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PAG LIN 1 1 Section 1. Section 97A.6, subsection 2, Code 1999, is 1 2 amended to read as follows: 1 3 2. Allowance on service retirement. 1 4 a. Upon retirement from service prior to July 1, 1990, a 1 5 member shall receive a service retirement allowance which 1 6 shall consist of a pension which equals fifty percent of the 1 7 member's average final compensation. 1 8 b. Upon retirement from service on or after July 1, 1990, 1 9 but before July 1, 1992, a member shall receive a service 1 10 retirement allowance which shall consist of a pension which 1 11 equals fifty-four percent of the member's average final 1 12 compensation. 1 13 c. Commencing July 1, 1992, but before July 1, 2000, the 1 14 board of trustees shall increase the percentage multiplier of 1 15 the member's average final compensation by an additional two 1 16 percent each July 1 until reaching sixty percent of the 1 17 member's average final compensation. 1 18 d. Upon retirement from service on or after July 1, 2000, 1 19 a member shall receive a service retirement allowance which 1 20 shall consist of a pension which equals sixty and one-half 1 21 percent of the member's average final compensation. 1 22d.e. Commencing July 1, 1990, if the member has completed 1 23 more than twenty-two years of creditable service, the service 1 24 retirement allowance shall consist of a pension which equals 1 25 the amount provided in paragraphs "b"and, "c", or "d", plus 1 26 an additional percentage as set forth below: 1 27 (1) For a member who terminates service, other than by 1 28 death or disability, on or after July 1, 1990, but before July 1 29 1, 1991, and who does not withdraw the member's contributions 1 30 pursuant to section 97A.16, upon the member's retirement there 1 31 shall be added three-tenths percent of the member's average 1 32 final compensation for each year of service over twenty-two 1 33 years, excluding years of service after the member's fifty- 1 34 fifth birthday. However, this subparagraph does not apply to 1 35 more than eight additional years of service. 2 1 (2) For a member who terminates service, other than by 2 2 death or disability, on or after July 1, 1991, but before 2 3 October 16, 1992, and who does not withdraw the member's 2 4 contributions pursuant to section 97A.16, upon the member's 2 5 retirement there shall be added six-tenths percent of the 2 6 member's average final compensation for each year of service 2 7 over twenty-two years, excluding years of service after the 2 8 member's fifty-fifth birthday. However, this subparagraph 2 9 does not apply to more than eight additional years of service. 2 10 (3) For a member who terminates service, other than by 2 11 death or disability, on or after October 16, 1992, but before 2 12 July 1, 1996, and who does not withdraw the member's 2 13 contributions pursuant to section 97A.16, upon the member's 2 14 retirement there shall be added six-tenths percent of the 2 15 member's average final compensation for each year of service 2 16 over twenty-two years. However, this subparagraph does not 2 17 apply to more than eight additional years of service. 2 18 (4) For a member who terminates service, other than by 2 19 death or disability, on or after July 1, 1996, but before July 2 20 1, 1998, and who does not withdraw the member's contributions 2 21 pursuant to section 97A.16, upon the member's retirement there 2 22 shall be added one and one-half percent of the member's 2 23 average final compensation for each year of service over 2 24 twenty-two years. However, this subparagraph does not apply 2 25 to more than eight additional years of service. 2 26 (5) For a member who terminates service, other than by 2 27 death or disability, on or after July 1, 1998, but before July 2 28 1, 2000, and who does not withdraw the member's contributions 2 29 pursuant to section 97A.16, upon the member's retirement there 2 30 shall be added one and one-half percent of the member's 2 31 average final compensation for each year of service over 2 32 twenty-two years. However, this subparagraph does not apply 2 33 to more than ten additional years of service. 2 34 (6) For a member who terminates service, other than by 2 35 death or disability, on or after July 1, 2000, and who does 3 1 not withdraw the member's contributions pursuant to section 3 2 97A.16, upon the member's retirement there shall be added two 3 3 and three-fourths percent of the member's average final 3 4 compensation for each year of service over twenty-two years. 3 5 However, this subparagraph does not apply to more than ten 3 6 additional years of service. 3 7 Sec. 2. Section 97A.8, subsection 1, paragraph c, 3 8 unnumbered paragraph 2, Code 1999, is amended by striking the 3 9 unnumbered paragraph. 3 10 Sec. 3. Section 97B.1A, subsection 8, paragraph a, 3 11 subparagraph (1), Code 1999, is amended to read as follows: 3 12 (1) Elective officials in positions for which the 3 13 compensation is on a fee basis, elective officials of school 3 14 districts, elective officials of townships, and elective 3 15 officials of other political subdivisions who are in part-time 3 16 positions. An elective official covered under this chapter 3 17 may terminate membership under this chapter by informing the 3 18 department in writing of the expiration of the member's term 3 19 of office or by informing the department of the member's 3 20 intent to terminate membership for employment as an elective 3 21 official and establishing that the member has a bona fide 3 22 termination of employment from all employment covered under 3 23 this chapter other than as an elective official and that the 3 24 member has filed a completed application for benefits form 3 25 with the department. A county attorney is an employee for 3 26 purposes of this chapter whether that county attorney is 3 27 employed on a full-time or part-time basis. 3 28 Sec. 4. Section 97B.1A, subsection 24, paragraph b, 3 29 subparagraph (4), Code 1999, is amended to read as follows: 3 30 (4) For a member who retires on or after January 1, 2000, 3 31 but before January 1,20032001, and whose three-year average 3 32 covered wage at the time of retirement exceedsfifty-five3 33 sixty-five thousand dollars, the member's covered wages 3 34 averaged for the highestsevensix years of the member's 3 35 service orfifty-fivesixty-five thousand dollars, whichever 4 1 is greater. 4 2 Sec. 5. Section 97B.1A, subsection 24, paragraph b, Code 4 3 1999, is amended by adding the following new subparagraph: 4 4 NEW SUBPARAGRAPH. (5) For a member who retires on or 4 5 after January 1, 2001, but before January 1, 2002, and whose 4 6 three-year average covered wage at the time of retirement 4 7 exceeds seventy-five thousand dollars, the member's covered 4 8 wages averaged for the highest six years of the member's 4 9 service or seventy-five thousand dollars, whichever is 4 10 greater. 4 11 Sec. 6. Section 97B.45, subsection 4, Code 1999, is 4 12 amended to read as follows: 4 13 4. The first of any month in which the member is at least 4 14 fifty-five years of age and for which the sum of the number of 4 15 years of membership service and prior service and the member's 4 16 age in years as of the member's last birthday equals or 4 17 exceedseighty-eighteighty-five. 4 18 Sec. 7. Section 97B.49F, subsection 1, paragraph b, 4 19 subparagraph (2), subparagraph subdivision (a), Code 1999, is 4 20 amended to read as follows: 4 21 (a) The percentage representingeighty percent ofthe 4 22 percentage increase in the consumer price index published in 4 23 the federal register by the federal department of labor, 4 24 bureau of labor statistics, that reflects the percentage 4 25 increase in the consumer price index for the twelve-month 4 26 period ending June 30 of the year that the dividend is to be 4 27 paid. 4 28 Sec. 8. Section 97B.49G, subsection 4, Code 1999, is 4 29 amended by adding the following new paragraph: 4 30 NEW PARAGRAPH. e. The member is an active or inactive 4 31 vested member retiring on or after July 1, 1997, and before 4 32 the implementation date of section 6 of this Act, as 4 33 determined pursuant to section 13 of this Act, who is at least 4 34 fifty-five years of age and for which the sum of the number of 4 35 years of membership service and prior service and the member's 5 1 age in years as of the member's last birthday equals or 5 2 exceeds eighty-eight. 5 3 Sec. 9. NEW SECTION. 97B.50A DISABILITY BENEFITS FOR 5 4 SPECIAL SERVICE MEMBERS. 5 5 1. DEFINITIONS. For purposes of this section, unless the 5 6 context otherwise provides: 5 7 a. "Member" means a vested member who is classified as a 5 8 special service member under section 97B.1A, subsection 22, at 5 9 the time of the alleged disability. "Member" does not mean a 5 10 volunteer fire fighter. 5 11 b. "Net disability retirement allowance" means the amount 5 12 determined by subtracting the amount paid during the previous 5 13 calendar year by the member for health insurance or similar 5 14 health care coverage for the member and the member's 5 15 dependents from the amount of the member's disability 5 16 retirement allowance, including any dividends and 5 17 distributions from supplemental accounts, paid for that year 5 18 pursuant to this section. 5 19 c. "Reemployment comparison amount" means an amount equal 5 20 to the current covered wages of an active special service 5 21 member at the same position on the salary scale within the 5 22 rank or position the member held at the time the member 5 23 received a disability retirement allowance pursuant to this 5 24 section. If the rank or position held by the member at the 5 25 time of retirement pursuant to this section is abolished, the 5 26 amount shall be computed by the department as though the rank 5 27 or position had not been abolished and salary increases had 5 28 been granted on the same basis as granted to other ranks or 5 29 positions by the former employer of the member. The 5 30 reemployment comparison amount shall not be less than the 5 31 three-year average covered wage of the member, based on all 5 32 regular and special service covered under this chapter. 5 33 2. IN-SERVICE DISABILITY RETIREMENT ALLOWANCE. 5 34 a. A member who is injured in the performance of the 5 35 member's duties, and otherwise meets the requirements of this 6 1 subsection shall receive an in-service disability retirement 6 2 allowance under this subsection, in lieu of a monthly 6 3 retirement allowance as provided in section 97B.49A, 97B.49B, 6 4 97B.49C, 97B.49D, or 97B.49G, as applicable. 6 5 b. Upon application of a member, a member who has become 6 6 totally and permanently incapacitated for duty in the member's 6 7 special service occupation as the natural and proximate result 6 8 of an injury, disease, or exposure occurring or aggravated 6 9 while in the actual performance of duty at some definite place 6 10 and time shall be eligible to retire under this subsection, 6 11 provided that the medical board, as established by this 6 12 section, shall certify that the member is mentally or 6 13 physically incapacitated for further performance of duty, that 6 14 the incapacity is likely to be permanent, and that the member 6 15 should be retired. The department shall make the final 6 16 determination, based on the medical evidence received, of a 6 17 member's total and permanent disability. However, if a 6 18 person's membership in the system first commenced on or after 6 19 July 1, 2000, the member shall not be eligible for benefits 6 20 with respect to a disability which would not exist, but for a 6 21 medical condition that was known to exist on the date that 6 22 membership commenced. A member who is denied a benefit under 6 23 this subsection, by reason of a finding by the department that 6 24 the member is not mentally or physically incapacitated for the 6 25 further performance of duty, shall be entitled to be restored 6 26 to active service in the same or comparable special service 6 27 position held by the member immediately prior to the 6 28 application for disability benefits. 6 29 c. Disease under this subsection shall mean heart disease 6 30 or any disease of the lungs or respiratory tract and shall be 6 31 presumed to have been contracted while on active duty as a 6 32 result of strain, exposure, or the inhalation of noxious 6 33 fumes, poison, or gases. However, if a person's special 6 34 service membership in the system first commenced on or after 6 35 July 1, 2000, and the heart disease or disease of the lungs or 7 1 respiratory tract would not exist, but for a medical condition 7 2 that was known to exist on the date that special service 7 3 membership commenced, the presumption established in this 7 4 paragraph shall not apply. 7 5 d. Upon retirement for an in-service disability as 7 6 provided by this subsection, a member shall receive the 7 7 greater of a monthly in-service disability retirement 7 8 allowance calculated under this subsection or a monthly 7 9 retirement allowance as provided in section 97B.49A, 97B.49B, 7 10 97B.49C, 97B.49D, or 97B.49G, as applicable. The monthly in- 7 11 service disability allowance calculated under this subsection 7 12 shall consist of an allowance equal to one-twelfth of sixty 7 13 percent of the member's three-year average covered wage or its 7 14 actuarial equivalent as provided under section 97B.51. 7 15 3. ORDINARY DISABILITY RETIREMENT ALLOWANCE. 7 16 a. A member who otherwise meets the requirements of this 7 17 subsection shall receive an ordinary disability retirement 7 18 allowance under this subsection, in lieu of a monthly 7 19 retirement allowance as provided in section 97B.49A, 97B.49B, 7 20 97B.49C, 97B.49D, or 97B.49G, as applicable. 7 21 b. Upon application of a member, a member who has become 7 22 totally and permanently incapacitated for duty in the member's 7 23 special service occupation shall be eligible to retire under 7 24 this subsection, provided that the medical board, as 7 25 established by this section, shall certify that the member is 7 26 mentally or physically incapacitated for further performance 7 27 of duty, that the incapacity is likely to be permanent, and 7 28 that the member should be retired. The department shall make 7 29 the final determination, based on the medical evidence 7 30 received, of a member's total and permanent disability. 7 31 However, if a person's special service membership in the 7 32 system first commenced on or after July 1, 2000, the member 7 33 shall not be eligible for benefits with respect to a 7 34 disability which would not exist, but for a medical condition 7 35 that was known to exist on the date that special service 8 1 membership commenced. A member who is denied a benefit under 8 2 this subsection, by reason of a finding by the department that 8 3 the member is not mentally or physically incapacitated for the 8 4 further performance of duty, shall be entitled to be restored 8 5 to active service in the same or comparable special service 8 6 position held by the member immediately prior to the 8 7 application for disability benefits. 8 8 c. Upon retirement for an ordinary disability as provided 8 9 by this subsection, a member shall receive the greater of a 8 10 monthly ordinary disability retirement allowance calculated 8 11 under this subsection or a monthly retirement allowance as 8 12 provided in section 97B.49A, 97B.49B, 97B.49C, 97B.49D, or 8 13 97B.49G, as applicable. The monthly ordinary disability 8 14 allowance calculated under this subsection shall consist of an 8 15 allowance equal to one-twelfth of fifty percent of the 8 16 member's three-year average covered wage or its actuarial 8 17 equivalent as provided under section 97B.51. 8 18 4. WAIVER OF ALLOWANCE. A member receiving a disability 8 19 retirement allowance under this section may file an 8 20 application to receive benefits pursuant to section 97B.50, 8 21 subsection 2, in lieu of receiving a disability retirement 8 22 allowance under this section, if the member becomes eligible 8 23 for benefits under section 97B.50, subsection 2. An 8 24 application to receive benefits pursuant to section 97B.50, 8 25 subsection 2, shall be filed with the department within sixty 8 26 days of becoming eligible for benefits pursuant to that 8 27 section or the member shall be ineligible to elect coverage 8 28 under that section. On the first of the month following the 8 29 month in which a member's application is approved by the 8 30 department, the member's election of coverage under section 8 31 97B.50, subsection 2, shall become effective and the member's 8 32 eligibility to receive a disability retirement allowance 8 33 pursuant to this section shall cease. Benefits payable 8 34 pursuant to section 97B.50, subsection 2, shall be calculated 8 35 using the option choice the member selected for payment of a 9 1 disability retirement allowance pursuant to this section. An 9 2 application to elect coverage under section 97B.50, subsection 9 3 2, is irrevocable upon approval by the department. 9 4 5. OFFSET TO ALLOWANCE. Notwithstanding any provisions to 9 5 the contrary in state law, or any applicable contract or 9 6 policy, any amounts which may be paid or payable by the 9 7 employer under any workers' compensation, unemployment 9 8 compensation, or other law to a member, and any disability 9 9 payments the member receives pursuant to the federal Social 9 10 Security Act, 42 U.S.C. } 423 et seq., shall be offset against 9 11 and payable in lieu of any retirement allowance payable 9 12 pursuant to this section on account of the same disability. 9 13 6. REEXAMINATION OF MEMBERS RETIRED ON ACCOUNT OF 9 14 DISABILITY. 9 15 a. Once each year during the first five years following 9 16 the retirement of a member under this section, and once in 9 17 every three-year period thereafter, the department may, and 9 18 upon the member's application shall, require any member 9 19 receiving an in-service or ordinary disability retirement 9 20 allowance who has not yet attained the age of fifty-five years 9 21 to undergo a medical examination as arranged by the medical 9 22 board as established by this section. The examination shall 9 23 be made by the medical board or by an additional physician or 9 24 physicians designated by the medical board. If any member 9 25 receiving an in-service or ordinary disability retirement 9 26 allowance who has not attained the age of fifty-five years 9 27 refuses to submit to the medical examination, the allowance 9 28 may be discontinued until the member's withdrawal of the 9 29 refusal, and should the member's refusal continue for one 9 30 year, all rights in and to the member's disability retirement 9 31 allowance shall be revoked by the department. 9 32 b. If a member is determined under paragraph "a" to be no 9 33 longer eligible for in-service or ordinary disability 9 34 benefits, all benefits paid under this section shall cease. 9 35 The member shall be eligible to receive benefits calculated 10 1 under section 97B.49B or 97B.49C, as applicable, when the 10 2 member reaches age fifty-five. 10 3 7. REEMPLOYMENT. 10 4 a. If a member receiving a disability retirement allowance 10 5 is returned to covered employment, the member's disability 10 6 retirement allowance shall cease, the member shall again 10 7 become an active member, and shall contribute thereafter at 10 8 the same rate payable by similarly classified members. If a 10 9 member receiving a disability retirement allowance returns to 10 10 special service employment, then the period of time the member 10 11 received a disability retirement allowance shall constitute 10 12 eligible service as defined in section 97B.49B, subsection 1, 10 13 or section 97B.49C, subsection 1, as applicable. Upon 10 14 subsequent retirement, the member's retirement allowance shall 10 15 be calculated as provided in section 97B.48A. 10 16 b. (1) If a member receiving a disability retirement 10 17 allowance is engaged in a gainful occupation that is not 10 18 covered employment, the member's disability retirement 10 19 allowance shall be reduced, if applicable, as provided in this 10 20 paragraph. 10 21 (2) If the member is engaged in a gainful occupation 10 22 paying more than the difference between the member's net 10 23 disability retirement allowance and one and one-half times the 10 24 reemployment comparison amount for that member, then the 10 25 amount of the member's disability retirement allowance shall 10 26 be reduced to an amount such that the member's net disability 10 27 retirement allowance plus the amount earned by the member 10 28 shall equal one and one-half times the reemployment comparison 10 29 amount for that member. 10 30 (3) The member shall submit sufficient documentation to 10 31 the system to permit the system to determine the member's net 10 32 disability retirement allowance and earnings from a gainful 10 33 occupation that is not covered employment for the applicable 10 34 year. 10 35 (4) This paragraph does not apply to a member who is at 11 1 least fifty-five years of age and would have completed a 11 2 sufficient number of years of service if the member had 11 3 remained in active special service employment. For purposes 11 4 of this subparagraph, a sufficient number of years of service 11 5 shall be twenty-five for a special service member as described 11 6 in section 97B.49B or twenty-two years of service for a 11 7 special service member as described in section 97B.49C. 11 8 8. DEATH BENEFITS. A member who is receiving an in- 11 9 service or ordinary disability retirement allowance under this 11 10 section shall be treated as having elected a lifetime monthly 11 11 retirement allowance with death benefits payable under section 11 12 97B.52, subsection 2, unless the member elects an optional 11 13 form of benefit provided under section 97B.51, which shall be 11 14 actuarially equivalent to the lifetime monthly retirement 11 15 allowance provided under this section. 11 16 9. MEDICAL BOARD. The system shall designate a medical 11 17 board to be composed of three physicians from the university 11 18 of Iowa hospitals and clinics who shall arrange for and pass 11 19 upon the medical examinations required under this section and 11 20 shall report in writing to the department the conclusions and 11 21 recommendations upon all matters duly referred to the medical 11 22 board. Each report of a medical examination under this 11 23 section shall include the medical board's findings as to the 11 24 extent of the member's physical or mental impairment. Except 11 25 as required by this section, each report shall be confidential 11 26 and shall be maintained in accordance with the federal 11 27 Americans with Disabilities Act, and any other state or 11 28 federal law containing requirements for confidentiality of 11 29 medical records. 11 30 10. LIABILITY OF THIRD PARTIES – SUBROGATION. 11 31 a. If a member receives an injury for which benefits are 11 32 payable under this section, and if the injury is caused under 11 33 circumstances creating a legal liability for damages against a 11 34 third party other than the system, the member or the member's 11 35 legal representative may maintain an action for damages 12 1 against the third party. If a member or a member's legal 12 2 representative commences such an action, the plaintiff member 12 3 or representative shall serve a copy of the original notice 12 4 upon the system not less than ten days before the trial of the 12 5 action, but a failure to serve the notice does not prejudice 12 6 the rights of the system, and the following rights and duties 12 7 ensue: 12 8 (1) The system shall be indemnified out of the recovery of 12 9 damages to the extent of benefit payments made by the system, 12 10 with legal interest, except that the plaintiff member's 12 11 attorney fees may be first allowed by the district court. 12 12 (2) The system has a lien on the damage claim against the 12 13 third party and on any judgment on the damage claim for 12 14 benefits for which the system is liable. In order to continue 12 15 and preserve the lien, the system shall file a notice of the 12 16 lien within thirty days after receiving a copy of the original 12 17 notice in the office of the clerk of the district court in 12 18 which the action is filed. 12 19 b. If a member fails to bring an action for damages 12 20 against a third party within thirty days after the system 12 21 requests the member in writing to do so, the system is 12 22 subrogated to the rights of the member and may maintain the 12 23 action against the third party, and may recover damages for 12 24 the injury to the same extent that the member may recover 12 25 damages for the injury. If the system recovers damages in the 12 26 action, the court shall enter judgment for distribution of the 12 27 recovery as follows: 12 28 (1) A sum sufficient to repay the system for the amount of 12 29 such benefits actually paid by the system up to the time of 12 30 the entering of the judgment. 12 31 (2) A sum sufficient to pay the system the present worth, 12 32 computed at the interest rate provided in section 535.3 for 12 33 court judgments and decrees, of the future payments of such 12 34 benefits, for which the system is liable, but the sum is not a 12 35 final adjudication of the future payment which the member is 13 1 entitled to receive. 13 2 (3) Any balance shall be paid to the member. 13 3 c. Before a settlement is effective between the system and 13 4 a third party who is liable for any injury, the member must 13 5 consent in writing to the settlement; and if the settlement is 13 6 between the member and a third party, the system must consent 13 7 in writing to the settlement; or on refusal to consent, in 13 8 either case, the district court in the county in which either 13 9 the employer of the member or the system is located must 13 10 consent in writing to the settlement. 13 11 d. For purposes of subrogation under this section, a 13 12 payment made to an injured member or the member's legal 13 13 representative, by or on behalf of a third party or the third 13 14 party's principal or agent, who is liable for, connected with, 13 15 or involved in causing the injury to the member, shall be 13 16 considered paid as damages because the injury was caused under 13 17 circumstances creating a legal liability against the third 13 18 party, whether the payment is made under a covenant not to 13 19 sue, compromise settlement, denial of liability, or is 13 20 otherwise made. 13 21 11. DOCUMENT SUBMISSIONS. A member retired under this 13 22 section, in order to be eligible for continued receipt of 13 23 retirement benefits, shall submit to the department any 13 24 documentation the department may reasonably request which will 13 25 provide information needed to determine payments to the member 13 26 under this section. 13 27 12. ADDITIONAL CONTRIBUTIONS. The expenses incurred in 13 28 the administration of this section by the system shall be paid 13 29 through additional contributions as determined pursuant to 13 30 section 97B.49B, subsection 3, or section 97B.49C, subsection 13 31 3, as applicable. 13 32 13. APPLICABILITY – RETROACTIVITY. 13 33 a. This section applies to a member who becomes disabled 13 34 on or after July 1, 2000, and also applies to a member who 13 35 becomes disabled prior to July 1, 2000, if the member has not 14 1 terminated special service employment as of June 30, 2000. 14 2 b. To qualify for benefits under this section, a member 14 3 must file a completed application with the department within 14 4 one year of the member's termination of employment. A member 14 5 eligible for a disability retirement allowance under this 14 6 section is entitled to receipt of retroactive adjustment 14 7 payments for no more than six months immediately preceding the 14 8 month in which the completed application for receipt of a 14 9 disability retirement allowance under this section is 14 10 approved. 14 11 14. RULES. The department shall adopt rules pursuant to 14 12 chapter 17A specifying the application procedure for members 14 13 pursuant to this section. 14 14 Sec. 10. Section 97B.52A, subsection 1, paragraph b, Code 14 15 1999, is amended to read as follows: 14 16 b. For a member whose first month of entitlement is July 14 17 1998 or later, the member does not return to any employment 14 18 with a covered employer until the member has qualified for no 14 19 fewer than four calendar months of retirement benefits. For 14 20 purposes of this paragraph, effective July 1, 2000, any 14 21 employment with a covered employer does not include employment 14 22 as an elective official or member of the general assembly if 14 23 the member is not covered under this chapter for that 14 24 employment. 14 25 Sec. 11. Section 97B.52A, subsection 2, Code 1999, is 14 26 amended to read as follows: 14 27 2. A member may commence receiving retirement benefits 14 28 under this chapter upon satisfying eligibility requirements. 14 29 However, a retired member who commences receiving a retirement 14 30 allowance butreturns to employment before qualifying for no14 31fewer than four calendar months of retirement benefitsfails 14 32 to meet the applicable requirements of subsection 1 does not 14 33 have a bona fide retirement and any retirement allowance 14 34 received by such a member must be returned to the system 14 35 together with interest earned on the retirement allowance 15 1 calculated at a rate determined by the department. Until the 15 2 member has repaid the retirement allowance and interest, the 15 3 department may withhold any future retirement allowance for 15 4 which the member may qualify. 15 5 Sec. 12. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 15 6 Section 4 of this Act, amending section 97B.1A, subsection 24, 15 7 paragraph "b", being deemed of immediate importance, takes 15 8 effect upon enactment and is retroactively applicable to 15 9 January 1, 2000, and is applicable on and after that date. 15 10 Sec. 13. IMPLEMENTATION PROVISION. The department of 15 11 personnel shall implement the amendment to section 97B.45, 15 12 subsection 4, as provided in this Act on July 1, 2000, or on 15 13 the date that the department determines that the most recent 15 14 annual actuarial valuation of the system indicates that the 15 15 employer and employee contribution rates in effect under 15 16 section 97B.11 can absorb the costs of the amendment to 15 17 section 97B.45, subsection 4, whichever is later. However, 15 18 until the amendment to this subsection is implemented, the 15 19 department shall not credit amounts to active member 15 20 supplemental accounts provided in section 97B.49H. 15 21 EXPLANATION 15 22 This bill makes changes to the peace officers retirement 15 23 system (PORS) and the Iowa public employees' retirement system 15 24 (IPERS). 15 25 Code section 97A.6, governing the calculation of retirement 15 26 benefits, is amended to provide that a member of PORS receives 15 27 an additional 2.75 percent of their average final compensation 15 28 for each year of service up to a total of 32 years of service 15 29 or a maximum of 88 percent. 15 30 Code section 97B.1A, subsection 8, paragraph a, 15 31 subparagraph (1), which provides for the ability of an elected 15 32 official to opt for coverage, is amended to allow an elected 15 33 official who has opted to be covered under IPERS to opt out of 15 34 coverage while still in office. Specifically, the change 15 35 permits an official to opt out of IPERS coverage if the 16 1 official terminates employment from all employment covered 16 2 under this chapter other than as an elective official and 16 3 applies to receive a retirement benefit. 16 4 Code section 97B.1A, subsection 24, concerning the 16 5 definition of "three-year average covered wage" used in 16 6 determining IPERS retirement benefits is amended by modifying 16 7 the mechanism for reducing an IPERS member's three-year 16 8 average covered wage if the member's average wage exceeds a 16 9 certain dollar level. Current law provides that a member's 16 10 "three-year average covered wage" will be calculated using the 16 11 highest seven years for a member who retires during calendar 16 12 year 2000, 2001, or 2002, and whose three-year average covered 16 13 wage exceeds $55,000. The bill provides that only the highest 16 14 six years will be used, that the income threshold will 16 15 increase to $65,000 for persons retiring on or after January 16 16 1, 2000, but before 2001, and to $75,000 for persons retiring 16 17 in calendar year 2001, and that the modification ends after 16 18 calendar year 2001 and not after calendar year 2002. The 16 19 portion of this change which applies to members retiring 16 20 during calendar year 2000 is effective upon enactment and 16 21 applicable on or after January 1, 2000. 16 22 Code section 97B.45, is amended to provide that a member 16 23 retiring on or after July 1, 2000, or the implementation date, 16 24 if later, is eligible for normal retirement without penalty 16 25 based upon a rule of 85 where the combination of a member's 16 26 age and years of service equals or exceeds 85, and the member 16 27 is at least 55 years of age. Under current law, a member may 16 28 retire without penalty based upon a rule of 88. The bill 16 29 provides that this change shall not be implemented until the 16 30 actuary determines that the system can afford this change. 16 31 Code section 97B.49F, governing the determination of the 16 32 cost of living dividend, is amended. The dividend program for 16 33 pre-July 1990 retirees is amended to provide that 100 percent, 16 34 and not 80 percent, of the percentage based on the consumer 16 35 price index shall be used in determining the appropriate 17 1 percentage to use in determining the dividend adjustment each 17 2 year. The current 3 percent annual limitation on this 17 3 percentage is not changed by this bill. 17 4 New Code section 97B.50A provides for disability retirement 17 5 benefits for special service members of the Iowa public 17 6 employees' retirement system (IPERS). A special service 17 7 member of IPERS for purposes of this bill includes a person 17 8 who is a member of a protection occupation or who is a 17 9 sheriff, deputy sheriff, or airport fire fighter. 17 10 The new Code section provides that an eligible special 17 11 service member of IPERS who becomes disabled for duty while in 17 12 the performance of the member's duty is entitled to an in- 17 13 service disability retirement allowance equal to the greater 17 14 of 1/12 of 60 percent of the member's three-year average 17 15 covered wage or what the member would receive under a normal 17 16 retirement. For purposes of establishing an in-service 17 17 disability, heart or lung disease is presumed to have been 17 18 contracted while on duty. The new Code section also provides 17 19 that a member who becomes disabled and unable to perform the 17 20 person's job is entitled to an ordinary disability retirement 17 21 allowance equal to the greater of 1/12 of 50 percent of the 17 22 member's three-year average covered wage or what the member 17 23 would receive under a normal retirement. For both disability 17 24 retirements, the department of personnel makes the decision as 17 25 to whether the person is totally disabled. The new Code 17 26 section also has provisions for offsets to disability 17 27 allowances, reexamination of members on disability, 17 28 reemployment, death benefits, establishing the medical board, 17 29 and subrogation. The new Code section provides that the costs 17 30 of administering the disability program shall be paid through 17 31 contributions from the special service employees and their 17 32 employers in the same manner as additional benefits are paid. 17 33 (The employer pays 60 percent and the employee pays 40 17 34 percent). The new Code section applies to a special service 17 35 member who became disabled prior to the effective date of the 18 1 bill, if the member did not terminate the special service 18 2 employment before the effective date of the bill. 18 3 Code section 97B.52A, concerning bona fide retirement, is 18 4 modified to permit an elective official or member of the 18 5 general assembly to remain in that position and still receive 18 6 a retirement allowance following termination of other covered 18 7 employment so long as the elective official or member of the 18 8 general assembly is not receiving IPERS coverage for the 18 9 elected position. 18 10 LSB 5508XS 78 18 11 ec/as/5.1
Text: SF02228 Text: SF02230 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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Last update: Wed Mar 1 03:35:02 CST 2000
URL: /DOCS/GA/78GA/Legislation/SF/02200/SF02229/000222.html
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