Text: HSB00669                          Text: HSB00671
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 670

Bill Text

PAG LIN
  1  1                           DIVISION I
  1  2            PUBLIC SAFETY PEACE OFFICERS' RETIREMENT,
  1  3                ACCIDENT, AND DISABILITY SYSTEM.
  1  4    Section 1.  Section 80.36, Code 2001, is amended to read as
  1  5 follows:
  1  6    80.36  MAXIMUM AGE.
  1  7    The maximum age for a A person to shall not be employed as
  1  8 a peace officer in the department of public safety is after
  1  9 attaining sixty-five years of age.
  1 10    Sec. 2.  Section 97A.6, subsection 6, paragraph c, Code
  1 11 2001, is amended to read as follows:
  1 12    c.  Upon retirement for accidental disability on or after
  1 13 July 1, 1998, a member shall receive an accidental disability
  1 14 retirement allowance which shall consist of a pension in an
  1 15 amount equal to the greater of sixty percent of the member's
  1 16 average final compensation or the retirement allowance that
  1 17 the member would receive under subsection 2 if the member has
  1 18 had attained fifty-five years of age.
  1 19    Sec. 3.  NEW SECTION.  97A.14A  LIABILITY OF THIRD PARTIES
  1 20 – SUBROGATION.
  1 21    1.  If, on or after July 1, 2002, a member receives an
  1 22 injury or dies for which benefits are payable under section
  1 23 97A.6, subsection 3, 5, 8, or 9, or section 97A.14, and if the
  1 24 injury or death is caused under circumstances creating a legal
  1 25 liability for damages against a third party other than the
  1 26 system, the system, the member, or the member's dependent or
  1 27 the trustee of the dependent, may maintain an action for
  1 28 damages against the third party as provided by this section.
  1 29 If a member, the member's dependent, or the trustee of the
  1 30 dependent commences such an action, the plaintiff member,
  1 31 dependent, or trustee shall serve a copy of the original
  1 32 notice upon the system not less than ten days before the trial
  1 33 of the action, but a failure to serve the notice does not
  1 34 prejudice the rights of the system, and the following rights
  1 35 and duties ensue:
  2  1    a.  The system shall be indemnified out of the recovery of
  2  2 damages to the extent of benefit payments made by the system,
  2  3 with legal interest, except that the attorney fees and
  2  4 expenses of the plaintiff member, dependent, or trustee may be
  2  5 first allowed by the district court.
  2  6    b.  The system has a lien on the damage claim against the
  2  7 third party and on any judgment on the damage claim for
  2  8 benefits for which the system is liable.  In order to continue
  2  9 and preserve the lien, the system shall file a notice of the
  2 10 lien within thirty days after receiving a copy of the original
  2 11 notice in the office of the clerk of the district court in
  2 12 which the action is filed.
  2 13    2.  If a member, the member's dependent, or the trustee of
  2 14 the dependent fails to bring an action for damages against a
  2 15 third party within ninety days after the system requests the
  2 16 member, the member's dependent, or the trustee of the
  2 17 dependent in writing to do so, then the system is subrogated
  2 18 to the rights of the member and may maintain the action
  2 19 against the third party, and may recover damages for the
  2 20 injury or death to the same extent that the member, the
  2 21 member's dependent, or the trustee of the dependent may
  2 22 recover damages for the injury or death.  If the system
  2 23 recovers damages in the action, the court shall enter judgment
  2 24 for distribution of the recovery as follows:
  2 25    a.  A sum sufficient to repay the system for the amount of
  2 26 such benefits actually paid by the system up to the time of
  2 27 the entering of the judgment.
  2 28    b.  A sum sufficient to pay the system the present worth,
  2 29 computed at the interest rate provided in section 535.3 for
  2 30 court judgments and decrees, of the future payments of such
  2 31 benefits for which the system is liable until the member
  2 32 attains the age of fifty-five, but the sum is not a final
  2 33 adjudication of the future payment which the member is
  2 34 entitled to receive.
  2 35    c.  Any balance of the recovery remaining after
  3  1 distribution of the recovery pursuant to paragraphs "a" and
  3  2 "b" shall be paid to the member or the member's beneficiary.
  3  3    3.  Before a settlement is effective between the system and
  3  4 a third party who is liable for any injury, the member, the
  3  5 member's dependent, or the trustee of the dependent must
  3  6 consent in writing to the settlement; and if the settlement is
  3  7 between the member, the member's dependent, or the trustee of
  3  8 the dependent and a third party, the system must consent in
  3  9 writing to the settlement; or on refusal to consent, in either
  3 10 case, the workers' compensation commissioner must consent in
  3 11 writing to the settlement.
  3 12    4.  For purposes of subrogation under this section, a
  3 13 payment made to an injured member, the member's guardian, or
  3 14 the member's legal representative, by or on behalf of a third
  3 15 party or the third party's principal or agent, who is liable
  3 16 for, connected with, or involved in causing the injury or
  3 17 death to the member, shall be considered paid as damages
  3 18 because the injury or death was caused under circumstances
  3 19 creating a legal liability against the third party, whether
  3 20 the payment is made under a covenant not to sue, compromise
  3 21 settlement, denial of liability, or is otherwise made.
  3 22    Sec. 4.  Section 97A.17, subsection 2, Code 2001, is
  3 23 amended to read as follows:
  3 24    2.  Commencing July 1, 1996, a vested member of an eligible
  3 25 retirement system who terminates employment covered by one
  3 26 eligible retirement system and, within sixty days one year,
  3 27 commences employment covered by the other eligible retirement
  3 28 system may elect to transfer the average accrued benefit
  3 29 earned from the former system to the current system.  The
  3 30 member shall file an application with the current system for
  3 31 transfer of the average accrued benefit within ninety days of
  3 32 the commencement of employment with the current system.
  3 33    Sec. 5.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.
  3 34    1.  The section of this Act amending section 97A.6,
  3 35 subsection 6, being deemed of immediate importance, takes
  4  1 effect upon enactment and is retroactively applicable to July
  4  2 1, 1998.
  4  3    2.  The section of this Act amending section 97A.17, being
  4  4 deemed of immediate importance, takes effect upon enactment
  4  5 and is retroactively applicable to July 1, 1996.  
  4  6                           DIVISION II
  4  7        IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
  4  8    Sec. 6.  Section 97B.1A, subsection 8, paragraph a,
  4  9 subparagraph (1), Code Supplement 2001, is amended to read as
  4 10 follows:
  4 11    (1)  Elective officials in positions for which the
  4 12 compensation is on a fee basis, elective officials of school
  4 13 districts, elective officials of townships, and elective
  4 14 officials of other political subdivisions who are in part-time
  4 15 positions.  An elective official covered under this chapter
  4 16 section may terminate membership under this chapter by
  4 17 informing the department in writing of the expiration of the
  4 18 member's term of office or by informing the department of the
  4 19 member's intent to terminate membership for employment as an
  4 20 elective official and establishing that the member has a bona
  4 21 fide termination of employment from all employment covered
  4 22 under this chapter other than as an elective official and that
  4 23 the member has filed a completed application for benefits form
  4 24 with the department.  A county attorney is an employee for
  4 25 purposes of this chapter whether that county attorney is
  4 26 employed on a full-time or part-time basis.
  4 27    Sec. 7.  Section 97B.1A, subsection 8, paragraph b,
  4 28 subparagraph (2), Code Supplement 2001, is amended to read as
  4 29 follows:
  4 30    (2)  Graduate medical students while serving as interns or
  4 31 resident doctors in training at any hospital, or county
  4 32 medical examiners and deputy county medical examiners under
  4 33 chapter 331, division V, part 8, who are not full-time county
  4 34 employees.
  4 35    Sec. 8.  Section 97B.1A, subsection 8, paragraph b, Code
  5  1 Supplement 2001, is amended by adding the following new
  5  2 subparagraph:
  5  3    NEW SUBPARAGRAPH.  (9)  Persons employed by the Iowa
  5  4 student loan liquidity corporation.
  5  5    Sec. 9.  Section 97B.1A, subsection 24, paragraph a, Code
  5  6 Supplement 2001, is amended to read as follows:
  5  7    a.  "Three-year average covered wage" means, for a member
  5  8 who retires prior to July 1, 2003 2005, a member's covered
  5  9 wages averaged for the highest three years of the member's
  5 10 service, except as otherwise provided in this subsection.  The
  5 11 highest three years of a member's covered wages shall be
  5 12 determined using calendar years.  However, if a member's final
  5 13 quarter of a year of employment does not occur at the end of a
  5 14 calendar year, the department may determine the wages for the
  5 15 third year by computing the average quarter of all quarters
  5 16 from the member's highest calendar year of covered wages not
  5 17 being used in the selection of the two highest years and using
  5 18 the computed average quarter for each quarter in the third
  5 19 year in which no wages have been reported in combination with
  5 20 the final quarter or quarters of the member's service to
  5 21 create a full year.  However, the department shall not use the
  5 22 member's final quarter of wages if using that quarter would
  5 23 reduce the member's three-year average covered wage.  If the
  5 24 three-year average covered wage of a member exceeds the
  5 25 highest maximum covered wages in effect for a calendar year
  5 26 during the member's period of service, the three-year average
  5 27 covered wage of the member shall be reduced to the highest
  5 28 maximum covered wages in effect during the member's period of
  5 29 service.  Notwithstanding any other provision of this
  5 30 paragraph to the contrary, a member's wages for the third year
  5 31 as computed by this paragraph shall not exceed, by more than
  5 32 three percent, the member's highest actual calendar year of
  5 33 covered wages for a member whose first month of entitlement is
  5 34 January 1999 or later.
  5 35    Sec. 10.  Section 97B.1A, subsection 24, paragraph c, Code
  6  1 Supplement 2001, is amended to read as follows:
  6  2    c.  "Three-year average covered wage" means, for a member
  6  3 who retires on or after July 1, 2003 2005, the greater of the
  6  4 member's covered wages averaged for a member's highest twelve
  6  5 consecutive quarters of service or the member's covered wages
  6  6 averaged for a member's highest three calendar years of
  6  7 service.  The department shall adopt rules to implement this
  6  8 paragraph in accordance with the requirements of this chapter
  6  9 and the federal Internal Revenue Code.
  6 10    Sec. 11.  Section 97B.15, Code 2001, is amended to read as
  6 11 follows:
  6 12    97B.15  RULES, POLICIES, AND PROCEDURES.
  6 13    The department may adopt rules under chapter 17A and
  6 14 establish procedures, not inconsistent with this chapter,
  6 15 which are necessary or appropriate to implement this chapter
  6 16 and shall adopt reasonable and proper rules to regulate and
  6 17 provide for the nature and extent of the proofs and evidence
  6 18 and the method of taking and furnishing the proofs and
  6 19 evidence in order to establish the right to benefits under
  6 20 this chapter.  The department may adopt rules, and take action
  6 21 based on the rules, to conform the requirements for receipt of
  6 22 retirement benefits under this chapter to the mandates of
  6 23 applicable federal and state statutes and regulations.
  6 24    Prior to the adoption of rules, the department may
  6 25 establish interim written policies and procedures, and take
  6 26 action based on the policies and procedures, to conform the
  6 27 requirements for receipt of retirement benefits under this
  6 28 chapter to the applicable requirements of federal and state
  6 29 law.
  6 30    Sec. 12.  Section 97B.17, Code Supplement 2001, is amended
  6 31 to read as follows:
  6 32    97B.17  RECORDS MAINTAINED.
  6 33    1.  The department shall establish and maintain records of
  6 34 each member, including but not limited to, the amount of wages
  6 35 of each member, the contribution of each member with interest,
  7  1 and interest dividends credited.  The records may be
  7  2 maintained in paper, magnetic, or electronic form, including
  7  3 optical disk storage.  These records are the basis for the
  7  4 compilation of the retirement benefits provided under this
  7  5 chapter.
  7  6    2.  The following records maintained under this chapter are
  7  7 not public records for the purposes of chapter 22:
  7  8    1. a.  Records containing social security numbers.
  7  9    2. b.  Records specifying amounts accumulated in members'
  7 10 accounts and supplemental accounts.
  7 11    3. c.  Records containing names or addresses of members or
  7 12 their beneficiaries.
  7 13    4. d.  Records containing amounts of payments to members or
  7 14 their beneficiaries.
  7 15    5. e.  Records containing financial or commercial
  7 16 information that relates to the investment of system funds if
  7 17 the disclosure of such information could result in a loss to
  7 18 the system or to the provider of the information.
  7 19    3.  Summary information concerning the demographics of the
  7 20 members and general statistical information concerning the
  7 21 system is subject to chapter 22, as well as aggregate
  7 22 information by category.
  7 23    However, the department's records are evidence for the
  7 24 purpose of proceedings before the department or any court of
  7 25 the amounts of wages and the periods in which they were paid,
  7 26 and the absence of an entry as to a member's wages in the
  7 27 records for any period is evidence that wages were not paid
  7 28 that member in the period.
  7 29    4.  Notwithstanding any provisions of chapter 22 to the
  7 30 contrary, the department's records may be released to any
  7 31 political subdivision, instrumentality, or other agency of the
  7 32 state solely for use in a civil or criminal law enforcement
  7 33 activity pursuant to the requirements of this paragraph
  7 34 subsection.  To obtain the records, the political subdivision,
  7 35 instrumentality, or agency shall, in writing, certify that the
  8  1 activity is authorized by law, provide a written description
  8  2 of the information desired, and describe the law enforcement
  8  3 activity for which the information is sought.  The department
  8  4 shall not be civilly or criminally liable for the release or
  8  5 rerelease of records in accordance with this paragraph
  8  6 subsection.
  8  7    5.  Confidential records of the division maintained for the
  8  8 operation of the system may be released to the directors,
  8  9 agents, and employees of the legislative fiscal bureau, the
  8 10 department of revenue and finance, the department of
  8 11 management, the department of personnel, or an employer of
  8 12 employees covered by the system pursuant to rules adopted by
  8 13 the division for the performance of the requestor's duties.
  8 14 To obtain a record under this subsection, the person
  8 15 requesting the records shall provide a written description of
  8 16 the information requested and the reason for requesting the
  8 17 records to the division.  A person receiving a record pursuant
  8 18 to this subsection shall maintain the confidentiality of any
  8 19 information otherwise required to be kept confidential and
  8 20 shall be subject to the same penalties as the custodian of the
  8 21 records for the public dissemination of such information.
  8 22    Sec. 13.  Section 97B.18, Code 2001, is amended to read as
  8 23 follows:
  8 24    97B.18  STATEMENT OF ACCUMULATED CREDIT.
  8 25    After the expiration of each calendar year and prior to
  8 26 July 1 of the succeeding year, the department shall furnish
  8 27 each member with a statement of the member's accumulated
  8 28 contributions and benefit credits accrued under this chapter
  8 29 up to the end of that calendar year and additional information
  8 30 the department deems useful to a member.  The department may
  8 31 furnish an estimate of the credits as of the projected normal
  8 32 retirement date of the member under section 97B.45.  The
  8 33 department shall mail the statement to each employer not later
  8 34 than June 30 of the succeeding calendar year.  The employer
  8 35 shall distribute the statements to its employees, and the
  9  1 records of the department as shown by the statement as to the
  9  2 wages of each individual member for a year and the periods of
  9  3 payment shall be conclusive for the purpose of this chapter,
  9  4 except as otherwise provided in this chapter.
  9  5    Effective for the calendar year beginning January 1, 1994,
  9  6 the department may transmit the statements directly to the
  9  7 members in lieu of mailing them to the employers.
  9  8    Sec. 14.  Section 97B.42, unnumbered paragraphs 6 and 7,
  9  9 Code 2001, are amended to read as follows:
  9 10    Notwithstanding any other provision of this section,
  9 11 commencing July 1, 1994, a member who is employed by a
  9 12 community college may elect coverage under an eligible
  9 13 alternative retirement benefits system as provided in section
  9 14 260C.14, subsection 17, in lieu of continuing or commencing
  9 15 contributions to the Iowa public employees' retirement system.
  9 16 However, the employer's annual contribution in dollars to the
  9 17 eligible alternative retirement benefits system shall not
  9 18 exceed the annual contribution in dollars which the employer
  9 19 would contribute if the employee had elected to remain an
  9 20 active member under this chapter, as set forth in section
  9 21 97B.11.  A member employed by a community college who elects
  9 22 coverage under an eligible alternative retirement benefits
  9 23 system may withdraw the member's accumulated contributions
  9 24 effective when coverage under the eligible alternative
  9 25 retirement benefits system commences.  A member who is
  9 26 employed by a community college prior to July 1, 1994, must
  9 27 file an election for coverage under the eligible alternative
  9 28 retirement benefits system described in section 260C.14,
  9 29 subsection 17, paragraph "a", with the department and the
  9 30 employing community college within eighteen months of the
  9 31 first day on which coverage commences under the community
  9 32 college's eligible alternative retirement benefits system
  9 33 described in section 260C.14, subsection 17, paragraph "a", or
  9 34 the employee shall remain a member under this chapter and
  9 35 shall not be eligible to elect to participate in that
 10  1 community college's eligible alternative retirement benefits
 10  2 system described in section 260C.14, subsection 17, paragraph
 10  3 "a", at a later date.  Employees of a community college hired
 10  4 on or after July 1, 1994, must file an election for coverage
 10  5 under an eligible alternative retirement benefits system with
 10  6 the department and the employing community college within
 10  7 sixty days of commencing employment, or the employee shall
 10  8 remain a member under this chapter and shall not be eligible
 10  9 to elect to participate in an eligible alternative retirement
 10 10 benefits system of the community college at a later date.  The
 10 11 department shall cooperate with the boards of directors of the
 10 12 community colleges to facilitate the implementation of this
 10 13 provision.
 10 14    Notwithstanding any other provision of this section, a
 10 15 person newly entering employment with a community college on
 10 16 or after July 1, 1990, may elect coverage under an eligible
 10 17 alternative retirement benefits system, as defined in section
 10 18 260C.14, subsection 17, paragraph "a", in lieu of coverage
 10 19 under the Iowa public employees' retirement system, but only
 10 20 if the person is already a member of the alternative
 10 21 retirement benefits system.  An election to participate in an
 10 22 eligible alternative retirement benefits system as described
 10 23 in section 260C.14, subsection 17, is irrevocable as to the
 10 24 person's employment with that community college and any other
 10 25 community college in this state.
 10 26    Sec. 15.  Section 97B.44, Code 2001, is amended by adding
 10 27 the following new unnumbered paragraph:
 10 28    NEW UNNUMBERED PARAGRAPH.  However, the system may accept a
 10 29 married member's designation or change in designation under
 10 30 this section without the written consent of the member's
 10 31 spouse if the member submits a notarized statement indicating
 10 32 that the member has been unable to locate the member's spouse
 10 33 to obtain the written consent of the spouse after reasonable
 10 34 diligent efforts.  The member's designation or change in
 10 35 designation shall become effective upon filing the necessary
 11  1 forms, including the notarized statement, with the division.
 11  2 The division shall not be liable to the member, the member's
 11  3 spouse, or to any other person affected by the member's
 11  4 designation or change of designation, based upon a designation
 11  5 or change of designation accomplished without the written
 11  6 consent of the member's spouse.
 11  7    Sec. 16.  Section 97B.45, Code 2001, is amended to read as
 11  8 follows:
 11  9    97B.45  NORMAL RETIREMENT DATE.
 11 10    A member's normal retirement date is any of the following,
 11 11 whichever is applicable to the member:
 11 12    1.  The first of the month in which a member attains the
 11 13 age of sixty-five years if the member has not completed twenty
 11 14 years of membership service.
 11 15    2.  The first of the month in which the member attains the
 11 16 age of sixty-two years if the member has completed twenty
 11 17 years of membership service.
 11 18    3.  The first of any month in which the member has
 11 19 completed twenty years of membership service if the member has
 11 20 attained the age of sixty-two years but is not yet sixty-five
 11 21 years of age.
 11 22    4.  The first of any month in which the member is at least
 11 23 fifty-five years of age and for which the sum of the number of
 11 24 years of membership service and prior service and the member's
 11 25 age in years as of the member's last birthday equals or
 11 26 exceeds eighty-eight.
 11 27    A member may retire after the member's sixty-fifth birthday
 11 28 except as otherwise provided in section 97B.46.  A member
 11 29 retiring on or after the normal retirement date, as provided
 11 30 in section 97B.46, shall submit a written notice to the
 11 31 department setting forth the date the retirement is to become
 11 32 effective.  The date shall be after the member's last day of
 11 33 service and not before the first day of the sixth calendar
 11 34 month preceding the month in which the notice is filed.
 11 35    Sec. 17.  Section 97B.48, subsection 3, Code 2001, is
 12  1 amended to read as follows:
 12  2    3.  As of On or before the first of the month in which a
 12  3 member attains the age of seventy years, the department
 12  4 division shall provide written notification to the each member
 12  5 for whom the division has an address that the member may
 12  6 commence receiving a retirement allowance regardless of the
 12  7 member's employment status.  Prior to receiving a retirement
 12  8 allowance pursuant to this subsection, a member shall
 12  9 acknowledge in writing that the member was informed by the
 12 10 department of the consequences of electing to receive a
 12 11 retirement allowance pursuant to this subsection and that
 12 12 receipt of a retirement allowance under this subsection is
 12 13 optional.  Upon termination from employment of a member
 12 14 receiving a retirement allowance pursuant to this subsection,
 12 15 the member is entitled to have the member's monthly retirement
 12 16 allowance recalculated using the applicable formula for
 12 17 determining a retirement allowance pursuant to sections
 12 18 97B.49A through 97B.49G, as applicable, in place at the time
 12 19 of the member's first month of entitlement.
 12 20    Sec. 18.  Section 97B.48A, subsection 1, unnumbered
 12 21 paragraph 1, Code 2001, is amended to read as follows:
 12 22    If a member who has not reached the member's sixty-fifth
 12 23 birthday and who has a bona fide retirement under this chapter
 12 24 is in regular full-time employment during a calendar year, the
 12 25 member's retirement allowance shall be reduced by fifty cents
 12 26 for each dollar the member earns over the limit provided in
 12 27 this subsection.  However, employment is not full-time
 12 28 employment until the member receives remuneration in an amount
 12 29 in excess of fourteen forty thousand dollars for a calendar
 12 30 year, or an amount equal to the amount of remuneration
 12 31 permitted for a calendar year for persons under sixty-five
 12 32 years of age before a reduction in federal social security
 12 33 retirement benefits is required, whichever is higher.
 12 34 Effective the first of the month in which a member attains the
 12 35 age of sixty-five years, a retired member may receive a
 13  1 retirement allowance without a reduction after return to
 13  2 covered employment regardless of the amount of remuneration
 13  3 received.
 13  4    Sec. 19.  Section 97B.49B, subsection 1, paragraph e,
 13  5 subparagraph (1), Code 2001, is amended to read as follows:
 13  6    (1)  A conservation peace officer employed under section
 13  7 456A.13 or as designated by a county conservation board
 13  8 pursuant to section 350.5.
 13  9    Sec. 20.  Section 97B.49B, Code 2001, is amended by adding
 13 10 the following new subsection:
 13 11    NEW SUBSECTION.  4.  Notwithstanding any provision of this
 13 12 chapter to the contrary, the three-year average covered wage
 13 13 for a member retiring under this section whose years of
 13 14 eligible service equals or exceeds twenty-two years of
 13 15 eligible service for that member shall be determined by
 13 16 calculating the member's eligible combined wage for each year
 13 17 of eligible service.  For purposes of this subsection,
 13 18 "eligible combined wage" means the wages earned by the member
 13 19 for each quarter year period from eligible service and from
 13 20 covered employment that is not eligible service if at least
 13 21 seventy-five percent of the wages earned was from eligible
 13 22 service.
 13 23    Sec. 21.  Section 97B.49C, Code 2001, is amended by adding
 13 24 the following new subsection:
 13 25    NEW SUBSECTION.  4.  Notwithstanding any provision of this
 13 26 chapter to the contrary, the three-year average covered wage
 13 27 for a member retiring under this section whose years of
 13 28 eligible service equals or exceeds twenty-two years of
 13 29 eligible service for that member shall be determined by
 13 30 calculating the member's eligible combined wage for each
 13 31 quarter year of eligible service.  For purposes of this
 13 32 subsection, "eligible combined wage" means the wages earned by
 13 33 the member for each quarter year period from eligible service
 13 34 and from covered employment that is not eligible service if at
 13 35 least seventy-five percent of the wages earned was from
 14  1 eligible service.
 14  2    Sec. 22.  Section 97B.49F, subsection 2, paragraph a, Code
 14  3 2001, is amended to read as follows:
 14  4    a.  Commencing January 1, 1999, all members who retired on
 14  5 or after July 1, 1990, and qualified recipients who have been
 14  6 retired received a monthly allowance for at least one year as
 14  7 of the date the dividend is payable, or a beneficiary or
 14  8 contingent annuitant of such a member who receives a monthly
 14  9 benefit, shall be eligible to receive a favorable experience
 14 10 dividend, payable on the last business day in January of each
 14 11 year pursuant to the requirements of this subsection.  If the
 14 12 member, beneficiary, or contingent annuitant qualified
 14 13 recipient eligible to receive a favorable experience dividend
 14 14 dies before January 1 of a year, a favorable experience
 14 15 dividend shall not be payable in January of that year in the
 14 16 name of the member, beneficiary, or contingent annuitant
 14 17 qualified recipient.  However, if the member, beneficiary, or
 14 18 contingent annuitant qualified recipient dies on or after
 14 19 January 1 but before the dividend is paid in that month, the
 14 20 full amount of the dividend payable in that month shall be
 14 21 paid in the name of the applicable member, beneficiary, or
 14 22 contingent annuitant qualified recipient, upon notification of
 14 23 death.  For purposes of this paragraph, "qualified recipient"
 14 24 includes all members who retired on or after July 1, 1990, or
 14 25 a beneficiary or contingent annuitant of such a member who
 14 26 receives a monthly benefit, and a beneficiary of an active
 14 27 member who elects a monthly allowance under section 97B.52,
 14 28 subsection 1, paragraph "c".
 14 29    Sec. 23.  Section 97B.51, subsection 1, unnumbered
 14 30 paragraph 1, Code 2001, is amended to read as follows:
 14 31    Each member has the right prior to the member's retirement
 14 32 date to elect to have the member's retirement allowance
 14 33 payable under one of the options set forth in this section.
 14 34 The amount of the optional retirement allowance selected in
 14 35 paragraph "a", "c", "d", or "e", or "f" shall be the actuarial
 15  1 equivalent of the amount of the retirement allowance otherwise
 15  2 payable to the member as determined by the system in
 15  3 consultation with the system's actuary.  The member shall make
 15  4 an election by written request to the department and the
 15  5 election is subject to the approval of the department.  If the
 15  6 member is married, election of an option under this section
 15  7 requires the written acknowledgment of the member's spouse.
 15  8 However, the system may accept a married member's election of
 15  9 a benefit option under this section without the written
 15 10 acknowledgement of the member's spouse if the member submits a
 15 11 notarized statement indicating that the member has been unable
 15 12 to locate the member's spouse to obtain the written
 15 13 acknowledgement of the spouse after reasonable diligent
 15 14 efforts.  The member's election of a benefit option shall
 15 15 become effective upon filing the necessary forms, including
 15 16 the notarized statement, with the division.  The division
 15 17 shall not be liable to the member, the member's spouse, or to
 15 18 any other person affected by the member's election of a
 15 19 benefit option, based upon an election of benefit option
 15 20 accomplished without the written acknowledgement of the
 15 21 member's spouse.  The member may, if eligible, select one of
 15 22 the following options:
 15 23    Sec. 24.  Section 97B.51, subsection 1, paragraph a, Code
 15 24 2001, is amended to read as follows:
 15 25    a.  At retirement, a member may designate that upon the
 15 26 member's death, a specified amount of money shall be paid to a
 15 27 named beneficiary, and the member's monthly retirement
 15 28 allowance shall be reduced by an actuarially determined amount
 15 29 to provide for the lump sum payment.  The amount designated by
 15 30 the member must be in thousand dollar increments and shall be
 15 31 limited to the amount of the member's accumulated
 15 32 contributions.  The amount designated shall not lower the
 15 33 monthly retirement allowance of the member by more than one-
 15 34 half the amount payable as provided in paragraph "b".  A
 15 35 member may designate a different beneficiary at any time,
 16  1 except as limited by an order that has been accepted by the
 16  2 department as complying with the requirements of section
 16  3 97B.39.  The election of a death benefit amount under this
 16  4 paragraph shall be irrevocable upon payment of the first
 16  5 monthly retirement allowance.
 16  6    Sec. 25.  Section 97B.51, subsection 1, Code 2001, is
 16  7 amended by adding the following new paragraph:
 16  8    NEW PARAGRAPH.  f.  A member retiring under section 97B.49B
 16  9 or 97B.49C may select an allowance upon retirement as provided
 16 10 under paragraph "c", and may elect to have the monthly
 16 11 allowance otherwise payable to the member pursuant to that
 16 12 paragraph recalculated as provided in this paragraph.  A
 16 13 member electing payment of a monthly allowance under this
 16 14 paragraph shall have the member's monthly allowance increased,
 16 15 as determined by the system's actuary, by an amount equal to
 16 16 the monthly federal social security benefit that would be
 16 17 payable to the member on the date the member would be first
 16 18 eligible to receive a reduced social security pension benefit.
 16 19 Upon reaching the date the member would be first eligible to
 16 20 receive a reduced social security pension benefit, the
 16 21 member's monthly retirement allowance shall be permanently
 16 22 reduced, as determined by the system's actuary.  A member
 16 23 electing payment of an allowance under this paragraph shall
 16 24 provide the system with a certified record of the member's
 16 25 wage history from social security at least sixty days prior to
 16 26 the member's first month of entitlement.
 16 27    Sec. 26.  Section 97B.52, subsection 4, paragraph b, Code
 16 28 2001, is amended to read as follows:
 16 29    b.  If a death benefit is due and payable on behalf of a
 16 30 member who dies prior to the member's first month of
 16 31 entitlement, interest shall continue to accumulate through the
 16 32 quarter preceding the quarter in which payment is made to the
 16 33 designated beneficiary, heirs at law, or the estate unless the
 16 34 payment of the death benefit is delayed because of a dispute
 16 35 between alleged heirs, in which case the benefit due and
 17  1 payable shall be placed in a noninterest bearing escrow
 17  2 account until the beneficiary is determined in accordance with
 17  3 this section.
 17  4    Sec. 27.  Section 97B.53, subsection 4, Code 2001, is
 17  5 amended to read as follows:
 17  6    4.  A member has not terminated employment for purposes of
 17  7 this section if the member accepts other covered employment
 17  8 within four months thirty days after receiving the last
 17  9 payment of wages for covered employment, or if the member
 17 10 begins covered employment prior to filing a request for a
 17 11 refund with the department division.
 17 12    Sec. 28.  Section 97B.53B, Code 2001, is amended to read as
 17 13 follows:
 17 14    97B.53B  ROLLOVERS OF MEMBERS' ACCOUNTS.
 17 15    1.  As used in this section, unless the context otherwise
 17 16 requires, and to the extent permitted by the internal revenue
 17 17 service:
 17 18    a.  "Direct rollover" means a payment by the system to the
 17 19 eligible retirement plan specified by the member or the
 17 20 member's surviving spouse.
 17 21    b.  "Eligible retirement plan" means either of the
 17 22 following that accepts an eligible rollover distribution from
 17 23 a member or a member's surviving spouse:
 17 24    (1)  An individual retirement account in accordance with
 17 25 section 408(a) of the federal Internal Revenue Code.
 17 26    (2)  An individual retirement annuity in accordance with
 17 27 section 408(b) of the federal Internal Revenue Code.
 17 28    In addition, an "eligible retirement plan" includes an
 17 29 annuity plan in accordance with section 403(a) of the federal
 17 30 Internal Revenue Code, or a qualified trust in accordance with
 17 31 section 401(a) of the federal Internal Revenue Code, that
 17 32 accepts an eligible rollover distribution from a member.
 17 33 Effective January 1, 2002, the term "eligible retirement plan"
 17 34 also includes an annuity contract described in section 403(b)
 17 35 of the federal Internal Revenue Code, and an eligible plan
 18  1 under 457(b) of the federal Internal Revenue Code which is
 18  2 maintained by a state, political subdivision of a state, or
 18  3 any agency or instrumentality of a state or political
 18  4 subdivision of a state that chooses to separately account for
 18  5 amounts transferred into such eligible retirement plan from
 18  6 the system.
 18  7    c.  (1)  "Eligible rollover distribution" means all
 18  8 includes any of the following:
 18  9    (a)  All or any portion of a member's account and
 18 10 supplemental account, except that an.
 18 11    (b)  Effective January 1, 2002, after-tax employee
 18 12 contributions, if the plan to which such amounts are to be
 18 13 transferred is an individual retirement account described in
 18 14 federal Internal Revenue Code section 408(a) or 408(b), or is
 18 15 a qualified defined contribution plan described in federal
 18 16 Internal Revenue Code section 401(a) or 403(a), and such plan
 18 17 agrees to separately account for the after-tax amount so
 18 18 transferred.
 18 19    (c)  A distribution made on behalf of a surviving spouse
 18 20 and to an alternate payee under a qualified domestic relations
 18 21 order.
 18 22    (2)  An eligible rollover distribution does not include any
 18 23 of the following:
 18 24    (1) (a)  A distribution that is one of a series of
 18 25 substantially equal periodic payments, which occur annually or
 18 26 more frequently, made for the life or life expectancy of the
 18 27 distributee or the joint lives or joint life expectancies of
 18 28 the distributee and the distributee's designated beneficiary,
 18 29 or made for a specified period of ten years or more.
 18 30    (2) (b)  A distribution to the extent that the distribution
 18 31 is required pursuant to section 401(a)(9) of the federal
 18 32 Internal Revenue Code.
 18 33    (3) (c)  The portion of any distribution that is not
 18 34 includible in the gross income of the distributee, determined
 18 35 without regard to the exclusion for net unrealized
 19  1 appreciation with respect to employer securities.
 19  2    (4)  Annual distributions of less than two hundred dollars
 19  3 of taxable income.
 19  4    2.  Effective January 1, 1993, a member or a member's
 19  5 surviving spouse may elect, at the time and in the manner
 19  6 prescribed in rules adopted by the department, to have the
 19  7 department pay all or a portion of an eligible rollover
 19  8 distribution directly to an eligible retirement plan,
 19  9 specified by the member or the member's surviving spouse, in a
 19 10 direct rollover.  If a member or a member's surviving spouse
 19 11 elects a partial direct rollover, the amount of funds elected
 19 12 for the partial direct rollover must equal or exceed five
 19 13 hundred dollars.
 19 14    Sec. 29.  NEW SECTION.  97B.80C  PURCHASES OF PERMISSIVE
 19 15 SERVICE CREDIT.
 19 16    1.  DEFINITIONS.  For purposes of this section:
 19 17    a.  "Nonqualified service" means service that is not
 19 18 qualified service.
 19 19    b.  "Permissive service credit" means credit that will be
 19 20 recognized by the system for purposes of calculating a
 19 21 member's benefit, for which the member did not previously
 19 22 receive service credit in the system, and for which the member
 19 23 voluntarily contributes to the system the amount required by
 19 24 the system, not in excess of the amount necessary to fund the
 19 25 benefit attributable to such service.
 19 26    c.  (1)  "Qualified service" means any of the following:
 19 27    (a)  Service with the United States government or any state
 19 28 or local government, including any agency or instrumentality
 19 29 thereof, regardless of whether that government, agency, or
 19 30 instrumentality was a covered employer at the time of the
 19 31 service.
 19 32    (b)  Service with an association representing employees of
 19 33 the United States government or any state or local government,
 19 34 including any agency or instrumentality thereof, regardless of
 19 35 whether that government, agency, or instrumentality was a
 20  1 covered employer at the time of the service.
 20  2    (c)  Service with an educational organization which
 20  3 normally maintains a regular faculty and curriculum, normally
 20  4 has a regularly enrolled body of pupils or students in
 20  5 attendance at the place where its educational activities are
 20  6 regularly carried on, and is a public, private, or sectarian
 20  7 school which provides elementary education or secondary
 20  8 education through grade twelve.
 20  9    (d)  Military service other than military service required
 20 10 to be recognized under Internal Revenue Code section 414(u) or
 20 11 under the federal Uniformed Services Employment and
 20 12 Reemployment Rights Act.
 20 13    (2)  "Qualified service" does not include service as
 20 14 described in subparagraph (1) if the receipt of credit for
 20 15 such service would result in the member receiving a retirement
 20 16 benefit under more than one retirement plan for the same
 20 17 period of service.
 20 18    2.  a.  A member may make contributions to the system to
 20 19 purchase up to the maximum amount of permissive service credit
 20 20 for qualified service as determined by the division, pursuant
 20 21 to Internal Revenue Code section 415(n) and the requirements
 20 22 of this section.
 20 23    b.  A vested or retired member of the system who has five
 20 24 or more full calendar years of covered wages may make
 20 25 contributions to the system to purchase up to five years of
 20 26 permissive service credit for nonqualified service as
 20 27 determined by the division, pursuant to Internal Revenue Code
 20 28 section 415(n) and the requirements of this section.
 20 29    3.  A member making contributions for a purchase of
 20 30 permissive service credit under this section shall make
 20 31 contributions in an amount equal to the actuarial cost of the
 20 32 permissive service credit purchase.  For purposes of this
 20 33 subsection, the actuarial cost of the service purchase is an
 20 34 amount determined by the division in accordance with actuarial
 20 35 tables, as reported to the division by the system's actuary,
 21  1 which reflects the actuarial cost necessary to fund an
 21  2 increased retirement allowance resulting from the purchase of
 21  3 permissive service credit.
 21  4    4.  The division shall ensure that the member, in
 21  5 exercising an option provided in this section, does not exceed
 21  6 the amount of annual additions to a member's account permitted
 21  7 pursuant to section 415 of the federal Internal Revenue Code.
 21  8    Sec. 30.  Section 97B.82, Code 2001, is amended by striking
 21  9 the section and inserting in lieu thereof the following:
 21 10    97B.82  PURCHASE OF SERVICE CREDIT – DIRECT ROLLOVERS –
 21 11 DIRECT TRANSFERS.
 21 12    1.  Effective July 1, 2002, a member may, to the extent
 21 13 permitted by the internal revenue service, purchase any
 21 14 service credit permitted under this chapter by means of a
 21 15 direct rollover or a direct transfer as provided in this
 21 16 section pursuant to rules adopted by the division and
 21 17 consistent with applicable requirements of the federal
 21 18 Internal Revenue Code.  Purchases of service credit by means
 21 19 of a direct rollover or direct transfer under this section
 21 20 shall not exceed the amounts permitted under section 415(n) of
 21 21 the federal Internal Revenue Code and section 97B.80C as
 21 22 determined by the division.
 21 23    2.  a.  A member may purchase service credit as authorized
 21 24 by this section through a direct rollover to the system of an
 21 25 eligible rollover distribution from an eligible retirement
 21 26 plan as permitted by the internal revenue service under the
 21 27 federal Internal Revenue Code.  The amount of the direct
 21 28 rollover into the system cannot exceed the cost of the service
 21 29 purchase by a member under this chapter.  Once a direct
 21 30 rollover is made, the member must forfeit the applicable
 21 31 service credit from the eligible retirement plan from which
 21 32 the eligible rollover distribution is received.
 21 33    b.  (1)  For purposes of this subsection, "an eligible
 21 34 rollover distribution from an eligible retirement plan"
 21 35 includes distributions from any of the following:
 22  1    (a)  Qualified plans described in federal Internal Revenue
 22  2 Code sections 401(a) and 403(a).
 22  3    (b)  Annuity contracts described in federal Internal
 22  4 Revenue Code section 403(b).
 22  5    (c)  Eligible plans described under federal Internal
 22  6 Revenue Code section 457(b) which are maintained by a state,
 22  7 political subdivision of a state, or any agency or
 22  8 instrumentality of a state or political subdivision of a
 22  9 state.
 22 10    (d)  Individual retirement accounts described in federal
 22 11 Internal Revenue Code section 408(a) or 408(b).
 22 12    (2)  An eligible rollover distribution from an eligible
 22 13 retirement plan does not include any of the following:
 22 14    (a)  A distribution that is one of a series of
 22 15 substantially equal periodic payments, which occur annually or
 22 16 more frequently, made for the life or life expectancy of the
 22 17 distributee or the joint lives or joint life expectancies of
 22 18 the distributee and the distributee's designated beneficiary,
 22 19 or made for a specified period of ten years or more.
 22 20    (b)  A distribution to the extent that the distribution is
 22 21 required pursuant to section 401(a)(9) of the federal Internal
 22 22 Revenue Code.
 22 23    (c)  The portion of any distribution that is not includible
 22 24 in the gross income of the distributee, determined without
 22 25 regard to the exclusion for net unrealized appreciation with
 22 26 respect to employer securities.
 22 27    (d)  Any amounts that are not permitted to be treated as
 22 28 eligible rollover distributions by the internal revenue
 22 29 service under the federal Internal Revenue Code.
 22 30    3.  A member may purchase any service credit as authorized
 22 31 by this section, to the extent permitted by the internal
 22 32 revenue service, by means of a direct transfer, excluding any
 22 33 after-tax contributions, from an annuity contract qualified
 22 34 under federal Internal Revenue Code section 403(b), or an
 22 35 eligible plan described in federal Internal Revenue Code
 23  1 section 457(b), maintained by a state, political subdivision
 23  2 of a state, or any agency or instrumentality of a state or
 23  3 political subdivision of a state.  A direct transfer is a
 23  4 trustee-to-trustee transfer to the system of contributions
 23  5 made to annuity contracts qualified under federal Internal
 23  6 Revenue Code section 403(b) and eligible plans qualified under
 23  7 federal Internal Revenue Code section 457(b) for purposes of
 23  8 purchasing service credit in the system.
 23  9    Sec. 31.  RETROACTIVE APPLICABILITY.  Section 97B.52,
 23 10 subsection 2, Code 2001, establishing a line of duty death
 23 11 benefit for a member in special service, is retroactively
 23 12 applicable to January 1, 1992, and is applicable to covered
 23 13 deaths occurring on and after that date.
 23 14    Sec. 32.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.
 23 15    1.  The section of this Act amending section 97B.1A,
 23 16 subsection 8, paragraph "b", subparagraph (2), being deemed of
 23 17 immediate importance, takes effect upon enactment and is
 23 18 retroactively applicable to January 1, 1995, and is applicable
 23 19 on and after that date.
 23 20    2.  The section of this Act amending section 97B.50A,
 23 21 subsection 2, being deemed of immediate importance takes
 23 22 effect upon enactment.
 23 23    3.  The section of this Act amending section 97B.53B, being
 23 24 deemed of immediate importance, takes effect upon enactment
 23 25 and is retroactively applicable to January 1, 2002, and is
 23 26 applicable on and after that date.  
 23 27                          DIVISION III
 23 28           STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 23 29    Sec. 33.  Section 411.1, Code Supplement 2001, is amended
 23 30 by adding the following new subsection:
 23 31    NEW SUBSECTION.  11A.  "Member in good standing" means a
 23 32 member in service who is not subject to removal by the
 23 33 employing city of the member pursuant to section 400.18 or
 23 34 400.19, or other comparable process, and who is not the
 23 35 subject of an investigation that could lead to such removal.
 24  1    Sec. 34.  Section 411.6, subsection 3, Code 2001, is
 24  2 amended to read as follows:
 24  3    3.  ORDINARY DISABILITY RETIREMENT BENEFIT.  Upon
 24  4 application to the system, of a member in service good
 24  5 standing or of the chief of the police or fire departments,
 24  6 respectively, any member in good standing shall be retired by
 24  7 the system, not less than thirty and not more than ninety days
 24  8 next following the date of filing the application, on an
 24  9 ordinary disability retirement allowance, if the medical board
 24 10 after a medical examination of the member certifies that the
 24 11 member is mentally or physically incapacitated for further
 24 12 performance of duty, that the incapacity is likely to be
 24 13 permanent, and that the member should be retired.  However, if
 24 14 a person's membership in the system first commenced on or
 24 15 after July 1, 1992, the member shall not be eligible for
 24 16 benefits with respect to a disability which would not exist,
 24 17 but for a medical condition that was known to exist on the
 24 18 date that membership commenced.  A member who is denied a
 24 19 benefit under this subsection, by reason of a finding by the
 24 20 medical board that the member is not mentally or physically
 24 21 incapacitated for the further performance of duty, shall be
 24 22 entitled to be restored to active service in the same position
 24 23 held immediately prior to the application for disability
 24 24 benefits.  The member-in-good-standing requirement of this
 24 25 subsection may be waived for good cause as determined by the
 24 26 board.  The burden of establishing good cause is on the
 24 27 member.
 24 28    Sec. 35.  Section 411.6, subsection 5, paragraph a, Code
 24 29 2001, is amended to read as follows:
 24 30    a.  Upon application to the system, of a member in service
 24 31 good standing or of the chief of the police or fire
 24 32 departments, respectively, any member in good standing who has
 24 33 become totally and permanently incapacitated for duty as the
 24 34 natural and proximate result of an injury or disease incurred
 24 35 in or aggravated by the actual performance of duty at some
 25  1 definite time and place, or while acting pursuant to order,
 25  2 outside of the city by which the member is regularly employed,
 25  3 shall be retired by the system, if the medical board certifies
 25  4 that the member is mentally or physically incapacitated for
 25  5 further performance of duty, that the incapacity is likely to
 25  6 be permanent, and that the member should be retired.  However,
 25  7 if a person's membership in the system first commenced on or
 25  8 after July 1, 1992, the member shall not be eligible for
 25  9 benefits with respect to a disability which would not exist,
 25 10 but for a medical condition that was known to exist on the
 25 11 date that membership commenced.  A member who is denied a
 25 12 benefit under this subsection, by reason of a finding by the
 25 13 medical board that the member is not mentally or physically
 25 14 incapacitated for the further performance of duty, shall be
 25 15 entitled to be restored to active service in the same position
 25 16 held immediately prior to the application for disability
 25 17 benefits.
 25 18    Sec. 36.  Section 411.6, subsection 5, Code 2001, is
 25 19 amended by adding the following new paragraph:
 25 20    NEW PARAGRAPH.  d.  The requirement that a member be in
 25 21 good standing to apply for and receive a benefit under this
 25 22 subsection may be waived for good cause as determined by the
 25 23 board.  The burden of establishing good cause is on the
 25 24 member.
 25 25    Sec. 37.  Section 411.6, subsection 7, paragraph b, Code
 25 26 2001, is amended to read as follows:
 25 27    b.  Should a disability beneficiary under age fifty-five be
 25 28 restored to active service at a compensation not less than the
 25 29 disability beneficiary's average final compensation, the
 25 30 disability beneficiary's retirement allowance shall cease, the
 25 31 disability beneficiary shall again become a member and shall
 25 32 contribute thereafter at the same rate paid prior to
 25 33 disability established in section 411.8, and former service on
 25 34 the basis of which the disability beneficiary's service was
 25 35 computed at the time of retirement shall be restored to full
 26  1 force and effect and upon subsequent retirement the disability
 26  2 beneficiary shall be credited with all service as a member and
 26  3 also with the period of disability retirement.
 26  4    Sec. 38.  Section 411.6, subsection 8, paragraph b, Code
 26  5 2001, is amended to read as follows:
 26  6    b.  In lieu of the payment specified in paragraph "a", a
 26  7 beneficiary meeting the qualifications of paragraph "c" may
 26  8 elect to receive a monthly pension equal to one-twelfth of
 26  9 forty percent of the average final compensation of the member,
 26 10 but not less than twenty percent of the average monthly
 26 11 earnable compensation paid to an active member holding the
 26 12 highest grade in the rank of fire fighter, for a beneficiary
 26 13 of a deceased member of a fire department, or the highest
 26 14 grade in the rank of police patrol officer, for a beneficiary
 26 15 of a deceased member of a police department, if the member was
 26 16 in service at the time of death of the system, as reported by
 26 17 the actuary.  For a member not in service at the time of
 26 18 death, the pension shall be reduced as provided in subsection
 26 19 1, paragraph "b".
 26 20    For a member not in service at the time of death, the
 26 21 pension shall be paid commencing when the member would have
 26 22 attained the age of fifty-five except that if there is a child
 26 23 of the member, the pension shall be paid commencing with the
 26 24 member's death until the child of the member no longer meets
 26 25 the definition of child as provided in section 411.1.  The
 26 26 pension shall resume when the member would have attained the
 26 27 age of fifty-five.
 26 28    For a member in service at the time of death, the pension
 26 29 shall be paid commencing with the member's death.  In addition
 26 30 to the pension, there shall also be paid for each child of a
 26 31 member, a monthly pension equal to six percent of the average
 26 32 monthly earnable compensation paid to an active member holding
 26 33 the highest grade in the rank of fire fighter, for a child of
 26 34 a deceased member of a fire department, or the highest grade
 26 35 in the rank of police patrol officer, for a child of a
 27  1 deceased member of a police department of the system, as
 27  2 reported by the actuary.
 27  3    Notwithstanding section 411.6, subsection 8, Code 1985,
 27  4 effective July 1, 1990, for a member's surviving spouse who,
 27  5 prior to July 1, 1986, elected to receive pension benefits
 27  6 under this paragraph, the monthly pension benefit shall be
 27  7 equal to the higher of one-twelfth of forty percent of the
 27  8 average final compensation of the member, or the amount the
 27  9 surviving spouse was receiving on July 1, 1990.
 27 10    Sec. 39.  Section 411.6, subsection 9, paragraph b, Code
 27 11 2001, is amended to read as follows:
 27 12    b.  (1)  An If the member's designated beneficiary is the
 27 13 member's spouse, child or parent, an accidental death benefit
 27 14 pension equal to one-half of the average final compensation of
 27 15 the member shall be paid as follows:
 27 16    (a)  If the member's designated beneficiary is the member's
 27 17 spouse, then to the member's spouse.
 27 18    (b)  If the member's designated beneficiary is the member's
 27 19 child or children, then to the child or children in equal
 27 20 shares.  The pension to each child shall terminate when the
 27 21 child no longer meets the definition of child in section
 27 22 411.1.
 27 23    (c)  If the member's designated beneficiary is the member's
 27 24 dependent father or mother, or both, then to the father or
 27 25 mother, or both, in equal shares, to continue until remarriage
 27 26 or death.
 27 27    (2)  If the member failed to designate a beneficiary, or if
 27 28 the beneficiary designated by the member predeceases the
 27 29 member, then an accidental death benefit pension equal to one-
 27 30 half of the average final compensation of the member shall be
 27 31 paid as follows:
 27 32    (1) (a)  To the member's spouse.
 27 33    (2) (b)  If there is no spouse, or if the spouse dies and
 27 34 there is a child of the member, then to the member's child or
 27 35 children in equal shares.  The pension to each child shall
 28  1 terminate when the child no longer meets the definition of
 28  2 child in section 411.1.
 28  3    (3) (c)  If there is no surviving spouse or child, then to
 28  4 the member's dependent father or mother, or both, as the
 28  5 system determines in equal shares, to continue until
 28  6 remarriage or death.
 28  7    Sec. 40.  Section 411.6, subsection 9, paragraph c, Code
 28  8 2001, is amended to read as follow:
 28  9    c.  In addition to the accidental death benefit pension
 28 10 provided in paragraph "b", there shall also be paid for each
 28 11 child of a member a monthly pension equal to six percent of
 28 12 the average monthly earnable compensation paid to an active
 28 13 member holding the highest grade in the rank of fire fighter,
 28 14 for a child of a deceased member of a fire department, or
 28 15 holding the highest grade in the rank of police patrol
 28 16 officer, for a child of a deceased member of a police
 28 17 department of the system, as reported by the actuary.
 28 18    Sec. 41.  Section 411.6, subsection 11, paragraph a, Code
 28 19 2001, is amended to read as follows:
 28 20    a.  To the spouse, equal to one-half the amount received by
 28 21 the deceased beneficiary, but in no instance less than twenty
 28 22 percent of the average monthly earnable compensation paid to
 28 23 an active member holding the highest grade in the rank of fire
 28 24 fighter, for a beneficiary of a deceased member of the fire
 28 25 department, or the highest grade in the rank of police patrol
 28 26 officer, for a beneficiary of a deceased member of a police
 28 27 department of the system, as determined by the actuary, and in
 28 28 addition a monthly pension equal to the monthly pension
 28 29 payable under subsection 9 of this section for each child; or
 28 30    Sec. 42.  Section 411.6, subsection 12, paragraph a, Code
 28 31 2001, is amended to read as follows:
 28 32    a.  On each July 1, the monthly pensions authorized in this
 28 33 section payable to retired members retired prior to that date
 28 34 and to beneficiaries entitled to a monthly pension prior to
 28 35 that date shall be adjusted as provided in this subsection.
 29  1 An amount equal to the sum of one and one-half percent of the
 29  2 monthly pension of each retired member and beneficiary and the
 29  3 applicable incremental amount shall be added to the monthly
 29  4 pension of each retired member and beneficiary.  The board of
 29  5 trustees shall may report to the general assembly every six
 29  6 years, by September 15 of that year, beginning with September
 29  7 15, 2001, at the board's discretion, on whether the provisions
 29  8 of this subsection continue to provide an equitable method for
 29  9 the annual readjustment of pensions payable under this
 29 10 chapter.
 29 11    Sec. 43.  Section 411.6, subsection 13, Code 2001, is
 29 12 amended to read as follows:
 29 13    13.  a.  REMARRIAGE OF SURVIVING SPOUSE.  Effective July 1,
 29 14 1990, for a member who died prior to July 1, 1988, if the
 29 15 member's surviving spouse remarried prior to July 1, 1988, the
 29 16 remarriage does not make the spouse ineligible under
 29 17 subsection 8, paragraph "c", subparagraphs (1) and (2), to
 29 18 receive benefits under subsections 8, 9, 11, and 12.
 29 19    b.  RECOMPUTATION OF BENEFIT – SURVIVING SPOUSE.  A
 29 20 benefit payable under this chapter to a surviving spouse and
 29 21 to any surviving spouse who receives a division of the
 29 22 surviving spouse benefit pursuant to a marriage decree or
 29 23 marital property order under section 411.13 shall not be
 29 24 recomputed upon the death of any surviving spouse.
 29 25    Sec. 44.  Section 411.31, subsection 2, Code 2001, is
 29 26 amended to read as follows:
 29 27    2.  Commencing July 1, 1996, a vested member of an eligible
 29 28 retirement system who terminates employment covered by one
 29 29 eligible retirement system and, within sixty days one year,
 29 30 commences employment covered by the other eligible retirement
 29 31 system may elect to transfer the average accrued benefit
 29 32 earned from the former system to the current system.  The
 29 33 member shall file an application with the current system for
 29 34 transfer of the average accrued benefit within ninety days of
 29 35 the commencement of employment with the current system.
 30  1    Sec. 45.  EFFECTIVE DATE – RETROACTIVE APPLICABILITY.
 30  2    1.  The section of this Act amending section 411.6,
 30  3 subsection 5, paragraph "c", being deemed of immediate
 30  4 importance, takes effect upon enactment.
 30  5    2.  The section of this Act amending section 411.31, being
 30  6 deemed of immediate importance, takes effect upon enactment
 30  7 and is retroactively applicable to July 1, 1996.  
 30  8                           DIVISION IV
 30  9                   JUDICIAL RETIREMENT SYSTEM
 30 10    Sec. 46.  Section 602.9202, subsection 1, Code 2001, is
 30 11 amended to read as follows:
 30 12    1.  "Senior judge" means a supreme court judge, court of
 30 13 appeals judge, district court judge, or district associate
 30 14 judge, full-time associate juvenile judge, or full-time
 30 15 associate probate judge, who meets the requirements of section
 30 16 602.9203 and who has not been retired or removed from the
 30 17 roster of senior judges under section 602.9207 or 602.9208.
 30 18    Sec. 47.  Section 602.9203, subsection 1, Code 2001, is
 30 19 amended to read as follows:
 30 20    1.  A supreme court judge, court of appeals judge, district
 30 21 judge, or district associate judge, full-time associate
 30 22 juvenile judge, or full-time associate probate judge, who
 30 23 qualifies under subsection 2 may become a senior judge by
 30 24 filing with the clerk of the supreme court a written election
 30 25 in the form specified by the court administrator.  The
 30 26 election shall be filed within six months of the date of
 30 27 retirement.  
 30 28                           EXPLANATION
 30 29    This bill makes numerous changes to public retirement
 30 30 systems, including the public safety peace officers'
 30 31 retirement, accident, and disability system, the Iowa public
 30 32 employees' retirement system, the statewide fire and police
 30 33 retirement system, and the judicial retirement system.  The
 30 34 bill may include a state mandate as defined in Code section
 30 35 25B.3.  The state mandate funding requirement in Code section
 31  1 25B.2, however, does not apply to public employee retirement
 31  2 systems.  The changes to each public retirement system are as
 31  3 follows:
 31  4    PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
 31  5 DISABILITY SYSTEM (PORS)
 31  6    Code section 80.36 is amended to provide that a person
 31  7 shall not be employed as a peace officer in the department of
 31  8 public safety once the person reaches 65 years of age.  Under
 31  9 current law, the maximum age for such a peace officer is 65
 31 10 years of age.
 31 11    Code section 97A.6, subsection 6, is amended to provide
 31 12 that a member retiring under accidental disability prior to
 31 13 age 55 can receive credit for years of service over 22 years
 31 14 of service.  This amendment takes effect upon enactment and is
 31 15 retroactively applicable to July 1, 1998.
 31 16    New Code section 97A.14A permits the system to maintain an
 31 17 action to recover benefits paid when the actions of a third
 31 18 party resulted in benefits being payable under the retirement
 31 19 system based on an injury to or death of a member occurring on
 31 20 or after July 1, 2002.  The Code section provides that the
 31 21 system is entitled to be indemnified out of any recovery from
 31 22 an action maintained by the member, the member's dependent, or
 31 23 the trustee of the dependent against a liable third party for
 31 24 benefits already paid by the system and is also entitled to a
 31 25 lien for benefits the system is liable for.  The new Code
 31 26 section provides that if the member, the member's dependent,
 31 27 or the trustee of the dependent fails to bring an action
 31 28 against a liable third party within 90 days after the system
 31 29 so requests, the system may maintain an action and be entitled
 31 30 to receive an amount representing benefits paid and benefits
 31 31 that will be paid to the member until the member reaches 55
 31 32 years of age from any recovery resulting from the action.  The
 31 33 new Code section provides that the system and the member or
 31 34 member's representative must consent to a settlement entered
 31 35 into by the other and the liable third party and if no consent
 32  1 is provided, the workers' compensation commissioner will
 32  2 determine if consent is to be granted to the settlement.
 32  3    Code section 97A.17 is amended to extend the time deadline
 32  4 from 60 days to one year by which a member of PORS can
 32  5 commence working under the other retirement system after
 32  6 terminating employment under the former system and still
 32  7 permit the benefit earned under the former retirement system
 32  8 to be transferred to the current retirement system.  A
 32  9 corresponding change to the statewide fire and police
 32 10 retirement system in Code section 411.31 is also made by this
 32 11 bill.  This change takes effect upon enactment and is
 32 12 retroactively applicable to July 1, 1996.
 32 13    IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
 32 14    Code section 97B.1A, subsection 8, paragraph "a", is
 32 15 amended to provide that only part-time elected officials who
 32 16 have optional coverage can stop IPERS coverage, terminate all
 32 17 other covered employment, and begin an IPERS retirement
 32 18 allowance without terminating the elected position.
 32 19    Code section 97B.1A, subsection 8, paragraph "b",
 32 20 subparagraph (2), is amended to provide that only county
 32 21 medical examiners and deputy county medical examiners who are
 32 22 not full-time county employees are not considered employees
 32 23 covered by IPERS.  This provision takes effect upon enactment
 32 24 and is retroactively applicable to January 1, 1995.
 32 25    Code section 97B.1A, subsection 8, paragraph "b", is
 32 26 amended by adding a new subparagraph excluding employees of
 32 27 the Iowa student loan liquidity corporation from coverage
 32 28 under IPERS.
 32 29    Code section 97B.1A, subsection 24, paragraphs "a" and "c",
 32 30 are amended to delay the date for changing the method of
 32 31 determining a member's three-year average covered wage to a
 32 32 calculation based on the member's highest twelve consecutive
 32 33 quarters of service from July 1, 2003, to July 1, 2005.
 32 34    Code section 97B.15 is amended to provide that IPERS is
 32 35 specifically required to adopt rules consistent with the
 33  1 mandates and requirements of state law.
 33  2    Code section 97B.17 is amended to provide that confidential
 33  3 records of IPERS can be released to IPERS employers, the
 33  4 legislative fiscal bureau, the department of revenue and
 33  5 finance, the department of personnel, or the department of
 33  6 management to assist the requestor in the performance of the
 33  7 requestor's duties.  The entity requesting the records is
 33  8 required to provide reasons to IPERS for requesting the
 33  9 release and the entity is required to otherwise protect the
 33 10 confidentiality of the records.  Penalties apply to the
 33 11 requestor for not protecting the confidentiality of the
 33 12 records.
 33 13    Code section 97B.44, concerning the designation of a
 33 14 beneficiary for IPERS death benefits, is amended to permit a
 33 15 member who cannot locate the member's spouse to designate, or
 33 16 change the designation of, the member's beneficiary without
 33 17 the member's spouse consent.
 33 18    Code section 97B.48, subsection 3, is amended to provide
 33 19 that IPERS is only required to notify members who attain the
 33 20 age of 70 that they can continue working and receive a
 33 21 retirement allowance if IPERS has an address for that member.
 33 22    Code section 97B.48A, subsection 1, is amended to increase
 33 23 the amount that an IPERS member who has a bona fide retirement
 33 24 and is under 65 years of age can earn in public employment
 33 25 covered by IPERS from $14,000 to $40,000 and still continue to
 33 26 receive the member's retirement allowance without a reduction.
 33 27 Current law and the bill provide that an IPERS member
 33 28 receiving a retirement allowance who is under age 65 will have
 33 29 the member's IPERS retirement allowance reduced by 50 cents
 33 30 for each dollar the member earns in a calendar year in
 33 31 employment covered by IPERS over the earnings limit
 33 32 established in Code section 97B.48A.
 33 33    Code section 97B.49B, subsection 1, paragraph "e",
 33 34 subparagraph (1), is amended by adding a county conservation
 33 35 peace officer as designated by a county conservation board as
 34  1 a member of a protection occupation for purposes of
 34  2 calculating the member's retirement under IPERS.
 34  3    Code section 97B.49B is amended to provide that a member in
 34  4 a protection occupation who has 22 or more years of service
 34  5 can use wages from all IPERS covered employment, not just for
 34  6 wages in a protection occupation, in determining the member's
 34  7 three-year average covered wage if at least 75 percent of the
 34  8 total wages comes from wages in a protection occupation.
 34  9    Code section 97B.49C is amended to provide that a member in
 34 10 the sheriff's category who has 22 or more years of service can
 34 11 use wages from all IPERS covered employment, not just for
 34 12 wages in the sheriff's category, in determining the member's
 34 13 three-year average covered wage if at least 75 percent of the
 34 14 total wages comes from wages in the sheriff's category.
 34 15    Code section 97B.49F, subsection 2, concerning the
 34 16 favorable experience dividend, is amended to provide that a
 34 17 beneficiary who receives a monthly allowance after the death
 34 18 of an active member will qualify for favorable experience
 34 19 dividend payments in the same manner as IPERS retirees and
 34 20 beneficiaries of retirees.
 34 21    Code section 97B.51, subsection 1, concerning benefit
 34 22 options upon retirement, is amended to permit a member who
 34 23 cannot locate the member's spouse from selecting a benefit
 34 24 option without the member's spouse acknowledgement.
 34 25    Code section 97B.51, subsection 1, paragraph "a", is
 34 26 amended to provide that if a member selects the IPERS option
 34 27 under this paragraph, and a death benefit amount is selected,
 34 28 the death benefit amount cannot be changed after monthly
 34 29 benefits begin.
 34 30    Code section 97B.51, subsection 1, is amended by adding a
 34 31 new optional allowance upon retirement for special service
 34 32 members of IPERS.  New paragraph "f" provides that a member
 34 33 retiring under Code section 97B.49B or 97B.49C can receive an
 34 34 increase in the member's monthly allowance upon retirement
 34 35 until the member reaches the age when the member can receive a
 35  1 reduced social security benefit (now age 62) equal to the
 35  2 social security benefit the member could receive upon reaching
 35  3 that age.  Upon reaching that age (62), the member's
 35  4 retirement allowance will be reduced as determined by the
 35  5 IPERS actuary.  This modified monthly allowance applies only
 35  6 to the optional allowance which provides for a lifetime
 35  7 annuity for the member without a death benefit.
 35  8    Current Code section 97B.52, subsection 2, which
 35  9 establishes a $100,000 line of duty death benefit for a member
 35 10 who dies while in special service, is made retroactively
 35 11 applicable to January 1, 1992.
 35 12    Code section 97B.52, subsection 4, is amended to provide
 35 13 that interest is payable only on death benefits where the
 35 14 member died prior to the member receiving a retirement
 35 15 allowance.
 35 16    Code section 97B.53, subsection 4, concerning refund
 35 17 options once a member terminates employment, is amended to
 35 18 provide that a member is considered to have terminated
 35 19 employment if the member does not return to covered employment
 35 20 for 30 days.  Under current law, a member is considered to
 35 21 have terminated employment if they do not return to covered
 35 22 employment for four months.
 35 23    Code section 97B.53B, concerning rollovers of members'
 35 24 accounts, is amended to provide that an eligible retirement
 35 25 plan which is eligible for a rollover includes an annuity
 35 26 contract as provided in Internal Revenue Code section 403(b)
 35 27 and a plan under Internal Revenue Code section 457(b).  In
 35 28 addition, the change provides that an eligible rollover
 35 29 distribution can be made to certain individual retirement
 35 30 accounts or defined contribution plans.  The amendment also
 35 31 eliminates the dollar thresholds of $200 and $500 for
 35 32 determining whether certain distributions or rollovers are
 35 33 permitted by this section.  The amendment to this section
 35 34 takes effect upon enactment and is retroactively applicable to
 35 35 January 1, 2002.
 36  1    New Code section 97B.80C is established which permits a
 36  2 member of IPERS to purchase additional service credit under
 36  3 IPERS for both qualified and nonqualified service.  "Qualified
 36  4 service" is defined as service with a governmental employer,
 36  5 an association representing employees of the government, and
 36  6 an educational organization which provides elementary or
 36  7 secondary education, in which the member does not receive a
 36  8 retirement benefit for that service.  "Nonqualified service"
 36  9 is defined by the bill to include all other kinds of service
 36 10 not defined as qualified service.  The bill provides a member
 36 11 must be a vested or retired member under IPERS with five years
 36 12 of wages in order to purchase service credit for nonqualified
 36 13 service and the purchase is limited to a maximum of five
 36 14 years.  The bill provides that a purchase of qualified service
 36 15 by a member is subject only to the limits provided under the
 36 16 federal Internal Revenue Code.  The bill provides that a
 36 17 purchase of service under this new section shall be the full
 36 18 actuarial cost of the additional service.  The bill also
 36 19 provides that the purchase of service under this new section
 36 20 is limited by Internal Revenue Code requirements.
 36 21    Code section 97B.82, concerning the purchase of IPERS
 36 22 service credit, with a direct rollover, is amended to allow
 36 23 the purchase of service credit from either a direct rollover,
 36 24 or a direct transfer.  The bill defines what retirement plans
 36 25 are eligible for a purchase of service credit by a direct
 36 26 rollover.  In addition, the bill describes the process of a
 36 27 direct transfer purchase of credit and describes that a direct
 36 28 transfer can be made from either an annuity contract as
 36 29 provided in Internal Revenue Code section 403(b) or a plan
 36 30 under Internal Revenue Code section 457(b).
 36 31    STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 36 32    Code sections 411.1 and 411.6, subsections 3 and 5, are
 36 33 amended to provide that a member must be in good standing in
 36 34 order to apply for and receive an ordinary disability benefit
 36 35 or an accidental disability benefit.  The bill defines a
 37  1 "member in good standing" as a member who is not subject to
 37  2 removal from their position by the employing city or is not
 37  3 the subject of an investigation that might lead to removal.
 37  4 The bill provides that the board of trustees can waive the
 37  5 member in good standing requirement for good cause.
 37  6    Code section 411.6, subsection 7, is amended to provide
 37  7 that the contribution applicable to a disabled member who
 37  8 returns to work is the rate applicable to all members of the
 37  9 system.
 37 10    Code section 411.6, subsections 8, 9, and 11, are amended
 37 11 to change the method of calculating the minimum spousal and
 37 12 surviving child death benefit.  The bill provides that the
 37 13 benefit is calculated based upon the average monthly earnable
 37 14 compensation paid to an active member of the system instead of
 37 15 the monthly compensation earned by an active member holding
 37 16 the highest grade as a fire fighter, or a police patrol
 37 17 officer, depending on whether the deceased member was a fire
 37 18 fighter or police patrol officer.
 37 19    Code section 411.6, subsection 9, paragraph "b", is amended
 37 20 to modify who is entitled to receive an accidental death
 37 21 benefit.  The bill provides that an accidental death benefit
 37 22 shall be paid to the member's designated beneficiary.  The
 37 23 bill provides that if the designated beneficiary is the
 37 24 member's spouse, child, or parent, the benefit payable shall
 37 25 be the same as provided under current law if the spouse,
 37 26 child, or parent is entitled to the death benefit.  If the
 37 27 member does not designate a beneficiary or the beneficiary
 37 28 predeceases the member, the accidental death benefit shall be
 37 29 payable under current law.
 37 30    Code section 411.6, subsection 12, is amended to eliminate
 37 31 the requirement that the board shall submit a report to the
 37 32 legislature every six years, beginning September 2001,
 37 33 concerning the operation of the system's escalation program
 37 34 which provides increased benefits following retirement.
 37 35    Code section 411.6, subsection 13, is amended to provide
 38  1 that a benefit payable under this chapter to a surviving
 38  2 spouse and to any surviving spouse who receives a portion of
 38  3 the benefit pursuant to a marriage decree or marital property
 38  4 order shall not be recomputed upon the death of any surviving
 38  5 spouse.
 38  6    Code section 411.31 is amended to extend the time deadline
 38  7 from 60 days to one year by which a member of the statewide
 38  8 fire and police retirement system can commence working under
 38  9 the other retirement system after terminating employment under
 38 10 the former system and still permit the benefit earned under
 38 11 the former retirement system to be transferred to the current
 38 12 retirement system.  A corresponding change to PORS in Code
 38 13 section 97A.17 is also made by this bill.  This change takes
 38 14 effect upon enactment and is retroactively applicable to July
 38 15 1, 1996.
 38 16    JUDICIAL RETIREMENT SYSTEM
 38 17    Code sections 602.9202 and 602.9203 are amended to provide
 38 18 that full-time associate juvenile judges and full-time
 38 19 associate probate judges can be senior judges under the
 38 20 judicial retirement system.  Both full-time associate juvenile
 38 21 judges and full-time associate probate judges are currently
 38 22 included within the judicial retirement system.  
 38 23 LSB 6566HC 79
 38 24 ec/pj/5.2
     

Text: HSB00669                          Text: HSB00671
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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