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House File 2532

Partial Bill History

Bill Text

PAG LIN
  1  1                                            HOUSE FILE 2532
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO PUBLIC RETIREMENT SYSTEMS AND PROVIDING EFFECTIVE
  1  5    AND RETROACTIVE APPLICABILITY DATES.  
  1  6 
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8 
  1  9                           DIVISION I
  1 10            PUBLIC SAFETY PEACE OFFICERS' RETIREMENT,
  1 11                 ACCIDENT, AND DISABILITY SYSTEM
  1 12    Section 1.  Section 80.36, Code 2001, is amended to read as
  1 13 follows:
  1 14    80.36  MAXIMUM AGE.
  1 15    The maximum age for a A person to shall not be employed as
  1 16 a peace officer in the department of public safety is after
  1 17 attaining sixty-five years of age.
  1 18    Sec. 2.  Section 97A.6, subsection 6, paragraph c, Code
  1 19 2001, is amended to read as follows:
  1 20    c.  Upon retirement for accidental disability on or after
  1 21 July 1, 1998, a member shall receive an accidental disability
  1 22 retirement allowance which shall consist of a pension in an
  1 23 amount equal to the greater of sixty percent of the member's
  1 24 average final compensation or the retirement allowance that
  1 25 the member would receive under subsection 2 if the member has
  1 26 had attained fifty-five years of age.
  1 27    Sec. 3.  Section 97A.6, subsection 14, Code 2001, is
  1 28 amended to read as follows:
  1 29    14.  PENSIONS PAYABLE.  Pensions payable under this section
  1 30 shall be adjusted as follows:
  1 31    a.  Effective July 1, 1980, and on On each July 1
  1 32 thereafter and January 1, the monthly pensions authorized in
  1 33 this section payable to retired members and to beneficiaries,
  1 34 except children of a deceased member, shall be adjusted as
  1 35 provided in this paragraph.  The monthly pension of each
  2  1 retired member and each beneficiary shall be adjusted by
  2  2 adding to that monthly pension an amount equal to the amounts
  2  3 determined in subparagraphs (1) and (2).  The adjusted monthly
  2  4 pension of a retired member shall not be less than the amount
  2  5 which was paid at the time of the member's retirement.
  2  6    (1)  An amount equal to the difference between the monthly
  2  7 earnable compensation payable to an active member of the
  2  8 department, of the same rank and position on the salary scale
  2  9 as was held by the retired or deceased member at the time of
  2 10 the member's retirement or death, for July of the preceding
  2 11 year the month for which the last preceding adjustment was
  2 12 made and the monthly earnable compensation payable to an
  2 13 active member of the department of the same rank and position
  2 14 on the salary scale for July of the year just beginning the
  2 15 month for which the adjustment is made shall be multiplied by
  2 16 the following applicable percentage:
  2 17    (a)  Forty percent for members receiving a service
  2 18 retirement allowance and for beneficiaries receiving a pension
  2 19 under subsection 9 of this section.
  2 20    (b)  Forty percent for members with five or more years of
  2 21 membership service who are receiving an ordinary disability
  2 22 retirement allowance.
  2 23    (c)  Twenty-four percent for members with less than five
  2 24 years of membership service who are receiving an ordinary
  2 25 disability retirement allowance, and for beneficiaries
  2 26 receiving a pension under subsection 8 of this section.
  2 27    (d)  Forty percent for members receiving an accidental
  2 28 disability allowance.
  2 29    The amount added to the monthly pension of a surviving
  2 30 spouse receiving a pension under subsection 12, paragraph "a",
  2 31 of this section shall be equal to one-half the amount that
  2 32 would have been added to the monthly pension of the retired
  2 33 member under this subparagraph.
  2 34    (2)  The For each adjustment occurring on July 1, the
  2 35 following applicable amount determined as follows:
  3  1    (a)  Fifteen dollars where the member's retirement date was
  3  2 less than five years prior to the effective date of the
  3  3 adjustment.
  3  4    (b)  Twenty dollars where the member's retirement date was
  3  5 at least five years, but less than ten years, prior to the
  3  6 effective date of the adjustment.
  3  7    (c)  Twenty-five dollars where the member's retirement date
  3  8 was at least ten years, but less than fifteen years, prior to
  3  9 the effective date of the adjustment.
  3 10    (d)  Thirty dollars where the member's retirement date was
  3 11 at least fifteen years, but less than twenty years, prior to
  3 12 the effective date of the adjustment.
  3 13    (e)  Thirty-five dollars where the member's retirement date
  3 14 was at least twenty years prior to the effective date of the
  3 15 adjustment.
  3 16    As of the first of July 1 and January 1 of each year, the
  3 17 monthly pension payable to each surviving child under the
  3 18 provisions of subsections 8, 9, and 12 of this section shall
  3 19 be adjusted to equal six percent of the monthly earnable
  3 20 compensation payable on that July 1 in the month for which the
  3 21 adjustment is made to an active member having the rank of
  3 22 senior patrol officer of the Iowa state patrol.
  3 23    b.  All monthly pensions adjusted as provided in this
  3 24 subsection shall be payable beginning on July 1 of the year
  3 25 the first of the month in which the adjustment is made and
  3 26 shall continue in effect until the next following July 1 month
  3 27 in which an adjustment is made pursuant to this subsection at
  3 28 which time the monthly pensions shall again be adjusted in
  3 29 accordance with paragraph "a" of this subsection.
  3 30    c.  The adjustment of pensions required by this subsection
  3 31 shall recognize the retired or deceased member's position on
  3 32 the salary scale within the member's rank at the time of the
  3 33 member's retirement or death.  In the event that the rank or
  3 34 position held by the retired or deceased member at the time of
  3 35 retirement or death is subsequently abolished, adjustments in
  4  1 the pensions of the member or of the member's spouse or
  4  2 children shall be computed by the board of trustees as though
  4  3 such rank or position had not been abolished and salary
  4  4 increases had been granted to such rank or position on the
  4  5 same basis as increases granted to other ranks and positions
  4  6 in the department.
  4  7    d.  A retired member eligible for benefits under the
  4  8 provisions of subsection 1 is not eligible for the annual
  4  9 readjustment of pensions provided in this subsection unless
  4 10 the member served at least twenty-two years prior to the
  4 11 member's termination of employment.
  4 12    Sec. 4.  NEW SECTION.  97A.14A  LIABILITY OF THIRD PARTIES
  4 13 – SUBROGATION.
  4 14    1.  If, on or after July 1, 2002, a member receives an
  4 15 injury or dies for which benefits are payable under section
  4 16 97A.6, subsection 3, 5, 8, or 9, or section 97A.14, and if the
  4 17 injury or death is caused under circumstances creating a legal
  4 18 liability for damages against a third party other than the
  4 19 system, the system, the member, or the member's dependent or
  4 20 the trustee of the dependent, may maintain an action for
  4 21 damages against the third party as provided by this section.
  4 22 If a member, the member's dependent, or the trustee of the
  4 23 dependent commences such an action, the plaintiff member,
  4 24 dependent, or trustee shall serve a copy of the original
  4 25 notice upon the system not less than ten days before the trial
  4 26 of the action, but a failure to serve the notice does not
  4 27 prejudice the rights of the system, and the following rights
  4 28 and duties ensue:
  4 29    a.  The system shall be indemnified out of the recovery of
  4 30 damages to the extent of benefit payments made by the system,
  4 31 with legal interest, except that the attorney fees and
  4 32 expenses of the plaintiff member, dependent, or trustee may be
  4 33 first allowed by the district court.
  4 34    b.  The system has a lien on the damage claim against the
  4 35 third party and on any judgment on the damage claim for
  5  1 benefits for which the system is liable.  In order to continue
  5  2 and preserve the lien, the system shall file a notice of the
  5  3 lien within thirty days after receiving a copy of the original
  5  4 notice in the office of the clerk of the district court in
  5  5 which the action is filed.
  5  6    2.  If a member, the member's dependent, or the trustee of
  5  7 the dependent fails to bring an action for damages against a
  5  8 third party within ninety days after the system, through the
  5  9 board of trustees, requests the member, the member's
  5 10 dependent, or the trustee of the dependent in writing to do
  5 11 so, then the system is subrogated to the rights of the member
  5 12 and may, by action of the board of trustees, maintain the
  5 13 action against the third party, and may recover damages for
  5 14 the injury or death to the same extent that the member, the
  5 15 member's dependent, or the trustee of the dependent may
  5 16 recover damages for the injury or death.  If the system
  5 17 recovers damages in the action, the court shall enter judgment
  5 18 for distribution of the recovery as follows:
  5 19    a.  A sum sufficient to repay the system for the amount of
  5 20 such benefits actually paid by the system up to the time of
  5 21 the entering of the judgment.
  5 22    b.  A sum sufficient to pay the system the present worth,
  5 23 computed at the interest rate provided in section 535.3 for
  5 24 court judgments and decrees, of the future payments of such
  5 25 benefits for which the system is liable until the member
  5 26 attains the age of fifty-five, but the sum is not a final
  5 27 adjudication of the future payment which the member is
  5 28 entitled to receive.
  5 29    c.  Any balance of the recovery remaining after
  5 30 distribution of the recovery pursuant to paragraphs "a" and
  5 31 "b" shall be paid to the member or the member's beneficiary.
  5 32    3.  Before a settlement is effective between the system and
  5 33 a third party who is liable for any injury, the member, the
  5 34 member's dependent, or the trustee of the dependent must
  5 35 consent in writing to the settlement; and if the settlement is
  6  1 between the member, the member's dependent, or the trustee of
  6  2 the dependent and a third party, the system must consent in
  6  3 writing to the settlement; or on refusal to consent, in either
  6  4 case, the workers' compensation commissioner must consent in
  6  5 writing to the settlement.
  6  6    4.  For purposes of subrogation under this section, a
  6  7 payment made to an injured member, the member's guardian, or
  6  8 the member's legal representative, by or on behalf of a third
  6  9 party or the third party's principal or agent, who is liable
  6 10 for, connected with, or involved in causing the injury or
  6 11 death to the member, shall be considered paid as damages
  6 12 because the injury or death was caused under circumstances
  6 13 creating a legal liability against the third party, whether
  6 14 the payment is made under a covenant not to sue, compromise
  6 15 settlement, denial of liability, or is otherwise made.
  6 16    5.  All funds recovered by the system under this section
  6 17 shall be deposited in the pension accumulation fund created in
  6 18 section 97A.8.
  6 19    Sec. 5.  Section 97A.17, subsection 2, Code 2001, is
  6 20 amended to read as follows:
  6 21    2.  Commencing July 1, 1996, a vested member of an eligible
  6 22 retirement system who terminates employment covered by one
  6 23 eligible retirement system and, within sixty days one year,
  6 24 commences employment covered by the other eligible retirement
  6 25 system may elect to transfer the average accrued benefit
  6 26 earned from the former system to the current system.  The
  6 27 member shall file an application with the current system for
  6 28 transfer of the average accrued benefit within ninety days of
  6 29 the commencement of employment with the current system.
  6 30    Sec. 6.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.
  6 31    1.  The section of this Act amending section 97A.6,
  6 32 subsection 6, being deemed of immediate importance, takes
  6 33 effect upon enactment and is retroactively applicable to July
  6 34 1, 1998.
  6 35    2.  The section of this Act amending section 97A.17, being
  7  1 deemed of immediate importance, takes effect upon enactment
  7  2 and is retroactively applicable to July 1, 1996.  
  7  3                           DIVISION II
  7  4        IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
  7  5    Sec. 7.  Section 97B.1A, subsection 8, paragraph a,
  7  6 subparagraph (1), Code Supplement 2001, is amended to read as
  7  7 follows:
  7  8    (1)  Elective officials in positions for which the
  7  9 compensation is on a fee basis, elective officials of school
  7 10 districts, elective officials of townships, and elective
  7 11 officials of other political subdivisions who are in part-time
  7 12 positions.  An elective official covered under this chapter
  7 13 section may terminate membership under this chapter by
  7 14 informing the department in writing of the expiration of the
  7 15 member's term of office or by informing the department of the
  7 16 member's intent to terminate membership for employment as an
  7 17 elective official and establishing that the member has a bona
  7 18 fide termination of employment from all employment covered
  7 19 under this chapter other than as an elective official and that
  7 20 the member has filed a completed application for benefits form
  7 21 with the department.  A county attorney is an employee for
  7 22 purposes of this chapter whether that county attorney is
  7 23 employed on a full-time or part-time basis.
  7 24    Sec. 8.  Section 97B.1A, subsection 8, paragraph b,
  7 25 subparagraph (2), Code Supplement 2001, is amended to read as
  7 26 follows:
  7 27    (2)  Graduate medical students while serving as interns or
  7 28 resident doctors in training at any hospital, or county
  7 29 medical examiners and deputy county medical examiners under
  7 30 chapter 331, division V, part 8, who are not full-time county
  7 31 employees.
  7 32    Sec. 9.  Section 97B.1A, subsection 8, paragraph b, Code
  7 33 Supplement 2001, is amended by adding the following new
  7 34 subparagraph:
  7 35    NEW SUBPARAGRAPH.  (9)  Persons employed by the Iowa
  8  1 student loan liquidity corporation.
  8  2    Sec. 10.  Section 97B.1A, subsection 24, paragraph a, Code
  8  3 Supplement 2001, is amended to read as follows:
  8  4    a.  "Three-year average covered wage" means, for a member
  8  5 who retires prior to July 1, 2003 2005, a member's covered
  8  6 wages averaged for the highest three years of the member's
  8  7 service, except as otherwise provided in this subsection.  The
  8  8 highest three years of a member's covered wages shall be
  8  9 determined using calendar years.  However, if a member's final
  8 10 quarter of a year of employment does not occur at the end of a
  8 11 calendar year, the department may determine the wages for the
  8 12 third year by computing the average quarter of all quarters
  8 13 from the member's highest calendar year of covered wages not
  8 14 being used in the selection of the two highest years and using
  8 15 the computed average quarter for each quarter in the third
  8 16 year in which no wages have been reported in combination with
  8 17 the final quarter or quarters of the member's service to
  8 18 create a full year.  However, the department shall not use the
  8 19 member's final quarter of wages if using that quarter would
  8 20 reduce the member's three-year average covered wage.  If the
  8 21 three-year average covered wage of a member exceeds the
  8 22 highest maximum covered wages in effect for a calendar year
  8 23 during the member's period of service, the three-year average
  8 24 covered wage of the member shall be reduced to the highest
  8 25 maximum covered wages in effect during the member's period of
  8 26 service.  Notwithstanding any other provision of this
  8 27 paragraph to the contrary, a member's wages for the third year
  8 28 as computed by this paragraph shall not exceed, by more than
  8 29 three percent, the member's highest actual calendar year of
  8 30 covered wages for a member whose first month of entitlement is
  8 31 January 1999 or later.
  8 32    Sec. 11.  Section 97B.1A, subsection 24, paragraph c, Code
  8 33 Supplement 2001, is amended to read as follows:
  8 34    c.  "Three-year average covered wage" means, for a member
  8 35 who retires on or after July 1, 2003 2005, the greater of the
  9  1 member's covered wages averaged for a member's highest twelve
  9  2 consecutive quarters of service or the member's covered wages
  9  3 averaged for a member's highest three calendar years of
  9  4 service.  The department shall adopt rules to implement this
  9  5 paragraph in accordance with the requirements of this chapter
  9  6 and the federal Internal Revenue Code.
  9  7    Sec. 12.  Section 97B.15, Code 2001, is amended to read as
  9  8 follows:
  9  9    97B.15  RULES, POLICIES, AND PROCEDURES.
  9 10    The department may adopt rules under chapter 17A and
  9 11 establish procedures, not inconsistent with this chapter,
  9 12 which are necessary or appropriate to implement this chapter
  9 13 and shall adopt reasonable and proper rules to regulate and
  9 14 provide for the nature and extent of the proofs and evidence
  9 15 and the method of taking and furnishing the proofs and
  9 16 evidence in order to establish the right to benefits under
  9 17 this chapter.  The department may adopt rules, and take action
  9 18 based on the rules, to conform the requirements for receipt of
  9 19 retirement benefits under this chapter to the mandates of
  9 20 applicable federal and state statutes and regulations.
  9 21    Prior to the adoption of rules, the department may
  9 22 establish interim written policies and procedures, and take
  9 23 action based on the policies and procedures, to conform the
  9 24 requirements for receipt of retirement benefits under this
  9 25 chapter to the applicable requirements of federal and state
  9 26 law.
  9 27    Sec. 13.  Section 97B.17, Code Supplement 2001, is amended
  9 28 to read as follows:
  9 29    97B.17  RECORDS MAINTAINED.
  9 30    1.  The department shall establish and maintain records of
  9 31 each member, including but not limited to, the amount of wages
  9 32 of each member, the contribution of each member with interest,
  9 33 and interest dividends credited.  The records may be
  9 34 maintained in paper, magnetic, or electronic form, including
  9 35 optical disk storage.  These records are the basis for the
 10  1 compilation of the retirement benefits provided under this
 10  2 chapter.
 10  3    2.  The following records maintained under this chapter are
 10  4 not public records for the purposes of chapter 22:
 10  5    1. a.  Records containing social security numbers.
 10  6    2. b.  Records specifying amounts accumulated in members'
 10  7 accounts and supplemental accounts.
 10  8    3. c.  Records containing names or addresses of members or
 10  9 their beneficiaries.
 10 10    4. d.  Records containing amounts of payments to members or
 10 11 their beneficiaries.
 10 12    5. e.  Records containing financial or commercial
 10 13 information that relates to the investment of system funds if
 10 14 the disclosure of such information could result in a loss to
 10 15 the system or to the provider of the information.
 10 16    3.  Summary information concerning the demographics of the
 10 17 members and general statistical information concerning the
 10 18 system is subject to chapter 22, as well as aggregate
 10 19 information by category.
 10 20    However, the department's records are evidence for the
 10 21 purpose of proceedings before the department or any court of
 10 22 the amounts of wages and the periods in which they were paid,
 10 23 and the absence of an entry as to a member's wages in the
 10 24 records for any period is evidence that wages were not paid
 10 25 that member in the period.
 10 26    4.  Notwithstanding any provisions of chapter 22 to the
 10 27 contrary, the department's records may be released to any
 10 28 political subdivision, instrumentality, or other agency of the
 10 29 state solely for use in a civil or criminal law enforcement
 10 30 activity pursuant to the requirements of this paragraph
 10 31 subsection.  To obtain the records, the political subdivision,
 10 32 instrumentality, or agency shall, in writing, certify that the
 10 33 activity is authorized by law, provide a written description
 10 34 of the information desired, and describe the law enforcement
 10 35 activity for which the information is sought.  The department
 11  1 shall not be civilly or criminally liable for the release or
 11  2 rerelease of records in accordance with this paragraph
 11  3 subsection.
 11  4    5.  Confidential records of the division maintained for the
 11  5 operation of the system may be released to the directors,
 11  6 agents, and employees of the legislative fiscal bureau, the
 11  7 department of revenue and finance, the department of
 11  8 management, the department of personnel, or an employer of
 11  9 employees covered by the system pursuant to rules adopted by
 11 10 the division for the performance of the requestor's duties.
 11 11 To obtain a record under this subsection, the person
 11 12 requesting the records shall provide a written description of
 11 13 the information requested and the reason for requesting the
 11 14 records to the division.  A person receiving a record pursuant
 11 15 to this subsection shall maintain the confidentiality of any
 11 16 information otherwise required to be kept confidential and
 11 17 shall be subject to the same penalties as the custodian of the
 11 18 records for the public dissemination of such information.
 11 19    Sec. 14.  Section 97B.18, Code 2001, is amended to read as
 11 20 follows:
 11 21    97B.18  STATEMENT OF ACCUMULATED CREDIT.
 11 22    After the expiration of each calendar year and prior to
 11 23 July 1 of the succeeding year, the department shall furnish
 11 24 each member with a statement of the member's accumulated
 11 25 contributions and benefit credits accrued under this chapter
 11 26 up to the end of that calendar year and additional information
 11 27 the department deems useful to a member.  The department may
 11 28 furnish an estimate of the credits as of the projected normal
 11 29 retirement date of the member under section 97B.45.  The
 11 30 department shall mail the statement to each employer not later
 11 31 than June 30 of the succeeding calendar year.  The employer
 11 32 shall distribute the statements to its employees, and the
 11 33 records of the department as shown by the statement as to the
 11 34 wages of each individual member for a year and the periods of
 11 35 payment shall be conclusive for the purpose of this chapter,
 12  1 except as otherwise provided in this chapter.
 12  2    Effective for the calendar year beginning January 1, 1994,
 12  3 the department may transmit the statements directly to the
 12  4 members in lieu of mailing them to the employers.
 12  5    Sec. 15.  NEW SECTION.  97B.42C  RETIREMENT SYSTEM MERGER
 12  6 – MUNICIPAL UTILITY RETIREMENT SYSTEM.
 12  7    A municipal water utility or waterworks that has
 12  8 established a pension and annuity retirement system for its
 12  9 employees pursuant to chapter 412 may adopt a resolution to
 12 10 authorize the merger of its pension and annuity retirement
 12 11 system with and into the Iowa public employees' retirement
 12 12 system.  The system is authorized, but is not required, to
 12 13 accept such a proposal.  The governing body of the municipal
 12 14 water utility or waterworks and the Iowa public employees'
 12 15 retirement system shall, acting in their fiduciary capacities,
 12 16 mutually determine the terms and conditions of such a merger,
 12 17 including any additional funds necessary to fund the service
 12 18 credits being transferred to the Iowa public employees'
 12 19 retirement system, and either party may decline the merger if
 12 20 they cannot agree on such terms and conditions.  The system
 12 21 shall adopt such rules as it deems necessary and prudent to
 12 22 effectuate mergers as provided by this section.
 12 23    Sec. 16.  Section 97B.44, Code 2001, is amended by adding
 12 24 the following new unnumbered paragraph:
 12 25    NEW UNNUMBERED PARAGRAPH.  However, the system may accept a
 12 26 married member's designation or change in designation under
 12 27 this section without the written consent of the member's
 12 28 spouse if the member submits a notarized statement indicating
 12 29 that the member has been unable to locate the member's spouse
 12 30 to obtain the written consent of the spouse after reasonable
 12 31 diligent efforts.  The member's designation or change in
 12 32 designation shall become effective upon filing the necessary
 12 33 forms, including the notarized statement, with the division.
 12 34 The division shall not be liable to the member, the member's
 12 35 spouse, or to any other person affected by the member's
 13  1 designation or change of designation, based upon a designation
 13  2 or change of designation accomplished without the written
 13  3 consent of the member's spouse.
 13  4    Sec. 17.  Section 97B.45, Code 2001, is amended to read as
 13  5 follows:
 13  6    97B.45  NORMAL RETIREMENT DATE.
 13  7    A member's normal retirement date is any of the following,
 13  8 whichever is applicable to the member:
 13  9    1.  The first of the month in which a member attains the
 13 10 age of sixty-five years if the member has not completed twenty
 13 11 years of membership service.
 13 12    2.  The first of the month in which the member attains the
 13 13 age of sixty-two years if the member has completed twenty
 13 14 years of membership service.
 13 15    3.  The first of any month in which the member has
 13 16 completed twenty years of membership service if the member has
 13 17 attained the age of sixty-two years but is not yet sixty-five
 13 18 years of age.
 13 19    4.  The first of any month in which the member is at least
 13 20 fifty-five years of age and for which the sum of the number of
 13 21 years of membership service and prior service and the member's
 13 22 age in years as of the member's last birthday equals or
 13 23 exceeds eighty-eight.
 13 24    A member may retire after the member's sixty-fifth birthday
 13 25 except as otherwise provided in section 97B.46.  A member
 13 26 retiring on or after the normal retirement date, as provided
 13 27 in section 97B.46, shall submit a written notice to the
 13 28 department setting forth the date the retirement is to become
 13 29 effective.  The date shall be after the member's last day of
 13 30 service and not before the first day of the sixth calendar
 13 31 month preceding the month in which the notice is filed.
 13 32    Sec. 18.  Section 97B.48, subsection 3, Code 2001, is
 13 33 amended to read as follows:
 13 34    3.  As of On or before the first of the month in which a
 13 35 member attains the age of seventy years, the department
 14  1 division shall provide written notification to the each member
 14  2 for whom the division has an address that the member may
 14  3 commence receiving a retirement allowance regardless of the
 14  4 member's employment status.  Prior to receiving a retirement
 14  5 allowance pursuant to this subsection, a member shall
 14  6 acknowledge in writing that the member was informed by the
 14  7 department of the consequences of electing to receive a
 14  8 retirement allowance pursuant to this subsection and that
 14  9 receipt of a retirement allowance under this subsection is
 14 10 optional.  Upon termination from employment of a member
 14 11 receiving a retirement allowance pursuant to this subsection,
 14 12 the member is entitled to have the member's monthly retirement
 14 13 allowance recalculated using the applicable formula for
 14 14 determining a retirement allowance pursuant to sections
 14 15 97B.49A through 97B.49G, as applicable, in place at the time
 14 16 of the member's first month of entitlement.
 14 17    Sec. 19.  Section 97B.48A, subsection 1, unnumbered
 14 18 paragraph 1, Code 2001, is amended to read as follows:
 14 19    If a member who has not reached the member's sixty-fifth
 14 20 birthday and who has a bona fide retirement under this chapter
 14 21 is in regular full-time employment during a calendar year, the
 14 22 member's retirement allowance shall be reduced by fifty cents
 14 23 for each dollar the member earns over the limit provided in
 14 24 this subsection.  However, employment is not full-time
 14 25 employment until the member receives remuneration in an amount
 14 26 in excess of fourteen thirty thousand dollars for a calendar
 14 27 year, or an amount equal to the amount of remuneration
 14 28 permitted for a calendar year for persons under sixty-five
 14 29 years of age before a reduction in federal social security
 14 30 retirement benefits is required, whichever is higher.
 14 31 Effective the first of the month in which a member attains the
 14 32 age of sixty-five years, a retired member may receive a
 14 33 retirement allowance without a reduction after return to
 14 34 covered employment regardless of the amount of remuneration
 14 35 received.
 15  1    Sec. 20.  Section 97B.49B, subsection 1, paragraph e,
 15  2 subparagraph (1), Code 2001, is amended to read as follows:
 15  3    (1)  A conservation peace officer employed under section
 15  4 456A.13 or as designated by a county conservation board
 15  5 pursuant to section 350.5.
 15  6    Sec. 21.  Section 97B.49B, Code 2001, is amended by adding
 15  7 the following new subsection:
 15  8    NEW SUBSECTION.  4.  Notwithstanding any provision of this
 15  9 chapter to the contrary, the three-year average covered wage
 15 10 for a member retiring under this section whose years of
 15 11 eligible service equals or exceeds twenty-two years of
 15 12 eligible service for that member shall be determined by
 15 13 calculating the member's eligible combined wage for each year
 15 14 of eligible service.  For purposes of this subsection,
 15 15 "eligible combined wage" means the wages earned by the member
 15 16 for each quarter year period from eligible service and from
 15 17 covered employment that is not eligible service if at least
 15 18 seventy-five percent of the wages earned was from eligible
 15 19 service.
 15 20    Sec. 22.  Section 97B.49C, Code 2001, is amended by adding
 15 21 the following new subsection:
 15 22    NEW SUBSECTION.  4.  Notwithstanding any provision of this
 15 23 chapter to the contrary, the three-year average covered wage
 15 24 for a member retiring under this section whose years of
 15 25 eligible service equals or exceeds twenty-two years of
 15 26 eligible service for that member shall be determined by
 15 27 calculating the member's eligible combined wage for each
 15 28 quarter year of eligible service.  For purposes of this
 15 29 subsection, "eligible combined wage" means the wages earned by
 15 30 the member for each quarter year period from eligible service
 15 31 and from covered employment that is not eligible service if at
 15 32 least seventy-five percent of the wages earned was from
 15 33 eligible service.
 15 34    Sec. 23.  Section 97B.49F, subsection 2, paragraph a, Code
 15 35 2001, is amended to read as follows:
 16  1    a.  Commencing January 1, 1999, all members who retired on
 16  2 or after July 1, 1990, and qualified recipients who have been
 16  3 retired received a monthly allowance for at least one year as
 16  4 of the date the dividend is payable, or a beneficiary or
 16  5 contingent annuitant of such a member who receives a monthly
 16  6 benefit, shall be eligible to receive a favorable experience
 16  7 dividend, payable on the last business day in January of each
 16  8 year pursuant to the requirements of this subsection.  If the
 16  9 member, beneficiary, or contingent annuitant qualified
 16 10 recipient eligible to receive a favorable experience dividend
 16 11 dies before January 1 of a year, a favorable experience
 16 12 dividend shall not be payable in January of that year in the
 16 13 name of the member, beneficiary, or contingent annuitant
 16 14 qualified recipient.  However, if the member, beneficiary, or
 16 15 contingent annuitant qualified recipient dies on or after
 16 16 January 1 but before the dividend is paid in that month, the
 16 17 full amount of the dividend payable in that month shall be
 16 18 paid in the name of the applicable member, beneficiary, or
 16 19 contingent annuitant qualified recipient, upon notification of
 16 20 death.  For purposes of this paragraph, "qualified recipient"
 16 21 includes all members who retired on or after July 1, 1990, or
 16 22 a beneficiary or contingent annuitant of such a member who
 16 23 receives a monthly benefit, and a beneficiary of an active
 16 24 member who elects a monthly allowance under section 97B.52,
 16 25 subsection 1, paragraph "c".
 16 26    Sec. 24.  Section 97B.50A, subsection 2, paragraph d, Code
 16 27 2001, is amended to read as follows:
 16 28    d.  Upon retirement for an in-service disability as
 16 29 provided by this subsection, a member shall have the option to
 16 30 receive the greater of a monthly in-service disability
 16 31 retirement allowance calculated under this subsection or a
 16 32 monthly retirement allowance as provided in section 97B.49A,
 16 33 97B.49B, 97B.49C, 97B.49D, or 97B.49G, as applicable, that the
 16 34 member would receive if the member had attained fifty-five
 16 35 years of age.  The monthly in-service disability allowance
 17  1 calculated under this subsection shall consist of an allowance
 17  2 equal to one-twelfth of sixty percent of the member's three-
 17  3 year average covered wage or its actuarial equivalent as
 17  4 provided under section 97B.51.
 17  5    Sec. 25.  Section 97B.51, subsection 1, unnumbered
 17  6 paragraph 1, Code 2001, is amended to read as follows:
 17  7    Each member has the right prior to the member's retirement
 17  8 date to elect to have the member's retirement allowance
 17  9 payable under one of the options set forth in this section.
 17 10 The amount of the optional retirement allowance selected in
 17 11 paragraph "a", "c", "d", or "e", or "f" shall be the actuarial
 17 12 equivalent of the amount of the retirement allowance otherwise
 17 13 payable to the member as determined by the system in
 17 14 consultation with the system's actuary.  The member shall make
 17 15 an election by written request to the department and the
 17 16 election is subject to the approval of the department.  If the
 17 17 member is married, election of an option under this section
 17 18 requires the written acknowledgment of the member's spouse.
 17 19 However, the system may accept a married member's election of
 17 20 a benefit option under this section without the written
 17 21 acknowledgement of the member's spouse if the member submits a
 17 22 notarized statement indicating that the member has been unable
 17 23 to locate the member's spouse to obtain the written
 17 24 acknowledgement of the spouse after reasonable diligent
 17 25 efforts.  The member's election of a benefit option shall
 17 26 become effective upon filing the necessary forms, including
 17 27 the notarized statement, with the division.  The division
 17 28 shall not be liable to the member, the member's spouse, or to
 17 29 any other person affected by the member's election of a
 17 30 benefit option, based upon an election of benefit option
 17 31 accomplished without the written acknowledgement of the
 17 32 member's spouse.  The member may, if eligible, select one of
 17 33 the following options:
 17 34    Sec. 26.  Section 97B.51, subsection 1, paragraph a, Code
 17 35 2001, is amended to read as follows:
 18  1    a.  At retirement, a member may designate that upon the
 18  2 member's death, a specified amount of money shall be paid to a
 18  3 named beneficiary, and the member's monthly retirement
 18  4 allowance shall be reduced by an actuarially determined amount
 18  5 to provide for the lump sum payment.  The amount designated by
 18  6 the member must be in thousand dollar increments and shall be
 18  7 limited to the amount of the member's accumulated
 18  8 contributions.  The amount designated shall not lower the
 18  9 monthly retirement allowance of the member by more than one-
 18 10 half the amount payable as provided in paragraph "b".  A
 18 11 member may designate a different beneficiary at any time,
 18 12 except as limited by an order that has been accepted by the
 18 13 department as complying with the requirements of section
 18 14 97B.39.  The election of a death benefit amount under this
 18 15 paragraph shall be irrevocable upon payment of the first
 18 16 monthly retirement allowance.
 18 17    Sec. 27.  Section 97B.51, subsection 1, Code 2001, is
 18 18 amended by adding the following new paragraph:
 18 19    NEW PARAGRAPH.  f.  A member retiring under section 97B.49B
 18 20 or 97B.49C may select an allowance upon retirement as provided
 18 21 under paragraph "a", "b", "c", or "e", or paragraph "d",
 18 22 subparagraph (1), and may elect to have the monthly allowance
 18 23 otherwise payable to the member pursuant to the selected
 18 24 paragraph or subparagraph recalculated as provided in this
 18 25 paragraph.  A member electing payment of a monthly allowance
 18 26 under this paragraph shall have the member's monthly allowance
 18 27 increased, as determined by the system's actuary, by an amount
 18 28 equal to the monthly federal social security benefit that
 18 29 would be payable to the member on the date the member would be
 18 30 first eligible to receive a reduced social security pension
 18 31 benefit based upon the member's account.  Upon reaching the
 18 32 date the member would be first eligible to receive a reduced
 18 33 social security pension benefit, the member's monthly
 18 34 retirement allowance shall be permanently reduced, as
 18 35 determined by the system's actuary.  A member electing payment
 19  1 of an allowance under this paragraph shall provide the system
 19  2 with a copy of the estimate provided by the federal social
 19  3 security administration of the member's monthly federal social
 19  4 security benefit that would be payable on the date the member
 19  5 would be first eligible to receive a reduced social security
 19  6 pension benefit at least sixty days prior to the member's
 19  7 first month of entitlement.
 19  8    Sec. 28.  Section 97B.52, subsection 4, paragraph b, Code
 19  9 2001, is amended to read as follows:
 19 10    b.  If a death benefit is due and payable on behalf of a
 19 11 member who dies prior to the member's first month of
 19 12 entitlement, interest shall continue to accumulate through the
 19 13 quarter preceding the quarter in which payment is made to the
 19 14 designated beneficiary, heirs at law, or the estate unless the
 19 15 payment of the death benefit is delayed because of a dispute
 19 16 between alleged heirs, in which case the benefit due and
 19 17 payable shall be placed in a noninterest bearing escrow
 19 18 account until the beneficiary is determined in accordance with
 19 19 this section.
 19 20    Sec. 29.  Section 97B.53, subsection 4, Code 2001, is
 19 21 amended to read as follows:
 19 22    4.  A member has not terminated employment for purposes of
 19 23 this section if the member accepts other covered employment
 19 24 within four months thirty days after receiving the last
 19 25 payment of wages for covered employment, or if the member
 19 26 begins covered employment prior to filing a request for a
 19 27 refund with the department division.
 19 28    Sec. 30.  Section 97B.53B, Code 2001, is amended to read as
 19 29 follows:
 19 30    97B.53B  ROLLOVERS OF MEMBERS' ACCOUNTS.
 19 31    1.  As used in this section, unless the context otherwise
 19 32 requires, and to the extent permitted by the internal revenue
 19 33 service:
 19 34    a.  "Direct rollover" means a payment by the system to the
 19 35 eligible retirement plan specified by the member or the
 20  1 member's surviving spouse.
 20  2    b.  "Eligible retirement plan" means either of the
 20  3 following that accepts an eligible rollover distribution from
 20  4 a member or a member's surviving spouse:
 20  5    (1)  An individual retirement account in accordance with
 20  6 section 408(a) of the federal Internal Revenue Code.
 20  7    (2)  An individual retirement annuity in accordance with
 20  8 section 408(b) of the federal Internal Revenue Code.
 20  9    In addition, an "eligible retirement plan" includes an
 20 10 annuity plan in accordance with section 403(a) of the federal
 20 11 Internal Revenue Code, or a qualified trust in accordance with
 20 12 section 401(a) of the federal Internal Revenue Code, that
 20 13 accepts an eligible rollover distribution from a member.
 20 14 Effective January 1, 2002, the term "eligible retirement plan"
 20 15 also includes an annuity contract described in section 403(b)
 20 16 of the federal Internal Revenue Code, and an eligible plan
 20 17 under 457(b) of the federal Internal Revenue Code which is
 20 18 maintained by a state, political subdivision of a state, or
 20 19 any agency or instrumentality of a state or political
 20 20 subdivision of a state that chooses to separately account for
 20 21 amounts transferred into such eligible retirement plan from
 20 22 the system.
 20 23    c.  (1)  "Eligible rollover distribution" means all
 20 24 includes any of the following:
 20 25    (a)  All or any portion of a member's account and
 20 26 supplemental account, except that an.
 20 27    (b)  Effective January 1, 2002, after-tax employee
 20 28 contributions, if the plan to which such amounts are to be
 20 29 transferred is an individual retirement account described in
 20 30 federal Internal Revenue Code section 408(a) or 408(b), or is
 20 31 a qualified defined contribution plan described in federal
 20 32 Internal Revenue Code section 401(a) or 403(a), and such plan
 20 33 agrees to separately account for the after-tax amount so
 20 34 transferred.
 20 35    (c)  A distribution made on behalf of a surviving spouse
 21  1 and to an alternate payee, who is a spouse or former spouse,
 21  2 under a qualified domestic relations order.
 21  3    (2)  An eligible rollover distribution does not include any
 21  4 of the following:
 21  5    (1) (a)  A distribution that is one of a series of
 21  6 substantially equal periodic payments, which occur annually or
 21  7 more frequently, made for the life or life expectancy of the
 21  8 distributee or the joint lives or joint life expectancies of
 21  9 the distributee and the distributee's designated beneficiary,
 21 10 or made for a specified period of ten years or more.
 21 11    (2) (b)  A distribution to the extent that the distribution
 21 12 is required pursuant to section 401(a)(9) of the federal
 21 13 Internal Revenue Code.
 21 14    (3) (c)  The portion of any distribution that is not
 21 15 includible in the gross income of the distributee, determined
 21 16 without regard to the exclusion for net unrealized
 21 17 appreciation with respect to employer securities.
 21 18    (4)  Annual distributions of less than two hundred dollars
 21 19 of taxable income.
 21 20    2.  Effective January 1, 1993, a member or a member's
 21 21 surviving spouse may elect, at the time and in the manner
 21 22 prescribed in rules adopted by the department, to have the
 21 23 department pay all or a portion of an eligible rollover
 21 24 distribution directly to an eligible retirement plan,
 21 25 specified by the member or the member's surviving spouse, in a
 21 26 direct rollover.  If a member or a member's surviving spouse
 21 27 elects a partial direct rollover, the amount of funds elected
 21 28 for the partial direct rollover must equal or exceed five
 21 29 hundred dollars.
 21 30    Sec. 31.  Section 97B.80A, subsections 1 and 3, Code 2001,
 21 31 are amended to read as follows:
 21 32    1.  A vested or retired member who has five or more full
 21 33 calendar years of covered wages and who at any time was
 21 34 employed by a covered employer under this chapter but at the
 21 35 time of the employment was not covered by this chapter and did
 22  1 not opt out of coverage under this chapter in eligible public
 22  2 employment, upon submitting verification of the eligible
 22  3 public employment and the dates of the eligible public
 22  4 employment, may make contributions to the system for up to the
 22  5 lesser of twenty quarters of service credit for such eligible
 22  6 public employment or the entire period of the eligible public
 22  7 employment, in increments of one or more calendar quarters,
 22  8 and receive credit for membership service and prior service
 22  9 for the period of time for which the contributions are made.
 22 10    3.  The verification of the eligible public employment and
 22 11 the dates of such eligible public employment shall be made by
 22 12 the department prior to receiving contributions from the
 22 13 member.
 22 14    Sec. 32.  Section 97B.80A, Code 2001, is amended by adding
 22 15 the following new subsection:
 22 16    NEW SUBSECTION.  7.  For purposes of this section,
 22 17 "eligible public employment" means employment of a person who
 22 18 at the time of the employment was not covered by this chapter
 22 19 and the employment meets any of the following conditions:
 22 20    a.  Employment by a covered employer under this chapter of
 22 21 a person who did not opt out of coverage under this chapter.
 22 22    b.  Employment of a person as an adjunct instructor as
 22 23 defined in section 97B.1A, subsection 8.
 22 24    Sec. 33.  NEW SECTION.  97B.80C  PURCHASES OF PERMISSIVE
 22 25 SERVICE CREDIT.
 22 26    1.  DEFINITIONS.  For purposes of this section:
 22 27    a.  "Nonqualified service" means service that is not
 22 28 qualified service.
 22 29    b.  "Permissive service credit" means credit that will be
 22 30 recognized by the system for purposes of calculating a
 22 31 member's benefit, for which the member did not previously
 22 32 receive service credit in the system, and for which the member
 22 33 voluntarily contributes to the system the amount required by
 22 34 the system, not in excess of the amount necessary to fund the
 22 35 benefit attributable to such service.
 23  1    c.  (1)  "Qualified service" means any of the following:
 23  2    (a)  Service with the United States government or any state
 23  3 or local government, including any agency or instrumentality
 23  4 thereof, regardless of whether that government, agency, or
 23  5 instrumentality was a covered employer at the time of the
 23  6 service.
 23  7    (b)  Service with an association representing employees of
 23  8 the United States government or any state or local government,
 23  9 including any agency or instrumentality thereof, regardless of
 23 10 whether that government, agency, or instrumentality was a
 23 11 covered employer at the time of the service.
 23 12    (c)  Service with an educational organization which
 23 13 normally maintains a regular faculty and curriculum, normally
 23 14 has a regularly enrolled body of pupils or students in
 23 15 attendance at the place where its educational activities are
 23 16 regularly carried on, and is a public, private, or sectarian
 23 17 school which provides elementary education or secondary
 23 18 education through grade twelve.
 23 19    (d)  Military service other than military service required
 23 20 to be recognized under Internal Revenue Code section 414(u) or
 23 21 under the federal Uniformed Services Employment and
 23 22 Reemployment Rights Act.
 23 23    (2)  "Qualified service" does not include service as
 23 24 described in subparagraph (1) if the receipt of credit for
 23 25 such service would result in the member receiving a retirement
 23 26 benefit under more than one retirement plan for the same
 23 27 period of service.
 23 28    2.  a.  A vested or retired member may make contributions
 23 29 to the system to purchase up to the maximum amount of
 23 30 permissive service credit for qualified service as determined
 23 31 by the division, pursuant to Internal Revenue Code section
 23 32 415(n) and the requirements of this section.
 23 33    b.  A vested or retired member of the system who has five
 23 34 or more full calendar years of covered wages may make
 23 35 contributions to the system to purchase up to five years of
 24  1 permissive service credit for nonqualified service as
 24  2 determined by the division, pursuant to Internal Revenue Code
 24  3 section 415(n) and the requirements of this section.
 24  4    3.  A member making contributions for a purchase of
 24  5 permissive service credit under this section shall make
 24  6 contributions in an amount equal to the actuarial cost of the
 24  7 permissive service credit purchase.  For purposes of this
 24  8 subsection, the actuarial cost of the service purchase is an
 24  9 amount determined by the division in accordance with actuarial
 24 10 tables, as reported to the division by the system's actuary,
 24 11 which reflects the actuarial cost necessary to fund an
 24 12 increased retirement allowance resulting from the purchase of
 24 13 permissive service credit.
 24 14    4.  The division shall ensure that the member, in
 24 15 exercising an option provided in this section, does not exceed
 24 16 the amount of annual additions to a member's account permitted
 24 17 pursuant to section 415 of the federal Internal Revenue Code.
 24 18    Sec. 34.  Section 97B.82, Code 2001, is amended by striking
 24 19 the section and inserting in lieu thereof the following:
 24 20    97B.82  PURCHASE OF SERVICE CREDIT – DIRECT ROLLOVERS –
 24 21 DIRECT TRANSFERS.
 24 22    1.  Effective July 1, 2002, a member may, to the extent
 24 23 permitted by the internal revenue service, purchase any
 24 24 service credit permitted under this chapter by means of a
 24 25 direct rollover or a direct transfer as provided in this
 24 26 section pursuant to rules adopted by the division and
 24 27 consistent with applicable requirements of the federal
 24 28 Internal Revenue Code.  Purchases of service credit by means
 24 29 of a direct rollover or direct transfer under this section
 24 30 shall not exceed the amounts permitted under section 415(n) of
 24 31 the federal Internal Revenue Code and section 97B.80C as
 24 32 determined by the division.
 24 33    2.  a.  A member may purchase service credit as authorized
 24 34 by this section through a direct rollover to the system of an
 24 35 eligible rollover distribution from an eligible retirement
 25  1 plan as permitted by the internal revenue service under the
 25  2 federal Internal Revenue Code.  The amount of the direct
 25  3 rollover into the system cannot exceed the cost of the service
 25  4 purchase by a member under this chapter.  Once a direct
 25  5 rollover is made, the member must forfeit the applicable
 25  6 service credit from the eligible retirement plan from which
 25  7 the eligible rollover distribution is received.
 25  8    b.  (1)  For purposes of this subsection, "an eligible
 25  9 rollover distribution from an eligible retirement plan"
 25 10 includes distributions from any of the following:
 25 11    (a)  Qualified plans described in federal Internal Revenue
 25 12 Code sections 401(a) and 403(a).
 25 13    (b)  Annuity contracts described in federal Internal
 25 14 Revenue Code section 403(b).
 25 15    (c)  Eligible plans described under federal Internal
 25 16 Revenue Code section 457(b) which are maintained by a state,
 25 17 political subdivision of a state, or any agency or
 25 18 instrumentality of a state or political subdivision of a
 25 19 state.
 25 20    (d)  Individual retirement accounts described in federal
 25 21 Internal Revenue Code section 408(a) or 408(b).
 25 22    (2)  An eligible rollover distribution from an eligible
 25 23 retirement plan does not include any of the following:
 25 24    (a)  A distribution that is one of a series of
 25 25 substantially equal periodic payments, which occur annually or
 25 26 more frequently, made for the life or life expectancy of the
 25 27 distributee or the joint lives or joint life expectancies of
 25 28 the distributee and the distributee's designated beneficiary,
 25 29 or made for a specified period of ten years or more.
 25 30    (b)  A distribution to the extent that the distribution is
 25 31 required pursuant to section 401(a)(9) of the federal Internal
 25 32 Revenue Code.
 25 33    (c)  The portion of any distribution that is not includible
 25 34 in the gross income of the distributee, determined without
 25 35 regard to the exclusion for net unrealized appreciation with
 26  1 respect to employer securities.
 26  2    (d)  Any amounts that are not permitted to be treated as
 26  3 eligible rollover distributions by the internal revenue
 26  4 service under the federal Internal Revenue Code.
 26  5    3.  A member may purchase any service credit as authorized
 26  6 by this section, to the extent permitted by the internal
 26  7 revenue service, by means of a direct transfer, excluding any
 26  8 after-tax contributions, from an annuity contract qualified
 26  9 under federal Internal Revenue Code section 403(b), or an
 26 10 eligible plan described in federal Internal Revenue Code
 26 11 section 457(b), maintained by a state, political subdivision
 26 12 of a state, or any agency or instrumentality of a state or
 26 13 political subdivision of a state.  A direct transfer is a
 26 14 trustee-to-trustee transfer to the system of contributions
 26 15 made to annuity contracts qualified under federal Internal
 26 16 Revenue Code section 403(b) and eligible governmental plans
 26 17 qualified under federal Internal Revenue Code section 457(b)
 26 18 for purposes of purchasing service credit in the system.
 26 19    Sec. 35.  NEW SECTION.  97C.21  VOLUNTARY COVERAGE OF
 26 20 ELECTED OFFICIALS.
 26 21    Notwithstanding any provision of this chapter to the
 26 22 contrary, an employer of elected officials otherwise excluded
 26 23 from the definition of employee as provided in section 97C.2,
 26 24 may, but is not required to, choose to provide benefits to
 26 25 those elected officials as employees as provided by this
 26 26 chapter.  This choice shall be reflected in the federal-state
 26 27 agreement described in section 97C.3.  An employer who is
 26 28 providing benefits to elected officials otherwise excluded
 26 29 from the definition of employee prior to July 1, 2002, shall
 26 30 not be deemed to be in an erroneous reporting situation, and
 26 31 corrections for prior federal social security withholdings
 26 32 shall not be required.  The implementation of this section
 26 33 shall be subject to the approval of the federal social
 26 34 security administration.
 26 35    Sec. 36.  IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM –
 27  1 TEMPORARY LAYOFFS – AVERAGE COVERED WAGE RECALCULATION.
 27  2    1.  Notwithstanding any provision of chapter 97B to the
 27  3 contrary, a member of the Iowa public employees' retirement
 27  4 system who has an employer-mandated reduction in hours but
 27  5 remains on the employer's payroll, and who would receive a
 27  6 reduction in the member's three-year average covered wage as a
 27  7 result of the reduction in hours, may have the member's
 27  8 retirement allowance calculated based on the three-year
 27  9 average covered wage the member would have received, based on
 27 10 reasonable assumptions, if the member had not been subject to
 27 11 the employer-mandated reduction in hours, upon payment by the
 27 12 member of the applicable contribution amount.  For purposes of
 27 13 this section, the applicable contribution amount is an amount
 27 14 equal to the employee and employer contributions that would
 27 15 have been paid to the system based on the wages that the
 27 16 member would have received but for the employer-mandated
 27 17 reduction in hours and would have been included in the
 27 18 member's three-year average covered wage.
 27 19    2.  The payment of the applicable contribution amount under
 27 20 this section shall be treated as pick-up contributions in
 27 21 addition to amounts picked up under section 97B.11A.  The
 27 22 member must notify the Iowa public employees' retirement
 27 23 system and the member's employer prior to the member
 27 24 terminating employment covered under the system so that the
 27 25 appropriate calculations can be made and the applicable
 27 26 contribution amount for the member can be deducted from the
 27 27 member's wages.  The Iowa public employees' retirement system
 27 28 shall have no liability for a member's failure to notify the
 27 29 system and the member's employer in time to make such
 27 30 calculations and deduct the applicable contribution amount
 27 31 from the member's remaining wage payments.
 27 32    3.  This section shall apply to employer-mandated
 27 33 reductions in hours during the period of time beginning on or
 27 34 after January 1, 2002, and ending no later than June 30, 2003.
 27 35 The system is authorized to adopt such rules, including
 28  1 emergency rules, as it deems necessary or prudent to implement
 28  2 this section.
 28  3    Sec. 37.  RETROACTIVE APPLICABILITY.  Section 97B.52,
 28  4 subsection 2, Code 2001, establishing a line of duty death
 28  5 benefit for a member in special service, is retroactively
 28  6 applicable to January 1, 1992, and is applicable to covered
 28  7 deaths occurring on and after that date.
 28  8    Sec. 38.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.
 28  9    1.  The section of this Act amending section 97B.1A,
 28 10 subsection 8, paragraph "b", subparagraph (2), being deemed of
 28 11 immediate importance, takes effect upon enactment and is
 28 12 retroactively applicable to January 1, 1995, and is applicable
 28 13 on and after that date.
 28 14    2.  The section of this Act amending section 97B.53B, being
 28 15 deemed of immediate importance, takes effect upon enactment
 28 16 and is retroactively applicable to January 1, 2002, and is
 28 17 applicable on and after that date.
 28 18    Sec. 39.  IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – STUDY
 28 19 ON DEFERRED RETIREMENT OPTION PROGRAM – REPORT.  The Iowa
 28 20 public employees' retirement system (IPERS) shall conduct a
 28 21 study to consider how to implement a deferred retirement
 28 22 option program (DROP) which is cost-neutral to the system,
 28 23 pursuant to its findings as a consequence of the pension
 28 24 portability study mandated by the 2000 Session of the General
 28 25 Assembly.  In pursuing this proposal, IPERS shall conduct a
 28 26 statistically valid, professional survey of its members who
 28 27 would be eligible to participate in a DROP plan, if offered,
 28 28 in order to determine the level of their interest and the
 28 29 conditions under which they would, or would not, participate.
 28 30 In addition, the system actuary shall perform a long-range
 28 31 estimate of system assets and liabilities, factoring in
 28 32 estimated changes in its membership demographics.  On or
 28 33 before October 1, 2003, the IPERS shall file a report with the
 28 34 legislative service bureau, for distribution to the public
 28 35 retirement systems committee established in section 97D.4,
 29  1 which contains its findings and recommendations.  The report
 29  2 shall also contain any applicable actuarial information
 29  3 concerning the costs of any proposal or proposals.
 29  4    Sec. 40.  IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – STUDY
 29  5 ON A NEW OPTION FOR TERMINATED VESTED MEMBERS – REPORT.  The
 29  6 Iowa public employees' retirement system (IPERS) shall conduct
 29  7 a study to consider how to implement a new option for
 29  8 terminating, vested employees in which their employer and
 29  9 employee contributions, in accord with the existing IPERS'
 29 10 refund formula, would be "rolled over" into an individual
 29 11 account which would then mirror the experience of the IPERS'
 29 12 trust fund, minus reasonable administrative expenses.  The
 29 13 proposal to be studied is in accord with recommendations of
 29 14 the pension portability study mandated by the 2000 Session of
 29 15 the General Assembly.  In pursuing this proposal, IPERS shall
 29 16 work closely with the system actuary in order to develop a
 29 17 proposal which is cost-neutral to the retirement system.  On
 29 18 or before October 1, 2003, the IPERS shall file a report with
 29 19 the legislative service bureau, for distribution to the public
 29 20 retirement systems committee established in section 97D.4,
 29 21 which contains its findings and recommendations.  The report
 29 22 shall also contain any applicable actuarial information
 29 23 concerning the costs of any proposal or proposals.  
 29 24                          DIVISION III
 29 25           STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 29 26    Sec. 41.  Section 411.1, Code Supplement 2001, is amended
 29 27 by adding the following new subsection:
 29 28    NEW SUBSECTION.  11A.  "Member in good standing" means a
 29 29 member in service who is not subject to removal by the
 29 30 employing city of the member pursuant to section 400.18 or
 29 31 400.19, or other comparable process, and who is not the
 29 32 subject of an investigation that could lead to such removal.
 29 33    Sec. 42.  Section 411.6, subsection 3, Code 2001, is
 29 34 amended to read as follows:
 29 35    3.  ORDINARY DISABILITY RETIREMENT BENEFIT.  Upon
 30  1 application to the system, of a member in service good
 30  2 standing or of the chief of the police or fire departments,
 30  3 respectively, any member in good standing shall be retired by
 30  4 the system, not less than thirty and not more than ninety days
 30  5 next following the date of filing the application, on an
 30  6 ordinary disability retirement allowance, if the medical board
 30  7 after a medical examination of the member certifies that the
 30  8 member is mentally or physically incapacitated for further
 30  9 performance of duty, that the incapacity is likely to be
 30 10 permanent, and that the member should be retired.  However, if
 30 11 a person's membership in the system first commenced on or
 30 12 after July 1, 1992, the member shall not be eligible for
 30 13 benefits with respect to a disability which would not exist,
 30 14 but for a medical condition that was known to exist on the
 30 15 date that membership commenced.  A member who is denied a
 30 16 benefit under this subsection, by reason of a finding by the
 30 17 medical board that the member is not mentally or physically
 30 18 incapacitated for the further performance of duty, shall be
 30 19 entitled to be restored to active service in the same position
 30 20 held immediately prior to the application for disability
 30 21 benefits.  The member-in-good-standing requirement of this
 30 22 subsection may be waived for good cause as determined by the
 30 23 board.  The burden of establishing good cause is on the
 30 24 member.
 30 25    Sec. 43.  Section 411.6, subsection 5, paragraph a, Code
 30 26 2001, is amended to read as follows:
 30 27    a.  Upon application to the system, of a member in service
 30 28 good standing or of the chief of the police or fire
 30 29 departments, respectively, any member in good standing who has
 30 30 become totally and permanently incapacitated for duty as the
 30 31 natural and proximate result of an injury or disease incurred
 30 32 in or aggravated by the actual performance of duty at some
 30 33 definite time and place, or while acting pursuant to order,
 30 34 outside of the city by which the member is regularly employed,
 30 35 shall be retired by the system, if the medical board certifies
 31  1 that the member is mentally or physically incapacitated for
 31  2 further performance of duty, that the incapacity is likely to
 31  3 be permanent, and that the member should be retired.  However,
 31  4 if a person's membership in the system first commenced on or
 31  5 after July 1, 1992, the member shall not be eligible for
 31  6 benefits with respect to a disability which would not exist,
 31  7 but for a medical condition that was known to exist on the
 31  8 date that membership commenced.  A member who is denied a
 31  9 benefit under this subsection, by reason of a finding by the
 31 10 medical board that the member is not mentally or physically
 31 11 incapacitated for the further performance of duty, shall be
 31 12 entitled to be restored to active service in the same position
 31 13 held immediately prior to the application for disability
 31 14 benefits.
 31 15    Sec. 44.  Section 411.6, subsection 5, Code 2001, is
 31 16 amended by adding the following new paragraph:
 31 17    NEW PARAGRAPH.  d.  The requirement that a member be in
 31 18 good standing to apply for and receive a benefit under this
 31 19 subsection may be waived for good cause as determined by the
 31 20 board.  The burden of establishing good cause is on the
 31 21 member.
 31 22    Sec. 45.  Section 411.6, subsection 7, paragraph b, Code
 31 23 2001, is amended to read as follows:
 31 24    b.  Should a disability beneficiary under age fifty-five be
 31 25 restored to active service at a compensation not less than the
 31 26 disability beneficiary's average final compensation, the
 31 27 disability beneficiary's retirement allowance shall cease, the
 31 28 disability beneficiary shall again become a member and shall
 31 29 contribute thereafter at the same rate paid prior to
 31 30 disability established in section 411.8, and former service on
 31 31 the basis of which the disability beneficiary's service was
 31 32 computed at the time of retirement shall be restored to full
 31 33 force and effect and upon subsequent retirement the disability
 31 34 beneficiary shall be credited with all service as a member and
 31 35 also with the period of disability retirement.
 32  1    Sec. 46.  Section 411.6, subsection 8, paragraph b, Code
 32  2 2001, is amended to read as follows:
 32  3    b.  In lieu of the payment specified in paragraph "a", a
 32  4 beneficiary meeting the qualifications of paragraph "c" may
 32  5 elect to receive a monthly pension equal to one-twelfth of
 32  6 forty percent of the average final compensation of the member,
 32  7 but not less than twenty percent of the average monthly
 32  8 earnable compensation paid to an active member holding the
 32  9 highest grade in the rank of fire fighter, for a beneficiary
 32 10 of a deceased member of a fire department, or the highest
 32 11 grade in the rank of police patrol officer, for a beneficiary
 32 12 of a deceased member of a police department, if the member was
 32 13 in service at the time of death of the system, as reported by
 32 14 the actuary.  For a member not in service at the time of
 32 15 death, the pension shall be reduced as provided in subsection
 32 16 1, paragraph "b".
 32 17    For a member not in service at the time of death, the
 32 18 pension shall be paid commencing when the member would have
 32 19 attained the age of fifty-five except that if there is a child
 32 20 of the member, the pension shall be paid commencing with the
 32 21 member's death until the child of the member no longer meets
 32 22 the definition of child as provided in section 411.1.  The
 32 23 pension shall resume when the member would have attained the
 32 24 age of fifty-five.
 32 25    For a member in service at the time of death, the pension
 32 26 shall be paid commencing with the member's death.  In addition
 32 27 to the pension, there shall also be paid for each child of a
 32 28 member, a monthly pension equal to six percent of the average
 32 29 monthly earnable compensation paid to an active member holding
 32 30 the highest grade in the rank of fire fighter, for a child of
 32 31 a deceased member of a fire department, or the highest grade
 32 32 in the rank of police patrol officer, for a child of a
 32 33 deceased member of a police department of the system, as
 32 34 reported by the actuary.
 32 35    Notwithstanding section 411.6, subsection 8, Code 1985,
 33  1 effective July 1, 1990, for a member's surviving spouse who,
 33  2 prior to July 1, 1986, elected to receive pension benefits
 33  3 under this paragraph, the monthly pension benefit shall be
 33  4 equal to the higher of one-twelfth of forty percent of the
 33  5 average final compensation of the member, or the amount the
 33  6 surviving spouse was receiving on July 1, 1990.
 33  7    Sec. 47.  Section 411.6, subsection 9, paragraph b, Code
 33  8 2001, is amended to read as follows:
 33  9    b.  (1)  An If the member's designated beneficiary is the
 33 10 member's spouse, child or parent, an accidental death benefit
 33 11 pension equal to one-half of the average final compensation of
 33 12 the member shall be paid as follows:
 33 13    (a)  If the member's designated beneficiary is the member's
 33 14 spouse, then to the member's spouse.
 33 15    (b)  If the member's designated beneficiary is the member's
 33 16 child or children, then to the child or children in equal
 33 17 shares.  The pension to each child shall terminate when the
 33 18 child no longer meets the definition of child in section
 33 19 411.1.
 33 20    (c)  If the member's designated beneficiary is the member's
 33 21 dependent father or mother, or both, then to the father or
 33 22 mother, or both, in equal shares, to continue until remarriage
 33 23 or death.
 33 24    (2)  If the member failed to designate a beneficiary, or if
 33 25 the beneficiary designated by the member predeceases the
 33 26 member, then an accidental death benefit pension equal to one-
 33 27 half of the average final compensation of the member shall be
 33 28 paid as follows:
 33 29    (1) (a)  To the member's spouse.
 33 30    (2) (b)  If there is no spouse, or if the spouse dies and
 33 31 there is a child of the member, then to the member's child or
 33 32 children in equal shares.  The pension to each child shall
 33 33 terminate when the child no longer meets the definition of
 33 34 child in section 411.1.
 33 35    (3) (c)  If there is no surviving spouse or child, then to
 34  1 the member's dependent father or mother, or both, as the
 34  2 system determines in equal shares, to continue until
 34  3 remarriage or death.
 34  4    Sec. 48.  Section 411.6, subsection 9, paragraph c, Code
 34  5 2001, is amended to read as follows:
 34  6    c.  In addition to the accidental death benefit pension
 34  7 provided in paragraph "b", there shall also be paid for each
 34  8 child of a member a monthly pension equal to six percent of
 34  9 the average monthly earnable compensation paid to an active
 34 10 member holding the highest grade in the rank of fire fighter,
 34 11 for a child of a deceased member of a fire department, or
 34 12 holding the highest grade in the rank of police patrol
 34 13 officer, for a child of a deceased member of a police
 34 14 department of the system, as reported by the actuary.
 34 15    Sec. 49.  Section 411.6, subsection 11, paragraph a, Code
 34 16 2001, is amended to read as follows:
 34 17    a.  To the spouse, equal to one-half the amount received by
 34 18 the deceased beneficiary, but in no instance less than twenty
 34 19 percent of the average monthly earnable compensation paid to
 34 20 an active member holding the highest grade in the rank of fire
 34 21 fighter, for a beneficiary of a deceased member of the fire
 34 22 department, or the highest grade in the rank of police patrol
 34 23 officer, for a beneficiary of a deceased member of a police
 34 24 department of the system, as determined by the actuary, and in
 34 25 addition a monthly pension equal to the monthly pension
 34 26 payable under subsection 9 of this section for each child; or
 34 27    Sec. 50.  Section 411.6, subsection 12, paragraph a, Code
 34 28 2001, is amended to read as follows:
 34 29    a.  On each July 1, the monthly pensions authorized in this
 34 30 section payable to retired members retired prior to that date
 34 31 and to beneficiaries entitled to a monthly pension prior to
 34 32 that date shall be adjusted as provided in this subsection.
 34 33 An amount equal to the sum of one and one-half percent of the
 34 34 monthly pension of each retired member and beneficiary and the
 34 35 applicable incremental amount shall be added to the monthly
 35  1 pension of each retired member and beneficiary.  The board of
 35  2 trustees shall may report to the general assembly every six
 35  3 years, by September 15 of that year, beginning with September
 35  4 15, 2001, at the board's discretion, on whether the provisions
 35  5 of this subsection continue to provide an equitable method for
 35  6 the annual readjustment of pensions payable under this
 35  7 chapter.
 35  8    Sec. 51.  Section 411.6, subsection 13, Code 2001, is
 35  9 amended to read as follows:
 35 10    13.  a.  REMARRIAGE OF SURVIVING SPOUSE.  Effective July 1,
 35 11 1990, for a member who died prior to July 1, 1988, if the
 35 12 member's surviving spouse remarried prior to July 1, 1988, the
 35 13 remarriage does not make the spouse ineligible under
 35 14 subsection 8, paragraph "c", subparagraphs (1) and (2), to
 35 15 receive benefits under subsections 8, 9, 11, and 12.
 35 16    b.  RECOMPUTATION OF BENEFIT – SURVIVING SPOUSE.  A
 35 17 benefit payable under this chapter to a surviving spouse and
 35 18 to any surviving spouse who receives a division of the
 35 19 surviving spouse benefit pursuant to a marriage decree or
 35 20 marital property order under section 411.13 shall not be
 35 21 recomputed upon the death of any surviving spouse.
 35 22    Sec. 52.  Section 411.31, subsection 2, Code 2001, is
 35 23 amended to read as follows:
 35 24    2.  Commencing July 1, 1996, a vested member of an eligible
 35 25 retirement system who terminates employment covered by one
 35 26 eligible retirement system and, within sixty days one year,
 35 27 commences employment covered by the other eligible retirement
 35 28 system may elect to transfer the average accrued benefit
 35 29 earned from the former system to the current system.  The
 35 30 member shall file an application with the current system for
 35 31 transfer of the average accrued benefit within ninety days of
 35 32 the commencement of employment with the current system.
 35 33    Sec. 53.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.  The
 35 34 section of this Act amending section 411.31, being deemed of
 35 35 immediate importance, takes effect upon enactment and is
 36  1 retroactively applicable to July 1, 1996.  
 36  2                           DIVISION IV
 36  3                   JUDICIAL RETIREMENT SYSTEM
 36  4    Sec. 54.  Section 602.9107, subsection 1, paragraph a, Code
 36  5 2001, is amended to read as follows:
 36  6    a.  The annual annuity of a judge under this system is an
 36  7 amount equal to three percent of the judge's average annual
 36  8 basic salary for the judge's last highest three years as a
 36  9 judge of one or more of the courts included in this article,
 36 10 multiplied by the judge's years of service as a judge of one
 36 11 or more of the courts for which contributions were made to the
 36 12 system.  However, an annual annuity shall not exceed an amount
 36 13 equal to a specified percentage of the highest basic annual
 36 14 salary which the judge is receiving at or had received as of
 36 15 the time the judge becomes became separated from service.
 36 16 Forfeitures shall not be used to increase the annuities a
 36 17 judge or survivor would otherwise receive under the system.
 36 18    Sec. 55.  NEW SECTION.  602.9107C  IOWA PUBLIC EMPLOYEES'
 36 19 RETIREMENT SYSTEM – SERVICE CREDIT.
 36 20    1.  A judge under this system who has at least six years of
 36 21 service as a judge of any of the courts included in this
 36 22 article and who was a member of the Iowa public employees'
 36 23 retirement system as provided in chapter 97B, but who was not
 36 24 retired under that system, upon submitting verification of
 36 25 membership and service in the Iowa public employees'
 36 26 retirement system to the court administrator, including proof
 36 27 that the judge has no further claim upon a retirement benefit
 36 28 from that public system, may make contributions as provided by
 36 29 this section to the system either for the entire period of
 36 30 service in the other public system, or for partial service in
 36 31 the other public system in increments of one or more calendar
 36 32 quarters, and receive credit for that service under the
 36 33 system.
 36 34    2.  The contributions required to be made for purposes of
 36 35 this section shall be in an amount equal to the actuarial cost
 37  1 of the service purchase.  For purposes of this subsection, the
 37  2 actuarial cost of the service purchase is an amount determined
 37  3 by the court administrator in accordance with actuarial
 37  4 tables, as reported to the court administrator by the system's
 37  5 actuary, which reflects the actuarial cost necessary to fund
 37  6 an increased retirement annuity resulting from the purchase of
 37  7 additional service.
 37  8    3.  A judge eligible for an increased retirement annuity
 37  9 because of the payment of contributions under this section is
 37 10 entitled to receipt of retroactive adjustment payments for no
 37 11 more than six months immediately preceding the month in which
 37 12 the judge pays contributions under this section.
 37 13    4.  The court administrator shall ensure that the judge, in
 37 14 exercising an option provided in this section, does not exceed
 37 15 the amount of annual additions to a judge's account permitted
 37 16 pursuant to section 415 of the Internal Revenue Code.  
 37 17    Sec. 56.  Section 602.9202, subsection 1, Code 2001, is
 37 18 amended to read as follows:
 37 19    1.  "Senior judge" means a supreme court judge, court of
 37 20 appeals judge, district court judge, or district associate
 37 21 judge, full-time associate juvenile judge, or full-time
 37 22 associate probate judge, who meets the requirements of section
 37 23 602.9203 and who has not been retired or removed from the
 37 24 roster of senior judges under section 602.9207 or 602.9208.
 37 25    Sec. 57.  Section 602.9203, subsection 1, Code 2001, is
 37 26 amended to read as follows:
 37 27    1.  A supreme court judge, court of appeals judge, district
 37 28 judge, or district associate judge, full-time associate
 37 29 juvenile judge, or full-time associate probate judge, who
 37 30 qualifies under subsection 2 may become a senior judge by
 37 31 filing with the clerk of the supreme court a written election
 37 32 in the form specified by the court administrator.  The
 37 33 election shall be filed within six months of the date of
 37 34 retirement.
 37 35    Sec. 58.  Section 602.9204, subsection 2, paragraph b, Code
 38  1 2001, is amended to read as follows:
 38  2    b.  "Basic senior judge salary" means the highest basic
 38  3 annual salary which the judge is receiving at or had received
 38  4 as of the time the judge becomes became separated from full-
 38  5 time service, as would be used in computing an annuity
 38  6 pursuant to section 602.9107 without service as a senior
 38  7 judge, plus seventy-five percent of the escalator.  
 38  8 
 38  9 
 38 10                                                             
 38 11                               BRENT SIEGRIST
 38 12                               Speaker of the House
 38 13 
 38 14 
 38 15                                                             
 38 16                               MARY E. KRAMER
 38 17                               President of the Senate
 38 18 
 38 19    I hereby certify that this bill originated in the House and
 38 20 is known as House File 2532, Seventy-ninth General Assembly.
 38 21 
 38 22 
 38 23                                                             
 38 24                               MARGARET THOMSON
 38 25                               Chief Clerk of the House
 38 26 Approved                , 2002
 38 27 
 38 28 
 38 29                            
 38 30 THOMAS J. VILSACK
 38 31 Governor
     
Text: HF02531                           Text: HF02533
Text: HF02500 - HF02599                 Text: HF Index
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