Text: HF02469 Text: HF02471 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 97B.48A, subsection 1, unnumbered 1 2 paragraph 1, Code 2001, is amended to read as follows: 1 3 If a member who has not reached the member's sixty-fifth 1 4 birthday and who has a bona fide retirement under this chapter 1 5 is in regular full-time employment during a calendar year, the 1 6 member's retirement allowance shall be reduced by fifty cents 1 7 for each dollar the member earns over the limit provided in 1 8 this subsection. However, employment is not full-time 1 9 employment until the member receives remuneration in an amount 1 10 in excess offourteentwenty-five thousand dollars for a 1 11 calendar year, or an amount equal to the amount of 1 12 remuneration permitted for a calendar year for persons under 1 13 sixty-five years of age before a reduction in federal social 1 14 security retirement benefits is required, whichever is higher. 1 15 Effective the first of the month in which a member attains the 1 16 age of sixty-five years, a retired member may receive a 1 17 retirement allowance without a reduction after return to 1 18 covered employment regardless of the amount of remuneration 1 19 received. 1 20 Sec. 2. Section 97B.49B, subsection 1, paragraph e, 1 21 subparagraph (1), Code 2001, is amended to read as follows: 1 22 (1) A conservation peace officer employed under section 1 23 456A.13 or as designated by a county conservation board 1 24 pursuant to section 350.5. 1 25 Sec. 3. Section 97B.51, subsection 1, unnumbered paragraph 1 26 1, Code 2001, is amended to read as follows: 1 27 Each member has the right prior to the member's retirement 1 28 date to elect to have the member's retirement allowance 1 29 payable under one of the options set forth in this section. 1 30 The amount of the optional retirement allowance selected in 1 31 paragraph "a", "c", "d",or"e", or "f", shall be the 1 32 actuarial equivalent of the amount of the retirement allowance 1 33 otherwise payable to the member as determined by the system in 1 34 consultation with the system's actuary. The member shall make 1 35 an election by written request to the department and the 2 1 election is subject to the approval of the department. If the 2 2 member is married, election of an option under this section 2 3 requires the written acknowledgment of the member's spouse. 2 4 The member may, if eligible, select one of the following 2 5 options: 2 6 Sec. 4. Section 97B.51, subsection 1, Code 2001, is 2 7 amended by adding the following new paragraph: 2 8 NEW PARAGRAPH. f. A member retiring under section 97B.49B 2 9 or 97B.49C may select an allowance upon retirement as provided 2 10 under paragraph "c", and may elect to have the monthly 2 11 allowance otherwise payable to the member pursuant to that 2 12 paragraph recalculated as provided in this paragraph. A 2 13 member electing payment of a monthly allowance under this 2 14 paragraph shall have the member's monthly allowance increased, 2 15 as determined by the system's actuary, by an amount equal to 2 16 the monthly federal social security benefit that would be 2 17 payable to the member on the date the member would be first 2 18 eligible to receive a reduced social security pension benefit. 2 19 Upon reaching the date the member would be first eligible to 2 20 receive a reduced social security pension benefit, the 2 21 member's monthly retirement allowance shall be permanently 2 22 reduced, as determined by the system's actuary. A member 2 23 electing payment of an allowance under this paragraph shall 2 24 provide the system with a certified record of the member's 2 25 wage history from social security at least sixty days prior to 2 26 the member's first month of entitlement. 2 27 Sec. 5. NEW SECTION. 97B.80C PURCHASES OF PERMISSIVE 2 28 SERVICE CREDIT. 2 29 1. DEFINITIONS. For purposes of this section: 2 30 a. "Nonqualified service" means service that is not 2 31 qualified service. 2 32 b. "Permissive service credit" means credit that will be 2 33 recognized by the system for purposes of calculating a 2 34 member's benefit, for which the member did not previously 2 35 receive service credit in the system, and for which the member 3 1 voluntarily contributes to the system the amount required by 3 2 the system, not in excess of the amount necessary to fund the 3 3 benefit attributable to such service. 3 4 c. (1) "Qualified service" means any of the following: 3 5 (a) Service with the United States government or any state 3 6 or local government, including any agency or instrumentality 3 7 thereof, regardless of whether that government, agency, or 3 8 instrumentality was a covered employer at the time of the 3 9 service. 3 10 (b) Service with an association representing employees of 3 11 the United States government or any state or local government, 3 12 including any agency or instrumentality thereof, regardless of 3 13 whether that government, agency, or instrumentality was a 3 14 covered employer at the time of the service. 3 15 (c) Service with an educational organization which 3 16 normally maintains a regular faculty and curriculum, normally 3 17 has a regularly enrolled body of pupils or students in 3 18 attendance at the place where its educational activities are 3 19 regularly carried on, and is a public, private, or sectarian 3 20 school which provides elementary education or secondary 3 21 education through grade twelve. 3 22 (d) Military service other than military service required 3 23 to be recognized under Internal Revenue Code section 414(u) or 3 24 under the federal Uniformed Services Employment and 3 25 Reemployment Rights Act. 3 26 (2) "Qualified service" does not include service as 3 27 described in subparagraph (1) if the receipt of credit for 3 28 such service would result in the member receiving a retirement 3 29 benefit under more than one retirement plan for the same 3 30 period of service. 3 31 2. a. A member may make contributions to the system to 3 32 purchase up to the maximum amount of permissive service credit 3 33 for qualified service as determined by the division, pursuant 3 34 to Internal Revenue Code section 415(n) and the requirements 3 35 of this section. 4 1 b. A vested or retired member of the system who has five 4 2 or more full calendar years of covered wages may make 4 3 contributions to the system to purchase up to five years of 4 4 permissive service credit for nonqualified service as 4 5 determined by the division, pursuant to Internal Revenue Code 4 6 section 415(n) and the requirements of this section. 4 7 3. A member making contributions for a purchase of 4 8 permissive service credit under this section shall make 4 9 contributions in an amount equal to the actuarial cost of the 4 10 permissive service credit purchase. For purposes of this 4 11 subsection, the actuarial cost of the service purchase is an 4 12 amount determined by the division in accordance with actuarial 4 13 tables, as reported to the division by the system's actuary, 4 14 which reflects the actuarial cost necessary to fund an 4 15 increased retirement allowance resulting from the purchase of 4 16 permissive service credit. 4 17 4. The division shall ensure that the member, in 4 18 exercising an option provided in this section, does not exceed 4 19 the amount of annual additions to a member's account permitted 4 20 pursuant to section 415 of the federal Internal Revenue Code. 4 21 Sec. 6. RETROACTIVE APPLICABILITY. Section 97B.52, 4 22 subsection 2, Code 2001, establishing a line of duty death 4 23 benefit for a member in special service, is retroactively 4 24 applicable to January 1, 1992, and is applicable to covered 4 25 deaths occurring on and after that date. 4 26 EXPLANATION 4 27 This bill makes changes to the Iowa public employees' 4 28 retirement system (IPERS). 4 29 Code section 97B.48A, subsection 1, is amended to increase 4 30 the amount that an IPERS member who has a bona fide retirement 4 31 and is under 65 years of age can earn in public employment 4 32 covered by IPERS from $14,000 to $25,000 and still continue to 4 33 receive the member's retirement allowance without a reduction. 4 34 Current law and the bill provide that an IPERS member 4 35 receiving a retirement allowance who is under age 65 will have 5 1 the member's IPERS retirement allowance reduced by 50 cents 5 2 for each dollar the member earns in a calendar year in 5 3 employment covered by IPERS over the earnings limit 5 4 established in Code section 97B.48A. 5 5 Code section 97B.49B, subsection 1, paragraph "e", 5 6 subparagraph (1), is amended by adding a county conservation 5 7 peace officer as designated by a county conservation board as 5 8 a member of a protection occupation for purposes of 5 9 calculating the member's retirement under IPERS. 5 10 Code section 97B.51, subsection 1, is amended by adding a 5 11 new optional allowance upon retirement for special service 5 12 members of IPERS. The new paragraph provides that a member 5 13 retiring under Code section 97B.49B or 97B.49C can receive an 5 14 increase in the member's monthly allowance upon retirement 5 15 until the member reaches the age when the member can receive a 5 16 reduced social security benefit (now age 62) equal to the 5 17 social security benefit the member could receive upon reaching 5 18 that age. Upon reaching that age (62), the member's 5 19 retirement allowance will be reduced as determined by the 5 20 IPERS actuary. This modified monthly allowance applies only 5 21 to the optional allowance which provides for a lifetime 5 22 annuity for the member without a death benefit. 5 23 New Code section 97B.80C is established which permits a 5 24 member of IPERS to purchase additional service credit under 5 25 IPERS for both qualified and nonqualified service. "Qualified 5 26 service" is defined as service with a governmental employer, 5 27 an association representing employees of the government, and 5 28 an educational organization which provides elementary or 5 29 secondary education, in which the member does not receive a 5 30 retirement benefit for that service. "Nonqualified service" 5 31 is defined by the bill to include all other kinds of service 5 32 not defined as qualified service. The bill provides a member 5 33 must be a vested or retired member under IPERS with five years 5 34 of wages in order to purchase service credit for nonqualified 5 35 service and the purchase is limited to a maximum of five 6 1 years. The bill limits the purchase of qualified service to 6 2 that which is permitted under the federal Internal Revenue 6 3 Code. The bill provides that a purchase of service under this 6 4 new section shall be the full actuarial cost of the additional 6 5 service. The bill also provides that the purchase of service 6 6 under this new section is limited by Internal Revenue Code 6 7 requirements. 6 8 Current Code section 97B.52, subsection 2, which 6 9 establishes a $100,000 line of duty death benefit for a member 6 10 who dies while in special service, is made retroactively 6 11 applicable to January 1, 1992. 6 12 LSB 5743YH 79 6 13 ec/sh/8
Text: HF02469 Text: HF02471 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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