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Bills and Amendments: General Index     Bill History: General Index



Senate File 2355

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 97.51, subsection 8, Code 1997, is
  1  2 amended to read as follows:
  1  3    8.  Effective July 1, 1980, a person receiving benefits, or
  1  4 who becomes eligible to receive benefits, on or after July 1,
  1  5 1980, under this chapter, shall receive the monthly increase
  1  6 in benefits provided in section 97B.49, subsection 11 97B.49G,
  1  7 subsection 3, paragraph "a".
  1  8    There is appropriated from the general fund of the state to
  1  9 the Iowa old-age and survivors' insurance liquidation fund
  1 10 from funds not otherwise appropriated an amount sufficient to
  1 11 finance the provisions of this subsection.
  1 12    Sec. 2.  Section 97B.41, subsection 21, Code 1997, is
  1 13 amended to read as follows:
  1 14    21.  "Special service" means service for an employer while
  1 15 employed in a protection occupation as provided in section
  1 16 97B.49, subsection 16, paragraph "a" 97B.49B, and as a county
  1 17 sheriff, deputy sheriff, or airport fire fighter as provided
  1 18 in section 97B.49, subsection 16, paragraph "b" 97B.49C.
  1 19    Sec. 3.  Section 97B.41, subsection 25, paragraph b,
  1 20 subparagraph (17), unnumbered paragraph 2, Code 1997, is
  1 21 amended to read as follows:
  1 22    Notwithstanding any other provision of this chapter
  1 23 providing for the payment of the benefits provided in section
  1 24 97B.49, subsection 16 or 17 97B.49B, 97B.49C, 97B.49D, or
  1 25 97B.49G, the department shall establish the covered wages
  1 26 limitation which applies to members covered under section
  1 27 97B.49, subsection 16 or 17 97B.49B, 97B.49C, 97B.49D, or
  1 28 97B.49G, at the same level as is established under this
  1 29 subparagraph for other members of the system.
  1 30    Sec. 4.  Section 97B.43, unnumbered paragraph 2, Code 1997,
  1 31 is amended to read as follows:
  1 32    Any person with a record of thirty years as a public
  1 33 employee in the state of Iowa prior to July 1, 1947, and who
  1 34 is not eligible for prior service credit under other
  1 35 provisions of this section, is entitled to a credit for years
  2  1 of prior service in the determination of the retirement
  2  2 allowance payment under this chapter, provided the public
  2  3 employee makes application to the department of personnel for
  2  4 credit for prior public service, accompanied by verification
  2  5 of the person's claim as the department may require.  The
  2  6 person's allowance for prior service credits shall be computed
  2  7 in the same manner as otherwise provided in this section, but
  2  8 shall not exceed the sum of four hundred fifty dollars nor be
  2  9 less than three hundred dollars per annum.  Any such person is
  2 10 entitled to receive retirement allowances computed as provided
  2 11 by this chapter, effective from the date of application to the
  2 12 department, provided such application is approved.  However,
  2 13 beginning July 1, 1975, the amount of such person's retirement
  2 14 allowance payment received during June 1975, as computed under
  2 15 this section shall be increased by two hundred percent and the
  2 16 allowance for prior service credits shall not exceed one
  2 17 thousand three hundred fifty dollars nor be less than nine
  2 18 hundred dollars per annum.  Effective July 1, 1987, there is
  2 19 appropriated for each fiscal year from the Iowa public
  2 20 employees' retirement fund created in section 97B.7 to the
  2 21 department of personnel an amount sufficient to fund the
  2 22 retirement allowance increases paid under this paragraph.
  2 23 Effective July 1, 1980, a person with a record of thirty years
  2 24 as a public employee in the state of Iowa prior to July 1,
  2 25 1947, receiving retirement allowances under this chapter shall
  2 26 receive the monthly increase in benefits provided in section
  2 27 97B.49, subsection 11 97B.49G, subsection 3, paragraph "a".
  2 28    Sec. 5.  Section 97B.45, subsection 2, Code 1997, is
  2 29 amended to read as follows:
  2 30    2.  The first of the month in which the member attains the
  2 31 age of sixty-two years if the member has completed thirty
  2 32 twenty years of membership service.
  2 33    Sec. 6.  Section 97B.45, subsection 4, unnumbered paragraph
  2 34 1, Code 1997, is amended to read as follows:
  2 35    (1)  The first of any month in which a member meets the
  3  1 membership service and age requirements to retire under
  3  2 section 97B.49, subsection 15 the member is at least fifty-
  3  3 five years of age and for which the sum of the number of years
  3  4 of membership service and prior service and the member's age
  3  5 in years as of the member's last birthday equals or exceeds
  3  6 eighty-five.
  3  7    (2)  The department shall implement this subsection on July
  3  8 1, 1998, or on the date that the department determines that
  3  9 the most recent annual actuarial valuation of the system
  3 10 indicates that the employer and employee contribution rates in
  3 11 effect under section 97B.11 can absorb the costs of this
  3 12 subsection, whichever is later.  However, until this
  3 13 subsection is implemented, the department shall not pay a
  3 14 dividend adjustment pursuant to section 97B.49F, subsection 1.
  3 15    Sec. 7.  Section 97B.46, subsection 3, Code 1997, is
  3 16 amended to read as follows:
  3 17    3.  A member remaining in service after attaining the age
  3 18 of seventy years is entitled to receive a retirement allowance
  3 19 under section 97B.49 sections 97B.49A through 97B.49H as
  3 20 applicable commencing with payment for the calendar month
  3 21 within which the written notice is submitted to the
  3 22 department, except that if the member fails to submit the
  3 23 notice on a timely basis, retroactive payments shall be made
  3 24 for no more than six months immediately preceding the month in
  3 25 which the written notice is submitted.
  3 26    Sec. 8.  Section 97B.48A, subsection 3, Code 1997, is
  3 27 amended to read as follows:
  3 28    3.  Upon a retirement after reemployment, a retired member
  3 29 may have the retired member's retirement allowance
  3 30 redetermined under this section or section 97B.49 or 97B.48,
  3 31 97B.49A through 97B.49H, 97B.50, or 97B.51, whichever is
  3 32 applicable, based upon the addition of credit for the years of
  3 33 membership service of the employee after reemployment, the
  3 34 covered wage during reemployment, and the age of the employee
  3 35 after reemployment.  The member shall receive a single
  4  1 retirement allowance calculated from both periods of
  4  2 membership service, one based on the initial retirement and
  4  3 one based on the second retirement following reemployment.  If
  4  4 the total years of membership service and prior service of a
  4  5 member who has been reemployed equals or exceeds thirty, the
  4  6 years of membership service on which the original retirement
  4  7 allowance was based may be reduced by a fraction of the years
  4  8 of service equal to the number of years by which the total
  4  9 years of membership service and prior service exceeds thirty
  4 10 divided by thirty, if this reduction in years of service will
  4 11 increase the total retirement allowance of the member.  The
  4 12 additional retirement allowance calculated for the period of
  4 13 reemployment shall be added to the retirement allowance
  4 14 calculated for the initial period of membership service and
  4 15 prior service, adjusted as provided in this subsection.  The
  4 16 retirement allowance calculated for the initial period of
  4 17 membership service and prior service shall not be adjusted for
  4 18 any other factor than years of service.  The retired member
  4 19 shall not receive a retirement allowance based upon more than
  4 20 a total of thirty years of service.
  4 21    Sec. 9.  NEW SECTION.  97B.49A  MONTHLY PAYMENTS OF
  4 22 ALLOWANCE – GENERAL CALCULATION.
  4 23    1.  DEFINITIONS.  For the purposes of this section:
  4 24    a.  "Applicable percentage" means sixty percent or, for
  4 25 each active or inactive vested member retiring on or after
  4 26 July 1, 1996, sixty percent plus, if applicable, an additional
  4 27 one-fourth of one percentage point for each additional
  4 28 calendar quarter of membership service beyond thirty years of
  4 29 service, not to exceed a total of five additional percentage
  4 30 points.
  4 31    b.  "Fraction of years of service" means a number, not to
  4 32 exceed one, equal to the sum of the years of membership
  4 33 service and the number of years of prior service divided by
  4 34 thirty years.
  4 35    2.  ENTITLEMENT TO MONTHLY ALLOWANCE.  Each member, upon
  5  1 retirement on or after the member's normal retirement date, is
  5  2 entitled to receive a monthly retirement allowance determined
  5  3 under this section.  For an inactive vested member, the
  5  4 monthly retirement allowance shall be determined on the basis
  5  5 of this section and section 97B.50 as they are in effect on
  5  6 the date of the member's retirement.
  5  7    3.  CALCULATION OF MONTHLY ALLOWANCE.  For each active or
  5  8 inactive vested member retiring on or after July 1, 1994, with
  5  9 four or more complete years of service, a monthly benefit
  5 10 shall be computed which is equal to one-twelfth of an amount
  5 11 equal to the applicable percentage of the three-year average
  5 12 coverage wage multiplied by a fraction of years of service.
  5 13 However, if benefits under this section commence on an early
  5 14 retirement date, the amount of benefit shall be reduced in
  5 15 accordance with section 97B.50.
  5 16    4.  ALTERNATIVE CALCULATIONS.
  5 17    a.  For each active member employed before January 1, 1976,
  5 18 and retiring on or after January 1, 1976, and for each member
  5 19 who was a vested member before January 1, 1976, with four or
  5 20 more complete years of service, a formula benefit shall be
  5 21 determined equal to the larger of the benefit determined under
  5 22 this paragraph and paragraph "b" of this subsection, as
  5 23 applicable, or the benefit determined under subsection 3.  The
  5 24 amount of the monthly formula benefit for each such active or
  5 25 vested member who retired on or after January 1, 1976, shall
  5 26 be equal to one-twelfth of one and fifty-seven hundredths
  5 27 percent per year of membership service multiplied by the
  5 28 member's average annual covered wages.  In no case shall the
  5 29 amount of monthly formula benefit accrued for membership
  5 30 service prior to July 1, 1967, be less than the monthly
  5 31 annuity at the normal retirement date determined by applying
  5 32 the sum of the member's accumulated contributions, the
  5 33 member's employer's accumulated contributions on or before
  5 34 June 30, 1967, and any retirement dividends standing to the
  5 35 member's credit on or before December 31, 1966, to the annuity
  6  1 tables in use by the department with due regard to the
  6  2 benefits payable from such accumulated contributions under
  6  3 sections 97B.52 and 97B.53.
  6  4    b.  For each member employed before January 1, 1976, who
  6  5 has qualified for prior service credit in accordance with the
  6  6 first paragraph of section 97B.43, a formula benefit shall be
  6  7 determined equal to the larger of the benefit determined under
  6  8 this paragraph, and paragraph "a" of this subsection, as
  6  9 applicable, or the benefit determined under subsection 3.  The
  6 10 amount of the monthly formula benefit under this paragraph
  6 11 shall be equal to eight-tenths of one percent per year of
  6 12 prior service credit multiplied by the monthly rate of the
  6 13 member's total remuneration not in excess of three thousand
  6 14 dollars annually during the twelve consecutive months of the
  6 15 member's prior service for which that total remuneration was
  6 16 the highest.  An additional three-tenths of one percent of the
  6 17 remuneration not in excess of three thousand dollars annually
  6 18 shall be payable for prior service during each year in which
  6 19 the accrued liability for benefit payments created by the
  6 20 abolished system is funded by appropriation from the Iowa
  6 21 public employees' retirement fund.
  6 22    c.  For each active and vested member retiring with less
  6 23 than four complete years of service and who therefore cannot
  6 24 have a benefit determined under the formula benefit of
  6 25 paragraphs "a" or "b" of this subsection, or subsection 3 of
  6 26 this section, a monthly annuity for membership service shall
  6 27 be determined by applying the member's accumulated
  6 28 contributions and the employer's matching accumulated
  6 29 contributions as of the effective retirement date and any
  6 30 retirement dividends standing to the member's credit on or
  6 31 before December 31, 1966, to the annuity tables in use by the
  6 32 department according to the member's age and contingent
  6 33 annuitant's age, if applicable.
  6 34    Sec. 10.  NEW SECTION.  97B.49B  PROTECTION OCCUPATION.
  6 35    1.  DEFINITIONS.  For purposes of this section:
  7  1    a.  "Applicable percentage" means sixty percent or, for
  7  2 each active or inactive vested member retiring on or after
  7  3 July 1, 1996, sixty percent plus, if applicable, an additional
  7  4 one-fourth of one percentage point for each additional
  7  5 calendar quarter of membership service beyond twenty-five
  7  6 years of service, not to exceed a total of five additional
  7  7 percentage points.
  7  8    b.  "Fraction of years of service" means a number, not to
  7  9 exceed one, equal to the sum of the years of membership
  7 10 service in a protection occupation divided by twenty-five
  7 11 years.
  7 12    c.  "Protection occupation" includes all of the following:
  7 13    (1)  A conservation peace officer employed under section
  7 14 456A.13.
  7 15    (2)  A marshal in a city not covered under chapter 400 or a
  7 16 fire fighter or police officer of a city not participating in
  7 17 the retirement systems established in chapter 410 or 411.
  7 18    (3)  A correctional officer or correctional supervisor
  7 19 employed by the Iowa department of corrections, and any other
  7 20 employee of that department whose primary purpose is, through
  7 21 ongoing direct inmate contact, to enforce and maintain
  7 22 discipline, safety, and security within a correctional
  7 23 facility.
  7 24    (4)  An airport safety officer employed under chapter 400
  7 25 by an airport commission in a city of one hundred thousand
  7 26 population or more.
  7 27    (5)  An employee of the state department of transportation
  7 28 who is designated as a "peace officer" by resolution under
  7 29 section 321.477, but only if the employee retires on or after
  7 30 July 1, 1990.  For purposes of this subparagraph, service as a
  7 31 traffic weight officer employed by the highway commission
  7 32 prior to the creation of the state department of
  7 33 transportation or as a peace officer employed by the Iowa
  7 34 state commerce commission prior to the creation of the state
  7 35 department of transportation shall be included in computing
  8  1 the employee's years of membership service.
  8  2    (6)  A fire prevention inspector peace officer employed by
  8  3 the department of public safety prior to July 1, 1994, who
  8  4 does not elect coverage under the Iowa department of public
  8  5 safety peace officers' retirement, accident, and disability
  8  6 system, as provided in section 97B.42B.
  8  7    (7)  An employee of a judicial district department of
  8  8 correctional services who is employed as a probation officer
  8  9 III or a parole officer III.
  8 10    (8)  A sheriff, deputy sheriff, or airport firefighter as
  8 11 defined in section 97B.49C who does not receive a monthly
  8 12 retirement allowance pursuant to section 97B.49C for this
  8 13 service.
  8 14    2.  CALCULATION OF MONTHLY ALLOWANCE.  Notwithstanding
  8 15 other provisions of this chapter, a member who is or has been
  8 16 employed in a protection occupation who retires on or after
  8 17 July 1, 1994, and at the time of retirement is at least fifty-
  8 18 five years of age may elect to receive, in lieu of the receipt
  8 19 of any benefits as calculated pursuant to section 97B.49A or
  8 20 97B.49D, a monthly retirement allowance equal to one-twelfth
  8 21 of an amount equal to the applicable percentage of the three-
  8 22 year average covered wage as a member who has been employed in
  8 23 a protection occupation multiplied by a fraction of years of
  8 24 service, with benefits payable during the member's lifetime.
  8 25    3.  ADDITIONAL CONTRIBUTIONS.
  8 26    a.  Annually, the department of personnel shall actuarially
  8 27 determine the cost of the additional benefits provided for
  8 28 members covered under this section as a percentage of the
  8 29 covered wages of the employees covered by this section.  Sixty
  8 30 percent of the cost shall be paid by the employers of
  8 31 employees covered under this section and forty percent of the
  8 32 cost shall be paid by the employees.  The employer and
  8 33 employee contributions required under this paragraph are in
  8 34 addition to the contributions paid under sections 97B.11 and
  8 35 97B.11A.
  9  1    b.  (1)  For the fiscal year commencing July 1, 1988, and
  9  2 each succeeding fiscal year, there is appropriated from the
  9  3 state fish and game protection fund to the department of
  9  4 personnel the amount necessary to pay the employer share of
  9  5 the cost of the additional benefits provided to employees
  9  6 covered under subsection 1, paragraph "c", subparagraph (1).
  9  7    (2)  Annually, during each fiscal year commencing with the
  9  8 fiscal year beginning July 1, 1988, each applicable city shall
  9  9 pay to the department of personnel the amount necessary to pay
  9 10 the employer share of the cost of the additional benefits
  9 11 provided to employees of that city covered under subsection 1,
  9 12 paragraph "c", subparagraphs (2) and (4).
  9 13    (3)  For the fiscal year commencing July 1, 1988, and each
  9 14 succeeding fiscal year, the department of corrections shall
  9 15 pay to the department of personnel from funds appropriated to
  9 16 the Iowa department of corrections, the amount necessary to
  9 17 pay the employer share of the cost of the additional benefits
  9 18 provided to employees covered under subsection 1, paragraph
  9 19 "c", subparagraph (3).
  9 20    (4)  For the fiscal year commencing July 1, 1990, and each
  9 21 succeeding fiscal year, the state department of transportation
  9 22 shall pay to the department of personnel, from funds
  9 23 appropriated to the state department of transportation from
  9 24 the road use tax fund and the primary road fund, the amount
  9 25 necessary to pay the employer share of the cost of the
  9 26 additional benefits provided to employees covered under
  9 27 subsection 1, paragraph "c", subparagraph (5).
  9 28    (5)  For the fiscal year commencing July 1, 1992, and each
  9 29 succeeding fiscal year, the department of public safety shall
  9 30 pay to the department of personnel from funds appropriated to
  9 31 the department of public safety, the amount necessary to pay
  9 32 the employer share of the cost of the additional benefits
  9 33 provided to a fire prevention inspector peace officer pursuant
  9 34 to subsection 1, paragraph "c", subparagraph (6).
  9 35    (6)  For the fiscal year commencing July 1, 1994, and each
 10  1 succeeding fiscal year, each judicial district department of
 10  2 correctional services shall pay to the department of personnel
 10  3 from funds appropriated to that judicial district department
 10  4 of correctional services, the amount necessary to pay the
 10  5 employer share of the cost of the additional benefits provided
 10  6 to employees covered under subsection 1, paragraph "c",
 10  7 subparagraph (7).
 10  8    Sec. 11.  NEW SECTION.  97B.49C  SHERIFFS, DEPUTY SHERIFFS,
 10  9 AND AIRPORT FIRE FIGHTERS.
 10 10    1.  DEFINITIONS.  For purposes of this section:
 10 11    a.  "Airport fire fighter" means an airport fire fighter
 10 12 employed by the military division of the department of public
 10 13 defense.
 10 14    b.  "Applicable percentage" means sixty percent plus, if
 10 15 applicable, an additional three-eighths of one percentage
 10 16 point for each additional calendar quarter of eligible service
 10 17 beyond twenty years of service, not to exceed a total of
 10 18 twelve additional percentage points.
 10 19    c.  "Deputy sheriff" means a deputy sheriff appointed
 10 20 pursuant to section 341.1 prior to July 1, 1981, or section
 10 21 331.903 on or after July 1, 1981.
 10 22    d.  "Eligible service" means service as an airport fire
 10 23 fighter, sheriff, and deputy sheriff under this section.  In
 10 24 addition, eligible service includes membership service as an
 10 25 airport fire fighter prior to July 1, 1994.
 10 26    e.  "Fraction of years of service" means a number, not to
 10 27 exceed one, equal to the sum of the years of eligible service
 10 28 under this section divided by twenty years.
 10 29    f.  "Sheriff" means a county sheriff as defined in section
 10 30 39.17.
 10 31    2.  CALCULATION OF MONTHLY ALLOWANCE.  Notwithstanding
 10 32 other provisions of this chapter, a member who retires from
 10 33 employment as a sheriff, deputy sheriff, or airport fire
 10 34 fighter on or after July 1, 1998, and at the time of
 10 35 retirement is at least fifty-five years of age, or at least
 11  1 fifty-two years of age with twenty or more years of eligible
 11  2 service, may elect to receive, in lieu of the receipt of any
 11  3 benefits as calculated pursuant to section 97B.49A or 97B.49D,
 11  4 a monthly retirement allowance equal to one-twelfth of an
 11  5 amount equal to the applicable percentage of the three-year
 11  6 average covered wage as a member who has been employed in
 11  7 eligible service multiplied by a fraction of years of service,
 11  8 with benefits payable during the member's lifetime.
 11  9    3.  ADDITIONAL CONTRIBUTIONS.
 11 10    a.  Annually, the department of personnel shall actuarially
 11 11 determine the cost of the additional benefits provided for
 11 12 members covered under this section as a percentage of the
 11 13 covered wages of the employees covered by this section.  Sixty
 11 14 percent of the cost shall be paid by the employers of
 11 15 employees covered under this section and forty percent of the
 11 16 cost shall be paid by the employees.  The employer and
 11 17 employee contributions required under this paragraph are in
 11 18 addition to the contributions paid under sections 97B.11 and
 11 19 97B.11A.  However, the cost of including service as an airport
 11 20 fire fighter prior to July 1, 1994, as eligible service under
 11 21 this section shall not affect the contribution rates
 11 22 calculated and paid by the member or the employer under this
 11 23 section.
 11 24    b.  (1)  Annually, during each fiscal year commencing with
 11 25 the fiscal year beginning July 1, 1988, each county shall pay
 11 26 to the department of personnel the amount necessary to pay the
 11 27 employer share of the cost of the additional benefits provided
 11 28 to sheriffs and deputy sheriffs.
 11 29    (2)  For the fiscal year commencing July 1, 1994, and each
 11 30 succeeding fiscal year, there is appropriated from the general
 11 31 fund of the state to the department of personnel, from funds
 11 32 not otherwise appropriated, an amount necessary to pay the
 11 33 employer share of the cost of the additional benefits provided
 11 34 to airport fire fighters under this section.
 11 35    Sec. 12.  NEW SECTION.  97B.49D  HYBRID FORMULA.
 12  1    1.  An active or inactive vested member, who is or has been
 12  2 employed in both special service and regular service, who
 12  3 retires on or after July 1, 1996, with four or more completed
 12  4 years of service and at the time of retirement is at least
 12  5 fifty-five years of age, may elect to receive, in lieu of the
 12  6 receipt of a monthly retirement allowance as calculated
 12  7 pursuant to sections 97B.49A through 97B.49C, a combined
 12  8 monthly retirement allowance equal to the sum of the
 12  9 following:
 12 10    a.  One-twelfth of an amount equal to the applicable
 12 11 percentage of the member's three-year average covered wage
 12 12 multiplied by a fraction of years of service.  The fraction of
 12 13 years of service for purposes of this paragraph shall be the
 12 14 actual years of service, not to exceed thirty, for which
 12 15 regular service contributions were made, divided by thirty.
 12 16 However, any otherwise applicable age reduction for early
 12 17 retirement shall apply to the calculation under this
 12 18 paragraph.
 12 19    b.  One-twelfth of an amount equal to the applicable
 12 20 percentage of the member's three-year average covered wage
 12 21 multiplied by a fraction of years of service.  The fraction of
 12 22 years of service for purposes of this paragraph shall be the
 12 23 actual years of service, not to exceed twenty-five, earned in
 12 24 a position described in section 97B.49B, for which special
 12 25 service contributions were made, divided by twenty-five.  In
 12 26 calculating the fractions of years of service under the
 12 27 paragraph, a member shall not receive special service credit
 12 28 for years of service for which the member and the member's
 12 29 employer did not make the required special service
 12 30 contributions to the department.
 12 31    c.  One-twelfth of an amount equal to the applicable
 12 32 percentage of the member's three-year average covered wage
 12 33 multiplied by a fraction of years of service.  The fraction of
 12 34 years of service for purposes of this paragraph shall be the
 12 35 actual years of service, not to exceed twenty, earned in a
 13  1 position described in section 97B.49C, for which special
 13  2 service contributions were made, divided by twenty.  In
 13  3 calculating the fractions of years of service under this
 13  4 paragraph, a member shall not receive special service credit
 13  5 for years of service for which the member and the member's
 13  6 employer did not make the required special service
 13  7 contributions to the department.
 13  8    2.  In calculating the combined monthly retirement
 13  9 allowance pursuant to subsection 1, the sum of the fraction of
 13 10 years of service provided in subsection 1, paragraphs "a",
 13 11 "b", and "c", shall not exceed one.  If the sum of the
 13 12 fractions of years of service would exceed one, the department
 13 13 shall deduct years of service first from the calculation under
 13 14 subsection 1, paragraph "a", and then from the calculation
 13 15 under subsection 1, paragraph "b", if necessary, so that the
 13 16 sum of the fractions of years of service shall equal one.
 13 17    3.  In calculating the combined monthly retirement
 13 18 allowance pursuant to subsection 1, the applicable percentage
 13 19 shall be sixty percent plus, if applicable, an additional one-
 13 20 fourth of one percentage point for each additional calendar
 13 21 quarter of membership service in service as described in
 13 22 subsection 1, paragraph "a", "b", or "c", beyond thirty years
 13 23 of service, not to exceed a total of five additional
 13 24 percentage points.  Any addition in the percentage multiplier
 13 25 shall be included in the calculations required under this
 13 26 section.
 13 27    Sec. 13.  NEW SECTION.  97B.49E  MINIMUM BENEFITS.
 13 28    1.  For each active member retiring on or after June 30,
 13 29 1973, and who has completed ten or more years of membership
 13 30 service, the total amount of monthly benefit payable at the
 13 31 normal retirement date for prior service and membership
 13 32 service shall not be less than fifty dollars per month.  If
 13 33 benefits commence on an early retirement date, the amount of
 13 34 benefit shall be reduced in accordance with section 97B.50.
 13 35 If an optional allowance is selected under section 97B.51, the
 14  1 amount payable shall be the actuarial equivalent of the
 14  2 minimum benefit.  An employee, who is in employment on a
 14  3 school-year or academic-year basis, will be considered to be
 14  4 an active member as of June 30, 1973, if the employee
 14  5 completes the 1972-1973 school year or academic year.
 14  6    2.  Effective January 1, 1997, for members who retired on
 14  7 or after July 1, 1953, and before July 1, 1990, with at least
 14  8 ten years of prior and membership service, the minimum monthly
 14  9 benefit payable at the normal retirement date for prior and
 14 10 membership service shall be two hundred dollars.  The minimum
 14 11 monthly benefit payable shall be increased by ten dollars for
 14 12 each year of prior and membership service beyond ten years, up
 14 13 to a maximum of twenty additional years of prior and
 14 14 membership service.  If benefits commenced on an early
 14 15 retirement date, the amount of the benefit shall be reduced in
 14 16 accordance with section 97B.50.  If an optional allowance was
 14 17 selected under section 97B.51, the amount payable shall be the
 14 18 actuarial equivalent of the minimum benefit.
 14 19    Sec. 14.  NEW SECTION.  97B.49F  RETIREMENT DIVIDENDS.
 14 20    1.  COST-OF-LIVING DIVIDEND.
 14 21    a.  Effective July 1, 1997, commencing with dividends
 14 22 payable in November 1997, and for each subsequent year, all
 14 23 members who retired prior to July 1, 1990, and all
 14 24 beneficiaries and contingent annuitants of such members, shall
 14 25 be eligible for annual dividend payments, payable in November
 14 26 of that year, pursuant to the requirements of this subsection.
 14 27 The dividend payable in any given year shall be the sum of the
 14 28 dollar amount of the dividend payable in the previous November
 14 29 and the dividend adjustment.  A dividend determined pursuant
 14 30 to this subsection shall not be used to increase the monthly
 14 31 benefit amount payable.  In no event shall the dividend
 14 32 payable be less than twenty-five dollars.
 14 33    b.  (1)  The dividend adjustment for a given year shall be
 14 34 calculated by multiplying the total of the retiree's,
 14 35 beneficiary's, or contingent annuitant's monthly benefit
 15  1 payments and the dividend payable to the retiree, beneficiary,
 15  2 or contingent annuitant, in the previous calendar year by the
 15  3 applicable percentage as determined by this paragraph.
 15  4    (2)  The applicable percentage shall be the least of the
 15  5 following percentages:
 15  6    (a)  The percentage representing the percentage increase in
 15  7 the consumer price index published in the federal register by
 15  8 the federal department of labor, bureau of labor statistics,
 15  9 that reflects the percentage increase in the consumer price
 15 10 index for the twelve-month period ending June 30 of the year
 15 11 that the dividend is to be paid.
 15 12    (b)  The percentage representing the percentage amount the
 15 13 actuary has certified, in the annual actuarial valuation of
 15 14 the system as of June 30 of the year in which the dividend is
 15 15 to be paid, that the fund can absorb without requiring an
 15 16 increase in the employer and employee contributions to the
 15 17 fund.
 15 18    (c)  Three percent.
 15 19    c.  If the member dies on or after July 1 of the dividend
 15 20 year but before the payment date, the full amount of the
 15 21 retirement dividend for that year shall be paid to the
 15 22 member's account, upon notification of the member's death.
 15 23    2. FAVORABLE EXPERIENCE DIVIDEND.
 15 24    a.  Commencing January 1, 1999, all members who retired on
 15 25 or after July 1, 1990, and who have been retired for at least
 15 26 one year as of the date the dividend is payable, or a
 15 27 beneficiary or contingent annuitant of such a member, shall be
 15 28 eligible to receive a favorable experience dividend, payable
 15 29 on the last business day in January of each year pursuant to
 15 30 the requirements of this subsection.
 15 31    b.  A favorable experience dividend reserve account,
 15 32 hereafter called the "reserve account", is established within
 15 33 the retirement fund.  Moneys credited to the reserve account
 15 34 shall be used by the department for the purpose of providing a
 15 35 favorable experience dividend pursuant to this subsection.
 16  1    c.  Moneys shall be credited to the reserve account in the
 16  2 retirement fund as follows:
 16  3    (1)  On or before January 15, 1999, there shall be credited
 16  4 to the reserve account an amount that the system's actuary
 16  5 determines is sufficient to pay the maximum favorable
 16  6 experience dividend for each of the next following five years.
 16  7    (2)  Beginning with the annual actuarial valuation of the
 16  8 system as of June 30, 1997, and for each annual actuarial
 16  9 valuation of the system thereafter, there shall be credited to
 16 10 the reserve account on or before each applicable January 15
 16 11 following an actuarial valuation, an amount that represents
 16 12 that portion of the favorable actuarial experience, if any,
 16 13 that the system's actuary determines shall be credited to the
 16 14 reserve account pursuant to rules adopted by the department.
 16 15 The rules shall provide that the portion of the favorable
 16 16 experience dividend, if any, that is not initially credited to
 16 17 the reserve account, but which, if applied to the retirement
 16 18 fund, would result in the actuarial valuation of assets
 16 19 exceeding the actuarial accrued liability of the system based
 16 20 on the most recent annual actuarial valuation of the system,
 16 21 shall be credited to the reserve account.
 16 22    (3)  As used in this paragraph, "favorable actuarial
 16 23 experience" means the difference, if positive, between the
 16 24 anticipated and actual experience of the system's actuarial
 16 25 assets and liabilities as measured by the system's actuary
 16 26 pursuant to rules adopted by the department in the most recent
 16 27 annual actuarial valuation of the system.
 16 28    d.  The favorable experience dividend is calculated by
 16 29 multiplying the total of the monthly benefit payments of the
 16 30 retiree, beneficiary, or contingent annuitant for a year, by
 16 31 the number of complete years the member has been retired, or
 16 32 would have been retired, if living as of the date the dividend
 16 33 is payable, and by the applicable percentage.  For purposes of
 16 34 this paragraph, the applicable percentage is the percentage,
 16 35 not to exceed three percent, that the department determines
 17  1 shall be applied in calculating the favorable experience
 17  2 dividend if the department determines that the reserve account
 17  3 is sufficiently funded to make a distribution.  In making its
 17  4 determination, the department shall consider the amounts
 17  5 credited to the reserve account, the distributions from the
 17  6 reserve account made in previous years, the likelihood of
 17  7 future distributions from the reserve account, and the
 17  8 distributions paid under subsection 1.
 17  9    Sec. 15.  NEW SECTION.  97B.49G  MONTHLY PAYMENTS OF
 17 10 ALLOWANCE – MISCELLANEOUS PROVISIONS.
 17 11    1.  MONTHLY PAYMENTS OF ALLOWANCE – PERCENTAGE MULTIPLIER.
 17 12    a.  For each active or inactive vested member retiring on
 17 13 or after July 1, 1986, and before July 1, 1994, with four or
 17 14 more complete years of service, a monthly benefit shall be
 17 15 computed which is equal to one-twelfth of an amount equal to
 17 16 the applicable percentage multiplier of the three-year average
 17 17 covered wage multiplied by a fraction of years of service.
 17 18    b.  The applicable percentage multiplier for purposes of
 17 19 this subsection shall be the following:
 17 20    (1)  For active or inactive vested members retiring on or
 17 21 after July 1, 1986, but before July 1, 1990, fifty percent.
 17 22    (2)  For active or inactive vested members retiring on or
 17 23 after July 1, 1990, but before July 1, 1991, fifty-two
 17 24 percent.
 17 25    (3)  For active or inactive vested members retiring on or
 17 26 after July 1, 1991, but before July 1, 1992, fifty-four
 17 27 percent.
 17 28    (4)  For active or inactive vested members retiring on or
 17 29 after July 1, 1992, but before July 1, 1993, fifty-six
 17 30 percent.
 17 31    (5)  For active or inactive vested members retiring on or
 17 32 after July 1, 1993, but before July 1, 1994, fifty-seven and
 17 33 four-tenths percent.
 17 34    (6)  For active or inactive vested members retiring on or
 17 35 after July 1, 1994, sixty percent.
 18  1    c.  For purposes of this subsection, "fraction of years of
 18  2 service" means a number, not to exceed one, equal to the sum
 18  3 of the years of membership service and the number of years of
 18  4 prior service divided by thirty years.
 18  5    2.  EXTRA PAYMENTS ON ALLOWANCE - PRE-1976 RETIREES.
 18  6    a.  On January 1, 1976, for each member who retired before
 18  7 January 1, 1976, the amount of regular monthly retirement
 18  8 allowance attributable to membership service and prior service
 18  9 that was payable to the member for December 1975 is increased
 18 10 by ten percent for the first calendar year or portion of a
 18 11 calendar year the member was retired, and by an additional
 18 12 five percent for each calendar year after the first calendar
 18 13 year the member was retired through the calendar year
 18 14 beginning January 1, 1975.  The total increase shall not
 18 15 exceed one hundred percent.  Effective July 1, 1987, there is
 18 16 appropriated for each fiscal year from the Iowa public
 18 17 employees' retirement fund created in section 97B.7 to the
 18 18 department of personnel from funds not otherwise appropriated
 18 19 an amount sufficient to fund the monthly retirement allowance
 18 20 increases paid under this subsection.
 18 21    The benefit increases granted to members retired under the
 18 22 system on January 1, 1976, shall be granted only on January 1,
 18 23 1976, and shall not be further increased for any year in which
 18 24 the member was retired after the calendar year beginning
 18 25 January 1, 1975.
 18 26    b.  Effective July 1, 1978, for each member who retired
 18 27 from the system prior to January 1, 1976, the amount of
 18 28 regular monthly retirement allowance attributable to
 18 29 membership service and prior service that was payable to the
 18 30 member for June 1978 is increased as follows:
 18 31    (1)  For the first ten years of service, fifty cents per
 18 32 month for each complete year of service.
 18 33    (2)  For the eleventh through the twentieth years of
 18 34 service, two dollars per month for each complete year of
 18 35 service.
 19  1    (3)  For the twenty-first through the thirtieth years of
 19  2 service, three dollars per month for each complete year of
 19  3 service.
 19  4    Effective July 1, 1979, the increases granted to members
 19  5 under this paragraph shall be paid to contingent annuitants
 19  6 and to beneficiaries.
 19  7    3.  EXTRA PAYMENTS ON ALLOWANCE.
 19  8    a.  Effective July 1, 1980, for each member who retired
 19  9 from the system prior to January 1, 1976, and for each member
 19 10 who retired from the system on or after January 1, 1976, under
 19 11 subsection 1 of this section, the amount of regular monthly
 19 12 retirement allowance attributable to membership service and
 19 13 prior service that was payable to the member for June 1980 is
 19 14 increased as follows:
 19 15    (1)  For the first ten years of service, fifty cents per
 19 16 month for each complete year of service.
 19 17    (2)  For the eleventh through the twentieth years of
 19 18 service, one dollar per month for each complete year of
 19 19 service.
 19 20    (3)  For the twenty-first through the thirtieth years of
 19 21 service, one dollar and fifty cents per month for each
 19 22 complete year of service.
 19 23    (4)  The amount of monthly increase payable to a member
 19 24 under this paragraph is also payable to a beneficiary and a
 19 25 contingent annuitant and shall be reduced by an amount based
 19 26 upon the actuarial equivalent of the option selected in
 19 27 section 97B.51 or section 97B.52 compared to the full monthly
 19 28 benefit provided in this section.
 19 29    However, effective July 1, 1980, the monthly retirement
 19 30 allowance attributable to membership service and prior service
 19 31 of a member, contingent annuitant, and beneficiary shall not
 19 32 be less than five dollars times the number of complete years
 19 33 of service of the member, not to exceed thirty, reduced by an
 19 34 amount based upon the actuarial equivalent of the option
 19 35 selected in section 97B.51 or section 97B.52, compared to the
 20  1 full monthly retirement benefit provided in this section.
 20  2    b.  Effective beginning July 1, 1982, for each member who
 20  3 retired from the system prior to January 1, 1976, and for each
 20  4 member who retired from the system on or after January 1,
 20  5 1976, under subsection 1 of this section, the amount of
 20  6 regular monthly retirement allowance attributable to
 20  7 membership service and prior service that was payable to the
 20  8 member for June 1982 is increased as follows:
 20  9    (1)  For the first ten years of service, fifty cents per
 20 10 month for each complete year of service.
 20 11    (2)  For the eleventh through the twentieth years of
 20 12 service, one dollar per month for each complete year of
 20 13 service.
 20 14    (3)  For the twenty-first through the thirtieth years of
 20 15 service, one dollar and fifty cents per month for each
 20 16 complete year of service.
 20 17    (4)  The amount of monthly increase payable to a member
 20 18 under this paragraph is also payable to a beneficiary and a
 20 19 contingent annuitant and shall be reduced by an amount based
 20 20 upon the actuarial equivalent of the option selected in
 20 21 section 97B.51 or section 97B.52 compared to the full monthly
 20 22 benefit provided in this section.
 20 23    4.  NORMAL RETIREMENT DATES.  A retired member shall be
 20 24 deemed to have retired on the member's normal retirement date,
 20 25 and retirement benefits calculated shall not be reduced
 20 26 pursuant to section 97B.50, if the member meets any of the
 20 27 following requirements:
 20 28    a.  The member is an active or inactive vested member
 20 29 retiring on or after July 1, 1988, and before July 1, 1990,
 20 30 who is at least fifty-five years of age and has completed at
 20 31 least thirty years of membership service and prior service,
 20 32 and for which the sum of the number of years of membership
 20 33 service and prior service and the member's age in years as of
 20 34 the member's last birthday equals or exceeds ninety-two.
 20 35    b.  The member is an active or inactive vested member
 21  1 retiring on or after July 1, 1990, and before July 1, 1996,
 21  2 who is at least fifty-five years of age and for which the sum
 21  3 of the number of years of membership service and prior service
 21  4 and the member's age in years as of the member's last birthday
 21  5 equals or exceeds ninety-two.
 21  6    c.  The member is an active or inactive vested member
 21  7 retiring on or after July 1, 1996, and before July 1, 1997,
 21  8 who is at least fifty-five years of age and for which the sum
 21  9 of the number of years of membership service and prior service
 21 10 and the member's age in years as of the member's last birthday
 21 11 equals or exceeds ninety.
 21 12    d.  The member is an active or inactive vested member
 21 13 retiring on or after July 1, 1997, and before the
 21 14 implementation date provided in section 97B.45, subsection 4,
 21 15 subparagraph (2), who is at least fifty-five years of age and
 21 16 for which the sum of the number of years of membership service
 21 17 and prior service and the member's age in years as of the
 21 18 member's last birthday equals or exceeds eighty-eight.
 21 19    5.  DIVIDENDS – NOVEMBER 1996.
 21 20    a.  Each member who retired from the system between July 4,
 21 21 1953, and December 31, 1975, or a contingent annuitant or
 21 22 beneficiary of such a member, shall receive with the November
 21 23 1996 monthly benefit payment a retirement dividend equal to
 21 24 two hundred ninety-two percent of the monthly benefit payment
 21 25 the member received for the preceding June, or the most
 21 26 recently received benefit payment, whichever is greater.  The
 21 27 retirement dividend does not affect the amount of a monthly
 21 28 benefit payment.
 21 29    b.  A member who retired from the system between January 1,
 21 30 1976, and June 30, 1982, or a contingent annuitant or
 21 31 beneficiary of such a member, shall receive with the November
 21 32 1996 monthly benefit payment a retirement dividend equal to
 21 33 two hundred twenty-three percent of the monthly benefit
 21 34 payment the member received for the preceding June, or the
 21 35 most recently received benefit payment, whichever is greater.
 22  1 The retirement dividend does not affect the amount of a
 22  2 monthly benefit payment.
 22  3    c.  A member who retired from the system between July 1,
 22  4 1982, and June 30, 1986, or a contingent annuitant or
 22  5 beneficiary of such a member, shall receive with the November
 22  6 1996 monthly benefit payment a retirement dividend equal to
 22  7 seventy-four percent of the monthly benefit payment the member
 22  8 received for the preceding June, or the most recently received
 22  9 benefit payment, whichever is greater.  The retirement
 22 10 dividend does not affect the amount of a monthly benefit
 22 11 payment.
 22 12    d.  A member who retired from the system between July 1,
 22 13 1986, and June 30, 1990, or a contingent annuitant or
 22 14 beneficiary of such a member, shall receive with the November
 22 15 1996 monthly benefit payment a retirement dividend equal to
 22 16 twenty-four percent of the monthly benefit payment the member
 22 17 received for the preceding June, or the most recently received
 22 18 benefit payment, whichever is greater.  The retirement
 22 19 dividend does not affect the amount of a monthly benefit
 22 20 payment.
 22 21    e.  Notwithstanding the determination of the amount of a
 22 22 retirement dividend under this subsection, a retirement
 22 23 dividend shall not be less than twenty-five dollars.
 22 24    6.  CONSERVATION PEACE OFFICER – JULY 1986 - JULY 1988.
 22 25    a.  Notwithstanding other provisions of this chapter, a
 22 26 member who is or has been employed as a conservation peace
 22 27 officer under section 456A.13 and who retires on or after July
 22 28 1, 1986, and before July 1, 1988, and at the time of
 22 29 retirement is at least sixty years of age and has completed at
 22 30 least twenty-five years of membership service as a
 22 31 conservation peace officer, may elect to receive, in lieu of
 22 32 the receipt of any benefits under subsection 1 of this
 22 33 section, a monthly retirement allowance equal to one-twelfth
 22 34 of fifty percent of the member's three-year average covered
 22 35 wage as a conservation peace officer, with benefits payable
 23  1 during the member's lifetime.
 23  2    b.  A conservation peace officer who retires on or after
 23  3 July 1, 1986, and before July 1, 1988, and has not completed
 23  4 twenty-five years of membership service as required under this
 23  5 subsection is eligible to receive a monthly retirement
 23  6 allowance equal to one-twelfth of fifty percent of the
 23  7 member's three-year average covered wage as a conservation
 23  8 peace officer multiplied by a fraction of years of service as
 23  9 a conservation peace officer.  For the purpose of this
 23 10 subsection, "fraction of years of service" means a number, not
 23 11 to exceed one, equal to the sum of the years of membership
 23 12 service as a conservation peace officer, divided by twenty-
 23 13 five years.  On or after July 1, 1986, but before July 1,
 23 14 1988, if the conservation peace officer has not reached sixty
 23 15 years of age at retirement, the monthly retirement allowance
 23 16 shall be reduced by five-tenths of one percent per month for
 23 17 each month that the conservation peace officer's retirement
 23 18 precedes the date on which the conservation peace officer
 23 19 attains sixty years of age.
 23 20    The annual contribution necessary to pay for the additional
 23 21 benefits provided in this paragraph shall be paid by the
 23 22 employer and employee in the same proportion that employer and
 23 23 employee contributions are made under section 97B.11.
 23 24    c.  There is appropriated from the state fish and game
 23 25 protection fund to the department of personnel an actuarially
 23 26 determined amount determined by the Iowa public employees'
 23 27 retirement system sufficient to pay for the additional
 23 28 benefits to conservation peace officers provided by this
 23 29 subsection, as a percentage, in paragraph "a" and for the
 23 30 employer portion of the benefits provided in paragraph "b".
 23 31 The amount is in addition to the contribution paid by the
 23 32 employer under section 97B.11.  The cost of the benefits
 23 33 relating to conservation peace officers within the fish and
 23 34 game division of the department of natural resources shall be
 23 35 paid from the state fish and game protection fund and the cost
 24  1 of the benefits relating to the other conservation peace
 24  2 officers of the department shall be paid from the general
 24  3 fund.
 24  4    7.  PEACE OFFICER – JULY 1986 - JULY 1988.
 24  5    a.  Notwithstanding other provisions of this chapter, a
 24  6 member who is or has been employed as a peace officer and who
 24  7 retires on or after July 1, 1986, and before July 1, 1988, and
 24  8 at the time of retirement is at least sixty years of age and
 24  9 has completed at least twenty-five years of membership service
 24 10 as a peace officer, may elect to receive, in lieu of the
 24 11 benefits under subsection 1 of this section, a monthly
 24 12 retirement allowance equal to one-twelfth of fifty percent of
 24 13 the member's three-year average covered wage as a peace
 24 14 officer, with benefits payable during the member's lifetime.
 24 15    A peace officer who retires on or after July 1, 1986, and
 24 16 before July 1, 1988, and has not completed twenty-five years
 24 17 of membership service as required under this subsection is
 24 18 eligible to receive a monthly retirement allowance equal to
 24 19 one-twelfth of fifty percent of the member's three-year
 24 20 average covered wage as a peace officer multiplied by the
 24 21 fraction of years of service as a peace officer.  For the
 24 22 purpose of this subsection, "fraction of years of service"
 24 23 means a number, not to exceed one, equal to the sum of the
 24 24 years of membership service as a peace officer, divided by
 24 25 twenty-five years.  On or after July 1, 1984, but before July
 24 26 1, 1988, if the peace officer has not reached sixty years of
 24 27 age at retirement, the monthly retirement allowance shall be
 24 28 reduced by five-tenths of one percent per month for each month
 24 29 that the peace officer's retirement precedes the date on which
 24 30 the peace officer attains sixty years of age.
 24 31    For the purpose of this subsection, membership service as a
 24 32 peace officer means service under this system as any or all of
 24 33 the following:
 24 34    (1)  As a county sheriff as defined in section 39.17.
 24 35    (2)  As a deputy sheriff appointed pursuant to section
 25  1 341.1, Code 1981, or section 331.903.
 25  2    (3)  As a marshal or police officer in a city not covered
 25  3 under chapter 400.
 25  4    b.  Each county and applicable city and employee eligible
 25  5 for benefits under this subsection shall annually contribute
 25  6 an amount determined by the department of personnel, as a
 25  7 percentage of covered wages, to be necessary to pay for the
 25  8 additional benefits provided by this subsection.  The annual
 25  9 contribution in excess of the employer and employee
 25 10 contributions required by this chapter shall be paid by the
 25 11 employer and the employee in the same proportion that employer
 25 12 and employee contributions are made under section 97B.11.  The
 25 13 additional percentage of covered wages shall be calculated
 25 14 separately by the department for service under paragraph "a",
 25 15 subparagraphs (1) and (2), and for service under paragraph
 25 16 "a", subparagraph (3), and each shall be an actuarially
 25 17 determined amount for that type of service which, if
 25 18 contributed throughout the entire period of active service,
 25 19 would be sufficient to provide the pension benefit provided in
 25 20 this subsection.
 25 21    8.  CORRECTIONAL OFFICER – JULY 1986 - JULY 1988.
 25 22    a.  Notwithstanding sections of this chapter relating to
 25 23 eligibility for and determination of retirement benefits, a
 25 24 vested member who is or has been employed as a correctional
 25 25 officer by the Iowa department of corrections and who retires
 25 26 on or after July 1, 1986, and before July 1, 1988, and at the
 25 27 time of retirement is at least sixty years of age and has
 25 28 completed at least thirty years of membership service as a
 25 29 correctional officer, may elect to receive, in lieu of the
 25 30 receipt of benefits under subsection 1 of this section, a
 25 31 monthly retirement allowance equal to one-twelfth of fifty
 25 32 percent of the member's three-year average covered wage as a
 25 33 correctional officer, with benefits payable during the
 25 34 member's lifetime.
 25 35    b.  The Iowa department of corrections and the department
 26  1 of personnel shall jointly determine the applicable merit
 26  2 system job classifications of correctional officers.
 26  3    c.  The Iowa department of corrections shall pay to the
 26  4 department of personnel, from funds appropriated to the Iowa
 26  5 department of corrections, an actuarially determined amount
 26  6 sufficient to pay for the additional benefits provided in this
 26  7 subsection.  The amount is in addition to the employer
 26  8 contributions required in section 97B.11.
 26  9    9.  AIRPORT FIRE FIGHTER – JULY 1986 - JULY 1988.
 26 10    a.  Notwithstanding other provisions of this chapter, a
 26 11 member who is or has been employed by the office of disaster
 26 12 services as an airport fire fighter who retires on or after
 26 13 July 1, 1986, and before July 1, 1988, and at the time of
 26 14 retirement is at least sixty years of age and has completed at
 26 15 least twenty-five years of membership service as an airport
 26 16 fire fighter, may elect to receive, in lieu of the receipt of
 26 17 any benefits under subsection 1 of this section, a monthly
 26 18 retirement allowance equal to one-twelfth of fifty percent of
 26 19 the member's three-year average covered wage as an airport
 26 20 fire fighter, with benefits payable during the member's
 26 21 lifetime.
 26 22    b.  An airport fire fighter who retires on or after July 1,
 26 23 1986, and before July 1, 1988, and has not completed twenty-
 26 24 five years of membership service as required under this
 26 25 subsection is eligible to receive a monthly retirement
 26 26 allowance equal to one-twelfth of fifty percent of the
 26 27 member's three-year average covered wage as an airport fire
 26 28 fighter multiplied by a fraction of years of service as an
 26 29 airport fire fighter.  For the purpose of this subsection,
 26 30 "fraction of years of service" means a number, not to exceed
 26 31 one, equal to the sum of the years of membership service as an
 26 32 airport fire fighter, divided by twenty-five years.  On or
 26 33 after July 1, 1986, but before July 1, 1988, if the airport
 26 34 fire fighter has not reached sixty years of age at retirement,
 26 35 the monthly retirement allowance shall be reduced by five-
 27  1 tenths of one percent per month for each month that the
 27  2 airport fire fighter's retirement precedes the date on which
 27  3 the airport fire fighter attains sixty years of age.
 27  4    c.  The employer and each employee eligible for benefits
 27  5 under this subsection shall annually contribute an actuarially
 27  6 determined amount specified by the department, as a percentage
 27  7 of covered wages, that is necessary to pay for the additional
 27  8 benefits provided by this subsection.  The annual contribution
 27  9 in excess of the employer and employee contributions required
 27 10 in section 97B.11 shall be paid by the employer and the
 27 11 employee in the same proportion that the employer and employee
 27 12 contributions are made under section 97B.11.
 27 13    d.  There is appropriated from the general fund of the
 27 14 state to the department from funds not otherwise appropriated
 27 15 an amount sufficient to pay the employer share of the cost of
 27 16 the additional benefits provided in this subsection.
 27 17    10.  PROTECTION OCCUPATION – JULY 1988 - JULY 1994.
 27 18    a.  For purposes of this subsection:
 27 19    (1)  "Applicable percentage" means the applicable
 27 20 percentage multiplier as described in subsection 1, paragraph
 27 21 "b", that applies on the date a member retires and becomes
 27 22 eligible to receive a monthly allowance as calculated pursuant
 27 23 to this subsection.
 27 24    (2)  "Fraction of years of service" means a number, not to
 27 25 exceed one, equal to the sum of the years of membership
 27 26 service in a protection occupation divided by twenty-five
 27 27 years.
 27 28    b.  Notwithstanding other provisions of this chapter, a
 27 29 member who is or has been employed in a protection occupation
 27 30 who retires on or after July 1, 1988, and before July 1, 1994,
 27 31 and at the time of retirement is at least fifty-five years of
 27 32 age may elect to receive, in lieu of the receipt of any
 27 33 benefits as calculated pursuant to subsection 1 of this
 27 34 section, a monthly retirement allowance equal to one-twelfth
 27 35 of an amount equal to the applicable percentage of the three-
 28  1 year average covered wage as a member who has been employed in
 28  2 a protection occupation multiplied by a fraction of years of
 28  3 service, with benefits payable during the member's lifetime.
 28  4    11.  SHERIFFS AND DEPUTY SHERIFFS – JULY 1988 - JULY 1998.
 28  5    a.  For purposes of this subsection:
 28  6    (1)  "Applicable percentage" means the greater of the
 28  7 following percentages:
 28  8    (a)  The applicable percentage multiplier as described in
 28  9 subsection 1, paragraph "b", that applies on the date a member
 28 10 retires and becomes eligible to receive a monthly allowance as
 28 11 calculated pursuant to this subsection.
 28 12    (b)  For each active or inactive vested member retiring on
 28 13 or after July 1, 1994, and before July 1, 1996, sixty percent.
 28 14    (c)  For each active or inactive vested member retiring on
 28 15 or after July 1, 1996, and before July 1, 1998, sixty percent
 28 16 plus, if applicable, an additional one-fourth of one
 28 17 percentage point for each additional calendar quarter of
 28 18 eligible service beyond twenty-two years of service, not to
 28 19 exceed a total of five additional percentage points.
 28 20    (2)  "Fraction of years of service" means a number, not to
 28 21 exceed one, equal to the sum of the years of membership
 28 22 service as a sheriff or deputy sheriff divided by twenty-two
 28 23 years.
 28 24    b.  Notwithstanding other provisions of this chapter, a
 28 25 member who retires from employment as a sheriff or deputy
 28 26 sheriff on or after July 1, 1988, and before July 1, 1998, and
 28 27 at the time of retirement is at least fifty-five years of age
 28 28 may elect to receive, in lieu of the receipt of any benefits
 28 29 as calculated pursuant to subsection 1 of this section, a
 28 30 monthly retirement allowance equal to one-twelfth of an amount
 28 31 equal to the applicable percentage of the three-year average
 28 32 covered wage as a member who has been employed as a sheriff or
 28 33 deputy sheriff multiplied by a fraction of years of service,
 28 34 with benefits payable during the member's lifetime.
 28 35    Sec. 16.  NEW SECTION.  97B.49H  ACTIVE MEMBER SUPPLEMENTAL
 29  1 ACCOUNTS.
 29  2    1.  There is established, for each active member, a
 29  3 supplemental account consisting of amounts credited to the
 29  4 account as provided in this section which shall be held and
 29  5 used for the exclusive benefit of the member pursuant to the
 29  6 requirements of this section.
 29  7    2.  Amounts shall be credited to a supplemental account of
 29  8 each active member pursuant to the requirements of this
 29  9 section following a determination by the system's actuary
 29 10 during the most recent annual actuarial valuation that the
 29 11 system does not have an unfunded accrued liability.  For
 29 12 purposes of this section, the system does not have an unfunded
 29 13 accrued liability if the actuarial accrued liability of the
 29 14 system based on the actuarial cost method used by the actuary
 29 15 does not exceed the actuarial value of assets of the system as
 29 16 of the valuation date.
 29 17    3.  The department shall annually determine the amount to
 29 18 be credited to the supplemental accounts of active members.
 29 19 The amount to be credited shall be calculated by multiplying
 29 20 the member's covered wages by the supplemental rate.  For
 29 21 purposes of this subsection, the supplemental rate is the
 29 22 difference, if positive, between the combined employee and
 29 23 employer statutory contribution rates in effect under section
 29 24 97B.11 and the normal cost rate of the system as determined by
 29 25 the system's actuary in the most recent annual actuarial
 29 26 valuation of the system.  The credits shall be made at least
 29 27 quarterly during the calendar year following a determination
 29 28 that the system does not have an unfunded accrued liability.
 29 29 The normal cost rate, calculated according to the actuarial
 29 30 cost method used, is the percent of pay allocated to each year
 29 31 of service that is necessary to fund projected benefits over
 29 32 the member's service with the system.
 29 33    4.  Amounts in a member's supplemental account shall accrue
 29 34 interest quarterly pursuant to section 97B.70, subsection 2.
 29 35    5.  Amounts in a member's supplemental account shall be
 30  1 distributed as follows:
 30  2    a.  If a member terminates covered employment and files an
 30  3 application for a refund under section 97B.53, the member
 30  4 shall receive in a lump sum payment, in addition to any other
 30  5 payment provided by this chapter, all moneys in the member's
 30  6 supplemental account.
 30  7    b.  If a member dies prior to retirement, the member's
 30  8 beneficiary shall receive in a lump sum payment, in addition
 30  9 to any other payment provided by this chapter, all moneys in
 30 10 the member's supplemental account.
 30 11    c.  Upon retirement, the member shall receive in a lump sum
 30 12 payment or in an annuity, in addition to any other payment
 30 13 provided by this chapter, all moneys in the member's
 30 14 supplemental account.
 30 15    Sec. 17.  Section 97B.50, Code 1997, is amended to read as
 30 16 follows:
 30 17    97B.50  EARLY RETIREMENT.
 30 18    1.  Except as otherwise provided in this section, a vested
 30 19 member, upon retirement prior to the normal retirement date
 30 20 other than that specified in section 97B.45, subsection 4, is
 30 21 entitled to receive a monthly retirement allowance determined
 30 22 in the same manner as provided for normal retirement in
 30 23 section 97B.49, subsections 1, 4, and 5 sections 97B.49A,
 30 24 97B.49E, and 97B.49G, reduced as follows:
 30 25    a.  For a member who is less than sixty-two years of age,
 30 26 by twenty-five hundredths of one percent per month for each
 30 27 month that the early retirement date precedes the normal
 30 28 retirement date.
 30 29    b.  For a member who is at least sixty-two years of age and
 30 30 who has not completed thirty years of membership service and
 30 31 prior service, by twenty-five hundredths of one percent per
 30 32 month for each month that the early retirement date precedes
 30 33 the normal retirement date.
 30 34    2.  a.  A vested member who retires from the system due to
 30 35 disability and commences receiving disability benefits
 31  1 pursuant to the federal Social Security Act, 42 U.S.C. } 423
 31  2 et seq., and who has not reached the normal retirement date,
 31  3 shall receive benefits under section 97B.49 and shall not have
 31  4 benefits reduced upon retirement as required under subsection
 31  5 1 regardless of whether the member has completed thirty or
 31  6 more years of membership service.  However, the benefits shall
 31  7 be suspended during any period in which the member returns to
 31  8 covered employment.  This section takes effect July 1, 1990,
 31  9 for a member meeting the requirements of this paragraph who
 31 10 retired from the system at any time after July 4, 1953.
 31 11 Eligible members are entitled to the receipt of retroactive
 31 12 adjustment payments back to July 1, 1990, notwithstanding the
 31 13 requirements of subsection 4.
 31 14    b.  A vested member who retires from the system due to
 31 15 disability and commences receiving disability benefits
 31 16 pursuant to the federal Railroad Retirement Act, 45 U.S.C. }
 31 17 231 et seq., and who has not reached the normal retirement
 31 18 date, shall receive benefits under section 97B.49 sections
 31 19 97B.49A through 97B.49G, as applicable, and shall not have
 31 20 benefits reduced upon retirement as required under subsection
 31 21 1 regardless of whether the member has completed thirty or
 31 22 more years of membership service.  However, the benefits shall
 31 23 be suspended during any period in which the member returns to
 31 24 covered employment.  This section takes effect July 1, 1990,
 31 25 for a member meeting the requirements of this paragraph who
 31 26 retired from the system at any time since July 4, 1953.
 31 27 Eligible members are entitled to the receipt of retroactive
 31 28 adjustment payments back to July 1, 1990, notwithstanding the
 31 29 requirements of subsection 4.
 31 30    3.  A member who is at least sixty-two years of age and
 31 31 less than sixty-five years of age, and who has completed
 31 32 thirty or more years of membership service and prior service,
 31 33 shall receive full benefits under section 97B.49 sections
 31 34 97B.49A through 97B.49G, as applicable, determined as if the
 31 35 member had attained sixty-five years of age.
 32  1    4.  A vested member eligible for a retirement allowance
 32  2 adjusted under this section is entitled to receipt of
 32  3 retroactive adjustment payments for no more than six months
 32  4 immediately preceding the month in which written notice of
 32  5 retirement was submitted to the department.
 32  6    Sec. 18.  Section 97B.51, subsection 5, Code 1997, is
 32  7 amended to read as follows:
 32  8    5.  At retirement, a member may designate that upon the
 32  9 member's death, a specified amount of money shall be paid to a
 32 10 named beneficiary, and the member's monthly retirement
 32 11 allowance shall be reduced by an actuarially determined amount
 32 12 to provide for the lump sum payment.  The amount designated by
 32 13 the member must be in thousand dollar increments and shall be
 32 14 limited to the amount of the member's accumulated
 32 15 contributions.  The amount designated shall not lower the
 32 16 monthly retirement allowance of the member by more than one-
 32 17 half the amount payable under section 97B.49, subsection 1 or
 32 18 5 97B.49A or 97B.49G, as applicable.  A member may designate a
 32 19 different beneficiary if the original named beneficiary
 32 20 predeceases the member.
 32 21    Sec. 19.  Section 97B.52, subsection 1, paragraphs b and c,
 32 22 Code 1997, are amended to read as follows:
 32 23    b.  For service in a protection occupation, as defined in
 32 24 section 97B.49, subsection 16, paragraph "d" 97B.49B, the
 32 25 applicable denominator is twenty-five.
 32 26    c.  For service as a sheriff, deputy sheriff, or airport
 32 27 fire fighter, as provided in section 97B.49, subsection 16,
 32 28 paragraph "b" 97B.49C, the applicable denominator is twenty-
 32 29 two twenty.
 32 30    Sec. 20.  Section 97B.53, subsection 1, Code 1997, is
 32 31 amended to read as follows:
 32 32    1.  Upon the termination of employment with the employer
 32 33 prior to retirement other than by death of a member, the
 32 34 accumulated contributions by the member and, for a vested
 32 35 member, the accumulated employer contributions for the vested
 33  1 member at the date of the termination may be paid to the
 33  2 member upon application, except as provided in subsections 2,
 33  3 5, and 6.  For the purpose of this subsection, the
 33  4 "accumulated employer contributions" is an amount equal to the
 33  5 total obtained as of any date, by accumulating each individual
 33  6 contribution by the employer for the member with interest plus
 33  7 interest dividends as provided in section 97B.70, for all
 33  8 completed calendar years and for any completed calendar year
 33  9 for which the interest dividend has not been declared and for
 33 10 completed months of partially completed calendar years,
 33 11 compounded as provided in section 97B.70 multiplied by a
 33 12 fraction of years of service for that member as defined in
 33 13 section 97B.49A, 97B.49B, or 97B.49C.
 33 14    Sec. 21.  Section 97B.53, subsection 2, Code 1997, is
 33 15 amended to read as follows:
 33 16    2.  If a vested member's employment is terminated prior to
 33 17 the member's retirement, other than by death, the member may
 33 18 receive a monthly retirement allowance commencing on the first
 33 19 day of the month in which the member attains the age of sixty-
 33 20 five years, if the member is then alive, or, if the member so
 33 21 elects in accordance with section 97B.47, commencing on the
 33 22 first day of the month in which the member attains the age of
 33 23 fifty-five or any month thereafter prior to the date the
 33 24 member attains the age of sixty-five years, and continuing on
 33 25 the first day of each month thereafter during the member's
 33 26 lifetime, provided the member does not receive prior to the
 33 27 date the member's retirement allowance is to commence a refund
 33 28 of accumulated contributions under any of the provisions of
 33 29 this chapter.  The amount of each such monthly retirement
 33 30 allowance shall be determined as provided in either section
 33 31 97B.49 sections 97B.49A through 97B.49G, or in section 97B.50,
 33 32 whichever is applicable.
 33 33    Sec. 22.  Section 97B.73, Code 1997, is amended to read as
 33 34 follows:
 33 35    97B.73  MEMBERS FROM OTHER PUBLIC SYSTEMS.
 34  1    A vested or retired member who has one or more full
 34  2 calendar years of covered wages who was in public employment
 34  3 comparable to employment covered under this chapter in another
 34  4 state or in the federal government, or who was a member of
 34  5 another public retirement system in this state, including but
 34  6 not limited to the teachers insurance annuity association-
 34  7 college retirement equities fund, but who was not retired
 34  8 under that system, upon submitting verification of membership
 34  9 and service in the other public system to the department,
 34 10 including proof that the member has no further claim upon a
 34 11 retirement benefit from that other public system, may make
 34 12 employer and employee contributions to the system either for
 34 13 the entire period of service in the other public system, or
 34 14 for partial service in the other public system in increments
 34 15 of one or more calendar quarters.  If the member wishes to
 34 16 transfer only a portion of the service value of another public
 34 17 system to this system and the other public system allows a
 34 18 partial withdrawal of a member's system credits, the member
 34 19 shall receive credit for membership service in this system
 34 20 equivalent to the period of service transferred from the other
 34 21 public system.  The contribution payable shall be based upon
 34 22 the member's covered wages for the most recent full calendar
 34 23 year at the applicable rates in effect for that calendar year
 34 24 under sections 97B.11, 97B.49B, 97B.49C, and 97B.49 97B.49G
 34 25 and multiplied by the member's years of service in other
 34 26 public employment.  If the member's most recent covered wages
 34 27 were earned prior to the most recent calendar year, the
 34 28 member's covered wages shall be adjusted by the department by
 34 29 an inflation factor to reflect changes in the economy since
 34 30 the covered wages were earned.
 34 31    This section is applicable to a vested or retired member
 34 32 who was a member of a public retirement system established in
 34 33 sections 294.8, 294.9, and 294.10 but was not retired under
 34 34 that system.
 34 35    Notwithstanding any provision of this section to the
 35  1 contrary, effective July 1, 1994, a vested or retired member
 35  2 must have membership service within the current calendar year
 35  3 in order to make contributions in any manner provided by this
 35  4 section.
 35  5    A member entitled to a benefit from another public system
 35  6 must waive, on a form provided by the Iowa public employees'
 35  7 retirement system, all rights to a retirement benefit under
 35  8 the other public system before receiving credit in this system
 35  9 for the years of service in the other public system.  The
 35 10 waiver must be accepted by the other public system.
 35 11    Effective July 1, 1988, a member eligible for an increased
 35 12 retirement allowance because of the payment of contributions
 35 13 under this section is entitled to receipt of retroactive
 35 14 adjustment payments for no more than six months immediately
 35 15 preceding the month in which written notice was submitted to
 35 16 the department the member pays contributions under this
 35 17 section.
 35 18    Effective July 1, 1998, a purchase of service made in
 35 19 accordance with this section by a retired reemployed member
 35 20 shall be applied to either the member's original retirement
 35 21 allowance, or to the member's reemployment service, whichever
 35 22 is more beneficial to the member.  If applied to the member's
 35 23 original retirement allowance, or to the member's reemployment
 35 24 service after the retirement allowance payments for such
 35 25 service begin, the member is eligible to receive retroactive
 35 26 adjustment payments for no more than six months prior to
 35 27 completion of the purchase.
 35 28    However, the department shall ensure that the member, in
 35 29 exercising an option provided in this section, does not exceed
 35 30 the amount of annual additions to a member's account permitted
 35 31 pursuant to section 415 of the federal Internal Revenue Code.
 35 32    Sec. 23.  Section 97B.80, Code Supplement 1997, is amended
 35 33 to read as follows:
 35 34    97B.80  VETERAN'S CREDIT.
 35 35    Effective July 1, 1992, a vested or retired member, who has
 36  1 one or more full calendar years of covered wages and who at
 36  2 any time served on active duty in the armed forces of the
 36  3 United States, upon submitting verification of the dates of
 36  4 the active duty service, may make employer and employee
 36  5 contributions to the system based upon the member's covered
 36  6 wages for the most recent full calendar year in which the
 36  7 member had reportable wages at the applicable rates in effect
 36  8 for that year under sections 97B.11, 97B.49B, 97B.49C, and
 36  9 97B.49 97B.49G, for all or a portion of the period of time of
 36 10 the active duty service, in increments of one or more calendar
 36 11 quarters, and receive credit for membership service and prior
 36 12 service for the period of time for which the contributions are
 36 13 made.  If the member's most recent covered wages were earned
 36 14 prior to the most recent calendar year, the member's covered
 36 15 wages shall be adjusted by the department by an inflation
 36 16 factor to reflect changes in the economy.  The department
 36 17 shall adjust benefits for a six-month period prior to the date
 36 18 the member pays contributions under this section if the member
 36 19 is receiving a retirement allowance at the time the
 36 20 contribution payment is made.  Verification of active duty
 36 21 service and payment of contributions shall be made to the
 36 22 department.  However, a member is not eligible to make
 36 23 contributions under this section if the member is receiving,
 36 24 is eligible to receive, or may in the future be eligible to
 36 25 receive retirement pay from the United States government for
 36 26 active duty in the armed forces, except for retirement pay
 36 27 granted by the United States government under retired pay for
 36 28 nonregular service pursuant to 10 U.S.C. } 12731–12739.  A
 36 29 member receiving retired pay for nonregular service who makes
 36 30 contributions under this section shall provide information
 36 31 required by the department documenting time periods covered
 36 32 under retired pay for nonregular service.
 36 33    Notwithstanding any provision of this section to the
 36 34 contrary, effective July 1, 1994, a vested or retired member
 36 35 must have membership service within the current calendar year
 37  1 in order to make contributions in any manner provided by this
 37  2 section.
 37  3    Effective July 1, 1998, a purchase of service made in
 37  4 accordance with this section by a retired reemployed member
 37  5 shall be applied to either the member's original retirement
 37  6 allowance, or to the member's reemployment service, whichever
 37  7 is more beneficial to the member.  If applied to the member's
 37  8 original retirement allowance, or to the member's reemployment
 37  9 service after the retirement allowance payments for such
 37 10 service begin, the member is eligible to receive retroactive
 37 11 adjustment payments for no more than six months prior to
 37 12 completion of the purchase.
 37 13    However, the department shall ensure that the member, in
 37 14 exercising an option provided in this section, does not exceed
 37 15 the amount of annual additions to a member's account permitted
 37 16 pursuant to section 415 of the federal Internal Revenue Code.
 37 17    Sec. 24.  Section 97D.3, subsection 2, Code 1997, is
 37 18 amended to read as follows:
 37 19    2.  Upon a favorable vote in the referendum and
 37 20 notwithstanding sections 97A.3 and 411.3, all persons newly
 37 21 hired as peace officers, as defined in section 97A.1, police
 37 22 officers, and fire fighters after July 1, 1991, shall be
 37 23 members of the Iowa public employees' retirement system under
 37 24 chapter 97B, rather than members of retirement systems under
 37 25 chapters 97A and 411.  Such members shall have federal social
 37 26 security coverage in addition to coverage under the Iowa
 37 27 public employees' retirement system and shall have the same
 37 28 benefits as county sheriffs and deputy sheriffs under section
 37 29 97B.49, subsection 16, paragraph "b" 97B.49C or 97B.49G, as
 37 30 applicable.
 37 31    Sec. 25.  Section 509A.13A, subsection 1, paragraph b,
 37 32 subparagraph (1) and (2), Code 1997, is amended to read as
 37 33 follows:
 37 34    (1)  The eligible retired state employee has received
 37 35 retirement benefits under the retirement system established in
 38  1 chapter 97A based upon the completion of at least twenty-two
 38  2 years of membership service.
 38  3    (2)  The eligible retired state employee has received
 38  4 retirement benefits under the retirement system established in
 38  5 chapter 97B based upon any of the following:.
 38  6    (a)  Meeting the requirements for receiving retirement
 38  7 benefits pursuant to chapter 97B based upon having attained at
 38  8 least sixty-two years of age and upon having completed at
 38  9 least thirty years of membership service.
 38 10    (b)  Meeting the requirements for receiving benefits under
 38 11 section 97B.49, subsection 16, without a reduction for years
 38 12 of service pursuant to section 97B.49, subsection 16,
 38 13 paragraph "c".
 38 14    Sec. 26.  Section 602.11115, subsection 2, Code 1997, is
 38 15 amended to read as follows:
 38 16    2.  To commence coverage under the judicial retirement
 38 17 system pursuant to article 9, part 1, effective July 1, 1984,
 38 18 but to become an inactive member of the Iowa public employees'
 38 19 retirement system pursuant to chapter 97B and remain eligible
 38 20 for benefits under section 97B.49 sections 97B.49A through
 38 21 97B.49H for the period of membership service under chapter
 38 22 97B.
 38 23    Sec. 27.  Section 724.6, subsection 2, Code 1997, is
 38 24 amended to read as follows:
 38 25    2.  Notwithstanding subsection 1, fire fighters, as defined
 38 26 in section 411.1, subsection 9, airport fire fighters included
 38 27 under section 97B.49, subsection 16, paragraph "b",
 38 28 subparagraph (2) 97B.49C, emergency rescue technicians, and
 38 29 emergency medical care providers, as defined in section
 38 30 147A.1, shall not, as a condition of employment, be required
 38 31 to obtain a permit under this section.  However, the
 38 32 provisions of this subsection shall not apply to a person
 38 33 designated as an arson investigator by the chief fire officer
 38 34 of a political subdivision.
 38 35    Sec. 28.  Section 97B.49, Code Supplement 1997, is
 39  1 repealed.
 39  2    Sec. 29.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.  The
 39  3 section of this Act amending section 509A.13A, subsection 1,
 39  4 paragraph "b", is effective immediately and is retroactively
 39  5 applicable to July 1, 1994, and is applicable on and after
 39  6 that date.  
 39  7                           EXPLANATION
 39  8    This bill makes numerous changes to the Iowa public
 39  9 employees' retirement system.  This bill may include a state
 39 10 mandate as defined in Code section 25B.3.  The state mandate
 39 11 funding requirement in Code section 25B.2, however, does not
 39 12 apply to public employee retirement systems.
 39 13    Code section 97B.45 is amended to provide that a member
 39 14 retiring on or after July 1, 1998, or the implementation date,
 39 15 if later, is eligible for normal retirement without penalty
 39 16 based upon a rule of 85 where the combination of a member's
 39 17 age and years of service equals or exceeds 85, and the member
 39 18 is at least 55 years of age.  In addition, the section is
 39 19 amended to provide that a member is eligible for normal
 39 20 retirement without penalty in the first month the member
 39 21 attains 62 years of age if the member has completed 20 years
 39 22 of service.
 39 23    Code section 97B.49 is reorganized into new Code sections
 39 24 97B.49A through 97B.49G.  Code section 97B.49A provides the
 39 25 general benefits calculation for most IPERS members.  Code
 39 26 section 97B.49B provides for the benefit calculation for
 39 27 members of a protection occupation while Code section 97B.49C
 39 28 provides the benefit calculation for sheriffs, deputy
 39 29 sheriffs, and airport fire fighters.  Code section 97B.49D
 39 30 contains the current hybrid formula for calculating benefits.
 39 31 Code section 97B.49E contains the minimum benefits provisions
 39 32 while section 97B.49F contains the dividend provisions.  Code
 39 33 section 97B.49G contains several historical benefit
 39 34 calculations for members who retired generally before July
 39 35 1994.
 40  1    In addition to the reorganization of Code section 97B.49,
 40  2 other substantive changes were made as well to current law.
 40  3    New Code section 97B.49C, concerning sheriffs, deputy
 40  4 sheriffs, and airport fire fighters provides that a member is
 40  5 entitled to retire upon reaching 52 years of age and
 40  6 completing at least 20 years of service.  The new section also
 40  7 provides that determination of an allowance will be based on
 40  8 the number of years of service divided by 20, instead of the
 40  9 current 22 years.  In addition, the new section provides that
 40 10 members covered by this section will receive an additional 1.5
 40 11 percent for each additional year of service after 20 years of
 40 12 service for up to eight additional years.  Currently,
 40 13 sheriffs, deputy sheriffs, and airport fire fighters get only
 40 14 an additional 1 percent for up to five years of service beyond
 40 15 22 years of service.
 40 16    Code section 97B.49F concerning dividends is also amended.
 40 17 The current dividend program for pre-July 1990 retirees is
 40 18 amended to provide that 100 percent, and not 80 percent, of
 40 19 the percentage based on the consumer price index shall be used
 40 20 in determining the appropriated percentage to use in
 40 21 determining the dividend adjustment each year.  The current 3
 40 22 percent cap on this percentage is not changed by this bill.
 40 23    Code section 97B.49F, subsection 2, establishes a favorable
 40 24 experience dividend applicable to members who retired on or
 40 25 after July 1, 1990.  The new subsection provides, commencing
 40 26 January 1, 1999, that members who retired from IPERS on or
 40 27 after July 1, 1990, and who have been retired for at least one
 40 28 year are eligible to receive a favorable experience dividend.
 40 29 The dividend shall be payable, if at all, from moneys
 40 30 deposited in a favorable experience reserve account.  Moneys
 40 31 shall be deposited in the reserve account based upon a
 40 32 determination by the actuary that the most recent valuation of
 40 33 the retirement fund indicates that the actual actuarial status
 40 34 of the retirement fund is better than what was anticipated by
 40 35 the actuary.  In addition, money sufficient to pay the
 41  1 dividend for the five years will be credited to the account in
 41  2 January 1999.  The new subsection establishes the process for
 41  3 determining the amount of the favorable actuarial experience
 41  4 of the system that shall be deposited in the reserve account.
 41  5 The new subsection provides that the dividend shall be payable
 41  6 on the last business day of January following a determination
 41  7 by the actuary that there are sufficient moneys in the account
 41  8 to pay a dividend.  The new subsection provides that the
 41  9 dividend shall be calculated by multiplying the member's
 41 10 annual benefit by the number of years the member has been
 41 11 retired and by a percentage, not to exceed three percent, as
 41 12 determined by the department.  The new subsection provides
 41 13 that a member's beneficiary or contingent annuitant is also
 41 14 eligible to receive a dividend.
 41 15    New Code section 97B.49H establishes active member
 41 16 supplemental accounts for IPERS members.  The new Code section
 41 17 provides that moneys shall be deposited in these accounts only
 41 18 after the actuary determines that the system does not have an
 41 19 unfunded actuarial liability as of the most recent actuarial
 41 20 valuation of the system.  If an amount is payable, the new
 41 21 Code section then provides that IPERS shall deposit in each
 41 22 active member's account, in the year following the actuary's
 41 23 determination that the system does not have an unfunded
 41 24 liability, an amount determined by multiplying the member's
 41 25 covered wages by a supplemental percentage rate as determined
 41 26 by the actuary.  The supplemental rate is the rate which
 41 27 reflects the difference between the statutory contribution
 41 28 rate for both employers and employees and the contribution
 41 29 rate the actuary determines is necessary to fund the future
 41 30 benefits of the system.  The new Code section then provides
 41 31 that moneys in a member's supplemental account are payable
 41 32 upon a member's termination from covered service under certain
 41 33 circumstances, a member's death, or a member's retirement.
 41 34 The new Code section provides that the establishment of an
 41 35 active member supplemental account is subject to IRS approval.
 42  1    Code section 97B.53, subsection 1, is amended to provide
 42  2 that a member who terminates employment under IPERS prior to
 42  3 retirement may be paid, in addition to the total of their
 42  4 employee contributions plus interest, a portion of the total
 42  5 employer contributions paid on their behalf plus interest.
 42  6 The amendment provides that the member shall receive the total
 42  7 employer contributions paid, plus interest, multiplied by the
 42  8 member's number of years of the member's service divided by
 42  9 the number of years the member would have to serve in order to
 42 10 receive a 60 percent retirement allowance.
 42 11    Code section 509A.13A, concerning the eligibility of a
 42 12 surviving spouse of a state employee who retired under IPERS
 42 13 and who elected to continue coverage under the state's group
 42 14 health care plan until the employee's death, is amended by
 42 15 this bill.  Currently, to be eligible, the retired state
 42 16 employee had to have retired at age 62 with at least 30 years
 42 17 of service under IPERS.  The bill provides that a surviving
 42 18 spouse will be eligible so long as the retired state employee
 42 19 retired upon the employee's normal retirement date.  A
 42 20 comparable change relating to the peace officers' retirement
 42 21 system is also made in the bill.  This change to Code section
 42 22 509A.13A is retroactively applicable to July 1, 1994.  
 42 23 LSB 3556XS 77
 42 24 ec/cf/24.2
     

Text: SF02354                           Text: SF02356
Text: SF02300 - SF02399                 Text: SF Index
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