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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