Text: S03665 Text: S03667 Text: S03600 - S03699 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 540, as passed by the House, as 1 2 follows: 1 3 #1. Page 4, by inserting after line 27 the 1 4 following: 1 5 "Sec. 101. Section 97A.8, subsection 1, paragraph 1 6 i, Code 1997, is amended to read as follows: 1 7 i. (1) Notwithstanding paragraph "g" or other 1 8 provisions of this chapter, beginning January 1, 1995, 1 9 for federal income tax purposes, and beginning January 1 10 1, 1998, for state income tax purposes, member 1 11 contributions required under paragraph "f" or "h" 1 12 which are picked up by the department shall be 1 13 considered employer contributions for federal and 1 14 state income tax purposes, and the department shall 1 15 pick up the member contributions to be made under 1 16 paragraph "f" or "h" by its employees. The department 1 17 shall pick up these contributions by reducing the 1 18 salary of each of its employees covered by this 1 19 chapter by the amount which each employee is required 1 20 to contribute under paragraph "f" or "h" and shall 1 21 certify the amount picked up in lieu of the member 1 22 contributions to the department of revenue and 1 23 finance. The department of revenue and finance shall 1 24 forward the amount of the contributions picked up to 1 25 the board of trustees for recording and deposit in the 1 26 pension accumulation fund. 1 27 (2) Member contributions picked up by the 1 28 department under subparagraph (1) shall be treated as 1 29 employer contributions for federal and state income 1 30 tax purposes only and for all other purposes of this 1 31 chapterand the laws of this stateshall be treated as 1 32 employee contributions and deemed part of the 1 33 employee's earnable compensation or salary. 1 34 Sec. 201. Section 97B.11A, Code 1997, is amended 1 35 to read as follows: 1 36 97B.11A PICKUP OF EMPLOYEE CONTRIBUTIONS. 1 37 1. Notwithstanding section 97B.11 or other 1 38 provisions of this chapter, beginning January 1, 1995, 1 39 for federal income tax purposes, and beginning January 1 40 1, 1998, for state income tax purposes, member 1 41 contributions required under section 97B.11 which are 1 42 picked up by the employer shall be considered employer 1 43 contributions for federal and state income tax 1 44 purposes, and each employer shall pick up the member 1 45 contributions to be made under section 97B.11 by its 1 46 employees. Each employer shall pick up these 1 47 contributions by reducing the salary of each of its 1 48 employees covered by this chapter by the amount which 1 49 each employee is required to contribute under section 1 50 97B.11 and shall pay the amount picked up in lieu of 2 1 the member contributions as provided in section 2 2 97B.14. 2 3 2. Member contributions picked up by each employer 2 4 under subsection 1 shall be treated as employer 2 5 contributions for federal and state income tax 2 6 purposes only and for all other purposes of this 2 7 chapterand the laws of this stateshall be treated as 2 8 employee contributions and deemed part of the 2 9 employee's wages or salary. 2 10 Sec. 301. Section 294.10A, Code 1997, is amended 2 11 to read as follows: 2 12 294.10A PICKUP OF TEACHER ASSESSMENTS. 2 13 1. Notwithstanding section 294.9 or other 2 14 provisions of this chapter, for federal income tax 2 15 purposes beginning January 1 following the submission 2 16 by a board of trustees of an application to the 2 17 federal internal revenue service requesting 2 18 qualification of a plan in accordance with the 2 19 requirements of the Internal Revenue Code, as defined 2 20 in section 422.3, and for state income tax purposes 2 21 beginning January 1, 1998, or January 1 following an 2 22 application for qualification, whichever is later, 2 23 teacher assessments required under section 294.9 which 2 24 are picked up by an employing school district shall be 2 25 considered employer contributions for federal and 2 26 state income tax purposes, and each employing school 2 27 district establishing a pension and annuity retirement 2 28 system pursuant to this chapter shall pick up the 2 29 teacher assessments to be made under section 294.9 by 2 30 its employees commencing on theJanuary 1 following an2 31application for qualificationapplicable date under 2 32 this subsection. Each employing school district shall 2 33 pick up these teacher assessments by reducing the 2 34 salary of each of the teachers covered by this chapter 2 35 by the amount which each teacher is required to 2 36 contribute through assessments under section 294.9 and 2 37 shall pay to the board of trustees the amount picked 2 38 up in lieu of the teacher assessments for recording 2 39 and deposit in the fund. 2 40 2. Teacher assessments picked up by each employing 2 41 school district under subsection 1 shall be treated as 2 42 employer contributions for federal and state income 2 43 tax purposes only and for all other purposes of this 2 44 chapterand the laws of this stateshall be treated as 2 45 teacher assessments and deemed part of the teacher's 2 46 wages or salary. 2 47 Sec. 401. Section 411.8, subsection 1, paragraph 2 48 i, Code 1997, is amended to read as follows: 2 49 i. (1) Notwithstanding paragraph "g" or other 2 50 provisions of this chapter, beginning January 1, 1995, 3 1 for federal income tax purposes, and beginning January 3 2 1, 1998, for state income tax purposes, member 3 3 contributions required under paragraph "f" or "h" 3 4 which are picked up by the city shall be considered 3 5 employer contributions for federal and state income 3 6 tax purposes, and each city shall pick up the member 3 7 contributions to be made under paragraph "f" or "h" by 3 8 its employees. Each city shall pick up these 3 9 contributions by reducing the salary of each of its 3 10 employees covered by this chapter by the amount which 3 11 each employee is required to contribute under 3 12 paragraph "f" or "h" and shall pay the amount picked 3 13 up in lieu of the member contributions to the board of 3 14 trustees for recording and deposit in the fund. 3 15 (2) Member contributions picked up by each city 3 16 under subparagraph (1) shall be treated as employer 3 17 contributions for federal and state income tax 3 18 purposes only and for all other purposes of this 3 19 chapterand the laws of this stateshall be treated as 3 20 employee contributions and deemed part of the 3 21 employee's earnable compensation or salary. 3 22 Sec. 501. Section 422.7, subsections 29 through 3 23 31, Code 1997, are amended by striking the 3 24 subsections." 3 25 #2. Page 5, by inserting after line 17 the 3 26 following: 3 27 "Sec. 601. EFFECTIVE AND APPLICABILITY DATES. 3 28 Sections 101, 201, 301, 401, and 501 of this Act take 3 29 effect January 1, 1998, and apply to tax years 3 30 beginning on or after January 1, 1998." 3 31 #3. Title page, line 1, by inserting after the 3 32 word "to" the following: "public retirement systems 3 33 and employer contributions,". 3 34 #4. Title page, line 2, by inserting after the 3 35 word "employees" the following: ", and providing 3 36 applicability and effective dates". 3 37 #5. By renumbering and correcting internal 3 38 references as necessary. 3 39 3 40 3 41 3 42 JOHN P. KIBBIE 3 43 JOHNIE HAMMOND 3 44 MARY A. LUNDBY 3 45 MARY LOU FREEMAN 3 46 PATRICK J. DELUHERY 3 47 HF 540.205 77 3 48 ec/jj/28
Text: S03665 Text: S03667 Text: S03600 - S03699 Text: S Index Bills and Amendments: General Index Bill History: General Index
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