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PAG LIN 1 1 DIVISION I 1 2 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, 1 3 ACCIDENT, AND DISABILITY SYSTEM 1 4 Section 1. Section 97A.5, subsection 1, Code 1999, is 1 5 amended to read as follows: 1 6 1. BOARD OF TRUSTEES. A board of trustees of the Iowa 1 7 department of public safety peace officers' retirement, 1 8 accident, and disability system is created. The general 1 9 responsibility for the proper operation of the system is 1 10 vested in the board of trustees. The board of trustees is 1 11 constituted as follows: The commissioner of public safety, 1 12 who is chairperson of the board, the treasurer of state,and1 13 an actively engaged member of the system, to be chosen by 1 14 secret ballot by the actively engaged members of the system, a 1 15 retired member of the system, to be chosen by secret ballot by 1 16 the retired members of the system, and a person appointed by 1 17 the governor. The person appointed by the governor shall be 1 18 an executive of a domestic life insurance company, an 1 19 executive of a state or national bank operating within the 1 20 state of Iowa, or an executive in the financial services 1 21 industry, and shall be subject to confirmation by the senate. 1 22 The members of the system and the person appointed by the 1 23 governor shall serve for a term of two years. 1 24 Sec. 2. Section 97A.5, subsection 2, Code 1999, is amended 1 25 to read as follows: 1 26 2. VOTING. Each trustee shall be entitled to one vote on 1 27 said board andtwothree concurring votes shall be necessary 1 28 for a decision by the trustees on any question at any meeting 1 29 of said board. 1 30 Sec. 3. Section 97A.6, subsection 2, Code 1999, is amended 1 31 to read as follows: 1 32 2. Allowance on service retirement. 1 33 a. Upon retirement from service prior to July 1, 1990, a 1 34 member shall receive a service retirement allowance which 1 35 shall consist of a pension which equals fifty percent of the 2 1 member's average final compensation. 2 2 b. Upon retirement from service on or after July 1, 1990, 2 3 but before July 1, 1992, a member shall receive a service 2 4 retirement allowance which shall consist of a pension which 2 5 equals fifty-four percent of the member's average final 2 6 compensation. 2 7 c. Commencing July 1, 1992, but before July 1, 2000, the 2 8 board of trustees shall increase the percentage multiplier of 2 9 the member's average final compensation by an additional two 2 10 percent each July 1 until reaching sixty percent of the 2 11 member's average final compensation. 2 12 d. Upon retirement from service on or after July 1, 2000, 2 13 a member shall receive a service retirement allowance which 2 14 shall consist of a pension which equals sixty and one-half 2 15 percent of the member's average final compensation. 2 16d.e. Commencing July 1, 1990, if the member has completed 2 17 more than twenty-two years of creditable service, the service 2 18 retirement allowance shall consist of a pension which equals 2 19 the amount provided in paragraphs "b"and, "c", or "d", plus 2 20 an additional percentage as set forth below: 2 21 (1) For a member who terminates service, other than by 2 22 death or disability, on or after July 1, 1990, but before July 2 23 1, 1991, and who does not withdraw the member's contributions 2 24 pursuant to section 97A.16, upon the member's retirement there 2 25 shall be added three-tenths percent of the member's average 2 26 final compensation for each year of service over twenty-two 2 27 years, excluding years of service after the member's fifty- 2 28 fifth birthday. However, this subparagraph does not apply to 2 29 more than eight additional years of service. 2 30 (2) For a member who terminates service, other than by 2 31 death or disability, on or after July 1, 1991, but before 2 32 October 16, 1992, and who does not withdraw the member's 2 33 contributions pursuant to section 97A.16, upon the member's 2 34 retirement there shall be added six-tenths percent of the 2 35 member's average final compensation for each year of service 3 1 over twenty-two years, excluding years of service after the 3 2 member's fifty-fifth birthday. However, this subparagraph 3 3 does not apply to more than eight additional years of service. 3 4 (3) For a member who terminates service, other than by 3 5 death or disability, on or after October 16, 1992, but before 3 6 July 1, 1996, and who does not withdraw the member's 3 7 contributions pursuant to section 97A.16, upon the member's 3 8 retirement there shall be added six-tenths percent of the 3 9 member's average final compensation for each year of service 3 10 over twenty-two years. However, this subparagraph does not 3 11 apply to more than eight additional years of service. 3 12 (4) For a member who terminates service, other than by 3 13 death or disability, on or after July 1, 1996, but before July 3 14 1, 1998, and who does not withdraw the member's contributions 3 15 pursuant to section 97A.16, upon the member's retirement there 3 16 shall be added one and one-half percent of the member's 3 17 average final compensation for each year of service over 3 18 twenty-two years. However, this subparagraph does not apply 3 19 to more than eight additional years of service. 3 20 (5) For a member who terminates service, other than by 3 21 death or disability, on or after July 1, 1998, but before July 3 22 1, 2000, and who does not withdraw the member's contributions 3 23 pursuant to section 97A.16, upon the member's retirement there 3 24 shall be added one and one-half percent of the member's 3 25 average final compensation for each year of service over 3 26 twenty-two years. However, this subparagraph does not apply 3 27 to more than ten additional years of service. 3 28 (6) For a member who terminates service, other than by 3 29 death or disability, on or after July 1, 2000, and who does 3 30 not withdraw the member's contributions pursuant to section 3 31 97A.16, upon the member's retirement there shall be added two 3 32 and three-fourths percent of the member's average final 3 33 compensation for each year of service over twenty-two years. 3 34 However, this subparagraph does not apply to more than ten 3 35 additional years of service. 4 1 Sec. 4. Section 97A.6, subsection 8, paragraph b, 4 2 unnumbered paragraph 1, Code 1999, is amended to read as 4 3 follows: 4 4 In lieu of the payment specified in paragraph "a", a 4 5 beneficiary meeting the qualifications of paragraph "c" may 4 6 elect to receive a monthly pension equal to one-twelfth of 4 7 forty percent of the average final compensation of the member, 4 8 but not less than an amount equal totwentytwenty-five 4 9 percent of the monthly earnable compensation paid to an active 4 10 member having the rank of senior patrol officer of the Iowa 4 11 state patrol if the member was in service at the time of 4 12 death. For a member not in service at the time of death, the 4 13 pension shall be reduced as provided in subsection 1, 4 14 paragraph "b". 4 15 Sec. 5. Section 97A.6, subsection 14, paragraph a, Code 4 16 1999, is amended to read as follows: 4 17 a. Effective July 1, 1980, and on each July 1 thereafter, 4 18 the monthly pensions authorized in this section payable to 4 19 retired members and to beneficiaries, except children of a 4 20 deceased member, shall be adjusted as provided in this 4 21 paragraph. The monthly pension of each retired member and 4 22 each beneficiary shall be adjusted by adding to that monthly 4 23 pension an amount equal to the amounts determined in 4 24 subparagraphs (1) and (2). The adjusted monthly pension of a 4 25 retired member shall not be less than the amount which was 4 26 paid at the time of the member's retirement. 4 27 (1) An amount equal to thefollowing percentages of the4 28 difference between the monthly earnable compensation payable 4 29 to an active member of the department, of the same rank and 4 30 position on the salary scale as was held by the retired or 4 31 deceased member at the time of the member's retirement or 4 32 death, for July of the preceding year and the monthly earnable 4 33 compensation payable to an active member of the department of 4 34 the same rank and position on the salary scale for July of the 4 35 year just beginningshall be added to the monthly pension of5 1each retired member and each beneficiary as followsmultiplied 5 2 by the following applicable percentage: 5 3(1)(a)ThirtyForty percent for members receiving a 5 4 service retirement allowance and for beneficiaries receiving a 5 5 pension under subsection 9 of this section. 5 6(2)(b)ThirtyForty percent for members with five or more 5 7 years of membership service who are receiving an ordinary 5 8 disability retirement allowance. 5 9(3)(c)FifteenTwenty-four percent for members with less 5 10 than five years of membership service who are receiving an 5 11 ordinary disability retirement allowance, and for 5 12 beneficiaries receiving a pension under subsection 8 of this 5 13 section. 5 14(4)(d)Thirty-three and one-thirdForty percent for 5 15 members receiving an accidental disability allowance. 5 16The adjusted monthly pension shall not be less than the5 17amount which was paid at the time of the member's retirement5 18or death.5 19 The amount added to the monthly pension of a surviving 5 20 spouse receiving a pension under subsection 12, paragraph "a", 5 21 of this section shall be equal to one-half the amount that 5 22 would have been added to the monthly pension of the retired 5 23 member under this subparagraph. 5 24 (2) The following applicable amount determined as follows: 5 25 (a) Fifteen dollars where the member's retirement date was 5 26 less than five years prior to the effective date of the 5 27 adjustment. 5 28 (b) Twenty dollars where the member's retirement date was 5 29 at least five years, but less than ten years, prior to the 5 30 effective date of the adjustment. 5 31 (c) Twenty-five dollars where the member's retirement date 5 32 was at least ten years, but less than fifteen years, prior to 5 33 the effective date of the adjustment. 5 34 (d) Thirty dollars where the member's retirement date was 5 35 at least fifteen years, but less than twenty years, prior to 6 1 the effective date of the adjustment. 6 2 (e) Thirty-five dollars where the member's retirement date 6 3 was at least twenty years prior to the effective date of the 6 4 adjustment. 6 5 As of the first of July of each year, the monthly pension 6 6 payable to each surviving child under the provisions of 6 7 subsections 8, 9, and 12 of this section shall be adjusted to 6 8 equal six percent of the monthly earnable compensation payable 6 9 on that July 1 to an active member having the rank of senior 6 10 patrol officer of the Iowa state patrol. 6 11 Sec. 6. Section 97A.6, Code 1999, is amended by adding the 6 12 following new subsection: 6 13 NEW SUBSECTION. 16. LINE OF DUTY DEATH BENEFIT. 6 14 a. If, upon the receipt of evidence and proof that the 6 15 death of a member in service was the direct and proximate 6 16 result of a traumatic personal injury incurred in the line of 6 17 duty, the board of trustees decides that death was so caused, 6 18 there shall be paid, to a person authorized to receive an 6 19 accidental death benefit as provided in subsection 9, the 6 20 amount of one hundred thousand dollars, which shall be payable 6 21 in a lump sum. 6 22 b. A line of duty death benefit shall not be payable under 6 23 this subsection if any of the following applies: 6 24 (1) The death resulted from stress, strain, occupational 6 25 illness, or a chronic, progressive, or congenital illness, 6 26 including, but not limited to, a disease of the heart, lungs, 6 27 or respiratory system, unless a traumatic personal injury was 6 28 a substantial contributing factor to the member's death. 6 29 (2) The death was caused by the intentional misconduct of 6 30 the member or by the member's intent to cause the member's own 6 31 death. 6 32 (3) The member was voluntarily intoxicated at the time of 6 33 death. 6 34 (4) The member was performing the member's duties in a 6 35 grossly negligent manner at the time of death. 7 1 (5) An individual who would otherwise be entitled to a 7 2 benefit under this subsection was, through the individual's 7 3 actions, a substantial contributing factor to the member's 7 4 death. 7 5 Sec. 7. Section 97A.8, subsection 1, paragraph b, Code 7 6 1999, is amended to read as follows: 7 7 b. On the basis of the rate of interest and of the 7 8 mortality, interest, and other tables adopted by the board of 7 9 trustees, the board of trustees, upon the advice of the 7 10 actuary hired by the board for that purpose, shall make each 7 11 valuation required by this chapter and shall immediately after 7 12 making such valuation, determine the "normal contribution 7 13 rate". The normal contribution rate shall be the rate percent 7 14 of the earnable compensation of all members obtained by 7 15 deducting from the total liabilities of the fund the sum of 7 16 the amount of the funds in hand to the credit of the fund and 7 17 dividing the remainder by one percent of the present value of 7 18 the prospective future compensation of all members as computed 7 19 on the basis of the rate of interest and of mortality and 7 20 service tables adopted by the board of trustees, all reduced 7 21 by the employee contribution made pursuant to this subsection. 7 22 However, the normal rate of contribution shall not be less 7 23 than seventeen percent. The normal rate of contribution shall 7 24 be determined by the board of trustees after each valuation. 7 25 To assist in determining the normal rate of contribution, the 7 26 board of trustees may adopt a smoothing method for valuing the 7 27 assets of the system. The smoothing method is designed to 7 28 reduce changes in the normal contribution rate which could 7 29 result from fluctuations in the market value of the assets of 7 30 the system. 7 31 Sec. 8. Section 97A.8, subsection 1, paragraph c, 7 32 unnumbered paragraph 2, Code 1999, is amended by striking the 7 33 unnumbered paragraph. 7 34 Sec. 9. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 7 35 Section 4 of this Act, amending section 97A.6, subsection 8, 8 1 paragraph "b", being deemed of immediate importance, takes 8 2 effect upon enactment and is retroactively applicable to July 8 3 1, 1996, and is applicable on and after that date. 8 4 DIVISION II 8 5 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 8 6 Sec. 10. Section 97B.1A, Code 1999, is amended by adding 8 7 the following new subsection: 8 8 NEW SUBSECTION. 2A. "Accumulated employer contributions" 8 9 means an amount equal to the total obtained as of any date, by 8 10 accumulating each individual contribution by the employer for 8 11 the member with interest plus interest dividends as provided 8 12 in section 97B.70, for all completed calendar years and for 8 13 any completed calendar year for which the interest dividend 8 14 has not been declared and for completed months of partially 8 15 completed calendar years, compounded as provided in section 8 16 97B.70. 8 17 Sec. 11. Section 97B.1A, subsection 8, paragraph a, 8 18 subparagraph (1), Code 1999, is amended to read as follows: 8 19 (1) Elective officials in positions for which the 8 20 compensation is on a fee basis, elective officials of school 8 21 districts, elective officials of townships, and elective 8 22 officials of other political subdivisions who are in part-time 8 23 positions. An elective official covered under this chapter 8 24 may terminate membership under this chapter by informing the 8 25 department in writing of the expiration of the member's term 8 26 of office or by informing the department of the member's 8 27 intent to terminate membership for employment as an elective 8 28 official and establishing that the member has a bona fide 8 29 termination of employment from all employment covered under 8 30 this chapter other than as an elective official and that the 8 31 member has filed a completed application for benefits form 8 32 with the department. A county attorney is an employee for 8 33 purposes of this chapter whether that county attorney is 8 34 employed on a full-time or part-time basis. 8 35 Sec. 12. Section 97B.1A, subsection 8, paragraph a, Code 9 1 1999, is amended by adding the following new subparagraph: 9 2 NEW SUBPARAGRAPH. (12) Persons employed by a municipal 9 3 water utility or waterworks that has established a pension and 9 4 annuity retirement system for its employees pursuant to 9 5 chapter 412. 9 6 Sec. 13. Section 97B.1A, subsection 8, paragraph b, 9 7 subparagraph (3), Code 1999, is amended to read as follows: 9 8 (3) Employees hired for temporary employment of less than 9 9 six consecutive months or one thousand forty hours in a 9 10 calendar year. An employee who works for an employer for six 9 11 or more consecutive monthsin a calendar yearor who works for 9 12 an employer for more than one thousand forty hours in a 9 13 calendar year is not a temporary employee under this 9 14 subparagraph. Adjunct instructors are temporary employees for 9 15 the purposes of this chapter. As used in this section, unless 9 16 the context otherwise requires, "adjunct instructors" means 9 17 instructors employed by a community college or a university 9 18 governed by the state board of regents without a continuing 9 19 contract, whose teaching load does not exceed one-half time 9 20 for two full semesters or three full quarters per calendar 9 21 year. 9 22 Sec. 14. Section 97B.1A, Code 1999, is amended by adding 9 23 the following new subsection: 9 24 NEW SUBSECTION. 14A. "Member account" means the account 9 25 established for each member and includes the member's 9 26 accumulated contributions and the member's share of the 9 27 accumulated employer contributions as provided in section 9 28 97B.53. "Member account" does not mean the supplemental 9 29 account for active members. 9 30 Sec. 15. Section 97B.1A, Code 1999, is amended by adding 9 31 the following new subsection: 9 32 NEW SUBSECTION. 22A. "Supplemental account for active 9 33 members" or "supplemental account" means the account 9 34 established for each active member under section 97B.49H. 9 35 Sec. 16. Section 97B.1A, subsection 24, paragraph a, Code 10 1 1999, is amended to read as follows: 10 2 a. "Three-year average covered wage" means, for a member 10 3 who retires prior to July 1, 2003, a member's covered wages 10 4 averaged for the highest three years of the member's service, 10 5 except as otherwise provided in this subsection. The highest 10 6 three years of a member's covered wages shall be determined 10 7 using calendar years. However, if a member's final quarter of 10 8 a year of employment does not occur at the end of a calendar 10 9 year, the department may determine the wages for the third 10 10 year by computing the average quarter of all quarters from the 10 11 member's highest calendar year of covered wages not being used 10 12 in the selection of the two highest years and using the 10 13 computed average quarter for each quarter in the third year in 10 14 which no wages have been reported in combination with the 10 15 final quarter or quarters of the member's service to create a 10 16 full year. However, the department shall not use the member's 10 17 final quarter of wages if using that quarter would reduce the 10 18 member's three-year average covered wage. If the three-year 10 19 average covered wage of a member exceeds the highest maximum 10 20 covered wages in effect for a calendar year during the 10 21 member's period of service, the three-year average covered 10 22 wage of the member shall be reduced to the highest maximum 10 23 covered wages in effect during the member's period of service. 10 24 Notwithstanding any other provision of this paragraph to the 10 25 contrary, a member's wages for the third year as computed by 10 26 this paragraph shall not exceed, by more than three percent, 10 27 the member's highest actual calendar year of covered wages for 10 28 a member whose first month of entitlement is January 1999 or 10 29 later. 10 30 Sec. 17. Section 97B.1A, subsection 24, paragraph b, 10 31 subparagraph (4), Code 1999, is amended to read as follows: 10 32 (4) For a member who retires on or after January 1, 2000, 10 33 but before January 1,20032001, and whose three-year average 10 34 covered wage at the time of retirement exceedsfifty-five10 35 sixty-five thousand dollars, the member's covered wages 11 1 averaged for the highestsevensix years of the member's 11 2 service orfifty-fivesixty-five thousand dollars, whichever 11 3 is greater. 11 4 Sec. 18. Section 97B.1A, subsection 24, paragraph b, Code 11 5 1999, is amended by adding the following new subparagraph: 11 6 NEW SUBPARAGRAPH. (5) For a member who retires on or 11 7 after January 1, 2001, but before January 1, 2002, and whose 11 8 three-year average covered wage at the time of retirement 11 9 exceeds seventy-five thousand dollars, the member's covered 11 10 wages averaged for the highest six years of the member's 11 11 service or seventy-five thousand dollars, whichever is 11 12 greater. 11 13 Sec. 19. Section 97B.1A, subsection 24, Code 1999, is 11 14 amended by adding the following new paragraph: 11 15 NEW PARAGRAPH. c. "Three-year average covered wage" 11 16 means, for a member who retires on or after July 1, 2003, the 11 17 greater of the member's covered wages averaged for a member's 11 18 highest twelve consecutive quarters of service or the member's 11 19 covered wages averaged for a member's highest three calendar 11 20 years of service. The department shall adopt rules to 11 21 implement this paragraph in accordance with the requirements 11 22 of this chapter and the federal Internal Revenue Code. 11 23 Sec. 20. Section 97B.1A, subsection 26, paragraph a, Code 11 24 1999, is amended to read as follows: 11 25 a. (1) "Wages" means all remuneration for employment, 11 26 includingthe, but not limited to, any of the following: 11 27 (a) The cash value ofremuneration paid in a medium other11 28than cash, but not including the cash value of remuneration11 29paid in a medium other than cash aswage equivalents not 11 30 necessitated by the convenience of the employer. Theamount11 31agreed upon by the employer and employee for remuneration paid11 32in a medium other than cashfair market value of such wage 11 33 equivalents shall be reported to the department by the 11 34 employerand is conclusive of the value of the remuneration. 11 35"Wages" does not include special lump sum payments made as12 1payment for accrued sick leave or accrued vacation or payments12 2made as an incentive for early retirement or as payments made12 3upon dismissal, severance, or a special bonus payment.12 4 (b) The remuneration paid to an employee before employee- 12 5 paid contributions are made to plans qualified under sections 12 6 125, 129, 401, 403, 408, and 457 of the Internal Revenue Code. 12 7 In addition, wages includes amounts that can be received in 12 8 cash in lieu of employer-paid contributions to such plans, if 12 9 the election is uniformly available and is not limited to 12 10 highly compensated employees, as defined in section 414(q) of 12 11 the Internal Revenue Code. 12 12 (c)Wages forFor an elected officialmeans, other than a 12 13 member of the general assembly, the total compensation 12 14 received by the elected official, whether paid in the form of 12 15 per diem or annual salaryreceived by an elected official, 12 16 exclusive of expense and travel allowances. 12 17 (d)Wages forFor a member of the general assembly,means12 18 the total compensation received by a member of the general 12 19 assembly, whether paid in the form of per diem or annual 12 20 salary, exclusive of expense and travel allowances paid to a 12 21 member of the general assembly except as otherwise provided in 12 22 thisparagraphsubparagraph subdivision. Wages includes per 12 23 diem payments paid to members of the general assembly during 12 24 interim periods between sessions of the general assembly. 12 25 Wages also includes daily allowances to members of the general 12 26 assembly for nontravel expenses of office during a session of 12 27 the general assembly, but does not include the portion of the 12 28 daily allowance which exceeds the maximum established by law 12 29 for members from Polk county. 12 30 (e) Payments for compensatory time earned that are 12 31 received in lieu of taking regular work hours off and when 12 32 paid as a lump sum. However, "wages" does not include 12 33 payments made in a lump sum for compensatory time earned in 12 34 excess of two hundred forty hours per year. 12 35 (f) Employee contributions required under section 97B.11 13 1 and picked up by the employer under section 97B.11A. 13 2 (2) "Wages" does not include any of the following: 13 3 (a) The cash value of wage equivalents necessitated by the 13 4 convenience of the employer. 13 5 (b) Payments made for accrued sick leave or accrued 13 6 vacation leave that are not being used to replace regular work 13 7 hours, whether paid in a lump sum or in installments. 13 8 (c) Payments made as an incentive for early retirement or 13 9 as payment made upon dismissal or severance from employment, 13 10 or a special bonus payment intended as an early retirement 13 11 incentive, whether paid in a lump sum or in installments. 13 12 (d) Employer-paid contributions that cannot be received by 13 13 the employee in cash and that are made to, and any 13 14 distributions from, plans, programs, or arrangements qualified 13 15 under section 117, 120, 125, 129, 401, 403, 408, or 457 of the 13 16 Internal Revenue Code. 13 17 (e) Employer-paid contributions for coverage under, or 13 18 distributions from, an accident, health, or life insurance 13 19 plan, program, or arrangement. 13 20 (f) Workers' compensation and unemployment compensation 13 21 payments. 13 22 (g) Disability payments. 13 23 (h) Reimbursements of employee business expenses except 13 24 for those expenses included as wages for a member of the 13 25 general assembly. 13 26 (i) Payments for allowances made to an employee that are 13 27 not included in an employee's federal taxable income except 13 28 for those allowances included as wages for a member of the 13 29 general assembly. 13 30 (j) Payments of damages, attorney fees, interest, and 13 31 penalties made to satisfy a grievance or wage claim. 13 32 (k) Payments for services as an independent contractor. 13 33 (l) Payments made by an entity that is not an employer 13 34 under this chapter. 13 35 (m) Payments made in lieu of any employer-paid group 14 1 insurance coverage. 14 2 (n) Payments made for the difference between the costs of 14 3 single and family insurance coverage. 14 4 Sec. 21. Section 97B.5, Code 1999, is amended to read as 14 5 follows: 14 6 97B.5 STAFF. 14 7 Subject to other provisions of this chapter, the department 14 8 may employ personnel as necessary for the administration of 14 9 the system, including but not limited to a chief investment 14 10 officer and a chief benefits officer. The maximum number of 14 11 full-time equivalent employees specified by the general 14 12 assembly for the department for administration of the system 14 13 for a fiscal year shall not be reduced by any authority other 14 14 than the general assembly. The staff shall be appointed 14 15 pursuant to chapter 19A. The department shall not appoint or 14 16 employ a person who is an officer or committee member of a 14 17 political party organization or who holds or is a candidate 14 18 forana partisan elective public office. The department may 14 19 employ attorneys and contract with attorneys and legal firms 14 20 for the provision of legal counsel and advice in the 14 21 administration of this chapter and chapter 97C. The 14 22 department may execute contracts with investment advisors, 14 23 consultants, and managers outside state government in the 14 24 administration of this chapter. The department may delegate 14 25 to any person such authority as it deems reasonable and proper 14 26 for the effective administration of this chapter, and may bond 14 27 any person handling moneys or signing checks under this 14 28 chapter. 14 29 Sec. 22. Section 97B.9, unnumbered paragraph 1, Code 1999, 14 30 is amended to read as follows: 14 31Contributions unpaid on the date on which they are due and14 32payable as prescribed by the department,An employer shall 14 33bearbe charged the greater of ten dollars per occurrence or 14 34 interest at the combined interest and dividend rate required 14 35 under section 97B.70 for the applicable calendar year,15 1provided that thefor contributions unpaid on the date on 15 2 which they are due and payable as prescribed by the 15 3 department. The department mayprescribe fair and reasonable15 4regulations pursuant toadopt rules prescribing circumstances 15 5 for which the interest or charge shall not accrue with respect 15 6 to contributions required. Interest or charges collected 15 7 pursuant to this section shall be paid into the Iowa public 15 8 employees' retirement fund. 15 9 Sec. 23. Section 97B.9, subsection 4, Code 1999, is 15 10 amended to read as follows: 15 11 4. Regardless of any potentially applicable statute of 15 12 limitations, if the department finds that the employer or 15 13 employeeor employer, or both, have erroneously underpaid 15 14 contributions, theemployer shall pay the employer's share of15 15contributions and interest and the interest assessed to the15 16employee's share of contributionsdepartment shall notify the 15 17 employer and employee in writing of the total amount of the 15 18 underpayment, including interest, and the employer's and 15 19 employee's share of the underpayment. The department shall 15 20 collect from the employer the total amount of the 15 21 underpayment, including the employer's share, the employee's 15 22 share, and the interest assessed to both shares of the 15 23 underpayment, regardless of whether the employee has 15 24 reimbursed the employer for the employee's share of the 15 25 underpayment. The employee shall be obligated to pay only the 15 26 employee's share of the underpaid contributions, without 15 27 interest, to the employer, who shall then remit them to the15 28department. The employer may collect the employee's share of 15 29 underpaid contributions from the employee or the employee's 15 30 estate. The employer may collect the employee's share through 15 31 a deduction from the employee's wages, or by maintaining a 15 32 legal action against the employee or the employee's estate. 15 33 For purposes of section 1526 of the federal Taxpayer Relief 15 34 Act of 1997, eligible participants, as defined by section 15 35 1526, may make payments of contributions under this section 16 1 without regard to the limitations of section 415(c)(1) of the 16 2 federal Internal Revenue Code. 16 3 Sec. 24. Section 97B.11, unnumbered paragraph 2, Code 16 4 1999, is amended by striking the unnumbered paragraph. 16 5 Sec. 25. NEW SECTION. 97B.14A WAGE REPORTING. 16 6 An employer shall report wages of employees covered by this 16 7 chapter to the department in a manner and form as prescribed 16 8 by the department. If the wages reported by an employer 16 9 appear to be a distortion of the normal wage progression 16 10 pattern for an employee, the department may request that the 16 11 employer provide documentation indicating that the wages were 16 12 not misreported for the purposes of causing an increase in the 16 13 retirement allowance or other payments authorized to be made 16 14 by this chapter. If the department determines that the wages 16 15 of an employee were misreported, the employer shall prepare 16 16 and file wage adjustments allocating the wages to the proper 16 17 wage reporting period. 16 18 Sec. 26. Section 97B.17, subsection 2, Code 1999, is 16 19 amended to read as follows: 16 20 2. Records specifying amounts accumulated in members' 16 21activeaccounts and supplemental accounts. 16 22 Sec. 27. Section 97B.25, Code 1999, is amended to read as 16 23 follows: 16 24 97B.25 APPLICATIONS FOR BENEFITS. 16 25 A representative designated by the chief benefits officer 16 26 and referred to in this chapter as a retirement benefits 16 27specialistofficer shall promptly examine applications for 16 28 retirement benefits and on the basis of facts found shall 16 29 determine whether or not the claim is valid. If the claim is 16 30 valid, the retirement benefitsspecialistofficer shall send a 16 31 notification to the member stating the option the member has 16 32 selected pursuant tosections 97B.49A through 97B.49G, as16 33applicable, orsection 97B.51, the month with respect to which 16 34 benefits shall commence, and the monthly benefit amount 16 35 payable. If the claim is invalid, the retirement benefits 17 1specialistofficer shall promptly notify the applicant and any 17 2 other interested party of the decision and the reasons. A 17 3 retirement application shall not be amended or revoked by the 17 4 member once the first retirement allowance is paid. A 17 5 member's death during the first month of entitlement shall not 17 6 invalidate an approved application. 17 7 Sec. 28. Section 97B.42A, Code 1999, is amended by adding 17 8 the following new subsection: 17 9 NEW SUBSECTION. 3A. A person who is employed in a 17 10 position as an employee as defined in section 97B.1A, 17 11 subsection 8, paragraph "a", subparagraph (12), on July 1, 17 12 2000, and who has not elected out of coverage under this 17 13 chapter prior to that date, shall begin coverage under the 17 14 system on July 1, 2000, unless, on or before August 31, 2000, 17 15 the person files an application with appropriate documentation 17 16 to elect coverage under an alternative pension and annuity 17 17 retirement system established pursuant to chapter 412. If a 17 18 person elects coverage under the alternative pension and 17 19 annuity retirement system, the period of time from July 1, 17 20 2000, until the date the person's election of coverage is 17 21 effective shall not constitute service for purposes of 17 22 coverage under this chapter and a wage adjustment shall be 17 23 processed for the person based on any contributions collected 17 24 pursuant to this chapter during that period of time and shall 17 25 be credited pursuant to section 97B.10. A decision to elect 17 26 coverage under an alternative pension and annuity retirement 17 27 system established pursuant to chapter 412 under this 17 28 subsection is irrevocable upon approval from the department. 17 29 A person who becomes a member of the Iowa public employees' 17 30 retirement system pursuant to this subsection, and who has one 17 31 or more years of covered wages, may purchase credit, pursuant 17 32 to section 97B.73, for one or more quarters of service prior 17 33 to August 1, 2000, in which the person was employed in a 17 34 position as described by section 97B.1A, subsection 8, 17 35 paragraph "a", subparagraph (12), but was not a member of the 18 1 system. 18 2 Sec. 29. Section 97B.42A, subsection 4, Code 1999, is 18 3 amended to read as follows: 18 4 4. A person who becomes a member of the system pursuant to 18 5 subsection 3, or who is a member of the system, and who has 18 6 one or more years of covered wages, may purchase credit, 18 7 pursuant to section 97B.73, for one or more quarters of 18 8 service prior to January 1, 1999, in which the person was 18 9 employed in a position as described in section 97B.1A, 18 10 subsection 8, paragraph "a", but was not a member of the 18 11 system. 18 12 Sec. 30. Section 97B.44, Code 1999, is amended to read as 18 13 follows: 18 14 97B.44 BENEFICIARY. 18 15 Each member shall designate on a form to be furnished by 18 16 the department a beneficiary for death benefits payable under 18 17 this chapter on the death of the member. The designation may 18 18 be changed from time to time by the member by filing a new 18 19 designation with the department. A designation or change in 18 20 designation made by a member on or after July 1, 2000, shall 18 21 contain the written consent of the member's spouse, if 18 22 applicable. The designation of a beneficiary is not 18 23 applicable if the member receives a refund of all 18 24 contributions of the member. If a member who has received a 18 25 refund of contributions returns to employment, the member 18 26 shall file a new designation with the department. 18 27 If a member has not designated a beneficiary on a form 18 28 furnished by the department, or if there are no surviving 18 29 designated beneficiaries of a member, death benefits payable 18 30 under this chapter shall be paid to the member's estate. 18 31 Sec. 31. Section 97B.48, subsection 1, Code 1999, is 18 32 amended to read as follows: 18 33 1. Retirement allowances shall be paid monthly, except 18 34 that an allowance of less than six hundred dollars a year may, 18 35 at the member's option, be paid as a lump sum in an amount 19 1 equal to the sum of the member's and employer's accumulated 19 2 contributions and the retirement dividends standing to the 19 3 member's credit before December 31, 1966. Receipt of the 19 4 lump-sum payment by a member shall terminate any and all 19 5 entitlement for the period of service covered of the member 19 6 under this chapter and the member shall not be eligible to buy 19 7 back the period of service. 19 8 Sec. 32. Section 97B.48, subsection 3, Code 1999, is 19 9 amended to read as follows: 19 10 3. As of the first of the month in which a member attains 19 11 the age of seventy years, the department shall provide written 19 12 notification to the member that the member may commence 19 13 receiving a retirement allowance regardless of the member's 19 14 employment status. Prior to receiving a retirement allowance 19 15 pursuant to this subsection, a member shall acknowledge in 19 16 writing that the member was informed by the department of the 19 17 consequences of electing to receive a retirement allowance 19 18 pursuant to this subsection and that receipt of a retirement 19 19 allowance under this subsection is optional. Upon termination 19 20 from employment of a member receiving a retirement allowance 19 21 pursuant to this subsection, the member is entitled to have 19 22 the member's monthly retirement allowance recalculated using 19 23 the applicable formula for determining a retirement allowance 19 24 pursuant to sections 97B.49A through 97B.49G, as applicable, 19 25 in place at the time of the member's first month of 19 26 entitlement. 19 27 Sec. 33. Section 97B.48A, subsection 1, unnumbered 19 28 paragraph 1, Code 1999, is amended to read as follows: 19 29 If a member who has not reached the member's sixty-fifth 19 30 birthday and who has a bona fide retirement under this chapter 19 31 is in regular full-time employment during a calendar year, the 19 32 member's retirement allowance shall be reduced by fifty cents 19 33 for each dollar the member earns over the limit provided in 19 34 this subsection. However, employment is not full-time 19 35 employment until the member receives remuneration in an amount 20 1 in excess oftwelvefourteen thousand dollars for a calendar 20 2 year, or an amount equal to the amount of remuneration 20 3 permitted for a calendar year for persons under sixty-five 20 4 years of age before a reduction in federal social security 20 5 retirement benefits is required, whichever is higher. 20 6 Effective the first of the month in which a member attains the 20 7 age of sixty-five years, a retired member may receive a 20 8 retirement allowance without a reduction after return to 20 9 covered employment regardless of the amount of remuneration 20 10 received. 20 11 Sec. 34. Section 97B.48A, subsection 3, Code 1999, is 20 12 amended to read as follows: 20 13 3. Upon a retirement after reemployment, a retired member 20 14 may have the retired member's retirement allowance 20 15 redetermined under this section or section 97B.48,sections20 1697B.49A through 97B.49H,section 97B.50, or section 97B.51, 20 17 whichever is applicable, based upon the addition of credit for 20 18 the years of membership service of the employee after 20 19 reemployment, the covered wage during reemployment, and the 20 20 age of the employee after reemployment. The member shall 20 21 receive a single retirement allowance calculated from both 20 22 periods of membership service, one based on the initial 20 23 retirement and one based on the second retirement following 20 24 reemployment. If the total years of membership service and 20 25 prior service of a member who has been reemployed equals or 20 26 exceeds thirty, the years of membership service on which the 20 27 original retirement allowance was based may be reduced by a 20 28 fraction of the years of service equal to the number of years 20 29 by which the total years of membership service and prior 20 30 service exceeds thirty divided by thirty, if this reduction in 20 31 years of service will increase the total retirement allowance 20 32 of the member. The additional retirement allowance calculated 20 33 for the period of reemployment shall be added to the 20 34 retirement allowance calculated for the initial period of 20 35 membership service and prior service, adjusted as provided in 21 1 this subsection. The retirement allowance calculated for the 21 2 initial period of membership service and prior service shall 21 3 not be adjusted for any other factor than years of service. 21 4 The retired member shall not receive a retirement allowance 21 5 based upon more than a total of thirty years of service. 21 6 Effective July 1, 1998, a redetermination of a retirement 21 7 allowance as authorized by this subsection for a retired 21 8 member whose combined service exceeds the applicable years of 21 9 service for that member as provided in sections 97B.49A 21 10 through 97B.49G shall have the determination of the member's 21 11 reemployment benefit based upon the percentage multiplier as 21 12 determined for that member as provided in sections 97B.49A 21 13 through 97B.49G. 21 14 Sec. 35. Section 97B.48A, subsection 4, Code 1999, is 21 15 amended to read as follows: 21 16 4. The department shall pay to the member the accumulated 21 17 contributions of the member and all of the employer 21 18 contributions, plus interest plus interest dividends as 21 19 provided in section 97B.70, for all completed calendar years, 21 20 compounded as provided in section 97B.70, on the covered wages 21 21 earned by a retired member that are not used in the 21 22 recalculation of the retirement allowance of a member. A 21 23 payment of contributions to a member pursuant to this 21 24 subsection shall be considered a retirement payment and not a 21 25 refund and the member shall not be eligible to buy back the 21 26 period of reemployment service. 21 27 Sec. 36. Section 97B.49B, subsection 1, paragraph a, Code 21 28 1999, is amended to read as follows: 21 29 a. "Applicable percentage" means the greater of the 21 30 following percentages: 21 31 (1)sixtySixty percentor, for. 21 32 (2) For each active or inactive vested member retiring on 21 33 or after July 1, 1996, but before July 1, 2000, sixty percent 21 34 plus, if applicable, an additional one-fourth of one 21 35 percentage point for each additional calendar quarter of 22 1 eligible service beyond twenty-five years of service for the 22 2 member, not to exceed a total of five additional percentage 22 3 points. 22 4 (3) For each active or inactive vested member retiring on 22 5 or after July 1, 2000, but before July 1, 2001, sixty percent 22 6 plus, if applicable, an additional one-fourth of one 22 7 percentage point for each additional calendar quarter of 22 8 eligible service beyond twenty-four years of service for the 22 9 member, not to exceed a total of six additional percentage 22 10 points. 22 11 (4) For each active or inactive vested member retiring on 22 12 or after July 1, 2001, but before July 1, 2002, sixty percent 22 13 plus, if applicable, an additional one-fourth of one 22 14 percentage point for each additional calendar quarter of 22 15 eligible service beyond twenty-three years of service for the 22 16 member, not to exceed a total of seven additional percentage 22 17 points. 22 18 (5) For each active or inactive vested member retiring on 22 19 or after July 1, 2002, but before July 1, 2003, sixty percent 22 20 plus, if applicable, an additional one-fourth of one 22 21 percentage point for each additional calendar quarter of 22 22 eligible service beyond twenty-two years of service for the 22 23 member, not to exceed a total of eight additional percentage 22 24 points. 22 25 (6) For each active or inactive vested member retiring on 22 26 or after July 1, 2003, sixty percent plus, if applicable, an 22 27 additional three-eighths of one percentage point for each 22 28 additional calendar quarter of eligible service beyond twenty- 22 29 two years of service for the member, not to exceed a total of 22 30 twelve additional percentage points. 22 31 Sec. 37. Section 97B.49B, subsection 1, Code 1999, is 22 32 amended by adding the following new paragraph: 22 33 NEW PARAGRAPH. aa. "Applicable years of service" means 22 34 the following: 22 35 (1) For each active or inactive vested member retiring on 23 1 or after July 1, 1996, and before July 1, 2000, twenty-five. 23 2 (2) For each active or inactive vested member retiring on 23 3 or after July 1, 2000, and before July 1, 2001, twenty-four. 23 4 (3) For each active or inactive vested member retiring on 23 5 or after July 1, 2001, and before July 1, 2002, twenty-three. 23 6 (4) For each active or inactive vested member retiring on 23 7 or after July 1, 2002, twenty-two. 23 8 Sec. 38. Section 97B.49B, subsection 1, paragraph c, Code 23 9 1999, is amended to read as follows: 23 10 c. "Fraction of years of service" means a number, not to 23 11 exceed one, equal to the sum of the years of eligible service 23 12 in a protection occupation divided bytwenty-fivethe 23 13 applicable years of service for the member. 23 14 Sec. 39. Section 97B.49B, subsection 1, paragraph d, Code 23 15 1999, is amended by adding the following new subparagraph: 23 16 NEW SUBPARAGRAPH. (7) An employee covered by the merit 23 17 system as provided in chapter 19A whose primary duty is 23 18 providing airport security and who carries or is licensed to 23 19 carry a firearm while performing those duties. 23 20 Sec. 40. Section 97B.49D, subsection 1, paragraph b, Code 23 21 1999, is amended to read as follows: 23 22 b. One-twelfth of an amount equal to the applicable 23 23 percentage of the member's three-year average covered wage 23 24 multiplied by a fraction of years of service. The fraction of 23 25 years of service for purposes of this paragraph shall be the 23 26 actual years of service, not to exceedtwenty-fivethe 23 27 applicable years of service for the member as defined in 23 28 section 97B.49B, earned in a position described in section 23 29 97B.49B, for which special service contributions were made, 23 30 divided bytwenty-fivethe applicable years of service for the 23 31 member as defined in section 97B.49B. In calculating the 23 32 fractions of years of service under the paragraph, a member 23 33 shall not receive special service credit for years of service 23 34 for which the member and the member's employer did not make 23 35 the required special service contributions to the department. 24 1 Sec. 41. Section 97B.49F, subsection 1, paragraph b, 24 2 subparagraph (2), subparagraph subdivision (a), Code 1999, is 24 3 amended to read as follows: 24 4 (a) The percentage representingeighty percent ofthe 24 5 percentage increase in the consumer price index published in 24 6 the federal register by the federal department of labor, 24 7 bureau of labor statistics, that reflects the percentage 24 8 increase in the consumer price index for the twelve-month 24 9 period ending June 30 of the year that the dividend is to be 24 10 paid. 24 11 Sec. 42. Section 97B.49F, subsection 1, paragraph c, Code 24 12 1999, is amended to read as follows: 24 13 c. If a member eligible to receive a cost-of-living 24 14 dividend dies before November 1 of a year, a cost-of-living 24 15 dividend shall not be payable in November of that year in the 24 16 name of the member. If a member dies on or after November 1, 24 17 but before payment of a dividend is made in that month, the 24 18 full amount of the retirement dividend for that year shall be 24 19 paid in the member's name upon notification of the member's 24 20 death. 24 21 Sec. 43. Section 97B.49F, subsection 2, paragraph a, Code 24 22 1999, is amended to read as follows: 24 23 a. Commencing January 1, 1999, all members who retired on 24 24 or after July 1, 1990, and who have been retired for at least 24 25 one year as of the date the dividend is payable, or a 24 26 beneficiary or contingent annuitant of such a member who 24 27 receives a monthly benefit, shall be eligible to receive a 24 28 favorable experience dividend, payable on the last business 24 29 day in January of each year pursuant to the requirements of 24 30 this subsection. If the member, beneficiary, or contingent 24 31 annuitant eligible to receive a favorable experience dividend 24 32 dies before January 1 of a year, a favorable experience 24 33 dividend shall not be payable in January of that year in the 24 34 name of the member, beneficiary, or contingent annuitant. 24 35 However, if the member, beneficiary, or contingent annuitant 25 1 dies on or after January 1 but before the dividend is paid in 25 2 that month, the full amount of the dividend payable in that 25 3 month shall be paid in the name of the applicable member, 25 4 beneficiary, or contingent annuitant, upon notification of 25 5 death. 25 6 Sec. 44. Section 97B.49F, subsection 2, paragraph c, Code 25 7 1999, is amended by adding the following new subparagraph: 25 8 NEW SUBPARAGRAPH. (3A) Notwithstanding the provisions of 25 9 this paragraph to the contrary, moneys credited to the reserve 25 10 account in any applicable year shall not exceed an amount 25 11 which, if credited to the reserve account, would exceed an 25 12 amount that the system's actuary determines is sufficient to 25 13 pay the maximum favorable experience dividend for each of the 25 14 next following ten years, based on reasonable actuarial 25 15 assumptions. 25 16 Sec. 45. Section 97B.49F, subsection 2, paragraph d, Code 25 17 1999, is amended to read as follows: 25 18 d. The favorable experience dividend is calculated by 25 19 multiplying thetotal of themonthlybenefit payments of25 20 retirement allowance payable to the retiree, beneficiary, or 25 21 contingent annuitant for the previouscalendar yearDecember, 25 22 or such other month as determined by the department, by 25 23 twelve, and then multiplying that amount by the number of 25 24 complete years the member has been retired or would have been 25 25 retired if living as of the date the dividend is payable, and 25 26 by the applicable percentage. For purposes of this paragraph, 25 27 the applicable percentage is the percentage, not to exceed 25 28 three percent, that the department determines shall be applied 25 29 in calculating the favorable experience dividend if the 25 30 department determines that the reserve account is sufficiently 25 31 funded to make a distribution. In making its determination, 25 32 the department shall consider, but not be limited to, the 25 33 amounts credited to the reserve account, the distributions 25 34 from the reserve account made in previous years, the 25 35 likelihood of future credits to and distributions from the 26 1 reserve account, and the distributions paid under subsection 26 2 1. 26 3 Sec. 46. Section 97B.49G, Code 1999, is amended by adding 26 4 the following new subsection: 26 5 NEW SUBSECTION. 12. PROBATION AND PAROLE OFFICERS III – 26 6 JULY 1994 - JULY 1998. The department shall establish and 26 7 maintain additional contribution accounts for employees of 26 8 judicial district departments of correctional services who 26 9 were employed as parole officers III and probation officers 26 10 III during any portion of the period from July 1, 1994, 26 11 through June 30, 1998. A probation officer III or parole 26 12 officer III who made contributions to the retirement fund 26 13 during the period from July 1, 1994, through June 30, 1998, as 26 14 a member of a protection occupation shall have credited to an 26 15 additional contribution account for that probation or parole 26 16 officer an amount equal to the contributions made to the 26 17 retirement fund in excess of 3.7 percent of the probation or 26 18 parole officer's covered wages paid from July 1, 1994, through 26 19 June 30, 1998, plus interest at the applicable statutory 26 20 interest rates established in this chapter. Moneys deposited 26 21 in an additional contribution account established pursuant to 26 22 this section shall be payable in a lump sum to the probation 26 23 or parole officer at retirement or upon request for a refund 26 24 of moneys in the account. If the probation or parole officer 26 25 dies prior to receipt of moneys in the account, the 26 26 beneficiary designated by that probation or parole officer 26 27 shall receive a lump sum payment of moneys in the account. 26 28 The payment of moneys from the account created in this 26 29 subsection shall not be annuitized. A probation officer III 26 30 or parole officer III for which an account is established 26 31 under this subsection shall not receive credit for eligible 26 32 service as a member of a protection occupation for that 26 33 service. 26 34 Sec. 47. Section 97B.49H, subsection 5, paragraph c, Code 26 35 1999, is amended to read as follows: 27 1 c. Upon retirement, the member shall elect to receive in a 27 2 lump sum payment or in an annuity, in addition to any other 27 3 payment provided by this chapter, all amounts credited to the 27 4 member's supplemental account. The annuity provided under 27 5 this section shall be payable in the same form, at the same 27 6 time, and to the same persons, including beneficiaries and 27 7 contingent annuitants, that the member elects for the payments 27 8 under the other provisions of this chapter providing for the 27 9 monthly payment of allowances. The amount of an annuity 27 10 provided under this section, including amounts payable to 27 11 beneficiaries and contingent annuitants, shall be calculated 27 12 using the amount credited to the member's supplemental account 27 13 as of the date of retirement, and the assumptions underlying 27 14 the actuarial tables used to calculate optional allowances 27 15 under section 97B.51. 27 16 Sec. 48. Section 97B.50, subsection 1, unnumbered 27 17 paragraph 1, Code 1999, is amended to read as follows: 27 18 Except as otherwise provided in this section, a vested 27 19 member who is at least fifty-five years of age, upon 27 20 retirement prior to the normal retirement dateother than that27 21specified in section 97B.45, subsection 4for that member, is 27 22 entitled to receive a monthly retirement allowance determined 27 23 in the same manner as provided for normal retirement in 27 24 sections 97B.49A, 97B.49E, and 97B.49G, reduced as follows: 27 25 Sec. 49. Section 97B.50, subsection 2, Code 1999, is 27 26 amended to read as follows: 27 27 2. a. A vested member who retires from the system due to 27 28 disability and commences receiving disability benefits 27 29 pursuant to the federal Social Security Act, 42 U.S.C. } 423 27 30 et seq., and who has not reached the normal retirement date, 27 31 shall receive benefits as selected undersections 97B.49A27 32through 97B.49G, as applicablesection 97B.51, and shall not 27 33 have benefits reduced upon retirement as required under 27 34 subsection 1 regardless of whether the member has completed 27 35 thirty or more years of membership service. However, the 28 1 benefits shall be suspended during any period in which the 28 2 member returns to covered employment. This section takes 28 3 effect July 1, 1990, for a member meeting the requirements of 28 4 this paragraph who retired from the system at any time after 28 5 July 4, 1953. Eligible members retiring on or after July 1, 28 6 2000, are entitled to the receipt of retroactive adjustment 28 7 paymentsback to July 1, 1990for no more than thirty-six 28 8 months immediately preceding the month in which written notice 28 9 of retirement due to disability was submitted to the 28 10 department, notwithstanding the requirements of subsection 4. 28 11 b. A vested member who retires from the system due to 28 12 disability and commences receiving disability benefits 28 13 pursuant to the federal Railroad Retirement Act, 45 U.S.C. } 28 14 231 et seq., and who has not reached the normal retirement 28 15 date, shall receive benefits as selected undersections28 1697B.49A through 97B.49G, as applicablesection 97B.51, and 28 17 shall not have benefits reduced upon retirement as required 28 18 under subsection 1 regardless of whether the member has 28 19 completed thirty or more years of membership service. 28 20 However, the benefits shall be suspended during any period in 28 21 which the member returns to covered employment. This section 28 22 takes effect July 1, 1990, for a member meeting the 28 23 requirements of this paragraph who retired from the system at 28 24 any time since July 4, 1953. Eligible members retiring on or 28 25 after July 1, 2000, are entitled to the receipt of retroactive 28 26 adjustment paymentsback to July 1, 1990for no more than 28 27 thirty-six months immediately preceding the month in which 28 28 written notice of retirement due to disability was submitted 28 29 to the department, notwithstanding the requirements of 28 30 subsection 4. 28 31 Sec. 50. Section 97B.50, subsection 2, Code 1999, is 28 32 amended by adding the following new paragraph: 28 33 NEW PARAGRAPH. c. A vested member who terminated service 28 34 due to a disability, who has been issued payment for a refund 28 35 pursuant to section 97B.53, and who subsequently commences 29 1 receiving disability benefits as a result of that disability 29 2 pursuant to the federal Social Security Act, 42 U.S.C. } 423 29 3 et seq. or the federal Railroad Retirement Act, 45 U.S.C. } 29 4 231 et seq., may receive credit for membership service for the 29 5 period covered by the refund payment, upon repayment to the 29 6 department of the actuarial cost of receiving service credit 29 7 for the period covered by the refund payment, as determined by 29 8 the department. For purposes of this paragraph, the actuarial 29 9 cost of the service purchase shall be determined as provided 29 10 in section 97B.74. The payment to the department as provided 29 11 in this paragraph shall be made within ninety days after July 29 12 1, 2000, or the date federal disability payments commenced, 29 13 whichever occurs later. For purposes of this paragraph, the 29 14 date federal disability payments commence shall be the date 29 15 that the member actually receives the first such payment, 29 16 regardless of any retroactive payments included in that 29 17 payment. A member who repurchases service credit under this 29 18 paragraph and applies for retirement benefits shall have the 29 19 member's monthly allowance, including retroactive adjustment 29 20 payments, determined in the same manner as provided in 29 21 paragraph "a" or "b", as applicable. This paragraph shall not 29 22 be implemented until the system has received a determination 29 23 letter from the federal internal revenue service approving the 29 24 system's plan's qualified status under Internal Revenue Code 29 25 section 401(a). 29 26 Sec. 51. NEW SECTION. 97B.50A DISABILITY BENEFITS FOR 29 27 SPECIAL SERVICE MEMBERS. 29 28 1. DEFINITIONS. For purposes of this section, unless the 29 29 context otherwise provides: 29 30 a. "Member" means a vested member who is classified as a 29 31 special service member under section 97B.1A, subsection 22, at 29 32 the time of the alleged disability. "Member" does not mean a 29 33 volunteer fire fighter. 29 34 b. "Net disability retirement allowance" means the amount 29 35 determined by subtracting the amount paid during the previous 30 1 calendar year by the member for health insurance or similar 30 2 health care coverage for the member and the member's 30 3 dependents from the amount of the member's disability 30 4 retirement allowance, including any dividends and 30 5 distributions from supplemental accounts, paid for that year 30 6 pursuant to this section. 30 7 c. "Reemployment comparison amount" means an amount equal 30 8 to the current covered wages of an active special service 30 9 member at the same position on the salary scale within the 30 10 rank or position the member held at the time the member 30 11 received a disability retirement allowance pursuant to this 30 12 section. If the rank or position held by the member at the 30 13 time of retirement pursuant to this section is abolished, the 30 14 amount shall be computed by the department as though the rank 30 15 or position had not been abolished and salary increases had 30 16 been granted on the same basis as granted to other ranks or 30 17 positions by the former employer of the member. The 30 18 reemployment comparison amount shall not be less than the 30 19 three-year average covered wage of the member, based on all 30 20 regular and special service covered under this chapter. 30 21 2. IN-SERVICE DISABILITY RETIREMENT ALLOWANCE. 30 22 a. A member who is injured in the performance of the 30 23 member's duties, and otherwise meets the requirements of this 30 24 subsection shall receive an in-service disability retirement 30 25 allowance under this subsection, in lieu of a monthly 30 26 retirement allowance as provided in section 97B.49A, 97B.49B, 30 27 97B.49C, 97B.49D, or 97B.49G, as applicable. 30 28 b. Upon application of a member, a member who has become 30 29 totally and permanently incapacitated for duty in the member's 30 30 special service occupation as the natural and proximate result 30 31 of an injury, disease, or exposure occurring or aggravated 30 32 while in the actual performance of duty at some definite place 30 33 and time shall be eligible to retire under this subsection, 30 34 provided that the medical board, as established by this 30 35 section, shall certify that the member is mentally or 31 1 physically incapacitated for further performance of duty, that 31 2 the incapacity is likely to be permanent, and that the member 31 3 should be retired. The department shall make the final 31 4 determination, based on the medical evidence received, of a 31 5 member's total and permanent disability. However, if a 31 6 person's special service membership in the system first 31 7 commenced on or after July 1, 2000, the member shall not be 31 8 eligible for benefits with respect to a disability which would 31 9 not exist, but for a medical condition that was known to exist 31 10 on the date that membership commenced. A member who is denied 31 11 a benefit under this subsection, by reason of a finding by the 31 12 department that the member is not mentally or physically 31 13 incapacitated for the further performance of duty, shall be 31 14 entitled to be restored to active service in the same or 31 15 comparable special service occupation position held by the 31 16 member immediately prior to the application for disability 31 17 benefits. 31 18 c. Disease under this subsection shall mean heart disease 31 19 or any disease of the lungs or respiratory tract and shall be 31 20 presumed to have been contracted while on active duty as a 31 21 result of strain, exposure, or the inhalation of noxious 31 22 fumes, poison, or gases. However, if a person's special 31 23 service membership in the system first commenced on or after 31 24 July 1, 2000, and the heart disease or disease of the lungs or 31 25 respiratory tract would not exist, but for a medical condition 31 26 that was known to exist on the date that special service 31 27 membership commenced, the presumption established in this 31 28 paragraph shall not apply. 31 29 d. Upon retirement for an in-service disability as 31 30 provided by this subsection, a member shall receive the 31 31 greater of a monthly in-service disability retirement 31 32 allowance calculated under this subsection or a monthly 31 33 retirement allowance as provided in section 97B.49A, 97B.49B, 31 34 97B.49C, 97B.49D, or 97B.49G, as applicable. The monthly in- 31 35 service disability allowance calculated under this subsection 32 1 shall consist of an allowance equal to one-twelfth of sixty 32 2 percent of the member's three-year average covered wage or its 32 3 actuarial equivalent as provided under section 97B.51. 32 4 3. ORDINARY DISABILITY RETIREMENT ALLOWANCE. 32 5 a. A member who otherwise meets the requirements of this 32 6 subsection shall receive an ordinary disability retirement 32 7 allowance under this subsection, in lieu of a monthly 32 8 retirement allowance as provided in section 97B.49A, 97B.49B, 32 9 97B.49C, 97B.49D, or 97B.49G, as applicable. 32 10 b. Upon application of a member, a member who has become 32 11 totally and permanently incapacitated for duty in the member's 32 12 special service occupation shall be eligible to retire under 32 13 this subsection, provided that the medical board, as 32 14 established by this section, shall certify that the member is 32 15 mentally or physically incapacitated for further performance 32 16 of duty, that the incapacity is likely to be permanent, and 32 17 that the member should be retired. The department shall make 32 18 the final determination, based on the medical evidence 32 19 received, of a member's total and permanent disability. 32 20 However, if a person's special service membership in the 32 21 system first commenced on or after July 1, 2000, the member 32 22 shall not be eligible for benefits with respect to a 32 23 disability which would not exist, but for a medical condition 32 24 that was known to exist on the date that special service 32 25 membership commenced. A member who is denied a benefit under 32 26 this subsection, by reason of a finding by the department that 32 27 the member is not mentally or physically incapacitated for the 32 28 further performance of duty, shall be entitled to be restored 32 29 to active service in the same or comparable special service 32 30 occupation position held by the member immediately prior to 32 31 the application for disability benefits. 32 32 c. Upon retirement for an ordinary disability as provided 32 33 by this subsection, a member shall receive the greater of a 32 34 monthly ordinary disability retirement allowance calculated 32 35 under this subsection or a monthly retirement allowance as 33 1 provided in section 97B.49A, 97B.49B, 97B.49C, 97B.49D, or 33 2 97B.49G, as applicable. The monthly ordinary disability 33 3 allowance calculated under this subsection shall consist of an 33 4 allowance equal to one-twelfth of fifty percent of the 33 5 member's three-year average covered wage or its actuarial 33 6 equivalent as provided under section 97B.51. 33 7 4. WAIVER OF ALLOWANCE. A member receiving a disability 33 8 retirement allowance under this section may file an 33 9 application to receive benefits pursuant to section 97B.50, 33 10 subsection 2, in lieu of receiving a disability retirement 33 11 allowance under this section, if the member becomes eligible 33 12 for benefits under section 97B.50, subsection 2. An 33 13 application to receive benefits pursuant to section 97B.50, 33 14 subsection 2, shall be filed with the department within sixty 33 15 days after the member becomes eligible for benefits pursuant 33 16 to that section or the member shall be ineligible to elect 33 17 coverage under that section. On the first of the month 33 18 following the month in which a member's application is 33 19 approved by the department, the member's election of coverage 33 20 under section 97B.50, subsection 2, shall become effective and 33 21 the member's eligibility to receive a disability retirement 33 22 allowance pursuant to this section shall cease. Benefits 33 23 payable pursuant to section 97B.50, subsection 2, shall be 33 24 calculated using the option choice the member selected for 33 25 payment of a disability retirement allowance pursuant to this 33 26 section. An application to elect coverage under section 33 27 97B.50, subsection 2, is irrevocable upon approval by the 33 28 department. 33 29 5. OFFSET TO ALLOWANCE. Notwithstanding any provisions to 33 30 the contrary in state law, or any applicable contract or 33 31 policy, any amounts which may be paid or payable by the 33 32 employer under any workers' compensation, unemployment 33 33 compensation, or other law to a member, and any disability 33 34 payments the member receives pursuant to the federal Social 33 35 Security Act, 42 U.S.C. } 423 et seq., shall be offset against 34 1 and payable in lieu of any retirement allowance payable 34 2 pursuant to this section on account of the same disability. 34 3 6. REEXAMINATION OF MEMBERS RETIRED ON ACCOUNT OF 34 4 DISABILITY. 34 5 a. Once each year during the first five years following 34 6 the retirement of a member under this section, and once in 34 7 every three-year period thereafter, the department may, and 34 8 upon the member's application shall, require any member 34 9 receiving an in-service or ordinary disability retirement 34 10 allowance who has not yet attained the age of fifty-five years 34 11 to undergo a medical examination as arranged by the medical 34 12 board as established by this section. The examination shall 34 13 be made by the medical board or by an additional physician or 34 14 physicians designated by the medical board. If any member 34 15 receiving an in-service or ordinary disability retirement 34 16 allowance who has not attained the age of fifty-five years 34 17 refuses to submit to the medical examination, the allowance 34 18 may be discontinued until the member's withdrawal of the 34 19 refusal, and should the member's refusal continue for one 34 20 year, all rights in and to the member's disability retirement 34 21 allowance shall be revoked by the department. 34 22 b. If a member is determined under paragraph "a" to be no 34 23 longer eligible for in-service or ordinary disability 34 24 benefits, all benefits paid under this section shall cease. 34 25 The member shall be eligible to receive benefits calculated 34 26 under section 97B.49B or 97B.49C, as applicable, when the 34 27 member reaches age fifty-five. 34 28 7. REEMPLOYMENT. 34 29 a. If a member receiving a disability retirement allowance 34 30 is returned to covered employment, the member's disability 34 31 retirement allowance shall cease, the member shall again 34 32 become an active member, and shall contribute thereafter at 34 33 the same rate payable by similarly classified members. If a 34 34 member receiving a disability retirement allowance returns to 34 35 special service employment, then the period of time the member 35 1 received a disability retirement allowance shall constitute 35 2 eligible service as defined in section 97B.49B, subsection 1, 35 3 or section 97B.49C, subsection 1, as applicable. Upon 35 4 subsequent retirement, the member's retirement allowance shall 35 5 be calculated as provided in section 97B.48A. 35 6 b. (1) If a member receiving a disability retirement 35 7 allowance is engaged in a gainful occupation that is not 35 8 covered employment, the member's disability retirement 35 9 allowance shall be reduced, if applicable, as provided in this 35 10 paragraph. 35 11 (2) If the member is engaged in a gainful occupation 35 12 paying more than the difference between the member's net 35 13 disability retirement allowance and one and one-half times the 35 14 reemployment comparison amount for that member, then the 35 15 amount of the member's disability retirement allowance shall 35 16 be reduced to an amount such that the member's net disability 35 17 retirement allowance plus the amount earned by the member 35 18 shall equal one and one-half times the reemployment comparison 35 19 amount for that member. 35 20 (3) The member shall submit sufficient documentation to 35 21 the system to permit the system to determine the member's net 35 22 disability retirement allowance and earnings from a gainful 35 23 occupation that is not covered employment for the applicable 35 24 year. 35 25 (4) This paragraph does not apply to a member who is at 35 26 least fifty-five years of age and would have completed a 35 27 sufficient number of years of service if the member had 35 28 remained in active special service employment. For purposes 35 29 of this subparagraph, a sufficient number of years of service 35 30 shall be twenty-five for a special service member as described 35 31 in section 97B.49B or twenty-two for a special service member 35 32 as described in section 97B.49C. 35 33 8. DEATH BENEFITS. A member who is receiving an in- 35 34 service or ordinary disability retirement allowance under this 35 35 section shall be treated as having elected a lifetime monthly 36 1 retirement allowance with death benefits payable under section 36 2 97B.52, subsection 2, unless the member elects an optional 36 3 form of benefit provided under section 97B.51, which shall be 36 4 actuarially equivalent to the lifetime monthly retirement 36 5 allowance provided under this section. 36 6 9. MEDICAL BOARD. The system shall designate a medical 36 7 board to be composed of three physicians from the university 36 8 of Iowa hospitals and clinics who shall arrange for and pass 36 9 upon the medical examinations required under this section and 36 10 shall report in writing to the department the conclusions and 36 11 recommendations upon all matters duly referred to the medical 36 12 board. Each report of a medical examination under this 36 13 section shall include the medical board's findings as to the 36 14 extent of the member's physical or mental impairment. Except 36 15 as required by this section, each report shall be confidential 36 16 and shall be maintained in accordance with the federal 36 17 Americans with Disabilities Act, and any other state or 36 18 federal law containing requirements for confidentiality of 36 19 medical records. 36 20 10. LIABILITY OF THIRD PARTIES – SUBROGATION. 36 21 a. If a member receives an injury for which benefits are 36 22 payable under this section, and if the injury is caused under 36 23 circumstances creating a legal liability for damages against a 36 24 third party other than the system, the member or the member's 36 25 legal representative may maintain an action for damages 36 26 against the third party. If a member or a member's legal 36 27 representative commences such an action, the plaintiff member 36 28 or representative shall serve a copy of the original notice 36 29 upon the system not less than ten days before the trial of the 36 30 action, but a failure to serve the notice does not prejudice 36 31 the rights of the system, and the following rights and duties 36 32 ensue: 36 33 (1) The system shall be indemnified out of the recovery of 36 34 damages to the extent of benefit payments made by the system, 36 35 with legal interest, except that the plaintiff member's 37 1 attorney fees may be first allowed by the district court. 37 2 (2) The system has a lien on the damage claim against the 37 3 third party and on any judgment on the damage claim for 37 4 benefits for which the system is liable. In order to continue 37 5 and preserve the lien, the system shall file a notice of the 37 6 lien within thirty days after receiving a copy of the original 37 7 notice in the office of the clerk of the district court in 37 8 which the action is filed. 37 9 b. If a member fails to bring an action for damages 37 10 against a third party within thirty days after the system 37 11 requests the member in writing to do so, the system is 37 12 subrogated to the rights of the member and may maintain the 37 13 action against the third party, and may recover damages for 37 14 the injury to the same extent that the member may recover 37 15 damages for the injury. If the system recovers damages in the 37 16 action, the court shall enter judgment for distribution of the 37 17 recovery as follows: 37 18 (1) A sum sufficient to repay the system for the amount of 37 19 such benefits actually paid by the system up to the time of 37 20 the entering of the judgment. 37 21 (2) A sum sufficient to pay the system the present worth, 37 22 computed at the interest rate provided in section 535.3 for 37 23 court judgments and decrees, of the future payments of such 37 24 benefits, for which the system is liable, but the sum is not a 37 25 final adjudication of the future payment which the member is 37 26 entitled to receive. 37 27 (3) Any balance shall be paid to the member. 37 28 c. Before a settlement is effective between the system and 37 29 a third party who is liable for any injury, the member must 37 30 consent in writing to the settlement; and if the settlement is 37 31 between the member and a third party, the system must consent 37 32 in writing to the settlement; or on refusal to consent, in 37 33 either case, the district court in the county in which either 37 34 the employer of the member or the system is located must 37 35 consent in writing to the settlement. 38 1 d. For purposes of subrogation under this section, a 38 2 payment made to an injured member or the member's legal 38 3 representative, by or on behalf of a third party or the third 38 4 party's principal or agent, who is liable for, connected with, 38 5 or involved in causing the injury to the member, shall be 38 6 considered paid as damages because the injury was caused under 38 7 circumstances creating a legal liability against the third 38 8 party, whether the payment is made under a covenant not to 38 9 sue, compromise settlement, denial of liability, or is 38 10 otherwise made. 38 11 11. DOCUMENT SUBMISSIONS. A member retired under this 38 12 section, in order to be eligible for continued receipt of 38 13 retirement benefits, shall submit to the department any 38 14 documentation the department may reasonably request which will 38 15 provide information needed to determine payments to the member 38 16 under this section. 38 17 12. ADDITIONAL CONTRIBUTIONS. The expenses incurred in 38 18 the administration of this section by the system shall be paid 38 19 through additional contributions as determined pursuant to 38 20 section 97B.49B, subsection 3, or section 97B.49C, subsection 38 21 3, as applicable. 38 22 13. APPLICABILITY – RETROACTIVITY. 38 23 a. This section applies to a member who becomes disabled 38 24 on or after July 1, 2000, and also applies to a member who 38 25 becomes disabled prior to July 1, 2000, if the member has not 38 26 terminated special service employment as of June 30, 2000. 38 27 b. To qualify for benefits under this section, a member 38 28 must file a completed application with the department within 38 29 one year of the member's termination of employment. A member 38 30 eligible for a disability retirement allowance under this 38 31 section is entitled to receipt of retroactive adjustment 38 32 payments for no more than six months immediately preceding the 38 33 month in which the completed application for receipt of a 38 34 disability retirement allowance under this section is 38 35 approved. 39 1 14. RULES. The department shall adopt rules pursuant to 39 2 chapter 17A specifying the application procedure for members 39 3 pursuant to this section. 39 4 Sec. 52. Section 97B.51, Code 1999, is amended by striking 39 5 the section and inserting in lieu thereof the following: 39 6 97B.51 ALLOWANCE UPON RETIREMENT. 39 7 1. Each member has the right prior to the member's 39 8 retirement date to elect to have the member's retirement 39 9 allowance payable under one of the options set forth in this 39 10 section. The amount of the optional retirement allowance 39 11 selected in paragraph "a", "c", "d", or "e", shall be the 39 12 actuarial equivalent of the amount of the retirement allowance 39 13 otherwise payable to the member as determined by the system in 39 14 consultation with the system's actuary. The member shall make 39 15 an election by written request to the department and the 39 16 election is subject to the approval of the department. If the 39 17 member is married, election of an option under this section 39 18 requires the written acknowledgment of the member's spouse. 39 19 The member may select one of the following options: 39 20 a. At retirement, a member may designate that upon the 39 21 member's death, a specified amount of money shall be paid to a 39 22 named beneficiary, and the member's monthly retirement 39 23 allowance shall be reduced by an actuarially determined amount 39 24 to provide for the lump sum payment. The amount designated by 39 25 the member must be in thousand dollar increments and shall be 39 26 limited to the amount of the member's accumulated 39 27 contributions. The amount designated shall not lower the 39 28 monthly retirement allowance of the member by more than one- 39 29 half the amount payable as provided in paragraph "b". A 39 30 member may designate a different beneficiary at any time, 39 31 except as limited by an order that has been accepted by the 39 32 department as complying with the requirements of section 39 33 97B.39. 39 34 b. A member may elect a retirement allowance otherwise 39 35 payable to the member upon retirement under the retirement 40 1 system pursuant to this chapter, to include the applicable 40 2 provisions of sections 97B.49A through 97B.49G, and a death 40 3 benefit as provided in section 97B.52, subsection 2. 40 4 c. A member may elect an increased retirement allowance 40 5 during the member's lifetime with no death benefit after the 40 6 member's retirement date. 40 7 d. (1) A member may elect to receive a decreased 40 8 retirement allowance during the member's lifetime and have the 40 9 decreased retirement allowance, or a designated fraction 40 10 thereof, continued after the member's death to another person, 40 11 called a contingent annuitant, during the lifetime of the 40 12 contingent annuitant. The member cannot change the contingent 40 13 annuitant after the member's retirement. In case of the 40 14 election of a contingent annuitant, no death benefits, as 40 15 might otherwise be provided by this chapter, will be payable 40 16 upon the death of either the member or the contingent 40 17 annuitant after the member's retirement. 40 18 (2) In lieu of a benefit as calculated under subparagraph 40 19 (1), a member may elect to receive a decreased retirement 40 20 allowance during the member's lifetime and have the decreased 40 21 retirement allowance, or a designated fraction thereof, 40 22 continued after the member's death to another person, called a 40 23 contingent annuitant, during the lifetime of the contingent 40 24 annuitant, as determined by this subparagraph. In addition, 40 25 if the contingent annuitant dies prior to the death of the 40 26 member, the member shall receive a retirement allowance 40 27 beginning with the first month following the death of the 40 28 contingent annuitant as if the member had selected the option 40 29 provided by paragraph "b" at the time of the member's first 40 30 retirement. The member cannot change the contingent annuitant 40 31 after the member's retirement. If a contingent annuitant 40 32 receives a decreased retirement allowance under this 40 33 subparagraph following the death of the member, no death 40 34 benefits, as might otherwise be provided by this chapter, will 40 35 be payable upon the death of the contingent annuitant. 41 1 e. A member may elect to receive a decreased retirement 41 2 allowance during the member's lifetime with provision that in 41 3 event of the member's death during the first one hundred 41 4 twenty months of retirement, monthly payments of the member's 41 5 decreased retirement allowance shall be made to the member's 41 6 beneficiary until a combined total of one hundred twenty 41 7 monthly payments have been made to the member and the member's 41 8 beneficiary. When the member designates multiple 41 9 beneficiaries, the present value of the remaining payments 41 10 shall be paid in a lump sum to each beneficiary, either in 41 11 equal shares to the beneficiaries, or if the member specifies 41 12 otherwise in a written request, in the specified proportion. 41 13 A member may designate a different beneficiary at any time, 41 14 except as limited by an order that has been accepted by the 41 15 department as complying with the requirements of section 41 16 97B.39. 41 17 2. The election by a member of an option stated under this 41 18 section shall be null and void if the member dies prior to the 41 19 member's first month of entitlement. 41 20 3. A member who had elected to take an option stated in 41 21 this section, may, at any time prior to retirement, revoke 41 22 such an election by written notice to the department. A 41 23 member shall not change or revoke an election once the first 41 24 retirement allowance is paid. 41 25 Sec. 53. Section 97B.52, subsection 1, Code 1999, is 41 26 amended to read as follows: 41 27 1. If a member dies prior to the member's first month of 41 28 entitlement, the member's beneficiary shall be entitled to 41 29 receive a death benefit equal to the greater of the amount 41 30 provided in paragraph "a" or "b". 41 31 a. A lump sum payment equal to the accumulated 41 32 contributions of the member at the date of death plus the 41 33 product of an amount equal to the highest year of covered 41 34 wages of the deceased member and the number of years of 41 35 membership service divided by the applicable denominatorshall42 1be paid to the member's beneficiary in a lump sum payment. 42 2 However, a lump sum payment made to a beneficiary under this 42 3subsectionparagraph due to the death of a member shall not be 42 4 less than the amount that would have been payable on the death 42 5 of the member on June 30, 1984, under thissubsection42 6 paragraph as it appeared in the 1983 Code. 42 7 As used in thissubsectionparagraph, "applicable 42 8 denominator" means the following, based upon the type of 42 9 membership service in which the member served either on the 42 10 date of death, or if the member died after terminating 42 11 service, on the date of the member's last termination of 42 12 service: 42 13a.(1) For regular service, the applicable denominator is 42 14 thirty. 42 15b.(2) For service in a protection occupation, as defined 42 16 in section 97B.49B, the applicable denominator istwenty-five42 17 the applicable years of service for the member as defined in 42 18 section 97B.49B if the member had retired on the date of 42 19 death. 42 20c.(3) For service as a sheriff, deputy sheriff, or 42 21 airport fire fighter, as provided in section 97B.49C, the 42 22 applicable denominator is twenty-two. 42 23 Effective July 1, 1978, a method of payment under this 42 24subsectionparagraph filed with the department by a member 42 25 does not apply. 42 26 b. For a member who dies on or after January 1, 2001, a 42 27 lump sum payment equal to the actuarial present value of the 42 28 member's accrued benefit as of the date of death. The 42 29 actuarial equivalent present value of the member's accrued 42 30 benefit as of the date of death shall be calculated using the 42 31 same interest rate and mortality tables that are used by the 42 32 system and the system's actuary under section 97B.51, and 42 33 shall assume that the member would have retired at the 42 34 member's earliest normal retirement date. 42 35 c. The payment of a death benefit to a designated 43 1 beneficiary as provided by this subsection shall be in a lump 43 2 sum payment. However, if the designated beneficiary is a sole 43 3 individual, the beneficiary may elect to receive, in lieu of a 43 4 lump sum payment under this subsection, a monthly annuity 43 5 payable for the life of the beneficiary. The monthly annuity 43 6 shall be calculated by applying the annuity tables used by the 43 7 department to the lump sum payment under this subsection based 43 8 on the beneficiary's age. If the designated beneficiary is 43 9 more than one individual, or if the designated beneficiary is 43 10 an estate, trust, church, charity, or other similar 43 11 organization, a death benefit under this subsection shall only 43 12 be paid in a lump sum. 43 13 Sec. 54. Section 97B.52, Code 1999, is amended by adding 43 14 the following new subsection: 43 15 NEW SUBSECTION. 1A. a. If the department determines, 43 16 upon the receipt of evidence and proof, that the death of a 43 17 member in special service was the direct and proximate result 43 18 of a traumatic personal injury incurred in the line of duty as 43 19 a member in special service, a line of duty death benefit in 43 20 an amount of one hundred thousand dollars shall be paid in a 43 21 lump sum to the special service member's beneficiary. A line 43 22 of duty death benefit payable under this subsection shall be 43 23 in addition to any death benefit payable as provided in 43 24 subsection 1. 43 25 b. A line of duty death benefit shall not be payable under 43 26 this subsection if any of the following applies: 43 27 (1) The death resulted from stress, strain, occupational 43 28 illness, or a chronic, progressive, or congenital illness, 43 29 including, but not limited to, a disease of the heart, lungs, 43 30 or respiratory system, unless a traumatic personal injury was 43 31 a substantial contributing factor to the special service 43 32 member's death. 43 33 (2) The death was caused by the intentional misconduct of 43 34 the special service member or by the special service member's 43 35 intent to cause the special service member's own death. 44 1 (3) The special service member was voluntarily intoxicated 44 2 at the time of death. 44 3 (4) The special service member was performing the special 44 4 service member's duties in a grossly negligent manner at the 44 5 time of death. 44 6 (5) A beneficiary who would otherwise be entitled to a 44 7 benefit under this subsection was, through the beneficiary's 44 8 actions, a substantial contributing factor to the special 44 9 service member's death. 44 10 Sec. 55. Section 97B.52, subsection 2, Code 1999, is 44 11 amended to read as follows: 44 12 2. If a member dies on or after the first day of the 44 13 member's first month of entitlement, the excess, if any, of 44 14 the accumulated contributions by the member as of said date, 44 15 over the total gross monthly retirement allowances received by 44 16 the member under the retirement system will be paid to the 44 17 member's beneficiary unless the retirement allowance is then 44 18 being paid in accordance with section 97B.48 or with section 44 19 97B.51, subsection 1,4, 5, or 6paragraph "a", "c", "d", or 44 20 "e". 44 21 Sec. 56. Section 97B.52, subsection 3, paragraph a, Code 44 22 1999, is amended to read as follows: 44 23 a. Other than as provided in subsections 1, 1A, and 2 of 44 24 this section, or section 97B.51, all rights to any benefits 44 25 under the retirement system shall cease upon the death of a 44 26 member. 44 27 Sec. 57. Section 97B.52, subsection 4, unnumbered 44 28 paragraph 1, Code 1999, is amended to read as follows: 44 29 In order to receive the death benefit, the beneficiary, 44 30 heirs at law, or the estate, or any other third-party payee, 44 31 must apply to the department within five years of the member's 44 32 death. However, death benefits payable under this section 44 33 shall not exceed the amount permitted pursuant to Internal 44 34 Revenue Code section 401(a)(9) and the applicable treasury 44 35 regulations. 45 1 Sec. 58. Section 97B.52, subsection 5, Code 1999, is 45 2 amended to read as follows: 45 3 5. Following written notification to the department, a 45 4 beneficiary of a deceased member may waive current and future 45 5 rights to payments to which the beneficiary would otherwise be 45 6 entitled under section 97B.51,subsections 5 and 6 and this45 7sectionsubsection 1, paragraphs "a", "b", and "e". Upon 45 8 receipt of the waiver, the department shall pay the amount 45 9 designated to be received by that beneficiary to the member's 45 10 other surviving beneficiary or beneficiaries or to the estate 45 11 of the deceased member, as elected by the beneficiary in the 45 12 waiver. If the payments being waived are payable to the 45 13 member's estate and an estate is not probated, the payments 45 14 shall be paid to the deceased member's surviving spouse, or if 45 15 there is no surviving spouse, to the member's heirs other than 45 16 the beneficiary who waived the payments. 45 17 Sec. 59. Section 97B.52A, subsection 1, paragraph b, Code 45 18 1999, is amended to read as follows: 45 19 b. For a member whose first month of entitlement is July 45 20 1998 or later, but before July 2000, the member does not 45 21 return to any employment with a covered employer until the 45 22 member has qualified for no fewer than four calendar months of 45 23 retirement benefits. 45 24 Sec. 60. Section 97B.52A, subsection 1, Code 1999, is 45 25 amended by adding the following new paragraph: 45 26 NEW PARAGRAPH. c. For a member whose first month of 45 27 entitlement is July 2000 or later, the member does not return 45 28 to any employment with a covered employer until the member has 45 29 qualified for at least one calendar month of retirement 45 30 benefits, and the member does not return to covered employment 45 31 until the member has qualified for no fewer than four calendar 45 32 months of retirement benefits. For purposes of this 45 33 paragraph, effective July 1, 2000, any employment with a 45 34 covered employer does not include employment as an elective 45 35 official or member of the general assembly if the member is 46 1 not covered under this chapter for that employment. 46 2 Sec. 61. Section 97B.52A, subsection 2, Code 1999, is 46 3 amended to read as follows: 46 4 2. A member may commence receiving retirement benefits 46 5 under this chapter upon satisfying eligibility requirements. 46 6 However, a retired member who commences receiving a retirement 46 7 allowance butreturns to employment before qualifying for no46 8fewer than four calendar months of retirement benefitsfails 46 9 to meet the applicable requirements of subsection 1 does not 46 10 have a bona fide retirement and any retirement allowance 46 11 received by such a member must be returned to the system 46 12 together with interest earned on the retirement allowance 46 13 calculated at a rate determined by the department. Until the 46 14 member has repaid the retirement allowance and interest, the 46 15 department may withhold any future retirement allowance for 46 16 which the member may qualify. 46 17 Sec. 62. Section 97B.52A, Code 1999, is amended by adding 46 18 the following new subsection: 46 19 NEW SUBSECTION. 4. The requirements of this section shall 46 20 apply to a lump sum payment as provided by section 97B.48, 46 21 subsection 1, and the payment of contributions as provided in 46 22 section 97B.48A, subsection 4. 46 23 Sec. 63. Section 97B.53, Code Supplement 1999, is amended 46 24 to read as follows: 46 25 97B.53 TERMINATION OF EMPLOYMENT – REFUND OPTIONS. 46 26 Membership in the retirement system, and all rights to the 46 27 benefits under the system,willcease upon a member's 46 28 termination of employment with the employer prior to the 46 29 member's retirement, other than by death, and upon receipt by 46 30 the member ofthea refund of moneys in the member's 46 31accumulated contributionsaccount as provided in this section. 46 32 1. Upon the termination of employment with the employer 46 33 prior to retirement other than by death of a member, the 46 34 member's account, consisting of accumulated contributions by 46 35 the member and, for avestedmember who is vested on the date 47 1 an application for a refund is filed, the member's share of 47 2 the accumulated employer contributions for the vested member 47 3 at the date of the termination, may be paid to the member upon 47 4 application, except as provided in subsections 2, 5, and 6. 47 5 For the purpose of this subsection, the "member's share of the 47 6 accumulated employer contributions" is an amount equal to the 47 7total obtained as of any date, by accumulating each individual47 8contribution by the employer for the member with interest plus47 9interest dividends as provided in section 97B.70, for all47 10completed calendar years and for any completed calendar year47 11for which the interest dividend has not been declared and for47 12completed months of partially completed calendar years,47 13compounded as provided in section 97B.70accumulated employer 47 14 contributions of the member multiplied by a fraction of years 47 15 of service for that member as defined in section 97B.49A, 47 16 97B.49B, or 97B.49C. 47 17 2. If a vested member's employment is terminated prior to 47 18 the member's retirement, other than by death, the member may 47 19 receive a monthly retirement allowance commencing on the first 47 20 day of the month in which the member attains the age of sixty- 47 21 five years, if the member is then alive, or, if the member so 47 22 elects in accordance with section 97B.47, commencing on the 47 23 first day of the month in which the member attains the age of 47 24 fifty-five or any month thereafter prior to the date the 47 25 member attains the age of sixty-five years, and continuing on 47 26 the first day of each month thereafter during the member's 47 27 lifetime, provided the member does not receive prior to the 47 28 date the member's retirement allowance is to commence a refund 47 29 ofaccumulated contributionsmoneys in the member's account as 47 30 provided under any of the provisions of this chapter. The 47 31 amount of each such monthly retirement allowance shall be 47 32 determined as provided in either sections 97B.49A through 47 33 97B.49G, or in section 97B.50, whichever is applicable. 47 343. The accumulated contributions account of a terminated,47 35vested member shall be credited with interest, including48 1interest dividends, in the manner provided in section 97B.70.48 24.3. A terminated, vested member has the right, prior to 48 3 the commencement of the member's retirement allowance, to 48 4 receive a refund of moneys in the member'saccumulated48 5contributionsaccount, and in the event of the death of the 48 6 member prior to the commencement of the member's retirement 48 7 allowance and prior to the receipt of any such refund, the 48 8 benefitsofauthorized by subsection 1 and subsection 1A of 48 9 section 97B.52 shall be paid. 48 105.4. A member has not terminated employment for purposes 48 11 of this section if the member accepts other covered employment 48 12 withinthirty daysfour months after receiving the last 48 13 payment of wages for covered employment, or if the member 48 14 begins covered employment prior to filing a request for a 48 15 refund with the department. 48 165A.5. Within sixty days after a member has been issued 48 17 payment for a refund of moneys in the member'saccumulated48 18contributionsaccount, the member may repay theaccumulated48 19contributionsmoneys refunded, plus interest that would have 48 20 accrued, as determined by the department, and receive credit 48 21 for membership service for the period covered by the refund 48 22 payment. 48 235B.6. A member who does not withdraw moneys in the 48 24 member'saccumulated contributionsaccount upon termination of 48 25 employment may at any time request the return of the moneys in 48 26 the member'saccumulated contributionsaccount, but if the 48 27 member receives a return ofcontributionsmoneys in the 48 28 member's account the member has waived all claims for any 48 29 other benefits and membership rights from the fund. 48 30 7. If a member is involuntarily terminated from covered 48 31 employment, has been issued payment for a refund, and is 48 32 retroactively reinstated in covered employment as a remedy for 48 33 an employment dispute, the member may receive credit for 48 34 membership service for the period covered by the refund 48 35 payment upon repayment to the department within ninety days 49 1 after the date of the order or agreement requiring 49 2 reinstatement of the amount of the refund plus interest that 49 3 would have accrued, as determined by the department. 49 46.8. The system is under no obligation to maintain the 49 5accumulated contributionmember account of a member who 49 6 terminates covered employment prior to December 31, 1998, if 49 7 the member was not vested at the time of termination. A 49 8 person who made contributions to the abolished system, who is 49 9 entitled to a refund in accordance with the provisions of this 49 10 chapter, and who has not claimed and received such a refund 49 11 prior to January 1, 1964, shall, if the person makes a claim 49 12 for refund after January 1, 1964, be required to submit proof 49 13 satisfactory to the department of the person's entitlement to 49 14 the refund. The department is under no obligation to maintain 49 15 thecontributionmember accounts of such persons after January 49 16 1, 1964. 49 177.9. Any member whose employment is terminated may elect 49 18 to leave the moneys in the member'saccumulated contributions49 19 member account in the retirement fund. 49 208.10. If an employee hired to fill a permanent position 49 21 terminates the employee's employment within six months from 49 22 the date of employment, the employer may file a claim with the 49 23 department for a refund of the funds contributed to the 49 24 department by the employer for the employee. 49 25 Sec. 64. Section 97B.53A, Code 1999, is amended to read as 49 26 follows: 49 27 97B.53A DUTY OF DEPARTMENT. 49 28Effective July 1, 1991, uponUpon a member's termination of 49 29 covered employment prior to the member's retirement, the 49 30 department shall send the member by first class mail, to the 49 31 member's last known mailing address, a notice setting forth 49 32 the balance and status of the member's account and 49 33 supplemental account and an explanation of the courses of 49 34 action available to the member under this chapter. 49 35 Sec. 65. Section 97B.53B, subsection 1, paragraph c, 50 1 unnumbered paragraph 1, Code 1999, is amended to read as 50 2 follows: 50 3 "Eligible rollover distribution" means all or any portion 50 4 of a member's account and supplemental account, except that an 50 5 eligible rollover distribution does not include any of the 50 6 following: 50 7 Sec. 66. Section 97B.60, Code 1999, is amended to read as 50 8 follows: 50 9 97B.60 ACTUARIAL INVESTIGATION. 50 10At least once in each two-year periodDuring calendar year 50 11 2002, and every four years thereafter, the department shall 50 12 cause an actuarial investigation to be made of all experience 50 13 under the retirement system. Pursuant to such an 50 14 investigation, the department shall, from time to time, 50 15 determine upon an actuarial basis the condition of the system 50 16 and shall report to the general assembly its findings and 50 17 recommendations. The department shall adopt from time to time 50 18 mortality tables and all other necessary factors for use in 50 19 all actuarial calculations required in connection with the 50 20 retirement system. 50 21 Sec. 67. Section 97B.70, Code 1999, is amended to read as 50 22 follows: 50 23 97B.70 INTEREST AND DIVIDENDS TO MEMBERS. 50 24 1. For calendar years prior to January 1, 1997, interest 50 25 at two percent per annum and interest dividends declared by 50 26 the department shall be credited to the member's contributions 50 27 and the employer's contributions to become part of the 50 28 accumulated contributions and accumulated employer 50 29 contributions thereby. 50 30 a. The average rate of interest earned shall be determined 50 31 upon the following basis: 50 32 (1) Investment income shall include interest and cash 50 33 dividends on stock. 50 34 (2) Investment income shall be accounted for on an accrual 50 35 basis. 51 1 (3) Capital gains and losses, realized or unrealized, 51 2 shall not be included in investment income. 51 3 (4) Mean assets shall include fixed income investments 51 4 valued at cost or on an amortized basis, and common stocks at 51 5 market values or cost, whichever is lower. 51 6 (5) The average rate of earned interest shall be the 51 7 quotient of the investment income and the mean assets of the 51 8 retirement fund. 51 9 b. The interest dividend shall be determined within sixty 51 10 days after the end of each calendar year as follows: 51 11 The dividend rate for a calendar year shall be the excess 51 12 of the average rate of interest earned for the year over the 51 13 statutory two percent rate plus twenty-five hundredths of one 51 14 percent. The average rate of interest earned and the interest 51 15 dividend rate in percent shall be calculated to the nearest 51 16 one hundredth, that is, to two decimal places. Interest and 51 17 interest dividends calculated pursuant to this subsection 51 18 shall be compounded annually. 51 19 2. For calendar years beginning January 1, 1997, a per 51 20 annum interest rate at one percent above the interest rate on 51 21 one-year certificates of deposit shall be credited to the 51 22 member's contributions and the employer's contributions to 51 23 become part of the accumulated contributions and accumulated 51 24 employer contributions account. For purposes of this 51 25 subsection, the interest rate on one-year certificates of 51 26 deposit shall be determined by the department based on the 51 27 average rate for such certificates of deposit as of the first 51 28 business day of each year as published in a publication of 51 29 general acceptance in the business community. The per annum 51 30 interest rate shall be credited on a quarterly basis by 51 31 applying one-quarter of the annual interest rate to the sum of 51 32 the accumulated contributions and the accumulated employer 51 33 contributions as of the end of the previous calendar quarter. 51 34 3. Interest shall be credited to the accumulated 51 35 contributions and accumulated employer contributions accounts, 52 1 and supplemental accounts of active members, inactive vested 52 2 members, and, effective January 1, 1999, to inactive nonvested 52 3 members, until the quarter prior to the quarter in which the 52 4 member's first retirement allowance is paid or in which the 52 5 member is issued a refund under section 97B.53, or in which a 52 6 death benefit is issued. 52 7 4. Prior to January 1, 1999, interest and interest 52 8 dividends shall be credited to the accumulated contributions 52 9 and accumulated employer contributions account of a person who 52 10 leaves the contributions in the retirement fund upon 52 11 termination from covered employment prior to achieving vested 52 12 status, but who subsequently returns to covered employment. 52 13 Upon return to covered employment but prior to January 1, 52 14 1999, interest and interest dividends shall be credited to the 52 15 accumulated contributions and accumulated employer 52 16 contributions account of the person commencing upon the date 52 17 on which the person has covered wages. 52 18 5. If the department no longer maintains the accumulated 52 19 contribution and accumulated employer contributions account of 52 20 the person pursuant to this chapter, but the person submits 52 21 satisfactory proof to the department that the person, or the 52 22 person's employer, did makethecontributions that should be 52 23 included in the accumulated contributions and accumulated 52 24 employer contributions account, the department shall credit 52 25 interest and interest dividends in the manner provided in 52 26 subsection 4. 52 27 Sec. 68. Section 97B.73, subsection 1, Code 1999, is 52 28 amended to read as follows: 52 29 1. a. A vested or retired member who has one or more full 52 30 calendar years of covered wages who was in public employment 52 31 comparable to employment covered under this chapter in another 52 32 state or in the federal government, or who was a member of 52 33 another public retirement system in this state, including but 52 34 not limited to the teachers insurance annuity association- 52 35 college retirement equities fund, but who was not retired 53 1 under that system, upon submitting verification of membership 53 2 and service in the other public system to the department, 53 3 including proof that the member has no further claim upon a 53 4 retirement benefit from that other public system, may make 53 5 contributions as provided by this section to the system either 53 6 for the entire period of service in the other public system, 53 7 or for partial service in the other public system in 53 8 increments of one or more calendar quarters. If the member 53 9 wishes to transfer only a portion of the service value of 53 10 another public system to this system and the other public 53 11 system allows a partial withdrawal of a member's system 53 12 credits, the member shall receive credit for membership 53 13 service in this system equivalent to the period of service 53 14 transferred from the other public system. 53 15 b. A vested or retired member who has five or more full 53 16 calendar years of covered wages who was in public employment 53 17 comparable to employment covered under this chapter in a 53 18 qualified Canadian governmental entity may make contributions 53 19 as provided by this section to the system and receive service 53 20 credit, in increments of one or more calendar quarters, for up 53 21 to the lesser of twenty quarters of service credit for such 53 22 employment or the entire period of service in the other public 53 23 system. Prior to receiving service credit, the member shall 53 24 submit verification of membership and service in the other 53 25 public system to the department, including proof that the 53 26 member has no further claim upon a retirement benefit from 53 27 that other public system. If the member wishes to transfer 53 28 only a portion of the service value of another public system 53 29 to this system and the other public system allows a partial 53 30 withdrawal of a member's system credits, the member shall 53 31 receive credit for membership service in this system 53 32 equivalent to the period of service transferred from the other 53 33 public system. For purposes of this paragraph, "qualified 53 34 Canadian governmental entity" means an elementary school, 53 35 secondary school, college, or university that is organized, 54 1 administered, and primarily supported by the provincial, 54 2 territorial, or federal governments of Canada, or any 54 3 combination of the same. 54 4 Sec. 69. NEW SECTION. 97B.73B PATIENT ADVOCATES – 54 5 UNPAID CONTRIBUTIONS – SERVICE PURCHASE. 54 6 1. Notwithstanding the provisions of section 97B.9, to the 54 7 contrary, unpaid contributions for a person classified as a 54 8 patient advocate under section 229.19, for service as a 54 9 patient advocate prior to July 1, 2000, shall be determined 54 10 and collected as provided under section 97B.9, subsection 4, 54 11 but shall be limited to the collection of underpaid 54 12 contributions for a maximum of one year of service. 54 13 2. A patient advocate who becomes covered under this 54 14 chapter and for whom underpaid contributions for one year of 54 15 service have been paid shall be eligible to purchase 54 16 membership service for service as a patient advocate prior to 54 17 July 1, 2000, in excess of the one year of service provided in 54 18 this section by paying the department of personnel an amount 54 19 determined as follows: 54 20 a. For a purchase of membership service prior to July 1, 54 21 2002, the total of the employee and employer contributions, 54 22 without interest, on the covered wages that would have been 54 23 reported to the department under the provisions of this 54 24 chapter in effect for the applicable period of service. 54 25 b. For a purchase of membership service on or after July 54 26 1, 2002, the actuarial cost of the service purchase in a 54 27 manner as provided in section 97B.73. 54 28 Sec. 70. NEW SECTION. 97B.80A PUBLIC EMPLOYMENT SERVICE 54 29 CREDIT. 54 30 1. A vested or retired member who has five or more full 54 31 calendar years of covered wages and who at any time was 54 32 employed by a covered employer under this chapter but at the 54 33 time of the employment was not covered by this chapter and did 54 34 not opt out of coverage under this chapter, upon submitting 54 35 verification of the public employment and the dates of the 55 1 public employment, may make contributions to the system for up 55 2 to the lesser of twenty quarters of service credit for such 55 3 public employment or the entire period of the public 55 4 employment, in increments of one or more calendar quarters, 55 5 and receive credit for membership service and prior service 55 6 for the period of time for which the contributions are made. 55 7 2. The contributions required to be made for purposes of 55 8 this section shall be in an amount equal to the actuarial cost 55 9 of the service purchase. For purposes of this subsection, the 55 10 actuarial cost of the service purchase is an amount determined 55 11 by the department in accordance with actuarial tables, as 55 12 reported to the department by the system's actuary, which 55 13 reflects the actuarial cost necessary to fund an increased 55 14 retirement allowance resulting from the purchase of additional 55 15 service. 55 16 3. The verification of the public employment and the dates 55 17 of such public employment shall be made by the department 55 18 prior to receiving contributions from the member. 55 19 4. A member eligible for an increased retirement allowance 55 20 because of the payment of contributions under this section is 55 21 entitled to receipt of retroactive adjustment payments for no 55 22 more than six months immediately preceding the month in which 55 23 the member pays contributions under this section. 55 24 5. A purchase of service made in accordance with this 55 25 section by a retired reemployed member shall be applied to 55 26 either the member's original retirement allowance, or to the 55 27 member's reemployment service, whichever is more beneficial to 55 28 the member. If applied to a member's original retirement 55 29 allowance, or to the member's reemployment service after the 55 30 retirement allowance payments for such service begin, the 55 31 member is eligible to receive retroactive adjustment payments 55 32 for no more than six months prior to completion of the 55 33 purchase. 55 34 6. The department shall ensure that the member, in 55 35 exercising an option provided in this section, does not exceed 56 1 the amount of annual additions to a member's account permitted 56 2 pursuant to section 415 of the federal Internal Revenue Code. 56 3 Sec. 71. NEW SECTION. 97B.80B VOLUNTEER PUBLIC SERVICE 56 4 CREDIT. 56 5 1. A vested or retired member who has five or more full 56 6 calendar years of covered wages and who at any time was in 56 7 full-time volunteer public service, upon submitting 56 8 verification of the full-time volunteer public service and the 56 9 dates of the service, may make contributions to the system for 56 10 up to the lesser of twenty quarters of service credit for such 56 11 volunteer public service or the entire period of the volunteer 56 12 public service, in increments of one or more calendar 56 13 quarters, and receive credit for membership service and prior 56 14 service for the period of time for which the contributions are 56 15 made. For purposes of this section, "full-time volunteer 56 16 public service" means service in the federal peace corps 56 17 program. 56 18 2. The contributions required to be made for purposes of 56 19 this section shall be in an amount equal to the actuarial cost 56 20 of the service purchase. For purposes of this subsection, the 56 21 actuarial cost of the service purchase is an amount determined 56 22 by the department in accordance with actuarial tables, as 56 23 reported to the department by the system's actuary, which 56 24 reflects the actuarial cost necessary to fund an increased 56 25 retirement allowance resulting from the purchase of additional 56 26 service. 56 27 3. The verification of the full-time volunteer public 56 28 service and the dates of such service shall be made by the 56 29 department prior to receiving contributions from the member. 56 30 4. A member eligible for an increased retirement allowance 56 31 because of the payment of contributions under this section is 56 32 entitled to receipt of retroactive adjustment payments for no 56 33 more than six months immediately preceding the month in which 56 34 the member pays contributions under this section. 56 35 5. A purchase of service made in accordance with this 57 1 section by a retired reemployed member shall be applied to 57 2 either the member's original retirement allowance, or to the 57 3 member's reemployment service, whichever is more beneficial to 57 4 the member. If applied to a member's original retirement 57 5 allowance, or to the member's reemployment service after the 57 6 retirement allowance payments for such service begin, the 57 7 member is eligible to receive retroactive adjustment payments 57 8 for no more than six months prior to completion of the 57 9 purchase. 57 10 6. The department shall ensure that the member, in 57 11 exercising an option provided in this section, does not exceed 57 12 the amount of annual additions to a member's account permitted 57 13 pursuant to section 415 of the federal Internal Revenue Code. 57 14 Sec. 72. NEW SECTION. 97B.82 PURCHASE OF SERVICE CREDIT 57 15 – DIRECT ROLLOVERS. 57 16 Effective July 1, 2002, a member may purchase any service 57 17 credit permitted under this chapter by means of a direct 57 18 rollover pursuant to rules adopted by the department and 57 19 consistent with applicable requirements of the Internal 57 20 Revenue Code. For purposes of this section, a "direct 57 21 rollover" means a transfer to the system of an eligible 57 22 rollover distribution from a qualified plan, including an 57 23 eligible rollover distribution of qualified plan assets made 57 24 through a conduit eligible retirement plan, all as described 57 25 under the Internal Revenue Code. The amount of the direct 57 26 rollover into the system cannot exceed the cost of the service 57 27 purchase by a member under this chapter. Once a direct 57 28 rollover is made, the member must forfeit the applicable 57 29 service credit under the qualified plan from which the 57 30 eligible rollover distribution is received. 57 31 Sec. 73. Section 97B.13, Code 1999, is repealed. 57 32 Sec. 74. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – 57 33 PAYMENT OF ALLOWANCES – ACTIVE MEMBER RETIREMENT. 57 34 Notwithstanding any provision of chapter 97B to the contrary, 57 35 an eligible member who terminates employment covered by 58 1 chapter 97B on or after January 1, 2000, shall have the 58 2 member's monthly retirement allowance recalculated using the 58 3 applicable formula for determining a retirement allowance 58 4 pursuant to sections 97B.49A through 97B.49G, as applicable, 58 5 in place at the time of the member's termination from 58 6 employment. For purposes of this section, an "eligible 58 7 member" is a member who commenced receiving a retirement 58 8 allowance pursuant to section 97B.48, subsection 3, prior to 58 9 July 1, 2000. 58 10 Sec. 75. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – DEATH 58 11 BENEFIT ELECTION. 58 12 1. Notwithstanding any provision of chapter 97B to the 58 13 contrary, an eligible beneficiary may elect to receive a death 58 14 benefit as provided by this section in an amount as authorized 58 15 pursuant to section 53 of this Act. For purposes of this 58 16 section, an "eligible beneficiary" means a person who is 58 17 eligible to receive, or has received, a death benefit pursuant 58 18 to Iowa Code section 97B.52, subsection 1, Code 1999, as a 58 19 beneficiary of a member of the Iowa public employees' 58 20 retirement system who died on or after January 1, 1999, but 58 21 before the date section 53 of this Act is implemented pursuant 58 22 to section 81 of this Act. 58 23 2. An eligible beneficiary may elect to receive a death 58 24 benefit in an amount as provided in section 53 of this Act in 58 25 lieu of a benefit as provided pursuant to section 97B.52, 58 26 subsection 1, Code 1999, by filing a valid election with the 58 27 Iowa public employees' retirement system in a manner 58 28 prescribed by the system no later than one year following the 58 29 date section 53 of this Act is implemented pursuant to section 58 30 81 of this Act. 58 31 3. An eligible beneficiary who has received a death 58 32 benefit pursuant to section 97B.52, subsection 1, Code 1999, 58 33 but who files an election to receive a death benefit as 58 34 provided in this section shall make arrangements with the Iowa 58 35 public employees' retirement system to repay any death 59 1 benefits paid by the system to the eligible beneficiary prior 59 2 to receipt of a death benefit as provided in this section. 59 3 4. The Iowa public employees' retirement system shall make 59 4 all reasonable efforts to notify, in writing, each eligible 59 5 beneficiary of the ability to elect to receive a death benefit 59 6 as provided in this section in lieu of a death benefit 59 7 provided pursuant to section 97B.52, subsection 1, Code 1999. 59 8 Sec. 76. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 59 9 Section 17 of this Act, amending section 97B.1A, subsection 59 10 24, paragraph "b", being deemed of immediate importance, takes 59 11 effect upon enactment and is retroactively applicable to 59 12 January 1, 2000, and is applicable on and after that date. 59 13 Sec. 77. EFFECTIVE DATE. Section 44 of this Act, amending 59 14 section 97B.49F, subsection 2, paragraph "c", being deemed of 59 15 immediate importance, takes effect upon enactment. 59 16 Sec. 78. APPLICABILITY. Section 97B.51, subsection 1, 59 17 paragraph "d", subparagraph (2), as enacted in section 52 of 59 18 this Act, shall be applicable on or after July 1, 2001. 59 19 Sec. 79. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 59 20 Section 74 of this Act, being deemed of immediate importance, 59 21 takes effect upon enactment and is retroactively applicable to 59 22 January 1, 2000, and is applicable on and after that date. 59 23 Sec. 80. IMPLEMENTATION PROVISION. The department of 59 24 personnel shall implement the amendment to section 97B.50, 59 25 subsection 1, as provided in section 48 of this Act, on 59 26 January 1, 2001, or on the date that the department determines 59 27 that the most recent annual actuarial valuation of the system 59 28 indicates that the employer and employee contribution rates in 59 29 effect under section 97B.11 can absorb the costs of the 59 30 amendment to section 97B.50, subsection 1, whichever is later, 59 31 after meeting the other established priorities of the system. 59 32 As used in this section, "other established priorities of the 59 33 system" means the implementation of the amendment to section 59 34 97B.52, subsection 1, as provided in section 53 of this Act. 59 35 However, the amendment to section 97B.50, subsection 1, shall 60 1 not be implemented until the Iowa public employees' retirement 60 2 system has received a determination letter from the federal 60 3 internal revenue service approving the retirement system 60 4 plan's qualified status under Internal Revenue Code section 60 5 401(a), as amended by section 97B.50, subsection 1. In 60 6 addition, notwithstanding section 97B.49H, the department 60 7 shall not credit amounts to active member supplemental 60 8 accounts provided in section 97B.49H for the calendar year 60 9 beginning January 1, 2001, and each subsequent calendar year, 60 10 until the amendment to section 97B.50, subsection 1, is 60 11 implemented. 60 12 Sec. 81. IMPLEMENTATION PROVISION. The department of 60 13 personnel shall implement the amendment to section 97B.52, 60 14 subsection 1, as provided in section 53 of this Act on January 60 15 1, 2001, or on the date that the department determines that 60 16 the most recent annual actuarial valuation of the system 60 17 indicates that the employer and employee contribution rates in 60 18 effect under section 97B.11 can absorb the costs of the 60 19 amendment to section 97B.52, subsection 1, whichever is later. 60 20 However, notwithstanding section 97B.49H, the department shall 60 21 not credit amounts to active member supplemental accounts 60 22 provided in section 97B.49H for the calendar year beginning 60 23 January 1, 2001, and each subsequent calendar year, until the 60 24 amendment to section 97B.52, subsection 1, is implemented. 60 25 Sec. 82. IMPLEMENTATION DATE. Section 72 of this Act, 60 26 creating new section 97B.82 which establishes a direct 60 27 rollover for the purchase of service credit, shall not be 60 28 implemented until the Iowa public employees' retirement system 60 29 has received a determination letter from the federal internal 60 30 revenue service approving the retirement system plan's 60 31 qualified status under Internal Revenue Code section 401(a), 60 32 as amended by section 97B.82. 60 33 Sec. 83. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM – 60 34 PENSION PORTABILITY STUDY – REPORT. The Iowa public 60 35 employees' retirement system division shall conduct a study to 61 1 consider various proposals to provide persons covered under 61 2 the Iowa public employees' retirement system increased 61 3 portability of pensions earned prior to coverage under the 61 4 Iowa public employees' retirement system and of the pension 61 5 earned under the Iowa public employees' retirement system. In 61 6 conducting its study, the Iowa public employees' retirement 61 7 system division shall consider proposals for allowing 61 8 employees covered under the Iowa public employees' retirement 61 9 system to purchase additional service credit under the Iowa 61 10 public employees' retirement system based on prior public 61 11 sector or private sector employment that is not covered under 61 12 the system as well as proposals for enhancing the ability of 61 13 employees covered under the Iowa public employees' retirement 61 14 system to transfer a greater portion of the value of the 61 15 pension earned under the Iowa public employees' retirement 61 16 system to another pension plan upon the employee's termination 61 17 of employment covered by the Iowa public employees' retirement 61 18 system. On or before September 1, 2001, the Iowa public 61 19 employees' retirement system division shall file a report with 61 20 the legislative service bureau, for distribution to the public 61 21 retirement systems committee established in section 97D.4, 61 22 which contains its findings and recommendations, including any 61 23 proposal or proposals for enhancing pension portability for 61 24 persons covered by the Iowa public employees' retirement 61 25 system. The report shall also contain any applicable 61 26 actuarial information concerning the costs of any proposal or 61 27 proposals included in the report. 61 28 DIVISION III 61 29 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 61 30 Sec. 84. Section 400.8, subsection 1, Code 1999, is 61 31 amended to read as follows: 61 32 1. The commission, when necessary under the rules, 61 33 including minimum and maximum age limits, which shall be 61 34 prescribed and published in advance by the commission and 61 35 posted in the city hall, shall hold examinations for the 62 1 purpose of determining the qualifications of applicants for 62 2 positions under civil service, other than promotions, which 62 3 examinations shall be practical in character and shall relate 62 4 to matters which will fairly test the mental and physical 62 5 ability of the applicant to discharge the duties of the 62 6 position to which the applicant seeks appointment. The 62 7 physical examination of applicants for appointment to the 62 8 positions of police officer, police matron, or fire fighter 62 9 shall be held in accordance with medical protocols established 62 10 by the board of trustees of the fire and police retirement 62 11 system established by section 411.5 and shall be conducted by 62 12 the medical board as established in section 411.5. The board 62 13 of trustees may change the medical protocols at any time the 62 14 board so determines. Thecommission shall conduct a medical62 15 physical examination of an applicant for the position of 62 16 police officer, police matron, or fire fighter shall be 62 17 conducted after a conditional offer of employment has been 62 18 made to the applicant. An applicant shall not be 62 19 discriminated against on the basis of height, weight, sex, or 62 20 race in determining physical or mental ability of the 62 21 applicant. Reasonable rules relating to strength, agility, 62 22 and general health of applicants shall be prescribed. The 62 23 costs of the physical examination required under this 62 24 subsection shall be paid from the trust and agency fund of the 62 25 city. 62 26 Sec. 85. NEW SECTION. 400.8A GUIDELINES FOR ONGOING 62 27 FITNESS FOR POLICE OFFICERS AND FIRE FIGHTERS. 62 28 The board of trustees of the fire and police retirement 62 29 system established by section 411.5, in consultation with the 62 30 medical board established in section 411.5, shall establish 62 31 and maintain protocols and guidelines for ongoing wellness and 62 32 fitness for police officers and fire fighters while in 62 33 service. The board of trustees may change the protocols and 62 34 guidelines at any time the board so determines. The protocols 62 35 and guidelines shall be established by the board of trustees 63 1 for the consideration of cities covered by this chapter and 63 2 may be applied by a city for the purpose of determining 63 3 continued wellness and fitness for members of the city's 63 4 police and fire departments. However, the protocols and 63 5 guidelines shall not be applied to members of a police or fire 63 6 department of a city who are covered by chapter 20 except 63 7 through the collective bargaining process as provided under 63 8 chapter 20. The medical board established in section 411.5 63 9 shall provide to cities and fire and police departments 63 10 assistance regarding the possible implementation and operation 63 11 of the protocols and guidelines for ongoing wellness and 63 12 fitness provided by this section. For purposes of this 63 13 section, "wellness and fitness" means the process by which 63 14 police officers and fire fighters maintain fitness for duty. 63 15 Sec. 86. Section 411.1, subsection 6, Code 1999, is 63 16 amended to read as follows: 63 17 6. "Child" means only surviving issue of a deceased active 63 18 or retired member, or a child legally adopted by a deceased 63 19 member prior to the member's retirement. "Child" includes 63 20 only an individual who is under the age of eighteen years, an 63 21 individual who is under the age of twenty-two years and is a 63 22 full-time student, or an individual who is disabled at the 63 23 time under the definitions used in section402202 of the 63 24 Social Security Act as amended if the disability occurred to 63 25 the individual during the time the individual was under the 63 26 age of eighteen years and the parent of the individual was an 63 27 active member of the system. 63 28 Sec. 87. Section 411.1, subsection 10, Code 1999, is 63 29 amended to read as follows: 63 30 10. "Medical board" shall mean theboard of physicians63 31 single medical provider network designated by the system as 63 32 the medical board as provided for in section 411.5. 63 33 Sec. 88. Section 411.1, subsection 12, Code 1999, is 63 34 amended to read as follows: 63 35 12. "Membership service" shall mean service as a police 64 1officersofficer or a firefightersfighter renderedsince64 2last becoming a member, or, where membership is regained as64 3provided in this chapter, all of such servicefor a city which 64 4 is credited as service pursuant to section 411.4. 64 5 Sec. 89. Section 411.1, subsection 19, Code 1999, is 64 6 amended to read as follows: 64 7 19. "Surviving spouse" shall mean the surviving spouse of 64 8 amarriage solemnized prior to retirement of adeceased member 64 9 from active service. Surviving spouse shall include a former 64 10 spouse only if the division of assets in the dissolution of 64 11 marriage decree pursuant to section 598.17 grants the former 64 12 spouse rights of a spouse under this chapter.If there is no64 13surviving spouse of a marriage solemnized prior to retirement64 14of a deceased member, surviving spouse includes a surviving64 15spouse of a marriage of two years or more duration solemnized64 16subsequent to retirement of the member.64 17 Sec. 90. Section 411.1A, Code 1999, is amended to read as 64 18 follows: 64 19 411.1A PURPOSE OF CHAPTER. 64 20 The purpose of this chapter is to promote economy and 64 21 efficiency in the municipal public safety service byproviding64 22 doing the following: 64 23 1. Provide an orderly means for police officers and fire 64 24 fighters to have a retirement system which will provide for 64 25 the payment of pensions to retired members and members 64 26 incurring disabilities, and to the surviving spouses and 64 27 dependents of deceased members. 64 28 2. Provide a comprehensive disability program for police 64 29 officers and fire fighters to include standards for entrance 64 30 physical examinations, guidelines for ongoing fitness and 64 31 wellness, disability pensions, and postdisability retirement 64 32 compliance requirements. 64 33 Sec. 91. Section 411.3, subsection 2, Code 1999, is 64 34 amended to read as follows: 64 35 2. Should any memberin any period of five consecutive65 1years after last becoming a member, be absent from service for65 2more than four yearscease to be employed as a police officer 65 3 or fire fighter by a city, or should the member become a 65 4 beneficiary or die, the member shall thereupon cease to be a 65 5 member of the system. 65 6 Sec. 92. Section 411.4, Code 1999, is amended to read as 65 7 follows: 65 8 411.4 SERVICE CREDITABLE. 65 9 1. Service for fewer than six months of a year is not 65 10 creditable as service. Service of six months or more of a 65 11 year is equivalent to one year of service, but in no case 65 12 shall more than one year of service be creditable for all 65 13 service in one calendar year, nor shall the system allow 65 14 credit as service for any period of more than one month 65 15 duration during which the member was absent without pay. 65 16 2. The system shall credit as service for a member of the 65 17 system a previous period of servicefor which theonly under 65 18 any of the following circumstances: 65 19 a. The member had withdrawn the member's accumulated 65 20 contributions, as defined in section 411.21, for the previous 65 21 period of service. 65 22 b. The member returned to service after an absence of 65 23 service of a period of less than four years from the last day 65 24 of the prior period of service. 65 25 c. The member returned to service after an absence of 65 26 service of a period of four or more years from the last day of 65 27 the prior period of service and the member had sufficient 65 28 service as of the last day of the prior period of service to 65 29 have been entitled to a retirement allowance on that date 65 30 under section 411.6, subsection 1, paragraph "b". 65 31 Sec. 93. Section 411.5, subsection 6, Code 1999, is 65 32 amended by adding the following new paragraph: 65 33 NEW PARAGRAPH. c. Notwithstanding any provision of 65 34 chapter 22 to the contrary, the system's records may be 65 35 released to any political subdivision, instrumentality, or 66 1 agency of the state solely for use in a civil or criminal law 66 2 enforcement activity pursuant to the requirements of this 66 3 paragraph. To obtain the records, the political subdivision, 66 4 instrumentality, or agency of the state shall, in writing, 66 5 certify to the system that the activity is authorized by law, 66 6 provide a written description of the information desired, and 66 7 describe the law enforcement activity for which the 66 8 information is sought. The system shall not be civilly or 66 9 criminally liable for the release of records in accordance 66 10 with the requirements of this paragraph. 66 11 Sec. 94. Section 411.5, subsection 8, Code 1999, is 66 12 amended to read as follows: 66 13 8. MEDICAL BOARD. Thesystemboard of trustees shall 66 14 designate a single medical provider network as the medical 66 15 boardto be composed of three physicians whofor the system. 66 16 The medical board shall arrange for and pass upon all medical 66 17 examinations required under the provisions of chapter 400 and 66 18 this chapter, except that forand shall assist the system in 66 19 all aspects of the comprehensive disability program described 66 20 in section 411.1A. For examinations required because of 66 21 disabilitythree physicians, a physician from theuniversity66 22of Iowa hospitals and clinics whomedical board specializing 66 23 in occupational medicine, and a second physician specializing 66 24 in an appropriate field of medicine as determined by the 66 25 occupational medicine physician shall pass upon the medical 66 26 examinations required for disability retirements, and shall 66 27 report to the system in writingitstheir conclusions and 66 28 recommendations upon all matters referred toitthe medical 66 29 board. Each report of a medical examination under section 66 30 411.6, subsections 3 and 5, shall include the medical board's 66 31 findings in accordance with section 411.6 as to the extent of 66 32 the member's physical impairment. 66 33 Sec. 95. Section 411.6, subsection 2, Code 1999, is 66 34 amended to read as follows: 66 35 2. ALLOWANCE ON SERVICE RETIREMENT. 67 1 a. The service retirement allowance for a member who 67 2 terminates service, other than by death or disability, prior 67 3 to July 1, 1990, shall consist of a pension which equals fifty 67 4 percent of the member's average final compensation. 67 5 b. The service retirement allowance for a member who 67 6 terminates service, other than by death or disability, on or 67 7 after July 1, 1990, but before July 1, 1992, shall consist of 67 8 a pension which equals fifty-four percent of the member's 67 9 average final compensation. 67 10 c. Commencing July 1, 1992, for members who terminate 67 11 service, other than by death or disability, on or after that 67 12 date, but before July 1, 2000, the system shall increase the 67 13 percentage multiplier of the member's average final 67 14 compensation by an additional two percent each July 1 until 67 15 reaching sixty percent of the member's average final 67 16 compensation. The applicable percentage multiplier shall be 67 17 the rate in effect on the date of the member's termination 67 18 from service. 67 19 d. Upon retirement from service on or after July 1, 2000, 67 20 a member shall receive a service retirement allowance which 67 21 shall consist of a pension which equals sixty-six percent of 67 22 the member's average final compensation. 67 23d.e. Commencing July 1, 1990, if the member has completed 67 24 more than twenty-two years of creditable service, the service 67 25 retirement allowance shall consist of a pension which equals 67 26 the amount provided inparagraphsparagraph "b",and"c", or 67 27 "d", plus an additional percentage as set forth below: 67 28 (1) For a member who terminates service, other than by 67 29 death or disability, on or after July 1, 1990, but before July 67 30 1, 1991, and who does not withdraw the member's contributions 67 31 pursuant to section 411.23, upon the member's retirement there 67 32 shall be added three-tenths percent of the member's average 67 33 final compensation for each year of service over twenty-two 67 34 years, excluding years of service after the member's fifty- 67 35 fifth birthday. However, this subparagraph does not apply to 68 1 more than eight additional years of service. 68 2 (2) For a member who terminates service, other than by 68 3 death or disability, on or after July 1, 1991, but before 68 4 October 16, 1992, and who does not withdraw the member's 68 5 contributions pursuant to section 411.23, upon the member's 68 6 retirement there shall be added six-tenths percent of the 68 7 member's average final compensation for each year of service 68 8 over twenty-two years, excluding years of service after the 68 9 member's fifty-fifth birthday. However, this subparagraph 68 10 does not apply to more than eight additional years of service. 68 11 (3) For a member who terminates service, other than by 68 12 death or disability, on or after October 16, 1992, but before 68 13 July 1, 1998, and who does not withdraw the member's 68 14 contributions pursuant to section 411.23, upon the member's 68 15 retirement there shall be added six-tenths percent of the 68 16 member's average final compensation for each year of service 68 17 over twenty-two years. However, this subparagraph does not 68 18 apply to more than eight additional years of service. 68 19 (4) For a member who terminates service, other than by 68 20 death or disability, on or after July 1, 1998, but before July 68 21 1, 2000, and who does not withdraw the member's contributions 68 22 pursuant to section 411.23, upon the member's retirement there 68 23 shall be added one and one-half percent of the member's 68 24 average final compensation for each year of service over 68 25 twenty-two years. However, this subparagraph does not apply 68 26 to more than eight additional years of service. 68 27 (5) For a member who terminates service, other than by 68 28 death or disability, on or after July 1, 2000, and who does 68 29 not withdraw the member's contributions pursuant to section 68 30 411.23, upon the member's retirement there shall be added two 68 31 percent of the member's average final compensation for each 68 32 year of service over twenty-two years. However, this 68 33 subparagraph does not apply to more than eight additional 68 34 years of service. 68 35 Sec. 96. Section 411.6, subsection 5, paragraph b, Code 69 1 1999, is amended to read as follows: 69 2 b. If a member in service or the chief of the police or 69 3 fire departments becomes incapacitated for duty as a natural 69 4 or proximate result of an injury or disease incurred in or 69 5 aggravated by the actual performance of duty at some definite 69 6 time or place or while acting, pursuant to order, outside the 69 7 city by which the member is regularly employed, the member, 69 8 upon being found to be temporarily incapacitated following a 69 9 medical examination as directed by the city, is entitled to 69 10 receive the member's full pay and allowances from the city's 69 11 general fund until re-examined as directed by the city and 69 12 found to be fully recovered or until the city determines that 69 13 the member is likely to be permanently disabled.TheIf the 69 14 temporary incapacity of a member continues more than sixty 69 15 days, or if the city expects the incapacity to continue more 69 16 than sixty days, the city shall notify the system of the 69 17 temporary incapacity. Upon notification by a city, the system 69 18 may refer the matter to the medical board for review and 69 19 consultation with the member's treating physician during the 69 20 temporary incapacity. Except as provided by this paragraph, 69 21 the board of trustees of the statewide system has no 69 22 jurisdiction over these matters until the city determines that 69 23 the disability is likely to be permanent. 69 24 Sec. 97. Section 411.6, subsection 6, paragraph c, Code 69 25 1999, is amended to read as follows: 69 26 c. Upon retirement for accidental disability on or after 69 27 July 1, 1998, a member shall receive an accidental disability 69 28 retirement allowance which shall consist of a pension in an 69 29 amount equal to the greater of sixty percent of the member's 69 30 average final compensation or the retirement allowance that 69 31 the member would receive under subsection 2 if the memberhas69 32 had attained fifty-five years of age. 69 33 Sec. 98. Section 411.6, subsection 7, unnumbered paragraph 69 34 1, Code 1999, is amended to read as follows: 69 35 Once each year during the first five years following the 70 1 retirement of a member on a disability retirement allowance, 70 2 and once in every three-year period thereafter, the system 70 3 may, and upon the member's application shall, require any 70 4 disability beneficiary who has not yet attained age fifty-five 70 5 to undergo a medical examination at a place designated by the 70 6 medical board. The examination shall be made by the medical 70 7 board or in special cases, by an additional physician or 70 8 physicians designated by such board. If any disability 70 9 beneficiary who has not attained the age of fifty-five refuses 70 10 to submit to the medical examination, the member's allowance 70 11 may be discontinued until withdrawal of such refusal, and if 70 12 the refusal continues for one year all rights in and to the 70 13 member's pension may be revoked by the system. For a 70 14 disability beneficiary who has not attained the age of fifty- 70 15 five and whose entitlement to a disability retirement 70 16 commenced on or after July 1, 2000, the medical board may, as 70 17 part of the examination required by this subsection, suggest 70 18 appropriate medical treatment or rehabilitation if, in the 70 19 opinion of the medical board, the recommended treatment or 70 20 rehabilitation would likely restore the disability beneficiary 70 21 to duty. 70 22 Sec. 99. Section 411.6, subsection 7, paragraph a, 70 23 unnumbered paragraph 1, Code 1999, is amended to read as 70 24 follows: 70 25 Should any beneficiary for either ordinary or accidental 70 26 disability, except a beneficiary who is fifty-five years of 70 27 age or overand would have completed twenty-two years of70 28service if the beneficiary had remained in active service, be 70 29 engaged in a gainful occupation paying more than the 70 30 difference between the member's net retirement allowance and 70 31 one and one-half times the earnable compensation of an active 70 32 member at the same position on the salary scale within the 70 33 member's rank as the member held at retirement, then the 70 34 amount of the member's retirement allowance shall be reduced 70 35 to an amount such that the member's net retirement allowance 71 1 plus the amount earned by the member shall equal one and one- 71 2 half times the amount of the current earnable compensation of 71 3 an active member at the same position on the salary scale 71 4 within the member's rank as the member held at retirement. 71 5 Should the member'searning capacityearnings be later 71 6 changed, the amount of the member's retirement allowance may 71 7 be further modified, provided that the new retirement 71 8 allowance shall not exceed the amount of the retirement 71 9 allowance adjusted by annual readjustments of pensions 71 10 pursuant to subsection 12 of this section nor an amount which 71 11 would cause the member's net retirement allowance, when added 71 12 to the amount earned by the beneficiary, to equal one and one- 71 13 half times the amount of the earnable compensation of an 71 14 active member at the same position on the salary scale within 71 15 the member's rank as the member held at retirement. A 71 16 beneficiary restored to active service at a salary less than 71 17 the average final compensation upon the basis of which the 71 18 member was retired at age fifty-five or greater, shall not 71 19 again become a member of the retirement system and shall have 71 20 the member's retirement allowance suspended while in active 71 21 service. If the rank or position held by the retired member 71 22 is subsequently abolished, adjustments to the allowable limit 71 23 on the amount of income which can be earned in a gainful 71 24 occupation shall be computed by the board of trustees as 71 25 though such rank or position had not been abolished and salary 71 26 increases had been granted to such rank or position on the 71 27 same basis as increases granted to other ranks and positions 71 28 in the department. For purposes of this paragraph, "net 71 29 retirement allowance" means the amount determined by 71 30 subtracting the amount paid during the previous calendar year 71 31 by the beneficiary for health insurance or similar health care 71 32 coverage for the beneficiary and the beneficiary's dependents 71 33 from the amount of the member's retirement allowance paid for 71 34 that year pursuant to this chapter. The beneficiary shall 71 35 submit sufficient documentation to the system to permit the 72 1 system to determine the member's net retirement allowance for 72 2 the applicable year. 72 3 Sec. 100. Section 411.6, subsection 7, Code 1999, is 72 4 amended by adding the following new paragraph: 72 5 NEW PARAGRAPH. c. Should a disability beneficiary under 72 6 age fifty-five be employed in a public safety occupation, the 72 7 disability beneficiary's retirement allowance shall cease. 72 8 Notwithstanding any provision of this chapter to the contrary, 72 9 if a disability beneficiary is employed in a public safety 72 10 occupation that would otherwise constitute membership service, 72 11 the disability beneficiary shall not become a member of the 72 12 system. For purposes of this paragraph, "public safety 72 13 occupation" means a peace officer, as defined in section 72 14 97A.1; a protection occupation, as defined in section 97B.49B; 72 15 a sheriff, deputy sheriff, or airport fire fighter, as defined 72 16 in section 97B.49C; and a police officer or fire fighter as 72 17 defined in section 411.1, who was not restored to active 72 18 service as provided by this subsection. 72 19 Sec. 101. Section 411.6, subsection 8, Code 1999, is 72 20 amended to read as follows: 72 21 8. ORDINARY DEATH BENEFIT. 72 22 a. Upon the receipt of proof of the death of a member in 72 23 service, or a member not in service who has completed four or 72 24 more years of service as provided in subsection 1, paragraph 72 25 "b", there shall be paid to the person designated by the 72 26 member to the system as the member's beneficiary, if the 72 27 member has had one or more years of membership service and no 72 28 pension is payable under subsection 9,anthe greater of the 72 29 following: 72 30 (1) An amount equal to fifty percent of the compensation 72 31 earnable by the member during the year immediately preceding 72 32 the member's death if the member is in service, or an amount 72 33 equal to fifty percent of the compensation earned by the 72 34 member during the member's last year of service if the member 72 35 is not in service. 73 1 (2) An amount the member would have been entitled to 73 2 withdraw pursuant to section 411.23 if the member had 73 3 terminated service on the date of the member's death. 73 4 b. In lieu of the payment specified in paragraph "a", a 73 5 beneficiary meeting the qualifications of paragraph "c" may 73 6 elect to receive a monthly pension equal to one-twelfth of 73 7 forty percent of the average final compensation of the member, 73 8 but not less than twenty percent of the monthly earnable 73 9 compensation paid to an active member holding the highest 73 10 grade in the rank of fire fighter, for a beneficiary of a 73 11 deceased member of a fire department, or the highest grade in 73 12 the rank of police patrol officer, for a beneficiary of a 73 13 deceased member of a police department, if the member was in 73 14 service at the time of death. For a member not in service at 73 15 the time of death, the pension shall be reduced as provided in 73 16 subsection 1, paragraph "b". 73 17 For a member not in service at the time of death, the 73 18 pension shall be paid commencing when the member would have 73 19 attained the age of fifty-five except that if there is a child 73 20 of the member, the pension shall be paid commencing with the 73 21 member's death until thechildren reach the age of eighteen,73 22or twenty-two if applicablechild of the member no longer 73 23 meets the definition of child as provided in section 411.1. 73 24 The pension shall resumecommencingwhen the member would have 73 25 attained the age of fifty-five. 73 26 For a member in service at the time of death, the pension 73 27 shall be paid commencing with the member's death. In addition 73 28 to the pension, there shall also be paid for each child of a 73 29 member, a monthly pension equal to six percent of the monthly 73 30 earnable compensation paid to an active member holding the 73 31 highest grade in the rank of fire fighter, for a child of a 73 32 deceased member of a fire department, or the highest grade in 73 33 the rank of police patrol officer, for a child of a deceased 73 34 member of a police department. 73 35 Notwithstanding section 411.6, subsection 8, Code 1985, 74 1 effective July 1, 1990, for a member's surviving spouse who, 74 2 prior to July 1, 1986, elected to receive pension benefits 74 3 under this paragraph, the monthly pension benefit shall be 74 4 equal to the higher of one-twelfth of forty percent of the 74 5 average final compensation of the member, or the amount the 74 6 surviving spouse was receiving on July 1, 1990. 74 7 c. The pension under paragraph "b" may be selected only by 74 8 the following beneficiaries: 74 9 (1) The spouse. 74 10 (2) If there is no spouse, or if the spouse dies and there 74 11 is a child of a member, then theguardian of themember's 74 12 child or children,divided as the system determines, to74 13continue as a joint and survivor pension until every child of74 14the member dies or attains the age of eighteen, or twenty-two74 15if applicablein equal shares. The pension to each child 74 16 shall terminate when the child no longer meets the definition 74 17 of child in section 411.1. 74 18 (3) If there is no surviving spouse or child, then the 74 19 member's dependent father or mother, or both, as the system 74 20 determines, to continue until remarriage or death. 74 21 d. Ifthere is no nomination ofthe member failed to 74 22 designate a beneficiary, or if the beneficiary designated by 74 23 the member predeceases the member, the benefits provided in 74 24 paragraph "a" of this subsection shall be paidto the member's74 25estate.as follows in the following order of priority: 74 26 (1) To the member's surviving spouse. 74 27 (2) To the member's surviving children, including any 74 28 adult children, in equal shares. 74 29 (3) To the member's surviving parents, in equal shares. 74 30 (4) To the member's estate. 74 31 (5) To the member's heirs if the estate is not probated. 74 32 Sec. 102. Section 411.6, subsection 9, Code 1999, is 74 33 amended to read as follows: 74 34 9. ACCIDENTAL DEATH BENEFIT. 74 35 a. If, upon the receipt of evidence and proof from the 75 1 chief of the police or fire department that the death of a 75 2 member in service was the natural and proximate result of an 75 3 injury or disease incurred in or aggravated by the actual 75 4 performance of duty at some definite time and place, or while 75 5 acting pursuant to order, outside of the city by which the 75 6 member is regularly employed, the system decides that death 75 7 was so caused in the performance of duty, there shall be paid, 75 8 in lieu of the ordinary death benefit provided in subsection 75 9 8,to the member's estate or to such person having an75 10insurable interest in the member's life as the member has75 11nominated by written designation duly executed and filed with75 12the system, the benefitsan accidental death benefit as set 75 13 forth inparagraphs "a" and "b" ofthis subsection:. Disease 75 14 under this subsection shall mean heart disease or any disease 75 15 of the lungs or respiratory tract and shall be presumed to 75 16 have been contracted while on active duty as a result of 75 17 strain or the inhalation of noxious fumes, poison, or gases. 75 18a.b.AAn accidental death benefit pension equal to one- 75 19 half of the average final compensation of the member shall be 75 20 paidto the member's spouse, children or dependent parents as75 21provided in paragraphs "c", "d", and "e" of subsection 8 of75 22this section. Thereas follows: 75 23 (1) To the member's spouse. 75 24 (2) If there is no spouse, or if the spouse dies and there 75 25 is a child of the member, then to the member's child or 75 26 children in equal shares. The pension to each child shall 75 27 terminate when the child no longer meets the definition of 75 28 child in section 411.1. 75 29 (3) If there is no surviving spouse or child, then to the 75 30 member's dependent father or mother, or both, as the system 75 31 determines, to continue until remarriage or death. 75 32 c. In addition to the accidental death benefit pension 75 33 provided in paragraph "b", there shall also be paid for each 75 34 child of a member a monthly pension equal to six percent of 75 35 the monthly earnable compensation paid to an active member 76 1 holding the highest grade in the rank of fire fighter, for a 76 2 child of a deceased member of a fire department, or holding 76 3 the highest grade in the rank of police patrol officer, for a 76 4 child of a deceased member of a police department. 76 5 d. A person eligible to receive the pension payable under 76 6 paragraph "b" of this subsection may elect to receive the 76 7 benefit payable under subsection 8, paragraph "a", in lieu of 76 8 the pension provided in paragraph "b" of this subsection. 76 9b.e. If there is nospouse, child, or dependent parent76 10surviving a deceased memberperson entitled to the pension 76 11 payable under paragraph "b" of this subsection, the death 76 12 shall be treated as an ordinary death case and the benefit 76 13 payable under subsection 8, paragraph "a", in lieu of the 76 14 pension provided in paragraph "a" of this subsection, shall be 76 15 paidto the member's estateas provided by that subsection. 76 16Disease under this subsection shall mean heart disease or76 17any disease of the lungs or respiratory tract and shall be76 18presumed to have been contracted while on active duty as a76 19result of strain or the inhalation of noxious fumes, poison,76 20or gases.76 21 Sec. 103. Section 411.6, subsection 11, Code 1999, is 76 22 amended to read as follows: 76 23 11. Pension to spouse and children of deceased pensioned 76 24 member. In the event of the death of any member receiving a 76 25 retirement allowance under the provisions of subsections 2, 4, 76 26 or 6 of this section there shall be paid a pension: 76 27 a. To the spouse, equal to one-half the amount received by 76 28 the deceased beneficiary, but in no instance less than twenty 76 29 percent of the monthly earnable compensation paid to an active 76 30 member holding the highest grade in the rank of fire fighter, 76 31 for a beneficiary of a deceased member of the fire department, 76 32 or the highest grade in the rank of police patrol officer, for 76 33 a beneficiary of a deceased member of a police department, and 76 34 in addition a monthly pension equal to the monthly pension 76 35 payable under subsection 9 of this section for each child 77 1under eighteen years of age or twenty-two years of age if77 2applicable; or 77 3 b. If the spouse dies either prior or subsequent to the 77 4 death of the member, to the guardian of each surviving child, 77 5 a monthly pension equal to the monthly pension payable under 77 6 subsection 9 of this section for the support of the child. 77 7 Sec. 104. Section 411.6, Code 1999, is amended by adding 77 8 the following new subsection: 77 9 NEW SUBSECTION. 14. BENEFICIARY DESIGNATION. A member 77 10 may designate, in writing on a form prescribed by the system, 77 11 any person or persons to whom the system will pay a death 77 12 benefit under this section in the event of the member's death. 77 13 If the member is married at the time a designation is signed, 77 14 a designation of a beneficiary other than the member's spouse 77 15 shall not be valid unless the member's spouse consents in 77 16 writing to the designation. A designation filed with the 77 17 system shall be deemed revoked if, subsequent to the 77 18 designation, a new designation is filed with the system, the 77 19 member marries, or the member divorces the individual who was 77 20 the member's named beneficiary. 77 21 Sec. 105. Section 411.6, Code 1999, is amended by adding 77 22 the following new subsection: 77 23 NEW SUBSECTION. 15. LINE OF DUTY DEATH BENEFIT. 77 24 a. If, upon the receipt of evidence and proof from the 77 25 chief of the police or fire department that the death of a 77 26 member in service was the direct and proximate result of a 77 27 traumatic personal injury incurred in the line of duty, the 77 28 system decides that death was so caused, there shall be paid, 77 29 to a person authorized to receive an accidental death benefit 77 30 as provided in subsection 9, paragraph "b", the amount of one 77 31 hundred thousand dollars, which shall be payable in a lump 77 32 sum. 77 33 b. A line of duty death benefit shall not be payable under 77 34 this subsection if any of the following applies: 77 35 (1) The death resulted from stress, strain, occupational 78 1 illness, or a chronic, progressive, or congenital illness, 78 2 including, but not limited to, a disease of the heart, lungs, 78 3 or respiratory system, unless a traumatic personal injury was 78 4 a substantial contributing factor to the member's death. 78 5 (2) The death was caused by the intentional misconduct of 78 6 the member or by the member's intent to cause the member's own 78 7 death. 78 8 (3) The member was voluntarily intoxicated at the time of 78 9 death. 78 10 (4) The member was performing the member's duties in a 78 11 grossly negligent manner at the time of death. 78 12 (5) An individual who would otherwise be entitled to a 78 13 benefit under this subsection was, through the individual's 78 14 actions, a substantial contributing factor to the member's 78 15 death. 78 16 Sec. 106. Section 411.6, Code 1999, is amended by adding 78 17 the following new subsection: 78 18 NEW SUBSECTION. 16. INELIGIBILITY FOR DISABILITY 78 19 BENEFITS. 78 20 a. A member otherwise eligible to receive a disability 78 21 retirement benefit under this chapter shall not be eligible to 78 22 receive such a benefit if the system determines that any of 78 23 the following conditions for ineligibility apply: 78 24 (1) The disability would not exist but for the member's 78 25 chemical dependency, as defined in section 125.2, on a 78 26 schedule I controlled substance, as defined in section 78 27 124.204, or the member's chemical dependency on a schedule II 78 28 controlled substance, as defined in section 124.206, resulting 78 29 from the inappropriate use of the schedule II controlled 78 30 substance. 78 31 (2) The disability is a mental disability proximately 78 32 caused by appropriate disciplinary actions taken against the 78 33 member, or by conflicts with a superior or coworker if the 78 34 superior or coworker was acting legally and appropriately 78 35 toward the member when the conflicts occurred. 79 1 b. A member otherwise eligible to receive a disability 79 2 retirement benefit under this chapter, or who is receiving 79 3 such a benefit, shall not be eligible to receive such a 79 4 benefit beginning with the month following the determination 79 5 by the system that the disability would not exist but for the 79 6 action of the member for which the member has been convicted 79 7 of a felony. 79 8 c. A member eligible to commence receiving a disability 79 9 benefit on or after July 1, 2000, may be ineligible to receive 79 10 a disability retirement benefit if the system determines that 79 11 the member's alcoholism or drug addiction was a contributing 79 12 factor material to the determination of the member's 79 13 disability. Upon a determination that the member's alcoholism 79 14 or drug addiction was a contributing factor in the member's 79 15 disability, the system shall direct the member to undergo 79 16 substance abuse treatment that the medical board determines is 79 17 appropriate to treat the member's alcoholism or drug 79 18 addiction. After the end of a twenty-four-month period 79 19 following the member's first month of entitlement to a 79 20 disability benefit, the system shall reevaluate the member's 79 21 disability. If the system determines that the member failed 79 22 to comply with the treatment program prescribed by this 79 23 paragraph and that the member would not be disabled but for 79 24 the member's alcoholism or drug addiction, the member's 79 25 entitlement to a disability benefit under this chapter shall 79 26 terminate effective the first day of the first month following 79 27 the month the member is notified of the system's 79 28 determination. 79 29 Sec. 107. Section 411.6, Code 1999, is amended by adding 79 30 the following new subsection: 79 31 NEW SUBSECTION. 17. LIMITATIONS ON BENEFITS – PRISONERS. 79 32 a. An individual who is otherwise entitled to a retirement 79 33 allowance under this chapter shall not receive a retirement 79 34 allowance for any month during which both of the following 79 35 conditions exist: 80 1 (1) The individual is confined in a jail, prison, or 80 2 correctional facility pursuant to the individual's conviction 80 3 of a felony. 80 4 (2) The individual has a spouse, or a child or children, 80 5 as defined in section 411.1. 80 6 b. The amount of the retirement allowance not paid to the 80 7 individual under paragraph "a" shall be paid in the following 80 8 order of priority: 80 9 (1) To the individual's spouse, if any. 80 10 (2) If there is no spouse, then to the individual's child 80 11 or children, as defined in section 411.1. 80 12 c. This subsection shall not be construed in a manner that 80 13 impairs the rights of any individual under a marital property, 80 14 spousal support, or child support order. In addition, this 80 15 subsection shall not be construed to impair the statutory 80 16 rights of a governmental entity, including, but not limited 80 17 to, the right of a governmental entity to collect an amount 80 18 for deposit in the victim compensation fund established in 80 19 chapter 915. 80 20 Sec. 108. Section 411.11, Code 1999, is amended to read as 80 21 follows: 80 22 411.11 CONTRIBUTIONS BY THE CITY. 80 23 1. On or before January 1 of each year the system shall 80 24 certify to the superintendent of public safety of each 80 25 participating city the amounts which will become due and 80 26 payable during the year next following to the fire and police 80 27 retirement fund. The amounts so certified shall be included 80 28 by the superintendent of public safety in the annual budget 80 29 estimate. The amounts so certified shall be appropriated by 80 30 the respective cities and transferred to the retirement system 80 31 for the ensuing year. The cities shall annually levy a tax 80 32 sufficient in amount to cover the appropriations. 80 33 2. Amounts paid by a city to a member as back pay that 80 34 would have constituted earnable compensation if paid when 80 35 earned shall be allocated by the system as earnable 81 1 compensation to the period or periods for which paid and 81 2 employer and employee contributions shall be paid to the 81 3 system for the amounts. The contribution rate to be applied 81 4 to such amounts shall be determined pursuant to section 411.8 81 5 based on the rates in effect for the period or periods to 81 6 which the amounts are allocated. Interest on the 81 7 contributions required to be paid shall be calculated pursuant 81 8 to this section as if the contributions were unpaid as of the 81 9 date the contributions would have been due if the back pay had 81 10 been paid to the member during the period in which it was due. 81 11 The requirements of this subsection apply regardless of 81 12 whether the back pay is made under a covenant not to sue, 81 13 compromise settlement, denial of liability, or other agreement 81 14 between the member and the employer. 81 15 3. Contributions unpaid on the date on which they are due 81 16 and payable as prescribed by the system shall bear interest at 81 17 the greater of the interest rate assumption adopted by the 81 18 board of trustees or the rate of interest on the short-term 81 19 investment fund account of the system's custodial bank for the 81 20 period the contributions remain unpaid. Interest due pursuant 81 21 to this section may be waived by the system pursuant to rules 81 22 adopted by the board. Interest collected pursuant to this 81 23 section shall be paid into the retirement fund created in 81 24 section 411.8. 81 25 4. If an employer fails to pay contributions or interest 81 26 as required by this chapter after receiving thirty days' 81 27 notice of the employer's obligation, the system may maintain a 81 28 civil action to collect the unpaid contributions and interest 81 29 from the employer, which action shall be heard as 81 30 expeditiously as possible. If the system prevails in the 81 31 civil action to recover unpaid contributions and interest, the 81 32 court shall require the employer to pay the costs of the 81 33 action. 81 34 Sec. 109. Section 411.22, Code 1999, is amended to read as 81 35 follows: 82 1 411.22 LIABILITY OF THIRD PARTIES – SUBROGATION. 82 2 1. If a member receives an injury or dies for which 82 3 benefits are payable under section 411.6, subsection 3,or5, 82 4 8, or 9, or section 411.15, and if the injury or death is 82 5 caused under circumstances creating a legal liability for 82 6 damages against a third party other than the retirement 82 7 system, the retirement system is subrogated to the rights of 82 8 the member or the member's legal representative beneficiary 82 9 entitled to receive a death benefit and may maintain an action 82 10 for damages against the third party for lost earnings and lost 82 11 earnings capacity. If the retirement system recovers damages 82 12 in the action, the court shall enter judgment for distribution 82 13 of the recovery as follows: 82 14 a. A sum sufficient to repay the retirement system for the 82 15 amount of such benefits actually paid by the retirement system 82 16 up to the time of the entering of the judgment. 82 17 b. A sum sufficient to pay the retirement system the 82 18 present worth, computed at the interest rate provided in 82 19 section 535.3 for court judgments and decrees, of the future 82 20 payments of such benefits, for which the retirement system is 82 21 liable, but the sum is not a final adjudication of the future 82 22 payments which the member is entitled to receive. 82 23 c. A sum sufficient to repay the retirement system for the 82 24 costs and expenses of maintaining the action. 82 25 d. Any balance remaining after the repayments provided by 82 26 paragraphs "a" through "c" shall be paid to the injured 82 27 member, or the beneficiary under section 411.6, subsection 8 82 28 or 9, whichever is applicable. 82 29 2. If the system, after receiving written notice of the 82 30 third-party liability, declines in writing to maintain an 82 31 action against the third party or fails to maintain an action 82 32 within one hundred eighty days of receiving written notice of 82 33 the third-party liability, the member, the member's estate, or 82 34 the legal representative of the member or the member's estate, 82 35 may maintain an action for damages against the third party. 83 1 Ifa member or a member's legal representative commencessuch 83 2 an action is commenced, the plaintiff member, estate, or 83 3 representative shall serve a copy of the original notice upon 83 4 the retirement system not less than ten days before the trial 83 5 of the action, but a failure to serve the notice does not 83 6 prejudice the rights of the retirement system, and the 83 7 following rights and duties ensue: 83 8 a. The retirement system shall be indemnified out of the 83 9 recovery of damages to the extent of benefit paymentsmade83 10 paid or awarded by the retirement system, with legal interest, 83 11 except that the plaintiff member's or estate's attorney fees 83 12 may be first allowed by the district court. For purposes of 83 13 this paragraph, "benefit payments paid or awarded" means the 83 14 sum of the following amounts: 83 15 (1) The amount of benefits actually paid by the retirement 83 16 system up to the time of the entering of the judgment. 83 17 (2) The present worth, computed at the interest rate 83 18 provided in section 535.3 for court judgments and decrees, of 83 19 the future payments of such benefits, for which the retirement 83 20 system is liable, but the sum is not a final adjudication of 83 21 the future payments which the member is entitled to receive. 83 22 b. The retirement system has a lien on the damage claim 83 23 against the third party and on any judgment on the damage 83 24 claim for benefits for which the retirement system is liable. 83 25 In order to continue and preserve the lien, the retirement 83 26 system shall file a notice of the lien within thirty days 83 27 after receiving a copy of the original notice in the office of 83 28 the clerk of the district court in which the action is filed. 83 292. If a member fails to bring an action for damages83 30against a third party within thirty days after the retirement83 31system requests the member in writing to do so, the retirement83 32system is subrogated to the rights of the member and may83 33maintain the action against the third party, and may recover83 34damages for the injury to the same extent that the member may83 35recover damages for the injury. If the retirement system84 1recovers damages in the action, the court shall enter judgment84 2for distribution of the recovery as follows:84 3a. A sum sufficient to repay the retirement system for the84 4amount of such benefits actually paid by the retirement system84 5up to the time of the entering of the judgment.84 6b. A sum sufficient to pay the retirement system the84 7present worth, computed at the interest rate provided in84 8section 535.3 for court judgments and decrees, of the future84 9payments of such benefits, for which the retirement system is84 10liable, but the sum is not a final adjudication of the future84 11payments which the member is entitled to receive.84 12c. Any balance shall be paid to the member.84 13 3. Before a settlement is effective between the retirement 84 14 system and a third party who is liable for an injury or death, 84 15 the member or beneficiary must consent in writing to the 84 16 settlement; and if the settlement is between the member or the 84 17 member's estate and a third party, the retirement system must 84 18 consent in writing to the settlement; or on refusal to 84 19 consent, in either case, the district court in the county in 84 20 which either the city or the retirement system is located must 84 21 consent in writing to the settlement. 84 22 4. For purposes of subrogation under this section, a 84 23 payment made to an injured member, a member's estate, or the 84 24member'slegal representative of the member or member's 84 25 estate, by or on behalf of a third party or the third party's 84 26 principal or agent, who is liable for, connected with, or 84 27 involved in causing the injurytoor death of the member, 84 28 shall be considered paid as damages because the injury or 84 29 death was caused under circumstances creating a legal 84 30 liability against the third party, whether the payment is made 84 31 under a covenant not to sue, compromise settlement, denial of 84 32 liability, or is otherwise made. 84 33 Sec. 110. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 84 34 Sections 88, 91, 92, 105, and 108 of this Act, amending 84 35 section 411.1, subsection 12; section 411.3; section 411.4; 85 1 section 411.6, by creating new subsection 15; and section 85 2 411.11, being deemed of immediate importance, take effect upon 85 3 enactment and are retroactively applicable to January 1, 1992, 85 4 and are applicable on and after that date. 85 5 Sec. 111. EFFECTIVE DATE. Section 87 of this Act amending 85 6 section 411.1, subsection 10, and section 94 of this Act, 85 7 amending section 411.5, subsection 8, take effect July 1, 85 8 2001. 85 9 DIVISION IV 85 10 JUDICIAL RETIREMENT SYSTEM 85 11 Sec. 112. Section 602.9104, subsection 1, Code 1999, is 85 12 amended to read as follows: 85 13 1. A judge to whom this article applies, shall be paid an 85 14 amount equal toninety-sixninety-five percent of the basic 85 15 salary of the judge as set by the general assembly. An amount 85 16 equal tofourfive percent of the basic salary of the judge as 85 17 set by the general assembly is designated as the judge's 85 18 contribution to the judicial retirement fund, and shall be 85 19 paid by the state in the manner provided in subsection 2. 85 20 Sec. 113. Section 602.9104, subsection 4, paragraph a, 85 21 subparagraph (2), Code 1999, is amended to read as follows: 85 22 (2) "Fully funded status" means that the most recent 85 23 actuarial valuation reflects that, using theaggregate cost85 24 projected unit credit method in accordance with generally 85 25 recognized and accepted actuarial principles and practices set 85 26 forth by the American academy of actuaries, the funded status 85 27 of the system is at least one hundred percent. 85 28 Sec. 114. Section 602.9104, subsection 4, paragraph b, 85 29 Code 1999, is amended to read as follows: 85 30 b. Effective with the fiscal year commencing July 1, 1994, 85 31 and for each subsequent fiscal year until the system attains 85 32 fully funded status, based upon the benefits provided for 85 33 judges through the judicial retirement system as of July 1, 85 34 2001, the state shall contribute annually to the judicial 85 35 retirement fund an amount equal to at least twenty-three and 86 1 seven-tenths percent of the basic salary of all judges covered 86 2 under this article. Commencing with the first fiscal year in 86 3 which the system attains fully funded status, based upon the 86 4 benefits provide for judges through the judicial retirement 86 5 system as of July 1, 2001, and for each subsequent fiscal 86 6 year, the state shall contribute to the judicial retirement 86 7 fund the required contribution rate. The state's contribution 86 8 shall be appropriated directly to the judicial retirement 86 9 fund. 86 10 Sec. 115. Section 602.9107, subsection 1, Code 1999, is 86 11 amended to read as follows: 86 12 1. a. The annual annuity of a judge under this system is 86 13 an amount equal to three percent of the judge's average annual 86 14 basic salary for the judge's last three years as a judge of 86 15 one or more of the courts included in this article, multiplied 86 16 by the judge's years of service as a judge of one or more of 86 17 the courts for which contributions were made to the system. 86 18 However, an annual annuity shall not exceed an amount equal to 86 19 a specified percentage of the basic annual salary which the 86 20 judge is receiving at the time the judge becomes separated 86 21 from service. Forfeitures shall not be used to increase the 86 22 annuities a judge or survivor would otherwise receive under 86 23 the system. 86 24 b. "Specified percentage", for purposes of this section, 86 25 means as follows: 86 26 (1) For judges who retire and receive an annuity prior to 86 27 July 1, 1998, the specified percentage shall be fifty percent. 86 28 (2) For judges who retire and receive an annuity on or 86 29 after July 1, 1998, but before July 1, 2000, the specified 86 30 percentage shall be fifty-two percent. 86 31 (3) For judges who retire and receive an annuity on or 86 32 after July 1, 2000, but before July 1, 2001, the specified 86 33 percentage shall be fifty-six percent. 86 34 (4) For judges who retire and receive an annuity on or 86 35 after July 1, 2001, the specified percentage shall be sixty 87 1 percent. 87 2 Sec. 116. Section 602.9204, Code Supplement 1999, is 87 3 amended to read as follows: 87 4 602.9204 SALARY – ANNUITY OF SENIOR JUDGE AND RETIRED 87 5 SENIOR JUDGE. 87 6 1. A judge who retires on or after July 1, 1994, and who 87 7 is appointed a senior judge under section 602.9203 shall be 87 8 paid a salary as determined by the general assembly. A senior 87 9 judge or retired senior judge shall be paid an annuity under 87 10 the judicial retirement system in the manner provided in 87 11 section 602.9109, but computed under this section in lieu of 87 12 section 602.9107, as follows: The annuity paid to a senior 87 13 judge or retired senior judge shall be an amount equal to 87 14 three percent of the basic senior judge salary, multiplied by 87 15 the judge's years of service prior to retirement as a judge of 87 16 one or more of the courts included under this article, for 87 17 which contributions were made to the system, except the 87 18 annuity of the senior judge or retired senior judge shall not 87 19 exceedfifty percentan amount equal to the applicable 87 20 specified percentage of the basic senior judge salary used in 87 21 calculating the annuity. However, following the twelve-month 87 22 period during which the senior judge or retired senior judge 87 23 attains seventy-eight years of age, the annuity paid to the 87 24 person shall be an amount equal to three percent of the basic 87 25 senior judge salary cap, multiplied by the judge's years of 87 26 service prior to retirement as a judge of one or more of the 87 27 courts included under this article, for which contributions 87 28 were made to the system, except that the annuity shall not 87 29 exceedfifty percentan amount equal to the applicable 87 30 specified percentage of the basic senior judge salary cap. A 87 31 senior judge or retired senior judge shall not receive 87 32 benefits calculated using a basic senior judge salary 87 33 established after the twelve-month period in which the senior 87 34 judge or retired senior judge attains seventy-eight years of 87 35 age. The state shall provide, regardless of age, to an active 88 1 senior judge or a senior judge with six years of service as a 88 2 senior judge and to the judge's spouse, and pay for medical 88 3 insurance until the judge attains the age of seventy-eight 88 4 years. 88 5 2. As used in this section, unless the context otherwise 88 6 requires: 88 7 a. "Applicable specified percentage" means, for a senior 88 8 judge or retired senior judge, the specified percentage, as 88 9 defined in section 602.9107, subsection 1, that applied on the 88 10 date the judge was separated from full-time service. 88 11a.b. "Basic senior judge salary" means the basic annual 88 12 salary which the judge is receiving at the time the judge 88 13 becomes separated from full-time service, as would be used in 88 14 computing an annuity pursuant to section 602.9107 without 88 15 service as a senior judge, plus seventy-five percent of the 88 16 escalator. 88 17b.c. "Basic senior judge salary cap" means the basic 88 18 senior judge salary, at the end of the twelve-month period 88 19 during which the senior judge or retired senior judge attained 88 20 seventy-eight years of age, of the office in which the person 88 21 last served as a judge before retirement as a judge or senior 88 22 judge. 88 23c.d. "Escalator" means the difference between the current 88 24 basic salary, as of the time each payment is made up to and 88 25 including the twelve-month period during which the senior 88 26 judge or retired senior judge attains seventy-eight years of 88 27 age, of the office in which the senior judge last served as a 88 28 judge before retirement as a judge or senior judge, and the 88 29 basic annual salary which the judge is receiving at the time 88 30 the judge becomes separated from full-time service as a judge 88 31 of one or more of the courts included in this article, as 88 32 would be used in computing an annuity pursuant to section 88 33 602.9107 without service as a senior judge. 88 34 Sec. 117. JUDICIAL RETIREMENT SYSTEM – LEGISLATIVE INTENT 88 35 – NOTIFICATION – REPORT. 89 1 1. It is the intent of the general assembly that once the 89 2 judicial retirement system attains fully funded status based 89 3 upon the benefits provided for judges through July 1, 2001, 89 4 the employer and employee contribution rates established to 89 5 fund the judicial retirement system should be adjusted to 89 6 reflect the ratio of employer and employee contribution rates 89 7 required under the Iowa public employees' retirement system. 89 8 2. The state court administrator shall notify, in writing, 89 9 the public retirement systems committee established in section 89 10 97D.4, when the state court administrator anticipates that the 89 11 judicial retirement system is within two additional fiscal 89 12 years of attaining fully funded status as defined in section 89 13 602.9104 based upon the benefits provided for judges through 89 14 July 1, 2001. In addition, the state court administrator 89 15 shall, following the notification to the committee as provided 89 16 in this section and in consultation with the Iowa judges 89 17 association, conduct a study and submit a report, including 89 18 its findings and recommendations, to the public retirement 89 19 systems committee prior to the next scheduled meeting of the 89 20 committee concerning appropriate methods of adequately 89 21 financing the judicial retirement system once the system 89 22 reaches fully funded status. In conducting the study, the 89 23 state court administrator shall consider, and make 89 24 recommendations concerning, the appropriateness of funding the 89 25 judicial retirement system by establishing employer and 89 26 employee contribution rates which shall maintain the actuarial 89 27 soundness of the system and which shall reflect the intent of 89 28 the general assembly as contemplated in subsection 1. 89 29 Sec. 118. FIRE FIGHTER AND EMERGENCY MEDICAL SERVICES 89 30 PROVIDER BENEFITS – REPORT. The department of management 89 31 shall conduct a study concerning the possible implementation 89 32 of a system to provide retirement benefits to volunteer fire 89 33 fighters and emergency medical service personnel and to 89 34 provide death and survivor benefits, including but not limited 89 35 to providing for payment of postsecondary education expenses 90 1 of dependent children, when a volunteer fire fighter or 90 2 emergency medical service provider dies in the line of duty. 90 3 The study shall examine what benefits should be provided, if 90 4 any, as well as possible funding mechanisms to provide any 90 5 such proposed benefits, including the use of excess insurance 90 6 premium tax receipts, but excluding the fire and police 90 7 retirement fund created in section 411.8. In conducting the 90 8 study, the department shall consult with the department of 90 9 public safety; the department of personnel; and 90 10 representatives from the Iowa firemen's association; the Iowa 90 11 fire chief's association; the Iowa association of professional 90 12 firefighters; the Iowa association of professional fire 90 13 chiefs; the Iowa firefighters group; the state fire service 90 14 and emergency response council, if established by law, or the 90 15 fire service institute advisory committee established by 90 16 section 266.46; the Iowa emergency medical services 90 17 association; and the Iowa league of cities. The department 90 18 shall submit a report concerning the results of its study, 90 19 including any findings and recommendations, to the general 90 20 assembly by January 8, 2001. 90 21 SF 2411 90 22 ec/cc/26
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