Text: HF02433 Text: HF02435 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section. 1. NEW SECTION. 19A.12F ELIGIBLE ALTERNATIVE 1 2 PENSION AND ANNUITY RETIREMENT SYSTEM. 1 3 1. The department shall establish an eligible alternative 1 4 pension and annuity retirement system, hereafter called the 1 5 "retirement system", effective July 1, 2003, for members of 1 6 the general assembly of Iowa pursuant to the requirements of 1 7 this section. The department shall be the plan sponsor of the 1 8 retirement system and shall file an application for a 1 9 favorable determination letter for the retirement system with 1 10 the internal revenue service. 1 11 2. The department shall select a provider of the 1 12 retirement system that is a financial institution capable of 1 13 providing bundled services for the retirement system, 1 14 including, but not limited to, administration, investment 1 15 management, member education, and recordkeeping. In selecting 1 16 a provider, the department shall place primary emphasis on the 1 17 reasonableness of services in relation to cost, the ability 1 18 and experience of the provider in providing bundled retirement 1 19 services, the financial stability of the provider, and the 1 20 ability of the provider to provide services as required by 1 21 this section. 1 22 3. To be an eligible alternative retirement benefits 1 23 system, the retirement system shall meet the following 1 24 requirements: 1 25 a. The retirement system shall be an employer-sponsored 1 26 defined contribution plan requiring mandatory employer 1 27 contributions that meet the requirements of section 401(a) of 1 28 the Internal Revenue Code. 1 29 b. The employer's and employee's annual contribution in 1 30 dollars under an eligible alternative retirement benefits 1 31 system described in this section shall equal, but not exceed, 1 32 the annual contribution in dollars which the employer and 1 33 employee would contribute if the employee had elected to 1 34 remain an active member pursuant to the Iowa public employees' 1 35 retirement system, as set forth in section 97B.11. 2 1 Contributions under the retirement system shall be treated in 2 2 the same manner as contributions under the Iowa public 2 3 employees' retirement system are treated pursuant to section 2 4 97B.11A. 2 5 c. Employer and employee contributions under the 2 6 retirement system shall be fully vested immediately. 2 7 d. Upon resignation or retirement as a member of the 2 8 general assembly, the person shall be eligible to receive a 2 9 benefit payable in at least any of the following forms: 2 10 (1) Payment of all or part of the person's account balance 2 11 in the retirement system in a lump sum. 2 12 (2) Payment based on the person's account balance in the 2 13 retirement system in monthly, quarterly, or annual 2 14 installments over a fixed reasonable period of time, not 2 15 exceeding the life expectancy of the person and the person's 2 16 beneficiary, if applicable. 2 17 (3) Payment based on the person's account balance in the 2 18 form of a single life or joint life and survivorship annuity. 2 19 4. Persons who become a member of the general assembly on 2 20 or after July 1, 2003, may elect coverage under the retirement 2 21 system established in this section in lieu of coverage under 2 22 the Iowa public employees' retirement system, pursuant to the 2 23 requirements of section 97B.42. 2 24 Sec 2. Section 97B.42, Code 2001, is amended by adding the 2 25 following new unnumbered paragraph: 2 26 NEW UNNUMBERED PARAGRAPH. Notwithstanding any other 2 27 provision of this section, commencing July 1, 2003, an 2 28 employee who is a member of the general assembly of Iowa may 2 29 elect coverage under the eligible alternative retirement 2 30 benefits system as provided in section 19A.12F, in lieu of 2 31 continuing or commencing contributions to the Iowa public 2 32 employees' retirement system. However, the employer's and 2 33 employee's annual contribution in dollars to the eligible 2 34 alternative retirement benefits system shall equal, but not 2 35 exceed, the annual contribution in dollars which the employer 3 1 and employee would contribute if the employee had elected to 3 2 remain an active member under this chapter, as set forth in 3 3 section 97B.11. A member who elects coverage under the 3 4 eligible alternative retirement benefits system as provided by 3 5 this paragraph may withdraw the member's accumulated 3 6 contributions effective when coverage under the eligible 3 7 alternative retirement benefits system commences. A member 3 8 who is a member of the general assembly of Iowa prior to July 3 9 1, 2003, must file an election for coverage under the eligible 3 10 alternative retirement benefits system described in section 3 11 19A.12F, with the department within eighteen months of the 3 12 first day on which coverage commences under the eligible 3 13 alternative retirement benefits system described in section 3 14 19A.12F, or the employee shall remain a member under this 3 15 chapter and shall not be eligible to elect to participate in 3 16 the eligible alternative retirement benefits system at a later 3 17 date. A person who becomes a member of the general assembly 3 18 of Iowa on or after July 1, 2003, must file an election for 3 19 coverage under the eligible alternative retirement benefits 3 20 system with the department within sixty days of commencing 3 21 employment, or the employee shall remain a member under this 3 22 chapter and shall not be eligible to elect to participate in 3 23 the eligible alternative retirement benefits system at a later 3 24 date. The department shall cooperate with the legislative 3 25 council of the general assembly to facilitate the 3 26 implementation of this provision. 3 27 EXPLANATION 3 28 This bill requires the department of personnel to establish 3 29 an alternative pension and annuity retirement system for state 3 30 legislators. The bill provides, effective July 1, 2003, that 3 31 current state legislators, and state legislators elected on or 3 32 after July 1, 2003, have the option to elect to be covered 3 33 under the Iowa public employees' retirement system (IPERS) or 3 34 the alternative retirement system within a specified time 3 35 period. 4 1 The bill establishes the requirements for the alternative 4 2 plan, including the required payment options following a 4 3 participant's retirement. The bill requires that the plan be 4 4 an employer-sponsored defined contribution plan and that the 4 5 contributions to the plan be the same as the annual 4 6 contributions that would have been made to IPERS if the 4 7 employee elected to remain in IPERS. The bill provides that 4 8 employer and employee contributions to the alternative 4 9 retirement system are fully vested immediately. The bill 4 10 establishes the criteria for selecting the provider of the 4 11 alternative retirement system. 4 12 LSB 6140HH 79 4 13 ec/cls/14.1
Text: HF02433 Text: HF02435 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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