Text: HF00397 Text: HF00399 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 97B.42, Code 2003, is amended by adding 1 2 the following new unnumbered paragraphs: 1 3 NEW UNNUMBERED PARAGRAPH. Notwithstanding any other 1 4 provision of this section, commencing July 1, 2004, a member 1 5 who is employed by a school district or area education agency 1 6 as an elementary or secondary school teacher may elect 1 7 coverage under the eligible alternative retirement benefits 1 8 system as provided in section 294.17, in lieu of continuing or 1 9 commencing contributions to the Iowa public employees' 1 10 retirement system. However, the employer's and employee's 1 11 annual contribution in dollars to the eligible alternative 1 12 retirement benefits system shall equal, but not exceed, the 1 13 annual contribution in dollars which the employer and employee 1 14 would contribute if the employee had elected to remain an 1 15 active member under this chapter, as set forth in section 1 16 97B.11. A member who elects coverage under the eligible 1 17 alternative retirement benefits system as provided by this 1 18 paragraph may withdraw the member's accumulated contributions 1 19 effective when coverage under the eligible alternative 1 20 retirement benefits system commences. A member who is 1 21 employed by a school district or area education agency as an 1 22 elementary or secondary school teacher prior to July 1, 2004, 1 23 must file an election for coverage under the eligible 1 24 alternative retirement benefits system described in section 1 25 294.17, with the division and the employing school district or 1 26 area education agency within eighteen months of the first day 1 27 on which coverage commences under the eligible alternative 1 28 retirement benefits system described in section 294.17, or the 1 29 employee shall remain a member under this chapter and shall 1 30 not be eligible to elect to participate in the eligible 1 31 alternative retirement benefits system at a later date. A 1 32 person hired on or after July 1, 2004, by a school district or 1 33 area education agency as an elementary or secondary school 1 34 teacher must file an election for coverage under the eligible 1 35 alternative retirement benefits system with the division and 2 1 the employing school district or area education agency within 2 2 sixty days of commencing employment, or the employee shall 2 3 remain a member under this chapter and shall not be eligible 2 4 to elect to participate in the eligible alternative retirement 2 5 benefits system at a later date. The division shall cooperate 2 6 with the state board of education and with applicable school 2 7 districts and area education agencies to facilitate the 2 8 implementation of this provision. 2 9 NEW UNNUMBERED PARAGRAPH. Notwithstanding any other 2 10 provision of this section, commencing July 1, 2004, a member 2 11 who is employed by a public hospital may elect coverage under 2 12 the eligible alternative retirement benefits system as 2 13 provided in section 347.14 or 392.6, in lieu of continuing or 2 14 commencing contributions to the Iowa public employees' 2 15 retirement system. However, the employer's and employee's 2 16 annual contribution in dollars to the eligible alternative 2 17 retirement benefits system shall equal, but not exceed, the 2 18 annual contribution in dollars which the employer and employee 2 19 would contribute if the employee had elected to remain an 2 20 active member under this chapter, as set forth in section 2 21 97B.11. A member who elects coverage under the eligible 2 22 alternative retirement benefits system as provided by this 2 23 paragraph may withdraw the member's accumulated contributions 2 24 effective when coverage under the eligible alternative 2 25 retirement benefits system commences. A member who is 2 26 employed by a public hospital prior to July 1, 2004, must file 2 27 an election for coverage under the eligible alternative 2 28 retirement benefits system described in section 347.14 or 2 29 392.6, with the division and the employing public hospital 2 30 within eighteen months of the first day on which coverage 2 31 commences under the eligible alternative retirement benefits 2 32 system described in section 347.14 or 392.6, or the employee 2 33 shall remain a member under this chapter and shall not be 2 34 eligible to elect to participate in the eligible alternative 2 35 retirement benefits system at a later date. A person hired on 3 1 or after July 1, 2004, by a public hospital must file an 3 2 election for coverage under the eligible alternative 3 3 retirement benefits system with the division and the employing 3 4 public hospital within sixty days of commencing employment, or 3 5 the employee shall remain a member under this chapter and 3 6 shall not be eligible to elect to participate in the eligible 3 7 alternative retirement benefits system at a later date. In 3 8 addition, an election by a member to participate in an 3 9 alternative retirement benefits system as provided by this 3 10 paragraph shall be irrevocable and the member shall not be 3 11 eligible to elect coverage under this chapter while employed 3 12 by a public hospital in this state that has made an 3 13 alternative retirement benefits system available. The 3 14 division shall cooperate with boards of trustees of public 3 15 hospitals authorized to offer an eligible alternative 3 16 retirement benefits system to facilitate the implementation of 3 17 this provision. 3 18 Sec. 2. Section 256.7, Code 2003, is amended by adding the 3 19 following new subsection: 3 20 NEW SUBSECTION. 26. By July 1, 2004, provide for the 3 21 establishment of an eligible alternative retirement benefits 3 22 system for elementary and secondary school teachers employed 3 23 by a school district or area education agency consistent with 3 24 the requirements of section 294.17. 3 25 Sec. 3. NEW SECTION. 294.17 ELIGIBLE ALTERNATIVE PENSION 3 26 AND ANNUITY RETIREMENT SYSTEM. 3 27 1. The state board of education shall establish an 3 28 eligible alternative pension and annuity retirement system, 3 29 hereafter called the "retirement system", effective July 1, 3 30 2004, for elementary and secondary school teachers employed by 3 31 a school district or area education agency pursuant to the 3 32 requirements of this section. The state board of education 3 33 shall be the plan sponsor of the retirement system and shall 3 34 file an application for a favorable determination letter for 3 35 the retirement system with the internal revenue service. 4 1 2. The state board of education shall select a provider of 4 2 the retirement system that is a financial institution capable 4 3 of providing bundled services for the retirement system, 4 4 including, but not limited to, administration, investment 4 5 management, employee education, and recordkeeping. In 4 6 selecting a provider, the state board of education shall place 4 7 primary emphasis on the reasonableness of services in relation 4 8 to cost, the ability and experience of the provider in 4 9 providing bundled retirement services to the educational 4 10 community, the financial stability of the provider, and the 4 11 ability of the provider to provide services as required by 4 12 this section. 4 13 3. To be an eligible alternative retirement benefits 4 14 system, the retirement system shall meet the following 4 15 requirements: 4 16 a. The retirement system shall be an employer-sponsored 4 17 defined contribution plan requiring mandatory employer 4 18 contributions that meet the requirements of section 401(a) of 4 19 the Internal Revenue Code. 4 20 b. The employer's and employee's annual contribution in 4 21 dollars under an eligible alternative retirement benefits 4 22 system described in this section shall equal, but not exceed, 4 23 the annual contribution in dollars which the employer and 4 24 employee would contribute if the employee had elected to 4 25 remain an active member pursuant to the Iowa public employees' 4 26 retirement system, as set forth in section 97B.11. 4 27 Contributions under the retirement system shall be treated in 4 28 the same manner as contributions under the Iowa public 4 29 employees' retirement system are treated pursuant to section 4 30 97B.11A. 4 31 c. Employer and employee contributions under the 4 32 retirement system shall be fully vested immediately. 4 33 d. Upon termination of employment as an elementary or 4 34 secondary school teacher employed by a school district or area 4 35 education agency, the teacher shall be eligible to receive a 5 1 benefit payable in at least any of the following forms: 5 2 (1) Payment of all or part of the teacher's account 5 3 balance in the retirement system in a lump sum. 5 4 (2) Payment based on the teacher's account balance in the 5 5 retirement system in monthly, quarterly, or annual 5 6 installments over a fixed reasonable period of time, not 5 7 exceeding the life expectancy of the teacher and the teacher's 5 8 beneficiary, if applicable. 5 9 (3) Payment based on the teacher's account balance in the 5 10 form of a single life or joint life and survivorship annuity. 5 11 4. Persons employed by a school district or area education 5 12 agency as an elementary or secondary school teacher on or 5 13 after July 1, 2004, may elect coverage under the retirement 5 14 system established in this section in lieu of coverage under 5 15 the Iowa public employees' retirement system, pursuant to the 5 16 requirements of section 97B.42. 5 17 Sec. 4. Section 347.14, Code 2003, is amended by adding 5 18 the following new subsection: 5 19 NEW SUBSECTION. 17. Provide an eligible alternative 5 20 retirement benefits system offered through the county hospital 5 21 pursuant to this subsection which is issued by or through an 5 22 insurance company authorized to issue annuity contracts in 5 23 this state for persons employed by the county hospital in lieu 5 24 of coverage under the Iowa public employees' retirement 5 25 system. For purposes of this paragraph, "eligible alternative 5 26 retirement benefits system" means an employer-sponsored 5 27 primary pension plan requiring mandatory employer 5 28 contributions that meets the requirements of section 401(a), 5 29 401(k), 403(a), or 403(b) of the Internal Revenue Code. 5 30 Sec. 5. Section 392.6, Code 2003, is amended by adding the 5 31 following new unnumbered paragraph: 5 32 NEW UNNUMBERED PARAGRAPH. The board of trustees may 5 33 provide an eligible alternative retirement benefits system 5 34 offered through the city hospital pursuant to this paragraph 5 35 which is issued by or through an insurance company authorized 6 1 to issue annuity contracts in this state for persons employed 6 2 by the city hospital in lieu of coverage under the Iowa public 6 3 employees' retirement system. For purposes of this paragraph, 6 4 "eligible alternative retirement benefits system" means an 6 5 employer-sponsored primary pension plan requiring mandatory 6 6 employer contributions that meets the requirements of section 6 7 401(a), 401(k), 403(a), or 403(b) of the Internal Revenue 6 8 Code. 6 9 EXPLANATION 6 10 This bill provides for the establishment of alternative 6 11 retirement benefits to those provided under the Iowa public 6 12 employees' retirement system (IPERS) for teachers and 6 13 employees of municipal and county hospitals. 6 14 For teachers, the bill requires the state board of 6 15 education to establish an alternative pension and annuity 6 16 retirement system for elementary and secondary school teachers 6 17 employed by a school district or area education agency. The 6 18 bill provides, effective July 1, 2004, that current teachers, 6 19 and teachers hired on or after July 1, 2004, have the option 6 20 to elect to be covered under IPERS or the alternative 6 21 retirement system within a specified time period. The bill 6 22 establishes the requirements for the alternative plan for 6 23 teachers, including the required payment options following a 6 24 participant's retirement. The bill requires that the plan be 6 25 an employer-sponsored defined contribution plan and that the 6 26 contributions to the plan be the same as the annual 6 27 contributions that would have been made to IPERS if the 6 28 employee elected to remain in IPERS. The bill provides that 6 29 employer and employee contributions are fully vested 6 30 immediately. The bill establishes the criteria for selecting 6 31 the provider of the alternative retirement system. 6 32 The bill also authorizes the establishment of an 6 33 alternative retirement system for employees of city and county 6 34 hospitals which shall be issued by the hospital through an 6 35 insurance company authorized to issue annuity contracts in 7 1 this state. A hospital is not required to establish an 7 2 alternative retirement system under the bill. The bill 7 3 provides, effective July 1, 2004, that current hospital 7 4 employees, and employees hired on or after July 1, 2004, have 7 5 the option to elect to be covered under IPERS or the 7 6 alternative retirement system if the hospital has established 7 7 one. An election to participate in IPERS or the alternative 7 8 retirement system is irrevocable as to the employee. The bill 7 9 requires that the plan be an employer-sponsored defined 7 10 contribution plan and that the contributions to the plan be 7 11 the same as the annual contributions that would have been made 7 12 to IPERS if the employee elected to remain in IPERS. 7 13 LSB 2063YH 80 7 14 ec/sh/8.1
Text: HF00397 Text: HF00399 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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