 57 10 eligible service as defined in section 97B.49B, subsection 1,
 57 11 or section 97B.49C, subsection 1, as applicable.  Upon
 57 12 subsequent retirement, the member's retirement allowance shall
 57 13 be calculated as provided in section 97B.48A.
 57 14    b.  (1)  If a member receiving a disability retirement
 57 15 allowance is engaged in a gainful occupation that is not
 57 16 covered employment, the member's disability retirement
 57 17 allowance shall be reduced, if applicable, as provided in this
 57 18 paragraph.
 57 19    (2)  If the member is engaged in a gainful occupation
 57 20 paying more than the difference between the member's net
 57 21 disability retirement allowance and one and one-half times the
 57 22 reemployment comparison amount for that member, then the
 57 23 amount of the member's disability retirement allowance shall
 57 24 be reduced to an amount such that the member's net disability
 57 25 retirement allowance plus the amount earned by the member
 57 26 shall equal one and one-half times the reemployment comparison
 57 27 amount for that member.
 57 28    (3)  The member shall submit sufficient documentation to
 57 29 the system to permit the system to determine the member's net
 57 30 disability retirement allowance and earnings from a gainful
 57 31 occupation that is not covered employment for the applicable
 57 32 year.
 57 33    (4)  This paragraph does not apply to a member who is at
 57 34 least fifty-five years of age and would have completed a
 57 35 sufficient number of years of service if the member had
 58  1 remained in active special service employment.  For purposes
 58  2 of this subparagraph, a sufficient number of years of service
 58  3 shall be twenty-five for a special service member as described
 58  4 in section 97B.49B or twenty-two years of service for a
 58  5 special service member as described in section 97B.49C.
 58  6    8.  DEATH BENEFITS.  A member who is receiving an in-
 58  7 service or ordinary disability retirement allowance under this
 58  8 section shall be treated as having elected a lifetime monthly
 58  9 retirement allowance with death benefits payable under section
 58 10 97B.52, subsection 2, unless the member elects an optional
 58 11 form of benefit provided under section 97B.51, which shall be
 58 12 actuarially equivalent to the lifetime monthly retirement
 58 13 allowance provided under this section.
 58 14    9.  MEDICAL BOARD.  The system shall designate a medical
 58 15 board to be composed of three physicians from the university
 58 16 of Iowa hospitals and clinics who shall arrange for and pass
 58 17 upon the medical examinations required under the provisions of
 58 18 this section and shall report in writing to the department the
 58 19 conclusions and recommendations upon all matters duly referred
 58 20 to the medical board.  Each report of a medical examination
 58 21 under this section shall include the medical board's findings
 58 22 as to the extent of the member's physical impairment.  Except
 58 23 as required by this section, each report shall be confidential
 58 24 and shall be maintained in accordance with the federal
 58 25 Americans with Disabilities Act, and any other state or
 58 26 federal law containing requirements for confidentiality of
 58 27 medical records.
 58 28    10.  LIABILITY OF THIRD PARTIES – SUBROGATION.
 58 29    a.  If a member receives an injury for which benefits are
 58 30 payable under this section, and if the injury is caused under
 58 31 circumstances creating a legal liability for damages against a
 58 32 third party other than the system, the member or the member's
 58 33 legal representative may maintain an action for damages
 58 34 against the third party.  If a member or a member's legal
 58 35 representative commences such an action, the plaintiff member
 59  1 or representative shall serve a copy of the original notice
 59  2 upon the system not less than ten days before the trial of the
 59  3 action, but a failure to serve the notice does not prejudice
 59  4 the rights of the system, and the following rights and duties
 59  5 ensue:
 59  6    (1)  The system shall be indemnified out of the recovery of
 59  7 damages to the extent of benefit payments made by the system,
 59  8 with legal interest, except that the plaintiff member's
 59  9 attorney fees may be first allowed by the district court.
 59 10    (2)  The system has a lien on the damage claim against the
 59 11 third party and on any judgment on the damage claim for
 59 12 benefits for which the system is liable.  In order to continue
 59 13 and preserve the lien, the system shall file a notice of the
 59 14 lien within thirty days after receiving a copy of the original
 59 15 notice in the office of the clerk of the district court in
 59 16 which the action is filed.
 59 17    b.  If a member fails to bring an action for damages
 59 18 against a third party within thirty days after the system
 59 19 requests the member in writing to do so, the system is
 59 20 subrogated to the rights of the member and may maintain the
 59 21 action against the third party, and may recover damages for
 59 22 the injury to the same extent that the member may recover
 59 23 damages for the injury.  If the system recovers damages in the
 59 24 action, the court shall enter judgment for distribution of the
 59 25 recovery as follows:
 59 26    (1)  A sum sufficient to repay the system for the amount of
 59 27 such benefits actually paid by the system up to the time of
 59 28 the entering of the judgment.
 59 29    (2)  A sum sufficient to pay the system the present worth,
 59 30 computed at the interest rate provided in section 535.3 for
 59 31 court judgments and decrees, of the future payments of such
 59 32 benefits, for which the system is liable, but the sum is not a
 59 33 final adjudication of the future payment which the member is
 59 34 entitled to receive.
 59 35    (3)  Any balance shall be paid to the member.
 60  1    c.  Before a settlement is effective between a system and a
 60  2 third party who is liable for any injury, the member must
 60  3 consent in writing to the settlement; and if the settlement is
 60  4 between the member and a third party, the system must consent
 60  5 in writing to the settlement; or on refusal to consent, in
 60  6 either case, the district court in the county in which either
 60  7 the employer of the member or the system is located must
 60  8 consent in writing to the settlement.
 60  9    d.  For purposes of subrogation under this section, a
 60 10 payment made to an injured member or the member's legal
 60 11 representative, by or on behalf of a third party or the third
 60 12 party's principal or agent, who is liable for, connected with,
 60 13 or involved in causing the injury to the member, shall be
 60 14 considered paid as damages because the injury was caused under
 60 15 circumstances creating a legal liability against the third
 60 16 party, whether the payment is made under a covenant not to
 60 17 sue, compromise settlement, denial of liability, or is
 60 18 otherwise made.
 60 19    11.  A member retired under this section, in order to be
 60 20 eligible for continued receipt of retirement benefits, shall
 60 21 submit to the department any documentation the department may
 60 22 reasonably request which will provide information needed to
 60 23 determine payments to the member under this section.
 60 24    12.  The expenses incurred in the administration of this
 60 25 section by the system shall be paid through additional
 60 26 contributions as determined pursuant to section 97B.49B,
 60 27 subsection 3, or section 97B.49C, subsection 3, as applicable.
 60 28    13.  APPLICABILITY – RETROACTIVITY.
 60 29    a.  This section applies to a member who becomes disabled
 60 30 on or after July 1, 1999, and also applies to a member who
 60 31 becomes disabled prior to July 1, 1999, if the member has not
 60 32 terminated special service employment as of June 30, 1999.
 60 33    b.  To qualify for benefits under this section, a member
 60 34 must file a completed application with the department within
 60 35 one year of the member's termination of employment.  A member
 61  1 eligible for a disability retirement allowance under this
 61  2 section is entitled to receipt of retroactive adjustment
 61  3 payments for no more than six months immediately preceding the
 61  4 month in which the completed application for receipt of a
 61  5 disability retirement allowance under this section is
 61  6 approved.
 61  7    14.  RULES.  The department shall adopt rules pursuant to
 61  8 chapter 17A specifying the application procedure for members
 61  9 pursuant to this section.
 61 10    Sec. 47.  Section 97B.51, subsection 2, Code 1997, is
 61 11 amended to read as follows:
 61 12    2.  The election by a member of the an option stated under
 61 13 subsection 1 of this section or in sections 97B.49A through
 61 14 97B.49G, shall be null and void if the member dies prior to
 61 15 the member's first month of entitlement.
 61 16    Sec. 48.  Section 97B.51, subsection 3, Code 1997, is
 61 17 amended to read as follows:
 61 18    3.  A member who had elected to take the an option stated
 61 19 in subsection 1 of this section or in sections 97B.49A through
 61 20 97B.49G, as applicable, may, at any time prior to retirement,
 61 21 revoke such an election by written notice to the department.
 61 22 A member shall not change or revoke an election once the first
 61 23 retirement allowance is paid.
 61 24    Sec. 49.  Section 97B.51, subsection 5, Code 1997, is
 61 25 amended to read as follows:
 61 26    5.  At retirement, a member may designate that upon the
 61 27 member's death, a specified amount of money shall be paid to a
 61 28 named beneficiary, and the member's monthly retirement
 61 29 allowance shall be reduced by an actuarially determined amount
 61 30 to provide for the lump sum payment.  The amount designated by
 61 31 the member must be in thousand dollar increments and shall be
 61 32 limited to the amount of the member's accumulated
 61 33 contributions.  The amount designated shall not lower the
 61 34 monthly retirement allowance of the member by more than one-
 61 35 half the amount payable under section 97B.49, subsection 1 or
 62  1 5 97B.49A or 97B.49G, as applicable.  A member may designate a
 62  2 different beneficiary if the original named beneficiary
 62  3 predeceases the member.
 62  4    Sec. 50.  Section 97B.52, subsection 1, paragraphs b and c,
 62  5 Code 1997, are amended to read as follows:
 62  6    b.  For service in a protection occupation, as defined in
 62  7 section 97B.49, subsection 16, paragraph "d" 97B.49B, the
 62  8 applicable denominator is twenty-five.
 62  9    c.  For service as a sheriff, deputy sheriff, or airport
 62 10 fire fighter, as provided in section 97B.49, subsection 16,
 62 11 paragraph "b" 97B.49C, the applicable denominator is twenty-
 62 12 two.
 62 13    Sec. 51.  Section 97B.52, subsection 2, Code 1997, is
 62 14 amended to read as follows:
 62 15    2.  If a member dies on or after the first day of the
 62 16 member's first month of entitlement, the excess, if any, of
 62 17 the accumulated contributions by the member as of said date,
 62 18 over the total gross monthly retirement allowances received by
 62 19 the member under the retirement system will be paid to the
 62 20 member's beneficiary unless the retirement allowance is then
 62 21 being paid in accordance with section 97B.48A 97B.48 or with
 62 22 section 97B.51, subsection 1, 4, 5, or 6.
 62 23    Sec. 52.  Section 97B.52, subsection 3, paragraph b, Code
 62 24 1997, is amended to read as follows:
 62 25    b.  If a death benefit is due and payable, interest shall
 62 26 continue to accumulate through the month quarter preceding the
 62 27 month quarter in which payment is made to the designated
 62 28 beneficiary, heirs at law, or the estate unless the payment of
 62 29 the death benefit is delayed because of a dispute between
 62 30 alleged heirs, in which case the benefit due and payable shall
 62 31 be placed in a noninterest bearing escrow account until the
 62 32 beneficiary is determined in accordance with this section.
 62 33    4.  In order to receive the death benefit, the beneficiary,
 62 34 heirs at law, or the estate, or any other third-party payee,
 62 35 must apply to the department within five years of the member's
 63  1 death.
 63  2    The department shall reinstate a designated beneficiary's
 63  3 right to receive a death benefit beyond the five-year
 63  4 limitation if the designated beneficiary was the member's
 63  5 spouse at the time of the member's death and the distribution
 63  6 is required or permitted pursuant to Internal Revenue Code
 63  7 section 401(a)(9) and the applicable treasury regulations.
 63  8    In the event that all, or any portion, of the death benefit
 63  9 payable to the member's designated beneficiary, heirs at law,
 63 10 or estate, shall remain unpaid solely by reason of the
 63 11 inability of the system to locate the payee, the amount
 63 12 payable shall be forfeited after the time for making a claim
 63 13 has run.  However, if the appropriate payee is located after
 63 14 the death benefit is forfeited, the benefit shall be restored.
 63 15    Sec. 53.  Section 97B.52, subsection 4, Code 1997, is
 63 16 amended by striking the subsection.
 63 17    Sec. 54.  Section 97B.52, subsection 5, Code 1997, is
 63 18 amended to read as follows:
 63 19    5.  Following written notification to the department, a
 63 20 beneficiary of a deceased member may waive current and future
 63 21 rights to payments to which the beneficiary would otherwise be
 63 22 entitled under section 97B.51, subsections 5 and 6, and this
 63 23 section.  Upon receipt of the waiver, the department shall pay
 63 24 the amount designated to be received by that beneficiary to
 63 25 the member's other surviving beneficiary or beneficiaries or
 63 26 to the estate of the deceased member, as elected by the
 63 27 beneficiary in the waiver.  If the payments being waived are
 63 28 payable to the member's estate and an estate is not probated,
 63 29 the payments shall be paid to the deceased member's surviving
 63 30 spouse, or if there is no surviving spouse, to the member's
 63 31 heirs other than the beneficiary who waived the payments.
 63 32    Sec. 55.  Section 97B.52A, subsection 1, Code 1997, is
 63 33 amended to read as follows:
 63 34    1.  Effective January 1, 1995, a A member has a bona fide
 63 35 retirement when the member terminates all employment covered
 64  1 under the chapter or formerly covered under the chapter
 64  2 pursuant to section 97B.42, files a completed application for
 64  3 benefits form with the department, survives into the month for
 64  4 which benefits are first payable, and meets the following
 64  5 applicable requirement:
 64  6    a.  For a member whose first month of entitlement is prior
 64  7 to July 1, 1998, the member does not return to covered
 64  8 employment as defined in this chapter until the member has
 64  9 qualified for no fewer than four calendar months of retirement
 64 10 benefits.
 64 11    b.  For a member whose first month of entitlement is July
 64 12 1998 or later, the member does not return to any employment
 64 13 with a covered employer until the member has qualified for no
 64 14 fewer than four calendar months of retirement benefits.
 64 15    Sec. 56.  Section 97B.52A, subsection 3, Code 1997, is
 64 16 amended to read as follows:
 64 17    3.  A member whose first month of entitlement is before
 64 18 July 1998 and who terminates covered employment but maintains
 64 19 an employment relationship with an employer that made
 64 20 contributions to the system on the member's behalf does not
 64 21 have a bona fide retirement until all employment, including
 64 22 employment which is not covered by this chapter, with such
 64 23 employer is terminated for at least thirty days.  In order to
 64 24 receive retirement benefits, the member must file a completed
 64 25 application for benefits form with the department before
 64 26 returning to any employment with the same employer.
 64 27    Sec. 57.  Section 97B.53, subsection 1, Code 1997, is
 64 28 amended to read as follows:
 64 29    1.  Upon the termination of employment with the employer
 64 30 prior to retirement other than by death of a member, the
 64 31 accumulated contributions by the member and, for a vested
 64 32 member, the accumulated employer contributions for the vested
 64 33 member at the date of the termination may be paid to the
 64 34 member upon application, except as provided in subsections 2,
 64 35 5, and 6.  For the purpose of this subsection, the
 65  1 "accumulated employer contributions" is an amount equal to the
 65  2 total obtained as of any date, by accumulating each individual
 65  3 contribution by the employer for the member with interest plus
 65  4 interest dividends as provided in section 97B.70, for all
 65  5 completed calendar years and for any completed calendar year
 65  6 for which the interest dividend has not been declared and for
 65  7 completed months of partially completed calendar years,
 65  8 compounded as provided in section 97B.70 multiplied by a
 65  9 fraction of years of service for that member as defined in
 65 10 section 97B.49A, 97B.49B, or 97B.49C.
 65 11    Sec. 58.  Section 97B.53, subsection 2, Code 1997, is
 65 12 amended to read as follows:
 65 13    2.  If a vested member's employment is terminated prior to
 65 14 the member's retirement, other than by death, the member may
 65 15 receive a monthly retirement allowance commencing on the first
 65 16 day of the month in which the member attains the age of sixty-
 65 17 five years, if the member is then alive, or, if the member so
 65 18 elects in accordance with section 97B.47, commencing on the
 65 19 first day of the month in which the member attains the age of
 65 20 fifty-five or any month thereafter prior to the date the
 65 21 member attains the age of sixty-five years, and continuing on
 65 22 the first day of each month thereafter during the member's
 65 23 lifetime, provided the member does not receive prior to the
 65 24 date the member's retirement allowance is to commence a refund
 65 25 of accumulated contributions under any of the provisions of
 65 26 this chapter.  The amount of each such monthly retirement
 65 27 allowance shall be determined as provided in either section
 65 28 97B.49 sections 97B.49A through 97B.49G, or in section 97B.50,
 65 29 whichever is applicable.
 65 30    Sec. 59.  Section 97B.53, subsection 3, Code 1997, is
 65 31 amended to read as follows:
 65 32    3.  The accumulated contributions account of a terminated,
 65 33 vested member shall be credited with interest, including
 65 34 interest dividends, in the manner provided in section 97B.70.
 65 35 Interest and interest dividends shall be credited to the
 66  1 accumulated contributions of members who terminate service and
 66  2 subsequently become vested in accordance with section 97B.70.
 66  3    Sec. 60.  Section 97B.53, subsection 6, Code 1997, is
 66  4 amended to read as follows:
 66  5    6.  A member who terminates employment before the member is
 66  6 vested and who does not claim and receive a refund of the
 66  7 member's accumulated contributions within ten years of the
 66  8 date of termination shall, if the member makes claim for a
 66  9 refund more than ten years after the date of termination, be
 66 10 required to submit proof satisfactory to the department of the
 66 11 member's entitlement to the refund.  Interest and interest
 66 12 dividends on the accumulated contributions shall only be
 66 13 credited if provided in accordance with section 97B.70.  The
 66 14 department is under no obligation to maintain the accumulated
 66 15 contribution accounts of such former members for more than ten
 66 16 years after their dates of termination.  The system is under
 66 17 no obligation to maintain the accumulated contribution account
 66 18 of a member who terminates covered employment prior to
 66 19 December 31, 1998, if the member was not vested at the time of
 66 20 termination.  A person who made contributions to the abolished
 66 21 system, who is entitled to a refund in accordance with the
 66 22 provisions of this chapter, and who has not claimed and
 66 23 received such a refund prior to January 1, 1964, shall, if the
 66 24 person makes a claim for refund after January 1, 1964, be
 66 25 required to submit proof satisfactory to the department of the
 66 26 person's entitlement to the refund.  The department is under
 66 27 no obligation to maintain the contribution accounts of such
 66 28 persons after January 1, 1964.
 66 29    Sec. 61.  Section 97B.70, subsection 3, Code 1997, is
 66 30 amended to read as follows:
 66 31    3.  Interest and interest dividends shall be credited to
 66 32 the accumulated contributions accounts of active members, and
 66 33 inactive vested members, and, effective January 1, 1999, to
 66 34 inactive nonvested members, until the first of the month
 66 35 coinciding with or next following the member's retirement date
 67  1 quarter prior to the quarter in which the member's first
 67  2 retirement allowance is paid or in which the member is issued
 67  3 a refund under section 97B.53, or in which a death benefit is
 67  4 issued.
 67  5    Sec. 62.  Section 97B.70, subsection 4, Code 1997, is
 67  6 amended to read as follows:
 67  7    4.  Interest Prior to January 1, 1999, interest and
 67  8 interest dividends shall be credited to the accumulated
 67  9 contributions account of a person who leaves the contributions
 67 10 in the retirement fund upon termination from covered
 67 11 employment prior to achieving vested status, but who
 67 12 subsequently achieves vested status returns to covered
 67 13 employment.  The Upon return to covered employment but prior
 67 14 to January 1, 1999, interest and interest dividends shall be
 67 15 credited to the accumulated contributions account of the
 67 16 person commencing upon the date on which the person becomes a
 67 17 vested member has covered wages.
 67 18    5.  Interest and interest dividends shall cease upon the
 67 19 first of the month coinciding with or next following the
 67 20 person's retirement date.  If the department no longer
 67 21 maintains the accumulated contribution account of the person
 67 22 pursuant to section 97B.53 this chapter, but the person
 67 23 submits satisfactory proof to the department that the person
 67 24 did make the contributions, the department shall credit
 67 25 interest and interest dividends in the manner provided in this
 67 26 subsection 4.
 67 27    Sec. 63.  Section 97B.72, Code 1997, is amended to read as
 67 28 follows:
 67 29    97B.72  MEMBERS OF GENERAL ASSEMBLY – APPROPRIATION.
 67 30    1.  Persons who are members of the Seventy-first General
 67 31 Assembly or a succeeding general assembly who submit proof to
 67 32 the department of membership in the general assembly during
 67 33 any period beginning July 4, 1953, may make contributions to
 67 34 the system for all or a portion of the period of service in
 67 35 the general assembly, and receive credit for the applicable
 68  1 period for which contributions are made.  The contributions
 68  2 made by the member shall be equal to the accumulated
 68  3 contributions as defined in section 97B.41, subsection 2,
 68  4 which would have been made if the member of the general
 68  5 assembly had been a member of the system during the applicable
 68  6 period.  The proof of membership in the general assembly and
 68  7 payment of accumulated contributions as provided by this
 68  8 section shall be transmitted to the department.  A member
 68  9 making contributions pursuant to this section may make the
 68 10 contributions either for the entire applicable period of
 68 11 service, or for portions of the period of service, and if
 68 12 contributions are made for portions of the period of service,
 68 13 the contributions shall be in increments of one or more
 68 14 calendar quarters.
 68 15    2.  The contributions required to be made for purposes of
 68 16 this section shall be determined as follows:
 68 17    a.  For a member making contributions for a purchase of
 68 18 additional service prior to July 1, 1999, the member shall
 68 19 make contributions in an amount equal to the accumulated
 68 20 contributions as defined in section 97B.41, subsection 2,
 68 21 which would have been made if the member of the general
 68 22 assembly had been a member of the system during the applicable
 68 23 period of service in the general assembly.  There is
 68 24 appropriated from moneys available to the general assembly
 68 25 under section 2.12 an amount sufficient to pay the
 68 26 contributions pursuant to this paragraph, of the employer
 68 27 based on the period of service for which the members have paid
 68 28 accumulated contributions, in an amount equal to the
 68 29 contributions which would have been made if the members of the
 68 30 general assembly who made employee contributions had been
 68 31 members of the system during the applicable period of service
 68 32 in the general assembly, plus interest and interest dividends
 68 33 at the rate provided in section 97B.70 for all completed
 68 34 calendar years, and for any completed calendar year for which
 68 35 the interest dividend has not been declared and for completed
 69  1 months of partially completed calendar years, compounded as
 69  2 provided in section 97B.70.
 69  3    b.  For a member making contributions for a purchase of
 69  4 additional service on or after July 1, 1999, the member shall
 69  5 make contributions in an amount equal to forty percent of the
 69  6 actuarial cost of the service purchase.  There is also
 69  7 appropriated from moneys available to the general assembly
 69  8 under section 2.12 an amount sufficient to pay sixty percent
 69  9 of the actuarial cost of the service purchase by a member
 69 10 pursuant to this paragraph.  For purposes of this paragraph,
 69 11 the actuarial cost of the service purchase is an amount
 69 12 determined by the department in accordance with actuarial
 69 13 tables, as reported to the department by the system's actuary,
 69 14 which reflects the actuarial cost necessary to fund an
 69 15 increased retirement allowance resulting from the purchase of
 69 16 additional service.
 69 17    3.  However, the department shall ensure that the member,
 69 18 in exercising an option provided in this section, does not
 69 19 exceed the amount of annual additions to a member's account
 69 20 permitted pursuant to section 415 of the federal Internal
 69 21 Revenue Code.
 69 22    Sec. 64.  Section 97B.72A, Code 1997, is amended to read as
 69 23 follows:
 69 24    97B.72A  FORMER LEGISLATIVE SERVICE – APPROPRIATION.
 69 25    1.  A vested or retired member of the system who was a
 69 26 member of the general assembly prior to July 1, 1988, may make
 69 27 contributions to the system for all or a portion of the period
 69 28 of service in the general assembly.  The contributions made by
 69 29 the member shall be equal to the accumulated contributions as
 69 30 defined in section 97B.41, subsection 2, which would have been
 69 31 made if the member of the general assembly had been a member
 69 32 of the system during the applicable period of service in the
 69 33 general assembly.  A member making contributions pursuant to
 69 34 this section may make the contributions either for the entire
 69 35 applicable period of service, or for portions of the period of
 70  1 service, and if contributions are made for portions of the
 70  2 period of service, the contributions shall be in increments of
 70  3 one or more calendar quarters.  The member of the system shall
 70  4 submit proof to the department of membership in the general
 70  5 assembly.  The department shall credit the member with the
 70  6 period of membership service for which contributions are made.
 70  7    2.  The contributions required to be made for purposes of
 70  8 this section shall be determined as follows:
 70  9    a.  For a member making contributions for a purchase of
 70 10 additional service prior to July 1, 1999, the contributions
 70 11 made by the member shall be equal to the accumulated
 70 12 contributions as defined in section 97B.41, subsection 2,
 70 13 which would have been made if the member of the general
 70 14 assembly had been a member of the system during the applicable
 70 15 period of service in the general assembly.  There is
 70 16 appropriated from the general fund of the state to the
 70 17 department an amount sufficient to pay the contributions of
 70 18 the employer based on the period of service of members of the
 70 19 general assembly for which the member paid accumulated
 70 20 contributions under this section pursuant to this paragraph.
 70 21 The amount appropriated is equal to the employer contributions
 70 22 which would have been made if the members of the system who
 70 23 made employee contributions had been members of the system
 70 24 during the period for which they made employee contributions,
 70 25 plus interest at the rate provided in section 97B.70 for each
 70 26 year compounded as provided in section 97B.70.
 70 27    b.  For a member making contributions for a purchase of
 70 28 additional service on or after July 1, 1999, the member shall
 70 29 make contributions in an amount equal to forty percent of the
 70 30 actuarial cost of the service purchase.  There is also
 70 31 appropriated from the general fund of the state to the
 70 32 department an amount sufficient to pay sixty percent of the
 70 33 actuarial cost of the service purchase by a member pursuant to
 70 34 this paragraph.  For purposes of this paragraph, the actuarial
 70 35 cost of the service purchase is an amount determined by the
 71  1 department in accordance with actuarial tables, as reported to
 71  2 the department by the system's actuary, which reflects the
 71  3 actuarial cost necessary to fund an increased retirement
 71  4 allowance resulting from the purchase of additional service.
 71  5    2. 3.  However, the department shall ensure that the
 71  6 member, in exercising an option provided in this section, does
 71  7 not exceed the amount of annual additions to a member's
 71  8 account permitted pursuant to section 415 of the federal
 71  9 Internal Revenue Code.
 71 10    Sec. 65.  Section 97B.73, Code 1997, is amended to read as
 71 11 follows:
 71 12    97B.73  MEMBERS FROM OTHER PUBLIC SYSTEMS.
 71 13    1.  A vested or retired member who has one or more full
 71 14 calendar years of covered wages who was in public employment
 71 15 comparable to employment covered under this chapter in another
 71 16 state or in the federal government, or who was a member of
 71 17 another public retirement system in this state, including but
 71 18 not limited to the teachers insurance annuity association-
 71 19 college retirement equities fund, but who was not retired
 71 20 under that system, upon submitting verification of membership
 71 21 and service in the other public system to the department,
 71 22 including proof that the member has no further claim upon a
 71 23 retirement benefit from that other public system, may make
 71 24 employer and employee contributions as provided by this
 71 25 section to the system either for the entire period of service
 71 26 in the other public system, or for partial service in the
 71 27 other public system in increments of one or more calendar
 71 28 quarters.  If the member wishes to transfer only a portion of
 71 29 the service value of another public system to this system and
 71 30 the other public system allows a partial withdrawal of a
 71 31 member's system credits, the member shall receive credit for
 71 32 membership service in this system equivalent to the period of
 71 33 service transferred from the other public system.  The
 71 34    2.  The contributions required to be made for purposes of
 71 35 this section shall be determined as follows:
 72  1    a.  For a member making contributions for a purchase of
 72  2 additional service prior to July 1, 1999, the contribution
 72  3 payable, representing both employee and employer
 72  4 contributions, shall be based upon the member's covered wages
 72  5 for the most recent full calendar year at the applicable rates
 72  6 in effect for that calendar year under sections 97B.11,
 72  7 97B.49B, 97B.49C, and 97B.49 97B.49G and multiplied by the
 72  8 member's years of service in other public employment.  If the
 72  9 member's most recent covered wages were earned prior to the
 72 10 most recent calendar year, the member's covered wages shall be
 72 11 adjusted by the department by an inflation factor to reflect
 72 12 changes in the economy since the covered wages were earned.
 72 13    b.  For a member making contributions for a purchase of
 72 14 additional service on or after July 1, 1999, the member shall
 72 15 make contributions in an amount equal to the actuarial cost of
 72 16 the service purchase.  For purposes of this paragraph, the
 72 17 actuarial cost of the service purchase is an amount determined
 72 18 by the department in accordance with actuarial tables, as
 72 19 reported to the department by the system's actuary, which
 72 20 reflects the actuarial cost necessary to fund an increased
 72 21 retirement allowance resulting from the purchase of additional
 72 22 service.
 72 23    3.  This section is applicable to a vested or retired
 72 24 member who was a member of a public retirement system
 72 25 established in sections 294.8, 294.9, and 294.10 but was not
 72 26 retired under that system.
 72 27    Notwithstanding any provision of this section to the
 72 28 contrary, effective July 1, 1994, a vested or retired member
 72 29 must have membership service within the current calendar year
 72 30 in order to make contributions in any manner provided by this
 72 31 section.
 72 32    4.  A member entitled to a benefit from another public
 72 33 system must waive, on a form provided by the Iowa public
 72 34 employees' retirement system, all rights to a retirement
 72 35 benefit under the other public system before receiving credit
 73  1 in this system for the years of service in the other public
 73  2 system.  The waiver must be accepted by the other public
 73  3 system.
 73  4    5.  Effective July 1, 1988, a member eligible for an
 73  5 increased retirement allowance because of the payment of
 73  6 contributions under this section is entitled to receipt of
 73  7 retroactive adjustment payments for no more than six months
 73  8 immediately preceding the month in which written notice was
 73  9 submitted to the department the member pays contributions
 73 10 under this section.
 73 11    6.  Effective July 1, 1998, a purchase of service made in
 73 12 accordance with this section by a retired reemployed member
 73 13 shall be applied to either the member's original retirement
 73 14 allowance, or to the member's reemployment service, whichever
 73 15 is more beneficial to the member.  If applied to a member's
 73 16 original retirement allowance, or to the member's reemployment
 73 17 service after the retirement allowance payments for such
 73 18 service begin, the member is eligible to receive retroactive
 73 19 adjustment payments for no more than six months prior to
 73 20 completion of the purchase.
 73 21    7.  However, the department shall ensure that the member,
 73 22 in exercising an option provided in this section, does not
 73 23 exceed the amount of annual additions to a member's account
 73 24 permitted pursuant to section 415 of the federal Internal
 73 25 Revenue Code.
 73 26    Sec. 66.  Section 97B.73A, Code 1997, is amended to read as
 73 27 follows:
 73 28    97B.73A  PART-TIME COUNTY ATTORNEYS.
 73 29    1.  A part-time county attorney may elect in writing to the
 73 30 department to make employee contributions to the system for
 73 31 the county attorney's previous service as a county attorney
 73 32 and receive credit for membership service in the system for
 73 33 the applicable period of service as a part-time county
 73 34 attorney for which employee contributions are made.  The
 73 35 contributions paid by the member shall be equal to the
 74  1 accumulated contributions, as defined in section 97B.41,
 74  2 subsection 2, for the applicable period of membership service.
 74  3 A member making contributions pursuant to this section may
 74  4 make the contributions either for the entire applicable period
 74  5 of service, or for portions of the period of service, and if
 74  6 contributions are made for portions of the period of service,
 74  7 the contributions shall be in increments of one or more
 74  8 calendar quarters.
 74  9    2.  The contributions required to be made for purposes of
 74 10 this section shall be determined as follows:
 74 11    a.  For a member making contributions for a purchase of
 74 12 additional service prior to July 1, 1999, the contributions
 74 13 paid by the member shall be equal to the accumulated
 74 14 contributions, as defined in section 97B.41, subsection 2, for
 74 15 the applicable period of membership service.  A member who
 74 16 elects to make contributions under this section pursuant to
 74 17 this paragraph shall notify the applicable county board of
 74 18 supervisors of the member's election, and the county board of
 74 19 supervisors shall pay to the department the employer
 74 20 contributions that would have been contributed by the employer
 74 21 under section 97B.11, plus interest on the contributions that
 74 22 would have accrued if the county attorney had been a member of
 74 23 the system for the applicable period of service.
 74 24    b.  For a member making contributions for a purchase of
 74 25 additional service on or after July 1, 1999, the member shall
 74 26 make contributions in an amount equal to forty percent of the
 74 27 actuarial cost of the service purchase.  Upon notification of
 74 28 the applicable county board of supervisors of the member's
 74 29 election, the county board of supervisors shall pay to the
 74 30 department an amount sufficient to pay sixty percent of the
 74 31 actuarial cost of the service purchase by a member pursuant to
 74 32 this paragraph.  For purposes of this paragraph, the actuarial
 74 33 cost of the service purchase is an amount determined by the
 74 34 department in accordance with actuarial tables, as reported to
 74 35 the department by the system's actuary, which reflects the
 75  1 actuarial cost necessary to fund an increased retirement
 75  2 allowance resulting from the purchase of additional service.
 75  3    3.  Effective July 1, 1988, a member eligible for an
 75  4 increased retirement allowance because of the payment of
 75  5 contributions under this section is entitled to receipt of
 75  6 retroactive adjustment payments for no more than six months
 75  7 immediately preceding the month in which written notice was
 75  8 submitted to the department.
 75  9    4.  However, the department shall ensure that the member,
 75 10 in exercising an option provided in this section, does not
 75 11 exceed the amount of annual additions to a member's account
 75 12 permitted pursuant to section 415 of the federal Internal
 75 13 Revenue Code.
 75 14    Sec. 67.  Section 97B.74, Code 1997, is amended to read as
 75 15 follows:
 75 16    97B.74  REINSTATEMENT AS A VESTED MEMBER (BUY-BACK).
 75 17    1.  A vested or retired member who was a member of the
 75 18 system at any time on or after July 4, 1953, and who received
 75 19 a refund of the member's contributions for that period of
 75 20 membership service, may elect in writing to the department to
 75 21 make contributions to the system for all or a portion of the
 75 22 period of membership service for which a refund of
 75 23 contributions was made, and receive credit for the period of
 75 24 membership service for which contributions are made.  The
 75 25 contributions repaid by the member for such service shall be
 75 26 equal to the accumulated contributions, as defined in section
 75 27 97B.41, subsection 2, received by the member for the
 75 28 applicable period of membership service, plus interest on the
 75 29 accumulated contributions for the applicable period, from the
 75 30 date of receipt by the member to the date of repayment, at the
 75 31 interest rate provided in section 97B.70 applicable for each
 75 32 year compounded as provided in section 97B.70.
 75 33    A member making contributions pursuant to this section may
 75 34 make the contributions either for the entire applicable period
 75 35 of service, or for portions of the period of service, and if
 76  1 contributions are made for portions of the period of service,
 76  2 the contributions shall be in increments of one or more
 76  3 calendar quarters.
 76  4    2.  The contributions required to be made for purposes of
 76  5 this section shall be determined as follows:
 76  6    a.  For a member making contributions for a purchase of
 76  7 additional service prior to July 1, 1999, the contributions to
 76  8 be repaid by the member for such service shall be equal to the
 76  9 accumulated contributions, as defined in section 97B.41,
 76 10 subsection 2, received by the member for the applicable period
 76 11 of membership service, plus interest on the accumulated
 76 12 contributions for the applicable period, from the date of
 76 13 receipt by the member to the date of repayment, at the
 76 14 interest rate provided in section 97B.70 applicable for each
 76 15 year compounded as provided in section 97B.70.
 76 16    b.  For a member making contributions for a purchase of
 76 17 additional service on or after July 1, 1999, the member shall
 76 18 make contributions in an amount equal to the actuarial cost of
 76 19 the service purchase.  For purposes of this paragraph, the
 76 20 actuarial cost of the service purchase is an amount determined
 76 21 by the department in accordance with actuarial tables, as
 76 22 reported to the department by the system's actuary, which
 76 23 reflects the actuarial cost necessary to fund an increased
 76 24 retirement allowance resulting from the purchase of additional
 76 25 service.
 76 26    3.  Effective July 1, 1988, a member eligible for an
 76 27 increased retirement allowance because of the payment of
 76 28 contributions under this section is entitled to receipt of
 76 29 retroactive adjustment payments for no more than six months
 76 30 immediately preceding the month in which written notice was
 76 31 submitted to the department.
 76 32    Sec. 68.  Section 97B.80, Code Supplement 1997, is amended
 76 33 to read as follows:
 76 34    97B.80  VETERAN'S CREDIT.
 76 35    1.  Effective July 1, 1992, a vested or retired member, who
 77  1 has one or more full calendar years of covered wages and who
 77  2 at any time served on active duty in the armed forces of the
 77  3 United States, upon submitting verification of the dates of
 77  4 the active duty service, may make employer and employee
 77  5 contributions to the system based upon the member's covered
 77  6 wages for the most recent full calendar year in which the
 77  7 member had reportable wages at the applicable rates in effect
 77  8 for that year under sections 97B.11 and 97B.49, for all or a
 77  9 portion of the period of time of the active duty service, in
 77 10 increments of one or more calendar quarters, and receive
 77 11 credit for membership service and prior service for the period
 77 12 of time for which the contributions are made.
 77 13    2.  The contributions required to be made for purposes of
 77 14 this section shall be determined as follows:
 77 15    a.  For a member making contributions for a purchase of
 77 16 additional service prior to July 1, 1999, the contributions to
 77 17 be paid, representing both employer and employee
 77 18 contributions, shall be based upon the member's covered wages
 77 19 for the most recent full calendar year in which the member had
 77 20 reportable wages at the applicable rates in effect for that
 77 21 year under sections 97B.11, 97B.49B, 97B.49C, and 97B.49G.  If
 77 22 the member's most recent covered wages were earned prior to
 77 23 the most recent calendar year, the member's covered wages
 77 24 shall be adjusted by the department by an inflation factor to
 77 25 reflect changes in the economy.
 77 26    b.  For a member making contributions for a purchase of
 77 27 additional service on or after July 1, 1999, the member shall
 77 28 make contributions in an amount equal to the actuarial cost of
 77 29 the service purchase.  For purposes of this paragraph, the
 77 30 actuarial cost of the service purchase is an amount determined
 77 31 by the department in accordance with actuarial tables, as
 77 32 reported to the department by the system's actuary, which
 77 33 reflects the actuarial cost necessary to fund an increased
 77 34 retirement allowance resulting from the purchase of additional
 77 35 service.
 78  1    3.  The department shall adjust benefits for a six-month
 78  2 period prior to the date the member pays contributions under
 78  3 this section if the member is receiving a retirement allowance
 78  4 at the time the contribution payment is made.  Verification of
 78  5 active duty service and payment of contributions shall be made
 78  6 to the department.  However, a member is not eligible to make
 78  7 contributions under this section if the member is receiving,
 78  8 is eligible to receive, or may in the future be eligible to
 78  9 receive retirement pay from the United States government for
 78 10 active duty in the armed forces, except for retirement pay
 78 11 granted by the United States government under retired pay for
 78 12 nonregular service pursuant to 10 U.S.C. } 12731–12739.  A
 78 13 member receiving retired pay for nonregular service who makes
 78 14 contributions under this section shall provide information
 78 15 required by the department documenting time periods covered
 78 16 under retired pay for nonregular service.
 78 17    Notwithstanding any provision of this section to the
 78 18 contrary, effective July 1, 1994, a vested or retired member
 78 19 must have membership service within the current calendar year
 78 20 in order to make contributions in any manner provided by this
 78 21 section.
 78 22    4.  Effective July 1, 1998, a purchase of service made in
 78 23 accordance with this section by a retired reemployed member
 78 24 shall be applied to either the member's original retirement
 78 25 allowance, or to the member's reemployment service, whichever
 78 26 is more beneficial to the member.  If applied to the member's
 78 27 original retirement allowance, or to the member's reemployment
 78 28 service after the retirement allowance payments for such
 78 29 service begin, the member is eligible to receive retroactive
 78 30 adjustment payments for no more than six months prior to
 78 31 completion of the purchase.
 78 32    5.  However, the department shall ensure that the member,
 78 33 in exercising an option provided in this section, does not
 78 34 exceed the amount of annual additions to a member's account
 78 35 permitted pursuant to section 415 of the federal Internal
 79  1 Revenue Code.
 79  2    Sec. 69.  NEW SECTION.  97B.81  LEAVES OF ABSENCE.
 79  3    1.  A vested member on an approved leave of absence which
 79  4 does not constitute service as defined in section 97B.1A,
 79  5 subsection 19, which is granted on or after July 1, 1998, may
 79  6 make contributions to the system for all or a portion of the
 79  7 leave of absence, and shall receive service credit for the
 79  8 period of time for which the contributions are made.
 79  9    2.  The contributions required to be made for purposes of
 79 10 this section shall be determined as follows:
 79 11    a.  For a member making contributions for a purchase of
 79 12 additional service prior to July 1, 1999, the contributions to
 79 13 be paid, representing both employer and employee
 79 14 contributions, shall be based upon the member's covered wages
 79 15 for the most recent full calendar year in which the member had
 79 16 covered wages at the applicable rates in effect for that
 79 17 calendar year under sections 97B.11, 97B.49B, 97B.49C, and
 79 18 97B.49G.  If the member's most recent covered wages were
 79 19 earned prior to the most recent calendar year, the member's
 79 20 covered wages shall be adjusted by the department by an
 79 21 inflation factor to reflect changes in the economy.
 79 22    b.  For a member making contributions for a purchase of
 79 23 additional service on or after July 1, 1999, the member shall
 79 24 make contributions in an amount equal to the actuarial cost of
 79 25 the service purchase.  For purposes of this paragraph, the
 79 26 actuarial cost of the service purchase is an amount determined
 79 27 by the department in accordance with actuarial tables, as
 79 28 reported to the department by the system's actuary, which
 79 29 reflects the actuarial cost necessary to fund an increased
 79 30 retirement allowance resulting from the purchase of additional
 79 31 service.
 79 32    3.  A member shall not be entitled to purchase the service
 79 33 credit, however, if the member is entitled to receive a
 79 34 retirement benefit from another public retirement system for
 79 35 the same period of time.  A member entitled to a benefit from
 80  1 another public system must waive, on a form provided by the
 80  2 Iowa public employees' retirement system, all rights to a
 80  3 retirement benefit under the other public system before
 80  4 receiving credit in this system for any period of service in
 80  5 the other public system.  The waiver must be accepted by the
 80  6 other public system.
 80  7    4.  However, the department shall ensure that the member,
 80  8 in exercising an option provided by this section, does not
 80  9 exceed the amount of annual additions to a member's account
 80 10 permitted pursuant to section 415 of the federal Internal
 80 11 Revenue Code.
 80 12    Sec. 70.  Section 97D.3, subsection 2, Code 1997, is
 80 13 amended to read as follows:
 80 14    2.  Upon a favorable vote in the referendum and
 80 15 notwithstanding sections 97A.3 and 411.3, all persons newly
 80 16 hired as peace officers, as defined in section 97A.1, police
 80 17 officers, and fire fighters after July 1, 1991, shall be
 80 18 members of the Iowa public employees' retirement system under
 80 19 chapter 97B, rather than members of retirement systems under
 80 20 chapters 97A and 411.  Such members shall have federal social
 80 21 security coverage in addition to coverage under the Iowa
 80 22 public employees' retirement system and shall have the same
 80 23 benefits as county sheriffs and deputy sheriffs under section
 80 24 97B.49, subsection 16, paragraph "b" 97B.49C or 97B.49G, as
 80 25 applicable.
 80 26    Sec. 71.  Section 509A.13A, subsection 1, paragraph b,
 80 27 subparagraph (2), Code 1997, is amended to read as follows:
 80 28    (2)  The eligible retired state employee has received
 80 29 retirement benefits under the retirement system established in
 80 30 chapter 97B based upon any of the following:
 80 31    (a)  Meeting the requirements for receiving retirement
 80 32 benefits pursuant to chapter 97B based upon having attained at
 80 33 least sixty-two years of age and upon having completed at
 80 34 least thirty years of membership service.
 80 35    (b)  Meeting the requirements for receiving benefits under
 81  1 section 97B.49, subsection 16, without a reduction for years
 81  2 of service pursuant to section 97B.49, subsection 16,
 81  3 paragraph "c".
 81  4    Sec. 72.  Section 602.1611, subsection 3, Code 1997, is
 81  5 amended to read as follows:
 81  6    3.  Magistrates may elect to shall be members of the Iowa
 81  7 public employees' retirement system upon filing in writing
 81  8 with the department of personnel unless the magistrate elects
 81  9 out of coverage under the Iowa public employees' retirement
 81 10 system as provided in section 97B.41, subsection 8, paragraph
 81 11 "b," subparagraph (8) 97B.42A.
 81 12    Sec. 73.  Section 602.11115, subsection 2, Code 1997, is
 81 13 amended to read as follows:
 81 14    2.  To commence coverage under the judicial retirement
 81 15 system pursuant to article 9, part 1, effective July 1, 1984,
 81 16 but to become an inactive member of the Iowa public employees'
 81 17 retirement system pursuant to chapter 97B and remain eligible
 81 18 for benefits under section 97B.49 sections 97B.49A through
 81 19 97B.49H for the period of membership service under chapter
 81 20 97B.
 81 21    Sec. 74.  Section 724.6, subsection 2, Code 1997, is
 81 22 amended to read as follows:
 81 23    2.  Notwithstanding subsection 1, fire fighters, as defined
 81 24 in section 411.1, subsection 9, airport fire fighters included
 81 25 under section 97B.49, subsection 16, paragraph "b",
 81 26 subparagraph (2) 97B.49C, emergency rescue technicians, and
 81 27 emergency medical care providers, as defined in section
 81 28 147A.1, shall not, as a condition of employment, be required
 81 29 to obtain a permit under this section.  However, the
 81 30 provisions of this subsection shall not apply to a person
 81 31 designated as an arson investigator by the chief fire officer
 81 32 of a political subdivision.
 81 33    Sec. 75.  Sections 97B.12 and 97B.20, Code 1997, are
 81 34 repealed.
 81 35    Sec. 76.  Section 97B.49, Code Supplement 1997, is
 82  1 repealed.
 82  2    Sec. 77.  EFFECTIVE DATE – APPLICABILITY.
 82  3    a.  Section 19, amending section 97B.41, subsection 8, is
 82  4 effective January 1, 1999, and is applicable to persons hired
 82  5 on and after that date.
 82  6    b.  The portion of section 27 that amends section 97B.45,
 82  7 subsections 1, 2, and 3, and section 45, amending section
 82  8 97B.50, are effective January 1, 1999, and apply to members
 82  9 retiring on or after January 1, 1999.
 82 10    Sec. 78.  EFFECTIVE DATE.  Section 57 of this Act, amending
 82 11 section 97B.53, subsection 1, takes effect July 1, 1999.
 82 12    Sec. 79.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.
 82 13 Section 71 of this Act, amending section 509A.13A, subsection
 82 14 1, paragraph "b", being deemed of immediate importance, takes
 82 15 effect upon enactment and is retroactively applicable to July
 82 16 1, 1994, and is applicable on and after that date.
 82 17    Sec. 80.  EFFECTIVE DATE.  Section 46 of this Act, creating
 82 18 new section 97B.50A, takes effect July 1, 1999.
 82 19    Sec. 81.  IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM –
 82 20 ELIGIBILITY FOR RETIREMENT ALLOWANCE.
 82 21    1.  Notwithstanding any provision of chapter 97B to the
 82 22 contrary, a person designated by an eligible member of the
 82 23 Iowa public employees' retirement system as a contingent
 82 24 annuitant eligible to receive an optional allowance pursuant
 82 25 to Iowa Code section 97B.51 but who did not receive an
 82 26 allowance as a contingent annuitant pursuant to the
 82 27 requirements of section 97B.51 (Code 1991 or 1993, as
 82 28 applicable) shall be entitled to receive an optional allowance
 82 29 and an applicable lump-sum payment pursuant to that election
 82 30 commencing with the first month following a determination by
 82 31 the Iowa public employees' retirement system that the
 82 32 requirements of this section are met.  For purposes of this
 82 33 section, "an applicable lump-sum payment" means an amount
 82 34 representing the monthly allowances that would have been paid
 82 35 had the person designated as a contingent annuitant been
 83  1 eligible to receive an optional allowance immediately
 83  2 following the death of the eligible member.
 83  3    2.  For purposes of this section, an eligible member of the
 83  4 Iowa public employees' retirement system means a member who
 83  5 meets all of the following requirements:
 83  6    a.  The member submitted a valid application for retirement
 83  7 benefits between January 1, 1992, and January 1, 1995.
 83  8    b.  The member was otherwise eligible to receive a
 83  9 retirement allowance pursuant to section 97B.51, subsection 1,
 83 10 Code 1991 or 1993, as applicable, but died prior to the
 83 11 department of personnel issuing payment of the member's first
 83 12 retirement allowance.
 83 13    c.  The member survived into the month for which the
 83 14 member's first retirement allowance would have been payable.
 83 15    3.  The person designated as a contingent annuitant shall
 83 16 file a valid application with the Iowa public employees'
 83 17 retirement system for an allowance pursuant to this section
 83 18 prior to June 30, 1999.
 83 19    4.  A person designated as a contingent annuitant who
 83 20 elects to receive an allowance pursuant to this section shall,
 83 21 prior to receiving an allowance pursuant to this section, make
 83 22 arrangements with the Iowa public employees' retirement system
 83 23 to repay any death benefits paid by the system to the person.
 83 24    Sec. 82.  CODE EDITOR DIRECTIVES.  The Code editor is
 83 25 directed to renumber Iowa Code section 97B.41 to Iowa Code
 83 26 section 97B.1A.  Sections 97A.3, 97B.1, 97B.42B, 97B.43,
 83 27 97B.66, 97B.68, 97B.72, 97B.72A, 97B.73A, 97B.74, 411.3,
 83 28 411.30, and 602.11115, Code 1997, are amended by striking from
 83 29 the sections the reference "97B.41" and inserting in lieu
 83 30 thereof the reference "97B.1A".
 83 31    Sec. 83.  STUDY OF STATEWIDE DEFERRED COMPENSATION PROGRAM.
 83 32 The Iowa public employees' retirement system division shall
 83 33 continue its study of the possible establishment of a
 83 34 statewide deferred compensation plan for active members of the
 83 35 Iowa public employees' retirement system.  In conducting its
 84  1 study, the division shall seek input, through surveys or other
 84  2 similar methods, from affected employees and employers
 84  3 concerning the establishment of a statewide deferred
 84  4 compensation plan to be administered by the Iowa public
 84  5 employees' retirement system division.  The division shall
 84  6 submit a report concerning the results of its study to the
 84  7 general assembly on or before January 1, 1999, and shall
 84  8 include its findings and recommendations.
 84  9    Sec. 84.  STUDY OF ESTABLISHMENT OF A BENEFITS ADVISORY
 84 10 BOARD.  The public employees' retirement system division shall
 84 11 study the possible establishment of a benefits advisory board
 84 12 and shall make recommendations concerning the establishment of
 84 13 a benefits advisory board.  The study shall consider the
 84 14 duties to be assigned to a potential benefits advisory board,
 84 15 the membership of the board and the manner of selecting
 84 16 members to the board, and the authority of the board
 84 17 concerning any recommendations it may be empowered to make
 84 18 concerning benefits to be provided to members of the Iowa
 84 19 public employees' retirement system.  The division shall
 84 20 submit a report concerning the results of its study to the
 84 21 general assembly on or before January 8, 1999, and shall
 84 22 include its findings and any recommended proposal or
 84 23 proposals.
 84 24    Sec. 85.  STUDY OF INCLUSION OF ADJUNCT INSTRUCTORS IN
 84 25 MEMBERSHIP OF THE IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
 84 26 The Iowa public employees' retirement system division shall
 84 27 conduct a study concerning the issue of whether adjunct
 84 28 instructors employed by a community college or regents
 84 29 university should be allowed to become members of the Iowa
 84 30 public employees' retirement system.  In conducting its study,
 84 31 the division shall seek input from affected employees and
 84 32 employers concerning the possible inclusion of adjunct
 84 33 instructors in the retirement system.  On or before September
 84 34 1, 1999, the Iowa public employees' retirement system division
 84 35 shall file a report with the legislative service bureau, for
 85  1 distribution to the public retirement systems committee, which
 85  2 contains its findings and recommendations concerning this
 85  3 issue.  
 85  4                          DIVISION III
 85  5           STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 85  6    Sec. 86.  Section 411.6, subsection 2, paragraph d,
 85  7 subparagraph (3), Code 1997, is amended to read as follows:
 85  8    (3)  For a member who terminates service, other than by
 85  9 death or disability, on or after October 16, 1992, but before
 85 10 July 1, 1998, and who does not withdraw the member's
 85 11 contributions pursuant to section 411.23, upon the member's
 85 12 retirement there shall be added six-tenths percent of the
 85 13 member's average final compensation for each year of service
 85 14 over twenty-two years.  However, this subparagraph does not
 85 15 apply to more than eight additional years of service.
 85 16    Sec. 87.  Section 411.6, subsection 2, paragraph d, Code
 85 17 1997, is amended by adding the following new subparagraph:
 85 18    NEW SUBPARAGRAPH.  (4)  For a member who terminates
 85 19 service, other than by death or disability, on or after July
 85 20 1, 1998, and who does not withdraw the member's contributions
 85 21 pursuant to section 411.23, upon the member's retirement there
 85 22 shall be added one and one-half percent of the member's
 85 23 average final compensation for each year of service over
 85 24 twenty-two years.  However, this subparagraph does not apply
 85 25 to more than eight additional years of service.
 85 26    Sec. 88.  Section 411.6, subsection 4, Code 1997, is
 85 27 amended to read as follows:
 85 28    4.  ALLOWANCE ON ORDINARY DISABILITY RETIREMENT.
 85 29    a.  Upon retirement for ordinary disability prior to July
 85 30 1, 1998, a member shall receive an ordinary disability
 85 31 retirement allowance which shall consist of a pension which
 85 32 shall equal fifty percent of the member's average final
 85 33 compensation unless either of the following conditions exist:
 85 34    a. (1)  If the member has not had five or more years of
 85 35 membership service the member shall receive a pension equal to
 86  1 one-fourth of the member's average final compensation.
 86  2    b. (2)  If the member has had twenty-two or more years of
 86  3 membership service, the member shall receive a disability
 86  4 retirement allowance that is equal to the greater of the
 86  5 benefit that the member would receive under subsection 2 if
 86  6 the member were fifty-five years of age or the disability
 86  7 pension otherwise calculated under this subsection.
 86  8    b.  Upon retirement for ordinary disability on or after
 86  9 July 1, 1998, a member who has five or more years of
 86 10 membership service shall receive a disability retirement
 86 11 allowance in an amount equal to the greater of fifty percent
 86 12 of the member's average final compensation or the retirement
 86 13 allowance that the member would receive under subsection 2 if
 86 14 the member had attained fifty-five years of age.  A member who
 86 15 has less than five years of membership service shall receive a
 86 16 pension equal to one-fourth of the member's average final
 86 17 compensation.
 86 18    Sec. 89.  Section 411.6, subsection 6, paragraph b, Code
 86 19 1997, is amended to read as follows:
 86 20    b.  Upon retirement for accidental disability on or after
 86 21 July 1, 1990, but before July 1, 1998, a member shall receive
 86 22 an accidental disability retirement allowance which shall
 86 23 consist of a pension equal to sixty percent of the member's
 86 24 average final compensation.  However, if the member has had
 86 25 twenty-two or more years of membership service, the member
 86 26 shall receive a disability retirement allowance that is equal
 86 27 to the greater of the retirement allowance that the member
 86 28 would receive under subsection 2 if the member was fifty-five
 86 29 years of age or the disability retirement allowance calculated
 86 30 under this paragraph.
 86 31    Sec. 90.  Section 411.6, subsection 6, Code 1997, is
 86 32 amended by adding the following new paragraph:
 86 33    NEW PARAGRAPH.  c.  Upon retirement for accidental
 86 34 disability on or after July 1, 1998, a member shall receive an
 86 35 accidental disability retirement allowance which shall consist
 87  1 of a pension in an amount equal to the greater of sixty
 87  2 percent of the member's average final compensation or the
 87  3 retirement allowance that the member would receive under
 87  4 subsection 2 if the member has attained fifty-five years of
 87  5 age.
 87  6    Sec. 91.  Section 411.6, subsection 7, paragraph a,
 87  7 unnumbered paragraph 1, Code 1997, is amended to read as
 87  8 follows:
 87  9    Should any beneficiary for either ordinary or accidental
 87 10 disability, except a beneficiary who is fifty-five years of
 87 11 age or over and would have completed twenty-two years of
 87 12 service if the beneficiary had remained in active service, be
 87 13 engaged in a gainful occupation paying more than the
 87 14 difference between the member's net retirement allowance and
 87 15 one and one-half times the earnable compensation of an active
 87 16 member at the same position on the salary scale within the
 87 17 member's rank as the member held at retirement, then the
 87 18 amount of the member's retirement allowance shall be reduced
 87 19 to an amount which together with such that the member's net
 87 20 retirement allowance plus the amount earned by the member
 87 21 shall equal one and one-half times the amount of the current
 87 22 earnable compensation of an active member at the same position
 87 23 on the salary scale within the member's rank as the member
 87 24 held at retirement.  Should the member's earning capacity be
 87 25 later changed, the amount of the member's retirement allowance
 87 26 may be further modified, provided that the new retirement
 87 27 allowance shall not exceed the amount of the retirement
 87 28 allowance adjusted by annual readjustments of pensions
 87 29 pursuant to subsection 12 of this section nor an amount which
 87 30 would cause the member's net retirement allowance, when added
 87 31 to the amount earned by the beneficiary, equals to equal one
 87 32 and one-half times the amount of the earnable compensation of
 87 33 an active member at the same position on the salary scale
 87 34 within the member's rank as the member held at retirement.  A
 87 35 beneficiary restored to active service at a salary less than
 88  1 the average final compensation upon the basis of which the
 88  2 member was retired at age fifty-five or greater, shall not
 88  3 again become a member of the retirement system and shall have
 88  4 the member's retirement allowance suspended while in active
 88  5 service.  If the rank or position held by the retired member
 88  6 is subsequently abolished, adjustments to the allowable limit
 88  7 on the amount of income which can be earned in a gainful
 88  8 occupation shall be computed by the board of trustees as
 88  9 though such rank or position had not been abolished and salary
 88 10 increases had been granted to such rank or position on the
 88 11 same basis as increases granted to other ranks and positions
 88 12 in the department.  For purposes of this paragraph, "net
 88 13 retirement allowance" means the amount determined by
 88 14 subtracting the amount paid during the previous calendar year
 88 15 by the beneficiary for health insurance or similar health care
 88 16 coverage for the beneficiary and the beneficiary's dependents
 88 17 from the amount of the member's retirement allowance paid for
 88 18 that year pursuant to this chapter.  The beneficiary shall
 88 19 submit sufficient documentation to the system to permit the
 88 20 system to determine the member's net retirement allowance for
 88 21 the applicable year.
 88 22    Sec. 92.  Section 411.6, subsection 10, Code 1997, is
 88 23 amended to read as follows:
 88 24    10.  Pensions offset by compensation benefits.  Any amounts
 88 25 which may be paid or payable by the said cities under the
 88 26 provisions of any workers' compensation or similar law to a
 88 27 member or to the dependents of a member on account of any
 88 28 disability or death, shall be offset against and payable in
 88 29 lieu of any benefits payable under the provisions of this
 88 30 chapter on account of the same disability or death.  In
 88 31 addition, any amounts payable to a member as unemployment
 88 32 compensation under the provisions of chapter 96 based on
 88 33 unemployment from membership service for a member receiving an
 88 34 ordinary disability benefit or an accidental disability
 88 35 benefit pursuant to this chapter shall be offset against and
 89  1 payable in lieu of any benefits payable under the provisions
 89  2 of this chapter for an ordinary disability or an accidental
 89  3 disability.
 89  4    Sec. 93.  Section 411.9, Code 1997, is amended to read as
 89  5 follows:
 89  6    411.9  MILITARY SERVICE EXCEPTIONS.
 89  7    1.  A member who is absent while serving in the armed
 89  8 services of the United States or its allies and is discharged
 89  9 or separated from the armed services under honorable
 89 10 conditions shall have the period or periods of absence while
 89 11 serving in the armed services, not in excess of four years
 89 12 unless any period in excess of four years is at the request
 89 13 and for the convenience of the federal government, included as
 89 14 part of the member's period of service in the department.  The
 89 15 member shall not continue the contributions required of the
 89 16 member under section 411.8 during the period of military
 89 17 service, if the member, within one year after the member has
 89 18 been discharged or separated under honorable conditions from
 89 19 military service, returns and resumes duties in the
 89 20 department, and if the member is declared physically capable
 89 21 of resuming duties upon examination by the medical board.  A
 89 22 period of absence may exceed four years at the request and for
 89 23 the convenience of the federal government.
 89 24    2.  Notwithstanding any provisions of this chapter to the
 89 25 contrary, contributions, benefits, and service credit with
 89 26 respect to qualified military service shall be provided in
 89 27 accordance with section 414(u) of the federal Internal Revenue
 89 28 Code.
 89 29    Sec. 94.  Section 411.15, Code 1997, is amended to read as
 89 30 follows:
 89 31    411.15  HOSPITALIZATION AND MEDICAL ATTENTION.
 89 32    Cities shall provide hospital, nursing, and medical
 89 33 attention for the members of the police and fire departments
 89 34 of the cities, when injured while in the performance of their
 89 35 duties as members of such department, and shall continue to
 90  1 provide hospital, nursing, and medical attention for injuries
 90  2 or diseases incurred while in the performance of their duties
 90  3 for members receiving a retirement allowance under section
 90  4 411.6, subsection 6, and the.  Cities may provide the
 90  5 hospital, nursing, and medical attention required by this
 90  6 section through the purchase of insurance, by self-insuring
 90  7 the obligation, or through payment of moneys into a local
 90  8 government risk pool established for the purpose of covering
 90  9 the costs associated with the requirements of this section.
 90 10 The cost of providing the hospital, nursing, and medical
 90 11 attention required by this section shall be paid from moneys
 90 12 held in a trust and agency fund established pursuant to
 90 13 section 384.6, or out of the appropriation for the department
 90 14 to which the injured person belongs or belonged; provided that
 90 15 any amounts received by the injured person under the workers'
 90 16 compensation law of the state, or from any other source for
 90 17 such specific purposes, shall be deducted from the amount paid
 90 18 by the city under the provisions of this section.
 90 19    Sec. 95.  Section 411.22, subsection 1, unnumbered
 90 20 paragraph 1, Code 1997, is amended to read as follows:
 90 21    If a member receives an injury for which benefits are
 90 22 payable under section 411.6, subsection 3 or 5, or section
 90 23 411.15 and if the injury is caused under circumstances
 90 24 creating a legal liability for damages against a third party
 90 25 other than the retirement system, the member or the member's
 90 26 legal representative may maintain an action for damages
 90 27 against the third party.  If a member or a member's legal
 90 28 representative commences such an action, the plaintiff member
 90 29 or representative shall serve a copy of the original notice
 90 30 upon the retirement system not less than ten days before the
 90 31 trial of the action, but a failure to serve the notice does
 90 32 not prejudice the rights of the retirement system, and the
 90 33 following rights and duties ensue:
 90 34    Sec. 96.  Section 411.22, subsection 3, Code 1997, is
 90 35 amended to read as follows:
 91  1    3.  Before a settlement is effective between a the
 91  2 retirement system and a third party who is liable for an
 91  3 injury, the member must consent in writing to the settlement;
 91  4 and if the settlement is between the member and a third party,
 91  5 the retirement system must consent in writing to the
 91  6 settlement; or on refusal to consent, in either case, the
 91  7 district court in the county in which either the city and or
 91  8 the retirement system are is located must consent in writing
 91  9 to the settlement.
 91 10    Sec. 97.  NEW SECTION.  411.24  PAYMENT TO REPRESENTATIVE
 91 11 PAYEE.
 91 12    1.  ADULTS.  When it appears to the system that the
 91 13 interest of an applicant entitled to a payment would be
 91 14 served, certification of payment may be made, regardless of
 91 15 the legal competence or incompetence of the individual
 91 16 entitled to the payment, either for direct payment to the
 91 17 applicant, or for the applicant's use and benefit to a
 91 18 representative of an applicant.  Payments under this section
 91 19 shall be made in accordance with rules adopted by the board.
 91 20    2.  MINORS.  Payments on behalf of minors shall be made in
 91 21 accordance with rules adopted by the board.
 91 22    3.  FINALITY.  Any payments made under the provisions of
 91 23 this section shall be a complete settlement and satisfaction
 91 24 of any claim, right, or interest in and to such payment.
 91 25    Sec. 98.  Section 411.36, subsection 1, paragraph c, Code
 91 26 1997, is amended to read as follows:
 91 27    c.  The city treasurers of A city treasurer, city financial
 91 28 officer, or city clerk involved with the financial matters of
 91 29 the city from four participating cities, one of whom is from a
 91 30 city having a population of less than forty thousand, and
 91 31 three of whom are from cities having a population of forty
 91 32 thousand or more.  The city treasurers members authorized
 91 33 pursuant to this paragraph shall be appointed by the governing
 91 34 body of the Iowa league of cities.
 91 35    Sec. 99.  APPLICABILITY.  Section 91 of this Act, amending
 92  1 section 411.6, subsection 7, paragraph "a", is applicable to
 92  2 amounts earned by a beneficiary after December 31, 1997.  
 92  3                           DIVISION IV
 92  4                   JUDICIAL RETIREMENT SYSTEM
 92  5    Sec. 100.  Section 602.1611, Code 1997, is amended by
 92  6 adding the following new subsection:
 92  7    NEW SUBSECTION.  4.  Commencing July 1, 1998, associate
 92  8 juvenile judges and associate probate judges, who are
 92  9 appointed on a full-time basis, are members of the judicial
 92 10 retirement system established in article 9, part 1, and are
 92 11 not members of the public employees' retirement system
 92 12 established in chapter 97B, except as provided in section
 92 13 602.11116.
 92 14    Sec. 101.  Section 602.9107, subsection 1, Code 1997, is
 92 15 amended to read as follows:
 92 16    1.  The annual annuity of a judge under this system is an
 92 17 amount equal to three percent of the judge's average annual
 92 18 basic salary for the judge's last three years as a judge of
 92 19 one or more of the courts included in this article, multiplied
 92 20 by the judge's years of service as a judge of one or more of
 92 21 the courts for which contributions were made to the system.
 92 22 However, an annual annuity shall not exceed an amount equal to
 92 23 fifty percent a specified percentage of the basic annual
 92 24 salary which the judge is receiving at the time the judge
 92 25 becomes separated from service.  Forfeitures shall not be used
 92 26 to increase the annuities a judge or survivor would otherwise
 92 27 receive under the system.
 92 28    For judges who retire and receive an annuity prior to July
 92 29 1, 1998, the specified percentage shall be fifty percent.
 92 30    For judges who retire and receive an annuity on or after
 92 31 July 1, 1998, the specified percentage shall be fifty-two
 92 32 percent.
 92 33    Sec. 102.  NEW SECTION.  602.9107B  MINIMUM ANNUITY
 92 34 BENEFIT.
 92 35    A judge, or a survivor of a judge, who retired before July
 93  1 1, 1977, and who is receiving an annuity pursuant to this
 93  2 article, shall, commencing with an annuity paid on or after
 93  3 July 1, 1998, be paid a minimum monthly annuity payment of
 93  4 five hundred dollars.
 93  5    Sec. 103.  NEW SECTION.  602.11116  ASSOCIATE JUVENILE
 93  6 JUDGES AND ASSOCIATE PROBATE JUDGES – RETIREMENT.
 93  7    If a full-time associate juvenile judge or full-time
 93  8 associate probate judge is a member of the Iowa public
 93  9 employees' retirement system on June 30, 1998, the associate
 93 10 juvenile judge or associate probate judge shall elect, by
 93 11 informing the state court administrator by June 30, 1998, one
 93 12 of the following retirement benefit options to be effective
 93 13 July 1, 1998:
 93 14    1.  To remain a member under the Iowa public employees'
 93 15 retirement system pursuant to chapter 97B.
 93 16    2.  To commence membership under the judicial retirement
 93 17 system pursuant to article 9, part 1, effective July 1, 1998,
 93 18 but to become an inactive member of the Iowa public employees'
 93 19 retirement system pursuant to chapter 97B and remain eligible
 93 20 for benefits under sections 97B.49A through 97B.49H, as
 93 21 applicable, for the period of membership service under chapter
 93 22 97B.
 93 23    3.  To commence membership under the judicial retirement
 93 24 system pursuant to article 9, part 1, retroactive to the date
 93 25 the associate juvenile judge or associate probate judge became
 93 26 an associate juvenile judge or associate probate judge, and to
 93 27 cease to be a member of the Iowa public employees' retirement
 93 28 system, effective July 1, 1998.  The department of personnel
 93 29 shall transmit by January 1, 1999, to the state court
 93 30 administrator for deposit in the judicial retirement fund the
 93 31 associate juvenile judge's or associate probate judge's
 93 32 accumulated contributions as defined in section 97B.41,
 93 33 subsection 2, for the judge's period of membership service as
 93 34 an associate juvenile judge or associate probate judge.
 93 35 Before July 1, 2000, or at retirement previous to that date,
 94  1 an associate juvenile judge or associate probate judge who
 94  2 becomes a member of the judicial retirement system pursuant to
 94  3 this subsection shall contribute to the judicial retirement
 94  4 fund an amount equal to the difference between four percent of
 94  5 the associate juvenile judge's or associate probate judge's
 94  6 total salary received for the entire period of service before
 94  7 July 1, 1998, as an associate juvenile judge or associate
 94  8 probate judge, and the associate juvenile judge's or associate
 94  9 probate judge's accumulated contributions transmitted by the
 94 10 department of personnel to the state court administrator
 94 11 pursuant to this subsection.  The associate juvenile judge's
 94 12 or associate probate judge's contribution shall not be limited
 94 13 to the amount specified in section 602.9104, subsection 1.
 94 14 The state court administrator shall credit an associate
 94 15 juvenile judge or associate probate judge with service under
 94 16 the judicial retirement system for the period of service for
 94 17 which contributions at the four percent level are made.
 94 18    Sec. 104.  EFFECTIVE DATE.  Sections 100 and 103 of this
 94 19 Act, being deemed of immediate importance, take effect upon
 94 20 enactment.
 94 21    Sec. 105.  JUDICIAL RETIREMENT SYSTEM – LEGISLATIVE
 94 22 INTENT.  It is the intent of the general assembly that the
 94 23 specified maximum percentage multiplier for purposes of
 94 24 calculating a retirement annuity for a judge pursuant to
 94 25 section 602.9107 be increased in the manner provided in this
 94 26 section.  The maximum percentage multiplier shall be increased
 94 27 beyond fifty-two percent in increments of not more than two
 94 28 percentage points every two years based upon whether the most
 94 29 recent actuarial valuation of the system indicates that the
 94 30 system can afford the increase.  The maximum percentage
 94 31 multiplier shall not exceed sixty percent.  
 94 32                           DIVISION V
 94 33                       GENERAL PROVISIONS
 94 34    Sec. 106.  NEW SECTION.  29.2A  AIRPORT FIRE FIGHTERS –
 94 35 MAXIMUM AGE.
 95  1    The maximum age for a person to be employed as an airport
 95  2 fire fighter by the military division of the department of
 95  3 public defense is sixty-five years of age.
 95  4    Sec. 107.  Section 80.36, Code 1997, is amended to read as
 95  5 follows:
 95  6    80.36  MAXIMUM AGE.
 95  7    The maximum age for a person to be employed as a peace
 95  8 officer in the divisions of highway safety, uniformed force
 95  9 and radio communications, criminal investigation and bureau of
 95 10 identification, and drug law enforcement department of public
 95 11 safety is sixty-five years of age.  
 95 12    Sec. 108.  Section 97D.1, subsection 1, Code 1997, is
 95 13 amended by adding the following new paragraph:
 95 14    NEW PARAGRAPH.  f.  Avoid enacting further benefit
 95 15 enhancements that fail to preserve or enhance
 95 16 intergenerational equity amongst all employees covered by the
 95 17 retirement system.
 95 18    Sec. 109.  Section 294.12, Code 1997, is amended by adding
 95 19 the following new unnumbered paragraph:
 95 20    NEW UNNUMBERED PARAGRAPH.  Notwithstanding the provisions
 95 21 of this section, the plan provisions of a pension and annuity
 95 22 retirement system of a school district established under this
 95 23 chapter regarding the determination and distribution of
 95 24 benefits upon termination of the retirement system shall be
 95 25 effective if the school district has received a favorable
 95 26 determination letter from the federal internal revenue service
 95 27 as to the qualified status of such retirement system under
 95 28 applicable provisions of the Internal Revenue Code.
 95 29    Sec. 110.  Section 321.477, Code 1997, is amended to read
 95 30 as follows:
 95 31    321.477  EMPLOYEES AS PEACE OFFICERS – MAXIMUM AGE.
 95 32    The department may designate by resolution certain of its
 95 33 employees upon each of whom there is hereby conferred the
 95 34 authority of a peace officer to control and direct traffic and
 95 35 weigh vehicles, and to make arrests for violations of the
 96  1 motor vehicle laws relating to the operating authority,
 96  2 registration, size, weight, and load of motor vehicles and
 96  3 trailers and registration of a motor carrier's interstate
 96  4 transportation service with the department.  The maximum age
 96  5 for a person employed as a peace officer pursuant to this
 96  6 section is sixty-five years of age.
 96  7    Sec. 111.  Section 330A.8, subsection 16, Code 1997, is
 96  8 amended to read as follows:
 96  9    16.  To designate employees upon whom are conferred all the
 96 10 powers of a peace officer as defined in section 801.4.  The
 96 11 maximum age for a person designated as a peace officer
 96 12 pursuant to this subsection is sixty-five years of age.
 96 13    Sec. 112.  Section 331.903, Code 1997, is amended by adding
 96 14 the following new subsection:
 96 15    NEW SUBSECTION.  6.  The maximum age for a person to be
 96 16 employed as a deputy sheriff appointed pursuant to this
 96 17 section is sixty-five years of age.
 96 18    Sec. 113.  Section 362.10, Code 1997, is amended to read as
 96 19 follows:
 96 20    362.10  POLICE OFFICERS AND FIRE FIGHTERS.
 96 21    The maximum age for a police officer, marshal, or fire
 96 22 fighter employed for police duty or the duty of fighting fires
 96 23 is sixty-five years of age.  This section shall not apply to
 96 24 volunteer fire fighters.
 96 25    Sec. 114.  Section 456A.13, Code 1997, is amended to read
 96 26 as follows:
 96 27    456A.13  OFFICERS AND EMPLOYEES – PEACE OFFICER STATUS.
 96 28    The director shall employ the number of assistants,
 96 29 including a professionally trained state forester, that are
 96 30 necessary to carry out the duties imposed on the commission;
 96 31 and, under the same conditions, the director shall appoint the
 96 32 number of full-time officers and supervisory personnel that
 96 33 are necessary to enforce all laws of the state and rules and
 96 34 regulations of the commission.  The full-time officers and
 96 35 supervisory personnel have the same powers that are conferred
 97  1 by law on peace officers in the enforcement of all laws of the
 97  2 state of Iowa and the apprehension of violators.  A person
 97  3 appointed as a full-time officer shall be at least twenty-one
 97  4 years of age, but not more than sixty-five years of age, on
 97  5 the date of appointment and shall not be employed as a full-
 97  6 time officer after attaining the age of sixty-five.  "Full-
 97  7 time officer" means any person appointed by the director to
 97  8 enforce the laws of this state.
 97  9    Sec. 115.  COMPREHENSIVE EXAMINATION OF PLAN DESIGN –
 97 10 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
 97 11 DISABILITY SYSTEM, THE STATEWIDE FIRE AND POLICE RETIREMENT
 97 12 SYSTEM, AND MEMBERS OF SPECIAL CLASSIFICATIONS WITHIN THE IOWA
 97 13 PUBLIC EMPLOYEES' RETIREMENT SYSTEM – REPORT.
 97 14    1.  The chief benefits officer of the Iowa public
 97 15 employees' retirement system, the executive director of the
 97 16 statewide fire and police retirement system, and the director
 97 17 of the financial division of the department of public safety
 97 18 for the public safety peace officers' retirement, accident,
 97 19 and disability system, hereafter "the systems'
 97 20 representatives", shall coordinate, in consultation with the
 97 21 public retirement systems committee established pursuant to
 97 22 section 97D.4, a comprehensive examination of the plan designs
 97 23 concerning the public retirement systems established in
 97 24 chapter 97A, chapter 411, and the provisions of chapter 97B
 97 25 governing special classifications, pursuant to the principles
 97 26 established in chapter 97D, and make recommendations
 97 27 concerning plan design improvement for each of the retirement
 97 28 systems.
 97 29    2.  In coordinating and conducting the examination required
 97 30 by this section, the systems' representatives shall consult,
 97 31 and make periodic reports to, the public retirement systems
 97 32 committee.  In addition, the systems' representatives shall
 97 33 hire, subject to the prior approval of the public retirement
 97 34 systems committee, a consultant to facilitate the conducting
 97 35 of the examination.
 98  1    3.  In conducting the examination, the systems'
 98  2 representatives shall consider and examine, but not be limited
 98  3 to, the following:
 98  4    a.  Consideration of appropriate benefit enhancements to
 98  5 each retirement system.  Consideration of benefit enhancements
 98  6 shall take into account the availability of enhanced
 98  7 disability benefits for members of each retirement system
 98  8 under examination and the applicability of federal social
 98  9 security benefits for members of certain retirement systems
 98 10 under examination.
 98 11    b.  Consideration of establishing a benefit structure
 98 12 pertaining to each retirement system under examination, which
 98 13 takes into account the applicability or inapplicability of
 98 14 federal social security contributions and benefits for the
 98 15 members of each applicable retirement system, and which
 98 16 provides comparable and equitable benefits for members of each
 98 17 system upon retirement.  In addition, the examination shall
 98 18 include consideration of transferring certain groups of
 98 19 employees from one system to another.
 98 20    c.  Review of the functions of each retirement system under
 98 21 examination and consideration of how to perform those
 98 22 functions in an efficient manner that meets the needs of the
 98 23 members of each retirement system.
 98 24    d.  Establishment of equitable contribution rates for both
 98 25 employers and employees, including consideration of the
 98 26 mechanism to establish the contribution rates.
 98 27    e.  Consideration of establishing a uniform actuarial
 98 28 reporting method for all retirement systems under
 98 29 consideration to assist the public retirement systems
 98 30 committee in examining the relative financial condition of
 98 31 each retirement system.
 98 32    f.  Consideration of the member service needs of both
 98 33 active and retired members of each retirement system under
 98 34 examination shall be made in examining each item for
 98 35 consideration in this subsection.
 99  1    g.  Consideration of any applicable federal and state legal
 99  2 requirements concerning public retirement systems, to include
 99  3 consideration of the obligations currently established for
 99  4 qualified plans under the federal Internal Revenue Code.
 99  5    4.  In conducting the examination, the systems'
 99  6 representatives shall solicit from active and retired members
 99  7 of each of the retirement systems subject to the comprehensive
 99  8 examination written comments concerning issues to be
 99  9 considered by the consultant, prior to the hiring of the
 99 10 consultant, and written comments on the results of the
 99 11 examination.
 99 12    5.  On or before November 2, 1998, the systems'
 99 13 representatives shall file a report with the legislative
 99 14 service bureau, for distribution to the public retirement
 99 15 systems committee, which contains the results of the
 99 16 comprehensive examination and any proposal, or proposals, for
 99 17 improving the plan design of any or all of the public
 99 18 retirement systems examined pursuant to this section.  The
 99 19 report shall include discussion and recommendations concerning
 99 20 the items for consideration listed in subsection 3.  
 99 21 
 99 22 
 99 23                                                             
 99 24                               RON J. CORBETT
 99 25                               Speaker of the House
 99 26 
 99 27 
 99 28                                                             
 99 29                               MARY E. KRAMER
 99 30                               President of the Senate
 99 31 
 99 32    I hereby certify that this bill originated in the House and
 99 33 is known as House File 2496, Seventy-seventh General Assembly.
 99 34 
 99 35 
100  1                                                             
100  2                               ELIZABETH ISAACSON
100  3                               Chief Clerk of the House
100  4 Approved                , 1998
100  5 
100  6 
100  7                         
100  8 TERRY E. BRANSTAD
100  9 Governor
     
Text: HF02495                           Text: HF02497
Text: HF02400 - HF02499                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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