Text: SF02077 Text: SF02079 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND 1 3 DISABILITY SYSTEM 1 4 Section 1. Section 97A.17, subsection 1, Code 2003, is 1 5 amended by adding the following new paragraph: 1 6 NEW PARAGRAPH. e. "Refund liability" means the amount the 1 7 member may elect to withdraw from the former system under 1 8 section 411.23. 1 9 Sec. 2. Section 97A.17, subsection 2, Code 2003, is 1 10 amended to read as follows: 1 11 2. Commencing July 1, 1996, a vested member of an eligible 1 12 retirement system who terminates employment covered by one 1 13 eligible retirement system and, within one year, commences 1 14 employment covered by the other eligible retirement system may 1 15 elect to transfer the greater of the average accrued benefit 1 16 or the refund liability earned from the former system to the 1 17 current system. The member shall file an application with the 1 18 current system for transfer of the greater of the average 1 19 accrued benefit or the refund liability within ninety days of 1 20 the commencement of employment with the current system. 1 21 Sec. 3. Section 97A.17, subsection 4, Code 2003, is 1 22 amended to read as follows: 1 23 4. Upon receipt of an application for transferof the1 24average accrued benefitas provided in this section, the 1 25 current system shall calculate the average accrued benefit and 1 26 the refund liability and the former system shall transfer to 1 27 the current system assets in an amount equal to the greater of 1 28 the average accrued benefit or the refund liability. Once the 1 29 transferof the average accrued benefitis completed, the 1 30 member's service under the former system shall be treated as 1 31 membership service under the current system for purposes of 1 32 this chapter and chapter 411. 1 33 DIVISION II 1 34 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 1 35 Sec. 4. Section 97B.1A, subsection 11, paragraphs a, b, 2 1 and c, Code Supplement 2003, are amended to read as follows: 2 2 a. Has attained the minimum age for receipt of a 2 3 retirement allowance under this chapter. 2 4 b. If the member has not attained seventy years of age, 2 5 has terminated all employment covered under the chapter or 2 6 formerly covered under the chapter pursuant to section 97B.42 2 7 in the month prior to the member's first month of entitlement. 2 8 c. Has filed a completed application for benefits with the 2 9 system setting forth the member's intended first month of 2 10 entitlement. 2 11 Sec. 5. Section 97B.1A, subsection 20, Code Supplement 2 12 2003, is amended by adding the following new paragraph: 2 13 NEW PARAGRAPH. e. Employment with an employer prior to 2 14 January 1, 1946, if the member is not receiving a retirement 2 15 allowance based upon that employment. 2 16 Sec. 6. Section 97B.1A, subsection 20, Code Supplement 2 17 2003, is amended by adding the following new unnumbered 2 18 paragraph after paragraph d: 2 19 NEW UNNUMBERED PARAGRAPH. However, effective July 1, 2004, 2 20 "service" does not mean service for which an employee receives 2 21 remuneration from an employer for temporary employment during 2 22 any quarter in which the employee is on an otherwise unpaid 2 23 leave of absence that is not authorized under the federal 2 24 Family and Medical Leave Act of 1993 or other similar leave. 2 25 Remuneration paid by the employer for the temporary employment 2 26 shall not be treated by the system as covered wages. 2 27 Sec. 7. Section 97B.1A, subsection 24, paragraphs a and c, 2 28 Code Supplement 2003, are amended to read as follows: 2 29 a. "Three-year average covered wage" means, for a member 2 30 who retires prior to July 1,20052008, a member's covered 2 31 wages averaged for the highest three years of the member's 2 32 service, except as otherwise provided in this subsection. The 2 33 highest three years of a member's covered wages shall be 2 34 determined using calendar years. However, if a member's final 2 35 quarter of a year of employment does not occur at the end of a 3 1 calendar year, the system may determine the wages for the 3 2 third year by computing the average quarter of all quarters 3 3 from the member's highest calendar year of covered wages not 3 4 being used in the selection of the two highest years and using 3 5 the computed average quarter for each quarter in the third 3 6 year in which no wages have been reported in combination with 3 7 the final quarter or quarters of the member's service to 3 8 create a full year. However, the system shall not use the 3 9 member's final quarter of wages if using that quarter would 3 10 reduce the member's three-year average covered wage. If the 3 11 three-year average covered wage of a member exceeds the 3 12 highest maximum covered wages in effect for a calendar year 3 13 during the member's period of service, the three-year average 3 14 covered wage of the member shall be reduced to the highest 3 15 maximum covered wages in effect during the member's period of 3 16 service. Notwithstanding any other provision of this 3 17 paragraph to the contrary, a member's wages for the third year 3 18 as computed by this paragraph shall not exceed, by more than 3 19 three percent, the member's highest actual calendar year of 3 20 covered wages for a member whose first month of entitlement is 3 21 January 1999 or later. 3 22 c. "Three-year average covered wage" means, for a member 3 23 who retires on or after July 1,20052008, the greater of the 3 24 member's covered wages averaged for a member's highest twelve 3 25 consecutive quarters of service or the member's covered wages 3 26 averaged for a member's highest three calendar years of 3 27 service. The system shall adopt rules to implement this 3 28 paragraph in accordance with the requirements of this chapter 3 29 and the federal Internal Revenue Code. 3 30 Sec. 8. Section 97B.1A, subsection 25, paragraph a, 3 31 subparagraph (4), Code Supplement 2003, is amended to read as 3 32 follows: 3 33 (4) Has attained the age of fifty-five. However, an 3 34 inactive member who has not attained sufficient years of 3 35 service eligibility to become vested and who has not attained 4 1 the age of fifty-five as of July 1, 2005, shall not become 4 2 vested upon the attainment of the age of fifty-five while an 4 3 inactive member. 4 4 Sec. 9. Section 97B.1A, subsection 26, paragraph a, 4 5 subparagraph (2), subparagraph subdivision (j), Code 4 6 Supplement 2003, is amended to read as follows: 4 7 (j) Payments of damages, attorney fees, interest, and 4 8 penalties made to satisfy a grievance,orwage claim, or 4 9 employment dispute. 4 10 Sec. 10. Section 97B.1A, subsection 26, paragraph a, 4 11 subparagraph (2), subparagraph subdivision (n), Code 4 12 Supplement 2003, is amended by striking the subparagraph 4 13 subdivision. 4 14 Sec. 11. Section 97B.1A, subsection 26, paragraph b, 4 15 unnumbered paragraph 3, Code Supplement 2003, is amended to 4 16 read as follows: 4 17 Effective July 1, 1992, "covered wages" does not include 4 18 wages to a member on or after the effective date of the 4 19 member's retirement, except as otherwise permitted by the 4 20 system's administrative rules, unless the member is 4 21 reemployed, as provided under section 97B.48A. 4 22 Sec. 12. NEW SECTION. 97B.9A COLLECTIONS – WAIVER. 4 23 Notwithstanding any provision of this chapter to the 4 24 contrary, the system may, in its sole discretion, waive the 4 25 collection of benefits overpayments, contribution 4 26 underpayments, or any other debts owed the system, that occur 4 27 more than three years prior to the date of discovery of the 4 28 overpayment, underpayment, or debt by the system, for cases in 4 29 which there is no evidence of fraud or other misconduct on the 4 30 part of the affected employer or the affected member or 4 31 beneficiary in providing or failing to provide information 4 32 necessary to the proper determination of a debt owed the 4 33 system, calculation of contributions and payments, or 4 34 calculation of benefits under this chapter. 4 35 Sec. 13. Section 97B.14A, Code Supplement 2003, is amended 5 1 to read as follows: 5 2 97B.14A WAGE REPORTING. 5 3 1. For purposes of this section, unless the context 5 4 otherwise requires: 5 5 a. "Change in the schedule of wage payments" means the 5 6 formal or informal deferral of wages earned in one calendar 5 7 year to a later calendar year or the acceleration of the wages 5 8 payable under a contract of employment to the prior calendar 5 9 year by changing the period over which the contractual 5 10 compensation is paid, by shortening the period of employment 5 11 over which contract wages are to be paid, or similar 5 12 arrangements altering the timing of wage payments. 5 13 b. "Distortion of the normal wage progression pattern" 5 14 means an increase of ten percent or more between the covered 5 15 wages reported for any two consecutive years. 5 16 2. An employer shall report wages of employees covered by 5 17 this chapter to the system in a manner and form as prescribed 5 18 by the system. If the wages reported by an employer appear to 5 19 be a distortion of the normal wage progression pattern for an 5 20 employee, the system may request that the employer provide 5 21 documentationindicating that the wages were not misreported5 22for the purposes of causing an increase in the retirement5 23allowance or other payments authorized to be made by this5 24chapterexplaining the reason for the distortion.If the5 25system determines that the wages of an employee were5 26misreported, the employer shall prepare and file wage5 27adjustments allocating the wages to the proper wage reporting5 28period.If the distortion of the normal wage progression 5 29 pattern results from covering compensation that is excluded 5 30 from the definition of covered wages, or from a change in the 5 31 schedule of wage payments for an individual, the system shall 5 32 remove wages that should not be covered from its records, and 5 33 shall, in cases involving increases caused by a change in the 5 34 schedule of wage payments, reallocate covered wages to the 5 35 calendar quarters in which the covered wages would have been 6 1 reported but for the change in the schedule of wage payments. 6 2 Sec. 14. Section 97B.17, subsection 1, Code Supplement 6 3 2003, is amended to read as follows: 6 4 1. The system shall establish and maintain records of each 6 5 member, including but not limited to the amount of wages of 6 6 each member, thecontributioncontributions made on behalf of 6 7 each member with interest,andinterest dividends credited, 6 8 beneficiary designations, and applications for benefits of any 6 9 type. The records may be maintained in paper, magnetic, or 6 10 electronic form, including optical disk storage, as set forth 6 11 in chapter 554D. The system may accept, but shall not 6 12 require, electronic records and electronic signatures to the 6 13 extent permitted under chapter 554D. These records are the 6 14 basis for the compilation of the retirement benefits provided 6 15 under this chapter. 6 16 Sec. 15. Section 97B.38, Code Supplement 2003, is amended 6 17 to read as follows: 6 18 97B.38 FEES FOR SERVICES. 6 19 The system may, by rule, prescribethe maximumreasonable 6 20 fees which may be charged forservices performed in connection6 21with any claim before the system under this chapter, and any6 22agreement in violation of such rules shall be voidproduction 6 23 costs, including staff time and materials, associated with 6 24 performing its duties under this chapter for active, inactive, 6 25 and retired members, beneficiaries, and the general public, 6 26 where such production costs are more than de minimis, as 6 27 determined by the system.Any person who shall, with intent6 28to defraud, in any manner willfully and knowingly deceive,6 29mislead, or threaten any claimant or prospective claimant or6 30beneficiary under this chapter by word, circular, letter or6 31advertisement, or who shall knowingly charge or collect6 32directly or indirectly any fee in excess of the maximum fee,6 33or make any agreement directly or indirectly to charge or6 34collect any fee in excess of the maximum fee, prescribed by6 35the system, shall be deemed guilty of a fraudulent practice.7 1 Sec. 16. Section 97B.40, Code Supplement 2003, is amended 7 2 by adding the following new subsection: 7 3 NEW SUBSECTION. 1A. If the system determines that a 7 4 person may have engaged in a fraudulent practice as described 7 5 under this section, the system may, in addition to any 7 6 statutory or equitable remedies provided by law, refer the 7 7 matter to the auditor of state and to the appropriate law 7 8 enforcement authorities for possible investigation and 7 9 prosecution. 7 10 Sec. 17. Section 97B.42, unnumbered paragraph 8, Code 7 11 Supplement 2003, is amended by striking the unnumbered 7 12 paragraph and inserting in lieu thereof the following: 7 13 Except as otherwise provided in this section, an employer 7 14 shall not sponsor and a member shall not participate in 7 15 another retirement system in this state supported in whole or 7 16 in part by public contributions or payments where such 7 17 retirement system is in lieu of the retirement system 7 18 established by this chapter. However, in addition to the 7 19 retirement system established by this chapter, an employer may 7 20 sponsor and a member may participate in a supplemental defined 7 21 contribution plan qualified under Internal Revenue Code 7 22 section 401(a), a tax-deferred annuity qualified under 7 23 Internal Revenue Code section 403(b), or an eligible deferred 7 24 compensation plan qualified under Internal Revenue Code 7 25 section 457, regardless of whether contributions to such 7 26 supplemental plans are characterized as employer contributions 7 27 or employee contributions, and subject to the applicable 7 28 limits set forth in the Internal Revenue Code for such plans. 7 29 A defined benefit plan that supplements the retirement system 7 30 established by this chapter shall not be offered by public 7 31 employers covered under this chapter. 7 32 Sec. 18. Section 97B.42A, subsection 4, Code Supplement 7 33 2003, is amended to read as follows: 7 34 4. A person who becomes a member of the retirement system 7 35 pursuant to subsection 3, or who is a member of the retirement 8 1 system, and who has one or more years of covered wages, may 8 2 purchase credit, pursuant to section 97B.73, Code 2003, for 8 3 one or more quarters of service prior to January 1, 1999, in 8 4 which the person was employed in a position as described in 8 5 section 97B.1A, subsection 8, paragraph "a", but was not a 8 6 member of the retirement system. 8 7 Sec. 19. Section 97B.42A, subsection 5, unnumbered 8 8 paragraph 2, Code Supplement 2003, is amended to read as 8 9 follows: 8 10 A person who becomes a member of the Iowa public employees' 8 11 retirement system pursuant to this subsection, and who has one 8 12 or more years of covered wages, may purchase credit, pursuant 8 13 to section 97B.73, Code 2003, for one or more quarters of 8 14 service prior to August 1, 2000, in which the person was 8 15 employed in a position as described by section 97B.1A, 8 16 subsection 8, paragraph "a", subparagraph (11), but was not a 8 17 member of the retirement system. 8 18 Sec. 20. Section 97B.43, unnumbered paragraph 3, Code 8 19 Supplement 2003, is amended to read as follows: 8 20 Each individual who on or after July 1, 1978, was an 8 21 active, vested, or retired member and who (1) made application 8 22 for and received a refund of contributions made under the 8 23 abolished system or (2) has on deposit with the retirement 8 24 fund contributions made under the abolished system shall be 8 25 entitled to credit for years of prior service in the 8 26 determination of retirement allowance payments by filing a 8 27 written election with the system on or after July 1, 1978, and 8 28 by redepositing any withdrawn contributions under the 8 29 abolished system together with interest as stated in this 8 30 paragraph. Any individual who on or after July 1, 1978, is a 8 31 retired member and who made application for and received a 8 32 refund of contributions made under the abolished system may, 8 33 by filing a written election with the system on or after July 8 34 1, 1978, have the system retain fifty percent of the monthly 8 35 increase in retiree benefits that will accrue to the 9 1 individual because of prior service. If the monthly increase 9 2 in retirement benefits is less than ten dollars, the system 9 3 shall retain five dollars of the scheduled increase, and if 9 4 the monthly increase is less than five dollars, the provisions 9 5 of this paragraph shall not apply. The system shall continue 9 6 to retain such funds until the withdrawn contributions, 9 7 together with interest accrued to the month in which the 9 8 written election is filed, have been repaid. Due notice of 9 9 this provision shall be sent to all retired members on or 9 10 after July 1, 1978. However, this paragraph shall not apply 9 11 to any person who received a refund of any membership service 9 12 contributions unless the person repaid the membership service 9 13 contributions pursuant to section97B.7497B.80C; but a refund 9 14 of contributions remitted for the calendar quarter ending 9 15 September 30, 1953 which was based entirely upon employment 9 16 which terminated prior to July 4, 1953 shall not be considered 9 17 as a refund of membership service contributions. The interest 9 18 to be paid into the fund shall be compounded at the rates 9 19 credited to member accounts from the date of payment of the 9 20 refund of contributions under the abolished system to the date 9 21 the member redeposits the refunded amount. The provisions of 9 22 the first paragraph of this section relating to the 9 23 consideration given to credited amounts shall apply to the 9 24 redeposited amounts or to amounts left on deposit. Effective 9 25 July 1, 1978, the provisions of this paragraph shall apply to 9 26 each individual who on or after July 1, 1978, was an active, 9 27 vested, or retired member, but who was not in service on July 9 28 4, 1953. The period for filing the written election with the 9 29 system and redepositing any withdrawn contributions together 9 30 with interest accrued shall commence July 1, 1978. A member 9 31 who is a retired member on or after July 1, 1978, may file 9 32 written election with the system on or after July 1, 1978, to 9 33 have the system retain fifty percent of the monthly increase 9 34 as provided in this paragraph. 9 35 Sec. 21. Section 97B.43, unnumbered paragraph 4, Code 10 1 Supplement 2003, is amended to read as follows: 10 2 Effective July 1,19882004, a member eligible for an 10 3 increased retirement allowance because of the repayment of 10 4 contributions under this section is entitled to receipt of 10 5retroactiveadjustment paymentsfor no more than six months10 6immediately precedingbeginning with the month in which 10 7written noticepayment wassubmitted toreceived by the 10 8 system. 10 9 Sec. 22. Section 97B.45, unnumbered paragraph 2, Code 10 10 Supplement 2003, is amended by striking the unnumbered 10 11 paragraph. 10 12 Sec. 23. Section 97B.46, subsection 2, Code Supplement 10 13 2003, is amended to read as follows: 10 14 2. A member remaining in service after attaining the age 10 15 of seventy years is entitled to receive a retirement allowance 10 16 under sections 97B.49A through 97B.49H, as applicable, 10 17commencing with payment for the calendar month within which10 18the written notice is submitted to the system, except that if10 19the member fails to submit the notice on a timely basis,10 20retroactive payments shall be made for no more than six months10 21immediately preceding the month in which the written notice is10 22submittedwithout terminating employment. 10 23 Sec. 24. Section 97B.47, Code Supplement 2003, is amended 10 24 to read as follows: 10 25 97B.47 EARLY RETIREMENT DATE. 10 26 A member's early retirement date shall be the first of the 10 27 month in which a member attains the age of fifty-five years or 10 28 the first of any month after attaining the age of fifty-five 10 29 years prior to the member's normal retirement date, provided 10 30 such date shall be after the last day of service.A member10 31may retire on the member's early retirement date by submitting10 32written notice to the system setting forth the early10 33retirement date which shall not be before the first day of the10 34sixth calendar month preceding the month in which such notice10 35is filed.11 1 Sec. 25. Section 97B.48, subsections 1 and 2, Code 11 2 Supplement 2003, are amended to read as follows: 11 3 1. Retirement allowances shall be paid monthly, except 11 4 that, if an allowance of less than six hundred dollars a year 11 5may, at the member's optionis payable pursuant to section 11 6 97B.51, subsection 1, paragraph "b", the member's retirement 11 7 benefit shall be paid as a lump sum in an amount equal to the 11 8 sum of the member's and employer's accumulated contributions 11 9 and the retirement dividends standing to the member's credit 11 10 before December 31, 1966. Receipt of the lump sum payment by 11 11 a member shall terminate any and all entitlement for the 11 12 period of service covered of the member under this chapter and 11 13 the member shall not be eligible to buy back the period of 11 14 service. 11 15 2. The first monthly payment of anormalretirement 11 16 allowance shall be paid as of thenormal retirement effective11 17date, which date shall be the later of the normal retirement11 18date or the first day of the sixth calendar month preceding11 19the month in which written notice of normal retirement is11 20submitted to the systemmember's first month of entitlement. 11 21Written notice under this section may consist of submission of11 22a completed estimate request form, a completed application for11 23retirement form, or a letter from the member requesting11 24information on retirement benefits, whichever is received11 25first by the system. However, a letter requesting information11 26on benefits or submission of a completed estimate request form11 27is only valid for six months following the date of its receipt11 28by the system, unless during that six-month period the system11 29receives a completed application for retirement form from the11 30member. A retirement allowance may only be provided11 31retroactively for a single six-month period. Payment of an11 32early retirement allowance or an allowance for retirement11 33after the normal retirement date shall be paid as of the11 34effective date of retirement subject to section 97B.45,11 3597B.46, or 97B.47.The payments shall be continued thereafter 12 1 for the lifetime of the retired member except as provided in 12 2 section 97B.48A. 12 3 Sec. 26. Section 97B.48, subsection 5, Code Supplement 12 4 2003, is amended by striking the subsection. 12 5 Sec. 27. Section 97B.48, Code Supplement 2003, is amended 12 6 by adding the following new subsections: 12 7 NEW SUBSECTION. 6. Effective on such date as the system 12 8 determines by rule, but in no event later than July 1, 2006, 12 9 if the system determines that the accumulated contributions of 12 10 a member, payable to a living member who has had a break in 12 11 service or to a beneficiary of a deceased member, are less 12 12 than three thousand dollars, the lump sum amount payable under 12 13 this chapter shall be paid to the living member or beneficiary 12 14 in full satisfaction of all rights of the member or 12 15 beneficiary to receive any payments under the system. For 12 16 purposes of this section, a "break in service" means twenty 12 17 consecutive calendar quarters in which no wages are reported 12 18 to the system. The lump sum payment shall be made within one 12 19 hundred eighty days after the calendar quarter in which the 12 20 member completes a break in service or dies, whichever is 12 21 applicable. A member or beneficiary who receives a mandatory 12 22 distribution under this subsection shall have sixty days to 12 23 return the distribution to the system and restore the member's 12 24 or beneficiary's account. 12 25 NEW SUBSECTION. 7. Effective July 1, 2005, monthly 12 26 retirement allowance payments shall be directly deposited 12 27 without charge to a retired member's account via electronic 12 28 funds transfer. A retired member may elect to receive monthly 12 29 allowance payments as paper warrants in lieu of electronic 12 30 funds transfers, but the system shall charge an administrative 12 31 fee for processing such paper warrants. The fee may be 12 32 automatically deducted from the monthly retirement allowance 12 33 before the warrant is issued to the retired member. 12 34 Sec. 28. Section 97B.48A, Code Supplement 2003, is amended 12 35 by adding the following new subsection: 13 1 NEW SUBSECTION. 5. If a retired reemployed member incurs 13 2 a break in service, as defined in this subsection, and the 13 3 member has failed to request an increase in the member's 13 4 monthly allowance or a distribution of the member's and 13 5 employer's accumulated contributions prior to the break in 13 6 service, and if the amount of the increase in the member's 13 7 monthly retirement allowance would be less than six hundred 13 8 dollars per year, the system shall distribute the lump sum 13 9 amount payable under subsection 4. For purposes of this 13 10 subsection, a "break in service" means four consecutive 13 11 calendar quarters in which no wages are reported to the 13 12 system. The lump sum payment shall be made within one hundred 13 13 eighty days after the calendar quarter in which the member has 13 14 a break in service. A member who receives a mandatory 13 15 distribution under this subsection shall have sixty days to 13 16 return the distribution to the system and request an increase 13 17 in the member's monthly allowance. 13 18 Sec. 29. NEW SECTION. 97B.49 DORMANT ACCOUNTS. 13 19 1. In the event that all, or any portion, of a retirement 13 20 allowance, death benefit, or other distribution payable to a 13 21 member or a member's designated beneficiary, heirs at law, or 13 22 estate, remains unpaid solely by reason of the inability of 13 23 the system to locate the appropriate payee, the amount payable 13 24 shall not be forfeited but shall be treated as a dormant 13 25 account after the time for making a claim has run. 13 26 2. A dormant account shall revert to the retirement fund 13 27 created in section 97B.7. A dormant account shall be non- 13 28 interest-bearing, and except for keeping a record of such 13 29 account, the system shall not maintain the account. A member 13 30 who has a dormant account and returns to covered employment 13 31 shall have their dormant account reactivated as of the quarter 13 32 they return to covered employment. If the appropriate payee 13 33 contacts the system after the amount payable is treated as a 13 34 dormant account, the appropriate payee may claim such amounts 13 35 by filing a withdrawal application provided by the system. 14 1 The system shall have rulemaking authority to adopt rules 14 2 necessary to implement this section in a just and equitable 14 3 manner. 14 4 3. The system shall ensure that the payment of a dormant 14 5 account as provided in this section meets the requirements of 14 6 section 401(a)(9) of the federal Internal Revenue Code. 14 7 Sec. 30. Section 97B.50, subsection 2, Code Supplement 14 8 2003, is amended to read as follows: 14 9 2. a. A vested member who retires from the retirement 14 10 system due to disability and commences receiving disability 14 11 benefits pursuant to the federal Social Security Act, 42 14 12 U.S.C. } 423 et seq., and who has not reached the normal 14 13 retirement date, shall receive benefits as selected under 14 14 section 97B.51, and shall not have benefits reduced upon 14 15 retirement as required under subsection 1 regardless of 14 16 whether the member has completed thirty or more years of 14 17 membership service. However, the benefits shall be suspended 14 18 during any period in which the member returns to covered 14 19 employment. This section takes effect July 1, 1990, for a 14 20 member meeting the requirements of this paragraph who retired 14 21 from the retirement system at any time after July 4, 1953. 14 22 Eligible members retiring on or after July 1, 2000, are 14 23 entitled to the receipt of retroactive adjustment payments for 14 24 no more than thirty-six months immediately preceding the month 14 25 in which writtennotice ofapplication for retirement due to 14 26 disability wassubmitted toreceived by the system,14 27notwithstanding the requirements of subsection 4. 14 28 b. A vested member who retires from the retirement system 14 29 due to disability and commences receiving disability benefits 14 30 pursuant to the federal Railroad Retirement Act, 45 U.S.C. } 14 31 231 et seq., and who has not reached the normal retirement 14 32 date, shall receive benefits as selected under section 97B.51, 14 33 and shall not have benefits reduced upon retirement as 14 34 required under subsection 1 regardless of whether the member 14 35 has completed thirty or more years of membership service. 15 1 However, the benefits shall be suspended during any period in 15 2 which the member returns to covered employment. This section 15 3 takes effect July 1, 1990, for a member meeting the 15 4 requirements of this paragraph who retired from the retirement 15 5 system at any time since July 4, 1953. Eligible members 15 6 retiring on or after July 1, 2000, are entitled to the receipt 15 7 of retroactive adjustment payments for no more than thirty-six 15 8 months immediately preceding the month in which writtennotice15 9ofapplication for retirement due to disability wassubmitted15 10toreceived by the system, notwithstanding the requirements of15 11subsection 4. 15 12 c. A vested member who terminated service due to a 15 13 disability, who has been issued payment for a refund pursuant 15 14 to section 97B.53, and who subsequently commences receiving 15 15 disability benefits as a result of that disability pursuant to 15 16 the federal Social Security Act, 42 U.S.C. } 423 et seq. or 15 17 the federal Railroad Retirement Act, 45 U.S.C. } 231 et seq., 15 18 may receive credit for membership service for the period 15 19 covered by the refund payment, upon repayment to the system of 15 20 the actuarial cost of receiving service credit for the period 15 21 covered by the refund payment, as determined by the system. 15 22 For purposes of this paragraph, the actuarial cost of the 15 23 service purchase shall be determined as provided in section 15 2497B.7497B.80C. The payment to the system as provided in this 15 25 paragraph shall be made within ninety days after July 1, 2000, 15 26 or the date federal disability payments commenced, whichever 15 27 occurs later. For purposes of this paragraph, the date 15 28 federal disability payments commence shall be the date that 15 29 the member actually receives the first such payment, 15 30 regardless of any retroactive payments included in that 15 31 payment. A member who repurchases service credit under this 15 32 paragraph and applies for retirement benefits shall have the 15 33 member's monthly allowance, including retroactive adjustment 15 34 payments, determined in the same manner as provided in 15 35 paragraph "a" or "b", as applicable.This paragraph shall not16 1be implemented until the system has received a determination16 2letter from the federal internal revenue service approving the16 3system's plan's qualified status under Internal Revenue Code16 4section 401(a).16 5 Sec. 31. Section 97B.50, subsection 4, Code Supplement 16 6 2003, is amended by striking the subsection. 16 7 Sec. 32. Section 97B.50A, subsection 5, Code Supplement 16 8 2003, is amended to read as follows: 16 9 5. OFFSET TO ALLOWANCE. Notwithstanding any provisions to 16 10 the contrary in state law, or any applicable contract or 16 11 policy, any amounts which may be paid or payable by the 16 12 employer under any workers' compensation, unemployment 16 13 compensation, employer-paid disability plan, program, or 16 14 policy, or other law to a member, and any disability payments 16 15 the member receives pursuant to the federal Social Security 16 16 Act, 42 U.S.C. } 423 et seq., shall be offset against and 16 17 payable in lieu of any retirement allowance payable pursuant 16 18 to this section on account of the same disability. 16 19 Sec. 33. Section 97B.52, subsection 1, unnumbered 16 20 paragraph 1, Code Supplement 2003, is amended to read as 16 21 follows: 16 22 Ifaan inactive member, with at least sixteen calendar 16 23 quarters of service credit, or any active member dies prior to 16 24 the member's first month of entitlement, the member's 16 25 beneficiary shall be entitled to receive a death benefit equal 16 26 to the greater of the amount provided in paragraph "a" or "b". 16 27 If an inactive member with less than sixteen calendar quarters 16 28 of service credit dies prior to the member's first month of 16 29 entitlement, the member's beneficiary shall only be entitled 16 30 to receive a death benefit, as a lump sum, equal to the amount 16 31 provided in paragraph "a". 16 32 Sec. 34. Section 97B.52, subsection 5, unnumbered 16 33 paragraph 3, Code Supplement 2003, is amended by striking the 16 34 unnumbered paragraph. 16 35 Sec. 35. Section 97B.52, subsection 7, Code Supplement 17 1 2003, is amended to read as follows: 17 2 7. If a member has not filed a designation of beneficiary 17 3 with the system, the death benefit is payable to the member's 17 4 estate. If no designation has been filed and an estate is not 17 5 probated, the death benefit shall be paid to the surviving 17 6 spouse, if any. If no designation has been filed, no estate 17 7 has been probated, and there is no surviving spouse, the death 17 8 benefit shall be paid to the heirs as provided in this 17 9 subsection. The system shall pay the full amount of a 17 10 member's death benefits to those heirs who have presented a 17 11 claim for such benefits within five years after the member's 17 12 date of death. The system is not liable for the payment of 17 13 any claims by heirs who make themselves known to the system 17 14 more than five years after the date of death of the member. 17 15OtherwiseIf a death benefit is not paid as provided by this 17 16 subsection, the death benefit shall remain in the fund. 17 17 Sec. 36. Section 97B.53, subsection 4, Code Supplement 17 18 2003, is amended to read as follows: 17 19 4. A member has not terminated employment for purposes of 17 20 this section if the memberacceptscommences other covered 17 21 employment within thirty days afterreceiving the last payment17 22of wages forthe date employment was terminated with a covered 17 23employmentemployer, or if the member begins covered 17 24 employment prior to filing a request for a refund with the 17 25 system. 17 26 Sec. 37. Section 97B.53B, subsection 1, paragraph c, 17 27 subparagraph (2), subparagraph subdivision (c), Code 17 28 Supplement 2003, is amended to read as follows: 17 29 (c)ThePrior to January 1, 2002, the portion of any 17 30 distribution that is not includible in the gross income of the 17 31 distributee, determined without regard to the exclusion for 17 32 net unrealized appreciation with respect to employer 17 33 securities. 17 34 Sec. 38. Section 97B.73B, subsection 2, paragraph b, Code 17 35 Supplement 2003, is amended to read as follows: 18 1 b. For a purchase of membership service on or after July 18 2 1, 2002, the actuarial cost of the service purchase in a 18 3 manner as provided in section97B.7397B.80C. 18 4 Sec. 39. Section 97B.73B, subsection 2, Code Supplement 18 5 2003, is amended by adding the following new paragraph: 18 6 NEW PARAGRAPH. c. Effective July 1, 2004, a member 18 7 eligible for an increased retirement allowance because of the 18 8 payment of contributions under this section is entitled to 18 9 adjusted payments beginning with the month in which the member 18 10 pays contributions under this section. 18 11 Sec. 40. Section 97B.80, subsection 3, Code Supplement 18 12 2003, is amended to read as follows: 18 13 3.The system shall adjust benefits for a six-month period18 14prior to the date the member pays contributions under this18 15section if the member is receiving a retirement allowance at18 16the time the contribution payment is made.Verification of 18 17 active duty service and payment of contributions shall be made 18 18 to the system. However, a member is not eligible to make 18 19 contributions under this section if the member is receiving, 18 20 is eligible to receive, or may in the future be eligible to 18 21 receive retirement pay from the United States government for 18 22 active duty in the armed forces, except for retirement pay 18 23 granted by the United States government under retired pay for 18 24 nonregular service pursuant to 10 U.S.C. } 12731 – 12739. A 18 25 member receiving retired pay for nonregular service who makes 18 26 contributions under this section shall provide information 18 27 required by the system documenting time periods covered under 18 28 retired pay for nonregular service. 18 29 Sec. 41. Section 97B.80, subsection 4, Code Supplement 18 30 2003, is amended by striking the subsection and inserting in 18 31 lieu thereof the following: 18 32 4. Effective July 1, 2004, a member eligible for an 18 33 increased retirement allowance because of the payment of 18 34 contributions under this section is entitled to adjusted 18 35 payments beginning with the month in which the member pays 19 1 contributions under this section. 19 2 Sec. 42. Section 97B.80C, subsection 1, paragraph a, Code 19 3 Supplement 2003, is amended to read as follows: 19 4 a. "Nonqualified service" means service that is not 19 5 qualified service.and includes, but is not limited to, any of 19 6 the following: 19 7 (1) Full-time volunteer public service in the federal 19 8 peace corps program. 19 9 (2) Public employment comparable to employment covered 19 10 under this chapter in a qualified Canadian governmental entity 19 11 that is an elementary school, secondary school, college, or 19 12 university that is organized, administered, and primarily 19 13 supported by the provincial, territorial, or federal 19 14 governments of Canada, or any combination of the same. 19 15 Sec. 43. Section 97B.80C, subsection 1, paragraph c, 19 16 subparagraph (1), Code Supplement 2003, is amended by adding 19 17 the following new subparagraph subdivisions: 19 18 NEW SUBPARAGRAPH SUBDIVISION. (e) Service as a member of 19 19 the general assembly. 19 20 NEW SUBPARAGRAPH SUBDIVISION. (f) Previous service as a 19 21 county attorney by a part-time county attorney. 19 22 NEW SUBPARAGRAPH SUBDIVISION. (g) Service in public 19 23 employment comparable to employment covered under this chapter 19 24 in another state or in the federal government, or service as a 19 25 member of another public retirement system in this state, 19 26 including but not limited to the teachers insurance and 19 27 annuity association-college retirement equities fund (TIAA- 19 28 CREF), if the member was not retired under that system and has 19 29 no further claim upon a retirement benefit from that other 19 30 public system. 19 31 NEW SUBPARAGRAPH SUBDIVISION. (h) Service as a member of 19 32 the retirement system at any time on or after July 4, 1953, if 19 33 the member received a refund of the member's accumulated 19 34 contributions for that period of membership service. 19 35 NEW SUBPARAGRAPH SUBDIVISION. (i) An approved leave of 20 1 absence which does not constitute service as defined in 20 2 section 97B.1A, which is granted on or after July 1, 1998. 20 3 NEW SUBPARAGRAPH SUBDIVISION. (j) Employment of a person 20 4 who at the time of the employment was not covered by this 20 5 chapter, was employed by a covered employer under this 20 6 chapter, and did not opt out of coverage under this chapter. 20 7 NEW SUBPARAGRAPH SUBDIVISION. (k) Employment of a person 20 8 as an adjunct instructor as defined in section 97B.1A, 20 9 subsection 8. 20 10 Sec. 44. Section 97B.80C, subsection 3, Code Supplement 20 11 2003, is amended to read as follows: 20 12 3. a. A member making contributions for a purchase of 20 13 permissive service credit under this section, except as 20 14 otherwise provided by this subsection, shall make 20 15 contributions in an amount equal to the actuarial cost of the 20 16 permissive service credit purchase.For purposes of this20 17subsection, the actuarial cost of the service purchase is an20 18amount determined by the system in accordance with actuarial20 19tables, as reported to the system by the system's actuary,20 20which reflects the actuarial cost necessary to fund an20 21increased retirement allowance resulting from the purchase of20 22permissive service credit.20 23 b. For a member making contributions for a purchase of 20 24 permissive service credit for qualified service as described 20 25 in subsection 1, paragraph "c", subparagraph (1), subparagraph 20 26 subdivision (e), under this section, the member shall make 20 27 contributions in an amount equal to forty percent of the 20 28 actuarial cost of the service purchase. There is appropriated 20 29 from the general fund of the state to the system an amount 20 30 sufficient to pay sixty percent of the actuarial cost of the 20 31 service purchase by a member pursuant to this paragraph. 20 32 c. For a member making contributions for a purchase of 20 33 permissive service credit for qualified service as described 20 34 in subsection 1, paragraph "c", subparagraph (1), subparagraph 20 35 subdivision (f), under this section, the member shall make 21 1 contributions in an amount equal to forty percent of the 21 2 actuarial cost of the service purchase. Upon notification of 21 3 the applicable county board of supervisors of the member's 21 4 election, the county board of supervisors shall pay to the 21 5 system an amount sufficient to pay sixty percent of the 21 6 actuarial cost of the service purchase by a member pursuant to 21 7 this paragraph. 21 8 d. For purposes of this subsection, the actuarial cost of 21 9 the service purchase is an amount determined by the system in 21 10 accordance with actuarial tables, as reported to the system by 21 11 the system's actuary, which reflects the actuarial cost 21 12 necessary to fund an increased retirement allowance resulting 21 13 from the purchase of permissive service credit. 21 14 Sec. 45. Section 97B.80C, Code Supplement 2003, is amended 21 15 by adding the following new subsections: 21 16 NEW SUBSECTION. 3A. Effective July 1, 2004, a member 21 17 eligible for an increased retirement allowance because of the 21 18 payment of contributions under this or any other section 21 19 providing for the purchase of service credit is entitled to 21 20 adjusted payments beginning with the month in which the member 21 21 pays contributions under the applicable section. 21 22 NEW SUBSECTION. 3B. Effective July 1, 2004, a purchase of 21 23 service made in accordance with this or any other section 21 24 providing for the purchase of service credit by a retired 21 25 reemployed member shall be applied to the member's original 21 26 retirement allowance. The member is eligible to receive 21 27 adjustment payments beginning with the month of the purchase. 21 28 NEW SUBSECTION. 3C. A member who is entitled to a benefit 21 29 from another public retirement system and wishes to purchase 21 30 the service covered by that public retirement system must 21 31 waive, on a form provided by the Iowa public employees' 21 32 retirement system, all rights to a retirement benefit under 21 33 that other public system before purchasing credit in this 21 34 system for the period of service covered by that other public 21 35 system. The waiver must be accepted by the other public 22 1 system. If the waiver is not obtained, a member may buy up to 22 2 twenty quarters of such service credit. In no event can a 22 3 member receive more than one service credit for any given 22 4 calendar quarter. 22 5 Sec. 46. Sections 97B.72, 97B.72A, 97B.73, 97B.73A, 22 6 97B.74, 97B.75, 97B.80A, 97B.80B, and 97B.81, Code Supplement 22 7 2003, are repealed. 22 8 Sec. 47. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. The 22 9 section of this Act amending section 97B.53B, subsection 1, 22 10 paragraph "c", being deemed of immediate importance, takes 22 11 effect upon enactment and is retroactively applicable to 22 12 January 1, 2002, and is applicable on and after that date. 22 13 DIVISION III 22 14 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 22 15 Sec. 48. Section 411.5, Code 2003, is amended by adding 22 16 the following new subsection: 22 17 NEW SUBSECTION. 14. MEDICAL RECORDS. A physician or 22 18 surgeon, physician assistant, advanced registered nurse 22 19 practitioner, or mental health professional who provides 22 20 records to the system in connection with the application by a 22 21 member for disability retirement under this chapter shall be 22 22 entitled to charge a fee for production of the records. The 22 23 fee for copies of any records shall not exceed the actual cost 22 24 of production. The board of trustees may, by rule, limit the 22 25 amount to be paid for such copies. 22 26 Sec. 49. Section 411.6, subsection 7, unnumbered paragraph 22 27 1, Code 2003, is amended to read as follows: 22 28Re-examinationReexamination of beneficiaries retired on 22 29 account of disability.Once each year during the first five22 30years following the retirement of a member on a disability22 31retirement allowance, and once in every three-year period22 32thereafter, theThe system may, and upon the member's 22 33 application shall, require any disability beneficiary who has 22 34 not yet attained age fifty-five to undergo a medical 22 35 examination at a place designated by the medical board. The 23 1 examination shall be made by the medical board or in special 23 2 cases, by an additional physician or physicians designated by 23 3 such board. If any disability beneficiary who has not 23 4 attained the age of fifty-five refuses to submit to the 23 5 medical examination, the member's allowance may be 23 6 discontinued until withdrawal of such refusal, and if the 23 7 refusal continues for one year all rights in and to the 23 8 member's pension may be revoked by the system. For a 23 9 disability beneficiary who has not attained the age of fifty- 23 10 five and whose entitlement to a disability retirement 23 11 commenced on or after July 1, 2000, the medical board may, as 23 12 part of the examination required by this subsection, suggest 23 13 appropriate medical treatment or rehabilitation if, in the 23 14 opinion of the medical board, the recommended treatment or 23 15 rehabilitation would likely restore the disability beneficiary 23 16 to duty. 23 17 Sec. 50. Section 411.6, subsection 7, paragraph a, 23 18 unnumbered paragraph 2, Code 2003, is amended to read as 23 19 follows: 23 20 A beneficiary retired under this lettered paragraph, in 23 21 order to be eligible for continued receipt of retirement 23 22 benefits, shall no later than May 15 of each year submit to 23 23 the system a copy of the beneficiary's federal individual 23 24 income tax return for the preceding year. The beneficiary 23 25 shall also submit, within a reasonable period of time, any 23 26 documentation requested by the system that is determined to be 23 27 necessary by the system to determine the beneficiary's gross 23 28 wages. 23 29 Sec. 51. Section 411.6, subsection 17, paragraphs a and b, 23 30 Code 2003, are amended to read as follows: 23 31 a. An individual who is otherwise entitled to a retirement 23 32 allowance under this chapter shall not receive a retirement 23 33 allowance for any month during whichboth ofthefollowing23 34conditions exist:23 35(1) Theindividual is confined in a jail, prison, or other 24 1 correctional facility pursuant to the individual's conviction 24 2 of a felony. 24 3(2) The individual has a spouse, or a child or children,24 4as defined in section 411.1.Payments to the individual shall 24 5 be reinstated prospectively effective with the date of the 24 6 individual's release from confinement. 24 7 b. The amount of the retirement allowance not paid to the 24 8 individual under paragraph "a" shall be paid in the following 24 9 order of priority: 24 10 (1) To the individual's spouse, if any. 24 11 (2) If there is no spouse, then to the individual's child 24 12 or children, as defined in section 411.1, if any. 24 13 (3) If there is no spouse or child, then no retirement 24 14 allowance shall be paid for any month of the individual's 24 15 confinement. 24 16 Sec. 52. Section 411.6B, subsection 1, Code 2003, is 24 17 amended to read as follows: 24 18 1. As used in this section, unless the context otherwise 24 19 requires, and to the extent permitted by the internal revenue 24 20 service: 24 21 a. "Direct rollover" means a payment by the system to the 24 22 eligible retirement plan specified by the member or the 24 23 member's surviving spouse, or the member's alternate payee 24 24 under a marital property order who is the member's spouse or 24 25 former spouse. 24 26 b. "Eligible retirement plan" meanseitherany of the 24 27 following that accepts an eligible rollover distribution from 24 28 a member,ora member's surviving spouse, or a member's 24 29 alternate payee: 24 30 (1) An individual retirement account in accordance with 24 31 section 408(a) of the federal Internal Revenue Code. 24 32 (2) An individual retirement annuity in accordance with 24 33 section 408(b) of the federal Internal Revenue Code. 24 34 In addition, an "eligible retirement plan" includes an 24 35 annuity plan in accordance with section 403(a) of the federal 25 1 Internal Revenue Code, or a qualified trust in accordance with 25 2 section 401(a) of the federal Internal Revenue Code, that 25 3 accepts an eligible rollover distribution from a member. 25 4 Effective January 1, 2002, the term "eligible retirement plan" 25 5 also includes an annuity contract described in section 403(b) 25 6 of the federal Internal Revenue Code, and an eligible plan 25 7 under section 457(b) of the federal Internal Revenue Code 25 8 which is maintained by a state, political subdivision of a 25 9 state, or any agency or instrumentality of a state or 25 10 political subdivision of a state that chooses to separately 25 11 account for amounts rolled over into such eligible retirement 25 12 plan from the system. 25 13 c. "Eligible rollover distribution" means all or any 25 14 portion of a member's account, except that an eligible 25 15 rollover distribution does not include any of the following: 25 16 (1) A distribution that is one of a series of 25 17 substantially equal periodic payments, which occur annually or 25 18 more frequently, made for the life or life expectancy of the 25 19 distributee or the joint lives or joint life expectancies of 25 20 the distributee and the distributee's designated beneficiary, 25 21 or made for a specified period of ten years or more. 25 22 (2) A distribution to the extent that the distribution is 25 23 required pursuant to section 401(a)(9) of the federal Internal 25 24 Revenue Code. 25 25 (3) The portion of any distribution that is not includible 25 26 in the gross income of the distributee, determined without 25 27 regard to the exclusion for net unrealized appreciation with 25 28 respect to employer securities. Provided, however, that 25 29 effective January 1, 2002, such distributions may be directly 25 30 rolled over to an individual retirement account described in 25 31 federal Internal Revenue Code section 408(a) or 408(b), a 25 32 qualified defined contribution plan described in federal 25 33 Internal Revenue Code section 401(a), or a qualified annuity 25 34 plan described in federal Internal Revenue Code section 25 35 403(a), if such plan agrees to separately account for the 26 1 after-tax amount so rolled over. 26 2 (4) A distribution of less than two hundred dollars of 26 3 taxable income. 26 4 Sec. 53. Section 411.22, subsection 1, paragraph b, Code 26 5 2003, is amended to read as follows: 26 6 b. A sum sufficient to pay the retirement system the 26 7 present worth, computed at the interest rateprovided in26 8section 535.3 for court judgments and decreesassumption 26 9 adopted by the system pursuant to section 411.5, subsection 9, 26 10 of the future payments of such benefits, for which the 26 11 retirement system is liable, but the sum is not a final 26 12 adjudication of the future payments which the member is 26 13 entitled to receive. 26 14 Sec. 54. Section 411.31, subsection 1, Code 2003, is 26 15 amended by adding the following new paragraph: 26 16 NEW PARAGRAPH. e. "Refund liability" means the amount the 26 17 member may elect to withdraw from the former system under 26 18 section 97A.16. 26 19 Sec. 55. Section 411.31, subsection 2, Code 2003, is 26 20 amended to read as follows: 26 21 2. Commencing July 1, 1996, a vested member of an eligible 26 22 retirement system who terminates employment covered by one 26 23 eligible retirement system and, within one year, commences 26 24 employment covered by the other eligible retirement system may 26 25 elect to transfer the greater of the average accrued benefit 26 26 or refund liability earned from the former system to the 26 27 current system. The member shall file an application with the 26 28 current system for transfer of the greater of the average 26 29 accrued benefit or refund liability within ninety days of the 26 30 commencement of employment with the current system. 26 31 Sec. 56. Section 411.31, subsection 4, Code 2003, is 26 32 amended to read as follows: 26 33 4. Upon receipt of an application for transferof the26 34average accrued benefitas provided in this section, the 26 35 current system shall calculate the average accrued benefit and 27 1 the refund liability and the former system shall transfer to 27 2 the current system assets in an amount equal to the greater of 27 3 the average accrued benefit or refund liability. Once the 27 4 transferof the average accrued benefitis completed, the 27 5 member's service under the former system shall be treated as 27 6 membership service under the current system for purposes of 27 7 this chapter and chapter 97A. 27 8 Sec. 57. EFFECTIVE DATE – RETROACTIVE APPLICABILITY. The 27 9 section of this Act amending section 411.6B, subsection 1, 27 10 being deemed of immediate importance, takes effect upon 27 11 enactment and is retroactively applicable to January 1, 2002, 27 12 and is applicable on and after that date. 27 13 EXPLANATION 27 14 This bill makes numerous changes to public retirement 27 15 systems, including the public safety peace officers' 27 16 retirement, accident, and disability system, the Iowa public 27 17 employees' retirement system, and the statewide fire and 27 18 police retirement system. The bill may include a state 27 19 mandate as defined in Code section 25B.3. The state mandate 27 20 funding requirement in Code section 25B.2, however, does not 27 21 apply to public employee retirement systems. The changes to 27 22 each public retirement system are as follows: 27 23 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND 27 24 DISABILITY SYSTEM (PORS) 27 25 Code section 97A.17, concerning portability of service 27 26 between membership in PORS and the statewide fire and police 27 27 retirement system under Code chapter 411, is amended. The 27 28 change provides that the amount transferred from the former to 27 29 the new or current retirement system to obtain service credit 27 30 in the current system is the greater of the average accrued 27 31 benefit earned or the amount the member could receive as a 27 32 refund from terminating service under the former system. 27 33 Under current law, only the average accrued benefit amount is 27 34 considered and transferred. A corresponding change to Code 27 35 section 411.31 is also made. 28 1 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS) 28 2 Code section 97B.1A, subsection 11, defining first month of 28 3 entitlement, is amended to require that a member making 28 4 application for a retirement allowance designate the member's 28 5 intended first month of entitlement. 28 6 Code section 97B.1A, subsection 20, defining service, is 28 7 amended to provide that service does not include temporary 28 8 employment during any quarter the member is otherwise on an 28 9 unpaid leave of absence that is not authorized by the federal 28 10 Family and Medical Leave Act. 28 11 Code section 97B.1A, subsection 24, paragraphs "a" and "c", 28 12 are amended to change the date for changing the method of 28 13 determining a member's three-year average covered wage to a 28 14 calculation based on the member's highest 12 consecutive 28 15 quarters of service from July 1, 2005, to July 1, 2008. 28 16 Code section 97B.1A, subsection 25, is amended to provide 28 17 that an inactive member of IPERS does not become vested under 28 18 IPERS solely by reaching age 55 as of July 1, 2005. 28 19 Code section 97B.1A, subsection 26, concerning the 28 20 definition of wages, is amended to provide that payments 28 21 received from an employment dispute are not wages for purposes 28 22 of calculating a retirement allowance. In addition, the 28 23 subsection is amended to provide that wages to a member on or 28 24 after the member's retirement can be considered covered wages 28 25 pursuant to rules adopted by IPERS and payments made for the 28 26 difference between single and family insurance coverage are 28 27 also considered covered wages. 28 28 New Code section 97B.9A permits IPERS to waive the 28 29 collection of benefits overpayments, contribution 28 30 underpayments, or debts owed the system, if they occurred more 28 31 than three years before the overpayment, underpayment, or debt 28 32 is discovered if there is no evidence of fraud or misconduct. 28 33 Code section 97B.14A, concerning wage reporting, is amended 28 34 relating to the issue of whether wages reported appear to be a 28 35 distortion of the normal wage progression pattern for an 29 1 employee. The change defines this distortion as an increase 29 2 of 10 percent or more between wages reported for any two 29 3 consecutive years. The change permits IPERS to adjust or 29 4 reallocate a member's wages if the distortion of the normal 29 5 wage progression resulted from covering compensation that is 29 6 excluded from the definition of covered wages or from a change 29 7 in the schedule of wage payments for an individual. 29 8 Code section 97B.17, concerning records maintained by 29 9 IPERS, is amended to permit storage and acceptance of 29 10 electronic records as permitted under Code chapter 554D. 29 11 Code section 97B.38 is amended to permit IPERS to charge an 29 12 administrative fee for the cost of performing its duties under 29 13 this chapter if the cost is more than de minimis. 29 14 Code section 97B.40, concerning fraud, is amended to 29 15 provide that if IPERS believes a person may have engaged in 29 16 fraud, IPERS can refer the matter to the state auditor and to 29 17 the appropriate law enforcement authorities. 29 18 Code section 97B.42, concerning membership in other 29 19 retirement systems, is amended to provide that an IPERS member 29 20 may also participate in certain supplemental savings plans, 29 21 including a supplemental defined contribution plan qualified 29 22 under Internal Revenue Code section 401(a), a tax-deferred 29 23 annuity qualified under Internal Revenue Code section 403(b), 29 24 or an eligible deferred compensation plan qualified under 29 25 Internal Revenue Code section 457, regardless of whether 29 26 contributions to such supplemental plans are characterized as 29 27 employer contributions or employee contributions, and subject 29 28 to the applicable limits set forth in the Internal Revenue 29 29 Code for such plans. The change does not permit a 29 30 supplemental defined benefit plan. Under current law, only a 29 31 deferred compensation plan or tax-sheltered annuity are 29 32 permitted. 29 33 Code sections 97B.43, 97B.45, 97B.46, 97B.47, 97B.48, 29 34 97B.50, 97B.73B, 97B.80, and 97B.80C, concerning the payment 29 35 of a retirement allowance, or adjusted retirement allowance, 30 1 under Code chapter 97B, are amended to eliminate the ability 30 2 of an IPERS member to request and obtain up to six months of 30 3 retroactive payments of an allowance. The sections are 30 4 amended to only provide for payments once an application for 30 5 an allowance, or adjustment of allowance, is made to the 30 6 system. 30 7 Code section 97B.48, concerning payment of allowances, is 30 8 amended. Subsection 1 is amended to provide that if an annual 30 9 retirement benefit would be less than $600, the payment must 30 10 be in a lump sum equal to the sum of the member's and 30 11 employer's accumulated contributions. Subsection 2 is amended 30 12 to provide that the first monthly payment of a retirement 30 13 allowance shall be in the member's first month of entitlement. 30 14 Code section 97B.48 is also amended by adding new 30 15 subsection 6, which provides that, effective no later than 30 16 July 1, 2006, if the accumulated contributions of a member who 30 17 has had a five-year break in service or is deceased are less 30 18 than $3,000, that amount shall be paid to the member, or the 30 19 member's beneficiary, in full satisfaction of the member's 30 20 claims under IPERS. A member or beneficiary has 60 days to 30 21 repay the distribution and regain rights under IPERS. 30 22 Code section 97B.48 is also amended by adding new 30 23 subsection 7, which provides that beginning July 1, 2005, 30 24 IPERS will charge a processing fee to members who elect to 30 25 receive paper warrants in lieu of electronic deposits of their 30 26 IPERS retirement allowance. 30 27 Code section 97B.48A is amended to provide a mandatory 30 28 distribution of a member's and employer's accumulated 30 29 contributions not used in the calculation of the member's 30 30 retirement for retired reemployed members who fail to 30 31 annuitize or receive a lump sum distribution of their 30 32 reemployment account balance within one year after terminating 30 33 the reemployment if the increase in the member's retirement 30 34 allowance based on this amount would be less than $600 per 30 35 year. A member has 60 days to repay the distribution and 31 1 regain rights under IPERS. 31 2 New Code section 97B.49 provides for the handling of 31 3 dormant accounts. The new Code section provides that if any 31 4 retirement allowance, death benefit, or other payment remains 31 5 unpaid solely by reason of the inability of the system to 31 6 locate the appropriate payee, the amount payable shall not be 31 7 forfeited but shall be treated as a dormant account after the 31 8 time for making a claim has run. Moneys in a dormant account 31 9 are non-interest-bearing and are reverted to the IPERS trust 31 10 fund. If the appropriate payee returns to covered employment, 31 11 or makes application for payment with the system, the dormant 31 12 account will be reactivated. Current provisions dealing with 31 13 the inability to locate a payee in Code sections 97B.48 and 31 14 97B.52 are eliminated by the bill. 31 15 Code section 97B.50A is amended to provide that the offset 31 16 concerning disability payments for special service members for 31 17 employer-provided disability benefits includes payments under 31 18 an employer-provided disability plan or insurance policy. 31 19 Code section 97B.52, subsection 1, is amended to provide 31 20 that the option of receiving an IPERS preretirement death 31 21 benefit, which is the actuarial present value of the member's 31 22 accrued IPERS benefit, is only available to a beneficiary of 31 23 an inactive member if the inactive member had at least 16 31 24 quarters of service credit. 31 25 Code section 97B.52, subsection 5, is amended to delete 31 26 provisions providing for the reinstatement of previously 31 27 forfeited death benefits if the appropriate payee is located 31 28 after the benefit is restored. 31 29 Code section 97B.52, subsection 7, is amended to permit 31 30 IPERS to pay the share of a death benefit attributable to 31 31 heirs who have not presented claims for benefit to the heirs 31 32 who have presented such claims, if such claims are not 31 33 presented within five years after the date of death. 31 34 Code section 97B.53, subsection 4, concerning refund 31 35 options for members terminating employment, is amended to 32 1 provide that the 30-day period of required severance from 32 2 covered employment begins on the termination date, and not on 32 3 the date the last wages were paid. 32 4 Code section 97B.53B, concerning rollovers of member's 32 5 accounts, is amended to permit nontaxable amounts to be rolled 32 6 over into an eligible retirement plan beginning January 1, 32 7 2002. This provision takes effect upon enactment and is 32 8 retroactively applicable to January 1, 2002. 32 9 Code section 97B.80C, concerning purchases of permissive 32 10 service, is amended to cover all purchases of service credit 32 11 under the system, except for purchases by patient advocates 32 12 under Code section 97B.73B, veteran's credit under Code 32 13 section 97B.80, and direct rollovers and transfers under Code 32 14 section 97B.82. Current Code sections specifically permitting 32 15 purchases of service for members of the general assembly under 32 16 Code section 97B.72, former legislative service under Code 32 17 section 97B.72A, members from other public systems under Code 32 18 section 97B.73, part-time county attorneys under Code section 32 19 97B.73B, a buy-back of refunded service under Code section 32 20 97B.74, prior service before January 1, 1946, under Code 32 21 section 97B.75, public employment service credit under Code 32 22 section 97B.80A, volunteer public service under Code section 32 23 97B.80B, and leaves of absence under Code section 97B.81 are 32 24 repealed by the bill. However, in each case, the bill amends 32 25 Code section 97B.80C to permit purchases of service as 32 26 described in each repealed section to the same extent and in 32 27 essentially the same manner as currently provided. 32 28 Code section 97B.80C is also amended by adding new 32 29 subsections. New subsection 3A provides that no retroactive 32 30 adjustment in benefits will be made for a purchase of service 32 31 credit under this section. New subsection 3B directs IPERS to 32 32 apply a service purchase under this section only to the 32 33 member's original retirement annuity. New subsection 3C 32 34 provides that a member may purchase service covered under 32 35 another public employer's retirement system without obtaining 33 1 a waiver from that system, but not more than 20 such quarters 33 2 may be purchased without the waiver. 33 3 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM 33 4 Code section 411.5 is amended to provide that the amount 33 5 medical providers may charge for providing copies of medical 33 6 records in connection with an application by a member for a 33 7 disability is limited to the cost of producing the records. 33 8 The change also permits the board of trustees to limit the 33 9 cost for copies by rule. 33 10 Code section 411.6, subsection 7, concerning the 33 11 reexamination of disability retirees, is amended. The change 33 12 eliminates current time references regarding the timing and 33 13 frequency of medical examinations of disability retirees under 33 14 age 55 following a disability determination and permits the 33 15 retirement system to require an examination upon its 33 16 determination. This subsection is also amended to provide 33 17 that a beneficiary, in addition to submitting the member's tax 33 18 return each year, shall submit such other documentation to the 33 19 system as the system requests to determine the beneficiary's 33 20 gross wages. 33 21 Code section 411.6, subsection 17, concerning payments to 33 22 incarcerated individuals, is amended to provide that payment 33 23 of a retirement allowance to the individual is suspended while 33 24 the individual is incarcerated, regardless of whether the 33 25 individual has a spouse or children, and, if the individual 33 26 has no spouse or children, no retirement allowance will be 33 27 paid for any month the individual is incarcerated. 33 28 Code section 411.6B, concerning rollovers of members' 33 29 accounts, is amended to allow a rollover of a member's account 33 30 into an annuity contract or other eligible plan, as provided 33 31 by section 403(b) and 457(b) of the Internal Revenue Code, 33 32 respectively. The change also permits nontaxable amounts to 33 33 be rolled over into an eligible retirement plan. 33 34 Code section 411.22, regarding the system's subrogation 33 35 rights, is amended to provide that the interest rate 34 1 assumption adopted by the system, and not the court judgment 34 2 and decree interest rate provided in Code section 535.3, shall 34 3 be used in calculating the system's subrogation amount. 34 4 Code section 411.31, concerning portability of service 34 5 between membership in PORS and the statewide fire and police 34 6 retirement system under Code chapter 411, is amended in the 34 7 same manner as was done in Code section 97A.17 and described 34 8 in the explanation to the change in Code section 97A.17. 34 9 LSB 5332SV 80 34 10 ec/sh/8
Text: SF02077 Text: SF02079 Text: SF02000 - SF02099 Text: SF 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 13 03:30:00 CDT 2004
URL: /DOCS/GA/80GA/Legislation/SF/02000/SF02078/040204.html
jhf