Text: HF02261 Text: HF02263 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2262 1 2 1 3 AN ACT 1 4 RELATING TO PUBLIC RETIREMENT SYSTEMS AND OTHER EMPLOYEE 1 5 BENEFIT RELATED MATTERS, INCLUDING THE PUBLIC SAFETY PEACE 1 6 OFFICERS' RETIREMENT, ACCIDENT, AND DISABILITY SYSTEM, THE 1 7 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM, THE STATEWIDE FIRE 1 8 AND POLICE RETIREMENT SYSTEM, AND THE JUDICIAL RETIREMENT 1 9 SYSTEM, AND PROVIDING EFFECTIVE AND RETROACTIVE APPLICABILITY 1 10 DATES. 1 11 1 12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 13 1 14 DIVISION I 1 15 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND 1 16 DISABILITY SYSTEM 1 17 Section 1. Section 97A.17, subsection 1, Code 2003, is 1 18 amended by adding the following new paragraph: 1 19 NEW PARAGRAPH. e. "Refund liability" means the amount the 1 20 member may elect to withdraw from the former system under 1 21 section 411.23. 1 22 Sec. 2. Section 97A.17, subsection 2, Code 2003, is 1 23 amended to read as follows: 1 24 2. Commencing July 1, 1996, a vested member of an eligible 1 25 retirement system who terminates employment covered by one 1 26 eligible retirement system and, within one year, commences 1 27 employment covered by the other eligible retirement system may 1 28 elect to transfer the greater of the average accrued benefit 1 29 or the refund liability earned from the former system to the 1 30 current system. The member shall file an application with the 1 31 current system for transfer of the greater of the average 1 32 accrued benefit or the refund liability within ninety days of 1 33 the commencement of employment with the current system. 1 34 Sec. 3. Section 97A.17, subsection 4, Code 2003, is 1 35 amended to read as follows: 2 1 4. Upon receipt of an application for transferof the2 2average accrued benefitas provided in this section, the 2 3 current system shall calculate the average accrued benefit and 2 4 the refund liability and the former system shall transfer to 2 5 the current system assets in an amount equal to the greater of 2 6 the average accrued benefit or the refund liability. Once the 2 7 transferof the average accrued benefitis completed, the 2 8 member's service under the former system shall be treated as 2 9 membership service under the current system for purposes of 2 10 this chapter and chapter 411. 2 11 DIVISION II 2 12 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 2 13 Sec. 4. Section 97B.1A, subsection 11, paragraphs a, b, 2 14 and c, Code Supplement 2003, are amended to read as follows: 2 15 a. Has attained the minimum age for receipt of a 2 16 retirement allowance under this chapter. 2 17 b. If the member has not attained seventy years of age, 2 18 has terminated all employment covered under the chapter or 2 19 formerly covered under the chapter pursuant to section 97B.42 2 20 in the month prior to the member's first month of entitlement. 2 21 c. Has filed a completed application for benefits with the 2 22 system setting forth the member's intended first month of 2 23 entitlement. 2 24 Sec. 5. Section 97B.1A, subsection 20, Code Supplement 2 25 2003, is amended by adding the following new paragraph: 2 26 NEW PARAGRAPH. e. Employment with an employer prior to 2 27 January 1, 1946, if the member is not receiving a retirement 2 28 allowance based upon that employment. 2 29 Sec. 6. Section 97B.1A, subsection 20, Code Supplement 2 30 2003, is amended by adding the following new unnumbered 2 31 paragraph after paragraph d: 2 32 NEW UNNUMBERED PARAGRAPH. However, effective July 1, 2004, 2 33 "service" does not mean service for which an employee receives 2 34 remuneration from an employer for temporary employment during 2 35 any quarter in which the employee is on an otherwise unpaid 3 1 leave of absence that is not authorized under the federal 3 2 Family and Medical Leave Act of 1993 or other similar leave. 3 3 Remuneration paid by the employer for the temporary employment 3 4 shall not be treated by the system as covered wages. 3 5 Sec. 7. Section 97B.1A, subsection 22, Code Supplement 3 6 2003, is amended to read as follows: 3 7 22. "Special service" means service for an employer while 3 8 employed in a protection occupation as provided in section 3 9 97B.49B, and as a county sheriff,or deputy sheriff, or3 10airport fire fighteras provided in section 97B.49C. 3 11 Sec. 8. Section 97B.1A, subsection 24, paragraphs a and c, 3 12 Code Supplement 2003, are amended to read as follows: 3 13 a. "Three-year average covered wage" means, for a member 3 14 who retires prior to July 1,20052008, a member's covered 3 15 wages averaged for the highest three years of the member's 3 16 service, except as otherwise provided in this subsection. The 3 17 highest three years of a member's covered wages shall be 3 18 determined using calendar years. However, if a member's final 3 19 quarter of a year of employment does not occur at the end of a 3 20 calendar year, the system may determine the wages for the 3 21 third year by computing the average quarter of all quarters 3 22 from the member's highest calendar year of covered wages not 3 23 being used in the selection of the two highest years and using 3 24 the computed average quarter for each quarter in the third 3 25 year in which no wages have been reported in combination with 3 26 the final quarter or quarters of the member's service to 3 27 create a full year. However, the system shall not use the 3 28 member's final quarter of wages if using that quarter would 3 29 reduce the member's three-year average covered wage. If the 3 30 three-year average covered wage of a member exceeds the 3 31 highest maximum covered wages in effect for a calendar year 3 32 during the member's period of service, the three-year average 3 33 covered wage of the member shall be reduced to the highest 3 34 maximum covered wages in effect during the member's period of 3 35 service. Notwithstanding any other provision of this 4 1 paragraph to the contrary, a member's wages for the third year 4 2 as computed by this paragraph shall not exceed, by more than 4 3 three percent, the member's highest actual calendar year of 4 4 covered wages for a member whose first month of entitlement is 4 5 January 1999 or later. 4 6 c. "Three-year average covered wage" means, for a member 4 7 who retires on or after July 1,20052008, the greater of the 4 8 member's covered wages averaged for a member's highest twelve 4 9 consecutive quarters of service or the member's covered wages 4 10 averaged for a member's highest three calendar years of 4 11 service. The system shall adopt rules to implement this 4 12 paragraph in accordance with the requirements of this chapter 4 13 and the federal Internal Revenue Code. 4 14 Sec. 9. Section 97B.1A, subsection 25, paragraph a, 4 15 subparagraph (4), Code Supplement 2003, is amended to read as 4 16 follows: 4 17 (4) Has attained the age of fifty-five. However, an 4 18 inactive member who has not attained sufficient years of 4 19 service eligibility to become vested and who has not attained 4 20 the age of fifty-five as of July 1, 2005, shall not become 4 21 vested upon the attainment of the age of fifty-five while an 4 22 inactive member. 4 23 Sec. 10. Section 97B.1A, subsection 26, paragraph a, 4 24 subparagraph (2), subparagraph subdivision (j), Code 4 25 Supplement 2003, is amended to read as follows: 4 26 (j) Payments of damages, attorney fees, interest, and 4 27 penalties made to satisfy a grievance,orwage claim, or 4 28 employment dispute. 4 29 Sec. 11. Section 97B.1A, subsection 26, paragraph a, 4 30 subparagraph (2), subparagraph subdivision (n), Code 4 31 Supplement 2003, is amended by striking the subparagraph 4 32 subdivision. 4 33 Sec. 12. Section 97B.1A, subsection 26, paragraph b, 4 34 unnumbered paragraph 3, Code Supplement 2003, is amended to 4 35 read as follows: 5 1 Effective July 1, 1992, "covered wages" does not include 5 2 wages to a member on or after the effective date of the 5 3 member's retirement, except as otherwise permitted by the 5 4 system's administrative rules, unless the member is 5 5 reemployed, as provided under section 97B.48A. 5 6 Sec. 13. NEW SECTION. 97B.9A COLLECTIONS – WAIVER. 5 7 Notwithstanding any provision of this chapter to the 5 8 contrary, the system may, in its sole discretion, waive the 5 9 collection of benefits overpayments, contribution 5 10 underpayments, or any other debts owed the system, that occur 5 11 more than three years prior to the date of discovery of the 5 12 overpayment, underpayment, or debt by the system, for cases in 5 13 which there is no evidence of fraud or other misconduct on the 5 14 part of the affected employer or the affected member or 5 15 beneficiary in providing or failing to provide information 5 16 necessary to the proper determination of a debt owed the 5 17 system, calculation of contributions and payments, or 5 18 calculation of benefits under this chapter. 5 19 Sec. 14. Section 97B.14A, Code Supplement 2003, is amended 5 20 to read as follows: 5 21 97B.14A WAGE REPORTING. 5 22 1. For purposes of this section, unless the context 5 23 otherwise requires: 5 24 a. "Change in the schedule of wage payments" means the 5 25 formal or informal deferral of wages earned in one calendar 5 26 year to a later calendar year or the acceleration of the wages 5 27 payable under a contract of employment to the prior calendar 5 28 year by changing the period over which the contractual 5 29 compensation is paid, by shortening the period of employment 5 30 over which contract wages are to be paid, or similar 5 31 arrangements altering the timing of wage payments. 5 32 b. "Distortion of the normal wage progression pattern" 5 33 means an increase of ten percent or more between the covered 5 34 wages reported for any two consecutive years. 5 35 2. An employer shall report wages of employees covered by 6 1 this chapter to the system in a manner and form as prescribed 6 2 by the system. If the wages reported by an employer appear to 6 3 be a distortion of the normal wage progression pattern for an 6 4 employee, the system may request that the employer provide 6 5 documentationindicating that the wages were not misreported6 6for the purposes of causing an increase in the retirement6 7allowance or other payments authorized to be made by this6 8chapterexplaining the reason for the distortion.If the6 9system determines that the wages of an employee were6 10misreported, the employer shall prepare and file wage6 11adjustments allocating the wages to the proper wage reporting6 12period.If the distortion of the normal wage progression 6 13 pattern results from covering compensation that is excluded 6 14 from the definition of covered wages, or from a change in the 6 15 schedule of wage payments for an individual, the system shall 6 16 remove wages that should not be covered from its records, and 6 17 shall, in cases involving increases caused by a change in the 6 18 schedule of wage payments, reallocate covered wages to the 6 19 calendar quarters in which the covered wages would have been 6 20 reported but for the change in the schedule of wage payments. 6 21 Sec. 15. Section 97B.17, subsection 1, Code Supplement 6 22 2003, is amended to read as follows: 6 23 1. The system shall establish and maintain records of each 6 24 member, including but not limited to the amount of wages of 6 25 each member, thecontributioncontributions made on behalf of 6 26 each member with interest,andinterest dividends credited, 6 27 beneficiary designations, and applications for benefits of any 6 28 type. The records may be maintained in paper, magnetic, or 6 29 electronic form, including optical disk storage, as set forth 6 30 in chapter 554D. The system may accept, but shall not 6 31 require, electronic records and electronic signatures to the 6 32 extent permitted under chapter 554D. These records are the 6 33 basis for the compilation of the retirement benefits provided 6 34 under this chapter. 6 35 Sec. 16. Section 97B.38, Code Supplement 2003, is amended 7 1 to read as follows: 7 2 97B.38 FEES FOR SERVICES. 7 3 The system may, by rule, prescribethe maximumreasonable 7 4 fees which may be charged forservices performed in connection7 5with any claim before the system under this chapter, and any7 6agreement in violation of such rules shall be voidproduction 7 7 costs, including staff time and materials, associated with 7 8 performing its duties under this chapter for active, inactive, 7 9 and retired members, beneficiaries, and the general public, 7 10 where such production costs are more than de minimis, as 7 11 determined by the system.Any person who shall, with intent7 12to defraud, in any manner willfully and knowingly deceive,7 13mislead, or threaten any claimant or prospective claimant or7 14beneficiary under this chapter by word, circular, letter or7 15advertisement, or who shall knowingly charge or collect7 16directly or indirectly any fee in excess of the maximum fee,7 17or make any agreement directly or indirectly to charge or7 18collect any fee in excess of the maximum fee, prescribed by7 19the system, shall be deemed guilty of a fraudulent practice.7 20 Sec. 17. Section 97B.40, Code Supplement 2003, is amended 7 21 by adding the following new subsection: 7 22 NEW SUBSECTION. 1A. If the system determines that a 7 23 person may have engaged in a fraudulent practice as described 7 24 under this section, the system may, in addition to any 7 25 statutory or equitable remedies provided by law, refer the 7 26 matter to the auditor of state and to the appropriate law 7 27 enforcement authorities for possible investigation and 7 28 prosecution. 7 29 Sec. 18. Section 97B.42, unnumbered paragraph 8, Code 7 30 Supplement 2003, is amended by striking the unnumbered 7 31 paragraph and inserting in lieu thereof the following: 7 32 Except as otherwise provided in this section, an employer 7 33 shall not sponsor and a member shall not participate in 7 34 another retirement system in this state supported in whole or 7 35 in part by public contributions or payments where such 8 1 retirement system is in lieu of the retirement system 8 2 established by this chapter. However, in addition to the 8 3 retirement system established by this chapter, an employer may 8 4 sponsor and a member may participate in a supplemental defined 8 5 contribution plan qualified under Internal Revenue Code 8 6 section 401(a), a tax-deferred annuity qualified under 8 7 Internal Revenue Code section 403(b), or an eligible deferred 8 8 compensation plan qualified under Internal Revenue Code 8 9 section 457, regardless of whether contributions to such 8 10 supplemental plans are characterized as employer contributions 8 11 or employee contributions, and subject to the applicable 8 12 limits set forth in the Internal Revenue Code for such plans. 8 13 A defined benefit plan that supplements the retirement system 8 14 established by this chapter shall not be offered by public 8 15 employers covered under this chapter. 8 16 Sec. 19. Section 97B.42A, subsection 4, Code Supplement 8 17 2003, is amended to read as follows: 8 18 4. A person who becomes a member of the retirement system 8 19 pursuant to subsection 3, or who is a member of the retirement 8 20 system, and who has one or more years of covered wages, may 8 21 purchase credit, pursuant to section 97B.73, Code 2003, for 8 22 one or more quarters of service prior to January 1, 1999, in 8 23 which the person was employed in a position as described in 8 24 section 97B.1A, subsection 8, paragraph "a", but was not a 8 25 member of the retirement system. 8 26 Sec. 20. Section 97B.42A, subsection 5, unnumbered 8 27 paragraph 2, Code Supplement 2003, is amended to read as 8 28 follows: 8 29 A person who becomes a member of the Iowa public employees' 8 30 retirement system pursuant to this subsection, and who has one 8 31 or more years of covered wages, may purchase credit, pursuant 8 32 to section 97B.73, Code 2003, for one or more quarters of 8 33 service prior to August 1, 2000, in which the person was 8 34 employed in a position as described by section 97B.1A, 8 35 subsection 8, paragraph "a", subparagraph (11), but was not a 9 1 member of the retirement system. 9 2 Sec. 21. Section 97B.43, unnumbered paragraph 3, Code 9 3 Supplement 2003, is amended to read as follows: 9 4 Each individual who on or after July 1, 1978, was an 9 5 active, vested, or retired member and who (1) made application 9 6 for and received a refund of contributions made under the 9 7 abolished system or (2) has on deposit with the retirement 9 8 fund contributions made under the abolished system shall be 9 9 entitled to credit for years of prior service in the 9 10 determination of retirement allowance payments by filing a 9 11 written election with the system on or after July 1, 1978, and 9 12 by redepositing any withdrawn contributions under the 9 13 abolished system together with interest as stated in this 9 14 paragraph. Any individual who on or after July 1, 1978, is a 9 15 retired member and who made application for and received a 9 16 refund of contributions made under the abolished system may, 9 17 by filing a written election with the system on or after July 9 18 1, 1978, have the system retain fifty percent of the monthly 9 19 increase in retiree benefits that will accrue to the 9 20 individual because of prior service. If the monthly increase 9 21 in retirement benefits is less than ten dollars, the system 9 22 shall retain five dollars of the scheduled increase, and if 9 23 the monthly increase is less than five dollars, the provisions 9 24 of this paragraph shall not apply. The system shall continue 9 25 to retain such funds until the withdrawn contributions, 9 26 together with interest accrued to the month in which the 9 27 written election is filed, have been repaid. Due notice of 9 28 this provision shall be sent to all retired members on or 9 29 after July 1, 1978. However, this paragraph shall not apply 9 30 to any person who received a refund of any membership service 9 31 contributions unless the person repaid the membership service 9 32 contributions pursuant to section97B.7497B.80C; but a refund 9 33 of contributions remitted for the calendar quarter ending 9 34 September 30, 1953 which was based entirely upon employment 9 35 which terminated prior to July 4, 1953 shall not be considered 10 1 as a refund of membership service contributions. The interest 10 2 to be paid into the fund shall be compounded at the rates 10 3 credited to member accounts from the date of payment of the 10 4 refund of contributions under the abolished system to the date 10 5 the member redeposits the refunded amount. The provisions of 10 6 the first paragraph of this section relating to the 10 7 consideration given to credited amounts shall apply to the 10 8 redeposited amounts or to amounts left on deposit. Effective 10 9 July 1, 1978, the provisions of this paragraph shall apply to 10 10 each individual who on or after July 1, 1978, was an active, 10 11 vested, or retired member, but who was not in service on July 10 12 4, 1953. The period for filing the written election with the 10 13 system and redepositing any withdrawn contributions together 10 14 with interest accrued shall commence July 1, 1978. A member 10 15 who is a retired member on or after July 1, 1978, may file 10 16 written election with the system on or after July 1, 1978, to 10 17 have the system retain fifty percent of the monthly increase 10 18 as provided in this paragraph. 10 19 Sec. 22. Section 97B.43, unnumbered paragraph 4, Code 10 20 Supplement 2003, is amended to read as follows: 10 21 Effective July 1,19882004, a member eligible for an 10 22 increased retirement allowance because of the repayment of 10 23 contributions under this section is entitled to receipt of 10 24retroactiveadjustment paymentsfor no more than six months10 25immediately precedingbeginning with the month in which 10 26written noticepayment wassubmitted toreceived by the 10 27 system. 10 28 Sec. 23. Section 97B.45, unnumbered paragraph 2, Code 10 29 Supplement 2003, is amended by striking the unnumbered 10 30 paragraph. 10 31 Sec. 24. Section 97B.46, subsection 2, Code Supplement 10 32 2003, is amended to read as follows: 10 33 2. A member remaining in service after attaining the age 10 34 of seventy years is entitled to receive a retirement allowance 10 35 under sections 97B.49A through 97B.49H, as applicable, 11 1commencing with payment for the calendar month within which11 2the written notice is submitted to the system, except that if11 3the member fails to submit the notice on a timely basis,11 4retroactive payments shall be made for no more than six months11 5immediately preceding the month in which the written notice is11 6submittedwithout terminating employment. 11 7 Sec. 25. Section 97B.47, Code Supplement 2003, is amended 11 8 to read as follows: 11 9 97B.47 EARLY RETIREMENT DATE. 11 10 A member's early retirement date shall be the first of the 11 11 month in which a member attains the age of fifty-five years or 11 12 the first of any month after attaining the age of fifty-five 11 13 years prior to the member's normal retirement date, provided 11 14 such date shall be after the last day of service.A member11 15may retire on the member's early retirement date by submitting11 16written notice to the system setting forth the early11 17retirement date which shall not be before the first day of the11 18sixth calendar month preceding the month in which such notice11 19is filed.11 20 Sec. 26. Section 97B.48, subsections 1 and 2, Code 11 21 Supplement 2003, are amended to read as follows: 11 22 1. Retirement allowances shall be paid monthly, except 11 23 that, if an allowance of less than six hundred dollars a year 11 24may, at the member's optionis payable pursuant to section 11 25 97B.51, subsection 1, paragraph "b", the member's retirement 11 26 benefit shall be paid as a lump sum in an amount equal to the 11 27 sum of the member's and employer's accumulated contributions 11 28 and the retirement dividends standing to the member's credit 11 29 before December 31, 1966. Receipt of the lump sum payment by 11 30 a member shall terminate any and all entitlement for the 11 31 period of service covered of the member under this chapter and 11 32 the member shall not be eligible to buy back the period of 11 33 service. 11 34 2. The first monthly payment of anormalretirement 11 35 allowance shall be paid as of thenormal retirement effective12 1date, which date shall be the later of the normal retirement12 2date or the first day of the sixth calendar month preceding12 3the month in which written notice of normal retirement is12 4submitted to the systemmember's first month of entitlement. 12 5Written notice under this section may consist of submission of12 6a completed estimate request form, a completed application for12 7retirement form, or a letter from the member requesting12 8information on retirement benefits, whichever is received12 9first by the system. However, a letter requesting information12 10on benefits or submission of a completed estimate request form12 11is only valid for six months following the date of its receipt12 12by the system, unless during that six-month period the system12 13receives a completed application for retirement form from the12 14member. A retirement allowance may only be provided12 15retroactively for a single six-month period. Payment of an12 16early retirement allowance or an allowance for retirement12 17after the normal retirement date shall be paid as of the12 18effective date of retirement subject to section 97B.45,12 1997B.46, or 97B.47.The payments shall be continued thereafter 12 20 for the lifetime of the retired member except as provided in 12 21 section 97B.48A. 12 22 Sec. 27. Section 97B.48, subsection 5, Code Supplement 12 23 2003, is amended by striking the subsection. 12 24 Sec. 28. Section 97B.48, Code Supplement 2003, is amended 12 25 by adding the following new subsections: 12 26 NEW SUBSECTION. 6. Effective on such date as the system 12 27 determines by rule, but in no event later than July 1, 2006, 12 28 if the system determines that the accumulated contributions of 12 29 a member, payable to a living member who has had a break in 12 30 service or to a beneficiary of a deceased member, are less 12 31 than three thousand dollars, the lump sum amount payable under 12 32 this chapter shall be paid to the living member or beneficiary 12 33 in full satisfaction of all rights of the member or 12 34 beneficiary to receive any payments under the system. For 12 35 purposes of this section, a "break in service" means twenty 13 1 consecutive calendar quarters in which no wages are reported 13 2 to the system. The lump sum payment shall be made within one 13 3 hundred eighty days after the calendar quarter in which the 13 4 member completes a break in service or dies, whichever is 13 5 applicable. A member or beneficiary who receives a mandatory 13 6 distribution under this subsection shall have sixty days to 13 7 return the distribution to the system and restore the member's 13 8 or beneficiary's account. 13 9 NEW SUBSECTION. 7. Effective July 1, 2005, monthly 13 10 retirement allowance payments shall be directly deposited 13 11 without charge to a retired member's account via electronic 13 12 funds transfer. A retired member may elect to receive monthly 13 13 allowance payments as paper warrants in lieu of electronic 13 14 funds transfers, but the system shall charge an administrative 13 15 fee for processing such paper warrants. However, the system 13 16 may, for good cause shown, waive the administrative fee. The 13 17 fee may be automatically deducted from the monthly retirement 13 18 allowance before the warrant is issued to the retired member. 13 19 Sec. 29. Section 97B.48A, Code Supplement 2003, is amended 13 20 by adding the following new subsection: 13 21 NEW SUBSECTION. 5. If a retired reemployed member incurs 13 22 a break in service, as defined in this subsection, and the 13 23 member has failed to request an increase in the member's 13 24 monthly allowance or a distribution of the member's and 13 25 employer's accumulated contributions prior to the break in 13 26 service, and if the amount of the increase in the member's 13 27 monthly retirement allowance would be less than six hundred 13 28 dollars per year, the system shall distribute the lump sum 13 29 amount payable under subsection 4. For purposes of this 13 30 subsection, a "break in service" means four consecutive 13 31 calendar quarters in which no wages are reported to the 13 32 system. The lump sum payment shall be made within one hundred 13 33 eighty days after the calendar quarter in which the member has 13 34 a break in service. A member who receives a mandatory 13 35 distribution under this subsection shall have sixty days to 14 1 return the distribution to the system and request an increase 14 2 in the member's monthly allowance. 14 3 Sec. 30. NEW SECTION. 97B.49 DORMANT ACCOUNTS. 14 4 1. In the event that all, or any portion, of a retirement 14 5 allowance, death benefit, or other distribution payable to a 14 6 member or a member's designated beneficiary, heirs at law, or 14 7 estate, remains unpaid solely by reason of the inability of 14 8 the system to locate the appropriate payee, the amount payable 14 9 shall not be forfeited but shall be treated as a dormant 14 10 account after the time for making a claim has run. 14 11 2. A dormant account shall revert to the retirement fund 14 12 created in section 97B.7. A dormant account shall be non- 14 13 interest-bearing, and except for keeping a record of such 14 14 account, the system shall not maintain the account. A member 14 15 who has a dormant account and returns to covered employment 14 16 shall have their dormant account reactivated as of the quarter 14 17 they return to covered employment. If the appropriate payee 14 18 contacts the system after the amount payable is treated as a 14 19 dormant account, the appropriate payee may claim such amounts 14 20 by filing a withdrawal application provided by the system. 14 21 The system shall have rulemaking authority to adopt rules 14 22 necessary to implement this section in a just and equitable 14 23 manner. 14 24 3. The system shall ensure that the payment of a dormant 14 25 account as provided in this section meets the requirements of 14 26 section 401(a)(9) of the federal Internal Revenue Code. 14 27 Sec. 31. Section 97B.49B, subsection 1, paragraph c, Code 14 28 Supplement 2003, is amended to read as follows: 14 29 c. "Eligible service" means membership and prior service 14 30 in a protection occupation. In addition, for a member with 14 31 membership and prior service in a protection occupation 14 32 described in paragraph "e", subparagraph (2), eligible service 14 33 includes membership and prior service as a sheriff,or deputy 14 34 sheriff, or airport fire fighteras defined in section 14 35 97B.49C. 15 1 Sec. 32. Section 97B.49B, subsection 1, paragraph e, Code 15 2 Supplement 2003, is amended by adding the following new 15 3 subparagraph: 15 4 NEW SUBPARAGRAPH. (8) An airport fire fighter employed by 15 5 the military division of the department of public defense. 15 6 Sec. 33. Section 97B.49B, subsection 3, paragraph b, Code 15 7 Supplement 2003, is amended by adding the following new 15 8 subparagraph: 15 9 NEW SUBPARAGRAPH. (7) For the fiscal year commencing July 15 10 1, 2004, and each succeeding fiscal year, there is 15 11 appropriated from the general fund of the state to the system, 15 12 from funds not otherwise appropriated, an amount necessary to 15 13 pay the employer share of the cost of the additional benefits 15 14 provided to airport fire fighters under this section. 15 15 Sec. 34. Section 97B.49C, subsection 1, paragraph a, Code 15 16 Supplement 2003, is amended by striking the paragraph. 15 17 Sec. 35. Section 97B.49C, subsection 1, paragraph d, Code 15 18 Supplement 2003, is amended to read as follows: 15 19 d. "Eligible service" means membership and prior service 15 20 asan airport fire fighter,a sheriff,and deputy sheriff 15 21 under this section. In addition, eligible service includes 15 22 membership and prior service as a marshal in a city not 15 23 covered under chapter 400 or a fire fighter or police officer 15 24 of a city not participating in the retirement systems 15 25 established in chapter 410 or 411, and as an airport fire 15 26 fighter prior to July 1, 1994. 15 27 Sec. 36. Section 97B.49C, subsection 2, Code Supplement 15 28 2003, is amended to read as follows: 15 29 2. CALCULATION OF MONTHLY ALLOWANCE. 15 30 a. Notwithstanding other provisions of this chapter, a 15 31 member who retires from employment as a sheriff, deputy 15 32 sheriff, or airport fire fighter on or after July 1, 1994, and 15 33 before July 1, 2004, and at the time of retirement is at least 15 34 fifty-five years of age may elect to receive, in lieu of the 15 35 receipt of any benefits as calculated pursuant to section 16 1 97B.49A or 97B.49D, a monthly retirement allowance equal to 16 2 one-twelfth of an amount equal to the applicable percentage of 16 3 the three-year average covered wage as a member who has been 16 4 employed in eligible service multiplied by a fraction of years 16 5 of service, with benefits payable during the member's 16 6 lifetime. 16 7 b. Notwithstanding other provisions of this chapter, a 16 8 member who retires from employment as a sheriff or deputy 16 9 sheriff on or after July 1, 2004, and at the time of 16 10 retirement is either at least fifty-five years of age or is at 16 11 least the applicable early retirement age with at least 16 12 twenty-two years of eligible service may elect to receive, in 16 13 lieu of the receipt of any benefits as calculated pursuant to 16 14 section 97B.49A or 97B.49D, a monthly retirement allowance 16 15 equal to one-twelfth of an amount equal to the applicable 16 16 percentage of the three-year average covered wage as a member 16 17 who has been employed in eligible service multiplied by a 16 18 fraction of years of service, with benefits payable during the 16 19 member's lifetime. 16 20 c. For purposes of this subsection, "applicable early 16 21 retirement age" means the following: 16 22 (1) For each active or inactive vested member retiring on 16 23 or after July 1, 2004, and before July 1, 2005, fifty-four 16 24 years of age. 16 25 (2) For each active or inactive vested member retiring on 16 26 or after July 1, 2005, and before July 1, 2006, fifty-three 16 27 years of age. 16 28 (3) For each active or inactive vested member retiring on 16 29 or after July 1, 2006, and before July 1, 2007, fifty-two 16 30 years of age. 16 31 (4) For each active or inactive vested member retiring on 16 32 or after July 1, 2007, and before July 1, 2008, fifty-one 16 33 years of age. 16 34 (5) For each active or inactive vested member retiring on 16 35 or after July 1, 2008, fifty years of age. 17 1 Sec. 37. Section 97B.49C, subsection 3, paragraph a, Code 17 2 Supplement 2003, is amended to read as follows: 17 3 a. Annually, the system shall actuarially determine the 17 4 cost of theadditionalbenefits provided for members covered 17 5 under this section as a percentage of the covered wages of the 17 6 employees covered by this section.SixtyFifty percent of the 17 7 cost shall be paid by the employers of employees covered under 17 8 this section andfortyfifty percent of the cost shall be paid 17 9 by the employees. The employer and employee contributions 17 10 required under this paragraph are inaddition tolieu of the 17 11 contributions paid under sections 97B.11 and 97B.11A. 17 12However, the cost of including service as an airport fire17 13fighter prior to July 1, 1994, as eligible service under this17 14section shall not affect the contribution rates calculated and17 15paid by the member or the employer under this section.17 16 Sec. 38. Section 97B.49C, subsection 3, paragraph b, Code 17 17 Supplement 2003, is amended to read as follows: 17 18 b.(1)Annually, during each fiscal year commencing with 17 19 the fiscal year beginning July 1, 1988, each county shall pay 17 20 to the system the amount necessary to pay the employer share 17 21 of the cost of theadditionalbenefits provided to sheriffs 17 22 and deputy sheriffs. 17 23(2) For the fiscal year commencing July 1, 1994, and each17 24succeeding fiscal year, there is appropriated from the general17 25fund of the state to the system, from funds not otherwise17 26appropriated, an amount necessary to pay the employer share of17 27the cost of the additional benefits provided to airport fire17 28fighters under this section.17 29 Sec. 39. Section 97B.50, subsection 2, Code Supplement 17 30 2003, is amended to read as follows: 17 31 2. a. A vested member who retires from the retirement 17 32 system due to disability and commences receiving disability 17 33 benefits pursuant to the federal Social Security Act, 42 17 34 U.S.C. } 423 et seq., and who has not reached the normal 17 35 retirement date, shall receive benefits as selected under 18 1 section 97B.51, and shall not have benefits reduced upon 18 2 retirement as required under subsection 1 regardless of 18 3 whether the member has completed thirty or more years of 18 4 membership service. However, the benefits shall be suspended 18 5 during any period in which the member returns to covered 18 6 employment. This section takes effect July 1, 1990, for a 18 7 member meeting the requirements of this paragraph who retired 18 8 from the retirement system at any time after July 4, 1953. 18 9 Eligible members retiring on or after July 1, 2000, are 18 10 entitled to the receipt of retroactive adjustment payments for 18 11 no more than thirty-six months immediately preceding the month 18 12 in which writtennotice ofapplication for retirement due to 18 13 disability wassubmitted toreceived by the system,18 14notwithstanding the requirements of subsection 4. 18 15 b. A vested member who retires from the retirement system 18 16 due to disability and commences receiving disability benefits 18 17 pursuant to the federal Railroad Retirement Act, 45 U.S.C. } 18 18 231 et seq., and who has not reached the normal retirement 18 19 date, shall receive benefits as selected under section 97B.51, 18 20 and shall not have benefits reduced upon retirement as 18 21 required under subsection 1 regardless of whether the member 18 22 has completed thirty or more years of membership service. 18 23 However, the benefits shall be suspended during any period in 18 24 which the member returns to covered employment. This section 18 25 takes effect July 1, 1990, for a member meeting the 18 26 requirements of this paragraph who retired from the retirement 18 27 system at any time since July 4, 1953. Eligible members 18 28 retiring on or after July 1, 2000, are entitled to the receipt 18 29 of retroactive adjustment payments for no more than thirty-six 18 30 months immediately preceding the month in which writtennotice18 31ofapplication for retirement due to disability wassubmitted18 32toreceived by the system, notwithstanding the requirements of18 33subsection 4. 18 34 c. A vested member who terminated service due to a 18 35 disability, who has been issued payment for a refund pursuant 19 1 to section 97B.53, and who subsequently commences receiving 19 2 disability benefits as a result of that disability pursuant to 19 3 the federal Social Security Act, 42 U.S.C. } 423 et seq. or 19 4 the federal Railroad Retirement Act, 45 U.S.C. } 231 et seq., 19 5 may receive credit for membership service for the period 19 6 covered by the refund payment, upon repayment to the system of 19 7 the actuarial cost of receiving service credit for the period 19 8 covered by the refund payment, as determined by the system. 19 9 For purposes of this paragraph, the actuarial cost of the 19 10 service purchase shall be determined as provided in section 19 1197B.7497B.80C. The payment to the system as provided in this 19 12 paragraph shall be made within ninety days after July 1, 2000, 19 13 or the date federal disability payments commenced, whichever 19 14 occurs later. For purposes of this paragraph, the date 19 15 federal disability payments commence shall be the date that 19 16 the member actually receives the first such payment, 19 17 regardless of any retroactive payments included in that 19 18 payment. A member who repurchases service credit under this 19 19 paragraph and applies for retirement benefits shall have the 19 20 member's monthly allowance, including retroactive adjustment 19 21 payments, determined in the same manner as provided in 19 22 paragraph "a" or "b", as applicable.This paragraph shall not19 23be implemented until the system has received a determination19 24letter from the federal internal revenue service approving the19 25system's plan's qualified status under Internal Revenue Code19 26section 401(a).19 27 Sec. 40. Section 97B.50, subsection 4, Code Supplement 19 28 2003, is amended by striking the subsection. 19 29 Sec. 41. Section 97B.50A, subsection 5, Code Supplement 19 30 2003, is amended to read as follows: 19 31 5. OFFSET TO ALLOWANCE. Notwithstanding any provisions to 19 32 the contrary in state law, or any applicable contract or 19 33 policy, any amounts which may be paid or payable by the 19 34 employer under any workers' compensation, unemployment 19 35 compensation, employer-paid disability plan, program, or 20 1 policy, or other law to a member, and any disability payments 20 2 the member receives pursuant to the federal Social Security 20 3 Act, 42 U.S.C. } 423 et seq., shall be offset against and 20 4 payable in lieu of any retirement allowance payable pursuant 20 5 to this section on account of the same disability. 20 6 Sec. 42. Section 97B.52, subsection 1, unnumbered 20 7 paragraph 1, Code Supplement 2003, is amended to read as 20 8 follows: 20 9 Ifaan inactive member, with at least sixteen calendar 20 10 quarters of service credit, or any active member dies prior to 20 11 the member's first month of entitlement, the member's 20 12 beneficiary shall be entitled to receive a death benefit equal 20 13 to the greater of the amount provided in paragraph "a" or "b". 20 14 If an inactive member with less than sixteen calendar quarters 20 15 of service credit dies prior to the member's first month of 20 16 entitlement, the member's beneficiary shall only be entitled 20 17 to receive a death benefit, as a lump sum, equal to the amount 20 18 provided in paragraph "a". 20 19 Sec. 43. Section 97B.52, subsection 1, paragraph a, 20 20 subparagraph (3), Code Supplement 2003, is amended to read as 20 21 follows: 20 22 (3) For service as a sheriff,or deputy sheriff, or20 23airport fire fighter, as provided in section 97B.49C, the 20 24 applicable denominator is twenty-two. 20 25 Sec. 44. Section 97B.52, subsection 5, unnumbered 20 26 paragraph 3, Code Supplement 2003, is amended by striking the 20 27 unnumbered paragraph. 20 28 Sec. 45. Section 97B.52, subsection 7, Code Supplement 20 29 2003, is amended to read as follows: 20 30 7. If a member has not filed a designation of beneficiary 20 31 with the system, the death benefit is payable to the member's 20 32 estate. If no designation has been filed and an estate is not 20 33 probated, the death benefit shall be paid to the surviving 20 34 spouse, if any. If no designation has been filed, no estate 20 35 has been probated, and there is no surviving spouse, the death 21 1 benefit shall be paid to the heirs as provided in this 21 2 subsection. The system shall pay the full amount of a 21 3 member's death benefits to those heirs who have presented a 21 4 claim for such benefits within five years after the member's 21 5 date of death. The system is not liable for the payment of 21 6 any claims by heirs who make themselves known to the system 21 7 more than five years after the date of death of the member. 21 8OtherwiseIf a death benefit is not paid as provided by this 21 9 subsection, the death benefit shall remain in the fund. 21 10 Sec. 46. Section 97B.52A, subsection 1, paragraph c, Code 21 11 Supplement 2003, is amended to read as follows: 21 12 c. For a member whose first month of entitlement is July 21 13 2000 or later, the member does not return to any employment 21 14 with a covered employer until the member has qualified for at 21 15 least one calendar month of retirement benefits, and the 21 16 member does not return to covered employment until the member 21 17 has qualified for no fewer than four calendar months of 21 18 retirement benefits. For purposes of this paragraph, 21 19 effective July 1, 2000, any employment with a covered employer 21 20 does not include employment as an elective official or member 21 21 of the general assembly if the member is not covered under 21 22 this chapter for that employment. For purposes of determining 21 23 a bona fide retirement under this paragraph and for a member 21 24 whose first month of entitlement is July 2004 or later, but 21 25 before July 2006, covered employment does not include 21 26 employment as a licensed health care professional by a public 21 27 hospital as defined in section 249I.3. 21 28 Sec. 47. Section 97B.53, subsection 4, Code Supplement 21 29 2003, is amended to read as follows: 21 30 4. A member has not terminated employment for purposes of 21 31 this section if the memberacceptscommences other covered 21 32 employment within thirty days afterreceiving the last payment21 33of wages forthe date employment was terminated with a covered 21 34employmentemployer, or if the member begins covered 21 35 employment prior to filing a request for a refund with the 22 1 system. 22 2 Sec. 48. Section 97B.53B, subsection 1, paragraph c, 22 3 subparagraph (2), subparagraph subdivision (c), Code 22 4 Supplement 2003, is amended to read as follows: 22 5 (c)ThePrior to January 1, 2002, the portion of any 22 6 distribution that is not includible in the gross income of the 22 7 distributee, determined without regard to the exclusion for 22 8 net unrealized appreciation with respect to employer 22 9 securities. 22 10 Sec. 49. Section 97B.73B, subsection 2, paragraph b, Code 22 11 Supplement 2003, is amended to read as follows: 22 12 b. For a purchase of membership service on or after July 22 13 1, 2002, the actuarial cost of the service purchase in a 22 14 manner as provided in section97B.7397B.80C. 22 15 Sec. 50. Section 97B.73B, subsection 2, Code Supplement 22 16 2003, is amended by adding the following new paragraph: 22 17 NEW PARAGRAPH. c. Effective July 1, 2004, a member 22 18 eligible for an increased retirement allowance because of the 22 19 payment of contributions under this section is entitled to 22 20 adjusted payments beginning with the month in which the member 22 21 pays contributions under this section. 22 22 Sec. 51. Section 97B.80, subsection 3, Code Supplement 22 23 2003, is amended to read as follows: 22 24 3.The system shall adjust benefits for a six-month period22 25prior to the date the member pays contributions under this22 26section if the member is receiving a retirement allowance at22 27the time the contribution payment is made.Verification of 22 28 active duty service and payment of contributions shall be made 22 29 to the system. However, a member is not eligible to make 22 30 contributions under this section if the member is receiving, 22 31 is eligible to receive, or may in the future be eligible to 22 32 receive retirement pay from the United States government for 22 33 active duty in the armed forces, except for retirement pay 22 34 granted by the United States government under retired pay for 22 35 nonregular service pursuant to 10 U.S.C. } 12731–12739. A 23 1 member receiving retired pay for nonregular service who makes 23 2 contributions under this section shall provide information 23 3 required by the system documenting time periods covered under 23 4 retired pay for nonregular service. 23 5 Sec. 52. Section 97B.80, subsection 4, Code Supplement 23 6 2003, is amended by striking the subsection and inserting in 23 7 lieu thereof the following: 23 8 4. Effective July 1, 2004, a member eligible for an 23 9 increased retirement allowance because of the payment of 23 10 contributions under this section is entitled to adjusted 23 11 payments beginning with the month in which the member pays 23 12 contributions under this section. 23 13 Sec. 53. Section 97B.80C, subsection 1, paragraph a, Code 23 14 Supplement 2003, is amended to read as follows: 23 15 a. "Nonqualified service" means service that is not 23 16 qualified service.and includes, but is not limited to, any of 23 17 the following: 23 18 (1) Full-time volunteer public service in the federal 23 19 peace corps program. 23 20 (2) Public employment comparable to employment covered 23 21 under this chapter in a qualified Canadian governmental entity 23 22 that is an elementary school, secondary school, college, or 23 23 university that is organized, administered, and primarily 23 24 supported by the provincial, territorial, or federal 23 25 governments of Canada, or any combination of the same. 23 26 Sec. 54. Section 97B.80C, subsection 1, paragraph c, 23 27 subparagraph (1), Code Supplement 2003, is amended by adding 23 28 the following new subparagraph subdivisions: 23 29 NEW SUBPARAGRAPH SUBDIVISION. (e) Service as a member of 23 30 the general assembly. 23 31 NEW SUBPARAGRAPH SUBDIVISION. (f) Previous service as a 23 32 county attorney by a part-time county attorney. 23 33 NEW SUBPARAGRAPH SUBDIVISION. (g) Service in public 23 34 employment comparable to employment covered under this chapter 23 35 in another state or in the federal government, or service as a 24 1 member of another public retirement system in this state, 24 2 including but not limited to the teachers insurance and 24 3 annuity association-college retirement equities fund (TIAA- 24 4 CREF), if the member was not retired under that system and has 24 5 no further claim upon a retirement benefit from that other 24 6 public system. 24 7 NEW SUBPARAGRAPH SUBDIVISION. (h) Service as a member of 24 8 the retirement system at any time on or after July 4, 1953, if 24 9 the member received a refund of the member's accumulated 24 10 contributions for that period of membership service. 24 11 NEW SUBPARAGRAPH SUBDIVISION. (i) An approved leave of 24 12 absence which does not constitute service as defined in 24 13 section 97B.1A, which is granted on or after July 1, 1998. 24 14 NEW SUBPARAGRAPH SUBDIVISION. (j) Employment of a person 24 15 who at the time of the employment was not covered by this 24 16 chapter, was employed by a covered employer under this 24 17 chapter, and did not opt out of coverage under this chapter. 24 18 NEW SUBPARAGRAPH SUBDIVISION. (k) Employment of a person 24 19 as an adjunct instructor as defined in section 97B.1A, 24 20 subsection 8. 24 21 Sec. 55. Section 97B.80C, subsection 3, Code Supplement 24 22 2003, is amended to read as follows: 24 23 3. a. A member making contributions for a purchase of 24 24 permissive service credit under this section, except as 24 25 otherwise provided by this subsection, shall make 24 26 contributions in an amount equal to the actuarial cost of the 24 27 permissive service credit purchase.For purposes of this24 28subsection, the actuarial cost of the service purchase is an24 29amount determined by the system in accordance with actuarial24 30tables, as reported to the system by the system's actuary,24 31which reflects the actuarial cost necessary to fund an24 32increased retirement allowance resulting from the purchase of24 33permissive service credit.24 34 b. For a member making contributions for a purchase of 24 35 permissive service credit for qualified service as described 25 1 in subsection 1, paragraph "c", subparagraph (1), subparagraph 25 2 subdivision (e), under this section, the member shall make 25 3 contributions in an amount equal to forty percent of the 25 4 actuarial cost of the service purchase. There is appropriated 25 5 from the general fund of the state to the system an amount 25 6 sufficient to pay sixty percent of the actuarial cost of the 25 7 service purchase by a member pursuant to this paragraph. 25 8 c. For a member making contributions for a purchase of 25 9 permissive service credit for qualified service as described 25 10 in subsection 1, paragraph "c", subparagraph (1), subparagraph 25 11 subdivision (f), under this section, the member shall make 25 12 contributions in an amount equal to forty percent of the 25 13 actuarial cost of the service purchase. Upon notification of 25 14 the applicable county board of supervisors of the member's 25 15 election, the county board of supervisors shall pay to the 25 16 system an amount sufficient to pay sixty percent of the 25 17 actuarial cost of the service purchase by a member pursuant to 25 18 this paragraph. 25 19 d. For purposes of this subsection, the actuarial cost of 25 20 the service purchase is an amount determined by the system in 25 21 accordance with actuarial tables, as reported to the system by 25 22 the system's actuary, which reflects the actuarial cost 25 23 necessary to fund an increased retirement allowance resulting 25 24 from the purchase of permissive service credit. 25 25 Sec. 56. Section 97B.80C, Code Supplement 2003, is amended 25 26 by adding the following new subsections: 25 27 NEW SUBSECTION. 3A. Effective July 1, 2004, a member 25 28 eligible for an increased retirement allowance because of the 25 29 payment of contributions under this or any other section 25 30 providing for the purchase of service credit is entitled to 25 31 adjusted payments beginning with the month in which the member 25 32 pays contributions under the applicable section. 25 33 NEW SUBSECTION. 3B. Effective July 1, 2004, a purchase of 25 34 service made in accordance with this or any other section 25 35 providing for the purchase of service credit by a retired 26 1 reemployed member shall be applied to the member's original 26 2 retirement allowance. The member is eligible to receive 26 3 adjustment payments beginning with the month of the purchase. 26 4 NEW SUBSECTION. 3C. A member who is entitled to a benefit 26 5 from another public retirement system and wishes to purchase 26 6 the service covered by that public retirement system must 26 7 waive, on a form provided by the Iowa public employees' 26 8 retirement system, all rights to a retirement benefit under 26 9 that other public system before purchasing credit in this 26 10 system for the period of service covered by that other public 26 11 system. The waiver must be accepted by the other public 26 12 system. If the waiver is not obtained, a member may buy up to 26 13 twenty quarters of such service credit. In no event can a 26 14 member receive more than one service credit for any given 26 15 calendar quarter. 26 16 Sec. 57. Section 411.6, subsection 7, paragraph c, Code 26 17 2003, is amended to read as follows: 26 18 c. Should a disability beneficiary under age fifty-five be 26 19 employed in a public safety occupation, the disability 26 20 beneficiary's retirement allowance shall cease. 26 21 Notwithstanding any provision of this chapter to the contrary, 26 22 if a disability beneficiary is employed in a public safety 26 23 occupation that would otherwise constitute membership service, 26 24 the disability beneficiary shall not become a member of the 26 25 system. For purposes of this paragraph, "public safety 26 26 occupation" means a peace officer, as defined in section 26 27 97A.1; a protection occupation, as defined in section 97B.49B; 26 28 a sheriff,or deputy sheriff, or airport fire fighter,as 26 29 defined in section 97B.49C; and a police officer or fire 26 30 fighter as defined in section 411.1, who was not restored to 26 31 active service as provided by this subsection. 26 32 Sec. 58. Section 724.6, subsection 2, Code 2003, is 26 33 amended to read as follows: 26 34 2. Notwithstanding subsection 1, fire fighters, as defined 26 35 in section 411.1, subsection 9, airport fire fighters included 27 1 under section97B.49C97B.49B, emergency rescue technicians, 27 2 and emergency medical care providers, as defined in section 27 3 147A.1, shall not, as a condition of employment, be required 27 4 to obtain a permit under this section. However, the 27 5 provisions of this subsection shall not apply to a person 27 6 designated as an arson investigator by the chief fire officer 27 7 of a political subdivision. 27 8 Sec. 59. 2002 Iowa Acts, chapter 1135, section 36, 27 9 subsections 1 and 3, are amended to read as follows: 27 10 1. a. Notwithstanding any provision of chapter 97B to the 27 11 contrary, a member of the Iowa public employees' retirement 27 12 system who has an employer-mandated reduction in hours or an 27 13 employee-exercised reduction in pay but remains on the 27 14 employer's payroll, and who would receive a reduction in the 27 15 member's three-year average covered wage as a result of the 27 16 reduction in hours or pay, may have the member's retirement 27 17 allowance calculated based on the three-year average covered 27 18 wage the member would have received, based on reasonable 27 19 assumptions, if the member had not been subject to the 27 20 employer-mandated reduction in hours or employee-exercised 27 21 reduction in pay, upon payment by the member of the applicable 27 22 contribution amount. 27 23 b. For purposes of this section,the applicableunless the 27 24 context otherwise requires: 27 25 (1) "Applicable contributionamountamount" is an amount 27 26 equal to the employee and employer contributions that would 27 27 have been paid to the system based on the wages that the 27 28 member would have received but for the employer-mandated 27 29 reduction in hours or employee-exercised reduction in pay and 27 30 would have been included in the member's three-year average 27 31 covered wage. 27 32 (2) "Employee-exercised reduction in pay" means a 27 33 reduction in pay of a member who has exercised bumping rights 27 34 by accepting a lower-paid position in order to avoid being 27 35 laid off by the employer. 28 1 3. This section shall apply to employer-mandated 28 2 reductions in hours or employee-exercised reductions in pay 28 3 during the period of time beginning on or after January 1, 28 4 2002, and ending no later than June 30,20032005. The system 28 5 is authorized to adopt such rules, including emergency rules, 28 6 as it deems necessary or prudent to implement this section. 28 7 Sec. 60. Sections 97B.72, 97B.72A, 97B.73, 97B.73A, 28 8 97B.74, 97B.75, 97B.80A, 97B.80B, and 97B.81, Code Supplement 28 9 2003, are repealed. 28 10 Sec. 61. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. 28 11 1. The section of this Act amending section 97B.53B, 28 12 subsection 1, paragraph "c", being deemed of immediate 28 13 importance, takes effect upon enactment and is retroactively 28 14 applicable to January 1, 2002, and is applicable on and after 28 15 that date. 28 16 2. The section of this Act amending 2002 Iowa Acts, 28 17 chapter 1135, section 36, being deemed of immediate 28 18 importance, takes effect upon enactment and is retroactively 28 19 applicable to January 1, 2002, and is applicable on and after 28 20 that date. 28 21 Sec. 62. LICENSED HEALTH CARE PROFESSIONALS – BONA FIDE 28 22 RETIREMENT REPORT. The Iowa public employees' retirement 28 23 system and the Iowa hospital association shall each submit a 28 24 report to the general assembly by December 1, 2006, concerning 28 25 the costs and effectiveness of the provision of this Act 28 26 amending section 97B.52A that provides that covered 28 27 employment, for purposes of establishing a bona fide 28 28 retirement, does not include employment as a licensed health 28 29 care professional by a public hospital as defined in section 28 30 249I.3. Each report shall provide statistics concerning the 28 31 number of members taking advantage of this provision, the 28 32 costs and financial benefits, if any, associated with this 28 33 provision, and recommendations for further action. 28 34 DIVISION III 28 35 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 29 1 Sec. 63. Section 400.8, subsection 1, Code 2003, is 29 2 amended to read as follows: 29 3 400.8 ORIGINAL ENTRANCE EXAMINATION – APPOINTMENTS. 29 4 1. The commission, when necessary under the rules, 29 5 including minimum and maximum age limits, which shall be 29 6 prescribed and published in advance by the commission and 29 7 posted in the city hall, shall hold examinations for the 29 8 purpose of determining the qualifications of applicants for 29 9 positions under civil service, other than promotions, which 29 10 examinations shall be practical in character and shall relate 29 11 to matters which will fairly test the mental and physical 29 12 ability of the applicant to discharge the duties of the 29 13 position to which the applicant seeks appointment. The 29 14 physical examination of applicants for appointment to the 29 15 positions of police officer, police matron, or fire fighter 29 16 shall be held in accordance with medical protocols established 29 17 by the board of trustees of the fire and police retirement 29 18 system established by section 411.5 and shall be conducted in 29 19 accordance with the directives of the board of trustees. 29 20 However, the prohibitions of section 216.6, subsection 1, 29 21 paragraph "d", regarding tests for the presence of the 29 22 antibody to the human immunodeficiency virus shall not apply 29 23 to such examinations. The board of trustees may change the 29 24 medical protocols at any time the board so determines. The 29 25 physical examination of an applicant for the position of 29 26 police officer, police matron, or fire fighter shall be 29 27 conducted after a conditional offer of employment has been 29 28 made to the applicant. An applicant shall not be 29 29 discriminated against on the basis of height, weight, sex, or 29 30 race in determining physical or mental ability of the 29 31 applicant. Reasonable rules relating to strength, agility, 29 32 and general health of applicants shall be prescribed. The 29 33 costs of the physical examination required under this 29 34 subsection shall be paid from the trust and agency fund of the 29 35 city. 30 1 Sec. 64. Section 411.5, Code 2003, is amended by adding 30 2 the following new subsection: 30 3 NEW SUBSECTION. 14. MEDICAL RECORDS. A physician or 30 4 surgeon, physician assistant, advanced registered nurse 30 5 practitioner, or mental health professional who provides 30 6 records to the system in connection with the application by a 30 7 member for disability retirement under this chapter shall be 30 8 entitled to charge a fee for production of the records. The 30 9 fee for copies of any records shall not exceed the reasonable 30 10 cost of production. 30 11 Sec. 65. Section 411.6, subsection 7, unnumbered paragraph 30 12 1, Code 2003, is amended to read as follows: 30 13Re-examinationReexamination of beneficiaries retired on 30 14 account of disability.Once each year during the first five30 15years following the retirement of a member on a disability30 16retirement allowance, and once in every three-year period30 17thereafter, theThe system may, and upon the member's 30 18 application shall, require any disability beneficiary who has 30 19 not yet attained age fifty-five to undergo a medical 30 20 examination at a place designated by the medical board. The 30 21 examination shall be made by the medical board or in special 30 22 cases, by an additional physician or physicians designated by 30 23 such board. If any disability beneficiary who has not 30 24 attained the age of fifty-five refuses to submit to the 30 25 medical examination, the member's allowance may be 30 26 discontinued until withdrawal of such refusal, and if the 30 27 refusal continues for one year all rights in and to the 30 28 member's pension may be revoked by the system. For a 30 29 disability beneficiary who has not attained the age of fifty- 30 30 five and whose entitlement to a disability retirement 30 31 commenced on or after July 1, 2000, the medical board may, as 30 32 part of the examination required by this subsection, suggest 30 33 appropriate medical treatment or rehabilitation if, in the 30 34 opinion of the medical board, the recommended treatment or 30 35 rehabilitation would likely restore the disability beneficiary 31 1 to duty. 31 2 Sec. 66. Section 411.6, subsection 7, paragraph a, 31 3 unnumbered paragraph 2, Code 2003, is amended to read as 31 4 follows: 31 5 A beneficiary retired under this lettered paragraph, in 31 6 order to be eligible for continued receipt of retirement 31 7 benefits, shall no later than May 15 of each year submit to 31 8 the system a copy of the beneficiary's federal individual 31 9 income tax return for the preceding year. The beneficiary 31 10 shall also submit, within a reasonable period of time, any 31 11 documentation requested by the system that is determined to be 31 12 necessary by the system to determine the beneficiary's gross 31 13 wages. 31 14 Sec. 67. Section 411.6B, subsection 1, Code 2003, is 31 15 amended to read as follows: 31 16 1. As used in this section, unless the context otherwise 31 17 requires, and to the extent permitted by the internal revenue 31 18 service: 31 19 a. "Direct rollover" means a payment by the system to the 31 20 eligible retirement plan specified by the member or the 31 21 member's surviving spouse, or the member's alternate payee 31 22 under a marital property order who is the member's spouse or 31 23 former spouse. 31 24 b. "Eligible retirement plan" meanseitherany of the 31 25 following that accepts an eligible rollover distribution from 31 26 a member,ora member's surviving spouse, or a member's 31 27 alternate payee: 31 28 (1) An individual retirement account in accordance with 31 29 section 408(a) of the federal Internal Revenue Code. 31 30 (2) An individual retirement annuity in accordance with 31 31 section 408(b) of the federal Internal Revenue Code. 31 32 In addition, an "eligible retirement plan" includes an 31 33 annuity plan in accordance with section 403(a) of the federal 31 34 Internal Revenue Code, or a qualified trust in accordance with 31 35 section 401(a) of the federal Internal Revenue Code, that 32 1 accepts an eligible rollover distribution from a member. 32 2 Effective January 1, 2002, the term "eligible retirement plan" 32 3 also includes an annuity contract described in section 403(b) 32 4 of the federal Internal Revenue Code, and an eligible plan 32 5 under section 457(b) of the federal Internal Revenue Code 32 6 which is maintained by a state, political subdivision of a 32 7 state, or any agency or instrumentality of a state or 32 8 political subdivision of a state that chooses to separately 32 9 account for amounts rolled over into such eligible retirement 32 10 plan from the system. 32 11 c. "Eligible rollover distribution" means all or any 32 12 portion of a member's account, except that an eligible 32 13 rollover distribution does not include any of the following: 32 14 (1) A distribution that is one of a series of 32 15 substantially equal periodic payments, which occur annually or 32 16 more frequently, made for the life or life expectancy of the 32 17 distributee or the joint lives or joint life expectancies of 32 18 the distributee and the distributee's designated beneficiary, 32 19 or made for a specified period of ten years or more. 32 20 (2) A distribution to the extent that the distribution is 32 21 required pursuant to section 401(a)(9) of the federal Internal 32 22 Revenue Code. 32 23 (3) The portion of any distribution that is not includible 32 24 in the gross income of the distributee, determined without 32 25 regard to the exclusion for net unrealized appreciation with 32 26 respect to employer securities. Provided, however, that 32 27 effective January 1, 2002, such distributions may be directly 32 28 rolled over to an individual retirement account described in 32 29 federal Internal Revenue Code section 408(a) or 408(b), a 32 30 qualified defined contribution plan described in federal 32 31 Internal Revenue Code section 401(a), or a qualified annuity 32 32 plan described in federal Internal Revenue Code section 32 33 403(a), if such plan agrees to separately account for the 32 34 after-tax amount so rolled over. 32 35 (4) A distribution of less than two hundred dollars of 33 1 taxable income. 33 2 Sec. 68. Section 411.22, subsection 1, paragraph b, Code 33 3 2003, is amended to read as follows: 33 4 b. A sum sufficient to pay the retirement system the 33 5 present worth, computed at the interest rateprovided in33 6section 535.3 for court judgments and decreesassumption 33 7 adopted by the system pursuant to section 411.5, subsection 9, 33 8 of the future payments of such benefits, for which the 33 9 retirement system is liable, but the sum is not a final 33 10 adjudication of the future payments which the member is 33 11 entitled to receive. 33 12 Sec. 69. Section 411.31, subsection 1, Code 2003, is 33 13 amended by adding the following new paragraph: 33 14 NEW PARAGRAPH. e. "Refund liability" means the amount the 33 15 member may elect to withdraw from the former system under 33 16 section 97A.16. 33 17 Sec. 70. Section 411.31, subsection 2, Code 2003, is 33 18 amended to read as follows: 33 19 2. Commencing July 1, 1996, a vested member of an eligible 33 20 retirement system who terminates employment covered by one 33 21 eligible retirement system and, within one year, commences 33 22 employment covered by the other eligible retirement system may 33 23 elect to transfer the greater of the average accrued benefit 33 24 or refund liability earned from the former system to the 33 25 current system. The member shall file an application with the 33 26 current system for transfer of the greater of the average 33 27 accrued benefit or refund liability within ninety days of the 33 28 commencement of employment with the current system. 33 29 Sec. 71. Section 411.31, subsection 4, Code 2003, is 33 30 amended to read as follows: 33 31 4. Upon receipt of an application for transferof the33 32average accrued benefitas provided in this section, the 33 33 current system shall calculate the average accrued benefit and 33 34 the refund liability and the former system shall transfer to 33 35 the current system assets in an amount equal to the greater of 34 1 the average accrued benefit or refund liability. Once the 34 2 transferof the average accrued benefitis completed, the 34 3 member's service under the former system shall be treated as 34 4 membership service under the current system for purposes of 34 5 this chapter and chapter 97A. 34 6 Sec. 72. Section 411.36, subsection 1, paragraph c, Code 34 7 2003, is amended to read as follows: 34 8 c. A city treasurer, city financial officer, or city clerk 34 9 involved with the financial matters of the city from four 34 10 participating cities, one of whom is from a city having a 34 11 population of less thanfortythirty thousand, and three of 34 12 whom are from cities having a population offortythirty 34 13 thousand or more. The members authorized pursuant to this 34 14 paragraph shall be appointed by the governing body of the Iowa 34 15 league of cities. 34 16 Sec. 73. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. The 34 17 section of this Act amending section 411.6B, subsection 1, 34 18 being deemed of immediate importance, takes effect upon 34 19 enactment and is retroactively applicable to January 1, 2002, 34 20 and is applicable on and after that date. 34 21 DIVISION IV 34 22 JUDICIAL RETIREMENT SYSTEM 34 23 Sec. 74. JUDICIAL RETIREMENT SYSTEM – SPECIAL VESTING 34 24 PROVISION. 34 25 1. Notwithstanding any provision of chapter 602 to the 34 26 contrary, a judge who has had an aggregate of at least four 34 27 years of service as a judge of one or more of the courts as of 34 28 the effective date of this section of this Act shall be deemed 34 29 to have had at least six years of service as a judge for 34 30 purposes of determining the judge's eligibility for a 34 31 retirement benefit under the retirement system pursuant to 34 32 sections 602.9106, 602.9108, and 602.9112, and section 34 33 602.9107C, subsection 1. 34 34 2. This section of this Act, being deemed of immediate 34 35 importance, takes effect upon enactment. 35 1 DIVISION V 35 2 MISCELLANEOUS PROVISIONS 35 3 Sec. 75. NEW SECTION. 70A.17B PAYROLL DEDUCTION FOR 35 4 ADDITIONAL INSURANCE COVERAGE. 35 5 1. The state officer in charge of any of the state payroll 35 6 systems shall deduct from the wages or salaries of a state 35 7 officer or employee an amount specified by the officer or 35 8 employee for payment to any company authorized to do business 35 9 in this state for the purpose of purchasing insurance if all 35 10 of the following conditions are met: 35 11 a. At least five hundred state officers or employees 35 12 request the deduction to purchase insurance from the same 35 13 company. 35 14 b. The request for the payroll deduction is made by the 35 15 state officer or employee in writing to the officer in charge 35 16 of the program. 35 17 c. The pay period during which the deduction is made, the 35 18 frequency, and the amount of the deduction are compatible with 35 19 the payroll system. 35 20 d. The insurance coverage to be purchased is not provided 35 21 by the state. 35 22 e. The company providing the insurance enters into a 35 23 written agreement with the state delineating each party's 35 24 rights and responsibilities. 35 25 2. The moneys deducted under this section shall be paid to 35 26 the company designated by the requesting state officers or 35 27 employees. The deduction may be made even though the 35 28 compensation paid to an officer or employee is reduced to an 35 29 amount below the minimum prescribed by law. Payment to an 35 30 officer or employee of compensation less the deduction shall 35 31 constitute a full discharge of claims and demands for services 35 32 rendered by the officer or employee during the period covered 35 33 by the payment. The request for the deduction may be 35 34 withdrawn at any time by filing a written notification of 35 35 withdrawal with the state officer in charge of any of the 36 1 state payroll systems. 36 2 3. The department of administrative services reserves the 36 3 right to terminate an insurance company's participation in the 36 4 program if the department receives complaints regarding the 36 5 actions of the insurance company or its agents in relation to 36 6 the program and such termination would be in the best interest 36 7 of the state officers and employees, the department makes a 36 8 determination that the insurance company has engaged in a 36 9 pattern or practice of unfair, misleading, or fraudulent acts 36 10 and such termination would be in the best interest of the 36 11 state officers and employees, or the commissioner of insurance 36 12 determines that the company has engaged in practices that 36 13 would otherwise disqualify the company from providing 36 14 insurance coverage in Iowa. 36 15 4. The department is authorized to establish and collect 36 16 an administrative fee as deemed necessary and appropriate in 36 17 an amount not to exceed the state's actual cost of providing 36 18 the payroll deduction service. 36 19 36 20 36 21 36 22 CHRISTOPHER C. RANTS 36 23 Speaker of the House 36 24 36 25 36 26 36 27 JEFFREY M. LAMBERTI 36 28 President of the Senate 36 29 36 30 I hereby certify that this bill originated in the House and 36 31 is known as House File 2262, Eightieth General Assembly. 36 32 36 33 36 34 36 35 MARGARET THOMSON 37 1 Chief Clerk of the House 37 2 Approved , 2004 37 3 37 4 37 5 37 6 THOMAS J. VILSACK 37 7 Governor
Text: HF02261 Text: HF02263 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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