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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