Text: SF02354 Text: SF02356 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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 section97B.49, subsection 1197B.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 1697B.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 section97B.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 2497B.49, subsection 16 or 1797B.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 2797B.49, subsection 16 or 1797B.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 2797B.49, subsection 1197B.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 completedthirty2 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 whicha member meets the3 1membership service and age requirements to retire under3 2section 97B.49, subsection 15the 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 undersection 97B.49sections 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 section97B.49 or97B.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 23section 97B.49, subsections 1, 4, and 5sections 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 undersection 97B.49sections 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 undersection 97B.49sections 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 section97B.49, subsection 1 or32 18597B.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 section97B.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 section97B.49, subsection 16,32 28paragraph "b"97B.49C, the applicable denominator istwenty-32 29twotwenty. 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 eithersection33 3197B.49sections 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, and97B.4997B.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 35Notwithstanding any provision of this section to the35 1contrary, effective July 1, 1994, a vested or retired member35 2must have membership service within the current calendar year35 3in order to make contributions in any manner provided by this35 4section.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 whichwritten notice was submitted to35 16the departmentthe 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 997B.4997B.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. } 1273112739. 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 33Notwithstanding any provision of this section to the36 34contrary, effective July 1, 1994, a vested or retired member36 35must have membership service within the current calendar year37 1in order to make contributions in any manner provided by this37 2section.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 2997B.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 97Abased upon the completion of at least twenty-two38 2years 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 97Bbased upon any of the following:. 38 6(a) Meeting the requirements for receiving retirement38 7benefits pursuant to chapter 97B based upon having attained at38 8least sixty-two years of age and upon having completed at38 9least thirty years of membership service.38 10(b) Meeting the requirements for receiving benefits under38 11section 97B.49, subsection 16, without a reduction for years38 12of service pursuant to section 97B.49, subsection 16,38 13paragraph "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 undersection 97B.49sections 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 section97B.49, subsection 16, paragraph "b",38 28subparagraph (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
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