Text: S05258                            Text: S05260
Text: S05200 - S05299                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

Senate Amendment 5259

Amendment Text

PAG LIN
  1  1    Amend House File 2262, as amended, passed, and
  1  2 reprinted by the House, as follows:
  1  3    #1.  By striking everything after the enacting
  1  4 clause and inserting the following:  
  1  5                       "DIVISION I
  1  6   PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT,
  1  7                           AND
  1  8                    DISABILITY SYSTEM
  1  9    Section 1.  Section 97A.17, subsection 1, Code
  1 10 2003, is amended by adding the following new
  1 11 paragraph:
  1 12    NEW PARAGRAPH.  e.  "Refund liability" means the
  1 13 amount the member may elect to withdraw from the
  1 14 former system under section 411.23.
  1 15    Sec. 2.  Section 97A.17, subsection 2, Code 2003,
  1 16 is amended to read as follows:
  1 17    2.  Commencing July 1, 1996, a vested member of an
  1 18 eligible retirement system who terminates employment
  1 19 covered by one eligible retirement system and, within
  1 20 one year, commences employment covered by the other
  1 21 eligible retirement system may elect to transfer the
  1 22 greater of the average accrued benefit or the refund
  1 23 liability earned from the former system to the current
  1 24 system.  The member shall file an application with the
  1 25 current system for transfer of the greater of the
  1 26 average accrued benefit or the refund liability within
  1 27 ninety days of the commencement of employment with the
  1 28 current system.
  1 29    Sec. 3.  Section 97A.17, subsection 4, Code 2003,
  1 30 is amended to read as follows:
  1 31    4.  Upon receipt of an application for transfer of
  1 32 the average accrued benefit as provided in this
  1 33 section, the current system shall calculate the
  1 34 average accrued benefit and the refund liability and
  1 35 the former system shall transfer to the current system
  1 36 assets in an amount equal to the greater of the
  1 37 average accrued benefit or the refund liability.  Once
  1 38 the transfer of the average accrued benefit is
  1 39 completed, the member's service under the former
  1 40 system shall be treated as membership service under
  1 41 the current system for purposes of this chapter and
  1 42 chapter 411.  
  1 43                       DIVISION II
  1 44    IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
  1 45    Sec. 4.  Section 97B.1A, subsection 11, paragraphs
  1 46 a, b, and c, Code Supplement 2003, are amended to read
  1 47 as follows:
  1 48    a.  Has attained the minimum age for receipt of a
  1 49 retirement allowance under this chapter.
  1 50    b.  If the member has not attained seventy years of
  2  1 age, has terminated all employment covered under the
  2  2 chapter or formerly covered under the chapter pursuant
  2  3 to section 97B.42 in the month prior to the member's
  2  4 first month of entitlement.
  2  5    c.  Has filed a completed application for benefits
  2  6 with the system setting forth the member's intended
  2  7 first month of entitlement.
  2  8    Sec. 5.  Section 97B.1A, subsection 20, Code
  2  9 Supplement 2003, is amended by adding the following
  2 10 new paragraph:
  2 11    NEW PARAGRAPH.  e.  Employment with an employer
  2 12 prior to January 1, 1946, if the member is not
  2 13 receiving a retirement allowance based upon that
  2 14 employment.
  2 15    Sec. 6.  Section 97B.1A, subsection 20, Code
  2 16 Supplement 2003, is amended by adding the following
  2 17 new unnumbered paragraph after paragraph d:
  2 18    NEW UNNUMBERED PARAGRAPH.  However, effective July
  2 19 1, 2004, "service" does not mean service for which an
  2 20 employee receives remuneration from an employer for
  2 21 temporary employment during any quarter in which the
  2 22 employee is on an otherwise unpaid leave of absence
  2 23 that is not authorized under the federal Family and
  2 24 Medical Leave Act of 1993 or other similar leave.
  2 25 Remuneration paid by the employer for the temporary
  2 26 employment shall not be treated by the system as
  2 27 covered wages.
  2 28    Sec. 7.  Section 97B.1A, subsection 22, Code
  2 29 Supplement 2003, is amended to read as follows:
  2 30    22.  "Special service" means service for an
  2 31 employer while employed in a protection occupation as
  2 32 provided in section 97B.49B, and as a county sheriff,
  2 33 or deputy sheriff, or airport fire fighter as provided
  2 34 in section 97B.49C.
  2 35    Sec. 8.  Section 97B.1A, subsection 24, paragraphs
  2 36 a and c, Code Supplement 2003, are amended to read as
  2 37 follows:
  2 38    a.  "Three-year average covered wage" means, for a
  2 39 member who retires prior to July 1, 2005 2008, a
  2 40 member's covered wages averaged for the highest three
  2 41 years of the member's service, except as otherwise
  2 42 provided in this subsection.  The highest three years
  2 43 of a member's covered wages shall be determined using
  2 44 calendar years.  However, if a member's final quarter
  2 45 of a year of employment does not occur at the end of a
  2 46 calendar year, the system may determine the wages for
  2 47 the third year by computing the average quarter of all
  2 48 quarters from the member's highest calendar year of
  2 49 covered wages not being used in the selection of the
  2 50 two highest years and using the computed average
  3  1 quarter for each quarter in the third year in which no
  3  2 wages have been reported in combination with the final
  3  3 quarter or quarters of the member's service to create
  3  4 a full year.  However, the system shall not use the
  3  5 member's final quarter of wages if using that quarter
  3  6 would reduce the member's three-year average covered
  3  7 wage.  If the three-year average covered wage of a
  3  8 member exceeds the highest maximum covered wages in
  3  9 effect for a calendar year during the member's period
  3 10 of service, the three-year average covered wage of the
  3 11 member shall be reduced to the highest maximum covered
  3 12 wages in effect during the member's period of service.
  3 13 Notwithstanding any other provision of this paragraph
  3 14 to the contrary, a member's wages for the third year
  3 15 as computed by this paragraph shall not exceed, by
  3 16 more than three percent, the member's highest actual
  3 17 calendar year of covered wages for a member whose
  3 18 first month of entitlement is January 1999 or later.
  3 19    c.  "Three-year average covered wage" means, for a
  3 20 member who retires on or after July 1, 2005 2008, the
  3 21 greater of the member's covered wages averaged for a
  3 22 member's highest twelve consecutive quarters of
  3 23 service or the member's covered wages averaged for a
  3 24 member's highest three calendar years of service.  The
  3 25 system shall adopt rules to implement this paragraph
  3 26 in accordance with the requirements of this chapter
  3 27 and the federal Internal Revenue Code.
  3 28    Sec. 9.  Section 97B.1A, subsection 25, paragraph
  3 29 a, subparagraph (4), Code Supplement 2003, is amended
  3 30 to read as follows:
  3 31    (4)  Has attained the age of fifty-five.  However,
  3 32 an inactive member who has not attained sufficient
  3 33 years of service eligibility to become vested and who
  3 34 has not attained the age of fifty-five as of July 1,
  3 35 2005, shall not become vested upon the attainment of
  3 36 the age of fifty-five while an inactive member.
  3 37    Sec. 10.  Section 97B.1A, subsection 26, paragraph
  3 38 a, subparagraph (2), subparagraph subdivision (j),
  3 39 Code Supplement 2003, is amended to read as follows:
  3 40    (j)  Payments of damages, attorney fees, interest,
  3 41 and penalties made to satisfy a grievance, or wage
  3 42 claim, or employment dispute.
  3 43    Sec. 11.  Section 97B.1A, subsection 26, paragraph
  3 44 a, subparagraph (2), subparagraph subdivision (n),
  3 45 Code Supplement 2003, is amended by striking the
  3 46 subparagraph subdivision.
  3 47    Sec. 12.  Section 97B.1A, subsection 26, paragraph
  3 48 b, unnumbered paragraph 3, Code Supplement 2003, is
  3 49 amended to read as follows:
  3 50    Effective July 1, 1992, "covered wages" does not
  4  1 include wages to a member on or after the effective
  4  2 date of the member's retirement, except as otherwise
  4  3 permitted by the system's administrative rules, unless
  4  4 the member is reemployed, as provided under section
  4  5 97B.48A.
  4  6    Sec. 13.  NEW SECTION.  97B.9A  COLLECTIONS –
  4  7 WAIVER.
  4  8    Notwithstanding any provision of this chapter to
  4  9 the contrary, the system may, in its sole discretion,
  4 10 waive the collection of benefits overpayments,
  4 11 contribution underpayments, or any other debts owed
  4 12 the system, that occur more than three years prior to
  4 13 the date of discovery of the overpayment,
  4 14 underpayment, or debt by the system, for cases in
  4 15 which there is no evidence of fraud or other
  4 16 misconduct on the part of the affected employer or the
  4 17 affected member or beneficiary in providing or failing
  4 18 to provide information necessary to the proper
  4 19 determination of a debt owed the system, calculation
  4 20 of contributions and payments, or calculation of
  4 21 benefits under this chapter.
  4 22    Sec. 14.  Section 97B.11, Code Supplement 2003, is
  4 23 amended to read as follows:
  4 24    97B.11  CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.
  4 25    1.  Each employer shall deduct from the wages of
  4 26 each member of the retirement system a contribution in
  4 27 the amount of three and seven-tenths percent the
  4 28 applicable employee percentage of the covered wages
  4 29 paid by the employer, until the member's termination
  4 30 from employment.  The contributions of the employer
  4 31 shall be in the amount of five and seventy-five
  4 32 hundredths percent the applicable employer percentage
  4 33 of the covered wages of the member.
  4 34    2.  For purposes of this section, the "applicable
  4 35 employee percentage" is as follows:
  4 36    a.  Prior to July 1, 2005, three and seven-tenths
  4 37 percent.
  4 38    b.  Beginning on or after July 1, 2005, four and
  4 39 one-tenths percent.
  4 40    3.  For purposes of this section, the "applicable
  4 41 employer percentage" is as follows:
  4 42    a.  Prior to July 1, 2005, five and seventy-five
  4 43 hundredths percent.
  4 44    b.  Beginning on or after July 1, 2005, six and
  4 45 thirty-five hundredths percent.
  4 46    Sec. 15.  Section 97B.14A, Code Supplement 2003, is
  4 47 amended to read as follows:
  4 48    97B.14A  WAGE REPORTING.
  4 49    1.  For purposes of this section, unless the
  4 50 context otherwise requires:
  5  1    a.  "Change in the schedule of wage payments" means
  5  2 the formal or informal deferral of wages earned in one
  5  3 calendar year to a later calendar year or the
  5  4 acceleration of the wages payable under a contract of
  5  5 employment to the prior calendar year by changing the
  5  6 period over which the contractual compensation is
  5  7 paid, by shortening the period of employment over
  5  8 which contract wages are to be paid, or similar
  5  9 arrangements altering the timing of wage payments.
  5 10    b.  "Distortion of the normal wage progression
  5 11 pattern" means an increase of ten percent or more
  5 12 between the covered wages reported for any two
  5 13 consecutive years.
  5 14    2.  An employer shall report wages of employees
  5 15 covered by this chapter to the system in a manner and
  5 16 form as prescribed by the system.  If the wages
  5 17 reported by an employer appear to be a distortion of
  5 18 the normal wage progression pattern for an employee,
  5 19 the system may request that the employer provide
  5 20 documentation indicating that the wages were not
  5 21 misreported for the purposes of causing an increase in
  5 22 the retirement allowance or other payments authorized
  5 23 to be made by this chapter explaining the reason for
  5 24 the distortion.  If the system determines that the
  5 25 wages of an employee were misreported, the employer
  5 26 shall prepare and file wage adjustments allocating the
  5 27 wages to the proper wage reporting period.  If the
  5 28 distortion of the normal wage progression pattern
  5 29 results from covering compensation that is excluded
  5 30 from the definition of covered wages, or from a change
  5 31 in the schedule of wage payments for an individual,
  5 32 the system shall remove wages that should not be
  5 33 covered from its records, and shall, in cases
  5 34 involving increases caused by a change in the schedule
  5 35 of wage payments, reallocate covered wages to the
  5 36 calendar quarters in which the covered wages would
  5 37 have been reported but for the change in the schedule
  5 38 of wage payments.
  5 39    Sec. 16.  Section 97B.17, subsection 1, Code
  5 40 Supplement 2003, is amended to read as follows:
  5 41    1.  The system shall establish and maintain records
  5 42 of each member, including but not limited to the
  5 43 amount of wages of each member, the contribution
  5 44 contributions made on behalf of each member with
  5 45 interest, and interest dividends credited, beneficiary
  5 46 designations, and applications for benefits of any
  5 47 type.  The records may be maintained in paper,
  5 48 magnetic, or electronic form, including optical disk
  5 49 storage, as set forth in chapter 554D.  The system may
  5 50 accept, but shall not require, electronic records and
  6  1 electronic signatures to the extent permitted under
  6  2 chapter 554D.  These records are the basis for the
  6  3 compilation of the retirement benefits provided under
  6  4 this chapter.
  6  5    Sec. 17.  Section 97B.38, Code Supplement 2003, is
  6  6 amended to read as follows:
  6  7    97B.38  FEES FOR SERVICES.
  6  8    The system may, by rule, prescribe the maximum
  6  9 reasonable fees which may be charged for services
  6 10 performed in connection with any claim before the
  6 11 system under this chapter, and any agreement in
  6 12 violation of such rules shall be void production
  6 13 costs, including staff time and materials, associated
  6 14 with performing its duties under this chapter for
  6 15 active, inactive, and retired members, beneficiaries,
  6 16 and the general public, where such production costs
  6 17 are more than de minimis, as determined by the system.
  6 18 Any person who shall, with intent to defraud, in any
  6 19 manner willfully and knowingly deceive, mislead, or
  6 20 threaten any claimant or prospective claimant or
  6 21 beneficiary under this chapter by word, circular,
  6 22 letter or advertisement, or who shall knowingly charge
  6 23 or collect directly or indirectly any fee in excess of
  6 24 the maximum fee, or make any agreement directly or
  6 25 indirectly to charge or collect any fee in excess of
  6 26 the maximum fee, prescribed by the system, shall be
  6 27 deemed guilty of a fraudulent practice.
  6 28    Sec. 18.  Section 97B.40, Code Supplement 2003, is
  6 29 amended by adding the following new subsection:
  6 30    NEW SUBSECTION.  1A.  If the system determines that
  6 31 a person may have engaged in a fraudulent practice as
  6 32 described under this section, the system may, in
  6 33 addition to any statutory or equitable remedies
  6 34 provided by law, refer the matter to the auditor of
  6 35 state and to the appropriate law enforcement
  6 36 authorities for possible investigation and
  6 37 prosecution.
  6 38    Sec. 19.  Section 97B.42, unnumbered paragraph 8,
  6 39 Code Supplement 2003, is amended by striking the
  6 40 unnumbered paragraph and inserting in lieu thereof the
  6 41 following:
  6 42    Except as otherwise provided in this section, an
  6 43 employer shall not sponsor and a member shall not
  6 44 participate in another retirement system in this state
  6 45 supported in whole or in part by public contributions
  6 46 or payments where such retirement system is in lieu of
  6 47 the retirement system established by this chapter.
  6 48 However, in addition to the retirement system
  6 49 established by this chapter, an employer may sponsor
  6 50 and a member may participate in a supplemental defined
  7  1 contribution plan qualified under Internal Revenue
  7  2 Code section 401(a), a tax-deferred annuity qualified
  7  3 under Internal Revenue Code section 403(b), or an
  7  4 eligible deferred compensation plan qualified under
  7  5 Internal Revenue Code section 457, regardless of
  7  6 whether contributions to such supplemental plans are
  7  7 characterized as employer contributions or employee
  7  8 contributions, and subject to the applicable limits
  7  9 set forth in the Internal Revenue Code for such plans.
  7 10 A defined benefit plan that supplements the retirement
  7 11 system established by this chapter shall not be
  7 12 offered by public employers covered under this
  7 13 chapter.
  7 14    Sec. 20.  Section 97B.42A, subsection 4, Code
  7 15 Supplement 2003, is amended to read as follows:
  7 16    4.  A person who becomes a member of the retirement
  7 17 system pursuant to subsection 3, or who is a member of
  7 18 the retirement system, and who has one or more years
  7 19 of covered wages, may purchase credit, pursuant to
  7 20 section 97B.73, Code 2003, for one or more quarters of
  7 21 service prior to January 1, 1999, in which the person
  7 22 was employed in a position as described in section
  7 23 97B.1A, subsection 8, paragraph "a", but was not a
  7 24 member of the retirement system.
  7 25    Sec. 21.  Section 97B.42A, subsection 5, unnumbered
  7 26 paragraph 2, Code Supplement 2003, is amended to read
  7 27 as follows:
  7 28    A person who becomes a member of the Iowa public
  7 29 employees' retirement system pursuant to this
  7 30 subsection, and who has one or more years of covered
  7 31 wages, may purchase credit, pursuant to section
  7 32 97B.73, Code 2003, for one or more quarters of service
  7 33 prior to August 1, 2000, in which the person was
  7 34 employed in a position as described by section 97B.1A,
  7 35 subsection 8, paragraph "a", subparagraph (11), but
  7 36 was not a member of the retirement system.
  7 37    Sec. 22.  Section 97B.43, unnumbered paragraph 3,
  7 38 Code Supplement 2003, is amended to read as follows:
  7 39    Each individual who on or after July 1, 1978, was
  7 40 an active, vested, or retired member and who (1) made
  7 41 application for and received a refund of contributions
  7 42 made under the abolished system or (2) has on deposit
  7 43 with the retirement fund contributions made under the
  7 44 abolished system shall be entitled to credit for years
  7 45 of prior service in the determination of retirement
  7 46 allowance payments by filing a written election with
  7 47 the system on or after July 1, 1978, and by
  7 48 redepositing any withdrawn contributions under the
  7 49 abolished system together with interest as stated in
  7 50 this paragraph.  Any individual who on or after July
  8  1 1, 1978, is a retired member and who made application
  8  2 for and received a refund of contributions made under
  8  3 the abolished system may, by filing a written election
  8  4 with the system on or after July 1, 1978, have the
  8  5 system retain fifty percent of the monthly increase in
  8  6 retiree benefits that will accrue to the individual
  8  7 because of prior service.  If the monthly increase in
  8  8 retirement benefits is less than ten dollars, the
  8  9 system shall retain five dollars of the scheduled
  8 10 increase, and if the monthly increase is less than
  8 11 five dollars, the provisions of this paragraph shall
  8 12 not apply.  The system shall continue to retain such
  8 13 funds until the withdrawn contributions, together with
  8 14 interest accrued to the month in which the written
  8 15 election is filed, have been repaid.  Due notice of
  8 16 this provision shall be sent to all retired members on
  8 17 or after July 1, 1978.  However, this paragraph shall
  8 18 not apply to any person who received a refund of any
  8 19 membership service contributions unless the person
  8 20 repaid the membership service contributions pursuant
  8 21 to section 97B.74 97B.80C; but a refund of
  8 22 contributions remitted for the calendar quarter ending
  8 23 September 30, 1953 which was based entirely upon
  8 24 employment which terminated prior to July 4, 1953
  8 25 shall not be considered as a refund of membership
  8 26 service contributions.  The interest to be paid into
  8 27 the fund shall be compounded at the rates credited to
  8 28 member accounts from the date of payment of the refund
  8 29 of contributions under the abolished system to the
  8 30 date the member redeposits the refunded amount.  The
  8 31 provisions of the first paragraph of this section
  8 32 relating to the consideration given to credited
  8 33 amounts shall apply to the redeposited amounts or to
  8 34 amounts left on deposit.  Effective July 1, 1978, the
  8 35 provisions of this paragraph shall apply to each
  8 36 individual who on or after July 1, 1978, was an
  8 37 active, vested, or retired member, but who was not in
  8 38 service on July 4, 1953.  The period for filing the
  8 39 written election with the system and redepositing any
  8 40 withdrawn contributions together with interest accrued
  8 41 shall commence July 1, 1978.  A member who is a
  8 42 retired member on or after July 1, 1978, may file
  8 43 written election with the system on or after July 1,
  8 44 1978, to have the system retain fifty percent of the
  8 45 monthly increase as provided in this paragraph.
  8 46    Sec. 23.  Section 97B.43, unnumbered paragraph 4,
  8 47 Code Supplement 2003, is amended to read as follows:
  8 48    Effective July 1, 1988 2004, a member eligible for
  8 49 an increased retirement allowance because of the
  8 50 repayment of contributions under this section is
  9  1 entitled to receipt of retroactive adjustment payments
  9  2 for no more than six months immediately preceding
  9  3 beginning with the month in which written notice
  9  4 payment was submitted to received by the system.
  9  5    Sec. 24.  Section 97B.45, unnumbered paragraph 2,
  9  6 Code Supplement 2003, is amended by striking the
  9  7 unnumbered paragraph.
  9  8    Sec. 25.  Section 97B.46, subsection 2, Code
  9  9 Supplement 2003, is amended to read as follows:
  9 10    2.  A member remaining in service after attaining
  9 11 the age of seventy years is entitled to receive a
  9 12 retirement allowance under sections 97B.49A through
  9 13 97B.49H, as applicable, commencing with payment for
  9 14 the calendar month within which the written notice is
  9 15 submitted to the system, except that if the member
  9 16 fails to submit the notice on a timely basis,
  9 17 retroactive payments shall be made for no more than
  9 18 six months immediately preceding the month in which
  9 19 the written notice is submitted without terminating
  9 20 employment.
  9 21    Sec. 26.  Section 97B.47, Code Supplement 2003, is
  9 22 amended to read as follows:
  9 23    97B.47  EARLY RETIREMENT DATE.
  9 24    A member's early retirement date shall be the first
  9 25 of the month in which a member attains the age of
  9 26 fifty-five years or the first of any month after
  9 27 attaining the age of fifty-five years prior to the
  9 28 member's normal retirement date, provided such date
  9 29 shall be after the last day of service.  A member may
  9 30 retire on the member's early retirement date by
  9 31 submitting written notice to the system setting forth
  9 32 the early retirement date which shall not be before
  9 33 the first day of the sixth calendar month preceding
  9 34 the month in which such notice is filed.
  9 35    Sec. 27.  Section 97B.48, subsections 1 and 2, Code
  9 36 Supplement 2003, are amended to read as follows:
  9 37    1.  Retirement allowances shall be paid monthly,
  9 38 except that, if an allowance of less than six hundred
  9 39 dollars a year may, at the member's option is payable
  9 40 pursuant to section 97B.51, subsection 1, paragraph
  9 41 "b", the member's retirement benefit shall be paid as
  9 42 a lump sum in an amount equal to the sum of the
  9 43 member's and employer's accumulated contributions and
  9 44 the retirement dividends standing to the member's
  9 45 credit before December 31, 1966.  Receipt of the lump
  9 46 sum payment by a member shall terminate any and all
  9 47 entitlement for the period of service covered of the
  9 48 member under this chapter and the member shall not be
  9 49 eligible to buy back the period of service.
  9 50    2.  The first monthly payment of a normal
 10  1 retirement allowance shall be paid as of the normal
 10  2 retirement effective date, which date shall be the
 10  3 later of the normal retirement date or the first day
 10  4 of the sixth calendar month preceding the month in
 10  5 which written notice of normal retirement is submitted
 10  6 to the system member's first month of entitlement.
 10  7 Written notice under this section may consist of
 10  8 submission of a completed estimate request form, a
 10  9 completed application for retirement form, or a letter
 10 10 from the member requesting information on retirement
 10 11 benefits, whichever is received first by the system.
 10 12 However, a letter requesting information on benefits
 10 13 or submission of a completed estimate request form is
 10 14 only valid for six months following the date of its
 10 15 receipt by the system, unless during that six-month
 10 16 period the system receives a completed application for
 10 17 retirement form from the member.  A retirement
 10 18 allowance may only be provided retroactively for a
 10 19 single six-month period.  Payment of an early
 10 20 retirement allowance or an allowance for retirement
 10 21 after the normal retirement date shall be paid as of
 10 22 the effective date of retirement subject to section
 10 23 97B.45, 97B.46, or 97B.47.  The payments shall be
 10 24 continued thereafter for the lifetime of the retired
 10 25 member except as provided in section 97B.48A.
 10 26    Sec. 28.  Section 97B.48, subsection 5, Code
 10 27 Supplement 2003, is amended by striking the
 10 28 subsection.
 10 29    Sec. 29.  Section 97B.48, Code Supplement 2003, is
 10 30 amended by adding the following new subsections:
 10 31    NEW SUBSECTION.  6.  Effective on such date as the
 10 32 system determines by rule, but in no event later than
 10 33 July 1, 2006, if the system determines that the
 10 34 accumulated contributions of a member, payable to a
 10 35 living member who has had a break in service or to a
 10 36 beneficiary of a deceased member, are less than three
 10 37 thousand dollars, the lump sum amount payable under
 10 38 this chapter shall be paid to the living member or
 10 39 beneficiary in full satisfaction of all rights of the
 10 40 member or beneficiary to receive any payments under
 10 41 the system.  For purposes of this section, a "break in
 10 42 service" means twenty consecutive calendar quarters in
 10 43 which no wages are reported to the system.  The lump
 10 44 sum payment shall be made within one hundred eighty
 10 45 days after the calendar quarter in which the member
 10 46 completes a break in service or dies, whichever is
 10 47 applicable.  A member or beneficiary who receives a
 10 48 mandatory distribution under this subsection shall
 10 49 have sixty days to return the distribution to the
 10 50 system and restore the member's or beneficiary's
 11  1 account.
 11  2    NEW SUBSECTION.  7.  Effective July 1, 2005,
 11  3 monthly retirement allowance payments shall be
 11  4 directly deposited without charge to a retired
 11  5 member's account via electronic funds transfer.  A
 11  6 retired member may elect to receive monthly allowance
 11  7 payments as paper warrants in lieu of electronic funds
 11  8 transfers, but the system shall charge an
 11  9 administrative fee for processing such paper warrants.
 11 10 However, the system may, for good cause shown, waive
 11 11 the administrative fee.  The fee may be automatically
 11 12 deducted from the monthly retirement allowance before
 11 13 the warrant is issued to the retired member.
 11 14    Sec. 30.  Section 97B.48A, Code Supplement 2003, is
 11 15 amended by adding the following new subsection:
 11 16    NEW SUBSECTION.  5.  If a retired reemployed member
 11 17 incurs a break in service, as defined in this
 11 18 subsection, and the member has failed to request an
 11 19 increase in the member's monthly allowance or a
 11 20 distribution of the member's and employer's
 11 21 accumulated contributions prior to the break in
 11 22 service, and if the amount of the increase in the
 11 23 member's monthly retirement allowance would be less
 11 24 than six hundred dollars per year, the system shall
 11 25 distribute the lump sum amount payable under
 11 26 subsection 4.  For purposes of this subsection, a
 11 27 "break in service" means four consecutive calendar
 11 28 quarters in which no wages are reported to the system.
 11 29 The lump sum payment shall be made within one hundred
 11 30 eighty days after the calendar quarter in which the
 11 31 member has a break in service.  A member who receives
 11 32 a mandatory distribution under this subsection shall
 11 33 have sixty days to return the distribution to the
 11 34 system and request an increase in the member's monthly
 11 35 allowance.
 11 36    Sec. 31.  NEW SECTION.  97B.49  DORMANT ACCOUNTS.
 11 37    1.  In the event that all, or any portion, of a
 11 38 retirement allowance, death benefit, or other
 11 39 distribution payable to a member or a member's
 11 40 designated beneficiary, heirs at law, or estate,
 11 41 remains unpaid solely by reason of the inability of
 11 42 the system to locate the appropriate payee, the amount
 11 43 payable shall not be forfeited but shall be treated as
 11 44 a dormant account after the time for making a claim
 11 45 has run.
 11 46    2.  A dormant account shall revert to the
 11 47 retirement fund created in section 97B.7.  A dormant
 11 48 account shall be non-interest-bearing, and except for
 11 49 keeping a record of such account, the system shall not
 11 50 maintain the account.  A member who has a dormant
 12  1 account and returns to covered employment shall have
 12  2 their dormant account reactivated as of the quarter
 12  3 they return to covered employment.  If the appropriate
 12  4 payee contacts the system after the amount payable is
 12  5 treated as a dormant account, the appropriate payee
 12  6 may claim such amounts by filing a withdrawal
 12  7 application provided by the system.  The system shall
 12  8 have rulemaking authority to adopt rules necessary to
 12  9 implement this section in a just and equitable manner.
 12 10    3.  The system shall ensure that the payment of a
 12 11 dormant account as provided in this section meets the
 12 12 requirements of section 401(a)(9) of the federal
 12 13 Internal Revenue Code.
 12 14    Sec. 32.  Section 97B.49B, subsection 1, paragraph
 12 15 c, Code Supplement 2003, is amended to read as
 12 16 follows:
 12 17    c.  "Eligible service" means membership and prior
 12 18 service in a protection occupation.  In addition, for
 12 19 a member with membership and prior service in a
 12 20 protection occupation described in paragraph "e",
 12 21 subparagraph (2), eligible service includes membership
 12 22 and prior service as a sheriff, or deputy sheriff, or
 12 23 airport fire fighter as defined in section 97B.49C.
 12 24    Sec. 33.  Section 97B.49B, subsection 1, paragraph
 12 25 e, Code Supplement 2003, is amended by adding the
 12 26 following new subparagraph:
 12 27    NEW SUBPARAGRAPH.  (8)  An airport fire fighter
 12 28 employed by the military division of the department of
 12 29 public defense.
 12 30    Sec. 34.  Section 97B.49B, subsection 3, paragraph
 12 31 b, Code Supplement 2003, is amended by adding the
 12 32 following new subparagraph:
 12 33    NEW SUBPARAGRAPH.  (7)  For the fiscal year
 12 34 commencing July 1, 2004, and each succeeding fiscal
 12 35 year, there is appropriated from the general fund of
 12 36 the state to the system, from funds not otherwise
 12 37 appropriated, an amount necessary to pay the employer
 12 38 share of the cost of the additional benefits provided
 12 39 to airport fire fighters under this section.
 12 40    Sec. 35.  Section 97B.49C, subsection 1, paragraph
 12 41 a, Code Supplement 2003, is amended by striking the
 12 42 paragraph.
 12 43    Sec. 36.  Section 97B.49C, subsection 1, paragraph
 12 44 d, Code Supplement 2003, is amended to read as
 12 45 follows:
 12 46    d.  "Eligible service" means membership and prior
 12 47 service as an airport fire fighter, a sheriff, and
 12 48 deputy sheriff under this section.  In addition,
 12 49 eligible service includes membership and prior service
 12 50 as a marshal in a city not covered under chapter 400
 13  1 or a fire fighter or police officer of a city not
 13  2 participating in the retirement systems established in
 13  3 chapter 410 or 411, and as an airport fire fighter
 13  4 prior to July 1, 1994.
 13  5    Sec. 37.  Section 97B.49C, subsection 2, Code
 13  6 Supplement 2003, is amended to read as follows:
 13  7    2.  CALCULATION OF MONTHLY ALLOWANCE.
 13  8    a.  Notwithstanding other provisions of this
 13  9 chapter, a member who retires from employment as a
 13 10 sheriff, deputy sheriff, or airport fire fighter on or
 13 11 after July 1, 1994, and before July 1, 2004, and at
 13 12 the time of retirement is at least fifty-five years of
 13 13 age may elect to receive, in lieu of the receipt of
 13 14 any benefits as calculated pursuant to section 97B.49A
 13 15 or 97B.49D, a monthly retirement allowance equal to
 13 16 one-twelfth of an amount equal to the applicable
 13 17 percentage of the three-year average covered wage as a
 13 18 member who has been employed in eligible service
 13 19 multiplied by a fraction of years of service, with
 13 20 benefits payable during the member's lifetime.
 13 21    b.  Notwithstanding other provisions of this
 13 22 chapter, a member who retires from employment as a
 13 23 sheriff or deputy sheriff on or after July 1, 2004,
 13 24 and at the time of retirement is either at least
 13 25 fifty-five years of age or is at least fifty years of
 13 26 age with at least twenty-two years of eligible service
 13 27 may elect to receive, in lieu of the receipt of any
 13 28 benefits as calculated pursuant to section 97B.49A or
 13 29 97B.49D, a monthly retirement allowance equal to one-
 13 30 twelfth of an amount equal to the applicable
 13 31 percentage of the three-year average covered wage as a
 13 32 member who has been employed in eligible service
 13 33 multiplied by a fraction of years of service, with
 13 34 benefits payable during the member's lifetime.
 13 35    Sec. 38.  Section 97B.49C, subsection 3, paragraph
 13 36 a, Code Supplement 2003, is amended to read as
 13 37 follows:
 13 38    a.  Annually, the system shall actuarially
 13 39 determine the cost of the additional benefits provided
 13 40 for members covered under this section as a percentage
 13 41 of the covered wages of the employees covered by this
 13 42 section.  Sixty Fifty percent of the cost shall be
 13 43 paid by the employers of employees covered under this
 13 44 section and forty fifty percent of the cost shall be
 13 45 paid by the employees.  The employer and employee
 13 46 contributions required under this paragraph are in
 13 47 addition to lieu of the contributions paid under
 13 48 sections 97B.11 and 97B.11A.  However, the cost of
 13 49 including service as an airport fire fighter prior to
 13 50 July 1, 1994, as eligible service under this section
 14  1 shall not affect the contribution rates calculated and
 14  2 paid by the member or the employer under this section.
 14  3    Sec. 39.  Section 97B.49C, subsection 3, paragraph
 14  4 b, Code Supplement 2003, is amended to read as
 14  5 follows:
 14  6    b. (1)  Annually, during each fiscal year
 14  7 commencing with the fiscal year beginning July 1,
 14  8 1988, each county shall pay to the system the amount
 14  9 necessary to pay the employer share of the cost of the
 14 10 additional benefits provided to sheriffs and deputy
 14 11 sheriffs.
 14 12    (2)  For the fiscal year commencing July 1, 1994,
 14 13 and each succeeding fiscal year, there is appropriated
 14 14 from the general fund of the state to the system, from
 14 15 funds not otherwise appropriated, an amount necessary
 14 16 to pay the employer share of the cost of the
 14 17 additional benefits provided to airport fire fighters
 14 18 under this section.
 14 19    Sec. 40.  Section 97B.50, subsection 2, Code
 14 20 Supplement 2003, is amended to read as follows:
 14 21    2.  a.  A vested member who retires from the
 14 22 retirement system due to disability and commences
 14 23 receiving disability benefits pursuant to the federal
 14 24 Social Security Act, 42 U.S.C. } 423 et seq., and who
 14 25 has not reached the normal retirement date, shall
 14 26 receive benefits as selected under section 97B.51, and
 14 27 shall not have benefits reduced upon retirement as
 14 28 required under subsection 1 regardless of whether the
 14 29 member has completed thirty or more years of
 14 30 membership service.  However, the benefits shall be
 14 31 suspended during any period in which the member
 14 32 returns to covered employment.  This section takes
 14 33 effect July 1, 1990, for a member meeting the
 14 34 requirements of this paragraph who retired from the
 14 35 retirement system at any time after July 4, 1953.
 14 36 Eligible members retiring on or after July 1, 2000,
 14 37 are entitled to the receipt of retroactive adjustment
 14 38 payments for no more than thirty-six months
 14 39 immediately preceding the month in which written
 14 40 notice of application for retirement due to disability
 14 41 was submitted to received by the system,
 14 42 notwithstanding the requirements of subsection 4.
 14 43    b.  A vested member who retires from the retirement
 14 44 system due to disability and commences receiving
 14 45 disability benefits pursuant to the federal Railroad
 14 46 Retirement Act, 45 U.S.C. } 231 et seq., and who has
 14 47 not reached the normal retirement date, shall receive
 14 48 benefits as selected under section 97B.51, and shall
 14 49 not have benefits reduced upon retirement as required
 14 50 under subsection 1 regardless of whether the member
 15  1 has completed thirty or more years of membership
 15  2 service.  However, the benefits shall be suspended
 15  3 during any period in which the member returns to
 15  4 covered employment.  This section takes effect July 1,
 15  5 1990, for a member meeting the requirements of this
 15  6 paragraph who retired from the retirement system at
 15  7 any time since July 4, 1953.  Eligible members
 15  8 retiring on or after July 1, 2000, are entitled to the
 15  9 receipt of retroactive adjustment payments for no more
 15 10 than thirty-six months immediately preceding the month
 15 11 in which written notice of application for retirement
 15 12 due to disability was submitted to received by the
 15 13 system, notwithstanding the requirements of subsection
 15 14 4.
 15 15    c.  A vested member who terminated service due to a
 15 16 disability, who has been issued payment for a refund
 15 17 pursuant to section 97B.53, and who subsequently
 15 18 commences receiving disability benefits as a result of
 15 19 that disability pursuant to the federal Social
 15 20 Security Act, 42 U.S.C. } 423 et seq. or the federal
 15 21 Railroad Retirement Act, 45 U.S.C. } 231 et seq., may
 15 22 receive credit for membership service for the period
 15 23 covered by the refund payment, upon repayment to the
 15 24 system of the actuarial cost of receiving service
 15 25 credit for the period covered by the refund payment,
 15 26 as determined by the system.  For purposes of this
 15 27 paragraph, the actuarial cost of the service purchase
 15 28 shall be determined as provided in section 97B.74
 15 29 97B.80C.  The payment to the system as provided in
 15 30 this paragraph shall be made within ninety days after
 15 31 July 1, 2000, or the date federal disability payments
 15 32 commenced, whichever occurs later.  For purposes of
 15 33 this paragraph, the date federal disability payments
 15 34 commence shall be the date that the member actually
 15 35 receives the first such payment, regardless of any
 15 36 retroactive payments included in that payment.  A
 15 37 member who repurchases service credit under this
 15 38 paragraph and applies for retirement benefits shall
 15 39 have the member's monthly allowance, including
 15 40 retroactive adjustment payments, determined in the
 15 41 same manner as provided in paragraph "a" or "b", as
 15 42 applicable.  This paragraph shall not be implemented
 15 43 until the system has received a determination letter
 15 44 from the federal internal revenue service approving
 15 45 the system's plan's qualified status under Internal
 15 46 Revenue Code section 401(a).
 15 47    Sec. 41.  Section 97B.50, subsection 4, Code
 15 48 Supplement 2003, is amended by striking the
 15 49 subsection.
 15 50    Sec. 42.  Section 97B.50A, subsection 5, Code
 16  1 Supplement 2003, is amended to read as follows:
 16  2    5.  OFFSET TO ALLOWANCE.  Notwithstanding any
 16  3 provisions to the contrary in state law, or any
 16  4 applicable contract or policy, any amounts which may
 16  5 be paid or payable by the employer under any workers'
 16  6 compensation, unemployment compensation, employer-paid
 16  7 disability plan, program, or policy, or other law to a
 16  8 member, and any disability payments the member
 16  9 receives pursuant to the federal Social Security Act,
 16 10 42 U.S.C. } 423 et seq., shall be offset against and
 16 11 payable in lieu of any retirement allowance payable
 16 12 pursuant to this section on account of the same
 16 13 disability.
 16 14    Sec. 43.  Section 97B.52, subsection 1, unnumbered
 16 15 paragraph 1, Code Supplement 2003, is amended to read
 16 16 as follows:
 16 17    If a an inactive member, with at least sixteen
 16 18 calendar quarters of service credit, or any active
 16 19 member dies prior to the member's first month of
 16 20 entitlement, the member's beneficiary shall be
 16 21 entitled to receive a death benefit equal to the
 16 22 greater of the amount provided in paragraph "a" or
 16 23 "b".  If an inactive member with less than sixteen
 16 24 calendar quarters of service credit dies prior to the
 16 25 member's first month of entitlement, the member's
 16 26 beneficiary shall only be entitled to receive a death
 16 27 benefit, as a lump sum, equal to the amount provided
 16 28 in paragraph "a".
 16 29    Sec. 44.  Section 97B.52, subsection 1, paragraph
 16 30 a, subparagraph (3), Code Supplement 2003, is amended
 16 31 to read as follows:
 16 32    (3)  For service as a sheriff, or deputy sheriff,
 16 33 or airport fire fighter, as provided in section
 16 34 97B.49C, the applicable denominator is twenty-two.
 16 35    Sec. 45.  Section 97B.52, subsection 5, unnumbered
 16 36 paragraph 3, Code Supplement 2003, is amended by
 16 37 striking the unnumbered paragraph.
 16 38    Sec. 46.  Section 97B.52, subsection 7, Code
 16 39 Supplement 2003, is amended to read as follows:
 16 40    7.  If a member has not filed a designation of
 16 41 beneficiary with the system, the death benefit is
 16 42 payable to the member's estate.  If no designation has
 16 43 been filed and an estate is not probated, the death
 16 44 benefit shall be paid to the surviving spouse, if any.
 16 45 If no designation has been filed, no estate has been
 16 46 probated, and there is no surviving spouse, the death
 16 47 benefit shall be paid to the heirs as provided in this
 16 48 subsection.  The system shall pay the full amount of a
 16 49 member's death benefits to those heirs who have
 16 50 presented a claim for such benefits within five years
 17  1 after the member's date of death.  The system is not
 17  2 liable for the payment of any claims by heirs who make
 17  3 themselves known to the system more than five years
 17  4 after the date of death of the member.  Otherwise If a
 17  5 death benefit is not paid as provided by this
 17  6 subsection, the death benefit shall remain in the
 17  7 fund.
 17  8    Sec. 47.  Section 97B.52A, subsection 1, paragraph
 17  9 c, Code Supplement 2003, is amended to read as
 17 10 follows:
 17 11    c.  For a member whose first month of entitlement
 17 12 is July 2000 or later, the member does not return to
 17 13 any employment with a covered employer until the
 17 14 member has qualified for at least one calendar month
 17 15 of retirement benefits, and the member does not return
 17 16 to covered employment until the member has qualified
 17 17 for no fewer than four calendar months of retirement
 17 18 benefits.  For purposes of this paragraph, effective
 17 19 July 1, 2000, any employment with a covered employer
 17 20 does not include employment as an elective official or
 17 21 member of the general assembly if the member is not
 17 22 covered under this chapter for that employment.  For
 17 23 purposes of determining a bona fide retirement under
 17 24 this paragraph and for a member whose first month of
 17 25 entitlement is July 2004 or later, but before July
 17 26 2006, covered employment does not include employment
 17 27 as a licensed health care professional by a public
 17 28 hospital as defined in section 249I.3.
 17 29    Sec. 48.  Section 97B.53, subsection 4, Code
 17 30 Supplement 2003, is amended to read as follows:
 17 31    4.  A member has not terminated employment for
 17 32 purposes of this section if the member accepts
 17 33 commences other covered employment within thirty days
 17 34 after receiving the last payment of wages for the date
 17 35 employment was terminated with a covered employment
 17 36 employer, or if the member begins covered employment
 17 37 prior to filing a request for a refund with the
 17 38 system.
 17 39    Sec. 49.  Section 97B.53B, subsection 1, paragraph
 17 40 c, subparagraph (2), subparagraph subdivision (c),
 17 41 Code Supplement 2003, is amended to read as follows:
 17 42    (c)  The Prior to January 1, 2002, the portion of
 17 43 any distribution that is not includible in the gross
 17 44 income of the distributee, determined without regard
 17 45 to the exclusion for net unrealized appreciation with
 17 46 respect to employer securities.
 17 47    Sec. 50.  Section 97B.73B, subsection 2, paragraph
 17 48 b, Code Supplement 2003, is amended to read as
 17 49 follows:
 17 50    b.  For a purchase of membership service on or
 18  1 after July 1, 2002, the actuarial cost of the service
 18  2 purchase in a manner as provided in section 97B.73
 18  3 97B.80C.
 18  4    Sec. 51.  Section 97B.73B, subsection 2, Code
 18  5 Supplement 2003, is amended by adding the following
 18  6 new paragraph:
 18  7    NEW PARAGRAPH.  c.  Effective July 1, 2004, a
 18  8 member eligible for an increased retirement allowance
 18  9 because of the payment of contributions under this
 18 10 section is entitled to adjusted payments beginning
 18 11 with the month in which the member pays contributions
 18 12 under this section.
 18 13    Sec. 52.  Section 97B.80, subsection 3, Code
 18 14 Supplement 2003, is amended to read as follows:
 18 15    3.  The system shall adjust benefits for a six-
 18 16 month period prior to the date the member pays
 18 17 contributions under this section if the member is
 18 18 receiving a retirement allowance at the time the
 18 19 contribution payment is made.  Verification of active
 18 20 duty service and payment of contributions shall be
 18 21 made to the system.  However, a member is not eligible
 18 22 to make contributions under this section if the member
 18 23 is receiving, is eligible to receive, or may in the
 18 24 future be eligible to receive retirement pay from the
 18 25 United States government for active duty in the armed
 18 26 forces, except for retirement pay granted by the
 18 27 United States government under retired pay for
 18 28 nonregular service pursuant to 10 U.S.C. } 12731–
 18 29 12739.  A member receiving retired pay for nonregular
 18 30 service who makes contributions under this section
 18 31 shall provide information required by the system
 18 32 documenting time periods covered under retired pay for
 18 33 nonregular service.
 18 34    Sec. 53.  Section 97B.80, subsection 4, Code
 18 35 Supplement 2003, is amended by striking the subsection
 18 36 and inserting in lieu thereof the following:
 18 37    4.  Effective July 1, 2004, a member eligible for
 18 38 an increased retirement allowance because of the
 18 39 payment of contributions under this section is
 18 40 entitled to adjusted payments beginning with the month
 18 41 in which the member pays contributions under this
 18 42 section.
 18 43    Sec. 54.  Section 97B.80C, subsection 1, paragraph
 18 44 a, Code Supplement 2003, is amended to read as
 18 45 follows:
 18 46    a.  "Nonqualified service" means service that is
 18 47 not qualified service. and includes, but is not
 18 48 limited to, any of the following:
 18 49    (1)  Full-time volunteer public service in the
 18 50 federal peace corps program.
 19  1    (2)  Public employment comparable to employment
 19  2 covered under this chapter in a qualified Canadian
 19  3 governmental entity that is an elementary school,
 19  4 secondary school, college, or university that is
 19  5 organized, administered, and primarily supported by
 19  6 the provincial, territorial, or federal governments of
 19  7 Canada, or any combination of the same.
 19  8    Sec. 55.  Section 97B.80C, subsection 1, paragraph
 19  9 c, subparagraph (1), Code Supplement 2003, is amended
 19 10 by adding the following new subparagraph subdivisions:
 19 11    NEW SUBPARAGRAPH SUBDIVISION.  (e)  Service as a
 19 12 member of the general assembly.
 19 13    NEW SUBPARAGRAPH SUBDIVISION.  (f)  Previous
 19 14 service as a county attorney by a part-time county
 19 15 attorney.
 19 16    NEW SUBPARAGRAPH SUBDIVISION.  (g)  Service in
 19 17 public employment comparable to employment covered
 19 18 under this chapter in another state or in the federal
 19 19 government, or service as a member of another public
 19 20 retirement system in this state, including but not
 19 21 limited to the teachers insurance and annuity
 19 22 association-college retirement equities fund (TIAA-
 19 23 CREF), if the member was not retired under that system
 19 24 and has no further claim upon a retirement benefit
 19 25 from that other public system.
 19 26    NEW SUBPARAGRAPH SUBDIVISION.  (h)  Service as a
 19 27 member of the retirement system at any time on or
 19 28 after July 4, 1953, if the member received a refund of
 19 29 the member's accumulated contributions for that period
 19 30 of membership service.
 19 31    NEW SUBPARAGRAPH SUBDIVISION.  (i)  An approved
 19 32 leave of absence which does not constitute service as
 19 33 defined in section 97B.1A, which is granted on or
 19 34 after July 1, 1998.
 19 35    NEW SUBPARAGRAPH SUBDIVISION.  (j)  Employment of a
 19 36 person who at the time of the employment was not
 19 37 covered by this chapter, was employed by a covered
 19 38 employer under this chapter, and did not opt out of
 19 39 coverage under this chapter.
 19 40    NEW SUBPARAGRAPH SUBDIVISION.  (k)  Employment of a
 19 41 person as an adjunct instructor as defined in section
 19 42 97B.1A, subsection 8.
 19 43    Sec. 56.  Section 97B.80C, subsection 3, Code
 19 44 Supplement 2003, is amended to read as follows:
 19 45    3.  a.  A member making contributions for a
 19 46 purchase of permissive service credit under this
 19 47 section, except as otherwise provided by this
 19 48 subsection, shall make contributions in an amount
 19 49 equal to the actuarial cost of the permissive service
 19 50 credit purchase.  For purposes of this subsection, the
 20  1 actuarial cost of the service purchase is an amount
 20  2 determined by the system in accordance with actuarial
 20  3 tables, as reported to the system by the system's
 20  4 actuary, which reflects the actuarial cost necessary
 20  5 to fund an increased retirement allowance resulting
 20  6 from the purchase of permissive service credit.
 20  7    b.  For a member making contributions for a
 20  8 purchase of permissive service credit for qualified
 20  9 service as described in subsection 1, paragraph "c",
 20 10 subparagraph (1), subparagraph subdivision (e), under
 20 11 this section, the member shall make contributions in
 20 12 an amount equal to forty percent of the actuarial cost
 20 13 of the service purchase.  There is appropriated from
 20 14 the general fund of the state to the system an amount
 20 15 sufficient to pay sixty percent of the actuarial cost
 20 16 of the service purchase by a member pursuant to this
 20 17 paragraph.
 20 18    c.  For a member making contributions for a
 20 19 purchase of permissive service credit for qualified
 20 20 service as described in subsection 1, paragraph "c",
 20 21 subparagraph (1), subparagraph subdivision (f), under
 20 22 this section, the member shall make contributions in
 20 23 an amount equal to forty percent of the actuarial cost
 20 24 of the service purchase.  Upon notification of the
 20 25 applicable county board of supervisors of the member's
 20 26 election, the county board of supervisors shall pay to
 20 27 the system an amount sufficient to pay sixty percent
 20 28 of the actuarial cost of the service purchase by a
 20 29 member pursuant to this paragraph.
 20 30    d.  For purposes of this subsection, the actuarial
 20 31 cost of the service purchase is an amount determined
 20 32 by the system in accordance with actuarial tables, as
 20 33 reported to the system by the system's actuary, which
 20 34 reflects the actuarial cost necessary to fund an
 20 35 increased retirement allowance resulting from the
 20 36 purchase of permissive service credit.
 20 37    Sec. 57.  Section 97B.80C, Code Supplement 2003, is
 20 38 amended by adding the following new subsections:
 20 39    NEW SUBSECTION.  3A.  Effective July 1, 2004, a
 20 40 member eligible for an increased retirement allowance
 20 41 because of the payment of contributions under this or
 20 42 any other section providing for the purchase of
 20 43 service credit is entitled to adjusted payments
 20 44 beginning with the month in which the member pays
 20 45 contributions under the applicable section.
 20 46    NEW SUBSECTION.  3B.  Effective July 1, 2004, a
 20 47 purchase of service made in accordance with this or
 20 48 any other section providing for the purchase of
 20 49 service credit by a retired reemployed member shall be
 20 50 applied to the member's original retirement allowance.
 21  1 The member is eligible to receive adjustment payments
 21  2 beginning with the month of the purchase.
 21  3    NEW SUBSECTION.  3C.  A member who is entitled to a
 21  4 benefit from another public retirement system and
 21  5 wishes to purchase the service covered by that public
 21  6 retirement system must waive, on a form provided by
 21  7 the Iowa public employees' retirement system, all
 21  8 rights to a retirement benefit under that other public
 21  9 system before purchasing credit in this system for the
 21 10 period of service covered by that other public system.
 21 11 The waiver must be accepted by the other public
 21 12 system.  If the waiver is not obtained, a member may
 21 13 buy up to twenty quarters of such service credit.  In
 21 14 no event can a member receive more than one service
 21 15 credit for any given calendar quarter.
 21 16    Sec. 58.  Section 411.6, subsection 7, paragraph c,
 21 17 Code 2003, is amended to read as follows:
 21 18    c.  Should a disability beneficiary under age
 21 19 fifty-five be employed in a public safety occupation,
 21 20 the disability beneficiary's retirement allowance
 21 21 shall cease.  Notwithstanding any provision of this
 21 22 chapter to the contrary, if a disability beneficiary
 21 23 is employed in a public safety occupation that would
 21 24 otherwise constitute membership service, the
 21 25 disability beneficiary shall not become a member of
 21 26 the system.  For purposes of this paragraph, "public
 21 27 safety occupation" means a peace officer, as defined
 21 28 in section 97A.1; a protection occupation, as defined
 21 29 in section 97B.49B; a sheriff, or deputy sheriff, or
 21 30 airport fire fighter, as defined in section 97B.49C;
 21 31 and a police officer or fire fighter as defined in
 21 32 section 411.1, who was not restored to active service
 21 33 as provided by this subsection.
 21 34    Sec. 59.  Section 724.6, subsection 2, Code 2003,
 21 35 is amended to read as follows:
 21 36    2.  Notwithstanding subsection 1, fire fighters, as
 21 37 defined in section 411.1, subsection 9, airport fire
 21 38 fighters included under section 97B.49C 97B.49B,
 21 39 emergency rescue technicians, and emergency medical
 21 40 care providers, as defined in section 147A.1, shall
 21 41 not, as a condition of employment, be required to
 21 42 obtain a permit under this section.  However, the
 21 43 provisions of this subsection shall not apply to a
 21 44 person designated as an arson investigator by the
 21 45 chief fire officer of a political subdivision.
 21 46    Sec. 60.  2002 Iowa Acts, chapter 1135, section 36,
 21 47 subsections 1 and 3, are amended to read as follows:
 21 48    1.  a.  Notwithstanding any provision of chapter
 21 49 97B to the contrary, a member of the Iowa public
 21 50 employees' retirement system who has an employer-
 22  1 mandated reduction in hours or an employee-exercised
 22  2 reduction in pay but remains on the employer's
 22  3 payroll, and who would receive a reduction in the
 22  4 member's three-year average covered wage as a result
 22  5 of the reduction in hours or pay, may have the
 22  6 member's retirement allowance calculated based on the
 22  7 three-year average covered wage the member would have
 22  8 received, based on reasonable assumptions, if the
 22  9 member had not been subject to the employer-mandated
 22 10 reduction in hours or employee-exercised reduction in
 22 11 pay, upon payment by the member of the applicable
 22 12 contribution amount.
 22 13    b.  For purposes of this section, the applicable
 22 14 unless the context otherwise requires:
 22 15    (1)  "Applicable contribution amount amount" is an
 22 16 amount equal to the employee and employer
 22 17 contributions that would have been paid to the system
 22 18 based on the wages that the member would have received
 22 19 but for the employer-mandated reduction in hours or
 22 20 employee-exercised reduction in pay and would have
 22 21 been included in the member's three-year average
 22 22 covered wage.
 22 23    (2)  "Employee-exercised reduction in pay" means a
 22 24 reduction in pay of a member who has exercised bumping
 22 25 rights by accepting a lower-paid position in order to
 22 26 avoid being laid off by the employer.
 22 27    3.  This section shall apply to employer-mandated
 22 28 reductions in hours or employee-exercised reductions
 22 29 in pay during the period of time beginning on or after
 22 30 January 1, 2002, and ending no later than June 30,
 22 31 2003 2005.  The system is authorized to adopt such
 22 32 rules, including emergency rules, as it deems
 22 33 necessary or prudent to implement this section.
 22 34    Sec. 61.  Sections 97B.72, 97B.72A, 97B.73,
 22 35 97B.73A, 97B.74, 97B.75, 97B.80A, 97B.80B, and 97B.81,
 22 36 Code Supplement 2003, are repealed.
 22 37    Sec. 62.  FAVORABLE EXPERIENCE DIVIDEND RESERVE
 22 38 ACCOUNT – DEPOSIT OF INVESTMENT RETURN.
 22 39 Notwithstanding any provision of chapter 97B to the
 22 40 contrary, the Iowa public employees' retirement system
 22 41 shall have the authority to credit the lesser of the
 22 42 system's actuarial interest rate assumption or the
 22 43 system's actual investment return to the favorable
 22 44 experience dividend reserve account created in section
 22 45 97B.49F.  This authority applies to the fiscal year
 22 46 beginning July 1, 2003, and ending June 30, 2004.
 22 47    Sec. 63.  IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
 22 48 – PENSION FLEXIBILITY STUDY – REPORT.
 22 49    1.  The Iowa public employees' retirement system
 22 50 (IPERS) shall conduct a study to consider various
 23  1 options to provide persons covered under the Iowa
 23  2 public employees' retirement system additional
 23  3 flexibility in plan design with features incorporating
 23  4 aspects of defined contribution type vehicles.  In
 23  5 conducting its study, IPERS shall consider, among
 23  6 other ideas, the following:
 23  7    a.  Ways in which IPERS can assist employers in
 23  8 expanding existing supplemental plans offered by
 23  9 public employers.
 23 10    b.  Ways in which IPERS could offer its own defined
 23 11 contribution type supplementary plan vehicle to
 23 12 complement its core defined benefit plan including,
 23 13 but not limited to, defined contribution type plans
 23 14 that might provide a cost of living or favorable
 23 15 experience dividend benefit to members.
 23 16    c.  Various hybrid plan designs incorporating
 23 17 features of both defined benefit and defined
 23 18 contribution plan vehicles, including, but not limited
 23 19 to, an integrated defined benefit and defined
 23 20 contribution plan, a floor-offset plan, or a pension
 23 21 equity plan.
 23 22    2.  In performing the study required by this
 23 23 section, IPERS shall work closely with the system's
 23 24 benefits advisory committee and, through quarterly
 23 25 reports, regularly update the public retirement
 23 26 systems committee established by section 97D.4.  On or
 23 27 before September 1, 2005, the Iowa public employees'
 23 28 retirement system shall file a report with the
 23 29 legislative services agency for distribution to the
 23 30 public retirement systems committee, which report
 23 31 shall contain its findings and recommendations,
 23 32 including any proposal or proposals regarding adding
 23 33 additional flexibility in IPERS' plan design with
 23 34 features incorporating aspects of defined contribution
 23 35 type vehicles.
 23 36    Sec. 64.  PROTECTION OCCUPATION MEMBERSHIP STUDY.
 23 37 The Iowa public employees' retirement system (IPERS),
 23 38 in consultation with the system's benefits advisory
 23 39 committee, shall study the possible inclusion within
 23 40 the protection occupation category of IPERS an
 23 41 employee covered by the merit system as provided in
 23 42 chapter 8A, subchapter IV, whose primary duty is
 23 43 providing security at Iowa national guard
 23 44 installations and facilities and who carries or is
 23 45 licensed to carry a firearm while performing those
 23 46 duties, a registered nurse or licensed practical nurse
 23 47 employed at a correctional facility by the department
 23 48 of corrections, and a jailer or detention officer who
 23 49 performs duties as a jailer, including but not limited
 23 50 to the transportation of inmates, is certified as
 24  1 having completed jailer training pursuant to chapter
 24  2 80B, and is employed by a county as a jailer.  On or
 24  3 before September 1, 2005, the Iowa public employees'
 24  4 retirement system shall file a report with the
 24  5 legislative services agency for distribution to the
 24  6 public retirement systems committee established by
 24  7 section 97D.4 with its findings and recommendations.
 24  8 The report shall include information concerning the
 24  9 number of possible employees that might be added, the
 24 10 actuarial cost of adding these categories of employees
 24 11 to the protection occupation category, and any other
 24 12 information that might assist legislators in
 24 13 considering whether, and how, to add these or other
 24 14 categories of employees to the protection occupation
 24 15 category.
 24 16    Sec. 65.  LICENSED HEALTH CARE PROFESSIONALS –
 24 17 BONA FIDE RETIREMENT REPORT.  The Iowa public
 24 18 employees' retirement system and the largest statewide
 24 19 organization representing public hospitals in this
 24 20 state shall each submit a report to the general
 24 21 assembly by December 1, 2006, concerning the costs and
 24 22 effectiveness of the provision of this Act amending
 24 23 section 97B.52A that provides that covered employment,
 24 24 for purposes of establishing a bona fide retirement,
 24 25 does not include employment as a licensed health care
 24 26 professional by a public hospital as defined in
 24 27 section 249I.3.  Each report shall provide statistics
 24 28 concerning the number of members taking advantage of
 24 29 this provision, the costs and financial benefits, if
 24 30 any, associated with this provision, and
 24 31 recommendations for further action.
 24 32    Sec. 66.  EFFECTIVE DATE – RETROACTIVE
 24 33 APPLICABILITY.
 24 34    1.  The section of this Act amending section
 24 35 97B.53B, subsection 1, paragraph "c", being deemed of
 24 36 immediate importance, takes effect upon enactment and
 24 37 is retroactively applicable to January 1, 2002, and is
 24 38 applicable on and after that date.
 24 39    2.  The section of this Act amending 2002 Iowa
 24 40 Acts, chapter 1135, section 36, being deemed of
 24 41 immediate importance, takes effect upon enactment and
 24 42 is retroactively applicable to January 1, 2002, and is
 24 43 applicable on and after that date.
 24 44    3.  The section of this Act providing for the
 24 45 deposit of investment return to the favorable
 24 46 experience dividend reserve account, being deemed of
 24 47 immediate importance, takes effect upon enactment.  
 24 48                      DIVISION III
 24 49       STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 24 50    Sec. 67.  Section 400.8, subsection 1, Code 2003,
 25  1 is amended to read as follows:
 25  2    400.8  ORIGINAL ENTRANCE EXAMINATION –
 25  3 APPOINTMENTS.
 25  4    1.  The commission, when necessary under the rules,
 25  5 including minimum and maximum age limits, which shall
 25  6 be prescribed and published in advance by the
 25  7 commission and posted in the city hall, shall hold
 25  8 examinations for the purpose of determining the
 25  9 qualifications of applicants for positions under civil
 25 10 service, other than promotions, which examinations
 25 11 shall be practical in character and shall relate to
 25 12 matters which will fairly test the mental and physical
 25 13 ability of the applicant to discharge the duties of
 25 14 the position to which the applicant seeks appointment.
 25 15 The physical examination of applicants for appointment
 25 16 to the positions of police officer, police matron, or
 25 17 fire fighter shall be held in accordance with medical
 25 18 protocols established by the board of trustees of the
 25 19 fire and police retirement system established by
 25 20 section 411.5 and shall be conducted in accordance
 25 21 with the directives of the board of trustees.
 25 22 However, the prohibitions of section 216.6, subsection
 25 23 1, paragraph "d", regarding tests for the presence of
 25 24 the antibody to the human immunodeficiency virus shall
 25 25 not apply to such examinations.  The board of trustees
 25 26 may change the medical protocols at any time the board
 25 27 so determines.  The physical examination of an
 25 28 applicant for the position of police officer, police
 25 29 matron, or fire fighter shall be conducted after a
 25 30 conditional offer of employment has been made to the
 25 31 applicant.  An applicant shall not be discriminated
 25 32 against on the basis of height, weight, sex, or race
 25 33 in determining physical or mental ability of the
 25 34 applicant.  Reasonable rules relating to strength,
 25 35 agility, and general health of applicants shall be
 25 36 prescribed.  The costs of the physical examination
 25 37 required under this subsection shall be paid from the
 25 38 trust and agency fund of the city.
 25 39    Sec. 68.  Section 411.5, Code 2003, is amended by
 25 40 adding the following new subsection:
 25 41    NEW SUBSECTION.  14.  MEDICAL RECORDS.  A physician
 25 42 or surgeon, physician assistant, advanced registered
 25 43 nurse practitioner, or mental health professional who
 25 44 provides records to the system in connection with the
 25 45 application by a member for disability retirement
 25 46 under this chapter shall be entitled to charge a fee
 25 47 for production of the records.  The fee for copies of
 25 48 any records shall not exceed the reasonable cost of
 25 49 production.
 25 50    Sec. 69.  Section 411.6, subsection 7, unnumbered
 26  1 paragraph 1, Code 2003, is amended to read as follows:
 26  2    Re-examination Reexamination of beneficiaries
 26  3 retired on account of disability.  Once each year
 26  4 during the first five years following the retirement
 26  5 of a member on a disability retirement allowance, and
 26  6 once in every three-year period thereafter, the The
 26  7 system may, and upon the member's application shall,
 26  8 require any disability beneficiary who has not yet
 26  9 attained age fifty-five to undergo a medical
 26 10 examination at a place designated by the medical
 26 11 board.  The examination shall be made by the medical
 26 12 board or in special cases, by an additional physician
 26 13 or physicians designated by such board.  If any
 26 14 disability beneficiary who has not attained the age of
 26 15 fifty-five refuses to submit to the medical
 26 16 examination, the member's allowance may be
 26 17 discontinued until withdrawal of such refusal, and if
 26 18 the refusal continues for one year all rights in and
 26 19 to the member's pension may be revoked by the system.
 26 20 For a disability beneficiary who has not attained the
 26 21 age of fifty-five and whose entitlement to a
 26 22 disability retirement commenced on or after July 1,
 26 23 2000, the medical board may, as part of the
 26 24 examination required by this subsection, suggest
 26 25 appropriate medical treatment or rehabilitation if, in
 26 26 the opinion of the medical board, the recommended
 26 27 treatment or rehabilitation would likely restore the
 26 28 disability beneficiary to duty.
 26 29    Sec. 70.  Section 411.6, subsection 7, paragraph a,
 26 30 unnumbered paragraph 2, Code 2003, is amended to read
 26 31 as follows:
 26 32    A beneficiary retired under this lettered
 26 33 paragraph, in order to be eligible for continued
 26 34 receipt of retirement benefits, shall no later than
 26 35 May 15 of each year submit to the system a copy of the
 26 36 beneficiary's federal individual income tax return for
 26 37 the preceding year.  The beneficiary shall also
 26 38 submit, within a reasonable period of time, any
 26 39 documentation requested by the system that is
 26 40 determined to be necessary by the system to determine
 26 41 the beneficiary's gross wages.
 26 42    Sec. 71.  Section 411.6B, subsection 1, Code 2003,
 26 43 is amended to read as follows:
 26 44    1.  As used in this section, unless the context
 26 45 otherwise requires, and to the extent permitted by the
 26 46 internal revenue service:
 26 47    a.  "Direct rollover" means a payment by the system
 26 48 to the eligible retirement plan specified by the
 26 49 member or the member's surviving spouse, or the
 26 50 member's alternate payee under a marital property
 27  1 order who is the member's spouse or former spouse.
 27  2    b.  "Eligible retirement plan" means either any of
 27  3 the following that accepts an eligible rollover
 27  4 distribution from a member, or a member's surviving
 27  5 spouse, or a member's alternate payee:
 27  6    (1)  An individual retirement account in accordance
 27  7 with section 408(a) of the federal Internal Revenue
 27  8 Code.
 27  9    (2)  An individual retirement annuity in accordance
 27 10 with section 408(b) of the federal Internal Revenue
 27 11 Code.
 27 12    In addition, an "eligible retirement plan" includes
 27 13 an annuity plan in accordance with section 403(a) of
 27 14 the federal Internal Revenue Code, or a qualified
 27 15 trust in accordance with section 401(a) of the federal
 27 16 Internal Revenue Code, that accepts an eligible
 27 17 rollover distribution from a member.  Effective
 27 18 January 1, 2002, the term "eligible retirement plan"
 27 19 also includes an annuity contract described in section
 27 20 403(b) of the federal Internal Revenue Code, and an
 27 21 eligible plan under section 457(b) of the federal
 27 22 Internal Revenue Code which is maintained by a state,
 27 23 political subdivision of a state, or any agency or
 27 24 instrumentality of a state or political subdivision of
 27 25 a state that chooses to separately account for amounts
 27 26 rolled over into such eligible retirement plan from
 27 27 the system.
 27 28    c.  "Eligible rollover distribution" means all or
 27 29 any portion of a member's account, except that an
 27 30 eligible rollover distribution does not include any of
 27 31 the following:
 27 32    (1)  A distribution that is one of a series of
 27 33 substantially equal periodic payments, which occur
 27 34 annually or more frequently, made for the life or life
 27 35 expectancy of the distributee or the joint lives or
 27 36 joint life expectancies of the distributee and the
 27 37 distributee's designated beneficiary, or made for a
 27 38 specified period of ten years or more.
 27 39    (2)  A distribution to the extent that the
 27 40 distribution is required pursuant to section 401(a)(9)
 27 41 of the federal Internal Revenue Code.
 27 42    (3)  The portion of any distribution that is not
 27 43 includible in the gross income of the distributee,
 27 44 determined without regard to the exclusion for net
 27 45 unrealized appreciation with respect to employer
 27 46 securities.  Provided, however, that effective January
 27 47 1, 2002, such distributions may be directly rolled
 27 48 over to an individual retirement account described in
 27 49 federal Internal Revenue Code section 408(a) or
 27 50 408(b), a qualified defined contribution plan
 28  1 described in federal Internal Revenue Code section
 28  2 401(a), or a qualified annuity plan described in
 28  3 federal Internal Revenue Code section 403(a), if such
 28  4 plan agrees to separately account for the after-tax
 28  5 amount so rolled over.
 28  6    (4)  A distribution of less than two hundred
 28  7 dollars of taxable income.
 28  8    Sec. 72.  Section 411.22, subsection 1, paragraph
 28  9 b, Code 2003, is amended to read as follows:
 28 10    b.  A sum sufficient to pay the retirement system
 28 11 the present worth, computed at the interest rate
 28 12 provided in section 535.3 for court judgments and
 28 13 decrees assumption adopted by the system pursuant to
 28 14 section 411.5, subsection 9, of the future payments of
 28 15 such benefits, for which the retirement system is
 28 16 liable, but the sum is not a final adjudication of the
 28 17 future payments which the member is entitled to
 28 18 receive.
 28 19    Sec. 73.  Section 411.31, subsection 1, Code 2003,
 28 20 is amended by adding the following new paragraph:
 28 21    NEW PARAGRAPH.  e.  "Refund liability" means the
 28 22 amount the member may elect to withdraw from the
 28 23 former system under section 97A.16.
 28 24    Sec. 74.  Section 411.31, subsection 2, Code 2003,
 28 25 is amended to read as follows:
 28 26    2.  Commencing July 1, 1996, a vested member of an
 28 27 eligible retirement system who terminates employment
 28 28 covered by one eligible retirement system and, within
 28 29 one year, commences employment covered by the other
 28 30 eligible retirement system may elect to transfer the
 28 31 greater of the average accrued benefit or refund
 28 32 liability earned from the former system to the current
 28 33 system.  The member shall file an application with the
 28 34 current system for transfer of the greater of the
 28 35 average accrued benefit or refund liability within
 28 36 ninety days of the commencement of employment with the
 28 37 current system.
 28 38    Sec. 75.  Section 411.31, subsection 4, Code 2003,
 28 39 is amended to read as follows:
 28 40    4.  Upon receipt of an application for transfer of
 28 41 the average accrued benefit as provided in this
 28 42 section, the current system shall calculate the
 28 43 average accrued benefit and the refund liability and
 28 44 the former system shall transfer to the current system
 28 45 assets in an amount equal to the greater of the
 28 46 average accrued benefit or refund liability.  Once the
 28 47 transfer of the average accrued benefit is completed,
 28 48 the member's service under the former system shall be
 28 49 treated as membership service under the current system
 28 50 for purposes of this chapter and chapter 97A.
 29  1    Sec. 76.  Section 411.36, subsection 1, paragraph
 29  2 c, Code 2003, is amended to read as follows:
 29  3    c.  A city treasurer, city financial officer, or
 29  4 city clerk involved with the financial matters of the
 29  5 city from four participating cities, one of whom is
 29  6 from a city having a population of less than forty
 29  7 thirty thousand, and three of whom are from cities
 29  8 having a population of forty thirty thousand or more.
 29  9 The members authorized pursuant to this paragraph
 29 10 shall be appointed by the governing body of the Iowa
 29 11 league of cities.
 29 12    Sec. 77.  EFFECTIVE DATE – RETROACTIVE
 29 13 APPLICABILITY.  The section of this Act amending
 29 14 section 411.6B, subsection 1, being deemed of
 29 15 immediate importance, takes effect upon enactment and
 29 16 is retroactively applicable to January 1, 2002, and is
 29 17 applicable on and after that date.  
 29 18                       DIVISION IV
 29 19               JUDICIAL RETIREMENT SYSTEM
 29 20    Sec. 78.  Section 602.9106, Code 2003, is amended
 29 21 to read as follows:
 29 22    602.9106  RETIREMENT.
 29 23    Any person who shall have become separated from
 29 24 service as a judge of any of the courts included in
 29 25 this article and who has had an aggregate of at least
 29 26 six four years of service as a judge of one or more of
 29 27 such courts and shall have attained the age of sixty-
 29 28 five years or who has had twenty-five twenty years of
 29 29 consecutive service as a judge of one or more of said
 29 30 courts, and who shall have otherwise qualified as
 29 31 provided in this article, shall be entitled to an
 29 32 annuity as hereinafter provided.
 29 33    Sec. 79.  Section 602.9107C, subsection 1, Code
 29 34 2003, is amended to read as follows:
 29 35    1.  A judge under this system who has at least six
 29 36 four years of service as a judge of any of the courts
 29 37 included in this article and who was a member of the
 29 38 Iowa public employees' retirement system as provided
 29 39 in chapter 97B, but who was not retired under that
 29 40 system, upon submitting verification of membership and
 29 41 service in the Iowa public employees' retirement
 29 42 system to the court administrator, including proof
 29 43 that the judge has no further claim upon a retirement
 29 44 benefit from that public system, may make
 29 45 contributions as provided by this section to the
 29 46 system either for the entire period of service in the
 29 47 other public system, or for partial service in the
 29 48 other public system in increments of one or more
 29 49 calendar quarters, and receive credit for that service
 29 50 under the system.
 30  1    Sec. 80.  Section 602.9108, Code 2003, is amended
 30  2 to read as follows:
 30  3    602.9108  INDIVIDUAL ACCOUNTS – REFUNDING.
 30  4    The amount designated as the judge's contribution
 30  5 to the judicial retirement fund in section 602.9104,
 30  6 subsection 1, and all amounts paid into the fund by a
 30  7 judge shall be credited to the individual account of
 30  8 the judge.  If a judge covered under this article
 30  9 becomes separated from service as a judge before the
 30 10 judge completes an aggregate of six four years of
 30 11 service as a judge of one or more of the courts, the
 30 12 total amount in the judge's individual account shall
 30 13 be returned to the judge or the judge's legal
 30 14 representatives within one year of the separation.  If
 30 15 a judge, who is covered under this article and who has
 30 16 completed an aggregate of six four years or more of
 30 17 service as a judge of one or more of the courts, dies
 30 18 before retirement, without a survivor, the total
 30 19 amount in the judge's individual account shall be paid
 30 20 in one sum to the judge's legal representatives within
 30 21 one year of the judge's death.  If an annuitant under
 30 22 this section dies without a survivor, and without
 30 23 having received in annuities an amount equal to the
 30 24 total amount in the judge's individual account at the
 30 25 time of separation from service, the amount remaining
 30 26 to the annuitant's credit shall be paid in one sum to
 30 27 the annuitant's legal representatives within one year
 30 28 of the annuitant's death.
 30 29    Sec. 81.  Section 602.9112, Code 2003, is amended
 30 30 to read as follows:
 30 31    602.9112  VOLUNTARY RETIREMENT FOR DISABILITY.
 30 32    Any judge of the supreme, district or municipal
 30 33 court, including a district associate judge, or a
 30 34 judge of the court of appeals, who shall have served
 30 35 as a judge of one or more of such courts for a period
 30 36 of six four years in the aggregate and who believes
 30 37 the judge has become permanently incapacitated,
 30 38 physically or mentally, to perform the duties of the
 30 39 judge's office may personally or by the judge's next
 30 40 friend or guardian file with the court administrator a
 30 41 written application for retirement.  The application
 30 42 shall be filed in duplicate and accompanied by an
 30 43 affidavit as to the duration and particulars of the
 30 44 judge's service and the nature of the judge's
 30 45 incapacity.  The court administrator shall forthwith
 30 46 transmit one copy of the application and affidavit to
 30 47 the chief justice who shall request the attorney
 30 48 general in writing to cause an investigation to be
 30 49 made relative to the claimed incapacity and report
 30 50 back the results thereof in writing.  If the chief
 31  1 justice finds from the report of the attorney general
 31  2 that the applicant is permanently incapacitated,
 31  3 physically or mentally, to perform the duties of the
 31  4 applicant's office the chief justice shall by
 31  5 endorsement thereon declare the applicant retired, and
 31  6 the office vacant, and shall file the report in the
 31  7 office of the court administrator, and a copy in the
 31  8 office of the secretary of state.  From the date of
 31  9 such filing the applicant shall be deemed retired from
 31 10 the applicant's office and entitled to the benefits of
 31 11 this article to the same extent as if the applicant
 31 12 had retired under the provisions of section 602.9106.
 31 13    Sec. 82.  Section 602.9115A, unnumbered paragraphs
 31 14 1 and 3, Code 2003, are amended to read as follows:
 31 15    In lieu of the annuities and refunds provided for
 31 16 judges and judges' survivors under sections 602.9107,
 31 17 602.9107A, 602.9108, 602.9115, 602.9204, 602.9208, and
 31 18 602.9209, judges may elect to receive an optional
 31 19 retirement annuity during the judge's lifetime and
 31 20 have the optional retirement annuity, or a designated
 31 21 fraction of the optional retirement annuity, continued
 31 22 and paid to the judge's survivor after the judge's
 31 23 death and during the lifetime of the survivor.
 31 24    The optional retirement annuity shall be the
 31 25 actuarial equivalent of the amounts of the annuities
 31 26 payable to judges and survivors under sections
 31 27 602.9107, 602.9107A, 602.9115, 602.9204, 602.9208, and
 31 28 602.9209.  The actuarial equivalent shall be based on
 31 29 the mortality and interest assumptions set out in
 31 30 section 602.9107, subsection 3.
 31 31    Sec. 83.  Section 602.9203, subsection 2, paragraph
 31 32 b, Code 2003, is amended to read as follows:
 31 33    b.  Meets the minimum requirements for entitlement
 31 34 to an annuity as specified in section 602.9106.
 31 35 However, a judge who elects to retire prior to
 31 36 attaining the age of sixty-five and who has not had
 31 37 twenty-five twenty years of consecutive service, may
 31 38 serve as a senior judge, but shall not be paid an
 31 39 annuity pursuant to section 602.9204 until attaining
 31 40 age sixty-five.
 31 41    Sec. 84.  Section 602.9107A, Code 2003, is
 31 42 repealed.
 31 43    Sec. 85.  EFFECTIVE DATE.  This division of this
 31 44 Act, concerning the judicial retirement system, being
 31 45 deemed of immediate importance, takes effect upon
 31 46 enactment."
 31 47    #2.  Title page, by striking lines 1 through 4 and
 31 48 inserting the following:  "An Act relating to public
 31 49 retirement systems".  
 31 50 
 32  1 
 32  2                               
 32  3 JOHN P. KIBBIE
 32  4 
 32  5 
 32  6                               
 32  7 DENNIS H. BLACK
 32  8 
 32  9 
 32 10                               
 32 11 MIKE CONNOLLY
 32 12 
 32 13 
 32 14                               
 32 15 THOMAS G. COURTNEY
 32 16 
 32 17 
 32 18                               
 32 19 DICK L. DEARDEN
 32 20 
 32 21 
 32 22                               
 32 23 AMANDA RAGAN
 32 24 HF 2262.705 80
 32 25 ec/gg
     

Text: S05258                            Text: S05260
Text: S05200 - S05299                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

© 2004 Cornell College and League of Women Voters of Iowa

Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Tue Apr 6 03:31:17 CDT 2004
URL: /DOCS/GA/80GA/Legislation/S/05200/S05259/040405.html
jhf