Text: SF00430 Text: SF00432 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 97A.8, subsection 1, paragraph i, Code 1 2 1997, is amended to read as follows: 1 3 i. (1) Notwithstanding paragraph "g" or other provisions 1 4 of this chapter, beginning January 1, 1995, for federal income 1 5 tax purposes, and beginning January 1, 1998, for state income 1 6 tax purposes, member contributions required under paragraph 1 7 "f" or "h" which are picked up by the department shall be 1 8 considered employer contributions for federal and state income 1 9 tax purposes, and the department shall pick up the member 1 10 contributions to be made under paragraph "f" or "h" by its 1 11 employees. The department shall pick up these contributions 1 12 by reducing the salary of each of its employees covered by 1 13 this chapter by the amount which each employee is required to 1 14 contribute under paragraph "f" or "h" and shall certify the 1 15 amount picked up in lieu of the member contributions to the 1 16 department of revenue and finance. The department of revenue 1 17 and finance shall forward the amount of the contributions 1 18 picked up to the board of trustees for recording and deposit 1 19 in the pension accumulation fund. 1 20 (2) Member contributions picked up by the department under 1 21 subparagraph (1) shall be treated as employer contributions 1 22 for federal and state income tax purposes only and for all 1 23 other purposes of this chapterand the laws of this state1 24 shall be treated as employee contributions and deemed part of 1 25 the employee's earnable compensation or salary. 1 26 Sec. 2. Section 97B.11A, Code 1997, is amended to read as 1 27 follows: 1 28 97B.11A PICKUP OF EMPLOYEE CONTRIBUTIONS. 1 29 1. Notwithstanding section 97B.11 or other provisions of 1 30 this chapter, beginning January 1, 1995, for federal income 1 31 tax purposes, and beginning January 1, 1998, for state income 1 32 tax purposes, member contributions required under section 1 33 97B.11 which are picked up by the employer shall be considered 1 34 employer contributions for federal and state income tax 1 35 purposes, and each employer shall pick up the member 2 1 contributions to be made under section 97B.11 by its 2 2 employees. Each employer shall pick up these contributions by 2 3 reducing the salary of each of its employees covered by this 2 4 chapter by the amount which each employee is required to 2 5 contribute under section 97B.11 and shall pay the amount 2 6 picked up in lieu of the member contributions as provided in 2 7 section 97B.14. 2 8 2. Member contributions picked up by each employer under 2 9 subsection 1 shall be treated as employer contributions for 2 10 federal and state income tax purposes only and for all other 2 11 purposes of this chapterand the laws of this stateshall be 2 12 treated as employee contributions and deemed part of the 2 13 employee's wages or salary. 2 14 Sec. 3. Section 97B.42, Code 1997, is amended by adding 2 15 the following new unnumbered paragraph: 2 16 NEW UNNUMBERED PARAGRAPH. Notwithstanding any other 2 17 provision of this section, a member who is a publicly elected 2 18 official of the state or any of its political subdivisions, 2 19 excluding a member of the general assembly of Iowa, whose 2 20 application for coverage under this chapter has been approved 2 21 by the department and who is a member of the system pursuant 2 22 to that coverage, but who, prior to or concurrent with the 2 23 member's service in the elective office, is a member of the 2 24 system pursuant to other covered employment, shall no longer 2 25 be an active member of the system for the elective office as 2 26 of the last day of the month preceding the member's first 2 27 month of entitlement for a retirement allowance pursuant to 2 28 the other covered employment. To be excluded from coverage, 2 29 the publicly elected official shall be serving in a part-time 2 30 elective office covered under the system. 2 31 Sec. 4. Section 294.10A, Code 1997, is amended to read as 2 32 follows: 2 33 294.10A PICKUP OF TEACHER ASSESSMENTS. 2 34 1. Notwithstanding section 294.9 or other provisions of 2 35 this chapter, for federal income tax purposes beginning 3 1 January 1 following the submission by a board of trustees of 3 2 an application to the federal internal revenue service 3 3 requesting qualification of a plan in accordance with the 3 4 requirements of the Internal Revenue Code, as defined in 3 5 section 422.3, and for state income tax purposes beginning 3 6 January 1, 1998, or January 1 following an application for 3 7 qualification, whichever is later, teacher assessments 3 8 required under section 294.9 which are picked up by an 3 9 employing school district shall be considered employer 3 10 contributions for federal and state income tax purposes, and 3 11 each employing school district establishing a pension and 3 12 annuity retirement system pursuant to this chapter shall pick 3 13 up the teacher assessments to be made under section 294.9 by 3 14 its employees commencing on theJanuary 1 following an3 15application for qualificationapplicable date under this 3 16 subsection. Each employing school district shall pick up 3 17 these teacher assessments by reducing the salary of each of 3 18 the teachers covered by this chapter by the amount which each 3 19 teacher is required to contribute through assessments under 3 20 section 294.9 and shall pay to the board of trustees the 3 21 amount picked up in lieu of the teacher assessments for 3 22 recording and deposit in the fund. 3 23 2. Teacher assessments picked up by each employing school 3 24 district under subsection 1 shall be treated as employer 3 25 contributions for federal and state income tax purposes only 3 26 and for all other purposes of this chapterand the laws of3 27this stateshall be treated as teacher assessments and deemed 3 28 part of the teacher's wages or salary. 3 29 Sec. 5. Section 411.8, subsection 1, paragraph i, Code 3 30 1997, is amended to read as follows: 3 31 i. (1) Notwithstanding paragraph "g" or other provisions 3 32 of this chapter, beginning January 1, 1995, for federal income 3 33 tax purposes, and beginning January 1, 1998, for state income 3 34 tax purposes, member contributions required under paragraph 3 35 "f" or "h" which are picked up by the city shall be considered 4 1 employer contributions for federal and state income tax 4 2 purposes, and each city shall pick up the member contributions 4 3 to be made under paragraph "f" or "h" by its employees. Each 4 4 city shall pick up these contributions by reducing the salary 4 5 of each of its employees covered by this chapter by the amount 4 6 which each employee is required to contribute under paragraph 4 7 "f" or "h" and shall pay the amount picked up in lieu of the 4 8 member contributions to the board of trustees for recording 4 9 and deposit in the fund. 4 10 (2) Member contributions picked up by each city under 4 11 subparagraph (1) shall be treated as employer contributions 4 12 for federal and state income tax purposes only and for all 4 13 other purposes of this chapterand the laws of this state4 14 shall be treated as employee contributions and deemed part of 4 15 the employee's earnable compensation or salary. 4 16 Sec. 6. Section 422.7, subsections 29 through 31, Code 4 17 1997, are amended by striking the subsections. 4 18 Sec. 7. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – 4 19 DIVIDEND ADJUSTMENT COMPUTATION. 4 20 1. For a retiree or beneficiary who received an increase 4 21 in the retiree's or beneficiary's monthly benefit effective 4 22 January 1, 1997, pursuant to section 97B.49, subsection 4, the 4 23 dividend adjustment used to calculate the dividend payable to 4 24 the retiree or beneficiary in November 1997, pursuant to 4 25 section 97B.49, subsection 13, paragraph "g", shall not be 4 26 calculated pursuant to that paragraph but shall be calculated 4 27 as provided in subsection 2. 4 28 2. The dividend adjustment for a retiree or beneficiary 4 29 described in subsection 1 shall be calculated by multiplying 4 30 the sum of the dividend payable to the retiree or beneficiary 4 31 in November 1996 and an amount representing twelve times the 4 32 total of the retiree's or beneficiary's monthly benefit 4 33 payments received by the retiree or beneficiary for January 4 34 1997 by the applicable percentage as determined by section 4 35 97B.49, subsection 13, paragraph "g". To the extent not 5 1 inconsistent with this subsection, the provisions of section 5 2 97B.49, subsection 13, paragraph "g", shall apply in 5 3 calculating the dividends payable in November 1997 to a 5 4 retiree or beneficiary described in subsection 1. 5 5 3. This section shall only apply to the calculation of 5 6 dividends for November 1997, and shall not apply to the 5 7 calculation of dividends for any subsequent year. 5 8 Sec. 8. EFFECTIVE AND APPLICABILITY DATE. Sections 1, 2, 5 9 4, 5, and 6 of this Act take effect January 1, 1998, and apply 5 10 to tax years beginning on or after January 1, 1998. 5 11 EXPLANATION 5 12 This bill provides that, beginning January 1, 1998, a 5 13 member's contribution under the public safety peace officers' 5 14 retirement, accident, and disability system, the Iowa public 5 15 employees' retirement system (IPERS), and the statewide fire 5 16 and police retirement system are considered employer 5 17 contributions, and not part of the employee's salary, for 5 18 state income tax purposes. Current law provides, as of 5 19 January 1, 1995, that these contributions for these systems 5 20 are considered employer contributions for federal income tax 5 21 purposes only. 5 22 The bill also provides that member contributions to a 5 23 pension and annuity retirement system for teachers established 5 24 pursuant to chapter 294 are considered employer contributions 5 25 for state income tax purposes, beginning January 1, 1998, or 5 26 on the January 1 following submission of an application for 5 27 qualification of the system to the internal revenue service, 5 28 whichever is later. 5 29 The provisions of this bill concerning pretax treatment of 5 30 contributions take effect January 1, 1998, and apply to tax 5 31 years beginning on or after that date. 5 32 This bill also provides that a part-time elected official 5 33 covered under IPERS who is also covered under IPERS for other 5 34 employment ceases to be an active member of IPERS as an 5 35 elected official on the last day of the month prior to the 6 1 member's first month of entitlement to a retirement allowance 6 2 pursuant to the other employment. 6 3 This bill provides that the dividends otherwise payable in 6 4 November 1997 for retirees or beneficiaries under IPERS who 6 5 received an increase in their monthly benefit in January 1997 6 6 based on the increase in the minimum monthly benefit shall be 6 7 calculated based on the monthly benefits they are entitled to 6 8 receive for this year and not on the total of the monthly 6 9 benefits they received during 1996. 6 10 LSB 2678SV 77 6 11 ec/sc/14
Text: SF00430 Text: SF00432 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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