Text: HSB00680                          Text: HSB00682
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 681

Bill Text

PAG LIN
  1  1                           DIVISION I
  1  2       PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT,
  1  3                      AND DISABILITY SYSTEM
  1  4    Section 1.  Section 97A.6, subsection 2, paragraph d,
  1  5 subparagraph (4), Code 1997, is amended to read as follows:
  1  6    (4)  For a member who terminates service, other than by
  1  7 death or disability, on or after July 1, 1996, but before July
  1  8 1, 1998, and who does not withdraw the member's contributions
  1  9 pursuant to section 97A.16, upon the member's retirement there
  1 10 shall be added one and one-half percent of the member's
  1 11 average final compensation for each year of service over
  1 12 twenty-two years.  However, this subparagraph does not apply
  1 13 to more than eight additional years of service.
  1 14    Sec. 2.  Section 97A.6, subsection 2, paragraph d, Code
  1 15 1997, is amended by adding the following new subparagraph:
  1 16    NEW SUBPARAGRAPH.  (5)  For a member who terminates
  1 17 service, other than by death or disability, on or after July
  1 18 1, 1998, and who does not withdraw the member's contributions
  1 19 pursuant to section 97A.16, upon the member's retirement there
  1 20 shall be added one and one-half percent of the member's
  1 21 average final compensation for each year of service over
  1 22 twenty-two years.  However, this subparagraph does not apply
  1 23 to more than ten additional years of service.  
  1 24                           DIVISION II
  1 25            IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
  1 26    Sec. 3.  Section 97.51, subsection 8, Code 1997, is amended
  1 27 to read as follows:
  1 28    8.  Effective July 1, 1980, a person receiving benefits, or
  1 29 who becomes eligible to receive benefits, on or after July 1,
  1 30 1980, under this chapter, shall receive the monthly increase
  1 31 in benefits provided in section 97B.49, subsection 11 97B.49G,
  1 32 subsection 3, paragraph "a".
  1 33    There is appropriated from the general fund of the state to
  1 34 the Iowa old-age and survivors' insurance liquidation fund
  1 35 from funds not otherwise appropriated an amount sufficient to
  2  1 finance the provisions of this subsection.
  2  2    Sec. 4.  Section 97B.8, unnumbered paragraph 1, Code 1997,
  2  3 is amended to read as follows:
  2  4    A board is established to be known as the "Investment Board
  2  5 of the Iowa Public Employees' Retirement System", referred to
  2  6 in this chapter as the "board", whose duties are to establish
  2  7 policy for the department in matters relating to the
  2  8 investment of the trust funds of the Iowa public employees'
  2  9 retirement system.  At least annually the board shall review
  2 10 the investment policies and procedures used by the department
  2 11 under section 97B.7, subsection 2, paragraph "b", and shall
  2 12 hold a public meeting on the investment policies and
  2 13 investment performance of the fund.  Following its review and
  2 14 the public meeting, the board shall establish an investment
  2 15 policy and goal statement which shall direct the investment
  2 16 activities of the department.  The development of the
  2 17 investment policy and goal statement and its subsequent
  2 18 execution shall be performed cooperatively between the board
  2 19 and the department.  In addition to the reasons provided in
  2 20 section 21.5, subsection 1, the board may hold a closed
  2 21 session pursuant to the requirements of section 21.5 of that
  2 22 portion of an investment board meeting in which financial or
  2 23 commercial information is provided to or discussed by the
  2 24 board if the board determines that disclosure of such
  2 25 information could result in a loss to the system or to the
  2 26 provider of the information.
  2 27    Sec. 5.  Section 97B.9, Code 1997, is amended by adding the
  2 28 following new subsection:
  2 29    NEW SUBSECTION.  4.  Regardless of any potentially
  2 30 applicable statute of limitations, if the department finds
  2 31 that the employee or employer, or both, have erroneously
  2 32 underpaid contributions, the employer shall pay the employer's
  2 33 share of contributions and interest and the interest assessed
  2 34 to the employee's share of contributions.  The employee shall
  2 35 pay the employee's share of contributions to the employer, who
  3  1 shall then remit them to the department.
  3  2    Sec. 6.  Section 97B.10, Code 1997, is amended to read as
  3  3 follows:
  3  4    97B.10  REFUNDS RETURN OF CONTRIBUTIONS.
  3  5    1.  If the department finds the employee or employer, or
  3  6 both, have erroneously paid contributions, including the
  3  7 payment of contributions prior to an individual's valid
  3  8 decision to elect out of coverage under this chapter on or
  3  9 after January 1, 1999, pursuant to section 97B.42A, the
  3 10 department shall make an adjustment, compromise, or settlement
  3 11 and make a refund of return such payments to the employee or
  3 12 employer, or both, as it finds just and equitable.  Refunds so
  3 13    2.  Payments made pursuant to this section shall be charged
  3 14 to the fund to which the erroneous collections have been
  3 15 credited and shall be paid to the employee or employer, or
  3 16 both, without interest.
  3 17    3.  A claim of an employee or employer for a refund return
  3 18 of contributions shall be made within three years of date of
  3 19 payment.  However, the department may make refund payments to
  3 20 employees or employers after the expiration of the three-year
  3 21 deadline if the department finds that the payment of the
  3 22 refund is just and equitable.
  3 23    4.  Except as provided in this subsection, interest shall
  3 24 not be paid on payments made pursuant to this section.
  3 25 However, if a claim is made within three years of the date of
  3 26 payment concerning a claim for return of contributions paid
  3 27 prior to an individual's decision to elect out of coverage
  3 28 pursuant to section 97B.42A, accumulated interest and interest
  3 29 on dividends shall apply.  In addition, the department may, at
  3 30 any time, apply accumulated interest and interest dividends on
  3 31 any payments made under this section if the department finds
  3 32 that the payment of interest is just and equitable.
  3 33    Sec. 7.  Section 97B.11, unnumbered paragraph 1, Code 1997,
  3 34 is amended to read as follows:
  3 35    Each employer shall deduct from the wages of each member of
  4  1 the system a contribution in the amount of three and seven-
  4  2 tenths percent of the covered wages paid by the employer,
  4  3 until the member's termination or retirement from employment,
  4  4 whichever is earlier.  The contributions of the employer shall
  4  5 be in the amount of five and seventy-five hundredths percent
  4  6 of the covered wages of the member.
  4  7    Sec. 8.  Section 97B.13, Code 1997, is amended to read as
  4  8 follows:
  4  9    97B.13  NO INCOME TAX DEDUCTION.
  4 10    For the purposes of the state income tax, the contribution
  4 11 required by this chapter shall not be allowed as a deduction
  4 12 to the taxpayer in computing the taxpayer's net income for any
  4 13 year in which such tax contribution is deducted from the
  4 14 taxpayer's wages.
  4 15    Sec. 9.  Section 97B.17, unnumbered paragraph 1, Code 1997,
  4 16 is amended to read as follows:
  4 17    The department shall establish and maintain records of each
  4 18 member, including but not limited to, the amount of wages of
  4 19 each member, the contribution of each member with interest,
  4 20 and interest dividends credited.  The records may be
  4 21 maintained in paper, magnetic, or electronic form, including
  4 22 optical disk storage.  These records are the basis for the
  4 23 compilation of the retirement benefits provided under this
  4 24 chapter.  The following records maintained under this chapter
  4 25 containing personal identifiable information are not public
  4 26 records for the purposes of chapter 22:
  4 27    1.  Records containing social security numbers.
  4 28    2.  Records listing designated beneficiaries.
  4 29    3.  Records specifying amounts accumulated in members'
  4 30 active accounts.
  4 31    4. 3.  Records containing names, or addresses, and amounts
  4 32 of monthly benefits to which of members or their beneficiaries
  4 33 are entitled.
  4 34    5. 4.  Records containing names, addresses, and amounts of
  4 35 lump sum refund payments to terminated members or their
  5  1 beneficiaries.
  5  2    5.  Records containing financial or commercial information
  5  3 that relates to the investment of system funds if the
  5  4 disclosure of such information could result in a loss to the
  5  5 system or to the provider of the information.
  5  6    Sec. 10.  Section 97B.19, Code 1997, is amended to read as
  5  7 follows:
  5  8    97B.19  REVISION FOR ERROR.
  5  9    If, prior to the expiration of six months following the
  5 10 delivery of such the statement provided in section 97B.18, it
  5 11 is brought to the attention of the department that any entry
  5 12 of such wages in such its records is erroneous, or that any
  5 13 item of such wages has been omitted from the records, the
  5 14 department may correct such the entry or include such the
  5 15 omitted item in its records, as the case may be.  Written
  5 16 notice of any revision of any such entry which is adverse to
  5 17 the interest of any individual shall be given to such the
  5 18 individual in any case where such the individual has
  5 19 previously been notified by the department of the amount of
  5 20 wages and of the period of payments shown by such the entry.
  5 21 Upon request in writing made prior to the expiration of six
  5 22 months immediately following the giving of the statement
  5 23 provided for in section 97B.18, the department shall afford
  5 24 any individual, or after the individual's death shall afford
  5 25 the individual's beneficiary or any other person so entitled
  5 26 in the judgment of the department, reasonable notice and
  5 27 opportunity for hearing with respect to any entry or alleged
  5 28 omission of wages of such the individual in such record, or
  5 29 any revision of any such entry.  If a hearing is held, the
  5 30 department shall make findings of fact and a decision based
  5 31 upon the evidence adduced at such the hearing and shall revise
  5 32 its records accordingly.  Judicial review of action of the
  5 33 department under this section and section 97B.20 may be sought
  5 34 in accordance with the terms of the Iowa administrative
  5 35 procedure Act and section 97B.29.
  6  1    Sec. 11.  Section 97B.25, Code 1997, is amended to read as
  6  2 follows:
  6  3    97B.25  APPLICATIONS FOR BENEFITS.
  6  4    A representative designated by the chief benefits officer
  6  5 and referred to in this chapter as a retirement benefits
  6  6 specialist shall promptly examine applications for retirement
  6  7 benefits and on the basis of facts found shall determine
  6  8 whether or not the claim is valid and if.  If the claim is
  6  9 valid, the retirement benefits specialist shall send a
  6 10 notification to the member stating the option the member has
  6 11 selected pursuant to sections 97B.49A through 97B.49G, as
  6 12 applicable, or section 97B.51, the month with respect to which
  6 13 benefits shall commence, and the monthly benefit amount
  6 14 payable, and the maximum duration.  The If the claim is
  6 15 invalid, the retirement benefits specialist shall promptly
  6 16 notify the applicant and any other interested party of the
  6 17 decision and the reasons.  Unless the applicant or other
  6 18 interested party, within thirty calendar days after the
  6 19 notification was mailed to the applicant's or party's last
  6 20 known address, files an appeal as provided in section 97B.20A,
  6 21 the decision is final and benefits shall be paid or denied in
  6 22 accord with the decision.  A retirement application shall not
  6 23 be amended or revoked by the member once the first retirement
  6 24 allowance is paid.  A member's death during the first month of
  6 25 entitlement shall not invalidate an approved application.
  6 26    Sec. 12.  Section 97B.40, Code 1997, is amended to read as
  6 27 follows:
  6 28    97B.40  FRAUD.
  6 29    1.  Whoever, A person shall be guilty of a fraudulent
  6 30 practice if the person makes, or causes to be made, any false
  6 31 statement or representation for the purpose of causing an
  6 32 increase in any payment authorized to be made under this
  6 33 chapter, or for the purpose of causing any payment to be made
  6 34 where no payment is authorized under this chapter, shall
  6 35 willfully make or cause to be made any for the purpose of
  7  1 obtaining confidential information from the department, or for
  7  2 any other unlawful purpose related to this chapter.
  7  3    2.  For purposes of this section, "any false statement or
  7  4 representation" includes the following:
  7  5    a.  Any false statement or representation willfully made or
  7  6 caused to be made as to the amount of any wages paid or
  7  7 received for the period during which earned or unpaid, knowing
  7  8 it to be false or whoever makes or causes to be made any.
  7  9    b.  Any false statement of a material fact made or caused
  7 10 to be made knowing it to be false in any application for any
  7 11 payment under this chapter, or whoever willfully makes or
  7 12 causes to be made any.
  7 13    c.  Any false statement, representation, affidavit, or
  7 14 document willfully made, presented, or caused to be made in
  7 15 connection with such an application for any payment under this
  7 16 chapter knowing them it to be false, shall be guilty of a
  7 17 fraudulent practice.
  7 18    d.  Any unauthorized use of any security devices, such as
  7 19 personal identification codes, utilized for the purpose of
  7 20 accessing information from the department.
  7 21    Sec. 13.  Section 97B.41, subsection 6, Code 1997, is
  7 22 amended to read as follows:
  7 23    6.  "Bona fide retirement" means a retirement by a vested
  7 24 member which meets the requirements of section 97B.52A,
  7 25 subsection 1, and in which the member is eligible to receive
  7 26 benefits under this chapter.
  7 27    Sec. 14.  Section 97B.41, subsection 8, Code 1997, is
  7 28 amended by striking the subsection and inserting in lieu
  7 29 thereof the following:
  7 30    8.  "Employee" means an individual who is employed as
  7 31 defined in this chapter for whom coverage under this chapter
  7 32 is mandatory.
  7 33    a.  "Employee" shall also include any of the following
  7 34 individuals who do not elect out of coverage under this
  7 35 chapter pursuant to section 97B.42A:
  8  1    (1)  Elective officials in positions for which the
  8  2 compensation is on a fee basis, elective officials of school
  8  3 districts, elective officials of townships, and elective
  8  4 officials of other political subdivisions who are in part-time
  8  5 positions.  An elective official covered under this chapter
  8  6 may terminate membership under this chapter by informing the
  8  7 department in writing of the expiration of the member's term
  8  8 of office.  A county attorney is an employee for purposes of
  8  9 this chapter whether that county attorney is employed on a
  8 10 full-time or part-time basis.
  8 11    (2)  Members of the general assembly of Iowa and temporary
  8 12 employees of the general assembly of Iowa.  A member of the
  8 13 general assembly covered under this chapter may terminate
  8 14 membership under this chapter by informing the department in
  8 15 writing of the member's intent to terminate membership.
  8 16    Temporary employees of the general assembly covered under
  8 17 this chapter may terminate membership by sending written
  8 18 notification to the department of their separation from
  8 19 service.
  8 20    (3)  Nonvested employees of drainage and levee districts.
  8 21    (4)  Employees of a community action program determined to
  8 22 be an instrumentality of the state or a political subdivision.
  8 23    (5)  Magistrates.
  8 24    (6)  Persons employed under the federal Job Training
  8 25 Partnership Act of 1982, Pub. L. No. 97-300.
  8 26    (7)  Members of the ministry, rabbinate, or other religious
  8 27 order who have taken the vow of poverty.
  8 28    (8)  Persons employed as city managers, or as city
  8 29 administrators performing the duties of city managers, under a
  8 30 form of city government listed in chapter 372 or chapter 420.
  8 31    (9)  Members of the state transportation commission, the
  8 32 board of parole, and the state health facilities council.
  8 33    (10)  Employees appointed by the state board of regents who
  8 34 do not elect coverage in a retirement system qualified by the
  8 35 state board of regents that meets the criteria of section
  9  1 97B.2.
  9  2    (11)  Persons employed by the board of trustees for the
  9  3 statewide fire and police retirement system established in
  9  4 section 411.36.
  9  5    b.  "Employee" does not mean the following individuals:
  9  6    (1)  Individuals who are enrolled as students and whose
  9  7 primary occupations are as students who are incidentally
  9  8 employed by employers.
  9  9    (2)  Graduate medical students while serving as interns or
  9 10 resident doctors in training at any hospital, or county
  9 11 medical examiners and deputy county medical examiners under
  9 12 chapter 331, division V, part 8.
  9 13    (3)  Employees hired for temporary employment of less than
  9 14 six months or one thousand forty hours in a calendar year.  An
  9 15 employee who works for an employer for six or more months in a
  9 16 calendar year or who works for an employer for more than one
  9 17 thousand forty hours in a calendar year is not a temporary
  9 18 employee under this subparagraph.  Adjunct instructors are
  9 19 temporary employees for the purposes of this chapter.  As used
  9 20 in this section, unless the context otherwise requires,
  9 21 "adjunct instructors" means instructors employed by a
  9 22 community college or a university governed by the state board
  9 23 of regents without a continuing contract, whose teaching load
  9 24 does not exceed one-half time for two full semesters or three
  9 25 full quarters per calendar year.
  9 26    (4)  Foreign exchange teachers and visitors including alien
  9 27 scholars, trainees, professors, teachers, research assistants,
  9 28 and specialists in their field of specialized knowledge or
  9 29 skill.
  9 30    (5)  Employees of the Iowa dairy industry commission
  9 31 established under chapter 179, the Iowa beef cattle producers
  9 32 association established under chapter 181, the Iowa pork
  9 33 producers council established under chapter 183A, the Iowa
  9 34 turkey marketing council established under chapter 184A, the
  9 35 Iowa soybean promotion board established under chapter 185,
 10  1 the Iowa corn promotion board established under chapter 185C,
 10  2 and the Iowa egg council established under chapter 196A.
 10  3    (6)  Judicial hospitalization referees appointed under
 10  4 section 229.21.
 10  5    (7)  Employees of an area agency on aging, if as of July 1,
 10  6 1994, the agency provides for participation by all of its
 10  7 employees in an alternative qualified plan pursuant to the
 10  8 requirements of the federal Internal Revenue Code.
 10  9    (8)  Persons employed through any program described in
 10 10 section 84A.7 and provided by the Iowa conservation corps.
 10 11    8A.  "Employer" means the state of Iowa, the counties,
 10 12 municipalities, agencies, public school districts, all
 10 13 political subdivisions, and all of their departments and
 10 14 instrumentalities, including area agencies on aging, other
 10 15 than those employing persons as specified in subsection 8,
 10 16 paragraph "b", subparagraph (7), and joint planning
 10 17 commissions created under chapter 28E or 28I.
 10 18    If an interstate agency is established under chapter 28E
 10 19 and similar enabling legislation in an adjoining state, and an
 10 20 employer had made contributions to the system for employees
 10 21 performing functions which are transferred to the interstate
 10 22 agency, the employees of the interstate agency who perform
 10 23 those functions shall be considered to be employees of the
 10 24 employer for the sole purpose of membership in the system,
 10 25 although the employer contributions for those employees are
 10 26 made by the interstate agency.
 10 27    Sec. 15.  Section 97B.41, subsection 14, Code 1997, is
 10 28 amended to read as follows:
 10 29    14.  "Membership service" means service rendered by a
 10 30 member after July 4, 1953.  Years of membership service shall
 10 31 be counted to the complete quarter calendar year.  However,
 10 32 membership service for a calendar year shall not include more
 10 33 than four quarters.  In determining a member's period of
 10 34 membership service, the department shall combine all periods
 10 35 of service for which the member has made contributions.  If
 11  1 the department has not maintained the accumulated contribution
 11  2 account of the member for a period of service, as provided
 11  3 pursuant to section 97B.53, subsection 6, the department shall
 11  4 credit the member for the service if the member submits
 11  5 satisfactory proof to the department that the member did make
 11  6 the contributions for the period of service and did not take a
 11  7 refund for the period of service.
 11  8    Sec. 16.  Section 97B.41, subsection 19, Code 1997, is
 11  9 amended to read as follows:
 11 10    19.  "Service" means uninterrupted service under this
 11 11 chapter by an employee, except an elected official, from the
 11 12 date the employee last entered employment of the employer
 11 13 until the date the employee's employment shall be terminated
 11 14 by death, retirement, resignation or discharge; provided,
 11 15 however, the service of any employee shall not be deemed to be
 11 16 interrupted by for which the employee is paid covered wages.
 11 17 Service shall also mean the following:
 11 18    a.  Service in the armed forces of the United States, if
 11 19 the employee was employed by the a covered employer
 11 20 immediately prior to entry into the armed forces, and if the
 11 21 employee was released from service and returns to covered
 11 22 employment with the an employer within twelve months of the
 11 23 date on which the employee has the right of release from
 11 24 service or within a longer period as required by the
 11 25 applicable laws of the United States.
 11 26    b.  Leave of absence or vacation authorized by the employer
 11 27 prior to July 1, 1998, for a period not exceeding twelve
 11 28 months and ending no later than July 1, 1999.
 11 29    c.  A leave of absence authorized pursuant to the
 11 30 requirements of the federal Family and Medical Leave Act of
 11 31 1993 is considered a leave of absence authorized by the
 11 32 employer.
 11 33    c.  The termination at the end of the school year of the
 11 34 contract of employment of an employee in the public schools of
 11 35 the state of Iowa, provided the employee enters into a further
 12  1 contract of employment in the public schools of the state of
 12  2 Iowa for the next succeeding school year.
 12  3    d.  Temporary or seasonal interruptions in service such as
 12  4 service of school bus drivers, schoolteachers under regular
 12  5 contract, interim teachers or substitute teachers, instructors
 12  6 at Iowa state university of science and technology, the state
 12  7 university of Iowa, or university of northern Iowa, employees
 12  8 in state schools or hospital dormitories, other positions for
 12  9 employees of a school corporation or educational institution
 12 10 when the temporary suspension of service does not terminate
 12 11 the period of employment of the employee, or temporary
 12 12 employees of the general assembly and the employee returns to
 12 13 service at a school corporation or educational institution
 12 14 upon the end of the temporary or seasonal interruption.
 12 15    Sec. 17.  Section 97B.41, subsection 21, Code 1997, is
 12 16 amended to read as follows:
 12 17    21.  "Special service" means service for an employer while
 12 18 employed in a protection occupation as provided in section
 12 19 97B.49, subsection 16, paragraph "a" 97B.49B, and as a county
 12 20 sheriff, deputy sheriff, or airport fire fighter as provided
 12 21 in section 97B.49, subsection 16, paragraph "b" 97B.49C.
 12 22    Sec. 18.  Section 97B.41, subsection 23, paragraph a, Code
 12 23 1997, is amended to read as follows:
 12 24    a.  "Three-year average covered wage" means a member's
 12 25 covered wages averaged for the highest three years of the
 12 26 member's service, except as otherwise provided in this
 12 27 subsection.  The highest three years of a member's covered
 12 28 wages shall be determined using calendar years.  However, if a
 12 29 member's final quarter of a year of employment does not occur
 12 30 at the end of a calendar year, the department may determine
 12 31 the wages for the third year by computing the average quarter
 12 32 of all quarters from the member's highest calendar year of
 12 33 covered wages not being used in the selection of the two
 12 34 highest years and using the computed average quarter for each
 12 35 quarter in the third year in which no wages have been reported
 13  1 in combination with the final quarter or quarters of the
 13  2 member's service to create a full year.  However, the
 13  3 department shall not use the member's final quarter of wages
 13  4 if using that quarter would reduce the member's three-year
 13  5 average covered wage.  If the three-year average covered wage
 13  6 of a member exceeds the highest maximum covered wages in
 13  7 effect for a calendar year during the member's period of
 13  8 service, the three-year average covered wage of the member
 13  9 shall be reduced to the highest maximum covered wages in
 13 10 effect during the member's period of service.  Notwithstanding
 13 11 any other provision of this paragraph to the contrary, a
 13 12 member's wages for the third year as computed by this
 13 13 paragraph shall not be greater than the member's highest
 13 14 actual calendar year of covered wages for a member whose first
 13 15 month of entitlement is January 1999 or later.
 13 16    Sec. 19.  Section 97B.41, subsection 25, paragraph b,
 13 17 subparagraph (17), unnumbered paragraph 2, Code 1997, is
 13 18 amended to read as follows:
 13 19    Notwithstanding any other provision of this chapter
 13 20 providing for the payment of the benefits provided in section
 13 21 97B.49, subsection 16 or 17 97B.49B, 97B.49C, 97B.49D, or
 13 22 97B.49G, the department shall establish the covered wages
 13 23 limitation which applies to members covered under section
 13 24 97B.49, subsection 16 or 17 97B.49B, 97B.49C, 97B.49D, or
 13 25 97B.49G, at the same level as is established under this
 13 26 subparagraph for other members of the system.
 13 27    Sec. 20.  Section 97B.42A, Code 1997, is amended by
 13 28 striking the section and inserting in lieu thereof the
 13 29 following:
 13 30    97B.42A  OPTIONAL EXCLUSION FROM MEMBERSHIP.
 13 31    1.  Commencing January 1, 1999, a person who is newly hired
 13 32 in a position as an employee, as defined in section 97B.1A,
 13 33 subsection 8, paragraph "a", shall be covered under this
 13 34 chapter unless the person files an application with
 13 35 appropriate documentation to the department within sixty days
 14  1 of employment in the position to affirmatively elect out of
 14  2 coverage.  A decision to elect out of coverage under this
 14  3 chapter is irrevocable upon approval from the system.
 14  4    2.  If a person elects out of coverage pursuant to this
 14  5 section, the period of time from the date on which the person
 14  6 was newly hired until the date the person's election out of
 14  7 coverage is effective shall not constitute service for
 14  8 purposes of coverage under this chapter.  In addition, a wage
 14  9 adjustment shall be processed for the person based on any
 14 10 contributions collected pursuant to this chapter during that
 14 11 period of time and shall be returned pursuant to section
 14 12 97B.10.
 14 13    3.  A person who is employed in a position as an employee
 14 14 as defined in section 97B.1A, subsection 8, paragraph "a", on
 14 15 January 1, 1999, and who has not elected coverage under this
 14 16 chapter prior to that date and is not an active member of
 14 17 another retirement system in the state which is maintained in
 14 18 whole or in part by public contributions or payments, shall
 14 19 begin coverage under the system on January 1, 1999, unless the
 14 20 person files an application with appropriate documentation
 14 21 with the department to elect out of coverage on or before
 14 22 January 1, 2000.  If a person elects out of coverage, the
 14 23 period of time from January 1, 1999, until the date the
 14 24 person's election out of coverage is effective shall not
 14 25 constitute service for purposes of coverage under this chapter
 14 26 and a wage adjustment shall be processed for the person based
 14 27 on any contributions collected pursuant to this chapter during
 14 28 that period of time and shall be returned pursuant to section
 14 29 97B.10.  A decision to elect out of coverage under this
 14 30 chapter pursuant to this section is irrevocable upon approval
 14 31 from the department.
 14 32    4.  A person who becomes a member of the system pursuant to
 14 33 subsection 3, or who is a member of the system, may purchase
 14 34 credit, pursuant to section 97B.73, for one or more quarters
 14 35 of service prior to January 1, 1999, in which the person was
 15  1 employed in a position as described in section 97B.1A,
 15  2 subsection 8, paragraph "a", but was not a member of the
 15  3 system.
 15  4    Sec. 21.  Section 97B.43, unnumbered paragraph 2, Code
 15  5 1997, is amended to read as follows:
 15  6    Any person with a record of thirty years as a public
 15  7 employee in the state of Iowa prior to July 1, 1947, and who
 15  8 is not eligible for prior service credit under other
 15  9 provisions of this section, is entitled to a credit for years
 15 10 of prior service in the determination of the retirement
 15 11 allowance payment under this chapter, provided the public
 15 12 employee makes application to the department of personnel for
 15 13 credit for prior public service, accompanied by verification
 15 14 of the person's claim as the department may require.  The
 15 15 person's allowance for prior service credits shall be computed
 15 16 in the same manner as otherwise provided in this section, but
 15 17 shall not exceed the sum of four hundred fifty dollars nor be
 15 18 less than three hundred dollars per annum.  Any such person is
 15 19 entitled to receive retirement allowances computed as provided
 15 20 by this chapter, effective from the date of application to the
 15 21 department, provided such application is approved.  However,
 15 22 beginning July 1, 1975, the amount of such person's retirement
 15 23 allowance payment received during June 1975, as computed under
 15 24 this section shall be increased by two hundred percent and the
 15 25 allowance for prior service credits shall not exceed one
 15 26 thousand three hundred fifty dollars nor be less than nine
 15 27 hundred dollars per annum.  Effective July 1, 1987, there is
 15 28 appropriated for each fiscal year from the Iowa public
 15 29 employees' retirement fund created in section 97B.7 to the
 15 30 department of personnel an amount sufficient to fund the
 15 31 retirement allowance increases paid under this paragraph.
 15 32 Effective July 1, 1980, a person with a record of thirty years
 15 33 as a public employee in the state of Iowa prior to July 1,
 15 34 1947, receiving retirement allowances under this chapter shall
 15 35 receive the monthly increase in benefits provided in section
 16  1 97B.49, subsection 11 97B.49G, subsection 3, paragraph "a".
 16  2    Sec. 22.  Section 97B.45, subsection 4, Code 1997, is
 16  3 amended to read as follows:
 16  4    4.  The first of any month in which a member meets the
 16  5 membership service and age requirements to retire under
 16  6 section 97B.49, subsection 15 the member is at least fifty-
 16  7 five years of age and for which the sum of the number of years
 16  8 of membership service and prior service and the member's age
 16  9 in years as of the member's last birthday equals or exceeds
 16 10 eighty-eight.
 16 11    Sec. 23.  Section 97B.46, subsection 2, Code 1997, is
 16 12 amended by striking the subsection.
 16 13    Sec. 24.  Section 97B.46, subsection 3, Code 1997, is
 16 14 amended to read as follows:
 16 15    3.  A member remaining in service after attaining the age
 16 16 of seventy years is entitled to receive a retirement allowance
 16 17 under section 97B.49 sections 97B.49A through 97B.49H, as
 16 18 applicable, commencing with payment for the calendar month
 16 19 within which the written notice is submitted to the
 16 20 department, except that if the member fails to submit the
 16 21 notice on a timely basis, retroactive payments shall be made
 16 22 for no more than six months immediately preceding the month in
 16 23 which the written notice is submitted.
 16 24    Sec. 25.  Section 97B.48, subsection 3, Code 1997, is
 16 25 amended to read as follows:
 16 26    3.  As of the first of the month in which a member attains
 16 27 the age of seventy years, the member may commence receiving a
 16 28 retirement allowance regardless of the member's employment
 16 29 status.  Upon termination from employment of a member
 16 30 receiving a retirement allowance pursuant to this subsection,
 16 31 the member is entitled to have the member's monthly retirement
 16 32 allowance recalculated using the applicable formula for
 16 33 determining a retirement allowance pursuant to sections
 16 34 97B.49A through 97B.49G, as applicable, in place at the time
 16 35 of the member's first month of entitlement.
 17  1    Sec. 26.  Section 97B.48, Code 1997, is amended by adding
 17  2 the following new subsections:
 17  3    NEW SUBSECTION.  4.  Payment of a member's retirement
 17  4 allowance pursuant to sections 97B.49A through 97B.49H shall
 17  5 commence no later than the required beginning date specified
 17  6 under section 401(a)(9) of the federal Internal Revenue Code
 17  7 regardless of whether the member has submitted the appropriate
 17  8 notice to receive an allowance.  If the lump sum actuarial
 17  9 equivalent under section 97B.48, subsection 1, could have been
 17 10 selected by the member, payments shall be made in a lump sum
 17 11 rather than as a monthly allowance.
 17 12    NEW SUBSECTION.  5.  In the event that all, or any portion,
 17 13 of the retirement allowance payable to a member pursuant to
 17 14 subsection 4 shall remain unpaid solely by reason of the
 17 15 inability of the department to locate the member, the amounts
 17 16 payable shall be forfeited.  If the member is located after
 17 17 the amounts payable are forfeited, the amounts payable shall
 17 18 be restored.
 17 19    Sec. 27.  Section 97B.48A, subsection 3, Code 1997, is
 17 20 amended to read as follows:
 17 21    3.  Upon a retirement after reemployment, a retired member
 17 22 may have the retired member's retirement allowance
 17 23 redetermined under this section or section 97B.49 or 97B.48,
 17 24 97B.49A through 97B.49H, 97B.50, or 97B.51, whichever is
 17 25 applicable, based upon the addition of credit for the years of
 17 26 membership service of the employee after reemployment, the
 17 27 covered wage during reemployment, and the age of the employee
 17 28 after reemployment.  The member shall receive a single
 17 29 retirement allowance calculated from both periods of
 17 30 membership service, one based on the initial retirement and
 17 31 one based on the second retirement following reemployment.  If
 17 32 the total years of membership service and prior service of a
 17 33 member who has been reemployed equals or exceeds thirty, the
 17 34 years of membership service on which the original retirement
 17 35 allowance was based may be reduced by a fraction of the years
 18  1 of service equal to the number of years by which the total
 18  2 years of membership service and prior service exceeds thirty
 18  3 divided by thirty, if this reduction in years of service will
 18  4 increase the total retirement allowance of the member.  The
 18  5 additional retirement allowance calculated for the period of
 18  6 reemployment shall be added to the retirement allowance
 18  7 calculated for the initial period of membership service and
 18  8 prior service, adjusted as provided in this subsection.  The
 18  9 retirement allowance calculated for the initial period of
 18 10 membership service and prior service shall not be adjusted for
 18 11 any other factor than years of service.  The retired member
 18 12 shall not receive a retirement allowance based upon more than
 18 13 a total of thirty years of service.  Effective July 1, 1998, a
 18 14 redetermination of a retirement allowance as authorized by
 18 15 this subsection for a retired member whose combined service
 18 16 exceeds the applicable years of service for that member as
 18 17 provided in sections 97B.49A through 97B.49G shall have the
 18 18 determination of the member's reemployment benefit based upon
 18 19 the percentage multiplier as determined for that member as
 18 20 provided in sections 97B.49A through 97B.49G.
 18 21    Sec. 28.  Section 97B.48A, subsection 4, Code 1997, is
 18 22 amended to read as follows:
 18 23    4.  The department shall pay to the member the accumulated
 18 24 contributions of the member and to the employer the employer
 18 25 contributions, plus interest plus interest dividends as
 18 26 provided in section 97B.70, for all completed calendar years,
 18 27 compounded as provided in section 97B.70, on the covered wages
 18 28 earned by a retired member that are not used in the
 18 29 recalculation of the retirement allowance of a member.
 18 30    Sec. 29.  NEW SECTION.  97B.49A  MONTHLY PAYMENTS OF
 18 31 ALLOWANCE – GENERAL CALCULATION.
 18 32    1.  DEFINITIONS.  For the purposes of this section:
 18 33    a.  "Applicable percentage" means sixty percent or, for
 18 34 each active or inactive vested member retiring on or after
 18 35 July 1, 1996, sixty percent plus, if applicable, an additional
 19  1 one-fourth of one percentage point for each additional
 19  2 calendar quarter of membership and prior service beyond thirty
 19  3 years of service, not to exceed a total of five additional
 19  4 percentage points.
 19  5    b.  "Fraction of years of service" means a number, not to
 19  6 exceed one, equal to the sum of the years of membership
 19  7 service and the number of years of prior service divided by
 19  8 thirty years.
 19  9    2.  ENTITLEMENT TO MONTHLY ALLOWANCE.  Each member, upon
 19 10 retirement on or after the member's normal retirement date, is
 19 11 entitled to receive a monthly retirement allowance determined
 19 12 under this section.  For an inactive vested member the monthly
 19 13 retirement allowance shall be determined on the basis of this
 19 14 section and section 97B.50 as they are in effect on the date
 19 15 of the member's retirement.
 19 16    3.  CALCULATION OF MONTHLY ALLOWANCE.  For each active or
 19 17 inactive vested member retiring on or after July 1, 1994, with
 19 18 four or more complete years of service, a monthly benefit
 19 19 shall be computed which is equal to one-twelfth of an amount
 19 20 equal to the applicable percentage of the three-year average
 19 21 coverage wage multiplied by a fraction of years of service.
 19 22 However, if benefits under this section commence on an early
 19 23 retirement date, the amount of the benefit shall be reduced in
 19 24 accordance with section 97B.50.
 19 25    4.  ALTERNATIVE CALCULATIONS.
 19 26    a.  For each active member employed before January 1, 1976,
 19 27 and retiring on or after January 1, 1976, and for each member
 19 28 who was a vested member before January 1, 1976, with four or
 19 29 more complete years of service, a formula benefit shall be
 19 30 determined equal to the larger of the benefit determined under
 19 31 this paragraph and paragraph "b" of this subsection, as
 19 32 applicable, the benefit determined under subsection 3, or the
 19 33 benefit determined under section 97B.49G, subsection 1.  The
 19 34 amount of the monthly formula benefit for each such active or
 19 35 vested member who retired on or after January 1, 1976, shall
 20  1 be equal to one-twelfth of one and fifty-seven hundredths
 20  2 percent per year of membership service multiplied by the
 20  3 member's average annual covered wages.  In no case shall the
 20  4 amount of monthly formula benefit accrued for membership
 20  5 service prior to July 1, 1967, be less than the monthly
 20  6 annuity at the normal retirement date determined by applying
 20  7 the sum of the member's accumulated contributions, the
 20  8 member's employer's accumulated contributions on or before
 20  9 June 30, 1967, and any retirement dividends standing to the
 20 10 member's credit on or before December 31, 1966, to the annuity
 20 11 tables in use by the department with due regard to the
 20 12 benefits payable from such accumulated contributions under
 20 13 sections 97B.52 and 97B.53.
 20 14    b.  For each member employed before January 1, 1976, who
 20 15 has qualified for prior service credit in accordance with the
 20 16 first paragraph of section 97B.43, a formula benefit shall be
 20 17 determined equal to the larger of the benefit determined under
 20 18 this paragraph, and paragraph "a" of this subsection, as
 20 19 applicable, the benefit determined under subsection 3, or the
 20 20 benefit determined under section 97B.49G, subsection 1.  The
 20 21 amount of the monthly formula benefit under this paragraph
 20 22 shall be equal to eight-tenths of one percent per year of
 20 23 prior service credit multiplied by the monthly rate of the
 20 24 member's total remuneration not in excess of three thousand
 20 25 dollars annually during the twelve consecutive months of the
 20 26 member's prior service for which that total remuneration was
 20 27 the highest.  An additional three-tenths of one percent of the
 20 28 remuneration not in excess of three thousand dollars annually
 20 29 shall be payable for prior service during each year in which
 20 30 the accrued liability for benefit payments created by the
 20 31 abolished system is funded by appropriation from the Iowa
 20 32 public employees' retirement fund.
 20 33    c.  For each active and vested member retiring with less
 20 34 than four complete years of service and who therefore cannot
 20 35 have a benefit determined under the formula benefit of
 21  1 paragraph "a" or "b" of this subsection, subsection 3, or
 21  2 section 97B.49G, subsection 1, a monthly annuity for
 21  3 membership service shall be determined by applying the
 21  4 member's accumulated contributions and the employer's matching
 21  5 accumulated contributions as of the effective retirement date
 21  6 and any retirement dividends standing to the member's credit
 21  7 on or before December 31, 1966, to the annuity tables in use
 21  8 by the department according to the member's age and contingent
 21  9 annuitant's age, if applicable.
 21 10    Sec. 30.  NEW SECTION.  97B.49B  PROTECTION OCCUPATION.
 21 11    1.  DEFINITIONS.  For purposes of this section:
 21 12    a.  "Applicable percentage" means sixty percent or, for
 21 13 each active or inactive vested member retiring on or after
 21 14 July 1, 1996, sixty percent plus, if applicable, an additional
 21 15 one-fourth of one percentage point for each additional
 21 16 calendar quarter of membership and prior service beyond
 21 17 twenty-five years of service, not to exceed a total of five
 21 18 additional percentage points.
 21 19    b.  "Fraction of years of service" means a number, not to
 21 20 exceed one, equal to the sum of the years of membership and
 21 21 prior service in a protection occupation divided by twenty-
 21 22 five years.
 21 23    c.  "Protection occupation" includes all of the following:
 21 24    (1)  A conservation peace officer employed under section
 21 25 456A.13.
 21 26    (2)  A marshal in a city not covered under chapter 400 or a
 21 27 fire fighter or police officer of a city not participating in
 21 28 the retirement systems established in chapter 410 or 411.
 21 29    (3)  A correctional officer or correctional supervisor
 21 30 employed by the Iowa department of corrections, and any other
 21 31 employee of that department whose primary purpose is, through
 21 32 ongoing direct inmate contact, to enforce and maintain
 21 33 discipline, safety, and security within a correctional
 21 34 facility.  The Iowa department of corrections and the
 21 35 personnel division of the department of personnel shall
 22  1 jointly determine which job classifications are covered under
 22  2 this subparagraph.
 22  3    (4)  An airport safety officer employed under chapter 400
 22  4 by an airport commission in a city of one hundred thousand
 22  5 population or more.
 22  6    (5)  An employee of the state department of transportation
 22  7 who is designated as a "peace officer" by resolution under
 22  8 section 321.477, but only if the employee retires on or after
 22  9 July 1, 1990.  For purposes of this subparagraph, service as a
 22 10 traffic weight officer employed by the highway commission
 22 11 prior to the creation of the state department of
 22 12 transportation or as a peace officer employed by the Iowa
 22 13 state commerce commission prior to the creation of the state
 22 14 department of transportation shall be included in computing
 22 15 the employee's years of membership service.
 22 16    (6)  A fire prevention inspector peace officer employed by
 22 17 the department of public safety prior to July 1, 1994, who
 22 18 does not elect coverage under the Iowa department of public
 22 19 safety peace officers' retirement, accident, and disability
 22 20 system, as provided in section 97B.42B.
 22 21    (7)  An employee of a judicial district department of
 22 22 correctional services who is employed as a probation officer
 22 23 III or a parole officer III.
 22 24    (8)  A sheriff, deputy sheriff, or airport firefighter as
 22 25 defined in section 97B.49C who does not receive a monthly
 22 26 retirement allowance pursuant to section 97B.49C for this
 22 27 service.
 22 28    2.  CALCULATION OF MONTHLY ALLOWANCE.  Notwithstanding
 22 29 other provisions of this chapter, a member who is or has been
 22 30 employed in a protection occupation who retires on or after
 22 31 July 1, 1994, and at the time of retirement is at least fifty-
 22 32 five years of age may elect to receive, in lieu of the receipt
 22 33 of any benefits as calculated pursuant to section 97B.49A or
 22 34 97B.49D, a monthly retirement allowance equal to one-twelfth
 22 35 of an amount equal to the applicable percentage of the three-
 23  1 year average covered wage as a member who has been employed in
 23  2 a protection occupation multiplied by a fraction of years of
 23  3 service, with benefits payable during the member's lifetime.
 23  4    3.  ADDITIONAL CONTRIBUTIONS.
 23  5    a.  Annually, the department of personnel shall actuarially
 23  6 determine the cost of the additional benefits provided for
 23  7 members covered under this section as a percentage of the
 23  8 covered wages of the employees covered by this section.  Sixty
 23  9 percent of the cost shall be paid by the employers of
 23 10 employees covered under this section and forty percent of the
 23 11 cost shall be paid by the employees.  The employer and
 23 12 employee contributions required under this paragraph are in
 23 13 addition to the contributions paid under sections 97B.11 and
 23 14 97B.11A.
 23 15    b.  (1)  For the fiscal year commencing July 1, 1988, and
 23 16 each succeeding fiscal year, there is appropriated from the
 23 17 state fish and game protection fund to the department of
 23 18 personnel the amount necessary to pay the employer share of
 23 19 the cost of the additional benefits provided to employees
 23 20 covered under subsection 1, paragraph "c", subparagraph (1).
 23 21    (2)  Annually, during each fiscal year commencing with the
 23 22 fiscal year beginning July 1, 1988, each applicable city shall
 23 23 pay to the department of personnel the amount necessary to pay
 23 24 the employer share of the cost of the additional benefits
 23 25 provided to employees of that city covered under subsection 1,
 23 26 paragraph "c", subparagraphs (2) and (4).
 23 27    (3)  For the fiscal year commencing July 1, 1988, and each
 23 28 succeeding fiscal year, the department of corrections shall
 23 29 pay to the department of personnel from funds appropriated to
 23 30 the Iowa department of corrections, the amount necessary to
 23 31 pay the employer share of the cost of the additional benefits
 23 32 provided to employees covered under subsection 1, paragraph
 23 33 "c", subparagraph (3).
 23 34    (4)  For the fiscal year commencing July 1, 1990, and each
 23 35 succeeding fiscal year, the state department of transportation
 24  1 shall pay to the department of personnel, from funds
 24  2 appropriated to the state department of transportation from
 24  3 the road use tax fund and the primary road fund, the amount
 24  4 necessary to pay the employer share of the cost of the
 24  5 additional benefits provided to employees covered under
 24  6 subsection 1, paragraph "c", subparagraph (5).
 24  7    (5)  For the fiscal year commencing July 1, 1992, and each
 24  8 succeeding fiscal year, the department of public safety shall
 24  9 pay to the department of personnel from funds appropriated to
 24 10 the department of public safety, the amount necessary to pay
 24 11 the employer share of the cost of the additional benefits
 24 12 provided to a fire prevention inspector peace officer pursuant
 24 13 to subsection 1, paragraph "c", subparagraph (6).
 24 14    (6)  For the fiscal year commencing July 1, 1994, and each
 24 15 succeeding fiscal year, each judicial district department of
 24 16 correctional services shall pay to the department of personnel
 24 17 from funds appropriated to that judicial district department
 24 18 of correctional services, the amount necessary to pay the
 24 19 employer share of the cost of the additional benefits provided
 24 20 to employees covered under subsection 1, paragraph "c",
 24 21 subparagraph (7).
 24 22    Sec. 31.  NEW SECTION.  97B.49C  SHERIFFS, DEPUTY SHERIFFS,
 24 23 AND AIRPORT FIRE FIGHTERS.
 24 24    1.  DEFINITIONS.  For purposes of this section:
 24 25    a.  "Airport fire fighter" means an airport fire fighter
 24 26 employed by the military division of the department of public
 24 27 defense.
 24 28    b.  "Applicable percentage" means the greater of the
 24 29 following percentages:
 24 30    (1)  Sixty percent.
 24 31    (2)  For each active or inactive vested member retiring on
 24 32 or after July 1, 1996, and before July 1, 1998, sixty percent
 24 33 plus, if applicable, an additional one-fourth of one
 24 34 percentage point for each additional calendar quarter of
 24 35 eligible service beyond twenty-two years of service, not to
 25  1 exceed a total of five additional percentage points.
 25  2    (3)  For each active or inactive vested member retiring on
 25  3 or after July 1, 1998, sixty percent plus, if applicable, an
 25  4 additional three-eighths of one percentage point for each
 25  5 additional calendar quarter of eligible service beyond twenty-
 25  6 two years of service, not to exceed a total of twelve
 25  7 additional percentage points.
 25  8    c.  "Deputy sheriff" means a deputy sheriff appointed
 25  9 pursuant to section 341.1 prior to July 1, 1981, or section
 25 10 331.903 on or after July 1, 1981.
 25 11    d.  "Eligible service" means membership and prior service
 25 12 as an airport fire fighter, sheriff, and deputy sheriff under
 25 13 this section.  In addition, eligible service includes
 25 14 membership and prior service as a marshal in a city not
 25 15 covered under chapter 400 or a fire fighter or police officer
 25 16 of a city not participating in the retirement systems
 25 17 established in chapter 410 or 411, and as an airport fire
 25 18 fighter prior to July 1, 1994.
 25 19    e.  "Fraction of years of service" means a number, not to
 25 20 exceed one, equal to the sum of the years of eligible service
 25 21 under this section divided by twenty-two years.
 25 22    f.  "Sheriff" means a county sheriff as defined in section
 25 23 39.17.
 25 24    2.  CALCULATION OF MONTHLY ALLOWANCE.  Notwithstanding
 25 25 other provisions of this chapter, a member who retires from
 25 26 employment as a sheriff, deputy sheriff, or airport fire
 25 27 fighter on or after July 1, 1994, and at the time of
 25 28 retirement is at least fifty-five years of age may elect to
 25 29 receive, in lieu of the receipt of any benefits as calculated
 25 30 pursuant to section 97B.49A or 97B.49D, a monthly retirement
 25 31 allowance equal to one-twelfth of an amount equal to the
 25 32 applicable percentage of the three-year average coverage wage
 25 33 as a member who has been employed in eligible service
 25 34 multiplied by a fraction of years of service, with benefits
 25 35 payable during the member's lifetime.
 26  1    3.  ADDITIONAL CONTRIBUTIONS.
 26  2    a.  Annually, the department of personnel shall actuarially
 26  3 determine the cost of the additional benefits provided for
 26  4 members covered under this section as a percentage of the
 26  5 covered wages of the employees covered by this section.  Sixty
 26  6 percent of the cost shall be paid by the employers of
 26  7 employees covered under this section and forty percent of the
 26  8 cost shall be paid by the employees.  The employer and
 26  9 employee contributions required under this paragraph are in
 26 10 addition to the contributions paid under sections 97B.11 and
 26 11 97B.11A.  However, the cost of including service as an airport
 26 12 fire fighter prior to July 1, 1994, as eligible service under
 26 13 this section shall not affect the contribution rates
 26 14 calculated and paid by the member or the employer under this
 26 15 section.
 26 16    b.  (1)  Annually, during each fiscal year commencing with
 26 17 the fiscal year beginning July 1, 1988, each county shall pay
 26 18 to the department of personnel the amount necessary to pay the
 26 19 employer share of the cost of the additional benefits provided
 26 20 to sheriffs and deputy sheriffs.
 26 21    (2)  For the fiscal year commencing July 1, 1994, and each
 26 22 succeeding fiscal year, there is appropriated from the general
 26 23 fund of the state to the department of personnel, from funds
 26 24 not otherwise appropriated, an amount necessary to pay the
 26 25 employer share of the cost of the additional benefits provided
 26 26 to airport fire fighters under this section.
 26 27    Sec. 32.  NEW SECTION.  97B.49D  HYBRID FORMULA.
 26 28    1.  An active or inactive vested member, who is or has been
 26 29 employed in both special service and regular service, who
 26 30 retires on or after July 1, 1996, with four or more completed
 26 31 years of service and at the time of retirement is at least
 26 32 fifty-five years of age, may elect to receive, in lieu of the
 26 33 receipt of a monthly retirement allowance as calculated
 26 34 pursuant to sections 97B.49A through 97B.49C, a combined
 26 35 monthly retirement allowance equal to the sum of the
 27  1 following:
 27  2    a.  One-twelfth of an amount equal to the applicable
 27  3 percentage of the member's three-year average covered wage
 27  4 multiplied by a fraction of years of service.  The fraction of
 27  5 years of service for purposes of this paragraph shall be the
 27  6 actual years of service, not to exceed thirty, for which
 27  7 regular service contributions were made, divided by thirty.
 27  8 However, any otherwise applicable age reduction for early
 27  9 retirement shall apply to the calculation under this
 27 10 paragraph.
 27 11    b.  One-twelfth of an amount equal to the applicable
 27 12 percentage of the member's three-year average covered wage
 27 13 multiplied by a fraction of years of service.  The fraction of
 27 14 years of service for purposes of this paragraph shall be the
 27 15 actual years of service, not to exceed twenty-five, earned in
 27 16 a position described in section 97B.49B, for which special
 27 17 service contributions were made, divided by twenty-five.  In
 27 18 calculating the fractions of years of service under the
 27 19 paragraph, a member shall not receive special service credit
 27 20 for years of service for which the member and the member's
 27 21 employer did not make the required special service
 27 22 contributions to the department.
 27 23    c.  One-twelfth of an amount equal to the applicable
 27 24 percentage of the member's three-year average covered wage
 27 25 multiplied by a fraction of years of service.  The fraction of
 27 26 years of service for purposes of this paragraph shall be the
 27 27 actual years of service, not to exceed twenty-two, earned in a
 27 28 position described in section 97B.49C, for which special
 27 29 service contributions were made, divided by twenty-two.  In
 27 30 calculating the fractions of years of service under this
 27 31 paragraph, a member shall not receive special service credit
 27 32 for years of service for which the member and the member's
 27 33 employer did not make the required special service
 27 34 contributions to the department.
 27 35    2.  In calculating the combined monthly retirement
 28  1 allowance pursuant to subsection 1, the sum of the fraction of
 28  2 years of service provided in subsection 1, paragraphs "a",
 28  3 "b", and "c", shall not exceed one.  If the sum of the
 28  4 fractions of years of service would exceed one, the department
 28  5 shall deduct years of service first from the calculation under
 28  6 subsection 1, paragraph "a", and then from the calculation
 28  7 under subsection 1, paragraph "b", if necessary, so that the
 28  8 sum of the fractions of years of service shall equal one.
 28  9    3.  In calculating the combined monthly retirement
 28 10 allowance pursuant to subsection 1, the applicable percentage
 28 11 shall be sixty percent plus, if applicable, an additional one-
 28 12 fourth of one percentage point for each additional calendar
 28 13 quarter of membership service in service as described in
 28 14 subsection 1, paragraph "a", "b", or "c", beyond thirty years
 28 15 of service, not to exceed a total of five additional
 28 16 percentage points.  Any addition in the percentage multiplier
 28 17 shall be included in the calculations required under this
 28 18 section.
 28 19    Sec. 33.  NEW SECTION.  97B.49E  MINIMUM BENEFITS.
 28 20    1.  For each active member retiring on or after June 30,
 28 21 1973, and who has completed ten or more years of membership
 28 22 service, the total amount of monthly benefit payable at the
 28 23 normal retirement date for prior service and membership
 28 24 service shall not be less than fifty dollars per month.  If
 28 25 benefits commence on an early retirement date, the amount of
 28 26 benefit shall be reduced in accordance with section 97B.50.
 28 27 If an optional allowance is selected under section 97B.51, the
 28 28 amount payable shall be the actuarial equivalent of the
 28 29 minimum benefit.  An employee who is in employment on a school
 28 30 year or academic year basis, will be considered to be an
 28 31 active member as of June 30, 1973, if the employee completes
 28 32 the 1972-1973 school year or academic year.
 28 33    2.  Effective January 1, 1997, for members who retired on
 28 34 or after July 1, 1953, and before July 1, 1990, with at least
 28 35 ten years of prior and membership service, the minimum monthly
 29  1 benefit payable at the normal retirement date for prior and
 29  2 membership service shall be two hundred dollars.  The minimum
 29  3 monthly benefit payable shall be increased by ten dollars for
 29  4 each year of prior and membership service beyond ten years, up
 29  5 to a maximum of twenty additional years of prior and
 29  6 membership service.  If benefits commenced on an early
 29  7 retirement date, the amount of the benefit shall be reduced in
 29  8 accordance with section 97B.50.  If an optional allowance was
 29  9 selected under section 97B.51, the amount payable shall be the
 29 10 actuarial equivalent of the minimum benefit.
 29 11    Sec. 34.  NEW SECTION.  97B.49F  RETIREMENT DIVIDENDS.
 29 12    1.  COST OF LIVING DIVIDEND.
 29 13    a.  Effective July 1, 1997, commencing with dividends
 29 14 payable in November 1997, and for each subsequent year, all
 29 15 members who retired prior to July 1, 1990, and all
 29 16 beneficiaries and contingent annuitants of such members, shall
 29 17 be eligible for annual dividend payments, payable in November
 29 18 of that year, pursuant to the requirements of this subsection.
 29 19 The dividend payable in any given year shall be the sum of the
 29 20 dollar amount of the dividend payable in the previous November
 29 21 and the dividend adjustment.  A dividend determined pursuant
 29 22 to this subsection shall not be used to increase the monthly
 29 23 benefit amount payable.  In no event shall the dividend
 29 24 payable be less than twenty-five dollars.
 29 25    b.  (1)  The dividend adjustment for a given year shall be
 29 26 calculated by multiplying the total of the retiree's,
 29 27 beneficiary's, or contingent annuitant's monthly benefit
 29 28 payments and the dividend payable to the retiree, beneficiary,
 29 29 or contingent annuitant, in the previous calendar year by the
 29 30 applicable percentage as determined by this paragraph.
 29 31    (2)  The applicable percentage shall be the least of the
 29 32 following percentages:
 29 33    (a)  The percentage representing eighty percent of the
 29 34 percentage increase in the consumer price index published in
 29 35 the federal register by the federal department of labor,
 30  1 bureau of labor statistics, that reflects the percentage
 30  2 increase in the consumer price index for the twelve-month
 30  3 period ending June 30 of the year that the dividend is to be
 30  4 paid.
 30  5    (b)  The percentage representing the percentage amount the
 30  6 actuary has certified, in the annual actuarial valuation of
 30  7 the system as of June 30 of the year in which the dividend is
 30  8 to be paid, that the fund can absorb without requiring an
 30  9 increase in the employer and employee contributions to the
 30 10 fund.
 30 11    (c)  Three percent.
 30 12    c.  If a member dies on or after November 1, but before
 30 13 payment of a dividend is made in that month, the full amount
 30 14 of the retirement dividend for that year shall be paid in the
 30 15 member's name upon notification of the member's death.
 30 16    2.  FAVORABLE EXPERIENCE DIVIDEND.
 30 17    a.  Commencing January 1, 1999, all members who retired on
 30 18 or after July 1, 1990, and who have been retired for at least
 30 19 one year as of the date the dividend is payable, or a
 30 20 beneficiary or contingent annuitant of such a member, shall be
 30 21 eligible to receive a favorable experience dividend, payable
 30 22 on the last business day in January of each year pursuant to
 30 23 the requirements of this subsection.
 30 24    b.  A favorable experience dividend reserve account,
 30 25 hereafter called the "reserve account", is established within
 30 26 the retirement fund.  Moneys credited to the reserve account
 30 27 shall be used by the department for the purpose of providing a
 30 28 favorable experience dividend pursuant to this subsection.
 30 29    c.  Moneys shall be credited to the reserve account in the
 30 30 retirement fund as follows:
 30 31    (1)  On or before January 15, 1999, there shall be credited
 30 32 to the reserve account an amount that the system's actuary
 30 33 determines is sufficient to pay the maximum favorable
 30 34 experience dividend for each of the next following five years,
 30 35 based on reasonable actuarial assumptions.
 31  1    (2)  Beginning with the annual actuarial valuation of the
 31  2 system as of June 30, 1999, and for each annual actuarial
 31  3 valuation of the system thereafter, there shall be credited to
 31  4 the reserve account on each applicable January 15 following an
 31  5 actuarial valuation, an amount that represents that portion of
 31  6 the favorable actuarial experience, if any, that the system's
 31  7 actuary determines shall be credited to the reserve account
 31  8 pursuant to rules adopted by the department.
 31  9    (3)  The portion of the favorable actuarial experience, if
 31 10 any, that is not initially credited to the reserve account
 31 11 pursuant to subparagraph (2), but which, if applied to the
 31 12 retirement fund, would result in the actuarial valuation of
 31 13 assets exceeding the actuarial accrued liability of the system
 31 14 based on the most recent annual actuarial valuation of the
 31 15 system, shall be credited to the reserve account.
 31 16    (4)  As used in this paragraph, "favorable actuarial
 31 17 experience" means the difference, if positive, between the
 31 18 anticipated and actual experience of the system's actuarial
 31 19 assets and liabilities as measured by the system's actuary in
 31 20 the most recent annual actuarial valuation of the system
 31 21 pursuant to rules adopted by the department.
 31 22    d.  The favorable experience dividend is calculated by
 31 23 multiplying the total of the monthly benefit payments of the
 31 24 retiree, beneficiary, or contingent annuitant for the previous
 31 25 calendar year, by the number of complete years the member has
 31 26 been retired or would have been retired if living as of the
 31 27 date the dividend is payable, and by the applicable
 31 28 percentage.  For purposes of this paragraph, the applicable
 31 29 percentage is the percentage, not to exceed three percent,
 31 30 that the department determines shall be applied in calculating
 31 31 the favorable experience dividend if the department determines
 31 32 that the reserve account is sufficiently funded to make a
 31 33 distribution.  In making its determination, the department
 31 34 shall consider, but not be limited to, the amounts credited to
 31 35 the reserve account, the distributions from the reserve
 32  1 account made in previous years, the likelihood of future
 32  2 credits to and distributions from the reserve account, and the
 32  3 distributions paid under subsection 1.
 32  4    Sec. 35.  NEW SECTION.  97B.49G  MONTHLY PAYMENTS OF
 32  5 ALLOWANCE – MISCELLANEOUS PROVISIONS.
 32  6    1.  MONTHLY PAYMENTS OF ALLOWANCE – PERCENTAGE MULTIPLIER.
 32  7    a.  For each active or inactive vested member retiring on
 32  8 or after July 1, 1986, and before July 1, 1994, with four or
 32  9 more complete years of service, a monthly benefit shall be
 32 10 computed which is equal to one-twelfth of an amount equal to
 32 11 the applicable percentage multiplier of the three-year average
 32 12 covered wage multiplied by a fraction of years of service.
 32 13    b.  The applicable percentage multiplier for purposes of
 32 14 this subsection shall be the following:
 32 15    (1)  For active or inactive vested members retiring on or
 32 16 after July 1, 1986, but before July 1, 1990, fifty percent.
 32 17    (2)  For active or inactive vested members retiring on or
 32 18 after July 1, 1990, but before July 1, 1991, fifty-two
 32 19 percent.
 32 20    (3)  For active or inactive vested members retiring on or
 32 21 after July 1, 1991, but before July 1, 1992, fifty-four
 32 22 percent.
 32 23    (4)  For active or inactive vested members retiring on or
 32 24 after July 1, 1992, but before July 1, 1993, fifty-six
 32 25 percent.
 32 26    (5)  For active or inactive vested members retiring on or
 32 27 after July 1, 1993, but before July 1, 1994, fifty-seven and
 32 28 four-tenths percent.
 32 29    (6)  For active or inactive vested members retiring on or
 32 30 after July 1, 1994, sixty percent.
 32 31    c.  For purposes of this subsection, fraction of years of
 32 32 service means a number, not to exceed one, equal to the sum of
 32 33 the years of membership service and the number of years of
 32 34 prior service divided by thirty years.
 32 35    2.  EXTRA PAYMENTS ON ALLOWANCE – PRE-1976 RETIREES.
 33  1    a.  On January 1, 1976, for each member who retired before
 33  2 January 1, 1976, the amount of regular monthly retirement
 33  3 allowance attributable to membership service and prior service
 33  4 that was payable to the member for December 1975 is increased
 33  5 by ten percent for the first calendar year or portion of a
 33  6 calendar year the member was retired, and by an additional
 33  7 five percent for each calendar year after the first calendar
 33  8 year the member was retired through the calendar year
 33  9 beginning January 1, 1975.  The total increase shall not
 33 10 exceed one hundred percent.  Effective July 1, 1987, there is
 33 11 appropriated for each fiscal year from the Iowa public
 33 12 employees' retirement fund created in section 97B.7 to the
 33 13 department of personnel from funds not otherwise appropriated
 33 14 an amount sufficient to fund the monthly retirement allowance
 33 15 increases paid under this paragraph.
 33 16    The benefit increases granted to members retired under the
 33 17 system on January 1, 1976, shall be granted only on January 1,
 33 18 1976, and shall not be further increased for any year in which
 33 19 the member was retired after the calendar year beginning
 33 20 January 1, 1975.
 33 21    b.  Effective July 1, 1978, for each member who retired
 33 22 from the system prior to January 1, 1976, the amount of
 33 23 regular monthly retirement allowance attributable to
 33 24 membership service and prior service that was payable to the
 33 25 member for June 1978 is increased as follows:
 33 26    (1)  For the first ten years of service, fifty cents per
 33 27 month for each complete year of service.
 33 28    (2)  For the eleventh through the twentieth years of
 33 29 service, two dollars per month for each complete year of
 33 30 service.
 33 31    (3)  For the twenty-first through the thirtieth years of
 33 32 service, three dollars per month for each complete year of
 33 33 service.
 33 34    Effective July 1, 1979, the increases granted to members
 33 35 under this subparagraph shall be paid to contingent annuitants
 34  1 and to beneficiaries.
 34  2    3.  EXTRA PAYMENTS ON ALLOWANCE.
 34  3    a.  Effective July 1, 1980, for each member who retired
 34  4 from the system prior to January 1, 1976, and for each member
 34  5 who retired from the system on or after January 1, 1976, under
 34  6 section 97B.49A, subsection 4, the amount of regular monthly
 34  7 retirement allowance attributable to membership service and
 34  8 prior service that was payable to the member for June 1980 is
 34  9 increased as follows:
 34 10    (1)  For the first ten years of service, fifty cents per
 34 11 month for each complete year of service.
 34 12    (2)  For the eleventh through the twentieth years of
 34 13 service, one dollar per month for each complete year of
 34 14 service.
 34 15    (3)  For the twenty-first through the thirtieth years of
 34 16 service, one dollar and fifty cents per month for each
 34 17 complete year of service.
 34 18    (4)  The amount of monthly increase payable to a member
 34 19 under this paragraph is also payable to a beneficiary and a
 34 20 contingent annuitant and shall be reduced by an amount based
 34 21 upon the actuarial equivalent of the option selected in
 34 22 section 97B.51 or section 97B.52 compared to the full monthly
 34 23 benefit provided in this section or section 97B.49A, as
 34 24 applicable.
 34 25    However, effective July 1, 1980, the monthly retirement
 34 26 allowance attributable to membership service and prior service
 34 27 of a member, contingent annuitant, and beneficiary shall not
 34 28 be less than five dollars times the number of complete years
 34 29 of service of the member, not to exceed thirty, reduced by an
 34 30 amount based upon the actuarial equivalent of the option
 34 31 selected in section 97B.51 or section 97B.52, compared to the
 34 32 full monthly retirement benefit provided in this section or
 34 33 section 97B.49A, as applicable.
 34 34    b.  Effective beginning July 1, 1982, for each member who
 34 35 retired from the system prior to January 1, 1976, and for each
 35  1 member who retired from the system on or after January 1,
 35  2 1976, under section 97B.49A, subsection 4, the amount of
 35  3 regular monthly retirement allowance attributable to
 35  4 membership service and prior service that was payable to the
 35  5 member for June 1982 is increased as follows:
 35  6    (1)  For the first ten years of service, fifty cents per
 35  7 month for each complete year of service.
 35  8    (2)  For the eleventh through the twentieth years of
 35  9 service, one dollar per month for each complete year of
 35 10 service.
 35 11    (3)  For the twenty-first through the thirtieth years of
 35 12 service, one dollar and fifty cents per month for each
 35 13 complete year of service.
 35 14    (4)  The amount of monthly increase payable to a member
 35 15 under this paragraph is also payable to a beneficiary and a
 35 16 contingent annuitant and shall be reduced by an amount based
 35 17 upon the actuarial equivalent of the option selected in
 35 18 section 97B.51 or section 97B.52 compared to the full monthly
 35 19 benefit provided in this section or section 97B.49A, as
 35 20 applicable.
 35 21    4.  NORMAL RETIREMENT DATES.  A retired member shall be
 35 22 deemed to have retired on the member's normal retirement date,
 35 23 and retirement benefits calculated shall not be reduced
 35 24 pursuant to section 97B.50, if the member meets any of the
 35 25 following requirements:
 35 26    a.  The member is an active or inactive vested member
 35 27 retiring on or after July 1, 1988, and before July 1, 1990,
 35 28 who is at least fifty-five years of age and has completed at
 35 29 least thirty years of membership service and prior service,
 35 30 and for which the sum of the number of years of membership
 35 31 service and prior service and the member's age in years as of
 35 32 the member's last birthday equals or exceeds ninety-two.
 35 33    b.  The member is an active or inactive vested member
 35 34 retiring on or after July 1, 1990, and before July 1, 1996,
 35 35 who is at least fifty-five years of age and for which the sum
 36  1 of the number of years of membership service and prior service
 36  2 and the member's age in years as of the member's last birthday
 36  3 equals or exceeds ninety-two.
 36  4    c.  The member is an active or inactive vested member
 36  5 retiring on or after July 1, 1996, and before July 1, 1997,
 36  6 who is at least fifty-five years of age and for which the sum
 36  7 of the number of years of membership service and prior service
 36  8 and the member's age in years as of the member's last birthday
 36  9 equals or exceeds ninety.
 36 10    5.  DIVIDENDS – NOVEMBER 1996.
 36 11    a.  Each member who retired from the system between July 4,
 36 12 1953, and December 31, 1975, or a contingent annuitant or
 36 13 beneficiary of such a member, shall receive with the November
 36 14 1996 monthly benefit payment a retirement dividend equal to
 36 15 two hundred ninety-two percent of the monthly benefit payment
 36 16 the member received for the preceding June, or the most
 36 17 recently received benefit payment, whichever is greater.  The
 36 18 retirement dividend does not affect the amount of a monthly
 36 19 benefit payment.
 36 20    b.  A member who retired from the system between January 1,
 36 21 1976, and June 30, 1982, or a contingent annuitant or
 36 22 beneficiary of such a member, shall receive with the November
 36 23 1996 monthly benefit payment a retirement dividend equal to
 36 24 two hundred twenty-three percent of the monthly benefit
 36 25 payment the member received for the preceding June, or the
 36 26 most recently received benefit payment, whichever is greater.
 36 27 The retirement dividend does not affect the amount of a
 36 28 monthly benefit payment.
 36 29    c.  A member who retired from the system between July 1,
 36 30 1982, and June 30, 1986, or a contingent annuitant or
 36 31 beneficiary of such a member, shall receive with the November
 36 32 1996 monthly benefit payment a retirement dividend equal to
 36 33 seventy-four percent of the monthly benefit payment the member
 36 34 received for the preceding June, or the most recently received
 36 35 benefit payment, whichever is greater.  The retirement
 37  1 dividend does not affect the amount of a monthly benefit
 37  2 payment.
 37  3    d.  A member who retired from the system between July 1,
 37  4 1986, and June 30, 1990, or a contingent annuitant or
 37  5 beneficiary of such a member, shall receive with the November
 37  6 1996 monthly benefit payment a retirement dividend equal to
 37  7 twenty-four percent of the monthly benefit payment the member
 37  8 received for the preceding June, or the most recently received
 37  9 benefit payment, whichever is greater.  The retirement
 37 10 dividend does not affect the amount of a monthly benefit
 37 11 payment.
 37 12    e.  Notwithstanding the determination of the amount of a
 37 13 retirement dividend under this subsection, a retirement
 37 14 dividend shall not be less than twenty-five dollars.
 37 15    6.  CONSERVATION PEACE OFFICER – JULY 1986 - JULY 1988.
 37 16    a.  Notwithstanding other provisions of this chapter, a
 37 17 member who is or has been employed as a conservation peace
 37 18 officer under section 456A.13 and who retires on or after July
 37 19 1, 1986, and before July 1, 1988, and at the time of
 37 20 retirement is at least sixty years of age and has completed at
 37 21 least twenty-five years of membership service as a
 37 22 conservation peace officer, may elect to receive, in lieu of
 37 23 the receipt of any benefits under subsection 1 or section
 37 24 97B.49A, as applicable, a monthly retirement allowance equal
 37 25 to one-twelfth of fifty percent of the member's three-year
 37 26 average covered wage as a conservation peace officer, with
 37 27 benefits payable during the member's lifetime.
 37 28    b.  A conservation peace officer who retires on or after
 37 29 July 1, 1986, and before July 1, 1988, and has not completed
 37 30 twenty-five years of membership service as required under this
 37 31 subsection is eligible to receive a monthly retirement
 37 32 allowance equal to one-twelfth of fifty percent of the
 37 33 member's three-year average covered wage as a conservation
 37 34 peace officer, multiplied by a fraction of years of service as
 37 35 a conservation peace officer.  For the purpose of this
 38  1 subsection, "fraction of years of service" means a number, not
 38  2 to exceed one, equal to the sum of the years of membership
 38  3 service as a conservation peace officer, divided by twenty-
 38  4 five years.  On or after July 1, 1986, but before July 1,
 38  5 1988, if the conservation peace officer has not reached sixty
 38  6 years of age at retirement, the monthly retirement allowance
 38  7 shall be reduced by five-tenths of one percent per month for
 38  8 each month that the conservation peace officer's retirement
 38  9 precedes the date on which the conservation peace officer
 38 10 attains sixty years of age.
 38 11    The annual contribution necessary to pay for the additional
 38 12 benefits provided in this paragraph shall be paid by the
 38 13 employer and employee in the same proportion that employer and
 38 14 employee contributions are made under section 97B.11.
 38 15    c.  There is appropriated from the state fish and game
 38 16 protection fund to the department of personnel an actuarially
 38 17 determined amount calculated by the Iowa public employees'
 38 18 retirement system sufficient to pay for the additional
 38 19 benefits to conservation peace officers provided by this
 38 20 subsection, as a percentage, in paragraph "a" and for the
 38 21 employer portion of the benefits provided in paragraph "b".
 38 22 The amount is in addition to the contribution paid by the
 38 23 employer under section 97B.11.  The cost of the benefits
 38 24 relating to conservation peace officers within the fish and
 38 25 game division of the department of natural resources shall be
 38 26 paid from the state fish and game protection fund and the cost
 38 27 of the benefits relating to the other conservation peace
 38 28 officers of the department shall be paid from the general
 38 29 fund.
 38 30    7.  PEACE OFFICER – JULY 1986 - JULY 1988.
 38 31    a.  Notwithstanding other provisions of this chapter, a
 38 32 member who is or has been employed as a peace officer and who
 38 33 retires on or after July 1, 1986, and before July 1, 1988, and
 38 34 at the time of retirement is at least sixty years of age and
 38 35 has completed at least twenty-five years of membership service
 39  1 as a peace officer, may elect to receive, in lieu of the
 39  2 benefits under subsection 1 or section 97B.49A, subsection 4,
 39  3 as applicable, a monthly retirement allowance equal to one-
 39  4 twelfth of fifty percent of the member's three-year average
 39  5 covered wage as a peace officer, with benefits payable during
 39  6 the member's lifetime.
 39  7    A peace officer who retires on or after July 1, 1986, and
 39  8 before July 1, 1988, and has not completed twenty-five years
 39  9 of membership service as required under this subsection is
 39 10 eligible to receive a monthly retirement allowance equal to
 39 11 one-twelfth of fifty percent of the member's three-year
 39 12 average covered wage as a peace officer multiplied by the
 39 13 fraction of years of service as a peace officer.  For the
 39 14 purpose of this subsection, "fraction of years of service"
 39 15 means a number, not to exceed one, equal to the sum of the
 39 16 years of membership service as a peace officer, divided by
 39 17 twenty-five years.  On or after July 1, 1984, but before July
 39 18 1, 1988, if the peace officer has not reached sixty years of
 39 19 age at retirement, the monthly retirement allowance shall be
 39 20 reduced by five-tenths of one percent per month for each month
 39 21 that the peace officer's retirement precedes the date on which
 39 22 the peace officer attains sixty years of age.
 39 23    For the purpose of this subsection, membership service as a
 39 24 peace officer means service under this system as any or all of
 39 25 the following:
 39 26    (1)  As a county sheriff as defined in section 39.17.
 39 27    (2)  As a deputy sheriff appointed pursuant to section
 39 28 341.1, Code 1981, or section 331.903.
 39 29    (3)  As a marshal or police officer in a city not covered
 39 30 under chapter 400.
 39 31    b.  Each county and applicable city and employee eligible
 39 32 for benefits under this subsection shall annually contribute
 39 33 an amount determined by the department of personnel, as a
 39 34 percentage of covered wages, to be necessary to pay for the
 39 35 additional benefits provided by this subsection.  The annual
 40  1 contribution in excess of the employer and employee
 40  2 contributions required by this chapter shall be paid by the
 40  3 employer and the employee in the same proportion that employer
 40  4 and employee contributions are made under section 97B.11.  The
 40  5 additional percentage of covered wages shall be calculated
 40  6 separately by the department for service under paragraph "a",
 40  7 subparagraphs (1) and (2), and for service under paragraph
 40  8 "a", subparagraph (3), and each shall be an actuarially
 40  9 determined amount for that type of service which, if
 40 10 contributed throughout the entire period of active service,
 40 11 would be sufficient to provide the pension benefit provided in
 40 12 this subsection.
 40 13    8.  CORRECTIONAL OFFICER – JULY 1986 - JULY 1988.
 40 14    a.  Notwithstanding sections of this chapter relating to
 40 15 eligibility for and determination of retirement benefits, a
 40 16 vested member who is or has been employed as a correctional
 40 17 officer by the Iowa department of corrections and who retires
 40 18 on or after July 1, 1986, and before July 1, 1988, and at the
 40 19 time of retirement is at least sixty years of age and has
 40 20 completed at least thirty years of membership service as a
 40 21 correctional officer, may elect to receive, in lieu of the
 40 22 receipt of benefits under subsection 1 or section 97B.49A,
 40 23 subsection 4, as applicable, a monthly retirement allowance
 40 24 equal to one-twelfth of fifty percent of the member's three-
 40 25 year average covered wage as a correctional officer, with
 40 26 benefits payable during the member's lifetime.
 40 27    b.  The Iowa department of corrections and the department
 40 28 of personnel shall jointly determine the applicable merit
 40 29 system job classifications of correctional officers.
 40 30    c.  The Iowa department of corrections shall pay to the
 40 31 department of personnel, from funds appropriated to the Iowa
 40 32 department of corrections, an actuarially determined amount
 40 33 sufficient to pay for the additional benefits provided in this
 40 34 subsection.  The amount is in addition to the employer
 40 35 contributions required in section 97B.11.
 41  1    9.  AIRPORT FIRE FIGHTER – JULY 1986 - JULY 1988.
 41  2    a.  Notwithstanding other provisions of this chapter, a
 41  3 member who is or has been employed by the office of disaster
 41  4 services as an airport fire fighter who retires on or after
 41  5 July 1, 1986, and before July 1, 1988, and at the time of
 41  6 retirement is at least sixty years of age and has completed at
 41  7 least twenty-five years of membership service as an airport
 41  8 fire fighter, may elect to receive, in lieu of the receipt of
 41  9 any benefits under subsection 1 or section 97B.49A, subsection
 41 10 4, as applicable, a monthly retirement allowance equal to one-
 41 11 twelfth of fifty percent of the member's three-year average
 41 12 covered wage as an airport fire fighter, with benefits payable
 41 13 during the member's lifetime.
 41 14    b.  An airport fire fighter who retires on or after July 1,
 41 15 1986, and before July 1, 1988, and has not completed twenty-
 41 16 five years of membership service as required under this
 41 17 subsection is eligible to receive a monthly retirement
 41 18 allowance equal to one-twelfth of fifty percent of the
 41 19 member's three-year average covered wage as an airport fire
 41 20 fighter multiplied by a fraction of years of service as an
 41 21 airport fire fighter.  For the purpose of this subsection,
 41 22 "fraction of years of service" means a number, not to exceed
 41 23 one, equal to the sum of the years of membership service as an
 41 24 airport fire fighter, divided by twenty-five years.  On or
 41 25 after July 1, 1986, but before July 1, 1988, if the airport
 41 26 fire fighter has not reached sixty years of age at retirement,
 41 27 the monthly retirement allowance shall be reduced by five-
 41 28 tenths of one percent per month for each month that the
 41 29 airport fire fighter's retirement precedes the date on which
 41 30 the airport fire fighter attains sixty years of age.
 41 31    c.  The employer and each employee eligible for benefits
 41 32 under this subsection shall annually contribute an actuarially
 41 33 determined amount specified by the department, as a percentage
 41 34 of covered wages, that is necessary to pay for the additional
 41 35 benefits provided by this subsection.  The annual contribution
 42  1 in excess of the employer and employee contributions required
 42  2 in section 97B.11 shall be paid by the employer and the
 42  3 employee in the same proportion that the employer and employee
 42  4 contributions are made under section 97B.11.
 42  5    d.  There is appropriated from the general fund of the
 42  6 state to the department from funds not otherwise appropriated
 42  7 an amount sufficient to pay the employer share of the cost of
 42  8 the additional benefits provided in this subsection.
 42  9    10.  PROTECTION OCCUPATION – JULY 1988 - JULY 1994.
 42 10    a.  For purposes of this subsection:
 42 11    (1)  "Applicable percentage" means the applicable
 42 12 percentage multiplier defined in subsection 1, paragraph "b",
 42 13 that applies on the date a member retires and becomes eligible
 42 14 to receive a monthly allowance as calculated pursuant to this
 42 15 subsection.
 42 16    (2)  "Fraction of years of service" means a number, not to
 42 17 exceed one, equal to the sum of the years of membership
 42 18 service in a protection occupation divided by twenty-five
 42 19 years.
 42 20    b.  Notwithstanding other provisions of this chapter, a
 42 21 member who is or has been employed in a protection occupation
 42 22 who retires on or after July 1, 1988, and before July 1, 1994,
 42 23 and at the time of retirement is at least fifty-five years of
 42 24 age may elect to receive, in lieu of the receipt of any
 42 25 benefits as calculated pursuant to subsection 1 or section
 42 26 97B.49A, subsection 4, as applicable, a monthly retirement
 42 27 allowance equal to one-twelfth of an amount equal to the
 42 28 applicable percentage of the three-year average covered wage
 42 29 as a member who has been employed in a protection occupation
 42 30 multiplied by a fraction of years of service, with benefits
 42 31 payable during the member's lifetime.
 42 32    11.  SHERIFFS AND DEPUTY SHERIFFS – JULY 1988 - JULY 1994.
 42 33    a.  For purposes of this subsection:
 42 34    (1)  "Applicable percentage" means the applicable
 42 35 percentage multiplier as described in subsection 1, paragraph
 43  1 "b", that applies on the date a member retires and becomes
 43  2 eligible to receive a monthly allowance as calculated pursuant
 43  3 to this subsection.
 43  4    (2)  "Fraction of years of service" means a number, not to
 43  5 exceed one, equal to the sum of the years of membership
 43  6 service as a sheriff or deputy sheriff divided by twenty-two
 43  7 years.
 43  8    b.  Notwithstanding other provisions of this chapter, a
 43  9 member who retires from employment as a sheriff or deputy
 43 10 sheriff on or after July 1, 1988, and before July 1, 1994, and
 43 11 at the time of retirement is at least fifty-five years of age
 43 12 may elect to receive, in lieu of the receipt of any benefits
 43 13 as calculated pursuant to subsection 1 or section 97B.49A,
 43 14 subsection 4, as applicable, a monthly retirement allowance
 43 15 equal to one-twelfth of an amount equal to the applicable
 43 16 percentage of the three-year average covered wage as a member
 43 17 who has been employed as a sheriff or deputy sheriff
 43 18 multiplied by a fraction of years of service, with benefits
 43 19 payable during the member's lifetime.
 43 20    Sec. 36.  NEW SECTION.  97B.49H  ACTIVE MEMBER SUPPLEMENTAL
 43 21 ACCOUNTS.
 43 22    1.  There is established, for each active member, a
 43 23 supplemental account consisting of amounts credited to the
 43 24 account as provided in this section which shall be held and
 43 25 used for the exclusive benefit of the member pursuant to the
 43 26 requirements of this section.
 43 27    2.  Amounts shall be credited to a supplemental account of
 43 28 each active member pursuant to the requirements of this
 43 29 section following a determination by the system's actuary
 43 30 during the most recent annual actuarial valuation that the
 43 31 system does not have an unfunded accrued liability.  For
 43 32 purposes of this section, the system does not have an unfunded
 43 33 accrued liability if the actuarial accrued liability of the
 43 34 system based on the actuarial cost method used by the actuary
 43 35 does not exceed the actuarial value of assets of the system as
 44  1 of the valuation date.
 44  2    3.  The department shall annually determine the amount to
 44  3 be credited to the supplemental accounts of active members.
 44  4 The amount to be credited shall be calculated by multiplying
 44  5 the member's covered wages for the applicable wage reporting
 44  6 period by the supplemental rate.  For purposes of this
 44  7 subsection, the supplemental rate is the difference, if
 44  8 positive, between the combined employee and employer statutory
 44  9 contribution rates in effect under section 97B.11 and the
 44 10 normal cost rate of the system as determined by the system's
 44 11 actuary in the most recent annual actuarial valuation of the
 44 12 system.  The credits shall be made at least quarterly during
 44 13 the calendar year following a determination that the system
 44 14 does not have an unfunded accrued liability.  The normal cost
 44 15 rate, calculated according to the actuarial cost method used,
 44 16 is the percent of pay allocated to each year of service that
 44 17 is necessary to fund projected benefits over all members'
 44 18 service with the system.
 44 19    4.  Amounts credited to a member's supplemental account
 44 20 shall be credited with interest quarterly pursuant to section
 44 21 97B.70, subsection 2.
 44 22    5.  Amounts credited to a member's supplemental account
 44 23 shall be distributed as follows:
 44 24    a.  If a member terminates covered employment and files an
 44 25 application for a refund under section 97B.53, the member
 44 26 shall receive in a lump sum payment, in addition to any other
 44 27 payment provided by this chapter, all amounts credited to the
 44 28 member's supplemental account.
 44 29    b.  If a member dies prior to retirement, the member's
 44 30 beneficiary shall receive in a lump sum payment, in addition
 44 31 to any other payment provided by this chapter, all amounts
 44 32 credited to the member's supplemental account.
 44 33    c.  Upon retirement, the member shall receive in a lump sum
 44 34 payment or in an annuity, in addition to any other payment
 44 35 provided by this chapter, all amounts credited to the member's
 45  1 supplemental account.
 45  2    Sec. 37.  IMPLEMENTATION DATE.  New section 97B.49H,
 45  3 establishing an active member supplemental account, shall not
 45  4 be implemented until the Iowa public employees' retirement
 45  5 system receives approval to implement this new section from
 45  6 the federal internal revenue service.
 45  7    Sec. 38.  Section 97B.50, Code 1997, is amended to read as
 45  8 follows:
 45  9    97B.50  EARLY RETIREMENT.
 45 10    1.  Except as otherwise provided in this section, a vested
 45 11 member, upon retirement prior to the normal retirement date
 45 12 other than that specified in section 97B.45, subsection 4, is
 45 13 entitled to receive a monthly retirement allowance determined
 45 14 in the same manner as provided for normal retirement in
 45 15 section 97B.49, subsections 1, 4, and 5, sections 97B.49A,
 45 16 97B.49E, and 97B.49G, reduced as follows:
 45 17    a.  For a member who is less than sixty-two years of age,
 45 18 by twenty-five hundredths of one percent per month for each
 45 19 month that the early retirement date precedes the normal
 45 20 retirement date.
 45 21    b.  For a member who is at least sixty-two years of age and
 45 22 who has not completed thirty years of membership service and
 45 23 prior service, by twenty-five hundredths of one percent per
 45 24 month for each month that the early retirement date precedes
 45 25 the normal retirement date.
 45 26    2.  a.  A vested member who retires from the system due to
 45 27 disability and commences receiving disability benefits
 45 28 pursuant to the federal Social Security Act, 42 U.S.C. } 423
 45 29 et seq., and who has not reached the normal retirement date,
 45 30 shall receive benefits under section 97B.49 sections 97B.49A
 45 31 through 97B.49G, as applicable, and shall not have benefits
 45 32 reduced upon retirement as required under subsection 1
 45 33 regardless of whether the member has completed thirty or more
 45 34 years of membership service.  However, the benefits shall be
 45 35 suspended during any period in which the member returns to
 46  1 covered employment.  This section takes effect July 1, 1990,
 46  2 for a member meeting the requirements of this paragraph who
 46  3 retired from the system at any time after July 4, 1953.
 46  4 Eligible members are entitled to the receipt of retroactive
 46  5 adjustment payments back to July 1, 1990, notwithstanding the
 46  6 requirements of subsection 4.
 46  7    b.  A vested member who retires from the system due to
 46  8 disability and commences receiving disability benefits
 46  9 pursuant to the federal Railroad Retirement Act, 45 U.S.C. }
 46 10 231 et seq., and who has not reached the normal retirement
 46 11 date, shall receive benefits under section 97B.49 sections
 46 12 97B.49A through 97B.49G, as applicable, and shall not have
 46 13 benefits reduced upon retirement as required under subsection
 46 14 1 regardless of whether the member has completed thirty or
 46 15 more years of membership service.  However, the benefits shall
 46 16 be suspended during any period in which the member returns to
 46 17 covered employment.  This section takes effect July 1, 1990,
 46 18 for a member meeting the requirements of this paragraph who
 46 19 retired from the system at any time since July 4, 1953.
 46 20 Eligible members are entitled to the receipt of retroactive
 46 21 adjustment payments back to July 1, 1990, notwithstanding the
 46 22 requirements of subsection 4.
 46 23    3.  A member who is at least sixty-two years of age and
 46 24 less than sixty-five years of age, and who has completed
 46 25 thirty or more years of membership service and prior service,
 46 26 shall receive full benefits under section 97B.49 sections
 46 27 97B.49A through 97B.49G, as applicable, determined as if the
 46 28 member had attained sixty-five years of age.
 46 29    4.  A vested member eligible for a retirement allowance
 46 30 adjusted under this section is entitled to receipt of
 46 31 retroactive adjustment payments for no more than six months
 46 32 immediately preceding the month in which written notice of
 46 33 retirement was submitted to the department.
 46 34    Sec. 39.  Section 97B.51, subsection 2, Code 1997, is
 46 35 amended to read as follows:
 47  1    2.  The election by a member of the an option stated under
 47  2 subsection 1 of this section or in sections 97B.49A through
 47  3 97B.49G, shall be null and void if the member dies prior to
 47  4 the member's first month of entitlement.
 47  5    Sec. 40.  Section 97B.51, subsection 3, Code 1997, is
 47  6 amended to read as follows:
 47  7    3.  A member who had elected to take the an option stated
 47  8 in subsection 1 of this section or in sections 97B.49A through
 47  9 97B.49G, as applicable, may, at any time prior to retirement,
 47 10 revoke such an election by written notice to the department.
 47 11 A member shall not change or revoke an election once the first
 47 12 retirement allowance is paid.
 47 13    Sec. 41.  Section 97B.51, subsection 5, Code 1997, is
 47 14 amended to read as follows:
 47 15    5.  At retirement, a member may designate that upon the
 47 16 member's death, a specified amount of money shall be paid to a
 47 17 named beneficiary, and the member's monthly retirement
 47 18 allowance shall be reduced by an actuarially determined amount
 47 19 to provide for the lump sum payment.  The amount designated by
 47 20 the member must be in thousand dollar increments and shall be
 47 21 limited to the amount of the member's accumulated
 47 22 contributions.  The amount designated shall not lower the
 47 23 monthly retirement allowance of the member by more than one-
 47 24 half the amount payable under section 97B.49, subsection 1 or
 47 25 5 97B.49A or 97B.49G, as applicable.  A member may designate a
 47 26 different beneficiary if the original named beneficiary
 47 27 predeceases the member.
 47 28    Sec. 42.  Section 97B.52, subsection 1, paragraphs b and c,
 47 29 Code 1997, are amended to read as follows:
 47 30    b.  For service in a protection occupation, as defined in
 47 31 section 97B.49, subsection 16, paragraph "d" 97B.49B, the
 47 32 applicable denominator is twenty-five.
 47 33    c.  For service as a sheriff, deputy sheriff, or airport
 47 34 fire fighter, as provided in section 97B.49, subsection 16,
 47 35 paragraph "b" 97B.49C, the applicable denominator is twenty-
 48  1 two.
 48  2    Sec. 43.  Section 97B.52, subsection 2, Code 1997, is
 48  3 amended to read as follows:
 48  4    2.  If a member dies on or after the first day of the
 48  5 member's first month of entitlement, the excess, if any, of
 48  6 the accumulated contributions by the member as of said date,
 48  7 over the total gross monthly retirement allowances received by
 48  8 the member under the retirement system will be paid to the
 48  9 member's beneficiary unless the retirement allowance is then
 48 10 being paid in accordance with section 97B.48A 97B.48 or with
 48 11 section 97B.51, subsection 1, 4, 5, or 6.
 48 12    Sec. 44.  Section 97B.52, subsection 3, paragraph b, Code
 48 13 1997, is amended to read as follows:
 48 14    b.  If a death benefit is due and payable, interest shall
 48 15 continue to accumulate through the month quarter preceding the
 48 16 month quarter in which payment is made to the designated
 48 17 beneficiary, heirs at law, or the estate unless the payment of
 48 18 the death benefit is delayed because of a dispute between
 48 19 alleged heirs, in which case the benefit due and payable shall
 48 20 be placed in a noninterest bearing escrow account until the
 48 21 beneficiary is determined in accordance with this section.
 48 22    4.  In order to receive the death benefit, the beneficiary,
 48 23 heirs at law, or the estate, or any other third-party payee,
 48 24 must apply to the department within five years of the member's
 48 25 death.
 48 26    The department shall reinstate a designated beneficiary's
 48 27 right to receive a death benefit beyond the five-year
 48 28 limitation if the designated beneficiary was the member's
 48 29 spouse at the time of the member's death and the distribution
 48 30 is required or permitted pursuant to Internal Revenue Code
 48 31 section 401(a)(9) and the applicable treasury regulations.
 48 32    In the event that all, or any portion, of the death benefit
 48 33 payable to the member's designated beneficiary, heirs at law,
 48 34 or estate, shall remain unpaid solely by reason of the
 48 35 inability of the system to locate the payee, the amount
 49  1 payable shall be forfeited after the time for making a claim
 49  2 has run.  However, if the appropriate payee is located after
 49  3 the death benefit is forfeited, the benefit shall be restored.
 49  4    Sec. 45.  Section 97B.52, subsection 4, Code 1997, is
 49  5 amended by striking the subsection.
 49  6    Sec. 46.  Section 97B.52, subsection 5, Code 1997, is
 49  7 amended to read as follows:
 49  8    5.  Following written notification to the department, a
 49  9 beneficiary of a deceased member may waive current and future
 49 10 rights to payments to which the beneficiary would otherwise be
 49 11 entitled under section 97B.51, subsections 5 and 6, and this
 49 12 section.  Upon receipt of the waiver, the department shall pay
 49 13 the amount designated to be received by that beneficiary to
 49 14 the member's other surviving beneficiary or beneficiaries or
 49 15 to the estate of the deceased member, as elected by the
 49 16 beneficiary in the waiver.  If the payments being waived are
 49 17 payable to the member's estate and an estate is not probated,
 49 18 the payments shall be paid to the deceased member's surviving
 49 19 spouse, or if there is no surviving spouse, to the member's
 49 20 heirs other than the beneficiary who waived the payments.
 49 21    Sec. 47.  Section 97B.52A, subsection 1, Code 1997, is
 49 22 amended to read as follows:
 49 23    1.  Effective January 1, 1995, a A member has a bona fide
 49 24 retirement when the member terminates all employment covered
 49 25 under the chapter or formerly covered under the chapter
 49 26 pursuant to section 97B.42, files a completed application for
 49 27 benefits form with the department, survives into the month for
 49 28 which benefits are first payable, and meets the following
 49 29 applicable requirement:
 49 30    a.  For a member whose first month of entitlement is prior
 49 31 to July 1, 1998, the member does not return to covered
 49 32 employment as defined in this chapter until the member has
 49 33 qualified for no fewer than four calendar months of retirement
 49 34 benefits.
 49 35    b.  For a member whose first month of entitlement is July
 50  1 1998 or later, the member does not return to any employment
 50  2 with a covered employer until the member has qualified for no
 50  3 fewer than four calendar months of retirement benefits.
 50  4    Sec. 48.  Section 97B.52A, subsection 3, Code 1997, is
 50  5 amended to read as follows:
 50  6    3.  A member whose first month of entitlement is before
 50  7 July 1998 and who terminates covered employment but maintains
 50  8 an employment relationship with an employer that made
 50  9 contributions to the system on the member's behalf does not
 50 10 have a bona fide retirement until all employment, including
 50 11 employment which is not covered by this chapter, with such
 50 12 employer is terminated for at least thirty days.  In order to
 50 13 receive retirement benefits, the member must file a completed
 50 14 application for benefits form with the department before
 50 15 returning to any employment with the same employer.
 50 16    Sec. 49.  Section 97B.53, subsection 1, Code 1997, is
 50 17 amended to read as follows:
 50 18    1.  Upon the termination of employment with the employer
 50 19 prior to retirement other than by death of a member, the
 50 20 accumulated contributions by the member and, for a vested
 50 21 member, the accumulated employer contributions for the vested
 50 22 member at the date of the termination may be paid to the
 50 23 member upon application, except as provided in subsections 2,
 50 24 5, and 6.  For the purpose of this subsection, the
 50 25 "accumulated employer contributions" is an amount equal to the
 50 26 total obtained as of any date, by accumulating each individual
 50 27 contribution by the employer for the member with interest plus
 50 28 interest dividends as provided in section 97B.70, for all
 50 29 completed calendar years and for any completed calendar year
 50 30 for which the interest dividend has not been declared and for
 50 31 completed months of partially completed calendar years,
 50 32 compounded as provided in section 97B.70 multiplied by a
 50 33 fraction of years of service for that member as defined in
 50 34 section 97B.49A, 97B.49B, or 97B.49C.
 50 35    Sec. 50.  Section 97B.53, subsection 2, Code 1997, is
 51  1 amended to read as follows:
 51  2    2.  If a vested member's employment is terminated prior to
 51  3 the member's retirement, other than by death, the member may
 51  4 receive a monthly retirement allowance commencing on the first
 51  5 day of the month in which the member attains the age of sixty-
 51  6 five years, if the member is then alive, or, if the member so
 51  7 elects in accordance with section 97B.47, commencing on the
 51  8 first day of the month in which the member attains the age of
 51  9 fifty-five or any month thereafter prior to the date the
 51 10 member attains the age of sixty-five years, and continuing on
 51 11 the first day of each month thereafter during the member's
 51 12 lifetime, provided the member does not receive prior to the
 51 13 date the member's retirement allowance is to commence a refund
 51 14 of accumulated contributions under any of the provisions of
 51 15 this chapter.  The amount of each such monthly retirement
 51 16 allowance shall be determined as provided in either section
 51 17 97B.49 sections 97B.49A through 97B.49G, or in section 97B.50,
 51 18 whichever is applicable.
 51 19    Sec. 51.  Section 97B.53, subsection 3, Code 1997, is
 51 20 amended to read as follows:
 51 21    3.  The accumulated contributions account of a terminated,
 51 22 vested member shall be credited with interest, including
 51 23 interest dividends, in the manner provided in section 97B.70.
 51 24 Interest and interest dividends shall be credited to the
 51 25 accumulated contributions of members who terminate service and
 51 26 subsequently become vested in accordance with section 97B.70.
 51 27    Sec. 52.  Section 97B.53, subsection 6, Code 1997, is
 51 28 amended to read as follows:
 51 29    6.  A member who terminates employment before the member is
 51 30 vested and who does not claim and receive a refund of the
 51 31 member's accumulated contributions within ten years of the
 51 32 date of termination shall, if the member makes claim for a
 51 33 refund more than ten years after the date of termination, be
 51 34 required to submit proof satisfactory to the department of the
 51 35 member's entitlement to the refund.  Interest and interest
 52  1 dividends on the accumulated contributions shall only be
 52  2 credited if provided in accordance with section 97B.70.  The
 52  3 department is under no obligation to maintain the accumulated
 52  4 contribution accounts of such former members for more than ten
 52  5 years after their dates of termination.  The system is under
 52  6 no obligation to maintain the accumulated contribution account
 52  7 of a member who terminates covered employment prior to
 52  8 December 31, 1998, if the member was not vested at the time of
 52  9 termination.  A person who made contributions to the abolished
 52 10 system, who is entitled to a refund in accordance with the
 52 11 provisions of this chapter, and who has not claimed and
 52 12 received such a refund prior to January 1, 1964, shall, if the
 52 13 person makes a claim for refund after January 1, 1964, be
 52 14 required to submit proof satisfactory to the department of the
 52 15 person's entitlement to the refund.  The department is under
 52 16 no obligation to maintain the contribution accounts of such
 52 17 persons after January 1, 1964.
 52 18    Sec. 53.  Section 97B.70, subsection 3, Code 1997, is
 52 19 amended to read as follows:
 52 20    3.  Interest and interest dividends shall be credited to
 52 21 the accumulated contributions accounts of active members, and
 52 22 inactive vested members, and, effective January 1, 1999, to
 52 23 inactive nonvested members, until the first of the month
 52 24 coinciding with or next following the member's retirement date
 52 25 quarter prior to the quarter in which the member's first
 52 26 retirement allowance is paid or in which the member is issued
 52 27 a refund under section 97B.53, or in which a death benefit is
 52 28 issued.
 52 29    Sec. 54.  Section 97B.70, subsection 4, Code 1997, is
 52 30 amended to read as follows:
 52 31    4.  Interest Prior to January 1, 1999, interest and
 52 32 interest dividends shall be credited to the accumulated
 52 33 contributions account of a person who leaves the contributions
 52 34 in the retirement fund upon termination from covered
 52 35 employment prior to achieving vested status, but who
 53  1 subsequently achieves vested status returns to covered
 53  2 employment.  The Upon return to covered employment but prior
 53  3 to January 1, 1999, interest and interest dividends shall be
 53  4 credited to the accumulated contributions account of the
 53  5 person commencing upon the date on which the person becomes a
 53  6 vested member has covered wages.
 53  7    5.  Interest and interest dividends shall cease upon the
 53  8 first of the month coinciding with or next following the
 53  9 person's retirement date.  If the department no longer
 53 10 maintains the accumulated contribution account of the person
 53 11 pursuant to section 97B.53 this chapter, but the person
 53 12 submits satisfactory proof to the department that the person
 53 13 did make the contributions, the department shall credit
 53 14 interest and interest dividends in the manner provided in this
 53 15 subsection 4.
 53 16    Sec. 55.  Section 97B.72, Code 1997, is amended to read as
 53 17 follows:
 53 18    97B.72  MEMBERS OF GENERAL ASSEMBLY –APPROPRIATION.
 53 19    1.  Persons who are members of the Seventy-first General
 53 20 Assembly or a succeeding general assembly who submit proof to
 53 21 the department of membership in the general assembly during
 53 22 any period beginning July 4, 1953, may make contributions to
 53 23 the system for all or a portion of the period of service in
 53 24 the general assembly, and receive credit for the applicable
 53 25 period for which contributions are made.  The contributions
 53 26 made by the member shall be equal to the accumulated
 53 27 contributions as defined in section 97B.41, subsection 2,
 53 28 which would have been made if the member of the general
 53 29 assembly had been a member of the system during the applicable
 53 30 period.  The proof of membership in the general assembly and
 53 31 payment of accumulated contributions as provided by this
 53 32 section shall be transmitted to the department.  A member
 53 33 making contributions pursuant to this section may make the
 53 34 contributions either for the entire applicable period of
 53 35 service, or for portions of the period of service, and if
 54  1 contributions are made for portions of the period of service,
 54  2 the contributions shall be in increments of one or more
 54  3 calendar quarters.
 54  4    2.  The contributions required to be made for purposes of
 54  5 this section shall be determined as follows:
 54  6    a.  For a member making contributions for a purchase of
 54  7 additional service prior to July 1, 1999, the member shall
 54  8 make contributions in an amount equal to the accumulated
 54  9 contributions as defined in section 97B.41, subsection 2,
 54 10 which would have been made if the member of the general
 54 11 assembly had been a member of the system during the applicable
 54 12 period of service in the general assembly.  There is
 54 13 appropriated from moneys available to the general assembly
 54 14 under section 2.12 an amount sufficient to pay the
 54 15 contributions pursuant to this paragraph, of the employer
 54 16 based on the period of service for which the members have paid
 54 17 accumulated contributions, in an amount equal to the
 54 18 contributions which would have been made if the members of the
 54 19 general assembly who made employee contributions had been
 54 20 members of the system during the applicable period of service
 54 21 in the general assembly, plus interest and interest dividends
 54 22 at the rate provided in section 97B.70 for all completed
 54 23 calendar years, and for any completed calendar year for which
 54 24 the interest dividend has not been declared and for completed
 54 25 months of partially completed calendar years, compounded as
 54 26 provided in section 97B.70.
 54 27    b.  For a member making contributions for a purchase of
 54 28 additional service on or after July 1, 1999, the member shall
 54 29 make contributions in an amount equal to forty percent of the
 54 30 actuarial cost of the service purchase.  There is also
 54 31 appropriated from moneys available to the general assembly
 54 32 under section 2.12 an amount sufficient to pay sixty percent
 54 33 of the actuarial cost of the service purchase by a member
 54 34 pursuant to this paragraph.  For purposes of this paragraph,
 54 35 the actuarial cost of the service purchase is an amount
 55  1 determined by the department in accordance with actuarial
 55  2 tables, as reported to the department by the system's actuary,
 55  3 which reflects the actuarial cost necessary to fund an
 55  4 increased retirement allowance resulting from the purchase of
 55  5 additional service.
 55  6    3.  However, the department shall ensure that the member,
 55  7 in exercising an option provided in this section, does not
 55  8 exceed the amount of annual additions to a member's account
 55  9 permitted pursuant to section 415 of the federal Internal
 55 10 Revenue Code.
 55 11    Sec. 56.  Section 97B.72A, Code 1997, is amended to read as
 55 12 follows:
 55 13    97B.72A  FORMER LEGISLATIVE SERVICE – APPROPRIATION.
 55 14    1.  A vested or retired member of the system who was a
 55 15 member of the general assembly prior to July 1, 1988, may make
 55 16 contributions to the system for all or a portion of the period
 55 17 of service in the general assembly.  The contributions made by
 55 18 the member shall be equal to the accumulated contributions as
 55 19 defined in section 97B.41, subsection 2, which would have been
 55 20 made if the member of the general assembly had been a member
 55 21 of the system during the applicable period of service in the
 55 22 general assembly.  A member making contributions pursuant to
 55 23 this section may make the contributions either for the entire
 55 24 applicable period of service, or for portions of the period of
 55 25 service, and if contributions are made for portions of the
 55 26 period of service, the contributions shall be in increments of
 55 27 one or more calendar quarters.  The member of the system shall
 55 28 submit proof to the department of membership in the general
 55 29 assembly.  The department shall credit the member with the
 55 30 period of membership service for which contributions are made.
 55 31    2.  The contributions required to be made for purposes of
 55 32 this section shall be determined as follows:
 55 33    a.  For a member making contributions for a purchase of
 55 34 additional service prior to July 1, 1999, the contributions
 55 35 made by the member shall be equal to the accumulated
 56  1 contributions as defined in section 97B.41, subsection 2,
 56  2 which would have been made if the member of the general
 56  3 assembly had been a member of the system during the applicable
 56  4 period of service in the general assembly.  There is
 56  5 appropriated from the general fund of the state to the
 56  6 department an amount sufficient to pay the contributions of
 56  7 the employer based on the period of service of members of the
 56  8 general assembly for which the member paid accumulated
 56  9 contributions under this section pursuant to this paragraph.
 56 10 The amount appropriated is equal to the employer contributions
 56 11 which would have been made if the members of the system who
 56 12 made employee contributions had been members of the system
 56 13 during the period for which they made employee contributions,
 56 14 plus interest at the rate provided in section 97B.70 for each
 56 15 year compounded as provided in section 97B.70.
 56 16    b.  For a member making contributions for a purchase of
 56 17 additional service on or after July 1, 1999, the member shall
 56 18 make contributions in an amount equal to forty percent of the
 56 19 actuarial cost of the service purchase.  There is also
 56 20 appropriated from the general fund of the state to the
 56 21 department an amount sufficient to pay sixty percent of the
 56 22 actuarial cost of the service purchase by a member pursuant to
 56 23 this paragraph.  For purposes of this paragraph, the actuarial
 56 24 cost of the service purchase is an amount determined by the
 56 25 department in accordance with actuarial tables, as reported to
 56 26 the department by the system's actuary, which reflects the
 56 27 actuarial cost necessary to fund an increased retirement
 56 28 allowance resulting from the purchase of additional service.
 56 29    2. 3.  However, the department shall ensure that the
 56 30 member, in exercising an option provided in this section, does
 56 31 not exceed the amount of annual additions to a member's
 56 32 account permitted pursuant to section 415 of the federal
 56 33 Internal Revenue Code.
 56 34    Sec. 57.  Section 97B.73, Code 1997, is amended to read as
 56 35 follows:
 57  1    97B.73  MEMBERS FROM OTHER PUBLIC SYSTEMS.
 57  2    1.  A vested or retired member who has one or more full
 57  3 calendar years of covered wages who was in public employment
 57  4 comparable to employment covered under this chapter in another
 57  5 state or in the federal government, or who was a member of
 57  6 another public retirement system in this state, including but
 57  7 not limited to the teachers insurance annuity association-
 57  8 college retirement equities fund, but who was not retired
 57  9 under that system, upon submitting verification of membership
 57 10 and service in the other public system to the department,
 57 11 including proof that the member has no further claim upon a
 57 12 retirement benefit from that other public system, may make
 57 13 employer and employee contributions as provided by this
 57 14 section to the system either for the entire period of service
 57 15 in the other public system, or for partial service in the
 57 16 other public system in increments of one or more calendar
 57 17 quarters.  If the member wishes to transfer only a portion of
 57 18 the service value of another public system to this system and
 57 19 the other public system allows a partial withdrawal of a
 57 20 member's system credits, the member shall receive credit for
 57 21 membership service in this system equivalent to the period of
 57 22 service transferred from the other public system.  The
 57 23    2.  The contributions required to be made for purposes of
 57 24 this section shall be determined as follows:
 57 25    a.  For a member making contributions for a purchase of
 57 26 additional service prior to July 1, 1999, the contribution
 57 27 payable, representing both employee and employer
 57 28 contributions, shall be based upon the member's covered wages
 57 29 for the most recent full calendar year at the applicable rates
 57 30 in effect for that calendar year under sections 97B.11,
 57 31 97B.49B, 97B.49C, and 97B.49 97B.49G and multiplied by the
 57 32 member's years of service in other public employment.  If the
 57 33 member's most recent covered wages were earned prior to the
 57 34 most recent calendar year, the member's covered wages shall be
 57 35 adjusted by the department by an inflation factor to reflect
 58  1 changes in the economy since the covered wages were earned.
 58  2    b.  For a member making contributions for a purchase of
 58  3 additional service on or after July 1, 1999, the member shall
 58  4 make contributions in an amount equal to the actuarial cost of
 58  5 the service purchase.  For purposes of this paragraph, the
 58  6 actuarial cost of the service purchase is an amount determined
 58  7 by the department in accordance with actuarial tables, as
 58  8 reported to the department by the system's actuary, which
 58  9 reflects the actuarial cost necessary to fund an increased
 58 10 retirement allowance resulting from the purchase of additional
 58 11 service.
 58 12    3.  This section is applicable to a vested or retired
 58 13 member who was a member of a public retirement system
 58 14 established in sections 294.8, 294.9, and 294.10 but was not
 58 15 retired under that system.
 58 16    Notwithstanding any provision of this section to the
 58 17 contrary, effective July 1, 1994, a vested or retired member
 58 18 must have membership service within the current calendar year
 58 19 in order to make contributions in any manner provided by this
 58 20 section.
 58 21    4.  A member entitled to a benefit from another public
 58 22 system must waive, on a form provided by the Iowa public
 58 23 employees' retirement system, all rights to a retirement
 58 24 benefit under the other public system before receiving credit
 58 25 in this system for the years of service in the other public
 58 26 system.  The waiver must be accepted by the other public
 58 27 system.
 58 28    5.  Effective July 1, 1988, a member eligible for an
 58 29 increased retirement allowance because of the payment of
 58 30 contributions under this section is entitled to receipt of
 58 31 retroactive adjustment payments for no more than six months
 58 32 immediately preceding the month in which written notice was
 58 33 submitted to the department the member pays contributions
 58 34 under this section.
 58 35    6.  Effective July 1, 1998, a purchase of service made in
 59  1 accordance with this section by a retired reemployed member
 59  2 shall be applied to either the member's original retirement
 59  3 allowance, or to the member's reemployment service, whichever
 59  4 is more beneficial to the member.  If applied to a member's
 59  5 original retirement allowance, or to the member's reemployment
 59  6 service after the retirement allowance payments for such
 59  7 service begin, the member is eligible to receive retroactive
 59  8 adjustment payments for no more than six months prior to
 59  9 completion of the purchase.
 59 10    7.  However, the department shall ensure that the member,
 59 11 in exercising an option provided in this section, does not
 59 12 exceed the amount of annual additions to a member's account
 59 13 permitted pursuant to section 415 of the federal Internal
 59 14 Revenue Code.
 59 15    Sec. 58.  Section 97B.73A, Code 1997, is amended to read as
 59 16 follows:
 59 17    97B.73A  PART-TIME COUNTY ATTORNEYS.
 59 18    1.  A part-time county attorney may elect in writing to the
 59 19 department to make employee contributions to the system for
 59 20 the county attorney's previous service as a county attorney
 59 21 and receive credit for membership service in the system for
 59 22 the applicable period of service as a part-time county
 59 23 attorney for which employee contributions are made.  The
 59 24 contributions paid by the member shall be equal to the
 59 25 accumulated contributions, as defined in section 97B.41,
 59 26 subsection 2, for the applicable period of membership service.
 59 27 A member making contributions pursuant to this section may
 59 28 make the contributions either for the entire applicable period
 59 29 of service, or for portions of the period of service, and if
 59 30 contributions are made for portions of the period of service,
 59 31 the contributions shall be in increments of one or more
 59 32 calendar quarters.
 59 33    2.  The contributions required to be made for purposes of
 59 34 this section shall be determined as follows:
 59 35    a.  For a member making contributions for a purchase of
 60  1 additional service prior to July 1, 1999, the contributions
 60  2 paid by the member shall be equal to the accumulated
 60  3 contributions, as defined in section 97B.41, subsection 2, for
 60  4 the applicable period of membership service.  A member who
 60  5 elects to make contributions under this section pursuant to
 60  6 this paragraph shall notify the applicable county board of
 60  7 supervisors of the member's election, and the county board of
 60  8 supervisors shall pay to the department the employer
 60  9 contributions that would have been contributed by the employer
 60 10 under section 97B.11, plus interest on the contributions that
 60 11 would have accrued if the county attorney had been a member of
 60 12 the system for the applicable period of service.
 60 13    b.  For a member making contributions for a purchase of
 60 14 additional service on or after July 1, 1999, the member shall
 60 15 make contributions in an amount equal to forty percent of the
 60 16 actuarial cost of the service purchase.  Upon notification of
 60 17 the applicable county board of supervisors of the member's
 60 18 election, the county board of supervisors shall pay to the
 60 19 department an amount sufficient to pay sixty percent of the
 60 20 actuarial cost of the service purchase by a member pursuant to
 60 21 this paragraph.  For purposes of this paragraph, the actuarial
 60 22 cost of the service purchase is an amount determined by the
 60 23 department in accordance with actuarial tables, as reported to
 60 24 the department by the system's actuary, which reflects the
 60 25 actuarial cost necessary to fund an increased retirement
 60 26 allowance resulting from the purchase of additional service.
 60 27    3.  Effective July 1, 1988, a member eligible for an
 60 28 increased retirement allowance because of the payment of
 60 29 contributions under this section is entitled to receipt of
 60 30 retroactive adjustment payments for no more than six months
 60 31 immediately preceding the month in which written notice was
 60 32 submitted to the department.
 60 33    4.  However, the department shall ensure that the member,
 60 34 in exercising an option provided in this section, does not
 60 35 exceed the amount of annual additions to a member's account
 61  1 permitted pursuant to section 415 of the federal Internal
 61  2 Revenue Code.
 61  3    Sec. 59.  Section 97B.74, Code 1997, is amended to read as
 61  4 follows:
 61  5    97B.74  REINSTATEMENT AS A VESTED MEMBER (BUY-BACK).
 61  6    1.  A vested or retired member who was a member of the
 61  7 system at any time on or after July 4, 1953, and who received
 61  8 a refund of the member's contributions for that period of
 61  9 membership service, may elect in writing to the department to
 61 10 make contributions to the system for all or a portion of the
 61 11 period of membership service for which a refund of
 61 12 contributions was made, and receive credit for the period of
 61 13 membership service for which contributions are made.  The
 61 14 contributions repaid by the member for such service shall be
 61 15 equal to the accumulated contributions, as defined in section
 61 16 97B.41, subsection 2, received by the member for the
 61 17 applicable period of membership service, plus interest on the
 61 18 accumulated contributions for the applicable period, from the
 61 19 date of receipt by the member to the date of repayment, at the
 61 20 interest rate provided in section 97B.70 applicable for each
 61 21 year compounded as provided in section 97B.70.
 61 22    A member making contributions pursuant to this section may
 61 23 make the contributions either for the entire applicable period
 61 24 of service, or for portions of the period of service, and if
 61 25 contributions are made for portions of the period of service,
 61 26 the contributions shall be in increments of one or more
 61 27 calendar quarters.
 61 28    2.  The contributions required to be made for purposes of
 61 29 this section shall be determined as follows:
 61 30    a.  For a member making contributions for a purchase of
 61 31 additional service prior to July 1, 1999, the contributions to
 61 32 be repaid by the member for such service shall be equal to the
 61 33 accumulated contributions, as defined in section 97B.41,
 61 34 subsection 2, received by the member for the applicable period
 61 35 of membership service, plus interest on the accumulated
 62  1 contributions for the applicable period, from the date of
 62  2 receipt by the member to the date of repayment, at the
 62  3 interest rate provided in section 97B.70 applicable for each
 62  4 year compounded as provided in section 97B.70.
 62  5    b.  For a member making contributions for a purchase of
 62  6 additional service on or after July 1, 1999, the member shall
 62  7 make contributions in an amount equal to the actuarial cost of
 62  8 the service purchase.  For purposes of this paragraph, the
 62  9 actuarial cost of the service purchase is an amount determined
 62 10 by the department in accordance with actuarial tables, as
 62 11 reported to the department by the system's actuary, which
 62 12 reflects the actuarial cost necessary to fund an increased
 62 13 retirement allowance resulting from the purchase of additional
 62 14 service.
 62 15    3.  Effective July 1, 1988, a member eligible for an
 62 16 increased retirement allowance because of the payment of
 62 17 contributions under this section is entitled to receipt of
 62 18 retroactive adjustment payments for no more than six months
 62 19 immediately preceding the month in which written notice was
 62 20 submitted to the department.
 62 21    Sec. 60.  Section 97B.80, Code Supplement 1997, is amended
 62 22 to read as follows:
 62 23    97B.80  VETERAN'S CREDIT.
 62 24    1.  Effective July 1, 1992, a vested or retired member, who
 62 25 has one or more full calendar years of covered wages and who
 62 26 at any time served on active duty in the armed forces of the
 62 27 United States, upon submitting verification of the dates of
 62 28 the active duty service, may make employer and employee
 62 29 contributions to the system based upon the member's covered
 62 30 wages for the most recent full calendar year in which the
 62 31 member had reportable wages at the applicable rates in effect
 62 32 for that year under sections 97B.11 and 97B.49, for all or a
 62 33 portion of the period of time of the active duty service, in
 62 34 increments of one or more calendar quarters, and receive
 62 35 credit for membership service and prior service for the period
 63  1 of time for which the contributions are made.
 63  2    2.  The contributions required to be made for purposes of
 63  3 this section shall be determined as follows:
 63  4    a.  For a member making contributions for a purchase of
 63  5 additional service prior to July 1, 1999, the contributions to
 63  6 be paid, representing both employer and employee
 63  7 contributions, shall be based upon the member's covered wages
 63  8 for the most recent full calendar year in which the member had
 63  9 reportable wages at the applicable rates in effect for that
 63 10 year under sections 97B.11, 97B.49B, 97B.49C, and 97B.49G.  If
 63 11 the member's most recent covered wages were earned prior to
 63 12 the most recent calendar year, the member's covered wages
 63 13 shall be adjusted by the department by an inflation factor to
 63 14 reflect changes in the economy.
 63 15    b.  For a member making contributions for a purchase of
 63 16 additional service on or after July 1, 1999, the member shall
 63 17 make contributions in an amount equal to the actuarial cost of
 63 18 the service purchase.  For purposes of this paragraph, the
 63 19 actuarial cost of the service purchase is an amount determined
 63 20 by the department in accordance with actuarial tables, as
 63 21 reported to the department by the system's actuary, which
 63 22 reflects the actuarial cost necessary to fund an increased
 63 23 retirement allowance resulting from the purchase of additional
 63 24 service.
 63 25    3.  The department shall adjust benefits for a six-month
 63 26 period prior to the date the member pays contributions under
 63 27 this section if the member is receiving a retirement allowance
 63 28 at the time the contribution payment is made.  Verification of
 63 29 active duty service and payment of contributions shall be made
 63 30 to the department.  However, a member is not eligible to make
 63 31 contributions under this section if the member is receiving,
 63 32 is eligible to receive, or may in the future be eligible to
 63 33 receive retirement pay from the United States government for
 63 34 active duty in the armed forces, except for retirement pay
 63 35 granted by the United States government under retired pay for
 64  1 nonregular service pursuant to 10 U.S.C. } 12731–12739.  A
 64  2 member receiving retired pay for nonregular service who makes
 64  3 contributions under this section shall provide information
 64  4 required by the department documenting time periods covered
 64  5 under retired pay for nonregular service.
 64  6    Notwithstanding any provision of this section to the
 64  7 contrary, effective July 1, 1994, a vested or retired member
 64  8 must have membership service within the current calendar year
 64  9 in order to make contributions in any manner provided by this
 64 10 section.
 64 11    4.  Effective July 1, 1998, a purchase of service made in
 64 12 accordance with this section by a retired reemployed member
 64 13 shall be applied to either the member's original retirement
 64 14 allowance, or to the member's reemployment service, whichever
 64 15 is more beneficial to the member.  If applied to the member's
 64 16 original retirement allowance, or to the member's reemployment
 64 17 service after the retirement allowance payments for such
 64 18 service begin, the member is eligible to receive retroactive
 64 19 adjustment payments for no more than six months prior to
 64 20 completion of the purchase.
 64 21    5.  However, the department shall ensure that the member,
 64 22 in exercising an option provided in this section, does not
 64 23 exceed the amount of annual additions to a member's account
 64 24 permitted pursuant to section 415 of the federal Internal
 64 25 Revenue Code.
 64 26    Sec. 61.  NEW SECTION.  97B.81  LEAVES OF ABSENCE.
 64 27    1.  A vested member on an approved leave of absence which
 64 28 does not constitute service as defined in section 97B.1A,
 64 29 subsection 19, which is granted on or after July 1, 1998, may
 64 30 make contributions to the system for all or a portion of the
 64 31 leave of absence, and shall receive service credit for the
 64 32 period of time for which the contributions are made.
 64 33    2.  The contributions required to be made for purposes of
 64 34 this section shall be determined as follows:
 64 35    a.  For a member making contributions for a purchase of
 65  1 additional service prior to July 1, 1999, the contributions to
 65  2 be paid, representing both employer and employee
 65  3 contributions, shall be based upon the member's covered wages
 65  4 for the most recent full calendar year in which the member had
 65  5 covered wages at the applicable rates in effect for that
 65  6 calendar year under sections 97B.11, 97B.49B, 97B.49C, and
 65  7 97B.49G.  If the member's most recent covered wages were
 65  8 earned prior to the most recent calendar year, the member's
 65  9 covered wages shall be adjusted by the department by an
 65 10 inflation factor to reflect changes in the economy.
 65 11    b.  For a member making contributions for a purchase of
 65 12 additional service on or after July 1, 1999, the member shall
 65 13 make contributions in an amount equal to the actuarial cost of
 65 14 the service purchase.  For purposes of this paragraph, the
 65 15 actuarial cost of the service purchase is an amount determined
 65 16 by the department in accordance with actuarial tables, as
 65 17 reported to the department by the system's actuary, which
 65 18 reflects the actuarial cost necessary to fund an increased
 65 19 retirement allowance resulting from the purchase of additional
 65 20 service.
 65 21    3.  A member shall not be entitled to purchase the service
 65 22 credit, however, if the member is entitled to receive a
 65 23 retirement benefit from another public retirement system for
 65 24 the same period of time.  A member entitled to a benefit from
 65 25 another public system must waive, on a form provided by the
 65 26 Iowa public employees' retirement system, all rights to a
 65 27 retirement benefit under the other public system before
 65 28 receiving credit in this system for any period of service in
 65 29 the other public system.  The waiver must be accepted by the
 65 30 other public system.
 65 31    4.  However, the department shall ensure that the member,
 65 32 in exercising an option provided by this section, does not
 65 33 exceed the amount of annual additions to a member's account
 65 34 permitted pursuant to section 415 of the federal Internal
 65 35 Revenue Code.
 66  1    Sec. 62.  Section 97D.3, subsection 2, Code 1997, is
 66  2 amended to read as follows:
 66  3    2.  Upon a favorable vote in the referendum and
 66  4 notwithstanding sections 97A.3 and 411.3, all persons newly
 66  5 hired as peace officers, as defined in section 97A.1, police
 66  6 officers, and fire fighters after July 1, 1991, shall be
 66  7 members of the Iowa public employees' retirement system under
 66  8 chapter 97B, rather than members of retirement systems under
 66  9 chapters 97A and 411.  Such members shall have federal social
 66 10 security coverage in addition to coverage under the Iowa
 66 11 public employees' retirement system and shall have the same
 66 12 benefits as county sheriffs and deputy sheriffs under section
 66 13 97B.49, subsection 16, paragraph "b" 97B.49C or 97B.49G, as
 66 14 applicable.
 66 15    Sec. 63.  Section 509A.13A, subsection 1, paragraph b,
 66 16 subparagraph (2), subparagraph subdivision (b), Code 1997, is
 66 17 amended to read as follows:
 66 18    (b)  Meeting the requirements for receiving benefits under
 66 19 section 97B.49, subsection 16 97B.49B, 97B.49C, or 97B.49G,
 66 20 subsections 10 and 11, without a reduction for years of
 66 21 service pursuant to section 97B.49, subsection 16, paragraph
 66 22 "c".
 66 23    Sec. 64.  Section 602.1611, subsection 3, Code 1997, is
 66 24 amended to read as follows:
 66 25    3.  Magistrates may elect to shall be members of the Iowa
 66 26 public employees' retirement system upon filing in writing
 66 27 with the department of personnel unless the magistrate elects
 66 28 out of coverage under the Iowa public employees' retirement
 66 29 system as provided in section 97B.41, subsection 8, paragraph
 66 30 "b," subparagraph (8) 97B.42A.
 66 31    Sec. 65.  Section 602.11115, subsection 2, Code 1997, is
 66 32 amended to read as follows:
 66 33    2.  To commence coverage under the judicial retirement
 66 34 system pursuant to article 9, part 1, effective July 1, 1984,
 66 35 but to become an inactive member of the Iowa public employees'
 67  1 retirement system pursuant to chapter 97B and remain eligible
 67  2 for benefits under section 97B.49 sections 97B.49A through
 67  3 97B.49H for the period of membership service under chapter
 67  4 97B.
 67  5    Sec. 66.  Section 724.6, subsection 2, Code 1997, is
 67  6 amended to read as follows:
 67  7    2.  Notwithstanding subsection 1, fire fighters, as defined
 67  8 in section 411.1, subsection 9, airport fire fighters included
 67  9 under section 97B.49, subsection 16, paragraph "b",
 67 10 subparagraph (2) 97B.49C, emergency rescue technicians, and
 67 11 emergency medical care providers, as defined in section
 67 12 147A.1, shall not, as a condition of employment, be required
 67 13 to obtain a permit under this section.  However, the
 67 14 provisions of this subsection shall not apply to a person
 67 15 designated as an arson investigator by the chief fire officer
 67 16 of a political subdivision.
 67 17    Sec. 67.  Sections 97B.12 and 97B.20, Code 1997, are
 67 18 repealed.
 67 19    Sec. 68.  Section 97B.49, Code Supplement 1997, is
 67 20 repealed.
 67 21    Sec. 69.  EFFECTIVE DATE – APPLICABILITY.  Section 14,
 67 22 amending section 97B.41, subsection 8, is effective January 1,
 67 23 1999, and is applicable to persons hired on and after that
 67 24 date.
 67 25    Sec. 70.  IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM –
 67 26 ELIGIBILITY FOR RETIREMENT ALLOWANCE.
 67 27    1.  Notwithstanding any provision of chapter 97B to the
 67 28 contrary, a person designated by an eligible member of the
 67 29 Iowa public employees' retirement system as a contingent
 67 30 annuitant eligible to receive an optional allowance pursuant
 67 31 to Iowa Code section 97B.51 but who did not receive an
 67 32 allowance as a contingent annuitant pursuant to the
 67 33 requirements of section 97B.51 (Code 1993) shall be entitled
 67 34 to receive an optional allowance and an applicable lump-sum
 67 35 payment pursuant to that election commencing with the first
 68  1 month following a determination by the Iowa public employees'
 68  2 retirement system that the requirements of this section are
 68  3 met.  For purposes of this section, "an applicable lump-sum
 68  4 payment" means an amount representing the monthly allowances
 68  5 that would have been paid had the person designated as a
 68  6 contingent annuitant been eligible to receive an optional
 68  7 allowance immediately following the death of the eligible
 68  8 member.
 68  9    2.  For purposes of this section, an eligible member of the
 68 10 Iowa public employees' retirement system means a member who
 68 11 meets all of the following requirements:
 68 12    a.  The member submitted a valid application for retirement
 68 13 benefits between November 1, 1993, and January 1, 1995.
 68 14    b.  The member was otherwise eligible to receive a
 68 15 retirement allowance pursuant to section 97B.51, subsection 1,
 68 16 Code 1993, but died prior to the department of personnel
 68 17 issuing payment of the member's first retirement allowance.
 68 18    c.  The member survived into the month for which the
 68 19 member's first retirement allowance would have been payable.
 68 20    3.  The person designated as a contingent annuitant shall
 68 21 file a valid application with the Iowa public employees'
 68 22 retirement system for an allowance pursuant to this section
 68 23 prior to June 30, 1999.
 68 24    4.  A person designated as a contingent annuitant who
 68 25 elects to receive an allowance pursuant to this section shall,
 68 26 prior to receiving an allowance pursuant to this section, make
 68 27 arrangements with the Iowa public employees' retirement system
 68 28 to repay any death benefits paid by the system to the person.
 68 29    Sec. 71.  CODE EDITOR DIRECTIVES.  The Code editor is
 68 30 directed to renumber Iowa Code section 97B.41 to Iowa Code
 68 31 section 97B.1A.  Sections 97A.3, 97B.1, 97B.42B, 97B.43,
 68 32 97B.66, 97B.68, 97B.72, 97B.72A, 97B.73A, 97B.74, 411.3,
 68 33 411.30, and 602.11115, Code 1997, are amended by striking from
 68 34 the sections the reference "97B.41" and inserting in lieu
 68 35 thereof the reference "97B.1A".  
 69  1                          DIVISION III
 69  2           STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 69  3    Sec. 72.  Section 411.6, subsection 2, paragraph d,
 69  4 subparagraph (3), Code 1997, is amended to read as follows:
 69  5    (3)  For a member who terminates service, other than by
 69  6 death or disability, on or after October 16, 1992, but before
 69  7 July 1, 1998, and who does not withdraw the member's
 69  8 contributions pursuant to section 411.23, upon the member's
 69  9 retirement there shall be added six-tenths percent of the
 69 10 member's average final compensation for each year of service
 69 11 over twenty-two years.  However, this subparagraph does not
 69 12 apply to more than eight additional years of service.
 69 13    Sec. 73.  Section 411.6, subsection 2, paragraph d, Code
 69 14 1997, is amended by adding the following new subparagraph:
 69 15    NEW SUBPARAGRAPH.  (4)  For a member who terminates
 69 16 service, other than by death or disability, on or after July
 69 17 1, 1998, and who does not withdraw the member's contributions
 69 18 pursuant to section 411.23, upon the member's retirement there
 69 19 shall be added one and one-half percent of the member's
 69 20 average final compensation for each year of service over
 69 21 twenty-two years.  However, this subparagraph does not apply
 69 22 to more than eight additional years of service.
 69 23    Sec. 74.  Section 411.6, subsection 4, Code 1997, is
 69 24 amended to read as follows:
 69 25    4.  ALLOWANCE ON ORDINARY DISABILITY RETIREMENT.
 69 26    a.  Upon retirement for ordinary disability prior to July
 69 27 1, 1998, a member shall receive an ordinary disability
 69 28 retirement allowance which shall consist of a pension which
 69 29 shall equal fifty percent of the member's average final
 69 30 compensation unless either of the following conditions exist:
 69 31    a. (1)  If the member has not had five or more years of
 69 32 membership service the member shall receive a pension equal to
 69 33 one-fourth of the member's average final compensation.
 69 34    b. (2)  If the member has had twenty-two or more years of
 69 35 membership service, the member shall receive a disability
 70  1 retirement allowance that is equal to the greater of the
 70  2 benefit that the member would receive under subsection 2 if
 70  3 the member were fifty-five years of age or the disability
 70  4 pension otherwise calculated under this subsection.
 70  5    b.  Upon retirement for ordinary disability on or after
 70  6 July 1, 1998, a member who has five or more years of
 70  7 membership service shall receive a disability retirement
 70  8 allowance in an amount equal to the greater of fifty percent
 70  9 of the member's average final compensation or the retirement
 70 10 allowance that the member would receive under subsection 2 if
 70 11 the member had attained fifty-five years of age.  A member who
 70 12 has less than five years of membership service shall receive a
 70 13 pension equal to one-fourth of the member's average final
 70 14 compensation.
 70 15    Sec. 75.  Section 411.6, subsection 6, paragraph b, Code
 70 16 1997, is amended to read as follows:
 70 17    b.  Upon retirement for accidental disability on or after
 70 18 July 1, 1990, but before July 1, 1998, a member shall receive
 70 19 an accidental disability retirement allowance which shall
 70 20 consist of a pension equal to sixty percent of the member's
 70 21 average final compensation.  However, if the member has had
 70 22 twenty-two or more years of membership service, the member
 70 23 shall receive a disability retirement allowance that is equal
 70 24 to the greater of the retirement allowance that the member
 70 25 would receive under subsection 2 if the member was fifty-five
 70 26 years of age or the disability retirement allowance calculated
 70 27 under this paragraph.
 70 28    Sec. 76.  Section 411.6, subsection 6, Code 1997, is
 70 29 amended by adding the following new paragraph:
 70 30    NEW PARAGRAPH.  c.  Upon retirement for accidental
 70 31 disability on or after July 1, 1998, a member shall receive an
 70 32 accidental disability retirement allowance which shall consist
 70 33 of a pension in an amount equal to the greater of sixty
 70 34 percent of the member's average final compensation or the
 70 35 retirement allowance that the member would receive under
 71  1 subsection 2 if the member has attained fifty-five years of
 71  2 age.
 71  3    Sec. 77.  Section 411.6, subsection 10, Code 1997, is
 71  4 amended to read as follows:
 71  5    10.  Pensions offset by compensation benefits.  Any amounts
 71  6 which may be paid or payable by the said cities under the
 71  7 provisions of any workers' compensation or similar law to a
 71  8 member or to the dependents of a member on account of any
 71  9 disability or death, shall be offset against and payable in
 71 10 lieu of any benefits payable under the provisions of this
 71 11 chapter on account of the same disability or death.  In
 71 12 addition, any amounts payable to a member as unemployment
 71 13 compensation under the provisions of chapter 96 based on
 71 14 unemployment from membership service for a member receiving an
 71 15 ordinary disability benefit or an accidental disability
 71 16 benefit pursuant to this chapter shall be offset against and
 71 17 payable in lieu of any benefits payable under the provisions
 71 18 of this chapter for an ordinary disability or an accidental
 71 19 disability.
 71 20    Sec. 78.  Section 411.9, Code 1997, is amended to read as
 71 21 follows:
 71 22    411.9  MILITARY SERVICE EXCEPTIONS.
 71 23    1.  A member who is absent while serving in the armed
 71 24 services of the United States or its allies and is discharged
 71 25 or separated from the armed services under honorable
 71 26 conditions shall have the period or periods of absence while
 71 27 serving in the armed services, not in excess of four years
 71 28 unless any period in excess of four years is at the request
 71 29 and for the convenience of the federal government, included as
 71 30 part of the member's period of service in the department.  The
 71 31 member shall not continue the contributions required of the
 71 32 member under section 411.8 during the period of military
 71 33 service, if the member, within one year after the member has
 71 34 been discharged or separated under honorable conditions from
 71 35 military service, returns and resumes duties in the
 72  1 department, and if the member is declared physically capable
 72  2 of resuming duties upon examination by the medical board.  A
 72  3 period of absence may exceed four years at the request and for
 72  4 the convenience of the federal government.
 72  5    2.  Notwithstanding any provisions of this chapter to the
 72  6 contrary, contributions, benefits, and service credit with
 72  7 respect to qualified military service shall be provided in
 72  8 accordance with section 414(u) of the federal Internal Revenue
 72  9 Code.
 72 10    Sec. 79.  Section 411.22, subsection 1, unnumbered
 72 11 paragraph 1, Code 1997, is amended to read as follows:
 72 12    If a member receives an injury for which benefits are
 72 13 payable under section 411.6, subsection 3 or 5, or section
 72 14 411.15 and if the injury is caused under circumstances
 72 15 creating a legal liability for damages against a third party
 72 16 other than the retirement system, the member or the member's
 72 17 legal representative may maintain an action for damages
 72 18 against the third party.  If a member or a member's legal
 72 19 representative commences such an action, the plaintiff member
 72 20 or representative shall serve a copy of the original notice
 72 21 upon the retirement system not less than ten days before the
 72 22 trial of the action, but a failure to serve the notice does
 72 23 not prejudice the rights of the retirement system, and the
 72 24 following rights and duties ensue:
 72 25    Sec. 80.  Section 411.22, subsection 3, Code 1997, is
 72 26 amended to read as follows:
 72 27    3.  Before a settlement is effective between a the
 72 28 retirement system and a third party who is liable for an
 72 29 injury, the member must consent in writing to the settlement;
 72 30 and if the settlement is between the member and a third party,
 72 31 the retirement system must consent in writing to the
 72 32 settlement; or on refusal to consent, in either case, the
 72 33 district court in the county in which either the city and or
 72 34 the retirement system are is located must consent in writing
 72 35 to the settlement.
 73  1    Sec. 81.  NEW SECTION.  411.24  PAYMENT TO REPRESENTATIVE
 73  2 PAYEE.
 73  3    1.  ADULTS.  When it appears to the system that the
 73  4 interest of an applicant entitled to a payment would be
 73  5 served, certification of payment may be made, regardless of
 73  6 the legal competence or incompetence of the individual
 73  7 entitled to the payment, either for direct payment to the
 73  8 applicant, or for the applicant's use and benefit to a
 73  9 representative of an applicant.  Payments under this section
 73 10 shall be made in accordance with rules adopted by the board.
 73 11    2.  MINORS.  Payments on behalf of minors shall be made in
 73 12 accordance with rules adopted by the board.
 73 13    3.  FINALITY.  Any payments made under the provisions of
 73 14 this section shall be a complete settlement and satisfaction
 73 15 of any claim, right, or interest in and to such payment.
 73 16    Sec. 82.  Section 411.36, subsection 1, paragraph c, Code
 73 17 1997, is amended to read as follows:
 73 18    c.  The city treasurers of A city treasurer, city financial
 73 19 officer, or city clerk involved with the financial matters of
 73 20 the city from four participating cities, one of whom is from a
 73 21 city having a population of less than forty thousand, and
 73 22 three of whom are from cities having a population of forty
 73 23 thousand or more.  The city treasurers members authorized
 73 24 pursuant to this paragraph shall be appointed by the governing
 73 25 body of the Iowa league of cities.  
 73 26                           DIVISION IV
 73 27                   JUDICIAL RETIREMENT SYSTEM
 73 28    Sec. 83.  Section 602.1611, Code 1997, is amended by adding
 73 29 the following new subsection:
 73 30    NEW SUBSECTION.  4.  Commencing July 1, 1998, associate
 73 31 juvenile judges and associate probate judges, who are
 73 32 appointed on a full-time basis, are members of the judicial
 73 33 retirement system established in article 9, part 1, and are
 73 34 not members of the public employees' retirement system
 73 35 established in chapter 97B, except as provided in section
 74  1 602.11116.
 74  2    Sec. 84.  NEW SECTION.  602.9107B  MINIMUM ANNUITY BENEFIT.
 74  3    A judge, or a survivor of a judge, who retired before July
 74  4 1, 1977, and who is receiving an annuity pursuant to this
 74  5 article, shall, commencing with an annuity paid on or after
 74  6 July 1, 1998, be paid a minimum monthly annuity payment of
 74  7 five hundred dollars.
 74  8    Sec. 85.  NEW SECTION.  602.11116  ASSOCIATE JUVENILE
 74  9 JUDGES AND ASSOCIATE PROBATE JUDGES – RETIREMENT.
 74 10    If a full-time associate juvenile judge or full-time
 74 11 associate probate judge is a member of the Iowa public
 74 12 employees' retirement system on June 30, 1998, the associate
 74 13 juvenile judge or associate probate judge shall elect, by
 74 14 informing the state court administrator by June 30, 1998, one
 74 15 of the following retirement benefit options to be effective
 74 16 July 1, 1998:
 74 17    1.  To remain a member under the Iowa public employees'
 74 18 retirement system pursuant to chapter 97B.
 74 19    2.  To commence membership under the judicial retirement
 74 20 system pursuant to article 9, part 1, effective July 1, 1998,
 74 21 but to become an inactive member of the Iowa public employees'
 74 22 retirement system pursuant to chapter 97B and remain eligible
 74 23 for benefits under sections 97B.49A through 97B.49H, as
 74 24 applicable, for the period of membership service under chapter
 74 25 97B.
 74 26    3.  To commence membership under the judicial retirement
 74 27 system pursuant to article 9, part 1, retroactive to the date
 74 28 the associate juvenile judge or associate probate judge became
 74 29 an associate juvenile judge or associate probate judge, and to
 74 30 cease to be a member of the Iowa public employees' retirement
 74 31 system, effective July 1, 1998.  The department of personnel
 74 32 shall transmit by January 1, 1999, to the state court
 74 33 administrator for deposit in the judicial retirement fund the
 74 34 associate juvenile judge's or associate probate judge's
 74 35 accumulated contributions as defined in section 97B.41,
 75  1 subsection 2, for the judge's period of membership service as
 75  2 an associate juvenile judge or associate probate judge.
 75  3 Before July 1, 2000, or at retirement previous to that date,
 75  4 an associate juvenile judge or associate probate judge who
 75  5 becomes a member of the judicial retirement system pursuant to
 75  6 this subsection shall contribute to the judicial retirement
 75  7 fund an amount equal to the difference between four percent of
 75  8 the associate juvenile judge's or associate probate judge's
 75  9 total salary received for the entire period of service before
 75 10 July 1, 1998, as an associate juvenile judge or associate
 75 11 probate judge, and the associate juvenile judge's or associate
 75 12 probate judge's accumulated contributions transmitted by the
 75 13 department of personnel to the state court administrator
 75 14 pursuant to this subsection.  The associate juvenile judge's
 75 15 or associate probate judge's contribution shall not be limited
 75 16 to the amount specified in section 602.9104, subsection 1.
 75 17 The state court administrator shall credit an associate
 75 18 juvenile judge or associate probate judge with service under
 75 19 the judicial retirement system for the period of service for
 75 20 which contributions at the four percent level are made.
 75 21    Sec. 86.  EFFECTIVE DATE.  Sections 83 and 85 of this Act,
 75 22 being deemed of immediate importance, take effect upon
 75 23 enactment.  
 75 24                           DIVISION V
 75 25                       GENERAL PROVISIONS
 75 26    Sec. 87.  Section 97D.1, subsection 1, Code 1997, is
 75 27 amended by adding the following new paragraph:
 75 28    NEW PARAGRAPH.  f.  Avoid enacting further benefit
 75 29 enhancements that fail to preserve or enhance
 75 30 intergenerational equity amongst all employees covered by the
 75 31 retirement system.
 75 32    Sec. 88.  COMPREHENSIVE EXAMINATION OF PLAN DESIGN –
 75 33 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
 75 34 DISABILITY SYSTEM, THE STATEWIDE FIRE AND POLICE RETIREMENT
 75 35 SYSTEM, AND MEMBERS OF SPECIAL CLASSIFICATIONS WITHIN THE IOWA
 76  1 PUBLIC EMPLOYEES' RETIREMENT SYSTEM – REPORT.
 76  2    1.  Representatives administering the Iowa public
 76  3 employees' retirement system, the statewide fire and police
 76  4 retirement system, and the public safety peace officers'
 76  5 retirement, accident, and disability system, hereafter "the
 76  6 systems' representatives", shall coordinate, in consultation
 76  7 with the public retirement systems committee established
 76  8 pursuant to section 97D.4, a comprehensive examination of the
 76  9 plan designs concerning the public retirement systems
 76 10 established in chapter 97A, chapter 411, and the provisions of
 76 11 chapter 97B governing special classifications, pursuant to the
 76 12 principles established in chapter 97D, and make
 76 13 recommendations concerning plan design improvement for each of
 76 14 the retirement systems.
 76 15    2.  In coordinating and conducting the examination required
 76 16 by this section, the systems' representatives shall consult,
 76 17 and make periodic reports to, the public retirement systems
 76 18 committee.  In addition, the systems' representatives shall
 76 19 hire, subject to the prior approval of the public retirement
 76 20 systems committee, a consultant to facilitate the conducting
 76 21 of the examination.  If a request for proposals, or similar
 76 22 process, is used to hire the consultant, the systems'
 76 23 representatives shall obtain approval from the public
 76 24 retirement systems committee as to the content of the request
 76 25 for proposals, or similar process, prior to the issuance of
 76 26 the request for proposals, or similar process.
 76 27    3.  In conducting the examination, the systems'
 76 28 representatives shall consider and examine, but not be limited
 76 29 to, the following:
 76 30    a.  Consideration of appropriate benefit enhancements to
 76 31 each retirement system, including the necessity of
 76 32 establishing enhanced disability benefits for members of the
 76 33 special classifications under the Iowa public employees'
 76 34 retirement system.  Consideration of benefit enhancements
 76 35 shall take into account the applicability of federal social
 77  1 security benefits for members of certain retirement systems
 77  2 under examination.
 77  3    b.  Consideration of establishing a unified or similar
 77  4 benefit structure pertaining to each retirement system under
 77  5 examination, taking into account the applicability or
 77  6 inapplicability of federal social security contributions and
 77  7 benefits for the members of each applicable retirement system.
 77  8    c.  Consideration of combining or further separating all or
 77  9 some of the functions of each retirement system under
 77 10 examination, such as system administration, pooling of moneys
 77 11 for investment purposes, actuarial and investment services,
 77 12 and including consideration of transferring certain groups of
 77 13 employees from one system to another or to a new system.
 77 14    d.  Establishment of equitable contribution rates for both
 77 15 employers and employees, including consideration of the
 77 16 mechanism to establish the contribution rates.
 77 17    e.  Consideration of establishing a uniform actuarial
 77 18 reporting method for all retirement systems under
 77 19 consideration to assist the public retirement systems
 77 20 committee in examining the relative financial condition of
 77 21 each retirement system.
 77 22    f.  Consideration of the member service needs of both
 77 23 active and retired members of each retirement system under
 77 24 examination.
 77 25    3.  In conducting the examination, the systems'
 77 26 representatives shall include input from active and retired
 77 27 members of each of the retirement systems subject to the
 77 28 comprehensive examination.
 77 29    4.  On or before September 1, 2000, the systems'
 77 30 representatives shall file a report with the legislative
 77 31 service bureau, for distribution to the public retirement
 77 32 systems committee, which contains the results of the
 77 33 comprehensive examination and any proposal, or proposals, for
 77 34 improving the plan design of any or all of the public
 77 35 retirement systems examined pursuant to this section.  The
 78  1 report shall also contain actuarial information concerning the
 78  2 costs of the proposal or proposals.
 78  3    Sec. 89.  COMPREHENSIVE EXAMINATION OF PUBLIC RETIREMENT
 78  4 SYSTEM ORGANIZATION AND STRUCTURE – REPORT.
 78  5    1.  The auditor of state and the treasurer of state shall
 78  6 coordinate a comprehensive examination concerning possible
 78  7 reorganization or combination of all or some of the functions
 78  8 of the Iowa public employees' retirement system (IPERS), the
 78  9 statewide fire and police retirement system (chapter 411), the
 78 10 public safety peace officers' retirement, accident, and
 78 11 disability system (chapter 97A), and the judicial retirement
 78 12 system, and make recommendations.
 78 13    2.  In conducting the examination, the auditor of state and
 78 14 treasurer of state shall consider and examine, but not be
 78 15 limited to, the following:
 78 16    a.  Consideration of transferring one or more retirement
 78 17 systems to another retirement system or to a new retirement
 78 18 system, including the consideration of transferring some
 78 19 employee classifications in a retirement system to another
 78 20 retirement system or into a new retirement system.
 78 21    b.  Consideration of combining certain functions of any or
 78 22 all of the retirement systems such as system administration,
 78 23 pooling of moneys for investment purposes, and actuarial and
 78 24 investment services.
 78 25    c.  Consideration of the purpose behind the creation of
 78 26 each retirement system, including the necessity for different
 78 27 benefit enhancements for particular employee classifications,
 78 28 and a careful weighing of the benefits of separate and smaller
 78 29 systems for purposes of serving those particular
 78 30 classifications with any potential cost savings from the
 78 31 possible combining of retirement systems.
 78 32    d.  Consideration of establishing a uniform actuarial
 78 33 reporting method for all retirement systems to assist the
 78 34 public retirement systems committee in examining the relative
 78 35 financial condition of each retirement system.
 79  1    3.  In conducting the examination, the auditor of state and
 79  2 treasurer of state shall include input from representatives
 79  3 administering the Iowa public employees' retirement system,
 79  4 the statewide fire and police retirement system, the judicial
 79  5 retirement system, and the public safety peace officers'
 79  6 retirement, accident, and disability system, as well as from
 79  7 active and retired members of each of the retirement systems
 79  8 subject to the comprehensive examination.
 79  9    4.  On or before September 1, 2000, the treasurer of state
 79 10 and the auditor of state shall file a report with the
 79 11 legislative service bureau, for distribution to the public
 79 12 retirement systems committee, which contains the results of
 79 13 the comprehensive examination and any proposal, or proposals,
 79 14 for combining or separating functions concerning any or all of
 79 15 the public retirement systems examined pursuant to this
 79 16 section.  The report shall also contain actuarial information
 79 17 concerning the costs or potential savings of the proposal or
 79 18 proposals.  
 79 19                           EXPLANATION 
 79 20    This bill makes numerous changes to public retirement
 79 21 systems, including the public safety peace officers'
 79 22 retirement, accident, and disability system, the Iowa public
 79 23 employees' retirement system, the statewide fire and police
 79 24 retirement system, and the judicial retirement system.  This
 79 25 bill may include a state mandate as defined in section 25B.3.
 79 26 The state mandate funding requirement in section 25B.2,
 79 27 however, does not apply to public employee retirement systems.
 79 28    The changes to each public retirement system are as
 79 29 follows:  
 79 30       PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT,
 79 31                      AND DISABILITY SYSTEM
 79 32    Code section 97A.6, subsection 2, paragraph "d", is amended
 79 33 to increase, from eight to 10 years, the maximum number of
 79 34 years to which the 1.5 percent credit is applied to establish
 79 35 the additional benefit for members for each additional year of
 80  1 service in the system over 22 years of service for members
 80  2 terminating service on or after July 1, 1998.  
 80  3            IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
 80  4    Code section 97B.8 is amended to permit the IPERS
 80  5 investment board to hold a closed session to discuss financial
 80  6 matters that might cause a loss to the system or to the
 80  7 provider of the information.
 80  8    Code section 97B.9 is amended to provide that if
 80  9 contributions are underpaid, the employee and employer are
 80 10 responsible for their share of the underpaid contributions and
 80 11 the employer is also responsible for any interest due on the
 80 12 total of the underpaid contributions.
 80 13    Code section 97B.10 is amended to provide that the
 80 14 department of personnel can pay interest on the return of
 80 15 contributions overpaid by an employer or employee if it is
 80 16 just and equitable.  In addition, the department is required
 80 17 to pay interest if the overpaid contributions result from the
 80 18 payment of contributions prior to a valid election by an
 80 19 employee not to be covered under IPERS.
 80 20    Code section 97B.17 is amended to provide that financial
 80 21 information relating to the investment of the IPERS fund can
 80 22 be considered confidential records if the release of the
 80 23 information could result in a loss to the system or to the
 80 24 provider of the information.
 80 25    Code section 97B.19 is amended to eliminate the current
 80 26 six-month limitation on the ability to correct the wage
 80 27 records of an IPERS-covered employee.
 80 28    Code section 97B.40 is amended to provide that the
 80 29 unauthorized use of a security device, such as a PIN number,
 80 30 for purposes of accessing information from IPERS constitutes a
 80 31 fraudulent practice.
 80 32    Code section 97B.41, subsection 8, concerning the
 80 33 definition of an employee under IPERS is amended.  The bill
 80 34 provides that those groups of employees who currently are not
 80 35 members of IPERS unless they elect coverage within, generally,
 81  1 60 days of employment will, commencing with employees hired on
 81  2 or after January 1, 1999, be members of IPERS unless they
 81  3 already are covered by another retirement system or
 81  4 affirmatively elect not to be covered pursuant to Code section
 81  5 97B.42A.  Code section 97B.42A is amended to reflect this
 81  6 change and provides that an election to not be covered shall
 81  7 be made within 60 days of employment.  Amended Code section
 81  8 97B.42A further provides that those employees who failed to
 81  9 elect coverage under IPERS pursuant to current law, and who
 81 10 are not in a different public retirement system, will become
 81 11 members of IPERS on January 1, 1999, with the ability to elect
 81 12 not to be covered under IPERS by January 1, 2000.  Amended
 81 13 Code section 97B.42A further provides that individuals in a
 81 14 position described in new Code section 97B.41, subsection 8,
 81 15 paragraph "a", who became members of IPERS previously and
 81 16 individuals who become members of IPERS on January 1, 1999,
 81 17 and who do not elect to not be covered under IPERS, are given
 81 18 the opportunity to purchase IPERS service credit for service
 81 19 in that position prior to January 1, 1999, which was not
 81 20 membership service.
 81 21    Code section 97B.41, subsection 19, concerning the
 81 22 definition of service is amended.  The change provides that
 81 23 service, with only a few exceptions, includes only service in
 81 24 which an employee is paid covered wages.  The amendment
 81 25 provides exceptions to the requirement of having to have paid
 81 26 service in order to constitute service under IPERS relating to
 81 27 military service, unpaid leave taken as a result of the
 81 28 federal Family and Medical Leave Act, and unpaid seasonal
 81 29 breaks for employees of school corporations and educational
 81 30 institutions in which the employee returns to a school
 81 31 corporation or educational institution upon the end of the
 81 32 break.  The current ability to have unpaid leaves of absence
 81 33 from an employer count as service is limited to leaves granted
 81 34 prior to July 1, 1998, and the leaves of absence must
 81 35 terminate by July 1, 1999.
 82  1    Code section 97B.41, subsection 23, concerning the
 82  2 definition of three-year covered wage, is amended concerning
 82  3 the method of calculating a computed wage for one of the
 82  4 employee's three years when employment does not end at the end
 82  5 of a calendar year.  The amendment provides that the computed
 82  6 year shall not be greater than the member's highest actual
 82  7 calendar year of covered wages.
 82  8    Code section 97B.46 is amended by striking the provision
 82  9 that a member shall not be employed as a peace officer or fire
 82 10 fighter after reaching age 65.
 82 11    Code section 97B.48 is amended by adding two new
 82 12 subsections.  One subsection provides that payment of a
 82 13 retirement allowance shall commence, regardless of whether the
 82 14 member has submitted an application, no later than the
 82 15 required beginning date as provided by federal law.
 82 16 Currently, the required beginning date is about 70.5 years of
 82 17 age.  The other new subsection provides that benefits payable
 82 18 to a member pursuant to this section as of the required
 82 19 beginning date shall be forfeited if the member cannot be
 82 20 found.  However, benefits will be paid to the member, at any
 82 21 time, if the member is located.
 82 22    Code section 97B.48A, concerning reemployment, is amended.
 82 23 The bill provides that the second annuity based upon years of
 82 24 reemployment service after retirement shall be calculated
 82 25 using the option choice the member made at the member's
 82 26 initial retirement.  If the member's reemployment service is
 82 27 not used for recalculation of the member's annuity, the bill
 82 28 provides that the member receives both the employee and
 82 29 employer contributions, plus interest, on the contributions
 82 30 made for the reemployment service.  Current law only provides
 82 31 for the return of the employee contributions plus interest.
 82 32    Code section 97B.49 is reorganized into new Code sections
 82 33 97B.49A through 97B.49G.  Code section 97B.49A provides the
 82 34 general benefits calculation for most IPERS members.  Code
 82 35 section 97B.49B provides for the benefit calculation for
 83  1 members of a protection occupation while Code section 97B.49C
 83  2 provides the benefit calculation for sheriffs, deputy
 83  3 sheriffs, and airport fire fighters.  Code section 97B.49D
 83  4 contains the current hybrid formula for calculating benefits.
 83  5 Code section 97B.49E contains the minimum benefits provisions
 83  6 while Code section 97B.49F contains the dividend provisions.
 83  7 Code section 97B.49G contains several historical benefit
 83  8 calculations for members who retired generally before July
 83  9 1994.
 83 10    In addition to the reorganization of Code section 97B.49,
 83 11 other substantive changes were made as well to current law.
 83 12 New section 97B.49C, concerning sheriffs, deputy sheriffs, and
 83 13 airport fire fighters, provides that a member covered by this
 83 14 section will receive an additional 1.5 percent for each
 83 15 additional year of service after 22 years of service for up to
 83 16 eight additional years.  Currently, sheriffs, deputy sheriffs,
 83 17 and airport fire fighters get only an additional 1 percent for
 83 18 up to five years of service beyond 22 years of service.
 83 19    Code section 97B.49F concerning dividends is also amended.
 83 20 The current dividend program for pre-July 1990 retirees is
 83 21 amended to provide that a retirement dividend will only be
 83 22 paid if the member survives into the month (November) in which
 83 23 the dividend is to be paid.
 83 24    Code section 97B.49F, subsection 2, establishes a favorable
 83 25 experience dividend applicable to members who retired on or
 83 26 after July 1, 1990.
 83 27    This new subsection provides, commencing January 1, 1999,
 83 28 that members who retired from IPERS on or after July 1, 1990,
 83 29 and who have been retired for at least one year are eligible
 83 30 to receive a favorable experience dividend.  The dividend
 83 31 shall be payable, if at all, from moneys deposited in a
 83 32 favorable experience reserve account.  Moneys shall be
 83 33 deposited in the reserve account based upon a determination by
 83 34 the actuary that the most recent valuation of the retirement
 83 35 fund indicates that the actual actuarial status of the
 84  1 retirement fund is better than what was anticipated by the
 84  2 actuary.  In addition, money sufficient to pay the dividend
 84  3 for the five years will be credited to the account in January
 84  4 1999.  The new subsection establishes the process for
 84  5 determining the amount of the favorable actuarial experience
 84  6 of the system that shall be deposited in the reserve account.
 84  7 The new subsection provides that the dividend shall be payable
 84  8 on the last business day of January following a determination
 84  9 by the actuary that there are sufficient moneys in the account
 84 10 to pay a dividend.  The new subsection provides that the
 84 11 dividend shall be calculated by multiplying the member's
 84 12 annual benefit by the number of years the member has been
 84 13 retired and by a percentage, not to exceed three percent,
 84 14 determined by the department.  The new subsection provides
 84 15 that a member's beneficiary or contingent annuitant is also
 84 16 eligible to receive a dividend.
 84 17    The new Code section 97B.49H establishes active member
 84 18 supplemental accounts for IPERS members.  The new Code section
 84 19 provides that amounts shall be deposited in these accounts
 84 20 only after the actuary determines that the system does not
 84 21 have an unfunded actuarial liability as of the most recent
 84 22 actuarial valuation of the system.  If an amount is payable,
 84 23 the new Code section then provides that IPERS shall deposit in
 84 24 each active member's account, in the year following the
 84 25 actuary's determination that the system does not have an
 84 26 unfunded liability, an amount determined by multiplying the
 84 27 member's covered wages by a supplemental percentage rate as
 84 28 determined by the actuary.  The supplemental rate is the rate
 84 29 which reflects the difference between the statutory
 84 30 contribution rate for both employers and employees and the
 84 31 contribution rate the actuary determines is necessary to fund
 84 32 the future benefits of the system.  The new Code section then
 84 33 provides that amounts in a member's supplemental account are
 84 34 payable upon a member's termination from covered service under
 84 35 certain circumstances, a member's death, or a member's
 85  1 retirement.  The new Code section provides that the
 85  2 establishment of an active member supplemental account is
 85  3 subject to IRS approval.
 85  4    Code section 97B.52 is amended to provide that interest on
 85  5 death benefits is to be credited quarterly.  In addition, the
 85  6 section is amended to provide that a death benefit payable to
 85  7 a designated beneficiary, heirs, or estate shall be forfeited
 85  8 if the appropriate payee cannot be found and no claim is made
 85  9 within the applicable time limit.  However, death benefits
 85 10 will be paid to the appropriate payee, at any time, if the
 85 11 appropriate payee is located.
 85 12    Code section 97B.52A is amended to provide that a retiree
 85 13 shall be out of any employment with a covered employer under
 85 14 IPERS following termination from service and initiation of
 85 15 retirement benefits from one to four months, as applicable, in
 85 16 order to continue receiving benefits.  Under current law, the
 85 17 retiree had to return to covered employment within the one to
 85 18 four-month period in order to forfeit receipt of retirement
 85 19 benefits.
 85 20    Code section 97B.53, subsection 1, is amended to provide
 85 21 that a member who terminates employment under IPERS prior to
 85 22 retirement may be paid, in addition to the total of their
 85 23 employee contributions plus interest, a portion of the total
 85 24 employer contributions paid on their behalf plus interest.
 85 25 The amendment provides that the member shall receive the total
 85 26 employer contributions paid, plus interest, multiplied by the
 85 27 member's number of years of the member's service divided by
 85 28 the number of years the member would have to serve in order to
 85 29 receive a 60 percent retirement allowance.
 85 30    Code section 97B.53 is also amended to provide interest on
 85 31 the accumulated employee contributions of inactive members
 85 32 whether or not the member was vested.  Corresponding changes
 85 33 to Code section 97B.70 are also made in the bill.
 85 34    Code sections 97B.73 and 97B.80, concerning the purchase of
 85 35 service credit for service under other systems or the
 86  1 military, is amended to provide that a member shall have at
 86  2 least one full calendar year of covered wages under IPERS
 86  3 before being allowed to purchase additional service credit.
 86  4    New Code section 97B.81 provides that a member on an
 86  5 approved leave of absence which does not constitute service
 86  6 pursuant to this bill's amendment to the definition of service
 86  7 may purchase service credit for that period of time in which
 86  8 the member was on an approved leave.
 86  9    Code sections 97B.72, 97B.72A, 97B.73, 97B.73A, 97B.74, and
 86 10 97B.80 are amended to provide, and new Code section 97B.81
 86 11 provides, beginning July 1, 1999, that the contributions
 86 12 required for a purchase of additional service credit through a
 86 13 buy-in or buy-back of service shall be based upon the
 86 14 actuarial cost of providing the additional service and not
 86 15 based upon the employee and, if applicable, employer
 86 16 contributions that would have been required for the service
 86 17 purchased.
 86 18    The Code editor is also directed to renumber Code sections
 86 19 97B.41 to 97B.1A.  Current Code section 97B.41 contains the
 86 20 definitions that apply to IPERS.
 86 21    The section creating a provision entitled "Iowa Public
 86 22 Employees' Retirement System – Eligibility for Retirement
 86 23 Allowance" provides that a person who was designated as a
 86 24 contingent annuitant by a member of the Iowa public employees'
 86 25 retirement system but who did not receive an allowance as a
 86 26 contingent annuitant shall receive an allowance and a lump-sum
 86 27 payment once the person files a valid application for such
 86 28 benefits by June 30, 1999, and meets the requirements of this
 86 29 new section.  The lump-sum payment shall be an amount the
 86 30 contingent annuitant would have received had the member met
 86 31 the requirements to receive a retirement allowance.  The new
 86 32 section provides that in order to be eligible to receive an
 86 33 allowance pursuant to this bill, the member must have
 86 34 submitted a valid application for retirement benefits between
 86 35 November 1, 1993, and January 1, 1995, was otherwise eligible
 87  1 to receive an allowance but died prior to the department of
 87  2 personnel issuing payment of the member's first retirement
 87  3 allowance, and survived into the month for which the member's
 87  4 first retirement allowance would have been payable.  In
 87  5 addition, the new section provides that the person make
 87  6 arrangements with the system to repay any death benefits
 87  7 received from the system prior to receiving an allowance
 87  8 pursuant to this new section.  
 87  9           STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 87 10    Code section 411.6, subsection 2, is amended to increase,
 87 11 from .6 percent to 1.5 percent, the additional benefit for
 87 12 members for each additional year of service in the system from
 87 13 22 to 30 years of service for members terminating service on
 87 14 or after July 1, 1998.
 87 15    Code section 411.6, subsection 4, is amended to provide
 87 16 that a member entitled to an ordinary disability pension on or
 87 17 after July 1, 1998, who has five years of service will receive
 87 18 a benefit equal to the greater of 50 percent of average final
 87 19 compensation or the amount the member would have received as a
 87 20 service retirement allowance based on actual years of service.
 87 21 Under current law, the member would be required to have had 22
 87 22 years of service to have the option to obtain a benefit equal
 87 23 to what the member would have received as a service
 87 24 retirement.
 87 25    Code section 411.6, subsection 6, is amended to provide
 87 26 that a member entitled to an accidental disability pension on
 87 27 of after July 1, 1998, who has five years of service will
 87 28 receive a benefit equal to the greater of 60 percent of
 87 29 average final compensation or the amount the member would have
 87 30 received as a service retirement allowance based on actual
 87 31 years of service.  Under current law, the member would be
 87 32 required to have had 22 years of service to have the option to
 87 33 obtain a benefit equal to what the member would have received
 87 34 as a service retirement.
 87 35    Code section 411.6, subsection 10, is amended to provide
 88  1 that retirement benefits payable to a member for an accidental
 88  2 disability or an ordinary disability shall be offset against
 88  3 any amounts the member is receiving as unemployment
 88  4 compensation as a result of the member's unemployment due to
 88  5 the ordinary disability or accidental disability.
 88  6    Code section 411.9 is amended to provide that
 88  7 notwithstanding any contrary provisions in Code chapter 411,
 88  8 contributions, benefits, and service credit with respect to
 88  9 qualified military service shall be provided in accordance
 88 10 with the requirements of the federal Internal Revenue Code.
 88 11    Code section 411.22, subsection 1, is amended to provide
 88 12 that the subrogation provisions of the chapter as they apply
 88 13 to accidental disability pensions shall also apply to ordinary
 88 14 disability pensions.
 88 15    Code section 411.22, subsection 3, is amended to provide
 88 16 that if the retirement system refuses to consent to an
 88 17 agreement between a member of the system and a third party,
 88 18 the agreement can be enforced through a determination by a
 88 19 district court in the county of either the city involved or
 88 20 the retirement system.
 88 21    New Code section 411.24 establishes representative payee
 88 22 procedures and provides that the board shall adopt rules to
 88 23 provide for payment to a representative of an adult or minor
 88 24 applicant entitled to payment.
 88 25    Code section 411.36, subsection 1, is amended to provide
 88 26 that city financial officers or city clerks involved with the
 88 27 financial matters of the city, and not just city treasurers,
 88 28 are eligible for selection to the board of trustees of the
 88 29 retirement system.  
 88 30                   JUDICIAL RETIREMENT SYSTEM
 88 31    The bill provides, through amending Code section 602.1611
 88 32 and new Code section 602.11116, that full-time associate
 88 33 juvenile judges and full-time associate probate judges hired
 88 34 on or after July 1, 1998, would be members of the judicial
 88 35 retirement system and not members of the Iowa public
 89  1 employees' retirement system (IPERS).  Current full-time
 89  2 associate juvenile judges and associate probate judges would
 89  3 have the option of remaining in IPERS, changing to judicial
 89  4 retirement but leaving their contributions in IPERS, or
 89  5 changing to judicial retirement and transferring a portion or
 89  6 their IPERS money in order to purchase additional service
 89  7 credit under judicial retirement.  This portion of the bill
 89  8 takes effect upon enactment.
 89  9    New Code section 602.9107B provides that a judge, or a
 89 10 survivor of a judge, who retired before July 1, 1977, shall
 89 11 receive a minimum monthly annuity under the judicial
 89 12 retirement system of $500 a month beginning with annuity
 89 13 payments made after July 1, 1998.  
 89 14                       GENERAL PROVISIONS
 89 15    Code section 97D.1, subsection 1, is amended to provide
 89 16 that a goal for all public retirement systems is to avoid
 89 17 enacting benefit enhancements that fail to preserve, or
 89 18 enhance, intergenerational equity amongst all employees.
 89 19    The bill provides for the establishment of two studies to
 89 20 which separate reports shall be issued to the public
 89 21 retirement systems committee by September 1, 2000.  One
 89 22 report, to be coordinated by the Iowa public employees'
 89 23 retirement system, the statewide fire and police retirement
 89 24 system, and the public safety peace officers' retirement,
 89 25 accident, and disability system, will examine the plan design
 89 26 and benefit structure of the statewide fire and police
 89 27 retirement system, the peace officers' retirement system, and
 89 28 the portion of the IPERS system that deals with the members of
 89 29 special classifications within IPERS (i.e., members of a
 89 30 protection occupation and the sheriffs, deputy sheriffs, and
 89 31 airport fire fighters), and to make recommendations.  The
 89 32 other study, to be conducted by the auditor of state and
 89 33 treasurer of state, is to examine all the public retirement
 89 34 systems and to consider proposals to combine or separate
 89 35 further, the retirement systems, or the functions of the
 90  1 retirement systems.  
 90  2 LSB 3570HC 77
 90  3 ec/jl/8.2
     

Text: HSB00680                          Text: HSB00682
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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