Text: HF02495 Text: HF02497 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 5a.(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 9b.(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 amountwhich together withsuch 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 4equalsto 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 section97B.49, subsection 1197B.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.10REFUNDSCREDITING 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 andmake a refund ofshall credit such payments to the 6 30employee or employer, or both, as it finds just and equitable6 31 appropriate party.Refunds so made shall be charged to the6 32fund to which the erroneous collections have been credited and6 33shall be paid to the employee or employer, or both, without6 34interest.6 35 2. A claim of an employee or employer for arefundcredit 7 1 for erroneously paid contributions shall be made within three 7 2 years of date of payment. However, the department maymake7 3refund paymentsissue a credit to employees or employers after 7 4 the expiration of the three-year deadline if the department 7 5 finds thatthe payment of the refundissuing 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 terminationor retirementfrom employment,7 23whichever 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 suchtaxcontribution 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 9containing personal identifiable informationare 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.8 133.Records specifying amounts accumulated in members' 8 14 active accounts. 8 154.3. Records containing names,or addresses, and amounts8 16of monthly benefits to whichof members or their beneficiaries 8 17are entitled. 8 185.4. Records containingnames, addresses, andamounts of 8 19lump sum refundpayments toterminatedmembers 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 monthsfollowing the 8 29 delivery ofsuchthe statement provided in section 97B.18, it 8 30 is brought to the attention of the department that any entry 8 31 ofsuchwages insuchits records is erroneous, or that any 8 32 item ofsuchwages has been omitted from the records, the 8 33 department may correctsuchthe entry or includesuchthe 8 34 omitted item in its records, as the case may be. Written 8 35 notice of any revision of anysuchentry which is adverse to 9 1 the interest of any individual shall be given tosuchthe 9 2 individual in any case wheresuchthe individual has 9 3 previously been notified by the department of the amount of 9 4 wages and of the period of payments shown bysuchthe entry. 9 5 Upon request in writingmade prior to the expiration of six9 6months immediately following the giving of the statement9 7provided 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 ofsuchthe individual in such record, or 9 13 any revision of anysuchentry. If a hearing is held, the 9 14 department shall make findings of fact and a decision based 9 15 upon the evidence adduced atsuchthe hearing and shall revise 9 16 its records accordingly. Judicial review of action of the 9 17 department under this sectionand section 97B.20may 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 validand 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.TheIf 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 other10 2interested party, within thirty calendar days after the10 3notification was mailed to the applicant's or party's last10 4known address, files an appeal as provided in section 97B.20A,10 5the decision is final and benefits shall be paid or denied in10 6accord 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,orfor the purpose of causing any payment to be made 10 18 where no payment is authorized under this chapter,shall10 19willfully make or cause to be made anyfor 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 falseor 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 or10 31causes 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 withsuchan application for any payment under this 10 35 chapter knowingthemit to be false, shall be guilty of a11 1fraudulent 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 9subsection 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.If14 20the department has not maintained the accumulated contribution14 21account of the member for a period of service, as provided14 22pursuant to section 97B.53, subsection 6, the department shall14 23credit the member for the service if the member submits14 24satisfactory proof to the department that the member did make14 25the contributions for the period of service and did not take a14 26refund 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" meansuninterruptedservice under this 14 30 chapter by an employee, except an elected official,from the14 31date the employee last entered employment of the employer14 32until the date the employee's employment shall be terminated14 33by death, retirement, resignation or discharge; provided,14 34however, the service of any employee shall not be deemed to be14 35interrupted byfor 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 bythea 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 withthean 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 absenceor vacationauthorized 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 1993is considered a leave of absence authorized by the15 16employer, or other similar leave authorized by the employer 15 17 for a period not to exceed twelve weeks in any calendar year. 15 18c. The termination at the end of the school year of the15 19contract of employment of an employee in the public schools of15 20the state of Iowa, provided the employee enters into a further15 21contract of employment in the public schools of the state of15 22Iowa for the next succeeding school year.15 23 d. Temporary or seasonal interruptions in servicesuch as15 24service of school bus drivers, schoolteachers under regular15 25contract, interim teachers or substitute teachers, instructors15 26at Iowa state university of science and technology, the state15 27university of Iowa, or university of northern Iowa, employees15 28in state schools or hospital dormitories, other positionsfor 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 temporary15 32employees of the general assemblyand 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 497B.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 section97B.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 797B.49, subsection 16 or 1797B.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 1097B.49, subsection 16 or 1797B.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 2297B.49, subsection 1197B.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 completedthirty19 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 completedthirty19 30 twenty years of membership service. 19 31 3. The first of any month in which the member has 19 32 completedthirtytwenty 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 whicha member meets the20 1membership service and age requirements to retire under20 2section 97B.49, subsection 15the 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 undersection 97B.49sections 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 ofseventwelve thousandfour hundred fortydollars 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 section97B.49 or97B.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 andto the employerthe 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 22section 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 completedthirtytwenty 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 undersection 97B.49sections 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 undersection 97B.49sections 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 32thirtytwenty or more years of membership service and prior 51 33 service, shall receivefullbenefits undersection 97B.4951 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 ofthean option stated under 61 13subsection 1 ofthis 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 takethean option stated 61 19 insubsection 1 ofthis 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 section97B.49, subsection 1 or62 1597B.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 section97B.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 section97B.49, subsection 16,62 11paragraph "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 section97B.48A97B.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 themonthquarter preceding the 62 27monthquarter 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, aA 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 employmentas defined in this chapteruntil 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 eithersection65 2897B.49sections 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 35Interest and interest dividends shall be credited to the66 1accumulated contributions of members who terminate service and66 2subsequently 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 is66 6vested and who does not claim and receive a refund of the66 7member's accumulated contributions within ten years of the66 8date of termination shall, if the member makes claim for a66 9refund more than ten years after the date of termination, be66 10required to submit proof satisfactory to the department of the66 11member's entitlement to the refund. Interest and interest66 12dividends on the accumulated contributions shall only be66 13credited if provided in accordance with section 97B.70. The66 14department is under no obligation to maintain the accumulated66 15contribution accounts of such former members for more than ten66 16years 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. Interestand interest dividendsshall be credited to 66 32 the accumulated contributions accounts of active members,and66 33 inactive vested members, and, effective January 1, 1999, to 66 34 inactive nonvested members, until thefirst of the month66 35coinciding with or next following the member's retirement date67 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.InterestPrior 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 subsequentlyachieves vested statusreturns to covered 67 13 employment.TheUpon 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 personbecomes a67 17vested memberhas covered wages. 67 18 5.Interest and interest dividends shall cease upon the67 19first of the month coinciding with or next following the67 20person's retirement date.If the department no longer 67 21 maintains the accumulated contribution account of the person 67 22 pursuant tosection 97B.53this 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 inthis67 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 contributions68 2made by the member shall be equal to the accumulated68 3contributions as defined in section 97B.41, subsection 2,68 4which would have been made if the member of the general68 5assembly had been a member of the system during the applicable68 6period.The proof of membership in the general assembly and 68 7 payment ofaccumulatedcontributions 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 by69 29the member shall be equal to the accumulated contributions as69 30defined in section 97B.41, subsection 2, which would have been69 31made if the member of the general assembly had been a member69 32of the system during the applicable period of service in the69 33general 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 contributionsunder this sectionpursuant 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 52.3. 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 24employer and employeecontributions 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.The71 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, and97B.4997B.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 27Notwithstanding any provision of this section to the72 28contrary, effective July 1, 1994, a vested or retired member72 29must have membership service within the current calendar year72 30in order to make contributions in any manner provided by this72 31section.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 whichwritten notice was73 9submitted to the departmentthe 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 makeemployeecontributions 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.The73 35contributions paid by the member shall be equal to the74 1accumulated contributions, as defined in section 97B.41,74 2subsection 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 contributionsunder this sectionpursuant 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.The75 25contributions repaid by the member for such service shall be75 26equal to the accumulated contributions, as defined in section75 2797B.41, subsection 2, received by the member for the75 28applicable period of membership service, plus interest on the75 29accumulated contributions for the applicable period, from the75 30date of receipt by the member to the date of repayment, at the75 31interest rate provided in section 97B.70 applicable for each75 32year 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 makeemployer and employee77 5 contributions to the systembased upon the member's covered77 6wages for the most recent full calendar year in which the77 7member had reportable wages at the applicable rates in effect77 8for 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. } 1273112739. 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 17Notwithstanding any provision of this section to the78 18contrary, effective July 1, 1994, a vested or retired member78 19must have membership service within the current calendar year78 20in order to make contributions in any manner provided by this78 21section.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 2497B.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 97Bbased upon any of the following:80 31(a) Meeting the requirements for receiving retirement80 32benefits pursuant to chapter 97B based upon having attained at80 33least sixty-two years of age and upon having completed at80 34least thirty years of membership service.80 35(b) Meeting the requirements for receiving benefits under81 1section 97B.49, subsection 16, without a reduction for years81 2of service pursuant to section 97B.49, subsection 16,81 3paragraph "c". 81 4 Sec. 72. Section 602.1611, subsection 3, Code 1997, is 81 5 amended to read as follows: 81 6 3. Magistratesmay elect toshall be members of the Iowa 81 7 public employees' retirement systemupon filing in writing81 8with the department of personnelunless the magistrate elects 81 9 out of coverage under the Iowa public employees' retirement 81 10 system as provided in section97B.41, subsection 8, paragraph81 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 undersection 97B.49sections 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 section97B.49, subsection 16, paragraph "b",81 26subparagraph (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 34a.(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 2b.(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 amountwhich together withsuch 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,equalsto 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 betweenathe 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 cityandor 91 8 the retirement systemareis 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 ofA 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. Thecity treasurersmembers 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 23fifty percenta 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 thedivisions of highway safety, uniformed force95 9and radio communications, criminal investigation and bureau of95 10identification, and drug law enforcementdepartment 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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