Text: SSB03208 Text: SSB03210 Text: SSB03200 - SSB03299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 1 3 ACCIDENT, AND DISABILITY SYSTEM 1 4 Section 1. Section 97A.5, subsection 1, Code 1999, is 1 5 amended to read as follows: 1 6 1. BOARD OF TRUSTEES. A board of trustees of the Iowa 1 7 department of public safety peace officers' retirement, 1 8 accident, and disability system is created. The general 1 9 responsibility for the proper operation of the system is 1 10 vested in the board of trustees. The board of trustees is 1 11 constituted as follows: The commissioner of public safety, 1 12 who is chairperson of the board, the treasurer of state,and1 13 an actively engaged member of the system, to be chosen by 1 14 secret ballot by the actively engaged members of the system, 1 15 and a retired member of the system, to be chosen by secret 1 16 ballot by the retired members of the system. Both members of 1 17 the system shall serve for a term of two years. 1 18 Sec. 2. Section 97A.5, subsection 2, Code 1999, is amended 1 19 to read as follows: 1 20 2. VOTING. Each trustee shall be entitled to one vote on 1 21 said board andtwothree concurring votes shall be necessary 1 22 for a decision by the trustees on any question at any meeting 1 23 of said board. 1 24 Sec. 3. Section 97A.6, subsection 2, Code 1999, is amended 1 25 to read as follows: 1 26 2. Allowance on service retirement. 1 27 a. Upon retirement from service prior to July 1, 1990, a 1 28 member shall receive a service retirement allowance which 1 29 shall consist of a pension which equals fifty percent of the 1 30 member's average final compensation. 1 31 b. Upon retirement from service on or after July 1, 1990, 1 32 but before July 1, 1992, a member shall receive a service 1 33 retirement allowance which shall consist of a pension which 1 34 equals fifty-four percent of the member's average final 1 35 compensation. 2 1 c. Commencing July 1, 1992, but before July 1, 2000, the 2 2 board of trustees shall increase the percentage multiplier of 2 3 the member's average final compensation by an additional two 2 4 percent each July 1 until reaching sixty percent of the 2 5 member's average final compensation. 2 6 d. Upon retirement from service on or after July 1, 2000, 2 7 a member shall receive a service retirement allowance which 2 8 shall consist of a pension which equals sixty and one-half 2 9 percent of the member's average final compensation. 2 10d.e. Commencing July 1, 1990, if the member has completed 2 11 more than twenty-two years of creditable service, the service 2 12 retirement allowance shall consist of a pension which equals 2 13 the amount provided in paragraphs "b"and, "c", or "d", plus 2 14 an additional percentage as set forth below: 2 15 (1) For a member who terminates service, other than by 2 16 death or disability, on or after July 1, 1990, but before July 2 17 1, 1991, and who does not withdraw the member's contributions 2 18 pursuant to section 97A.16, upon the member's retirement there 2 19 shall be added three-tenths percent of the member's average 2 20 final compensation for each year of service over twenty-two 2 21 years, excluding years of service after the member's fifty- 2 22 fifth birthday. However, this subparagraph does not apply to 2 23 more than eight additional years of service. 2 24 (2) For a member who terminates service, other than by 2 25 death or disability, on or after July 1, 1991, but before 2 26 October 16, 1992, and who does not withdraw the member's 2 27 contributions pursuant to section 97A.16, upon the member's 2 28 retirement there shall be added six-tenths percent of the 2 29 member's average final compensation for each year of service 2 30 over twenty-two years, excluding years of service after the 2 31 member's fifty-fifth birthday. However, this subparagraph 2 32 does not apply to more than eight additional years of service. 2 33 (3) For a member who terminates service, other than by 2 34 death or disability, on or after October 16, 1992, but before 2 35 July 1, 1996, and who does not withdraw the member's 3 1 contributions pursuant to section 97A.16, upon the member's 3 2 retirement there shall be added six-tenths percent of the 3 3 member's average final compensation for each year of service 3 4 over twenty-two years. However, this subparagraph does not 3 5 apply to more than eight additional years of service. 3 6 (4) For a member who terminates service, other than by 3 7 death or disability, on or after July 1, 1996, but before July 3 8 1, 1998, and who does not withdraw the member's contributions 3 9 pursuant to section 97A.16, upon the member's retirement there 3 10 shall be added one and one-half percent of the member's 3 11 average final compensation for each year of service over 3 12 twenty-two years. However, this subparagraph does not apply 3 13 to more than eight additional years of service. 3 14 (5) For a member who terminates service, other than by 3 15 death or disability, on or after July 1, 1998, but before July 3 16 1, 2000, and who does not withdraw the member's contributions 3 17 pursuant to section 97A.16, upon the member's retirement there 3 18 shall be added one and one-half percent of the member's 3 19 average final compensation for each year of service over 3 20 twenty-two years. However, this subparagraph does not apply 3 21 to more than ten additional years of service. 3 22 (6) For a member who terminates service, other than by 3 23 death or disability, on or after July 1, 2000, and who does 3 24 not withdraw the member's contributions pursuant to section 3 25 97A.16, upon the member's retirement there shall be added two 3 26 and three-fourths percent of the member's average final 3 27 compensation for each year of service over twenty-two years. 3 28 However, this subparagraph does not apply to more than ten 3 29 additional years of service. 3 30 Sec. 4. Section 97A.6, subsection 8, paragraph b, 3 31 unnumbered paragraph 1, Code 1999, is amended to read as 3 32 follows: 3 33 In lieu of the payment specified in paragraph "a", a 3 34 beneficiary meeting the qualifications of paragraph "c" may 3 35 elect to receive a monthly pension equal to one-twelfth of 4 1 forty percent of the average final compensation of the member, 4 2 but not less than an amount equal totwentytwenty-five 4 3 percent of the monthly earnable compensation paid to an active 4 4 member having the rank of senior patrol officer of the Iowa 4 5 state patrol if the member was in service at the time of 4 6 death. For a member not in service at the time of death, the 4 7 pension shall be reduced as provided in subsection 1, 4 8 paragraph "b". 4 9 Sec. 5. Section 97A.6, subsection 14, paragraph a, Code 4 10 1999, is amended to read as follows: 4 11 a. Effective July 1, 1980, and on each July 1 thereafter, 4 12 the monthly pensions authorized in this section payable to 4 13 retired members and to beneficiaries, except children of a 4 14 deceased member, shall be adjusted as provided in this 4 15 paragraph. The monthly pension of each retired member and 4 16 each beneficiary shall be adjusted by adding to that monthly 4 17 pension an amount equal to the amounts determined in 4 18 subparagraphs (1) and (2). The adjusted monthly pension shall 4 19 not be less than the amount which was paid at the time of the 4 20 member's retirement or death. 4 21 (1) An amount equal to thefollowing percentages of the4 22 difference between the monthly earnable compensation payable 4 23 to an active member of the department, of the same rank and 4 24 position on the salary scale as was held by the retired or 4 25 deceased member at the time of the member's retirement or 4 26 death, for July of the preceding year and the monthly earnable 4 27 compensation payable to an active member of the department of 4 28 the same rank and position on the salary scale for July of the 4 29 year just beginningshall be added to the monthly pension of4 30each retired member and each beneficiary as followsmultiplied 4 31 by the following applicable percentage: 4 32(1)(a)ThirtyForty percent for members receiving a 4 33 service retirement allowance and for beneficiaries receiving a 4 34 pension under subsection 9 of this section. 4 35(2)(b)ThirtyForty percent for members with five or more 5 1 years of membership service who are receiving an ordinary 5 2 disability retirement allowance. 5 3(3)(c)FifteenTwenty-four percent for members with less 5 4 than five years of membership service who are receiving an 5 5 ordinary disability retirement allowance, and for 5 6 beneficiaries receiving a pension under subsection 8 of this 5 7 section. 5 8(4)(d)Thirty-three and one-thirdForty percent for 5 9 members receiving an accidental disability allowance. 5 10The adjusted monthly pension shall not be less than the5 11amount which was paid at the time of the member's retirement5 12or death.5 13 (2) The following applicable amount determined as follows: 5 14 (a) Fifteen dollars where the member's retirement date was 5 15 less than five years prior to the effective date of the 5 16 adjustment. 5 17 (b) Twenty dollars where the member's retirement date was 5 18 at least five years, but less than ten years, prior to the 5 19 effective date of the adjustment. 5 20 (c) Twenty-five dollars where the member's retirement date 5 21 was at least ten years, but less than fifteen years, prior to 5 22 the effective date of the adjustment. 5 23 (d) Thirty dollars where the member's retirement date was 5 24 at least fifteen years, but less than twenty years, prior to 5 25 the effective date of the adjustment. 5 26 (e) Thirty-five dollars where the member's retirement date 5 27 was at least twenty years prior to the effective date of the 5 28 adjustment. 5 29 The amount added to the monthly pension of a surviving 5 30 spouse receiving a pension under subsection 12, paragraph "a", 5 31 of this section shall be equal to one-half the amount that 5 32 would have been added to the monthly pension of the retired 5 33 member. 5 34 As of the first of July of each year, the monthly pension 5 35 payable to each surviving child under the provisions of 6 1 subsections 8, 9, and 12 of this section shall be adjusted to 6 2 equal six percent of the monthly earnable compensation payable 6 3 on that July 1 to an active member having the rank of senior 6 4 patrol officer of the Iowa state patrol. 6 5 Sec. 6. Section 97A.8, subsection 1, paragraph b, Code 6 6 1999, is amended to read as follows: 6 7 b. On the basis of the rate of interest and of the 6 8 mortality, interest, and other tables adopted by the board of 6 9 trustees, the board of trustees, upon the advice of the 6 10 actuary hired by the board for that purpose, shall make each 6 11 valuation required by this chapter and shall immediately after 6 12 making such valuation, determine the "normal contribution 6 13 rate". The normal contribution rate shall be the rate percent 6 14 of the earnable compensation of all members obtained by 6 15 deducting from the total liabilities of the fund the sum of 6 16 the amount of the funds in hand to the credit of the fund and 6 17 dividing the remainder by one percent of the present value of 6 18 the prospective future compensation of all members as computed 6 19 on the basis of the rate of interest and of mortality and 6 20 service tables adopted by the board of trustees, all reduced 6 21 by the employee contribution made pursuant to this subsection. 6 22 However, the normal rate of contribution shall not be less 6 23 than seventeen percent. The normal rate of contribution shall 6 24 be determined by the board of trustees after each valuation. 6 25 To assist in determining the normal rate of contribution, the 6 26 board of trustees may adopt a smoothing method for valuing the 6 27 assets of the system. The smoothing method is designed to 6 28 reduce changes in the normal contribution rate which could 6 29 result from fluctuations in the market value of the assets of 6 30 the system. 6 31 Sec. 7. Section 97A.8, subsection 1, paragraph c, 6 32 unnumbered paragraph 2, Code 1999, is amended by striking the 6 33 unnumbered paragraph. 6 34 Sec. 8. PEACE OFFICERS RETIREMENT SYSTEM LEGISLATIVE 6 35 INTENT. It is the intent of the general assembly that peace 7 1 officer members of the retirement system be afforded a 7 2 retirement benefit based upon ninety percent of a peace 7 3 officer's earnable compensation at the time of a member's 7 4 retirement after the peace officer has completed thirty years 7 5 of service when the retirement system can afford it on an 7 6 actuarially sound basis. 7 7 DIVISION II 7 8 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 7 9 Sec. 9. Section 97B.1A, Code 1999, is amended by adding 7 10 the following new subsection: 7 11 NEW SUBSECTION. 2A. "Accumulated employer contributions" 7 12 means an amount equal to the total obtained as of any date, by 7 13 accumulating each individual contribution by the employer for 7 14 the member with interest plus interest dividends as provided 7 15 in section 97B.70, for all completed calendar years and for 7 16 any completed calendar year for which the interest dividend 7 17 has not been declared and for completed months of partially 7 18 completed calendar years, compounded as provided in section 7 19 97B.70. 7 20 Sec. 10. Section 97B.1A, subsection 8, paragraph a, 7 21 subparagraph (1), Code 1999, is amended to read as follows: 7 22 (1) Elective officials in positions for which the 7 23 compensation is on a fee basis, elective officials of school 7 24 districts, elective officials of townships, and elective 7 25 officials of other political subdivisions who are in part-time 7 26 positions. An elective official covered under this chapter 7 27 may terminate membership under this chapter by informing the 7 28 department in writing of the expiration of the member's term 7 29 of office or by informing the department of the member's 7 30 intent to terminate membership for employment as an elective 7 31 official and establishing that the member has a bona fide 7 32 termination of employment from all employment covered under 7 33 this chapter other than as an elective official and that the 7 34 member has filed a completed application for benefits form 7 35 with the department. A county attorney is an employee for 8 1 purposes of this chapter whether that county attorney is 8 2 employed on a full-time or part-time basis. 8 3 Sec. 11. Section 97B.1A, subsection 8, paragraph a, Code 8 4 1999, is amended by adding the following new subparagraph: 8 5 NEW SUBPARAGRAPH. (12) Persons employed by a municipal 8 6 water utility or waterworks that has established a pension and 8 7 annuity retirement system for its employees pursuant to 8 8 chapter 412. 8 9 Sec. 12. Section 97B.1A, subsection 8, paragraph b, 8 10 subparagraph (3), Code 1999, is amended to read as follows: 8 11 (3) Employees hired for temporary employment of less than 8 12 six consecutive months or one thousand forty hours in a 8 13 calendar year. An employee who works for an employer for six 8 14 or more consecutive monthsin a calendar yearor who works for 8 15 an employer for more than one thousand forty hours in a 8 16 calendar year is not a temporary employee under this 8 17 subparagraph. Adjunct instructors are temporary employees for 8 18 the purposes of this chapter. As used in this section, unless 8 19 the context otherwise requires, "adjunct instructors" means 8 20 instructors employed by a community college or a university 8 21 governed by the state board of regents without a continuing 8 22 contract, whose teaching load does not exceed one-half time 8 23 for two full semesters or three full quarters per calendar 8 24 year. 8 25 Sec. 13. Section 97B.1A, Code 1999, is amended by adding 8 26 the following new subsection: 8 27 NEW SUBSECTION. 14A. "Member account" means the account 8 28 established for each member and includes the member's 8 29 accumulated contributions and the member's share of the 8 30 accumulated employer contributions as provided in section 8 31 97B.53. "Member account" does not mean the supplemental 8 32 account for active members. 8 33 Sec. 14. Section 97B.1A, Code 1999, is amended by adding 8 34 the following new subsection: 8 35 NEW SUBSECTION. 22A. "Supplemental account for active 9 1 members" or "supplemental account" means the account 9 2 established for each active member under section 97B.49H. 9 3 Sec. 15. Section 97B.1A, subsection 24, paragraph a, Code 9 4 1999, is amended to read as follows: 9 5 24. a. "Three-year average covered wage" means, for a 9 6 member who retires prior to July 1, 2003, a member's covered 9 7 wages averaged for the highest three years of the member's 9 8 service, except as otherwise provided in this subsection. The 9 9 highest three years of a member's covered wages shall be 9 10 determined using calendar years. However, if a member's final 9 11 quarter of a year of employment does not occur at the end of a 9 12 calendar year, the department may determine the wages for the 9 13 third year by computing the average quarter of all quarters 9 14 from the member's highest calendar year of covered wages not 9 15 being used in the selection of the two highest years and using 9 16 the computed average quarter for each quarter in the third 9 17 year in which no wages have been reported in combination with 9 18 the final quarter or quarters of the member's service to 9 19 create a full year. However, the department shall not use the 9 20 member's final quarter of wages if using that quarter would 9 21 reduce the member's three-year average covered wage. If the 9 22 three-year average covered wage of a member exceeds the 9 23 highest maximum covered wages in effect for a calendar year 9 24 during the member's period of service, the three-year average 9 25 covered wage of the member shall be reduced to the highest 9 26 maximum covered wages in effect during the member's period of 9 27 service. Notwithstanding any other provision of this 9 28 paragraph to the contrary, a member's wages for the third year 9 29 as computed by this paragraph shall not exceed, by more than 9 30 three percent, the member's highest actual calendar year of 9 31 covered wages for a member whose first month of entitlement is 9 32 January 1999 or later. 9 33 Sec. 16. Section 97B.1A, subsection 24, paragraph b, 9 34 subparagraph (4), Code 1999, is amended to read as follows: 9 35 (4) For a member who retires on or after January 1, 2000, 10 1 but before January 1,20032001, and whose three-year average 10 2 covered wage at the time of retirement exceedsfifty-five10 3 sixty-five thousand dollars, the member's covered wages 10 4 averaged for the highestsevensix years of the member's 10 5 service orfifty-fivesixty-five thousand dollars, whichever 10 6 is greater. 10 7 Sec. 17. Section 97B.1A, subsection 24, paragraph b, Code 10 8 1999, is amended by adding the following new subparagraph: 10 9 NEW SUBPARAGRAPH. (5) For a member who retires on or 10 10 after January 1, 2001, but before January 1, 2002, and whose 10 11 three-year average covered wage at the time of retirement 10 12 exceeds seventy-five thousand dollars, the member's covered 10 13 wages averaged for the highest six years of the member's 10 14 service or seventy-five thousand dollars, whichever is 10 15 greater. 10 16 Sec. 18. Section 97B.1A, subsection 24, Code 1999, is 10 17 amended by adding the following new paragraph: 10 18 NEW PARAGRAPH. c. "Three-year average covered wage" 10 19 means, for a member who retires on or after July 1, 2003, the 10 20 greater of the member's covered wages averaged for a member's 10 21 highest twelve consecutive quarters of service or the member's 10 22 covered wages averaged for a member's highest three calendar 10 23 years of service. The department shall adopt rules to 10 24 implement this paragraph in accordance with the requirements 10 25 of this chapter and the federal Internal Revenue Code. 10 26 Sec. 19. Section 97B.1A, subsection 26, paragraph a, Code 10 27 1999, is amended to read as follows: 10 28 a. (1) "Wages" means all remuneration for employment, 10 29 includingthe, but not limited to, any of the following: 10 30 (a) The cash value ofremuneration paid in a medium other10 31than cash, but not including the cash value of remuneration10 32paid in a medium other than cash aswage equivalents not 10 33 necessitated by the convenience of the employer. Theamount10 34agreed upon by the employer and employee for remuneration paid10 35in a medium other than cashfair market value of such wage 11 1 equivalents shall be reported to the department by the 11 2 employerand is conclusive of the value of the remuneration. 11 3"Wages" does not include special lump sum payments made as11 4payment for accrued sick leave or accrued vacation or payments11 5made as an incentive for early retirement or as payments made11 6upon dismissal, severance, or a special bonus payment.11 7 (b) The remuneration paid to an employee before employee- 11 8 paid contributions are made to plans qualified under sections 11 9 125, 129, 401, 403, 408, and 457 of the Internal Revenue Code. 11 10 (c)Wages forFor an elected officialmeans, other than a 11 11 a member of the general assembly, the total compensation 11 12 received by the elected official, whether paid in the form of 11 13 per diem or annual salaryreceived by an elected official, 11 14 exclusive of expense and travel allowances. 11 15 (d)Wages forFor a member of the general assembly,means11 16 the total compensation received by a member of the general 11 17 assembly, whether paid in the form of per diem or annual 11 18 salary, exclusive of expense and travel allowances paid to a 11 19 member of the general assembly except as otherwise provided in 11 20 thisparagraphsubparagraph subdivision. Wages includes per 11 21 diem payments paid to members of the general assembly during 11 22 interim periods between sessions of the general assembly. 11 23 Wages also includes daily allowances to members of the general 11 24 assembly for nontravel expenses of office during a session of 11 25 the general assembly, but does not include the portion of the 11 26 daily allowance which exceeds the maximum established by law 11 27 for members from Polk county. 11 28 (e) Payments for compensatory time earned that are 11 29 received in lieu of taking regular work hours off. However, 11 30 "wages" does not include payments for compensatory time earned 11 31 in excess of two hundred forty hours per year. 11 32 (2) "Wages" does not include any of the following: 11 33 (a) The cash value of wage equivalents necessitated by the 11 34 convenience of the employer. 11 35 (b) Payments made for accrued sick leave or accrued 12 1 vacation leave that are not being used to replace regular work 12 2 hours, whether paid in a lump sum or in installments. 12 3 (c) Payments made as an incentive for early retirement or 12 4 as payment made upon dismissal or severance from employment, 12 5 or a special bonus payment intended as an early retirement 12 6 incentive, whether paid in a lump sum or in installments. 12 7 (d) Employer-paid contributions to, and any distributions 12 8 from, plans, programs, or arrangements qualified under section 12 9 117, 120, 125, 129, 401, 403, 408, or 457 of the Internal 12 10 Revenue Code. 12 11 (e) Employer-paid contributions for coverage under, or 12 12 distributions from, an accident, health, or life insurance 12 13 plan, program, or arrangement. 12 14 (f) Workers' compensation and unemployment compensation 12 15 payments. 12 16 (g) Disability payments. 12 17 (h) Reimbursements of employee business expenses except 12 18 for those expenses included as wages for a member of the 12 19 general assembly. 12 20 (i) Payments for allowances made to an employee that are 12 21 not included in an employee's federal taxable income except 12 22 for those allowances included as wages for a member of the 12 23 general assembly. 12 24 (j) Payments of damages, attorney fees, interest, and 12 25 penalties made to satisfy a grievance or wage claim. 12 26 (k) Payments for services as an independent contractor. 12 27 (l) Payments made by an entity that is not an employer 12 28 under this chapter. 12 29 (m) Payments made in lieu of any employer-paid group 12 30 insurance coverage. 12 31 (n) Payments made for the difference between the costs of 12 32 single and family insurance coverage. 12 33 (o) Payments made by an employer to reimburse employees 12 34 for the cost of insurance coverage and for other fringe 12 35 benefits or expenses. 13 1 Sec. 20. Section 97B.5, Code 1999, is amended to read as 13 2 follows: 13 3 97B.5 STAFF. 13 4 Subject to other provisions of this chapter, the department 13 5 may employ personnel as necessary for the administration of 13 6 the system, including but not limited to a chief investment 13 7 officer and a chief benefits officer. The maximum number of 13 8 full-time equivalent employees specified by the general 13 9 assembly for the department for administration of the system 13 10 for a fiscal year shall not be reduced by any authority other 13 11 than the general assembly. The staff shall be appointed 13 12 pursuant to chapter 19A. The department shall not appoint or 13 13 employ a person who is an officer or committee member of a 13 14 political party organization or who holds or is a candidate 13 15 forana partisan elective public office. The department may 13 16 employ attorneys and contract with attorneys and legal firms 13 17 for the provision of legal counsel and advice in the 13 18 administration of this chapter and chapter 97C. The 13 19 department may execute contracts with investment advisors, 13 20 consultants, and managers outside state government in the 13 21 administration of this chapter. The department may delegate 13 22 to any person such authority as it deems reasonable and proper 13 23 for the effective administration of this chapter, and may bond 13 24 any person handling moneys or signing checks under this 13 25 chapter. 13 26 Sec. 21. Section 97B.9, unnumbered paragraph 1, Code 1999, 13 27 is amended to read as follows: 13 28Contributions unpaid on the date on which they are due and13 29payable as prescribed by the department,An employer shall 13 30bearbe charged the greater of ten dollars per occurrence or 13 31 interest at the combined interest and dividend rate required 13 32 under section 97B.70 for the applicable calendar year,13 33provided that thefor contributions unpaid on the date on 13 34 which they are due and payable as prescribed by the 13 35 department. The department mayprescribe fair and reasonable14 1regulations pursuant toadopt rules prescribing circumstances 14 2 for which the interest or charge shall not accrue with respect 14 3 to contributions required. Interest or charges collected 14 4 pursuant to this section shall be paid into the Iowa public 14 5 employees' retirement fund. 14 6 Sec. 22. Section 97B.9, subsection 4, Code 1999, is 14 7 amended to read as follows: 14 8 4. Regardless of any potentially applicable statute of 14 9 limitations, if the department finds that the employer or 14 10 employeeor employer, or both, have erroneously underpaid 14 11 contributions, theemployer shall pay the employer's share of14 12contributions and interest and the interest assessed to the14 13employee's share of contributionsdepartment shall notify the 14 14 employer and employee in writing of the total amount of the 14 15 underpayment, including interest, and the employer's and 14 16 employee's share of the underpayment. The department shall 14 17 collect from the employer the total amount of the 14 18 underpayment, including the employer's share, the employee's 14 19 share, and the interest assessed to both shares of the 14 20 underpayment, regardless of whether the employee has 14 21 reimbursed the employer for the employee's share of the 14 22 underpayment. The employee shall be obligated to pay only the 14 23 employee's share of the underpaid contributions, without 14 24 interest, to the employer, who shall then remit them to the14 25department. The employer may collect the employee's share of 14 26 underpaid contributions from the employee or the employee's 14 27 estate. The employer may collect the employee's share through 14 28 a deduction from the employee's wages, or by maintaining a 14 29 legal action against the employee or the employee's estate. 14 30 For purposes of section 1526 of the federal Taxpayer Relief 14 31 Act of 1997, eligible participants, as defined by section 14 32 1526, may make payments of contributions under this section 14 33 without regard to the limitations of section 415(c)(1) of the 14 34 federal Internal Revenue Code. 14 35 Sec. 23. Section 97B.11, unnumbered paragraph 2, Code 15 1 1999, is amended by striking the unnumbered paragraph. 15 2 Sec. 24. NEW SECTION. 97B.14A WAGE REPORTING. 15 3 An employer shall report wages of employees covered by this 15 4 chapter to the department in a manner and form as prescribed 15 5 by the department. If the wages reported by an employer 15 6 appear to be a distortion of the normal wage progression 15 7 pattern for an employee, the department may request that the 15 8 employer provide documentation indicating that the wages were 15 9 not misreported for the purposes of causing an increase in the 15 10 retirement allowance or other payments authorized to be made 15 11 by this chapter. If the department determines that the wages 15 12 of an employee were misreported, the employer shall prepare 15 13 and file wage adjustments allocating the wages to the proper 15 14 wage reporting period. 15 15 Sec. 25. Section 97B.17, subsection 2, Code 1999, is 15 16 amended to read as follows: 15 17 2. Records specifying amounts accumulated in members' 15 18activeaccounts and supplemental accounts. 15 19 Sec. 26. Section 97B.25, Code 1999, is amended to read as 15 20 follows: 15 21 97B.25 APPLICATIONS FOR BENEFITS. 15 22 A representative designated by the chief benefits officer 15 23 and referred to in this chapter as a retirement benefits 15 24specialistofficer shall promptly examine applications for 15 25 retirement benefits and on the basis of facts found shall 15 26 determine whether or not the claim is valid. If the claim is 15 27 valid, the retirement benefitsspecialistofficer shall send a 15 28 notification to the member stating the option the member has 15 29 selected pursuant tosections 97B.49A through 97B.49G, as15 30applicable, orsection 97B.51, the month with respect to which 15 31 benefits shall commence, and the monthly benefit amount 15 32 payable. If the claim is invalid, the retirement benefits 15 33specialistofficer shall promptly notify the applicant and any 15 34 other interested party of the decision and the reasons A 15 35 retirement application shall not be amended or revoked by the 16 1 member once the first retirement allowance is paid. A 16 2 member's death during the first month of entitlement shall not 16 3 invalidate an approved application. 16 4 Sec. 27. Section 97B.42A, Code 1999, is amended by adding 16 5 the following new subsection: 16 6 NEW SUBSECTION. 3A. A person who is employed in a 16 7 position as an employee as defined in section 97B.1A, 16 8 subsection 8, paragraph "a", subparagraph (12), on July 1, 16 9 2000, and who has not elected out of coverage under this 16 10 chapter prior to that date, shall begin coverage under the 16 11 system on July 1, 2000, unless, on or before August 31, 2000, 16 12 the person files an application with appropriate documentation 16 13 to elect coverage under an alternative pension and annuity 16 14 retirement system established pursuant to chapter 412. If a 16 15 person elects coverage under the alternative pension and 16 16 annuity retirement system, the period of time from July 1, 16 17 2000, until the date the person's election of coverage is 16 18 effective shall not constitute service for purposes of 16 19 coverage under this chapter and a wage adjustment shall be 16 20 processed for the person based on any contributions collected 16 21 pursuant to this chapter during that period of time and shall 16 22 be credited pursuant to section 97B.10. A decision to elect 16 23 coverage under an alternative pension and annuity retirement 16 24 system established pursuant to chapter 412 under this 16 25 subsection is irrevocable upon approval from the department. 16 26 A person who becomes a member of the Iowa public employees' 16 27 retirement system pursuant to this subsection, and who has one 16 28 or more years of covered wages, may purchase credit, pursuant 16 29 to section 97B.73, for one or more quarters of service prior 16 30 to August 1, 2000, in which the person was employed in a 16 31 position as described by section 97B.1A, subsection 8, 16 32 paragraph "a", subparagraph (12), but was not a member of the 16 33 system. 16 34 Sec. 28. Section 97B.42A, subsection 4, Code 1999, is 16 35 amended to read as follows: 17 1 4. A person who becomes a member of the system pursuant to 17 2 subsection 3, or who is a member of the system, and who has 17 3 one or more years of covered wages, may purchase credit, 17 4 pursuant to section 97B.73, for one or more quarters of 17 5 service prior to January 1, 1999, in which the person was 17 6 employed in a position as described in section 97B.1A, 17 7 subsection 8, paragraph "a", but was not a member of the 17 8 system. 17 9 Sec. 29. Section 97B.44, Code 1999, is amended to read as 17 10 follows: 17 11 97B.44 BENEFICIARY. 17 12 Each member shall designate on a form to be furnished by 17 13 the department a beneficiary for death benefits payable under 17 14 this chapter on the death of the member. The designation may 17 15 be changed from time to time by the member by filing a new 17 16 designation with the department. A designation or change in 17 17 designation made by a member on or after July 1, 2000, shall 17 18 contain the written consent of the member's spouse, if 17 19 applicable. The designation of a beneficiary is not 17 20 applicable if the member receives a refund of all 17 21 contributions of the member. If a member who has received a 17 22 refund of contributions returns to employment, the member 17 23 shall file a new designation with the department. 17 24 If a member has not designated a beneficiary on a form 17 25 furnished by the department, or if there are no surviving 17 26 designated beneficiaries of a member, death benefits payable 17 27 under this chapter shall be paid to the member's estate. 17 28 Sec. 30. Section 97B.48, subsection 1, Code 1999, is 17 29 amended to read as follows: 17 30 1. Retirement allowances shall be paid monthly, except 17 31 that an allowance of less than six hundred dollars a year may, 17 32 at the member's option, be paid as a lump sum in an amount 17 33 equal to the sum of the member's and employer's accumulated 17 34 contributions and the retirement dividends standing to the 17 35 member's credit before December 31, 1966. Receipt of the 18 1 lump-sum payment by a member shall terminate any and all 18 2 entitlement for the period of service covered of the member 18 3 under this chapter and the member shall not be eligible to buy 18 4 back the period of service. 18 5 Sec. 31. Section 97B.48A, subsection 1, unnumbered 18 6 paragraph 1, Code 1999, is amended to read as follows: 18 7 If a member who has not reached the member's sixty-fifth 18 8 birthday and who has a bona fide retirement under this chapter 18 9 is in regular full-time employment during a calendar year, the 18 10 member's retirement allowance shall be reduced by fifty cents 18 11 for each dollar the member earns over the limit provided in 18 12 this subsection. However, employment is not full-time 18 13 employment until the member receives remuneration in an amount 18 14 in excess oftwelvefourteen thousand dollars for a calendar 18 15 year, or an amount equal to the amount of remuneration 18 16 permitted for a calendar year for persons under sixty-five 18 17 years of age before a reduction in federal social security 18 18 retirement benefits is required, whichever is higher. 18 19 Effective the first of the month in which a member attains the 18 20 age of sixty-five years, a retired member may receive a 18 21 retirement allowance without a reduction after return to 18 22 covered employment regardless of the amount of remuneration 18 23 received. 18 24 Sec. 32. Section 97B.48A, subsection 3, Code 1999, is 18 25 amended to read as follows: 18 26 3. Upon a retirement after reemployment, a retired member 18 27 may have the retired member's retirement allowance 18 28 redetermined under this section or section 97B.48,sections18 2997B.49A through 97B.49H,section 97B.50, or section 97B.51, 18 30 whichever is applicable, based upon the addition of credit for 18 31 the years of membership service of the employee after 18 32 reemployment, the covered wage during reemployment, and the 18 33 age of the employee after reemployment. The member shall 18 34 receive a single retirement allowance calculated from both 18 35 periods of membership service, one based on the initial 19 1 retirement and one based on the second retirement following 19 2 reemployment. If the total years of membership service and 19 3 prior service of a member who has been reemployed equals or 19 4 exceeds thirty, the years of membership service on which the 19 5 original retirement allowance was based may be reduced by a 19 6 fraction of the years of service equal to the number of years 19 7 by which the total years of membership service and prior 19 8 service exceeds thirty divided by thirty, if this reduction in 19 9 years of service will increase the total retirement allowance 19 10 of the member. The additional retirement allowance calculated 19 11 for the period of reemployment shall be added to the 19 12 retirement allowance calculated for the initial period of 19 13 membership service and prior service, adjusted as provided in 19 14 this subsection. The retirement allowance calculated for the 19 15 initial period of membership service and prior service shall 19 16 not be adjusted for any other factor than years of service. 19 17 The retired member shall not receive a retirement allowance 19 18 based upon more than a total of thirty years of service. 19 19 Effective July 1, 1998, a redetermination of a retirement 19 20 allowance as authorized by this subsection for a retired 19 21 member whose combined service exceeds the applicable years of 19 22 service for that member as provided in sections 97B.49A 19 23 through 97B.49G shall have the determination of the member's 19 24 reemployment benefit based upon the percentage multiplier as 19 25 determined for that member as provided in sections 97B.49A 19 26 through 97B.49G. 19 27 Sec. 33. Section 97B.48A, subsection 4, Code 1999, is 19 28 amended to read as follows: 19 29 4. The department shall pay to the member the accumulated 19 30 contributions of the member and all of the employer 19 31 contributions, plus interest plus interest dividends as 19 32 provided in section 97B.70, for all completed calendar years, 19 33 compounded as provided in section 97B.70, on the covered wages 19 34 earned by a retired member that are not used in the 19 35 recalculation of the retirement allowance of a member. A 20 1 payment of contributions to a member pursuant to this 20 2 subsection shall be considered a retirement payment and not a 20 3 refund and the member shall not be eligible to buy back the 20 4 period of reemployment service. 20 5 Sec. 34. Section 97B.49B, subsection 1, paragraph d, Code 20 6 1999, is amended by adding the following new subparagraph: 20 7 NEW SUBPARAGRAPH. (7) An employee covered by the merit 20 8 system as provided in chapter 19A whose primary duty is 20 9 providing airport security and who carries or is licensed to 20 10 carry a firearm while performing those duties. 20 11 Sec. 35. Section 97B.49F, subsection 1, paragraph b, 20 12 subparagraph (2), subparagraph subdivision (a), Code 1999, is 20 13 amended to read as follows: 20 14 (a) The percentage representingeighty percent ofthe 20 15 percentage increase in the consumer price index published in 20 16 the federal register by the federal department of labor, 20 17 bureau of labor statistics, that reflects the percentage 20 18 increase in the consumer price index for the twelve-month 20 19 period ending June 30 of the year that the dividend is to be 20 20 paid. 20 21 Sec. 36. Section 97B.49F, subsection 1, paragraph c, Code 20 22 1999, is amended to read as follows: 20 23 c. If a member eligible to receive a cost-of-living 20 24 dividend dies before November 1 of a year, a cost-of-living 20 25 dividend shall not be payable in November of that year in the 20 26 name of the member. If a member dies on or after November 1, 20 27 but before payment of a dividend is made in that month, the 20 28 full amount of the retirement dividend for that year shall be 20 29 paid in the member's name upon notification of the member's 20 30 death. 20 31 Sec. 37. Section 97B.49F, subsection 2, paragraph a, Code 20 32 1999, is amended to read as follows: 20 33 a. Commencing January 1, 1999, all members who retired on 20 34 or after July 1, 1990, and who have been retired for at least 20 35 one year as of the date the dividend is payable, or a 21 1 beneficiary or contingent annuitant of such a member who 21 2 receives a monthly benefit, shall be eligible to receive a 21 3 favorable experience dividend, payable on the last business 21 4 day in January of each year pursuant to the requirements of 21 5 this subsection. If the member, beneficiary, or contingent 21 6 annuitant eligible to receive a favorable experience dividend 21 7 dies before January 1 of a year, a favorable experience 21 8 dividend shall not be payable in January of that year in the 21 9 name of the member, beneficiary, or contingent annuitant. 21 10 However, if the member, beneficiary, or contingent annuitant 21 11 dies on or after January 1 but before the dividend is paid in 21 12 that month, the full amount of the dividend payable in that 21 13 month shall be paid in the name of the applicable member, 21 14 beneficiary, or contingent annuitant, upon notification of 21 15 death. 21 16 Sec. 38. Section 97B.49F, subsection 2, paragraph c, Code 21 17 1999, is amended by adding the following new subparagraph: 21 18 NEW SUBPARAGRAPH. (3A) Notwithstanding the provisions of 21 19 this paragraph to the contrary, moneys credited to the reserve 21 20 account in any applicable year shall not exceed an amount 21 21 which, if credited to the reserve account, would exceed an 21 22 amount that the system's actuary determines is sufficient to 21 23 pay the maximum favorable experience dividend for each of the 21 24 next following ten years, based on reasonable actuarial 21 25 assumptions. 21 26 Sec. 39. Section 97B.49F, subsection 2, paragraph d, Code 21 27 1999, is amended to read as follows: 21 28 d. The favorable experience dividend is calculated by 21 29 multiplying thetotal of themonthlybenefit payments of21 30 retirement allowance payable to the retiree, beneficiary, or 21 31 contingent annuitant for the previouscalendar yearDecember 21 32 by twelve, and then multiplying that amount by the number of 21 33 complete years the member has been retired or would have been 21 34 retired if living as of the date the dividend is payable, and 21 35 by the applicable percentage. For purposes of this paragraph, 22 1 the applicable percentage is the percentage, not to exceed 22 2 three percent, that the department determines shall be applied 22 3 in calculating the favorable experience dividend if the 22 4 department determines that the reserve account is sufficiently 22 5 funded to make a distribution. In making its determination, 22 6 the department shall consider, but not be limited to, the 22 7 amounts credited to the reserve account, the distributions 22 8 from the reserve account made in previous years, the 22 9 likelihood of future credits to and distributions from the 22 10 reserve account, and the distributions paid under subsection 22 11 1. 22 12 Sec. 40. Section 97B.49G, Code 1999, is amended by adding 22 13 the following new subsection: 22 14 NEW SUBSECTION. 12. PROBATION AND PAROLE OFFICERS III 22 15 JULY 1994 - JULY 1998. The department shall establish and 22 16 maintain additional contribution accounts for employees of 22 17 judicial district departments of correctional services who 22 18 were employed as parole officers III and probation officers 22 19 III during any portion of the period from July 1, 1994, 22 20 through June 30, 1998. A probation officer III or parole 22 21 officer III who made contributions to the retirement fund 22 22 during the period from July 1, 1994, through June 30, 1998, as 22 23 a member of a protection occupation shall have credited to an 22 24 additional contribution account for that probation or parole 22 25 officer an amount equal to the contributions made to the 22 26 retirement fund in excess of 3.7 percent of the probation or 22 27 parole officer's covered wages paid from July 1, 1994, through 22 28 June 30, 1998, plus interest at the applicable statutory 22 29 interest rates established in this chapter. Moneys deposited 22 30 in an additional contribution account established pursuant to 22 31 this section shall be payable in a lump sum to the probation 22 32 or parole officer at retirement or upon request for a refund 22 33 of moneys in the account. If the probation or parole officer 22 34 dies prior to receipt of moneys in the account, the 22 35 beneficiary designated by that probation or parole officer 23 1 shall receive a lump sum payment of moneys in the account. 23 2 The payment of moneys from the account created in this 23 3 subsection shall not be annuitized. A probation officer III 23 4 or parole officer III for which an account is established 23 5 under this subsection shall not receive credit for eligible 23 6 service as a member of a protection occupation for that 23 7 service. 23 8 Sec. 41. Section 97B.49H, subsection 5, paragraph c, Code 23 9 1999, is amended to read as follows: 23 10 c. Upon retirement, the member shall elect to receive in a 23 11 lump sum payment or in an annuity, in addition to any other 23 12 payment provided by this chapter, all amounts credited to the 23 13 member's supplemental account. The annuity provided under 23 14 this section shall be payable in the same form, at the same 23 15 time, and to the same persons, including beneficiaries and 23 16 contingent annuitants, that the member elects for the payments 23 17 under the other provisions of this chapter providing for the 23 18 monthly payment of allowances. The amount of an annuity 23 19 provided under this section, including amounts payable to 23 20 beneficiaries and contingent annuitants, shall be calculated 23 21 using the amount credited to the member's supplemental account 23 22 as of the date of retirement, and the assumptions underlying 23 23 the actuarial tables used to calculate optional allowances 23 24 under section 97B.51. 23 25 Sec. 42. Section 97B.50, subsection 2, Code 1999, is 23 26 amended to read as follows: 23 27 2. a. A vested member who retires from the system due to 23 28 disability and commences receiving disability benefits 23 29 pursuant to the federal Social Security Act, 42 U.S.C. } 423 23 30 et seq., and who has not reached the normal retirement date, 23 31 shall receive benefits as selected undersections 97B.49A23 32through 97B.49G, as applicablesection 97B.51, and shall not 23 33 have benefits reduced upon retirement as required under 23 34 subsection 1 regardless of whether the member has completed 23 35 thirty or more years of membership service. However, the 24 1 benefits shall be suspended during any period in which the 24 2 member returns to covered employment. This section takes 24 3 effect July 1, 1990, for a member meeting the requirements of 24 4 this paragraph who retired from the system at any time after 24 5 July 4, 1953. Eligible members retiring on or after July 1, 24 6 2000, are entitled to the receipt of retroactive adjustment 24 7 paymentsback to July 1, 1990for no more than twelve months 24 8 immediately preceding the month in which written notice of 24 9 retirement due to disability was submitted to the department, 24 10 notwithstanding the requirements of subsection 4. 24 11 b. A vested member who retires from the system due to 24 12 disability and commences receiving disability benefits 24 13 pursuant to the federal Railroad Retirement Act, 45 U.S.C. } 24 14 231 et seq., and who has not reached the normal retirement 24 15 date, shall receive benefits as selected undersections24 1697B.49A through 97B.49G, as applicablesection 97B.51, and 24 17 shall not have benefits reduced upon retirement as required 24 18 under subsection 1 regardless of whether the member has 24 19 completed thirty or more years of membership service. 24 20 However, the benefits shall be suspended during any period in 24 21 which the member returns to covered employment. This section 24 22 takes effect July 1, 1990, for a member meeting the 24 23 requirements of this paragraph who retired from the system at 24 24 any time since July 4, 1953. Eligible members retiring on or 24 25 after July 1, 2000, are entitled to the receipt of retroactive 24 26 adjustment paymentsback to July 1, 1990for no more than 24 27 twelve months immediately preceding the month in which written 24 28 notice of retirement due to disability was submitted to the 24 29 department, notwithstanding the requirements of subsection 4. 24 30 Sec. 43. NEW SECTION. 97B.50A DISABILITY BENEFITS FOR 24 31 SPECIAL SERVICE MEMBERS. 24 32 1. DEFINITIONS. For purposes of this section, unless the 24 33 context otherwise provides: 24 34 a. "Member" means a vested member who is classified as a 24 35 special service member under section 97B.1A, subsection 22, at 25 1 the time of the alleged disability. "Member" does not mean a 25 2 volunteer fire fighter. 25 3 b. "Net disability retirement allowance" means the amount 25 4 determined by subtracting the amount paid during the previous 25 5 calendar year by the member for health insurance or similar 25 6 health care coverage for the member and the member's 25 7 dependents from the amount of the member's disability 25 8 retirement allowance, including any dividends and 25 9 distributions from supplemental accounts, paid for that year 25 10 pursuant to this section. 25 11 c. "Reemployment comparison amount" means an amount equal 25 12 to the current covered wages of an active special service 25 13 member at the same position on the salary scale within the 25 14 rank or position the member held at the time the member 25 15 received a disability retirement allowance pursuant to this 25 16 section. If the rank or position held by the member at the 25 17 time of retirement pursuant to this section is abolished, the 25 18 amount shall be computed by the department as though the rank 25 19 or position had not been abolished and salary increases had 25 20 been granted on the same basis as granted to other ranks or 25 21 positions by the former employer of the member. The 25 22 reemployment comparison amount shall not be less than the 25 23 three-year average covered wage of the member, based on all 25 24 regular and special service covered under this chapter. 25 25 2. IN-SERVICE DISABILITY RETIREMENT ALLOWANCE. 25 26 a. A member who is injured in the performance of the 25 27 member's duties, and otherwise meets the requirements of this 25 28 subsection shall receive an in-service disability retirement 25 29 allowance under this subsection, in lieu of a monthly 25 30 retirement allowance as provided in section 97B.49A, 97B.49B, 25 31 97B.49C, 97B.49D, or 97B.49G, as applicable. 25 32 b. Upon application of a member, a member who has become 25 33 totally and permanently incapacitated for duty in the member's 25 34 special service occupation as the natural and proximate result 25 35 of an injury, disease, or exposure occurring or aggravated 26 1 while in the actual performance of duty at some definite place 26 2 and time shall be eligible to retire under this subsection, 26 3 provided that the medical board, as established by this 26 4 section, shall certify that the member is mentally or 26 5 physically incapacitated for further performance of duty, that 26 6 the incapacity is likely to be permanent, and that the member 26 7 should be retired. The department shall make the final 26 8 determination, based on the medical evidence received, of a 26 9 member's total and permanent disability. However, if a 26 10 person's special service membership in the system first 26 11 commenced on or after July 1, 2000, the member shall not be 26 12 eligible for benefits with respect to a disability which would 26 13 not exist, but for a medical condition that was known to exist 26 14 on the date that membership commenced. A member who is denied 26 15 a benefit under this subsection, by reason of a finding by the 26 16 department that the member is not mentally or physically 26 17 incapacitated for the further performance of duty, shall be 26 18 entitled to be restored to active service in the same or 26 19 comparable special service occupation position held by the 26 20 member immediately prior to the application for disability 26 21 benefits. 26 22 c. Disease under this subsection shall mean heart disease 26 23 or any disease of the lungs or respiratory tract and shall be 26 24 presumed to have been contracted while on active duty as a 26 25 result of strain, exposure, or the inhalation of noxious 26 26 fumes, poison, or gases. However, if a person's special 26 27 service membership in the system first commenced on or after 26 28 July 1, 2000, and the heart disease or disease of the lungs or 26 29 respiratory tract would not exist, but for a medical condition 26 30 that was known to exist on the date that special service 26 31 membership commenced, the presumption established in this 26 32 paragraph shall not apply. 26 33 d. Upon retirement for an in-service disability as 26 34 provided by this subsection, a member shall receive the 26 35 greater of a monthly in-service disability retirement 27 1 allowance calculated under this subsection or a monthly 27 2 retirement allowance as provided in section 97B.49A, 97B.49B, 27 3 97B.49C, 97B.49D, or 97B.49G, as applicable. The monthly in- 27 4 service disability allowance calculated under this subsection 27 5 shall consist of an allowance equal to one-twelfth of sixty 27 6 percent of the member's three-year average covered wage or its 27 7 actuarial equivalent as provided under section 97B.51. 27 8 3. ORDINARY DISABILITY RETIREMENT ALLOWANCE. 27 9 a. A member who otherwise meets the requirements of this 27 10 subsection shall receive an ordinary disability retirement 27 11 allowance under this subsection, in lieu of a monthly 27 12 retirement allowance as provided in section 97B.49A, 97B.49B, 27 13 97B.49C, 97B.49D, or 97B.49G, as applicable. 27 14 b. Upon application of a member, a member who has become 27 15 totally and permanently incapacitated for duty in the member's 27 16 special service occupation shall be eligible to retire under 27 17 this subsection, provided that the medical board, as 27 18 established by this section, shall certify that the member is 27 19 mentally or physically incapacitated for further performance 27 20 of duty, that the incapacity is likely to be permanent, and 27 21 that the member should be retired. The department shall make 27 22 the final determination, based on the medical evidence 27 23 received, of a member's total and permanent disability. 27 24 However, if a person's special service membership in the 27 25 system first commenced on or after July 1, 2000, the member 27 26 shall not be eligible for benefits with respect to a 27 27 disability which would not exist, but for a medical condition 27 28 that was known to exist on the date that special service 27 29 membership commenced. A member who is denied a benefit under 27 30 this subsection, by reason of a finding by the department that 27 31 the member is not mentally or physically incapacitated for the 27 32 further performance of duty, shall be entitled to be restored 27 33 to active service in the same or comparable special service 27 34 occupation position held by the member immediately prior to 27 35 the application for disability benefits. 28 1 c. Upon retirement for an ordinary disability as provided 28 2 by this subsection, a member shall receive the greater of a 28 3 monthly ordinary disability retirement allowance calculated 28 4 under this subsection or a monthly retirement allowance as 28 5 provided in section 97B.49A, 97B.49B, 97B.49C, 97B.49D, or 28 6 97B.49G, as applicable. The monthly ordinary disability 28 7 allowance calculated under this subsection shall consist of an 28 8 allowance equal to one-twelfth of fifty percent of the 28 9 member's three-year average covered wage or its actuarial 28 10 equivalent as provided under section 97B.51. 28 11 4. WAIVER OF ALLOWANCE. A member receiving a disability 28 12 retirement allowance under this section may file an 28 13 application to receive benefits pursuant to section 97B.50, 28 14 subsection 2, in lieu of receiving a disability retirement 28 15 allowance under this section, if the member becomes eligible 28 16 for benefits under section 97B.50, subsection 2. An 28 17 application to receive benefits pursuant to section 97B.50, 28 18 subsection 2, shall be filed with the department within sixty 28 19 days after the member becomes eligible for benefits pursuant 28 20 to that section or the member shall be ineligible to elect 28 21 coverage under that section. On the first of the month 28 22 following the month in which a member's application is 28 23 approved by the department, the member's election of coverage 28 24 under section 97B.50, subsection 2, shall become effective and 28 25 the member's eligibility to receive a disability retirement 28 26 allowance pursuant to this section shall cease. Benefits 28 27 payable pursuant to section 97B.50, subsection 2, shall be 28 28 calculated using the option choice the member selected for 28 29 payment of a disability retirement allowance pursuant to this 28 30 section. An application to elect coverage under section 28 31 97B.50, subsection 2, is irrevocable upon approval by the 28 32 department. 28 33 5. OFFSET TO ALLOWANCE. Notwithstanding any provisions to 28 34 the contrary in state law, or any applicable contract or 28 35 policy, any amounts which may be paid or payable by the 29 1 employer under any workers' compensation, unemployment 29 2 compensation, or other law to a member, and any disability 29 3 payments the member receives pursuant to the federal Social 29 4 Security Act, 42 U.S.C. } 423 et seq., shall be offset against 29 5 and payable in lieu of any retirement allowance payable 29 6 pursuant to this section on account of the same disability. 29 7 6. REEXAMINATION OF MEMBERS RETIRED ON ACCOUNT OF 29 8 DISABILITY. 29 9 a. Once each year during the first five years following 29 10 the retirement of a member under this section, and once in 29 11 every three-year period thereafter, the department may, and 29 12 upon the member's application shall, require any member 29 13 receiving an in-service or ordinary disability retirement 29 14 allowance who has not yet attained the age of fifty-five years 29 15 to undergo a medical examination as arranged by the medical 29 16 board as established by this section. The examination shall 29 17 be made by the medical board or by an additional physician or 29 18 physicians designated by the medical board. If any member 29 19 receiving an in-service or ordinary disability retirement 29 20 allowance who has not attained the age of fifty-five years 29 21 refuses to submit to the medical examination, the allowance 29 22 may be discontinued until the member's withdrawal of the 29 23 refusal, and should the member's refusal continue for one 29 24 year, all rights in and to the member's disability retirement 29 25 allowance shall be revoked by the department. 29 26 b. If a member is determined under paragraph "a" to be no 29 27 longer eligible for in-service or ordinary disability 29 28 benefits, all benefits paid under this section shall cease. 29 29 The member shall be eligible to receive benefits calculated 29 30 under section 97B.49B or 97B.49C, as applicable, when the 29 31 member reaches age fifty-five. 29 32 7. REEMPLOYMENT. 29 33 a. If a member receiving a disability retirement allowance 29 34 is returned to covered employment, the member's disability 29 35 retirement allowance shall cease, the member shall again 30 1 become an active member, and shall contribute thereafter at 30 2 the same rate payable by similarly classified members. If a 30 3 member receiving a disability retirement allowance returns to 30 4 special service employment, then the period of time the member 30 5 received a disability retirement allowance shall constitute 30 6 eligible service as defined in section 97B.49B, subsection 1, 30 7 or section 97B.49C, subsection 1, as applicable. Upon 30 8 subsequent retirement, the member's retirement allowance shall 30 9 be calculated as provided in section 97B.48A. 30 10 b. (1) If a member receiving a disability retirement 30 11 allowance is engaged in a gainful occupation that is not 30 12 covered employment, the member's disability retirement 30 13 allowance shall be reduced, if applicable, as provided in this 30 14 paragraph. 30 15 (2) If the member is engaged in a gainful occupation 30 16 paying more than the difference between the member's net 30 17 disability retirement allowance and one and one-half times the 30 18 reemployment comparison amount for that member, then the 30 19 amount of the member's disability retirement allowance shall 30 20 be reduced to an amount such that the member's net disability 30 21 retirement allowance plus the amount earned by the member 30 22 shall equal one and one-half times the reemployment comparison 30 23 amount for that member. 30 24 (3) The member shall submit sufficient documentation to 30 25 the system to permit the system to determine the member's net 30 26 disability retirement allowance and earnings from a gainful 30 27 occupation that is not covered employment for the applicable 30 28 year. 30 29 (4) This paragraph does not apply to a member who is at 30 30 least fifty-five years of age and would have completed a 30 31 sufficient number of years of service if the member had 30 32 remained in active special service employment. For purposes 30 33 of this subparagraph, a sufficient number of years of service 30 34 shall be twenty-five for a special service member as described 30 35 in section 97B.49B or twenty-two for a special service member 31 1 as described in section 97B.49C. 31 2 8. DEATH BENEFITS. A member who is receiving an in- 31 3 service or ordinary disability retirement allowance under this 31 4 section shall be treated as having elected a lifetime monthly 31 5 retirement allowance with death benefits payable under section 31 6 97B.52, subsection 2, unless the member elects an optional 31 7 form of benefit provided under section 97B.51, which shall be 31 8 actuarially equivalent to the lifetime monthly retirement 31 9 allowance provided under this section. 31 10 9. MEDICAL BOARD. The system shall designate a medical 31 11 board to be composed of three physicians from the university 31 12 of Iowa hospitals and clinics who shall arrange for and pass 31 13 upon the medical examinations required under this section and 31 14 shall report in writing to the department the conclusions and 31 15 recommendations upon all matters duly referred to the medical 31 16 board. Each report of a medical examination under this 31 17 section shall include the medical board's findings as to the 31 18 extent of the member's physical or mental impairment. Except 31 19 as required by this section, each report shall be confidential 31 20 and shall be maintained in accordance with the federal 31 21 Americans with Disabilities Act, and any other state or 31 22 federal law containing requirements for confidentiality of 31 23 medical records. 31 24 10. LIABILITY OF THIRD PARTIES SUBROGATION. 31 25 a. If a member receives an injury for which benefits are 31 26 payable under this section, and if the injury is caused under 31 27 circumstances creating a legal liability for damages against a 31 28 third party other than the system, the member or the member's 31 29 legal representative may maintain an action for damages 31 30 against the third party. If a member or a member's legal 31 31 representative commences such an action, the plaintiff member 31 32 or representative shall serve a copy of the original notice 31 33 upon the system not less than ten days before the trial of the 31 34 action, but a failure to serve the notice does not prejudice 31 35 the rights of the system, and the following rights and duties 32 1 ensue: 32 2 (1) The system shall be indemnified out of the recovery of 32 3 damages to the extent of benefit payments made by the system, 32 4 with legal interest, except that the plaintiff member's 32 5 attorney fees may be first allowed by the district court. 32 6 (2) The system has a lien on the damage claim against the 32 7 third party and on any judgment on the damage claim for 32 8 benefits for which the system is liable. In order to continue 32 9 and preserve the lien, the system shall file a notice of the 32 10 lien within thirty days after receiving a copy of the original 32 11 notice in the office of the clerk of the district court in 32 12 which the action is filed. 32 13 b. If a member fails to bring an action for damages 32 14 against a third party within thirty days after the system 32 15 requests the member in writing to do so, the system is 32 16 subrogated to the rights of the member and may maintain the 32 17 action against the third party, and may recover damages for 32 18 the injury to the same extent that the member may recover 32 19 damages for the injury. If the system recovers damages in the 32 20 action, the court shall enter judgment for distribution of the 32 21 recovery as follows: 32 22 (1) A sum sufficient to repay the system for the amount of 32 23 such benefits actually paid by the system up to the time of 32 24 the entering of the judgment. 32 25 (2) A sum sufficient to pay the system the present worth, 32 26 computed at the interest rate provided in section 535.3 for 32 27 court judgments and decrees, of the future payments of such 32 28 benefits, for which the system is liable, but the sum is not a 32 29 final adjudication of the future payment which the member is 32 30 entitled to receive. 32 31 (3) Any balance shall be paid to the member. 32 32 c. Before a settlement is effective between the system and 32 33 a third party who is liable for any injury, the member must 32 34 consent in writing to the settlement; and if the settlement is 32 35 between the member and a third party, the system must consent 33 1 in writing to the settlement; or on refusal to consent, in 33 2 either case, the district court in the county in which either 33 3 the employer of the member or the system is located must 33 4 consent in writing to the settlement. 33 5 d. For purposes of subrogation under this section, a 33 6 payment made to an injured member or the member's legal 33 7 representative, by or on behalf of a third party or the third 33 8 party's principal or agent, who is liable for, connected with, 33 9 or involved in causing the injury to the member, shall be 33 10 considered paid as damages because the injury was caused under 33 11 circumstances creating a legal liability against the third 33 12 party, whether the payment is made under a covenant not to 33 13 sue, compromise settlement, denial of liability, or is 33 14 otherwise made. 33 15 11. DOCUMENT SUBMISSIONS. A member retired under this 33 16 section, in order to be eligible for continued receipt of 33 17 retirement benefits, shall submit to the department any 33 18 documentation the department may reasonably request which will 33 19 provide information needed to determine payments to the member 33 20 under this section. 33 21 12. ADDITIONAL CONTRIBUTIONS. The expenses incurred in 33 22 the administration of this section by the system shall be paid 33 23 through additional contributions as determined pursuant to 33 24 section 97B.49B, subsection 3, or section 97B.49C, subsection 33 25 3, as applicable. 33 26 13. APPLICABILITY RETROACTIVITY. 33 27 a. This section applies to a member who becomes disabled 33 28 on or after July 1, 2000, and also applies to a member who 33 29 becomes disabled prior to July 1, 2000, if the member has not 33 30 terminated special service employment as of June 30, 2000. 33 31 b. To qualify for benefits under this section, a member 33 32 must file a completed application with the department within 33 33 one year of the member's termination of employment. A member 33 34 eligible for a disability retirement allowance under this 33 35 section is entitled to receipt of retroactive adjustment 34 1 payments for no more than six months immediately preceding the 34 2 month in which the completed application for receipt of a 34 3 disability retirement allowance under this section is 34 4 approved. 34 5 14. RULES. The department shall adopt rules pursuant to 34 6 chapter 17A specifying the application procedure for members 34 7 pursuant to this section. 34 8 Sec. 44. Section 97B.51, Code 1999, is amended by striking 34 9 the section and inserting in lieu thereof the following: 34 10 97B.51 ALLOWANCE UPON RETIREMENT. 34 11 1. Each member has the right prior to the member's 34 12 retirement date to elect to have the member's retirement 34 13 allowance payable under one of the options set forth in this 34 14 section. The amount of the optional retirement allowance 34 15 selected in paragraph "a", "c", "d", or "e", shall be the 34 16 actuarial equivalent of the amount of the retirement allowance 34 17 otherwise payable to the member as determined by the system in 34 18 consultation with the system's actuary. The member shall make 34 19 an election by written request to the department and the 34 20 election is subject to the approval of the department. If the 34 21 member is married, election of an option under this section 34 22 requires the written acknowledgment of the member's spouse. 34 23 The member may select one of the following options: 34 24 a. At retirement, a member may designate that upon the 34 25 member's death, a specified amount of money shall be paid to a 34 26 named beneficiary, and the member's monthly retirement 34 27 allowance shall be reduced by an actuarially determined amount 34 28 to provide for the lump sum payment. The amount designated by 34 29 the member must be in thousand dollar increments and shall be 34 30 limited to the amount of the member's accumulated 34 31 contributions. The amount designated shall not lower the 34 32 monthly retirement allowance of the member by more than one- 34 33 half the amount payable as provided in paragraph "b". A 34 34 member may designate a different beneficiary at any time, 34 35 except as limited by an order that has been accepted by the 35 1 department as complying with the requirements of section 35 2 97B.39. 35 3 b. A member may elect a retirement allowance otherwise 35 4 payable to the member upon retirement under the retirement 35 5 system pursuant to this chapter, to include the applicable 35 6 provisions of sections 97B.49A through 97B.49G, and a death 35 7 benefit as provided in section 97B.52, subsection 2. 35 8 c. A member may elect an increased retirement allowance 35 9 during the member's lifetime with no death benefit after the 35 10 member's retirement date. 35 11 d. (1) A member may elect to receive a decreased 35 12 retirement allowance during the member's lifetime and have the 35 13 decreased retirement allowance, or a designated fraction 35 14 thereof, continued after the member's death to another person, 35 15 called a contingent annuitant, during the lifetime of the 35 16 contingent annuitant. The member cannot change the contingent 35 17 annuitant after the member's retirement. In case of the 35 18 election of a contingent annuitant, no death benefits, as 35 19 might otherwise be provided by this chapter, will be payable 35 20 upon the death of either the member or the contingent 35 21 annuitant after the member's retirement. 35 22 (2) In lieu of a benefit as calculated under subparagraph 35 23 (1), a member may elect to receive a decreased retirement 35 24 allowance during the member's lifetime and have the decreased 35 25 retirement allowance, or a designated fraction thereof, 35 26 continued after the member's death to another person, called a 35 27 contingent annuitant, during the lifetime of the contingent 35 28 annuitant, as determined by this subparagraph. In addition, 35 29 if the contingent annuitant dies prior to the death of the 35 30 member, the member shall receive a retirement allowance 35 31 beginning with the first month following the death of the 35 32 contingent annuitant as if the member had selected the option 35 33 provided by paragraph "b" at the time of the member's first 35 34 retirement. The member cannot change the contingent annuitant 35 35 after the member's retirement. If a contingent annuitant 36 1 receives a decreased retirement allowance under this 36 2 subparagraph following the death of the member, no death 36 3 benefits, as might otherwise be provided by this chapter, will 36 4 be payable upon the death of the contingent annuitant. 36 5 e. A member may elect to receive a decreased retirement 36 6 allowance during the member's lifetime with provision that in 36 7 event of the member's death during the first one hundred 36 8 twenty months of retirement, monthly payments of the member's 36 9 decreased retirement allowance shall be made to the member's 36 10 beneficiary until a combined total of one hundred twenty 36 11 monthly payments have been made to the member and the member's 36 12 beneficiary. When the member designates multiple 36 13 beneficiaries, the present value of the remaining payments 36 14 shall be paid in a lump sum to each beneficiary, either in 36 15 equal shares to the beneficiaries, or if the member specifies 36 16 otherwise in a written request, in the specified proportion. 36 17 A member may designate a different beneficiary at any time, 36 18 except as limited by an order that has been accepted by the 36 19 department as complying with the requirements of section 36 20 97B.39. 36 21 2. The election by a member of an option stated under this 36 22 section shall be null and void if the member dies prior to the 36 23 member's first month of entitlement. 36 24 3. A member who had elected to take an option stated in 36 25 this section, may, at any time prior to retirement, revoke 36 26 such an election by written notice to the department. A 36 27 member shall not change or revoke an election once the first 36 28 retirement allowance is paid. 36 29 Sec. 45. Section 97B.52, subsection 1, Code 1999, is 36 30 amended to read as follows: 36 31 1. If a member dies prior to the member's first month of 36 32 entitlement, the member's beneficiary shall be entitled to 36 33 receive a death benefit equal to the greater of the amount 36 34 provided in paragraph "a" or "b". 36 35 a. A lump sum payment equal to the accumulated 37 1 contributions of the member at the date of death plus the 37 2 product of an amount equal to the highest year of covered 37 3 wages of the deceased member and the number of years of 37 4 membership service divided by the applicable denominatorshall37 5be paid to the member's beneficiary in a lump sum payment. 37 6 However, a lump sum payment made to a beneficiary under this 37 7subsectionparagraph due to the death of a member shall not be 37 8 less than the amount that would have been payable on the death 37 9 of the member on June 30, 1984, under thissubsection37 10 paragraph as it appeared in the 1983 Code. 37 11 As used in thissubsectionparagraph, "applicable 37 12 denominator" means the following, based upon the type of 37 13 membership service in which the member served either on the 37 14 date of death, or if the member died after terminating 37 15 service, on the date of the member's last termination of 37 16 service: 37 17a.(1) For regular service, the applicable denominator is 37 18 thirty. 37 19b.(2) For service in a protection occupation, as defined 37 20 in section 97B.49B, the applicable denominator is twenty-five. 37 21c.(3) For service as a sheriff, deputy sheriff, or 37 22 airport fire fighter, as provided in section 97B.49C, the 37 23 applicable denominator is twenty-two. 37 24 Effective July 1, 1978, a method of payment under this 37 25subsectionparagraph filed with the department by a member 37 26 does not apply. 37 27 b. For a member who dies on or after January 1, 2001, a 37 28 lump sum payment equal to the actuarial present value of the 37 29 member's accrued benefit as of the date of death. The 37 30 actuarial equivalent present value of the member's accrued 37 31 benefit as of the date of death shall be calculated using the 37 32 same interest rate and mortality tables that are used by the 37 33 system and the system's actuary under section 97B.51, and 37 34 shall assume that the member would have retired at the 37 35 member's earliest normal retirement date. 38 1 c. The payment of a death benefit to a designated 38 2 beneficiary as provided by this subsection shall be in a lump 38 3 sum payment. However, if the designated beneficiary is a sole 38 4 individual, the beneficiary may elect to receive, in lieu of a 38 5 lump sum payment under this subsection, a monthly annuity 38 6 payable for the life of the beneficiary. The monthly annuity 38 7 shall be calculated by applying the annuity tables used by the 38 8 department to the lump sum payment under this subsection based 38 9 on the beneficiary's age. If the designated beneficiary is 38 10 more than one individual, or if the designated beneficiary is 38 11 an estate, trust, church, charity, or other similar 38 12 organization, a death benefit under this subsection shall only 38 13 be paid in a lump sum. 38 14 Sec. 46. Section 97B.52, subsection 2, Code 1999, is 38 15 amended to read as follows: 38 16 2. If a member dies on or after the first day of the 38 17 member's first month of entitlement, the excess, if any, of 38 18 the accumulated contributions by the member as of said date, 38 19 over the total gross monthly retirement allowances received by 38 20 the member under the retirement system will be paid to the 38 21 member's beneficiary unless the retirement allowance is then 38 22 being paid in accordance with section 97B.48 or with section 38 23 97B.51, subsection 1,4, 5, or 6paragraph "a", "c", "d", or 38 24 "e". 38 25 Sec. 47. Section 97B.52, subsection 5, Code 1999, is 38 26 amended to read as follows: 38 27 5. Following written notification to the department, a 38 28 beneficiary of a deceased member may waive current and future 38 29 rights to payments to which the beneficiary would otherwise be 38 30 entitled under section 97B.51,subsections 5 and 6 and this38 31sectionsubsection 1, paragraphs "a", "b", and "e". Upon 38 32 receipt of the waiver, the department shall pay the amount 38 33 designated to be received by that beneficiary to the member's 38 34 other surviving beneficiary or beneficiaries or to the estate 38 35 of the deceased member, as elected by the beneficiary in the 39 1 waiver. If the payments being waived are payable to the 39 2 member's estate and an estate is not probated, the payments 39 3 shall be paid to the deceased member's surviving spouse, or if 39 4 there is no surviving spouse, to the member's heirs other than 39 5 the beneficiary who waived the payments. 39 6 Sec. 48. Section 97B.52A, subsection 1, paragraph b, Code 39 7 1999, is amended to read as follows: 39 8 b. For a member whose first month of entitlement is July 39 9 1998 or later, but before July 2000, the member does not 39 10 return to any employment with a covered employer until the 39 11 member has qualified for no fewer than four calendar months of 39 12 retirement benefits. 39 13 Sec. 49. Section 97B.52A, subsection 1, Code 1999, is 39 14 amended by adding the following new paragraph: 39 15 NEW PARAGRAPH. c. For a member whose first month of 39 16 entitlement is July 2000 or later, the member does not return 39 17 to any employment with a covered employer until the member has 39 18 qualified for no fewer than one calendar month of retirement 39 19 benefits. For purposes of this paragraph, effective July 1, 39 20 2000, any employment with a covered employer does not include 39 21 employment as an elective official or member of the general 39 22 assembly if the member is not covered under this chapter for 39 23 that employment. 39 24 Sec. 50. Section 97B.52A, subsection 2, Code 1999, is 39 25 amended to read as follows: 39 26 2. A member may commence receiving retirement benefits 39 27 under this chapter upon satisfying eligibility requirements. 39 28 However, a retired member who commences receiving a retirement 39 29 allowance butreturns to employment before qualifying for no39 30fewer than four calendar months of retirement benefitsfails 39 31 to meet the applicable requirements of subsection 1 does not 39 32 have a bona fide retirement and any retirement allowance 39 33 received by such a member must be returned to the system 39 34 together with interest earned on the retirement allowance 39 35 calculated at a rate determined by the department. Until the 40 1 member has repaid the retirement allowance and interest, the 40 2 department may withhold any future retirement allowance for 40 3 which the member may qualify. 40 4 Sec. 51. Section 97B.52A, Code 1999, is amended by adding 40 5 the following new subsection: 40 6 NEW SUBSECTION. 4. The requirements of this section shall 40 7 apply to a lump sum payment as provided by section 97B.48, 40 8 subsection 1, and the payment of contributions as provided in 40 9 section 97B.48A, subsection 4. 40 10 Sec. 52. Section 97B.53, Code Supplement 1999, is amended 40 11 to read as follows: 40 12 97B.53 TERMINATION OF EMPLOYMENT REFUND OPTIONS. 40 13 Membership in the retirement system, and all rights to the 40 14 benefits under the system,willcease upon a member's 40 15 termination of employment with the employer prior to the 40 16 member's retirement, other than by death, and upon receipt by 40 17 the member ofthea refund of moneys in the member's 40 18accumulated contributionsaccount as provided in this section. 40 19 1. Upon the termination of employment with the employer 40 20 prior to retirement other than by death of a member, the 40 21 member's account, consisting of accumulated contributions by 40 22 the member and, for avestedmember who is vested on the date 40 23 an application for a refund is filed, the member's share of 40 24 the accumulated employer contributions for the vested member 40 25 at the date of the termination, may be paid to the member upon 40 26 application, except as provided in subsections 2, 5, and 6. 40 27 For the purpose of this subsection, the "member's share of the 40 28 accumulated employer contributions" is an amount equal to the 40 29total obtained as of any date, by accumulating each individual40 30contribution by the employer for the member with interest plus40 31interest dividends as provided in section 97B.70, for all40 32completed calendar years and for any completed calendar year40 33for which the interest dividend has not been declared and for40 34completed months of partially completed calendar years,40 35compounded as provided in section 97B.70accumulated employer 41 1 contributions of the member multiplied by a fraction of years 41 2 of service for that member as defined in section 97B.49A, 41 3 97B.49B, or 97B.49C. 41 4 2. If a vested member's employment is terminated prior to 41 5 the member's retirement, other than by death, the member may 41 6 receive a monthly retirement allowance commencing on the first 41 7 day of the month in which the member attains the age of sixty- 41 8 five years, if the member is then alive, or, if the member so 41 9 elects in accordance with section 97B.47, commencing on the 41 10 first day of the month in which the member attains the age of 41 11 fifty-five or any month thereafter prior to the date the 41 12 member attains the age of sixty-five years, and continuing on 41 13 the first day of each month thereafter during the member's 41 14 lifetime, provided the member does not receive prior to the 41 15 date the member's retirement allowance is to commence a refund 41 16 ofaccumulated contributionsmoneys in the member's account as 41 17 provided under any of the provisions of this chapter. The 41 18 amount of each such monthly retirement allowance shall be 41 19 determined as provided in either sections 97B.49A through 41 20 97B.49G, or in section 97B.50, whichever is applicable. 41 213. The accumulated contributions account of a terminated,41 22vested member shall be credited with interest, including41 23interest dividends, in the manner provided in section 97B.70.41 244.3. A terminated, vested member has the right, prior to 41 25 the commencement of the member's retirement allowance, to 41 26 receive a refund of moneys in the member'saccumulated41 27contributionsaccount, and in the event of the death of the 41 28 member prior to the commencement of the member's retirement 41 29 allowance and prior to the receipt of any such refund the 41 30 benefits of subsection 1 of section 97B.52 shall be paid. 41 315.4. A member has not terminated employment for purposes 41 32 of this section if the member accepts other covered employment 41 33 withinthirty daysfour months after receiving the last 41 34 payment of wages for covered employment, or if the member 41 35 begins covered employment prior to filing a request for a 42 1 refund with the department. 42 25A.5. Within sixty days after a member has been issued 42 3 payment for a refund of moneys in the member'saccumulated42 4contributionsaccount, the member may repay theaccumulated42 5contributionsmoneys refunded, plus interest that would have 42 6 accrued, as determined by the department, and receive credit 42 7 for membership service for the period covered by the refund 42 8 payment. 42 95B.6. A member who does not withdraw moneys in the 42 10 member'saccumulated contributionsaccount upon termination of 42 11 employment may at any time request the return of the moneys in 42 12 the member'saccumulated contributionsaccount, but if the 42 13 member receives a return ofcontributionsmoneys in the 42 14 member's account the member has waived all claims for any 42 15 other benefits and membership rights from the fund. 42 16 7. If a member is involuntarily terminated from covered 42 17 employment, has been issued payment for a refund, and is 42 18 retroactively reinstated in covered employment as a remedy for 42 19 an employment dispute, the member may receive credit for 42 20 membership service for the period covered by the refund 42 21 payment upon repayment to the department within ninety days 42 22 after the date of the order or agreement requiring 42 23 reinstatement of the amount of the refund plus interest that 42 24 would have accrued, as determined by the department. 42 256.8. The system is under no obligation to maintain the 42 26accumulated contributionmember account of a member who 42 27 terminates covered employment prior to December 31, 1998, if 42 28 the member was not vested at the time of termination. A 42 29 person who made contributions to the abolished system, who is 42 30 entitled to a refund in accordance with the provisions of this 42 31 chapter, and who has not claimed and received such a refund 42 32 prior to January 1, 1964, shall, if the person makes a claim 42 33 for refund after January 1, 1964, be required to submit proof 42 34 satisfactory to the department of the person's entitlement to 42 35 the refund. The department is under no obligation to maintain 43 1 thecontributionmember accounts of such persons after January 43 2 1, 1964. 43 37.9. Any member whose employment is terminated may elect 43 4 to leave the moneys in the member'saccumulated contributions43 5 member account in the retirement fund. 43 68.10. If an employee hired to fill a permanent position 43 7 terminates the employee's employment within six months from 43 8 the date of employment, the employer may file a claim with the 43 9 department for a refund of the funds contributed to the 43 10 department by the employer for the employee. 43 11 Sec. 53. Section 97B.53A, Code 1999, is amended to read as 43 12 follows: 43 13 97B.53A DUTY OF DEPARTMENT. 43 14Effective July 1, 1991, uponUpon a member's termination of 43 15 covered employment prior to the member's retirement, the 43 16 department shall send the member by first class mail, to the 43 17 member's last known mailing address, a notice setting forth 43 18 the balance and status of the member's account and 43 19 supplemental account and an explanation of the courses of 43 20 action available to the member under this chapter. 43 21 Sec. 54. Section 97B.53B, subsection 1, paragraph c, 43 22 unnumbered paragraph 1, Code 1999, is amended to read as 43 23 follows: 43 24 "Eligible rollover distribution" means all or any portion 43 25 of a member's account and supplemental account, except that an 43 26 eligible rollover distribution does not include any of the 43 27 following: 43 28 Sec. 55. Section 97B.60, Code 1999, is amended to read as 43 29 follows: 43 30 97B.60 ACTUARIAL INVESTIGATION. 43 31At least once in each two-year periodDuring calendar year 43 32 2002, and every four years thereafter, the department shall 43 33 cause an actuarial investigation to be made of all experience 43 34 under the retirement system. Pursuant to such an 43 35 investigation, the department shall, from time to time, 44 1 determine upon an actuarial basis the condition of the system 44 2 and shall report to the general assembly its findings and 44 3 recommendations. The department shall adopt from time to time 44 4 mortality tables and all other necessary factors for use in 44 5 all actuarial calculations required in connection with the 44 6 retirement system. 44 7 Sec. 56. Section 97B.70, Code 1999, is amended to read as 44 8 follows: 44 9 97B.70 INTEREST AND DIVIDENDS TO MEMBERS. 44 10 1. For calendar years prior to January 1, 1997, interest 44 11 at two percent per annum and interest dividends declared by 44 12 the department shall be credited to the member's contributions 44 13 and the employer's contributions to become part of the 44 14 accumulated contributions and accumulated employer 44 15 contributions thereby. 44 16 a. The average rate of interest earned shall be determined 44 17 upon the following basis: 44 18 (1) Investment income shall include interest and cash 44 19 dividends on stock. 44 20 (2) Investment income shall be accounted for on an accrual 44 21 basis. 44 22 (3) Capital gains and losses, realized or unrealized, 44 23 shall not be included in investment income. 44 24 (4) Mean assets shall include fixed income investments 44 25 valued at cost or on an amortized basis, and common stocks at 44 26 market values or cost, whichever is lower. 44 27 (5) The average rate of earned interest shall be the 44 28 quotient of the investment income and the mean assets of the 44 29 retirement fund. 44 30 b. The interest dividend shall be determined within sixty 44 31 days after the end of each calendar year as follows: 44 32 The dividend rate for a calendar year shall be the excess 44 33 of the average rate of interest earned for the year over the 44 34 statutory two percent rate plus twenty-five hundredths of one 44 35 percent. The average rate of interest earned and the interest 45 1 dividend rate in percent shall be calculated to the nearest 45 2 one hundredth, that is, to two decimal places. Interest and 45 3 interest dividends calculated pursuant to this subsection 45 4 shall be compounded annually. 45 5 2. For calendar years beginning January 1, 1997, a per 45 6 annum interest rate at one percent above the interest rate on 45 7 one-year certificates of deposit shall be credited to the 45 8 member's contributions and the employer's contributions to 45 9 become part of the accumulated contributions and accumulated 45 10 employer contributions account. For purposes of this 45 11 subsection, the interest rate on one-year certificates of 45 12 deposit shall be determined by the department based on the 45 13 average rate for such certificates of deposit as of the first 45 14 business day of each year as published in a publication of 45 15 general acceptance in the business community. The per annum 45 16 interest rate shall be credited on a quarterly basis by 45 17 applying one-quarter of the annual interest rate to the sum of 45 18 the accumulated contributions and the accumulated employer 45 19 contributions as of the end of the previous calendar quarter. 45 20 3. Interest shall be credited to the accumulated 45 21 contributions and accumulated employer contributions accounts, 45 22 and supplemental accounts of active members, inactive vested 45 23 members, and, effective January 1, 1999, to inactive nonvested 45 24 members, until the quarter prior to the quarter in which the 45 25 member's first retirement allowance is paid or in which the 45 26 member is issued a refund under section 97B.53, or in which a 45 27 death benefit is issued. 45 28 4. Prior to January 1, 1999, interest and interest 45 29 dividends shall be credited to the accumulated contributions 45 30 and accumulated employer contributions account of a person who 45 31 leaves the contributions in the retirement fund upon 45 32 termination from covered employment prior to achieving vested 45 33 status, but who subsequently returns to covered employment. 45 34 Upon return to covered employment but prior to January 1, 45 35 1999, interest and interest dividends shall be credited to the 46 1 accumulated contributions and accumulated employer 46 2 contributions account of the person commencing upon the date 46 3 on which the person has covered wages. 46 4 5. If the department no longer maintains the accumulated 46 5 contribution and accumulated employer contributions account of 46 6 the person pursuant to this chapter, but the person submits 46 7 satisfactory proof to the department that the person, or the 46 8 person's employer, did makethecontributions that should be 46 9 included in the accumulated contributions and accumulated 46 10 employer contributions account, the department shall credit 46 11 interest and interest dividends in the manner provided in 46 12 subsection 4. 46 13 Sec. 57. NEW SECTION. 97B.82 PURCHASE OF SERVICE CREDIT 46 14 DIRECT ROLLOVERS. 46 15 Effective July 1, 2002, a member may purchase any service 46 16 credit permitted under this chapter by means of a direct 46 17 rollover pursuant to rules adopted by the department and 46 18 consistent with applicable requirements of the Internal 46 19 Revenue Code. For purposes of this section, a "direct 46 20 rollover" means a transfer to the system of an eligible 46 21 rollover distribution from a qualified plan, including an 46 22 eligible rollover distribution of qualified plan assets made 46 23 through a conduit eligible retirement plan, all as described 46 24 under the Internal Revenue Code. The amount of the direct 46 25 rollover into the system cannot exceed the cost of the service 46 26 purchase by a member under this chapter. Once a direct 46 27 rollover is made, the member must forfeit the applicable 46 28 service credit under the qualified plan from which the 46 29 eligible rollover distribution is received. 46 30 Sec. 58. Section 97B.13, Code 1999, is repealed. 46 31 Sec. 59. EFFECTIVE DATE RETROACTIVE APPLICABILITY. 46 32 Section 16 of this Act, amending section 97B.1A, subsection 46 33 24, paragraph "b", being deemed of immediate importance, takes 46 34 effect upon enactment and is retroactively applicable to 46 35 January 1, 2000, and is applicable on and after that date. 47 1 Sec. 60. IMPLEMENTATION DATE. Section 57 of this Act, 47 2 creating new section 97B.82 which establishes a direct 47 3 rollover for the purchase of service credit, shall not be 47 4 implemented until the Iowa public employees' retirement system 47 5 has received a determination letter from the federal internal 47 6 revenue service approving the retirement system plan's 47 7 qualified status under Internal Revenue Code section 401(a), 47 8 as amended by section 97B.82. 47 9 Sec. 61. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM 47 10 DEFINED CONTRIBUTION OPTIONS INTERIM STUDY. It is the 47 11 intent of the general assembly that the legislative council 47 12 may appoint a legislative interim study committee during the 47 13 2000 interim to consider possible defined contribution options 47 14 for persons covered by the Iowa public employees' retirement 47 15 system. In conducting its study, the interim study committee 47 16 may consider proposals to allow members of the Iowa public 47 17 employees' retirement system to select a defined contribution 47 18 option in lieu of or in addition to the current defined 47 19 benefit plan. 47 20 DIVISION III 47 21 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 47 22 Sec. 62. Section 400.8, subsection 1, Code 1999, is 47 23 amended to read as follows: 47 24 1. The commission, when necessary under the rules, 47 25 including minimum and maximum age limits, which shall be 47 26 prescribed and published in advance by the commission and 47 27 posted in the city hall, shall hold examinations for the 47 28 purpose of determining the qualifications of applicants for 47 29 positions under civil service, other than promotions, which 47 30 examinations shall be practical in character and shall relate 47 31 to matters which will fairly test the mental and physical 47 32 ability of the applicant to discharge the duties of the 47 33 position to which the applicant seeks appointment. The 47 34 physical examination of applicants for appointment to the 47 35 positions of police officer, police matron, or fire fighter 48 1 shall be held in accordance with medical protocols established 48 2 by the board of trustees of the fire and police retirement 48 3 system established by section 411.5 and shall be conducted by 48 4 the medical board as established in section 411.5. The board 48 5 of trustees may change the medical protocols at any time the 48 6 board so determines. Thecommission shall conduct a medical48 7 physical examination of an applicant for the position of 48 8 police officer, police matron, or fire fighter shall be 48 9 conducted after a conditional offer of employment has been 48 10 made to the applicant. An applicant shall not be 48 11 discriminated against on the basis of height, weight, sex, or 48 12 race in determining physical or mental ability of the 48 13 applicant. Reasonable rules relating to strength, agility, 48 14 and general health of applicants shall be prescribed. The 48 15 costs of the physical examination required under this 48 16 subsection shall be paid from the trust and agency fund of the 48 17 city. 48 18 Sec. 63. NEW SECTION. 400.8A GUIDELINES FOR ONGOING 48 19 FITNESS FOR POLICE OFFICERS AND FIRE FIGHTERS. 48 20 The board of trustees of the fire and police retirement 48 21 system established by section 411.5, in consultation with the 48 22 medical board established in section 411.5, shall establish 48 23 and maintain protocols and guidelines for ongoing wellness and 48 24 fitness for police officers and fire fighters while in 48 25 service. The board of trustees may change the protocols and 48 26 guidelines at any time the board so determines. The protocols 48 27 and guidelines shall be established by the board of trustees 48 28 for the consideration of cities covered by this chapter and 48 29 may be applied by a city for the purpose of determining 48 30 continued wellness and fitness for members of the city's 48 31 police and fire departments. The medical board established in 48 32 section 411.5 shall provide to cities and fire and police 48 33 departments assistance regarding the possible implementation 48 34 and operation of the protocols and guidelines for ongoing 48 35 wellness and fitness provided by this section. For purposes 49 1 of this section, "wellness and fitness" means the process by 49 2 which police officers and fire fighters maintain fitness for 49 3 duty. 49 4 Sec. 64. Section 411.1, subsection 6, Code 1999, is 49 5 amended to read as follows: 49 6 6. "Child" means only surviving issue of a deceased active 49 7 or retired member, or a child legally adopted by a deceased 49 8 member prior to the member's retirement. "Child" includes 49 9 only an individual who is under the age of eighteen years, an 49 10 individual who is under the age of twenty-two years and is a 49 11 full-time student, or an individual who is disabled at the 49 12 time under the definitions used in section402202 of the 49 13 Social Security Act as amended if the disability occurred to 49 14 the individual during the time the individual was under the 49 15 age of eighteen years and the parent of the individual was an 49 16 active member of the system. 49 17 Sec. 65. Section 411.1, subsection 10, Code 1999, is 49 18 amended to read as follows: 49 19 10. "Medical board" shall mean theboard of physicians49 20 single medical provider network designated by the system as 49 21 the medical board as provided for in section 411.5. 49 22 Sec. 66. Section 411.1, subsection 12, Code 1999, is 49 23 amended to read as follows: 49 24 12. "Membership service" shall mean service as a police 49 25officersofficer or a firefightersfighter renderedsince49 26last becoming a member, or, where membership is regained as49 27provided in this chapter, all of such servicefor a city which 49 28 is credited as service pursuant to section 411.4. 49 29 Sec. 67. Section 411.1, subsection 19, Code 1999, is 49 30 amended to read as follows: 49 31 19. "Surviving spouse" shall mean the surviving spouse of 49 32 amarriage solemnized prior to retirement of adeceased member 49 33 from active service. Surviving spouse shall include a former 49 34 spouse only if the division of assets in the dissolution of 49 35 marriage decree pursuant to section 598.17 grants the former 50 1 spouse rights of a spouse under this chapter.If there is no50 2surviving spouse of a marriage solemnized prior to retirement50 3of a deceased member, surviving spouse includes a surviving50 4spouse of a marriage of two years or more duration solemnized50 5subsequent to retirement of the member.50 6 Sec. 68. Section 411.1A, Code 1999, is amended to read as 50 7 follows: 50 8 411.1A PURPOSE OF CHAPTER. 50 9 The purpose of this chapter is to promote economy and 50 10 efficiency in the municipal public safety service byproviding50 11 doing the following: 50 12 1. Provide an orderly means for police officers and fire 50 13 fighters to have a retirement system which will provide for 50 14 the payment of pensions to retired members and members 50 15 incurring disabilities, and to the surviving spouses and 50 16 dependents of deceased members. 50 17 2. Provide a comprehensive disability program for police 50 18 officers and fire fighters to include standards for entrance 50 19 physical examinations, guidelines for ongoing fitness and 50 20 wellness, disability pensions, and postdisability retirement 50 21 compliance requirements. 50 22 Sec. 69. Section 411.3, subsection 2, Code 1999, is 50 23 amended to read as follows: 50 24 2. Should any memberin any period of five consecutive50 25years after last becoming a member, be absent from service for50 26more than four yearscease to be employed as a police officer 50 27 or fire fighter by a city, or should the member become a 50 28 beneficiary or die, the member shall thereupon cease to be a 50 29 member of the system. 50 30 Sec. 70. Section 411.4, Code 1999, is amended to read as 50 31 follows: 50 32 411.4 SERVICE CREDITABLE. 50 33 1. Service for fewer than six months of a year is not 50 34 creditable as service. Service of six months or more of a 50 35 year is equivalent to one year of service, but in no case 51 1 shall more than one year of service be creditable for all 51 2 service in one calendar year, nor shall the system allow 51 3 credit as service for any period of more than one month 51 4 duration during which the member was absent without pay. 51 5 2. The system shall credit as service for a member of the 51 6 system a previous period of servicefor which theonly under 51 7 any of the following circumstances: 51 8 a. The member had withdrawn the member's accumulated 51 9 contributions, as defined in section 411.21, for the previous 51 10 period of service. 51 11 b. The member returned to service after an absence of 51 12 service of a period of less than four years from the last day 51 13 of the prior period of service. 51 14 c. The member returned to service after an absence of 51 15 service of a period of four or more years from the last day of 51 16 the prior period of service and the member had sufficient 51 17 service as of the last day of the prior period of service to 51 18 have been entitled to a retirement allowance on that date 51 19 under section 411.6, subsection 1, paragraph "b". 51 20 Sec. 71. Section 411.5, subsection 6, Code 1999, is 51 21 amended by adding the following new paragraph: 51 22 NEW PARAGRAPH. c. Notwithstanding any provision of 51 23 chapter 22 to the contrary, the system's records may be 51 24 released to any political subdivision, instrumentality, or 51 25 agency of the state solely for use in a civil or criminal law 51 26 enforcement activity pursuant to the requirements of this 51 27 paragraph. To obtain the records, the political subdivision, 51 28 instrumentality, or agency of the state shall, in writing, 51 29 certify to the system that the activity is authorized by law, 51 30 provide a written description of the information desired, and 51 31 describe the law enforcement activity for which the 51 32 information is sought. The system shall not be civilly or 51 33 criminally liable for the release of records in accordance 51 34 with the requirements of this paragraph. 51 35 Sec. 72. Section 411.5, subsection 8, Code 1999, is 52 1 amended to read as follows: 52 2 8. MEDICAL BOARD. Thesystemboard of trustees shall 52 3 designate a single medical provider network as the medical 52 4 boardto be composed of three physicians whofor the system. 52 5 The medical board shall arrange for and pass upon all medical 52 6 examinations required under the provisions of chapter 400 and 52 7 this chapter, except that forand shall assist the system in 52 8 all aspects of the comprehensive disability program described 52 9 in section 411.1A. For examinations required because of 52 10 disabilitythree physicians, a physician from theuniversity52 11of Iowa hospitals and clinics whomedical board specializing 52 12 in occupational medicine, and a second physician specializing 52 13 in an appropriate field of medicine as determined by the 52 14 occupational medicine physician shall pass upon the medical 52 15 examinations required for disability retirements, and shall 52 16 report to the system in writingitstheir conclusions and 52 17 recommendations upon all matters referred toitthe medical 52 18 board. Each report of a medical examination under section 52 19 411.6, subsections 3 and 5, shall include the medical board's 52 20 findings in accordance with section 411.6 as to the extent of 52 21 the member's physical impairment. 52 22 Sec. 73. Section 411.6, subsection 2, Code 1999, is 52 23 amended to read as follows: 52 24 2. ALLOWANCE ON SERVICE RETIREMENT. 52 25 a. The service retirement allowance for a member who 52 26 terminates service, other than by death or disability, prior 52 27 to July 1, 1990, shall consist of a pension which equals fifty 52 28 percent of the member's average final compensation. 52 29 b. The service retirement allowance for a member who 52 30 terminates service, other than by death or disability, on or 52 31 after July 1, 1990, but before July 1, 1992, shall consist of 52 32 a pension which equals fifty-four percent of the member's 52 33 average final compensation. 52 34 c. Commencing July 1, 1992, for members who terminate 52 35 service, other than by death or disability, on or after that 53 1 date, but before July 1, 2000, the system shall increase the 53 2 percentage multiplier of the member's average final 53 3 compensation by an additional two percent each July 1 until 53 4 reaching sixty percent of the member's average final 53 5 compensation. The applicable percentage multiplier shall be 53 6 the rate in effect on the date of the member's termination 53 7 from service. 53 8 d. Upon retirement from service on or after July 1, 2000, 53 9 a member shall receive a service retirement allowance which 53 10 shall consist of a pension which equals sixty-six percent of 53 11 the member's average final compensation. 53 12d.e. Commencing July 1, 1990, if the member has completed 53 13 more than twenty-two years of creditable service, the service 53 14 retirement allowance shall consist of a pension which equals 53 15 the amount provided inparagraphsparagraph "b",and"c", or 53 16 "d", plus an additional percentage as set forth below: 53 17 (1) For a member who terminates service, other than by 53 18 death or disability, on or after July 1, 1990, but before July 53 19 1, 1991, and who does not withdraw the member's contributions 53 20 pursuant to section 411.23, upon the member's retirement there 53 21 shall be added three-tenths percent of the member's average 53 22 final compensation for each year of service over twenty-two 53 23 years, excluding years of service after the member's fifty- 53 24 fifth birthday. However, this subparagraph does not apply to 53 25 more than eight additional years of service. 53 26 (2) For a member who terminates service, other than by 53 27 death or disability, on or after July 1, 1991, but before 53 28 October 16, 1992, and who does not withdraw the member's 53 29 contributions pursuant to section 411.23, upon the member's 53 30 retirement there shall be added six-tenths percent of the 53 31 member's average final compensation for each year of service 53 32 over twenty-two years, excluding years of service after the 53 33 member's fifty-fifth birthday. However, this subparagraph 53 34 does not apply to more than eight additional years of service. 53 35 (3) For a member who terminates service, other than by 54 1 death or disability, on or after October 16, 1992, but before 54 2 July 1, 1998, and who does not withdraw the member's 54 3 contributions pursuant to section 411.23, upon the member's 54 4 retirement there shall be added six-tenths percent of the 54 5 member's average final compensation for each year of service 54 6 over twenty-two years. However, this subparagraph does not 54 7 apply to more than eight additional years of service. 54 8 (4) For a member who terminates service, other than by 54 9 death or disability, on or after July 1, 1998, but before July 54 10 1, 2000, and who does not withdraw the member's contributions 54 11 pursuant to section 411.23, upon the member's retirement there 54 12 shall be added one and one-half percent of the member's 54 13 average final compensation for each year of service over 54 14 twenty-two years. However, this subparagraph does not apply 54 15 to more than eight additional years of service. 54 16 (5) For a member who terminates service, other than by 54 17 death or disability, on or after July 1, 2000, and who does 54 18 not withdraw the member's contributions pursuant to section 54 19 411.23, upon the member's retirement there shall be added two 54 20 percent of the member's average final compensation for each 54 21 year of service over twenty-two years. However, this 54 22 subparagraph does not apply to more than eight additional 54 23 years of service. 54 24 Sec. 74. Section 411.6, subsection 5, paragraph b, Code 54 25 1999, is amended to read as follows: 54 26 b. If a member in service or the chief of the police or 54 27 fire departments becomes incapacitated for duty as a natural 54 28 or proximate result of an injury or disease incurred in or 54 29 aggravated by the actual performance of duty at some definite 54 30 time or place or while acting, pursuant to order, outside the 54 31 city by which the member is regularly employed, the member, 54 32 upon being found to be temporarily incapacitated following a 54 33 medical examination as directed by the city, is entitled to 54 34 receive the member's full pay and allowances from the city's 54 35 general fund until re-examined as directed by the city and 55 1 found to be fully recovered or until the city determines that 55 2 the member is likely to be permanently disabled.TheIf the 55 3 temporary incapacity of a member continues more than sixty 55 4 days, or if the city expects the incapacity to continue more 55 5 than sixty days, the city shall notify the system of the 55 6 temporary incapacity. Upon notification by a city, the system 55 7 may refer the matter to the medical board for review and 55 8 consultation with the member's treating physician during the 55 9 temporary incapacity. Except as provided by this paragraph, 55 10 the board of trustees of the statewide system has no 55 11 jurisdiction over these matters until the city determines that 55 12 the disability is likely to be permanent. 55 13 Sec. 75. Section 411.6, subsection 6, paragraph c, Code 55 14 1999, is amended to read as follows: 55 15 c. Upon retirement for accidental disability on or after 55 16 July 1, 1998, a member shall receive an accidental disability 55 17 retirement allowance which shall consist of a pension in an 55 18 amount equal to the greater of sixty percent of the member's 55 19 average final compensation or the retirement allowance that 55 20 the member would receive under subsection 2 if the memberhas55 21 had attained fifty-five years of age. 55 22 Sec. 76. Section 411.6, subsection 7, unnumbered paragraph 55 23 1, Code 1999, is amended to read as follows: 55 24 Once each year during the first five years following the 55 25 retirement of a member on a disability retirement allowance, 55 26 and once in every three-year period thereafter, the system 55 27 may, and upon the member's application shall, require any 55 28 disability beneficiary who has not yet attained age fifty-five 55 29 to undergo a medical examination at a place designated by the 55 30 medical board. The examination shall be made by the medical 55 31 board or in special cases, by an additional physician or 55 32 physicians designated by such board. If any disability 55 33 beneficiary who has not attained the age of fifty-five refuses 55 34 to submit to the medical examination, the member's allowance 55 35 may be discontinued until withdrawal of such refusal, and if 56 1 the refusal continues for one year all rights in and to the 56 2 member's pension may be revoked by the system. For a 56 3 disability beneficiary who has not attained the age of fifty- 56 4 five and whose entitlement to a disability retirement 56 5 commenced on or after July 1, 2000, the medical board may, as 56 6 part of the examination required by this subsection, suggest 56 7 appropriate medical treatment or rehabilitation if, in the 56 8 opinion of the medical board, the recommended treatment or 56 9 rehabilitation would likely restore the disability beneficiary 56 10 to duty. 56 11 Sec. 77. Section 411.6, subsection 7, paragraph a, 56 12 unnumbered paragraph 1, Code 1999, is amended to read as 56 13 follows: 56 14 Should any beneficiary for either ordinary or accidental 56 15 disability, except a beneficiary who is fifty-five years of 56 16 age or overand would have completed twenty-two years of56 17service if the beneficiary had remained in active service, be 56 18 engaged in a gainful occupation paying more than the 56 19 difference between the member's net retirement allowance and 56 20 one and one-half times the earnable compensation of an active 56 21 member at the same position on the salary scale within the 56 22 member's rank as the member held at retirement, then the 56 23 amount of the member's retirement allowance shall be reduced 56 24 to an amount such that the member's net retirement allowance 56 25 plus the amount earned by the member shall equal one and one- 56 26 half times the amount of the current earnable compensation of 56 27 an active member at the same position on the salary scale 56 28 within the member's rank as the member held at retirement. 56 29 Should the member'searning capacityearnings be later 56 30 changed, the amount of the member's retirement allowance may 56 31 be further modified, provided that the new retirement 56 32 allowance shall not exceed the amount of the retirement 56 33 allowance adjusted by annual readjustments of pensions 56 34 pursuant to subsection 12 of this section nor an amount which 56 35 would cause the member's net retirement allowance, when added 57 1 to the amount earned by the beneficiary, to equal one and one- 57 2 half times the amount of the earnable compensation of an 57 3 active member at the same position on the salary scale within 57 4 the member's rank as the member held at retirement. A 57 5 beneficiary restored to active service at a salary less than 57 6 the average final compensation upon the basis of which the 57 7 member was retired at age fifty-five or greater, shall not 57 8 again become a member of the retirement system and shall have 57 9 the member's retirement allowance suspended while in active 57 10 service. If the rank or position held by the retired member 57 11 is subsequently abolished, adjustments to the allowable limit 57 12 on the amount of income which can be earned in a gainful 57 13 occupation shall be computed by the board of trustees as 57 14 though such rank or position had not been abolished and salary 57 15 increases had been granted to such rank or position on the 57 16 same basis as increases granted to other ranks and positions 57 17 in the department. For purposes of this paragraph, "net 57 18 retirement allowance" means the amount determined by 57 19 subtracting the amount paid during the previous calendar year 57 20 by the beneficiary for health insurance or similar health care 57 21 coverage for the beneficiary and the beneficiary's dependents 57 22 from the amount of the member's retirement allowance paid for 57 23 that year pursuant to this chapter. The beneficiary shall 57 24 submit sufficient documentation to the system to permit the 57 25 system to determine the member's net retirement allowance for 57 26 the applicable year. 57 27 Sec. 78. Section 411.6, subsection 7, Code 1999, is 57 28 amended by adding the following new paragraph: 57 29 NEW PARAGRAPH. c. Should a disability beneficiary under 57 30 age fifty-five be employed in a public safety occupation, the 57 31 disability beneficiary's retirement allowance shall cease. 57 32 Notwithstanding any provision of this chapter to the contrary, 57 33 if a disability beneficiary is employed in a public safety 57 34 occupation that would otherwise constitute membership service, 57 35 the disability beneficiary shall not become a member of the 58 1 system. For purposes of this paragraph, "public safety 58 2 occupation" means a peace officer, as defined in section 58 3 97A.1; a protection occupation, as defined in section 97B.49B; 58 4 a sheriff, deputy sheriff, or airport fire fighter, as defined 58 5 in section 97B.49C; and a police officer or fire fighter as 58 6 defined in section 411.1, who was not restored to active 58 7 service as provided by this subsection. 58 8 Sec. 79. Section 411.6, subsection 8, Code 1999, is 58 9 amended to read as follows: 58 10 8. ORDINARY DEATH BENEFIT. 58 11 a. Upon the receipt of proof of the death of a member in 58 12 service, or a member not in service who has completed four or 58 13 more years of service as provided in subsection 1, paragraph 58 14 "b", there shall be paid to the person designated by the 58 15 member to the system as the member's beneficiary, if the 58 16 member has had one or more years of membership service and no 58 17 pension is payable under subsection 9,anthe greater of the 58 18 following: 58 19 (1) An amount equal to fifty percent of the compensation 58 20 earnable by the member during the year immediately preceding 58 21 the member's death if the member is in service, or an amount 58 22 equal to fifty percent of the compensation earned by the 58 23 member during the member's last year of service if the member 58 24 is not in service. 58 25 (2) An amount the member would have been entitled to 58 26 withdraw pursuant to section 411.23 if the member had 58 27 terminated service on the date of the member's death. 58 28 b. In lieu of the payment specified in paragraph "a", a 58 29 beneficiary meeting the qualifications of paragraph "c" may 58 30 elect to receive a monthly pension equal to one-twelfth of 58 31 forty percent of the average final compensation of the member, 58 32 but not less than twenty percent of the monthly earnable 58 33 compensation paid to an active member holding the highest 58 34 grade in the rank of fire fighter, for a beneficiary of a 58 35 deceased member of a fire department, or the highest grade in 59 1 the rank of police patrol officer, for a beneficiary of a 59 2 deceased member of a police department, if the member was in 59 3 service at the time of death. For a member not in service at 59 4 the time of death, the pension shall be reduced as provided in 59 5 subsection 1, paragraph "b". 59 6 For a member not in service at the time of death, the 59 7 pension shall be paid commencing when the member would have 59 8 attained the age of fifty-five except that if there is a child 59 9 of the member, the pension shall be paid commencing with the 59 10 member's death until thechildren reach the age of eighteen,59 11or twenty-two if applicablechild of the member no longer 59 12 meets the definition of child as provided in section 411.1. 59 13 The pension shall resumecommencingwhen the member would have 59 14 attained the age of fifty-five. 59 15 For a member in service at the time of death, the pension 59 16 shall be paid commencing with the member's death. In addition 59 17 to the pension, there shall also be paid for each child of a 59 18 member, a monthly pension equal to six percent of the monthly 59 19 earnable compensation paid to an active member holding the 59 20 highest grade in the rank of fire fighter, for a child of a 59 21 deceased member of a fire department, or the highest grade in 59 22 the rank of police patrol officer, for a child of a deceased 59 23 member of a police department. 59 24 Notwithstanding section 411.6, subsection 8, Code 1985, 59 25 effective July 1, 1990, for a member's surviving spouse who, 59 26 prior to July 1, 1986, elected to receive pension benefits 59 27 under this paragraph, the monthly pension benefit shall be 59 28 equal to the higher of one-twelfth of forty percent of the 59 29 average final compensation of the member, or the amount the 59 30 surviving spouse was receiving on July 1, 1990. 59 31 c. The pension under paragraph "b" may be selected only by 59 32 the following beneficiaries: 59 33 (1) The spouse. 59 34 (2) If there is no spouse, or if the spouse dies and there 59 35 is a child of a member, then theguardian of themember's 60 1 child or children,divided as the system determines, to60 2continue as a joint and survivor pension until every child of60 3the member dies or attains the age of eighteen, or twenty-two60 4if applicablein equal shares. The pension to each child 60 5 shall terminate when the child no longer meets the definition 60 6 of child in section 411.1. 60 7 (3) If there is no surviving spouse or child, then the 60 8 member's dependent father or mother, or both, as the system 60 9 determines, to continue until remarriage or death. 60 10 d. Ifthere is no nomination ofthe member failed to 60 11 designate a beneficiary, or if the beneficiary designated by 60 12 the member predeceases the member, the benefits provided in 60 13 paragraph "a" of this subsection shall be paidto the member's60 14estate.as follows in the following order of priority: 60 15 (1) To the member's surviving spouse. 60 16 (2) To the member's surviving children, including any 60 17 adult children, in equal shares. 60 18 (3) To the member's surviving parents, in equal shares. 60 19 (4) To the member's estate. 60 20 (5) To the member's heirs if the estate is not probated. 60 21 Sec. 80. Section 411.6, subsection 9, Code 1999, is 60 22 amended to read as follows: 60 23 9. ACCIDENTAL DEATH BENEFIT. 60 24 a. If, upon the receipt of evidence and proof from the 60 25 chief of the police or fire department that the death of a 60 26 member in service was the natural and proximate result of an 60 27 injury or disease incurred in or aggravated by the actual 60 28 performance of duty at some definite time and place, or while 60 29 acting pursuant to order, outside of the city by which the 60 30 member is regularly employed, the system decides that death 60 31 was so caused in the performance of duty, there shall be paid, 60 32 in lieu of the ordinary death benefit provided in subsection 60 33 8,to the member's estate or to such person having an60 34insurable interest in the member's life as the member has60 35nominated by written designation duly executed and filed with61 1the system, the benefitsan accidental death benefit as set 61 2 forth inparagraphs "a" and "b" ofthis subsection:. Disease 61 3 under this subsection shall mean heart disease or any disease 61 4 of the lungs or respiratory tract and shall be presumed to 61 5 have been contracted while on active duty as a result of 61 6 strain or the inhalation of noxious fumes, poison, or gases. 61 7a.b.AAn accidental death benefit pension equal to one- 61 8 half of the average final compensation of the member shall be 61 9 paidto the member's spouse, children or dependent parents as61 10provided in paragraphs "c", "d", and "e" of subsection 8 of61 11this section. Thereas follows: 61 12 (1) To the member's spouse. 61 13 (2) If there is no spouse, or if the spouse dies and there 61 14 is a child of the member, then to the member's child or 61 15 children in equal shares. The pension to each child shall 61 16 terminate when the child no longer meets the definition of 61 17 child in section 411.1. 61 18 (3) If there is no surviving spouse or child, then to the 61 19 member's dependent father or mother, or both, as the system 61 20 determines, to continue until remarriage or death. 61 21 c. In addition to the accidental death benefit pension 61 22 provided in paragraph "b", there shall also be paid for each 61 23 child of a member a monthly pension equal to six percent of 61 24 the monthly earnable compensation paid to an active member 61 25 holding the highest grade in the rank of fire fighter, for a 61 26 child of a deceased member of a fire department, or holding 61 27 the highest grade in the rank of police patrol officer, for a 61 28 child of a deceased member of a police department. 61 29 d. A person eligible to receive the pension payable under 61 30 paragraph "b" of this subsection may elect to receive the 61 31 benefit payable under subsection 8, paragraph "a", in lieu of 61 32 the pension provided in paragraph "b" of this subsection. 61 33b.e. If there is nospouse, child, or dependent parent61 34surviving a deceased memberperson entitled to the pension 61 35 payable under paragraph "b" of this subsection, the death 62 1 shall be treated as an ordinary death case and the benefit 62 2 payable under subsection 8, paragraph "a", in lieu of the 62 3 pension provided in paragraph "a" of this subsection, shall be 62 4 paidto the member's estateas provided by that subsection. 62 5Disease under this subsection shall mean heart disease or62 6any disease of the lungs or respiratory tract and shall be62 7presumed to have been contracted while on active duty as a62 8result of strain or the inhalation of noxious fumes, poison,62 9or gases.62 10 Sec. 81. Section 411.6, subsection 11, Code 1999, is 62 11 amended to read as follows: 62 12 11. Pension to spouse and children of deceased pensioned 62 13 member. In the event of the death of any member receiving a 62 14 retirement allowance under the provisions of subsections 2, 4, 62 15 or 6 of this section there shall be paid a pension: 62 16 a. To the spouse, equal to one-half the amount received by 62 17 the deceased beneficiary, but in no instance less than twenty 62 18 percent of the monthly earnable compensation paid to an active 62 19 member holding the highest grade in the rank of fire fighter, 62 20 for a beneficiary of a deceased member of the fire department, 62 21 or the highest grade in the rank of police patrol officer, for 62 22 a beneficiary of a deceased member of a police department, and 62 23 in addition a monthly pension equal to the monthly pension 62 24 payable under subsection 9 of this section for each child 62 25under eighteen years of age or twenty-two years of age if62 26applicable; or 62 27 b. If the spouse dies either prior or subsequent to the 62 28 death of the member, to the guardian of each surviving child, 62 29 a monthly pension equal to the monthly pension payable under 62 30 subsection 9 of this section for the support of the child. 62 31 Sec. 82. Section 411.6, Code 1999, is amended by adding 62 32 the following new subsection: 62 33 NEW SUBSECTION. 14. BENEFICIARY DESIGNATION. A member 62 34 may designate, in writing on a form prescribed by the system, 62 35 any person or persons to whom the system will pay a death 63 1 benefit under this section in the event of the member's death. 63 2 If the member is married at the time a designation is signed, 63 3 a designation of a beneficiary other than the member's spouse 63 4 shall not be valid unless the member's spouse consents in 63 5 writing to the designation. A designation filed with the 63 6 system shall be deemed revoked if, subsequent to the 63 7 designation, a new designation is filed with the system, the 63 8 member marries, or the member divorces the individual who was 63 9 the member's named beneficiary. 63 10 Sec. 83. Section 411.6, Code 1999, is amended by adding 63 11 the following new subsection: 63 12 NEW SUBSECTION. 15. LINE OF DUTY DEATH BENEFIT. 63 13 a. If, upon the receipt of evidence and proof from the 63 14 chief of the police or fire department that the death of a 63 15 member in service was the direct and proximate result of a 63 16 traumatic personal injury incurred in the line of duty, the 63 17 system decides that death was so caused, there shall be paid, 63 18 to a person authorized to receive an accidental death benefit 63 19 as provided in subsection 9, paragraph "b", the amount of one 63 20 hundred thousand dollars, which shall be payable in a lump 63 21 sum. 63 22 b. A line of duty death benefit shall not be payable under 63 23 this subsection if any of the following applies: 63 24 (1) The death resulted from stress, strain, occupational 63 25 illness, or a chronic, progressive, or congenital illness, 63 26 including, but not limited to, a disease of the heart, lungs, 63 27 or respiratory system, unless a traumatic personal injury was 63 28 a substantial contributing factor to the member's death. 63 29 (2) The death was caused by the intentional misconduct of 63 30 the member or by the member's intent to cause the member's own 63 31 death. 63 32 (3) The member was voluntarily intoxicated at the time of 63 33 death. 63 34 (4) The member was performing the member's duties in a 63 35 grossly negligent manner at the time of death. 64 1 (5) An individual who would otherwise be entitled to a 64 2 benefit under this subsection was, through the individual's 64 3 actions, a substantial contributing factor to the member's 64 4 death. 64 5 Sec. 84. Section 411.6, Code 1999, is amended by adding 64 6 the following new subsection: 64 7 NEW SUBSECTION. 16. INELIGIBILITY FOR DISABILITY 64 8 BENEFITS. 64 9 a. A member otherwise eligible to receive a disability 64 10 retirement benefit under this chapter shall not be eligible to 64 11 receive such a benefit if the system determines that any of 64 12 the following conditions for ineligibility apply: 64 13 (1) The disability would not exist but for the member's 64 14 chemical dependency, as defined in section 125.2, on a 64 15 schedule I controlled substance, as defined in section 64 16 124.204, or the member's chemical dependency on a schedule II 64 17 controlled substance, as defined in section 124.206, resulting 64 18 from the inappropriate use of the schedule II controlled 64 19 substance. 64 20 (2) The disability is a mental disability proximately 64 21 caused by appropriate disciplinary actions taken against the 64 22 member, or by conflicts with a superior or coworker if the 64 23 superior or coworker was acting legally and appropriately 64 24 toward the member when the conflicts occurred. 64 25 b. A member otherwise eligible to receive a disability 64 26 retirement benefit under this chapter, or who is receiving 64 27 such a benefit, shall not be eligible to receive such a 64 28 benefit beginning with the month following the determination 64 29 by the system that the disability would not exist but for the 64 30 action of the member for which the member has been convicted 64 31 of a felony. 64 32 c. A member eligible to commence receiving a disability 64 33 benefit on or after July 1, 2000, may be ineligible to receive 64 34 a disability retirement benefit if the system determines that 64 35 the member's alcoholism or drug addiction was a contributing 65 1 factor material to the determination of the member's 65 2 disability. Upon a determination that the member's alcoholism 65 3 or drug addiction was a contributing factor in the member's 65 4 disability, the system shall direct the member to undergo 65 5 substance abuse treatment that the medical board determines is 65 6 appropriate to treat the member's alcoholism or drug 65 7 addiction. After the end of a twenty-four-month period 65 8 following the member's first month of entitlement to a 65 9 disability benefit, the system shall reevaluate the member's 65 10 disability. If the system determines that the member failed 65 11 to comply with the treatment program prescribed by this 65 12 paragraph and that the member would not be disabled but for 65 13 the member's alcoholism or drug addiction, the member's 65 14 entitlement to a disability benefit under this chapter shall 65 15 terminate effective the first day of the first month following 65 16 the month the member is notified of the system's 65 17 determination. 65 18 Sec. 85. Section 411.6, Code 1999, is amended by adding 65 19 the following new subsection: 65 20 NEW SUBSECTION. 17. LIMITATIONS ON BENEFITS PRISONERS. 65 21 a. An individual who is otherwise entitled to a retirement 65 22 allowance under this chapter shall not receive a retirement 65 23 allowance for any month during which both of the following 65 24 conditions exist: 65 25 (1) The individual is confined in a jail, prison, or 65 26 correctional facility pursuant to the individual's conviction 65 27 of a felony. 65 28 (2) The individual has a spouse, or a child or children, 65 29 as defined in section 411.1. 65 30 b. The amount of the retirement allowance not paid to the 65 31 individual under paragraph "a" shall be paid in the following 65 32 order of priority: 65 33 (1) To the individual's spouse, if any. 65 34 (2) If there is no spouse, then to the individual's child 65 35 or children, as defined in section 411.1. 66 1 c. This subsection shall not be construed in a manner that 66 2 impairs the rights of any individual under a marital property, 66 3 spousal support, or child support order. In addition, this 66 4 subsection shall not be construed to impair the statutory 66 5 rights of a governmental entity, including, but not limited 66 6 to, the right of a governmental entity to collect an amount 66 7 for deposit in the victim compensation fund established in 66 8 chapter 915. 66 9 Sec. 86. Section 411.11, Code 1999, is amended to read as 66 10 follows: 66 11 411.11 CONTRIBUTIONS BY THE CITY. 66 12 1. On or before January 1 of each year the system shall 66 13 certify to the superintendent of public safety of each 66 14 participating city the amounts which will become due and 66 15 payable during the year next following to the fire and police 66 16 retirement fund. The amounts so certified shall be included 66 17 by the superintendent of public safety in the annual budget 66 18 estimate. The amounts so certified shall be appropriated by 66 19 the respective cities and transferred to the retirement system 66 20 for the ensuing year. The cities shall annually levy a tax 66 21 sufficient in amount to cover the appropriations. 66 22 2. Amounts paid by a city to a member as back pay that 66 23 would have constituted earnable compensation if paid when 66 24 earned shall be allocated by the system as earnable 66 25 compensation to the period or periods for which paid and 66 26 employer and employee contributions shall be paid to the 66 27 system for the amounts. The contribution rate to be applied 66 28 to such amounts shall be determined pursuant to section 411.8 66 29 based on the rates in effect for the period or periods to 66 30 which the amounts are allocated. Interest on the 66 31 contributions required to be paid shall be calculated pursuant 66 32 to this section as if the contributions were unpaid as of the 66 33 date the contributions would have been due if the back pay had 66 34 been paid to the member during the period in which it was due. 66 35 The requirements of this subsection apply regardless of 67 1 whether the back pay is made under a covenant not to sue, 67 2 compromise settlement, denial of liability, or other agreement 67 3 between the member and the employer. 67 4 3. Contributions unpaid on the date on which they are due 67 5 and payable as prescribed by the system shall bear interest at 67 6 the greater of the interest rate assumption adopted by the 67 7 board of trustees or the rate of interest on the short-term 67 8 investment fund account of the system's custodial bank for the 67 9 period the contributions remain unpaid. Interest due pursuant 67 10 to this section may be waived by the system pursuant to rules 67 11 adopted by the board. Interest collected pursuant to this 67 12 section shall be paid into the retirement fund created in 67 13 section 411.8. 67 14 4. If an employer fails to pay contributions or interest 67 15 as required by this chapter after receiving thirty days' 67 16 notice of the employer's obligation, the system may maintain a 67 17 civil action to collect the unpaid contributions and interest 67 18 from the employer, which action shall be heard as 67 19 expeditiously as possible. If the system prevails in the 67 20 civil action to recover unpaid contributions and interest, the 67 21 court shall require the employer to pay the costs of the 67 22 action. 67 23 Sec. 87. Section 411.22, Code 1999, is amended to read as 67 24 follows: 67 25 411.22 LIABILITY OF THIRD PARTIES SUBROGATION. 67 26 1. If a member receives an injury or dies for which 67 27 benefits are payable under section 411.6, subsection 3,or5, 67 28 8, or 9, or section 411.15, and if the injury or death is 67 29 caused under circumstances creating a legal liability for 67 30 damages against a third party other than the retirement 67 31 system, the retirement system is subrogated to the rights of 67 32 the member or the member's legal representative beneficiary 67 33 entitled to receive a death benefit and may maintain an action 67 34 for damages against the third party for lost earnings and lost 67 35 earnings capacity. If the retirement system recovers damages 68 1 in the action, the court shall enter judgment for distribution 68 2 of the recovery as follows: 68 3 a. A sum sufficient to repay the retirement system for the 68 4 amount of such benefits actually paid by the retirement system 68 5 up to the time of the entering of the judgment. 68 6 b. A sum sufficient to pay the retirement system the 68 7 present worth, computed at the interest rate provided in 68 8 section 535.3 for court judgments and decrees, of the future 68 9 payments of such benefits, for which the retirement system is 68 10 liable, but the sum is not a final adjudication of the future 68 11 payments which the member is entitled to receive. 68 12 c. A sum sufficient to repay the retirement system for the 68 13 costs and expenses of maintaining the action. 68 14 d. Any balance remaining after the repayments provided by 68 15 paragraphs "a" through "c" shall be paid to the injured 68 16 member, or the beneficiary under section 411.6, subsection 8 68 17 or 9, whichever is applicable. 68 18 2. If the system, after receiving written notice of the 68 19 third-party liability, declines in writing to maintain an 68 20 action against the third party or fails to maintain an action 68 21 within one hundred eighty days of receiving written notice of 68 22 the third-party liability, the member, the member's estate, or 68 23 the legal representative of the member or the member's estate, 68 24 may maintain an action for damages against the third party. 68 25 Ifa member or a member's legal representative commencessuch 68 26 an action is commenced, the plaintiff member, estate, or 68 27 representative shall serve a copy of the original notice upon 68 28 the retirement system not less than ten days before the trial 68 29 of the action, but a failure to serve the notice does not 68 30 prejudice the rights of the retirement system, and the 68 31 following rights and duties ensue: 68 32 a. The retirement system shall be indemnified out of the 68 33 recovery of damages to the extent of benefit paymentsmade68 34 paid or awarded by the retirement system, with legal interest, 68 35 except that the plaintiff member's or estate's attorney fees 69 1 may be first allowed by the district court. For purposes of 69 2 this paragraph, "benefit payments paid or awarded" means the 69 3 sum of the following amounts: 69 4 (1) The amount of benefits actually paid by the retirement 69 5 system up to the time of the entering of the judgment. 69 6 (2) The present worth, computed at the interest rate 69 7 provided in section 535.3 for court judgments and decrees, of 69 8 the future payments of such benefits, for which the retirement 69 9 system is liable, but the sum is not a final adjudication of 69 10 the future payments which the member is entitled to receive. 69 11 b. The retirement system has a lien on the damage claim 69 12 against the third party and on any judgment on the damage 69 13 claim for benefits for which the retirement system is liable. 69 14 In order to continue and preserve the lien, the retirement 69 15 system shall file a notice of the lien within thirty days 69 16 after receiving a copy of the original notice in the office of 69 17 the clerk of the district court in which the action is filed. 69 182. If a member fails to bring an action for damages69 19against a third party within thirty days after the retirement69 20system requests the member in writing to do so, the retirement69 21system is subrogated to the rights of the member and may69 22maintain the action against the third party, and may recover69 23damages for the injury to the same extent that the member may69 24recover damages for the injury. If the retirement system69 25recovers damages in the action, the court shall enter judgment69 26for distribution of the recovery as follows:69 27a. A sum sufficient to repay the retirement system for the69 28amount of such benefits actually paid by the retirement system69 29up to the time of the entering of the judgment.69 30b. A sum sufficient to pay the retirement system the69 31present worth, computed at the interest rate provided in69 32section 535.3 for court judgments and decrees, of the future69 33payments of such benefits, for which the retirement system is69 34liable, but the sum is not a final adjudication of the future69 35payments which the member is entitled to receive.70 1c. Any balance shall be paid to the member.70 2 3. Before a settlement is effective between the retirement 70 3 system and a third party who is liable for an injury or death, 70 4 the member or beneficiary must consent in writing to the 70 5 settlement; and if the settlement is between the member or the 70 6 member's estate and a third party, the retirement system must 70 7 consent in writing to the settlement; or on refusal to 70 8 consent, in either case, the district court in the county in 70 9 which either the city or the retirement system is located must 70 10 consent in writing to the settlement. 70 11 4. For purposes of subrogation under this section, a 70 12 payment made to an injured member, a member's estate, or the 70 13member'slegal representative of the member or member's 70 14 estate, by or on behalf of a third party or the third party's 70 15 principal or agent, who is liable for, connected with, or 70 16 involved in causing the injurytoor death of the member, 70 17 shall be considered paid as damages because the injury or 70 18 death was caused under circumstances creating a legal 70 19 liability against the third party, whether the payment is made 70 20 under a covenant not to sue, compromise settlement, denial of 70 21 liability, or is otherwise made. 70 22 Sec. 88. EFFECTIVE DATE RETROACTIVE APPLICABILITY. 70 23 Sections 66, 69, 70, 83, and 86, of this Act, amending section 70 24 411.1, subsection 12, section 411.3, section 411.4, section 70 25 411.6, by creating new subsection 15, and section 411.11, 70 26 being deemed of immediate importance, take effect upon 70 27 enactment and are retroactively applicable to January 1, 1992, 70 28 and are applicable on and after that date. 70 29 Sec. 89. EFFECTIVE DATE. Section 65 of this Act amending 70 30 section 411.1, subsection 10, and section 72 of this Act, 70 31 amending section 411.5, subsection 8, take effect July 1, 70 32 2001. 70 33 Sec. 90. STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 70 34 LEGISLATIVE INTENT. It is the intent of the general assembly 70 35 that members of the retirement system be afforded a retirement 71 1 benefit based upon ninety percent of a member's earnable 71 2 compensation at the time of a member's retirement after the 71 3 member has completed thirty years of service when the 71 4 retirement system can afford it on an actuarially sound basis. 71 5 DIVISION IV 71 6 JUDICIAL RETIREMENT SYSTEM 71 7 Sec. 91. Section 602.9104, Code 1999, is amended to read 71 8 as follows: 71 9 602.9104 DEDUCTIONS FROM JUDGES' SALARIES CONTRIBUTIONS 71 10 BY STATE. 71 11 1. A judge to whom this article applies, shall be paid an 71 12 amount equal toninety-six percent ofthe basic salary of the 71 13 judge as set by the general assembly. Anminus an amount 71 14equal to four percent of the basic salary of the judge as set71 15by the general assembly isdesignated as the judge's 71 16 contribution to the judicial retirement fund, and shall be71 17paid by the state in the manner provided in subsection 2. The 71 18 amount designated as the judge's contribution to the judicial 71 19 retirement fund shall be calculated as provided in subsection 71 20 1A and shall be paid by the state in the manner provided in 71 21 subsection 2. 71 22 1A. a. Effective with the fiscal year commencing July 1, 71 23 1994, and for each subsequent fiscal year until the system 71 24 attains fully funded status based upon the benefits provided 71 25 for judges through the judicial retirement system as of July 71 26 1, 2001, contributions to the judicial retirement fund shall 71 27 be calculated as follows: 71 28 (1) The state shall contribute annually to the judicial 71 29 retirement fund an amount equal to at least twenty-three and 71 30 seven-tenths percent of the basic salary of each judge covered 71 31 under this article. The state's contribution shall be 71 32 appropriated directly to the judicial retirement fund. 71 33 (2) Each judge to whom this article applies shall 71 34 contribute annually to the judicial retirement fund an amount 71 35 equal to five percent of the basic salary of the judge as set 72 1 by the general assembly. 72 2 b. Commencing with the first fiscal year in which the 72 3 system attains fully funded status based upon the benefits 72 4 provided for judges through the judicial retirement system as 72 5 of July 1, 2001, and for each subsequent fiscal year, 72 6 contributions to the judicial retirement fund shall be 72 7 calculated as follows: 72 8 (1) The state shall contribute annually to the judicial 72 9 retirement fund an amount equal to sixty percent of the 72 10 required contribution rate multiplied by the basic salary of 72 11 each judge covered under this article. The state's 72 12 contribution shall be appropriated directly to the judicial 72 13 retirement fund. 72 14 (2) Each judge to whom this article applies shall 72 15 contribute annually to the judicial retirement fund an amount 72 16 equal to forty percent of the required contribution rate 72 17 multiplied by the basic salary of the judge as set by the 72 18 general assembly. 72 19 2. The amount designated in subsection 1 and subsection 1A 72 20 as the judge's contribution to the judicial retirement fund 72 21 shall be paid by the department of revenue and finance from 72 22 the general fund of the state to the court administrator for 72 23 deposit with the treasurer of state to the credit of the 72 24 judicial retirement fund. Moneys in the fund are appropriated 72 25 for the payment of annuities, refunds, and allowances provided 72 26 by this article, except that the amount of the appropriations 72 27 affecting payment of annuities, refunds, and allowances to 72 28 judges of the municipal and superior court is limited to that 72 29 part of the fund accumulated for their benefit as provided in 72 30 this article. The corpus and income of the fund shall be used 72 31 only for the exclusive benefit of the judges covered under 72 32 this article, their survivors, or an alternate payee who is 72 33 assigned benefits pursuant to a domestic relations order. 72 34 3. A judge covered under this article is deemed to consent 72 35 to the reduction in basic salary as provided in subsection 1. 73 1 4.a.As used in thissubsectionsection, unless the 73 2 context otherwise requires: 73 3(1)a. "Actuarial valuation" means an actuarial valuation 73 4 of the judicial retirement system or an annual actuarial 73 5 update of an actuarial valuation, as required pursuant to 73 6 section 602.9116. 73 7(2)b. "Fully funded status" means that the most recent 73 8 actuarial valuation reflects that, using the aggregate cost 73 9 method in accordance with generally recognized and accepted 73 10 actuarial principles and practices set forth by the American 73 11 academy of actuaries, the funded status of the system is at 73 12 least one hundred percent. 73 13(3)c. "Required contribution rate" means that percentage 73 14 of the basic salary of all judges covered under this article 73 15 which, in addition to the judge's contribution established in73 16subsection 1,the actuary of the system determines is 73 17 necessary to maintain fully funded status. 73 18b. Effective with the fiscal year commencing July 1, 1994,73 19and for each subsequent fiscal year until the system attains73 20fully funded status, the state shall contribute annually to73 21the judicial retirement fund an amount equal to at least73 22twenty-three and seven-tenths percent of the basic salary of73 23all judges covered under this article. Commencing with the73 24first fiscal year in which the system attains fully funded73 25status, and for each subsequent fiscal year, the state shall73 26contribute to the judicial retirement fund the required73 27contribution rate. The state's contribution shall be73 28appropriated directly to the judicial retirement fund.73 29 Sec. 92. Section 602.9107, subsection 1, Code 1999, is 73 30 amended to read as follows: 73 31 1. a. The annual annuity of a judge under this system is 73 32 an amount equal to three percent of the judge's average annual 73 33 basic salary for the judge's last three years as a judge of 73 34 one or more of the courts included in this article, multiplied 73 35 by the judge's years of service as a judge of one or more of 74 1 the courts for which contributions were made to the system. 74 2 However, an annual annuity shall not exceed an amount equal to 74 3 a specified percentage of the basic annual salary which the 74 4 judge is receiving at the time the judge becomes separated 74 5 from service. Forfeitures shall not be used to increase the 74 6 annuities a judge or survivor would otherwise receive under 74 7 the system. 74 8 b. "Specified percentage", for purposes of this section, 74 9 means as follows: 74 10 (1) For judges who retire and receive an annuity prior to 74 11 July 1, 1998, the specified percentage shall be fifty percent. 74 12 (2) For judges who retire and receive an annuity on or 74 13 after July 1, 1998, but before July 1, 2000, the specified 74 14 percentage shall be fifty-two percent. 74 15 (3) For judges who retire and receive an annuity on or 74 16 after July 1, 2000, but before July 1, 2001, the specified 74 17 percentage shall be fifty-six percent. 74 18 (4) For judges who retire and receive an annuity on or 74 19 after July 1, 2001, the specified percentage shall be sixty 74 20 percent. 74 21 Sec. 93. Section 602.9204, Code Supplement 1999, is 74 22 amended to read as follows: 74 23 602.9204 SALARY ANNUITY OF SENIOR JUDGE AND RETIRED 74 24 SENIOR JUDGE. 74 25 1. A judge who retires on or after July 1, 1994, and who 74 26 is appointed a senior judge under section 602.9203 shall be 74 27 paid a salary as determined by the general assembly. A senior 74 28 judge or retired senior judge shall be paid an annuity under 74 29 the judicial retirement system in the manner provided in 74 30 section 602.9109, but computed under this section in lieu of 74 31 section 602.9107, as follows: The annuity paid to a senior 74 32 judge or retired senior judge shall be an amount equal to 74 33 three percent of the basic senior judge salary, multiplied by 74 34 the judge's years of service prior to retirement as a judge of 74 35 one or more of the courts included under this article, for 75 1 which contributions were made to the system, except the 75 2 annuity of the senior judge or retired senior judge shall not 75 3 exceedfifty percentan amount equal to the applicable 75 4 specified percentage of the basic senior judge salary used in 75 5 calculating the annuity. However, following the twelve-month 75 6 period during which the senior judge or retired senior judge 75 7 attains seventy-eight years of age, the annuity paid to the 75 8 person shall be an amount equal to three percent of the basic 75 9 senior judge salary cap, multiplied by the judge's years of 75 10 service prior to retirement as a judge of one or more of the 75 11 courts included under this article, for which contributions 75 12 were made to the system, except that the annuity shall not 75 13 exceedfifty percentan amount equal to the applicable 75 14 specified percentage of the basic senior judge salary cap. A 75 15 senior judge or retired senior judge shall not receive 75 16 benefits calculated using a basic senior judge salary 75 17 established after the twelve-month period in which the senior 75 18 judge or retired senior judge attains seventy-eight years of 75 19 age. The state shall provide, regardless of age, to an active 75 20 senior judge or a senior judge with six years of service as a 75 21 senior judge and to the judge's spouse, and pay for medical 75 22 insurance until the judge attains the age of seventy-eight 75 23 years. 75 24 2. As used in this section, unless the context otherwise 75 25 requires: 75 26 a. "Applicable specified percentage" means, for a senior 75 27 judge or retired senior judge, the specified percentage, as 75 28 defined in section 602.9107, subsection 1, that applied on the 75 29 date the judge was separated from full-time service. 75 30a.b. "Basic senior judge salary" means the basic annual 75 31 salary which the judge is receiving at the time the judge 75 32 becomes separated from full-time service, as would be used in 75 33 computing an annuity pursuant to section 602.9107 without 75 34 service as a senior judge, plus seventy-five percent of the 75 35 escalator. 76 1b.c. "Basic senior judge salary cap" means the basic 76 2 senior judge salary, at the end of the twelve-month period 76 3 during which the senior judge or retired senior judge attained 76 4 seventy-eight years of age, of the office in which the person 76 5 last served as a judge before retirement as a judge or senior 76 6 judge. 76 7c.d. "Escalator" means the difference between the current 76 8 basic salary, as of the time each payment is made up to and 76 9 including the twelve-month period during which the senior 76 10 judge or retired senior judge attains seventy-eight years of 76 11 age, of the office in which the senior judge last served as a 76 12 judge before retirement as a judge or senior judge, and the 76 13 basic annual salary which the judge is receiving at the time 76 14 the judge becomes separated from full-time service as a judge 76 15 of one or more of the courts included in this article, as 76 16 would be used in computing an annuity pursuant to section 76 17 602.9107 without service as a senior judge. 76 18 EXPLANATION 76 19 This bill makes numerous changes to public retirement 76 20 systems, including the public safety peace officers' 76 21 retirement, accident, and disability system, the Iowa public 76 22 employees' retirement system, the statewide fire and police 76 23 retirement system, and the judicial retirement system. This 76 24 bill may include a state mandate as defined in Code section 76 25 25B.3. The state mandate funding requirement in Code section 76 26 25B.2, however, does not apply to public employee retirement 76 27 systems. The changes to each public retirement system are as 76 28 follows: 76 29 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND 76 30 DISABILITY SYSTEM (PORS) 76 31 Code section 97A.5, governing the administration of the 76 32 retirement system, is changed to add a retired member of the 76 33 system to the board of trustees. The retired member of the 76 34 board shall be elected from the retired members and shall have 76 35 a two-year term. 77 1 Code section 97A.6, subsection 2, governing the calculation 77 2 of retirement benefits, is amended by adding a new paragraph 77 3 to provide that member of PORS receives 2.75 percent of the 77 4 member's average final compensation for each year of service 77 5 up to a total of 32 years of service or a maximum of 88 77 6 percent. 77 7 Code section 97A.6, subsection 8, governing an ordinary 77 8 death benefit, is amended to provide that certain eligible 77 9 beneficiaries of a member who dies shall receive, at a 77 10 minimum, a monthly pension equal to 25 percent, rather than 20 77 11 percent, of the monthly pay of a senior patrol officer if the 77 12 member died in service. 77 13 Code section 97A.6, subsection 14, governing the annual 77 14 readjustment of pensions, is amended. The current 77 15 readjustment escalator provisions are amended to increase the 77 16 percentages used to provide an annual readjustment of the 77 17 pensions payable from the current 30 percent and 33 1/3 77 18 percent to 40 percent, and from the current 15 percent to 24 77 19 percent. 77 20 In addition to the modification of the current escalator 77 21 increase received by an eligible member or beneficiary each 77 22 July 1, the bill provides for adding to the amount calculated 77 23 using the current escalator provisions as amended by this bill 77 24 an additional dollar amount based on the number of years the 77 25 member has been retired. The additional amount is $15 for a 77 26 member retired less than five years, $20 for a member retired 77 27 between five and 10 years, $25 for a member retired between 10 77 28 and 15 years, $30 for a member retired between 15 and 20 77 29 years, and $35 for a member retired over 20 years. 77 30 Code section 97A.8, concerning the method of financing the 77 31 PORS through contributions, is amended to permit the board of 77 32 trustees to adopt a method designed to stabilize changes in 77 33 the normal contribution rate which could result from 77 34 fluctuations in the market value of the assets of the system. 77 35 The bill also provides that it is the intent of the general 78 1 assembly that members of PORS receive a retirement benefit of 78 2 90 percent of their earnable compensation after 30 years of 78 3 service once the system can afford it. 78 4 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM 78 5 Code section 97B.1A is amended by adding new subsection 2A 78 6 which defines accumulated employer contributions as employer 78 7 contributions made on behalf of a member plus interest. 78 8 Code section 97B.1A, subsection 8, paragraph "a", 78 9 subparagraph (1), which provides for the ability of an elected 78 10 official to opt for coverage, is amended to allow an elected 78 11 official who has opted to be covered under IPERS to opt out of 78 12 coverage while still in office. Specifically, the change 78 13 permits an official to opt out of IPERS coverage if the 78 14 official terminates employment from all employment covered 78 15 under this chapter other than employment as an elective 78 16 official and applies to receive a retirement benefit under 78 17 IPERS. 78 18 Code section 97B.1A, subsection 8, concerning the 78 19 definition of temporary employees, is changed to provide that 78 20 an employee is a temporary employee if the employee is hired 78 21 for less than six consecutive months. Current law provides 78 22 that an employee is a temporary employee if the employee is 78 23 hired for less than six months in a calendar year. 78 24 Code section 97B.1A is amended by adding new subsection 14A 78 25 which defines a member account as the amount established for a 78 26 member that includes the accumulated contributions of the 78 27 member and the relevant accumulated employer contributions for 78 28 that member. 78 29 Code section 97B.1A is amended by adding subsection 22A 78 30 which adds a definition for a supplemental account for active 78 31 members that is consistent with Code section 97B.49H which 78 32 created this account. 78 33 Code section 97B.1A, subsection 24, concerning the 78 34 definition of three-year average covered wage used in 78 35 determining IPERS retirement benefits is amended by modifying 79 1 the multiyear mechanism for implementing a revision to the 79 2 calculation of three-year average covered wage if the member's 79 3 average wage exceeds a certain dollar level. Current law 79 4 provides that a member's "three-year average covered wage" 79 5 will be calculated using the highest seven years for a member 79 6 who retires during calendar year 2000, 2001, or 2002, and 79 7 whose three-year average covered wage exceeds $55,000. The 79 8 bill provides that only the highest six years will be used, 79 9 that the income threshold will increase to $65,000 for persons 79 10 retiring on or after January 1, 2000, but before 2001, and to 79 11 $75,000 for persons retiring in calendar year 2001, and that 79 12 the modification ends after calendar year 2001 and not after 79 13 calendar year 2002. The portion of this change which applies 79 14 to members retiring during calendar year 2000 is effective 79 15 upon enactment and applicable on or after January 1, 2000. 79 16 Code section 97B.1A, subsection 24, concerning the three- 79 17 year average covered wage, is also amended to provide for a 79 18 new determination of this covered wage for a member who 79 19 retires on or after July 1, 2003. The change provides that 79 20 beginning July 2003, a member's three-year average covered 79 21 wage shall be the greater of the member's highest 12 quarters 79 22 of service, or the member's highest three years of service. 79 23 Under current law, a member's three-year average covered wage 79 24 is determined based solely on calendar years. 79 25 Code section 97B.1A, subsection 26, defining wages is 79 26 amended. The new definition specifically provides that wages 79 27 payable to an employee but that are otherwise deducted from 79 28 the employee's pay and paid to certain IRS qualified plans are 79 29 considered wages. Payments for compensatory time are also 79 30 included up to 240 hours per year. In addition, the amendment 79 31 lists several categories of payment to an employee that are 79 32 not considered wages. For example, accrued sick leave 79 33 payments, accrued vacation leave payments, disability 79 34 payments, reimbursements for business expenses, early 79 35 retirement bonuses, employer paid contributions to certain IRS 80 1 qualified plans as well as for health and life insurance or 80 2 other fringe benefits, payments for service as an independent 80 3 contractor, and workers' compensation and unemployment 80 4 payments are all excluded from the definition of wages. 80 5 Code section 97B.5 is amended to permit IPERS staff members 80 6 to seek and hold nonpartisan elective public offices. 80 7 Currently, IPERS staff members are not allowed to seek or hold 80 8 any elective public office. 80 9 Code section 97B.9 is amended to permit the department to 80 10 charge an employer who fails to make required contributions to 80 11 IPERS on time a uniform $10 charge if that charge exceeds the 80 12 interest on the unpaid contributions. Any charge collected 80 13 shall be paid into the IPERS fund. 80 14 Code section 97B.9, concerning the repayment of unpaid 80 15 contributions from employers and employees for service in 80 16 IPERS, is amended to provide that the department of personnel 80 17 can collect the total underpayment owed from the employer. 80 18 Current law specifying who ultimately is required to pay what 80 19 share of the underpayment is unchanged. The employee is still 80 20 obligated to pay the employee's share of unpaid contributions, 80 21 without interest, to the employer and the employer is allowed 80 22 to collect this amount from the employee or the employee's 80 23 estate. 80 24 Code section 97B.11 is amended to require employers to 80 25 deduct contributions from an employee's wages regardless of 80 26 size. Current law does not require a contribution if the 80 27 amount does not exceed $1 for a quarter. 80 28 New Code section 97B.14A is created to require employers to 80 29 report wages to the department of personnel in a manner and 80 30 form as prescribed by the department. The new section also 80 31 permits the department to seek additional information from an 80 32 employer if the wages reported for an employee appear to be 80 33 distorted and to require an employer to resubmit wage 80 34 information if the wages for that employee were misreported. 80 35 Code section 97B.42A is amended by adding new subsection 81 1 3A. The change provides that persons employed by a municipal 81 2 water utility or waterworks that has established an 81 3 alternative pension and annuity retirement system for its 81 4 employees pursuant to Code chapter 412 may elect to become 81 5 members of the Iowa public employees' retirement system 81 6 (IPERS) pursuant to the requirements of this subsection. 81 7 The change provides that persons hired on or after the 81 8 effective date of this bill will become members of IPERS 81 9 unless they elect coverage in the alternative retirement 81 10 system established in Code chapter 412. Persons hired before 81 11 the effective date of this bill become members of IPERS as of 81 12 July 1, 2000, unless they opt for coverage in the alternative 81 13 system by August 31, 2000. Persons who become members of 81 14 IPERS pursuant to this bill have the ability to purchase 81 15 service credit for time employed by a water utility or 81 16 waterworks while covered under a retirement system established 81 17 pursuant to Code chapter 412. A corresponding change to the 81 18 definitions in section 97B.1A is also made in this bill. 81 19 Code section 97B.42A is amended to require an employee, who 81 20 became a member of IPERS during 1999 on the basis of 81 21 employment that previously was not included within IPERS and 81 22 who wants to buy back that service, to have at least one or 81 23 more years of covered wages under IPERS before the buyback is 81 24 allowed. 81 25 Code section 97B.44 governing the designation of a 81 26 beneficiary for death benefits by a member is amended to 81 27 require that the member obtain the written consent of the 81 28 member's spouse for an original or changed designation. 81 29 Code sections 97B.48 and 97B.48A are amended to provide 81 30 that receipt of a lump sum payment in lieu of a retirement 81 31 allowance under Code section 97B.48, or receipt of a refund of 81 32 contributions following retirement from reemployment under 81 33 Code section 97B.48A, are not considered refunds for service 81 34 which would allow the member to buy back that service at a 81 35 later time. Code section 97B.52A is amended to provide that 82 1 bona fide retirement requirements apply to these payments. 82 2 Code section 97B.48A, subsection 1, is amended to increase 82 3 the earned income limit before a member's retirement allowance 82 4 is reduced pursuant to that section. Currently, a member can 82 5 earn the greater of $12,000 or the amount of income permitted 82 6 under social security before a reduction is potentially 82 7 applied. This change provides that the $12,000 be increased 82 8 to $14,000. 82 9 Code section 97B.49B, concerning the definition of 82 10 employees included in a protection occupation, is amended to 82 11 add airport security employees covered by the state's merit 82 12 system who carry or are authorized to carry a weapon for their 82 13 jobs. 82 14 Code section 97B.49F, governing the determination of the 82 15 cost of living dividend, is amended. The dividend program for 82 16 pre-July 1990 retirees is amended to provide that 100 percent, 82 17 and not 80 percent, of the percentage based on the consumer 82 18 price index shall be used in determining the appropriate 82 19 percentage to use in determining the dividend adjustment each 82 20 year. The current 3 percent annual limitation on this 82 21 percentage is not changed by this bill. 82 22 Code section 97B.49F, subsection 1, concerning the cost-of- 82 23 living dividend, is amended to provide that the person 82 24 eligible to receive the dividend must live through to November 82 25 1, of any particular year to receive a dividend as of the last 82 26 day of November for that particular year. 82 27 Code section 97B.49F, subsection 2, concerning the 82 28 favorable experience dividend, is amended to provide that the 82 29 person eligible to receive the dividend must live through to 82 30 January 1 of any particular year in order to receive a 82 31 dividend as of the last day of January for that particular 82 32 year. 82 33 Code section 97B.49F, subsection 2, concerning the 82 34 favorable experience dividend, is amended. The change 82 35 provides that the amount deposited in the reserve account of 83 1 IPERS for the payment of this dividend each year shall not 83 2 exceed the amount necessary to pay this dividend for the 83 3 following 10 years. In addition, the subsection is amended to 83 4 provide that the calculation of the dividend shall be done 83 5 based upon 12 times the December benefit paid to a member or 83 6 beneficiary eligible to receive the benefit. 83 7 Code section 97B.49G is amended to add new subsection 12. 83 8 This subsection provides that a person employed as a probation 83 9 officer III or parole officer III, who was a member of the 83 10 protection occupation for that service between July 1, 1994, 83 11 and June 30, 1998, shall have the contributions that were 83 12 contributed to the fund in excess of the percentage applied to 83 13 most IPERS members deposited in a separate additional 83 14 contribution account. In addition, any service as a member of 83 15 a protection occupation for that service will be credited as 83 16 regular IPERS service. Any amount in that account, plus 83 17 interest, will be available upon request of the member or upon 83 18 retirement. Before July 1994, and after June 1998, probation 83 19 and parole officer IIIs were not included in the protection 83 20 occupation classification. 83 21 Code section 97B.49H, governing supplemental accounts for 83 22 active members, is amended to provide that a member, upon 83 23 retirement, must elect to receive this amount as a lump sum or 83 24 annuity. In addition, the section is changed to provide for 83 25 the determination of the annuity in a manner similar to that 83 26 used for other annuity options within Code chapter 97B. 83 27 Code section 97B.50, subsection 2, governing early 83 28 retirement and disability, is amended to eliminate the ability 83 29 of a person who retires due to disability and receives 83 30 disability payments from federal Social Security or from the 83 31 federal Railroad Retirement System to receive a retroactive 83 32 adjustment of IPERS retirement benefits back to July 1, 1990. 83 33 Instead, the bill allows a member to receive only a 12-month 83 34 retroactive adjustment of IPERS benefits. 83 35 New Code section 97B.50A provides for disability retirement 84 1 benefits for special service members of the Iowa public 84 2 employees' retirement system (IPERS). A special service 84 3 member of IPERS for purposes of this bill includes a person 84 4 who is a member of a protection occupation or who is a 84 5 sheriff, deputy sheriff, or airport fire fighter. 84 6 The new Code section provides that an eligible special 84 7 service member of IPERS who becomes disabled for duty while in 84 8 the performance of the member's duty is entitled to an in- 84 9 service disability retirement allowance equal to the greater 84 10 of one-twelfth of 60 percent of the member's three-year 84 11 average covered wage or the amount the member would receive 84 12 under a normal retirement. For purposes of establishing an 84 13 in-service disability, heart or lung disease is presumed to 84 14 have been contracted while on duty. The new Code section also 84 15 provides that a member who becomes disabled and unable to 84 16 perform the member's job is entitled to an ordinary disability 84 17 retirement allowance equal to the greater of one-twelfth of 50 84 18 percent of the member's three-year average covered wage or 84 19 what the member would receive under a normal retirement. For 84 20 both disability retirements, the department of personnel makes 84 21 the decision as to whether the person is totally disabled. 84 22 The new Code section also has provisions for offsets to 84 23 disability allowances, reexamination of members on disability, 84 24 reemployment, death benefits, establishing the medical board, 84 25 and subrogation. The new Code section provides that the costs 84 26 of administering the disability program shall be paid through 84 27 contributions from the special service employees and their 84 28 employers in the same manner as additional benefits are paid. 84 29 (The employer pays 60 percent and the employee pays 40 84 30 percent.) The new Code section applies to a special service 84 31 member who became disabled prior to the effective date of the 84 32 bill, if the member did not terminate the special service 84 33 employment before the effective date of the bill. 84 34 Code section 97B.51, governing the retirement allowance 84 35 options a retired IPERS member may select, is amended by 85 1 striking the section and replacing it with a new section. 85 2 Current Code section 97B.51 is retained but reordered to 85 3 provide that all five primary options available to a member 85 4 upon retirement are listed in the order IPERS refers to them 85 5 in their administrative rules. In addition, the new section 85 6 provides a new option to a member retiring which is reflected 85 7 in subsection 1, paragraph "d", subparagraph (2). This option 85 8 allows a member to obtain a decreased retirement allowance and 85 9 to provide the member's beneficiary with a retirement 85 10 allowance upon the member's death. The change from the 85 11 current option reflected in subparagraph (1) is that the 85 12 member can resume receiving an unreduced retirement allowance 85 13 as otherwise calculated by Code chapter 97B if the designated 85 14 beneficiary dies before the retiree. 85 15 Code section 97B.52, governing the death benefit provided a 85 16 beneficiary of a member who dies prior to retirement is 85 17 changed. The change provides that, for a member who dies on 85 18 or after January 1, 2001, a beneficiary can elect to receive a 85 19 death benefit equal to the current death benefit or an amount 85 20 representing the actuarial value of the member's retirement 85 21 benefit as of the date of death. The bill provides that a 85 22 death benefit can be paid as an annuity only if there is one 85 23 beneficiary and the beneficiary so elects. 85 24 Code section 97B.52A, concerning bona fide retirement, is 85 25 modified to permit an elective official or member of the 85 26 general assembly to remain in that position and still receive 85 27 a retirement allowance following termination of other covered 85 28 employment so long as the elective official or member of the 85 29 general assembly is not contributing to IPERS coverage for the 85 30 elected position. In addition, the section is changed to 85 31 provide that commencing July 2000, a member has a bona fide 85 32 retirement if the member does not return to any employment 85 33 with a covered employer until the member has received at least 85 34 one month of retirement benefits. Under current law, a member 85 35 has to receive four months of benefits before returning to 86 1 work with a covered employer. 86 2 Code section 97B.53, governing refunds of contributions 86 3 upon termination of employment, is amended to provide that a 86 4 member is eligible to receive a portion of the employer 86 5 contributions only if the member is vested as of the date an 86 6 application for refund is filed with the department. In 86 7 addition, the section is amended to permit a member 86 8 involuntarily terminated from IPERS covered employment who 86 9 then received a refund as a result, to repay the refund, plus 86 10 applicable interest, and obtain full service credit for the 86 11 IPERS service prior to the involuntary termination if the 86 12 person is ordered reinstated as a remedy arising out of an 86 13 employment dispute. 86 14 Code sections 97B.53A, 97B.53B, and 97B.70 are amended to 86 15 provide for similar treatment of a member's supplemental 86 16 account as is provided to the member's account which consists 86 17 of both employee and employer contributions. 86 18 Code section 97B.60 is amended to require an actuarial 86 19 investigation of the experience of IPERS every four years 86 20 beginning with an investigation in calendar year 2002. 86 21 Currently, IPERS is required to conduct such an experience 86 22 study every two years. 86 23 New Code section 97B.82 is added to allow a member to 86 24 purchase credit for membership service authorized by Code 86 25 chapter 97B by means of a direct rollover of assets from a 86 26 qualified plan of the member as authorized by the Internal 86 27 Revenue Code. This section will not be implemented until the 86 28 department of personnel receives a determination letter from 86 29 the internal revenue service approving the change. 86 30 Code section 97B.13, regarding no income tax deduction, is 86 31 repealed. 86 32 The bill provides that it is the intent of the general 86 33 assembly that the legislative council may appoint an interim 86 34 study committee to consider possible defined contribution 86 35 options for persons covered by IPERS. 87 1 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 87 2 Code section 400.8, governing civil service entrance 87 3 examinations, is amended to provide that the physical 87 4 examination of applicants for appointment to positions of 87 5 police officer, police matron, and fire fighter, shall be 87 6 conducted by the medical board established under Code chapter 87 7 411. Current law provides that the physical examination be 87 8 conducted as directed by the civil service commission. 87 9 New Code section 400.8A authorizes the board of trustees of 87 10 the Code chapter 411 retirement system, in consultation with 87 11 the medical board established in Code chapter 411, to 87 12 establish and maintain protocols and guidelines for ongoing 87 13 wellness and fitness of police officers and fire fighters 87 14 while in service. The new section allows, but does not 87 15 require, cities to apply the protocols and guidelines. 87 16 Code section 411.1, subsection 19, defining surviving 87 17 spouse, is amended. The change provides that a person who 87 18 marries a retired member of the system after the member 87 19 retired is the member's surviving spouse regardless of the 87 20 length of the marriage. Under current law, a person who 87 21 marries a retired member after retirement must be married for 87 22 at least two years prior to the member's death to be 87 23 considered a surviving spouse of the deceased member. 87 24 Code section 411.1A is amended to provide that a purpose of 87 25 the retirement system is to provide a comprehensive disability 87 26 program for police officers and fire fighters. 87 27 Code section 411.3, governing membership in the retirement 87 28 system, is amended to provide that once a member ceases to be 87 29 a police officer or fire fighter of a city covered by the 87 30 system, the member ceases to be a member of the system. Under 87 31 current law, a member ceased to be a member if the member was 87 32 absent from service for over four years in any five-year 87 33 period after last becoming a member. The changes to this 87 34 section take effect upon enactment and are retroactively 87 35 applicable to January 1, 1992. 88 1 Code section 411.4, governing the crediting of service, is 88 2 amended. The change provides that a member can receive credit 88 3 for a previous period of service if the member returned to 88 4 service after an absence from service of less than four years. 88 5 If the member returned to service after an absence of four or 88 6 more years, the bill permits the crediting of prior service 88 7 only if the prior service was long enough to allow for the 88 8 receipt of a retirement allowance. In addition, current law 88 9 allows credit for prior service if the member had withdrawn 88 10 the member's accumulated contributions. Code section 411.1, 88 11 subsection 12, is also amended to provide that membership 88 12 service means only that service credited to the member. The 88 13 changes to Code section 411.4 and to Code section 411.1, 88 14 subsection 12, take effect upon enactment and are 88 15 retroactively applicable to January 1, 1992. 88 16 Code section 411.5, subsection 6, is amended to allow the 88 17 release of otherwise confidential records under the board's 88 18 control to a governmental entity for use in a civil or 88 19 criminal law enforcement activity. 88 20 Code section 411.5, subsection 8, concerning the 88 21 composition and duties of the medical board is amended. The 88 22 bill provides that the system can designate a single medical 88 23 provider network to arrange for the medical examinations 88 24 required to be conducted and to assist the system in 88 25 implementing the comprehensive disability program. The bill 88 26 provides that a physician specializing in occupational 88 27 medicine, and another physician specialist selected by that 88 28 physician, shall conduct disability examinations as required 88 29 by Code chapter 411. Under current law, three physicians are 88 30 designated as the medical board and three physicians from the 88 31 university of Iowa are required to conduct all disability 88 32 examinations as required by Code chapter 411. This section of 88 33 the bill takes effect July 1, 2001. 88 34 Code section 411.6, subsection 2, concerning the retirement 88 35 allowance for a service retirement, is amended. The change 89 1 provides, for members retiring on or after July 1, 2000, that 89 2 the member will receive a service retirement equal to 66 89 3 percent of the member's average final compensation instead of 89 4 the current 60 percent. In addition, the subsection is 89 5 amended to provide that a member retiring on or after July 1, 89 6 2000, with more than 22 years of service will receive an 89 7 increase in the percentage applied to the member's average 89 8 final compensation of 2 percent for each year of additional 89 9 service over 22 years up to a maximum of eight additional 89 10 years of service. 89 11 Code section 411.6, subsection 5, concerning an accidental 89 12 disability benefit, is amended to provide that a city shall 89 13 notify the retirement system if a member is temporarily 89 14 incapacitated for at least 60 days, or if the city expects a 89 15 member to be temporarily incapacitated for at least 60 days. 89 16 The change also provides that the medical board can consult 89 17 with the member's treating physician during the incapacity. 89 18 Under current law, the system had no right to be involved 89 19 until the city determined that the disability is likely to be 89 20 permanent. 89 21 Code section 411.6, subsection 7, concerning reexaminations 89 22 of disability retirement beneficiaries, is amended. One 89 23 change permits the medical board, when the medical board 89 24 reexamines a disability-retired member, to suggest appropriate 89 25 treatment or rehabilitation for the member if the medical 89 26 board believes it might return the retired member to duty. 89 27 The earnings test for disability retirement beneficiaries is 89 28 also changed to provide that the test does not apply to a 89 29 beneficiary who is 55 years old or older. Under current law, 89 30 the earnings test would still apply to a beneficiary over 55 89 31 if that beneficiary would not have completed 22 years of 89 32 service if the beneficiary had remained in active service. 89 33 Finally, Code section 411.6, subsection 7, is amended by 89 34 adding a new paragraph which provides that a disability 89 35 retirement benefit shall cease if the member returns to duty 90 1 in a public safety occupation. The bill includes service as a 90 2 special service member under IPERS, a member of PORS, and a 90 3 member under Code chapter 411 who was not restored to active 90 4 duty. 90 5 Code section 411.6, subsection 8, governing an ordinary 90 6 death benefit, is changed. The bill provides that a 90 7 beneficiary can select, in lieu of the current death benefit, 90 8 the amount of contributions and interest the member could have 90 9 withdrawn pursuant to Code section 411.23. The bill also 90 10 allows a person over 22 years old but who still meets the 90 11 definition of child under the chapter to receive a death 90 12 benefit as provided in this subsection. In addition, the 90 13 change provides that if no beneficiary is designated, the 90 14 death benefit will be distributed, in the following priority, 90 15 to the member's surviving spouse, to the surviving children 90 16 regardless of age, to the member's surviving parents, to the 90 17 member's estate, and finally, to the member's heirs. 90 18 Code section 411.6, subsection 9, concerning an accidental 90 19 death benefit, is amended to provide that an eligible 90 20 accidental death benefit beneficiary can elect to receive an 90 21 ordinary death benefit instead. In addition, the subsection 90 22 provides that if no spouse, child, or parent eligible to 90 23 receive an accidental death benefit exists and an ordinary 90 24 death benefit is to be paid, the payment priority established 90 25 for an ordinary death benefit will be used to pay the benefit. 90 26 Code section 411.6, subsection 11, concerning pensions to 90 27 the spouse or children of a deceased pensioned member, is 90 28 amended to provide that a person over 22 years old but who 90 29 still meets the definition of child under the chapter to 90 30 receive a pension as provided in this subsection. 90 31 Code section 411.6 is amended by adding new subsection 14 90 32 governing the designation of a death beneficiary. The new 90 33 subsection provides that a designation of a person other than 90 34 the spouse of a member must have the consent of the spouse. 90 35 In addition, a beneficiary designation is deemed revoked if 91 1 the member marries, divorces, or files a new designation. 91 2 Code section 411.6, new subsection 15, provides for a 91 3 $100,000 lump sum payment to a person authorized to receive an 91 4 accidental death benefit if a member in service covered by the 91 5 municipal fire and police retirement system dies as a result 91 6 of a traumatic personal injury incurred in the line of duty. 91 7 The benefit is in addition to the benefit currently provided 91 8 for an accidental death while in the performance of duty. The 91 9 bill takes effect upon enactment and applies retroactively to 91 10 January 1, 1992. 91 11 Code section 411.6 is amended by adding new subsection 16 91 12 providing that a member otherwise eligible for a disability 91 13 pension would be ineligible under certain circumstances. The 91 14 new subsection provides that a member is ineligible to receive 91 15 a disability pension if the disability was caused by the 91 16 member's chemical dependency on certain controlled substances, 91 17 an act in which the member is convicted of a felony, or if a 91 18 mental disability was caused by appropriate disciplinary 91 19 actions or conflicts at work. However, if the medical board 91 20 finds that alcoholism or drug addiction contributed to the 91 21 disability, the member still receives a disability pension but 91 22 will be required to submit to treatment and be reevaluated in 91 23 24 months. If the member fails to comply with treatment and 91 24 the reevaluation indicates that the member would not be 91 25 disabled but for the alcoholism or addiction, the member is 91 26 then ineligible to receive a disability pension. 91 27 Code section 411.6 is amended by adding new subsection 17 91 28 providing that a member otherwise eligible for a pension would 91 29 be ineligible for that period when the member is incarcerated 91 30 due to a conviction for a felony. The new subsection provides 91 31 that the member's pension would be paid to the member's 91 32 spouse, if any, and then to any children of the member. 91 33 However, if no spouse or children exist, then the pension 91 34 remains payable to the individual. The new subsection does 91 35 provide, however, that the provisions of this new subsection 92 1 do not impair the right of a person entitled to an amount from 92 2 the member pursuant to a marital property, spousal support, or 92 3 child support agreement and do not impair the statutory rights 92 4 of a governmental entity. 92 5 Code section 411.11, concerning contributions to the system 92 6 by a city, is amended. One change provides that if a member 92 7 is awarded back pay from a city that would otherwise 92 8 constitute earnable compensation under the chapter, 92 9 contributions, and interest on the back pay awarded, shall be 92 10 paid to the system. In addition, the back pay is then 92 11 allocated to the member's earnable compensation for the period 92 12 in which it would have been paid. Another change to the 92 13 section allows the system to collect interest on unpaid 92 14 contributions at a rate equal to the system's interest rate 92 15 assumption or the interest charged by a bank on the system's 92 16 short-term investment fund account. In addition, the system 92 17 is granted the right to collect unpaid contributions from a 92 18 city in a legal action with costs of the action assessed to 92 19 the city if the system prevails. The changes to this section 92 20 take effect upon enactment and are retroactively applicable to 92 21 January 1, 1992. 92 22 Code section 411.22, concerning the system's right to 92 23 maintain an action to recover benefits paid when a third party 92 24 is liable, is amended. The section is amended to provide that 92 25 the system is subrogated to the rights of a member's 92 26 beneficiary who receives a death benefit for the death of a 92 27 member in which a third party is liable. In addition, the 92 28 section is changed to provide that the system is entitled to 92 29 bring an action against a liable third party for lost earnings 92 30 and lost earnings capacity prior to the member or the member's 92 31 estate having the right to seek recovery. Under current law, 92 32 the member has the right to seek legal action and the system 92 33 is entitled to maintain an action if the member fails to bring 92 34 an action after the system requests the member to bring the 92 35 action. The amended section provides that if the system 93 1 recovers damages, the court shall enter judgment in an amount 93 2 for the system sufficient to pay the system for any past and 93 3 future benefits for which the system is liable and to pay the 93 4 system the costs of the action. The remainder of any damages 93 5 recovered shall be awarded to the member or member's 93 6 beneficiary or estate. The amended section further provides 93 7 that the member or member's estate may maintain an action if 93 8 the system declines in writing to maintain an action or fails 93 9 to maintain an action within 180 days of receiving notice of 93 10 the potential third-party liability. 93 11 The bill also provides that it is the intent of the general 93 12 assembly that members of the statewide system receive a 93 13 retirement benefit of 90 percent of their earnable 93 14 compensation after 30 years of service once the system can 93 15 afford it. 93 16 JUDICIAL RETIREMENT SYSTEM 93 17 Code section 602.9104, governing contributions from judges 93 18 and the state to the judicial retirement system, is amended. 93 19 The change provides that the state will contribute 23.7 93 20 percent of all judges' salaries, and each judge will 93 21 contribute 5 percent of the judge's salary to the fund, until 93 22 the actuary determines that the fund has reached fully funded 93 23 status based upon the benefits provided judges as of July 1, 93 24 2001. Current law provides that the stated percentages shall 93 25 be contributed until the fund has reached fully funded status 93 26 based upon the benefits provided judges as of the date of the 93 27 actuarial valuation. Once fully funded status is reached, 93 28 based upon the benefits provided as of July 1, 2001, the 93 29 amendment to Code section 602.9104 provides that the state 93 30 contribute 60 percent, and the judges' 40 percent, of the cost 93 31 to maintain the fund in a fully funded status. Under current 93 32 law, once fully funded status is reached, the state's 93 33 contribution is decreased while maintaining the judge's 4 93 34 percent contribution rate. 93 35 Code section 602.9107, governing the basic retirement 94 1 annuity for a judge, is amended. The amendment provides that 94 2 the maximum annuity for a judge retiring between July 1, 2000, 94 3 and July 1, 2001, shall be limited to 56 percent of the 94 4 judge's average annual salary for the last three years of 94 5 service, while the maximum annuity for a judge retiring on or 94 6 after July 1, 2001, shall be limited to 60 percent. Under 94 7 current law, a judge receives an annuity based on 3 percent of 94 8 salary multiplied by the number of years of service with a cap 94 9 of 52 percent. The increase in this percentage is also 94 10 applied to the calculation of a senior judge pension with the 94 11 percentage to be applied to the benefits in existence as of 94 12 the date the judge ceased to be a full-time judge. 94 13 LSB 5811SC 78 94 14 ec/cf/24.1
Text: SSB03208 Text: SSB03210 Text: SSB03200 - SSB03299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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