Membership in the retirement system, and all rights to the benefits under the system, will cease upon a member's termination of employment with the employer prior to the member's retirement, other than by death, and upon receipt by the member of the member's accumulated contributions.
1. Upon the termination of employment with the employer prior to retirement other than by death of a member, the accumulated contributions by the member at the date of the termination may be paid to the member upon application, except as provided in subsections 2, 5, and 6.
2. If a vested member's employment is terminated prior to the member's retirement, other than by death, the member may receive a monthly retirement allowance commencing on the first day of the month in which the member attains the age of sixty-five years, if the member is then alive, or, if the member so elects in accordance with section 97B.47, commencing on the first day of the month in which the member attains the age of fifty-five or any month thereafter prior to the date the member attains the age of sixty-five years, and continuing on the first day of each month thereafter during the member's lifetime, provided the member does not receive prior to the date the member's retirement allowance is to commence a refund of accumulated contributions under any of the provisions of this chapter. The amount of each such monthly retirement allowance shall be determined as provided in either section 97B.49 or in section 97B.50, whichever is applicable.
3. The accumulated contributions of a terminated, vested member shall be credited with interest, including interest dividends, in the manner provided in section 97B.70. Interest and interest dividends shall be credited to the accumulated contributions of members who terminate service and subsequently become vested in accordance with section 97B.70. However, the department shall not implement the amendments to this subsection or to subsection 6, unnumbered paragraph 1, or to subsection 7, as enacted in 1994 Iowa Acts, chapter 1183, unless and until the department determines that the most recent annual actuarial valuation of the retirement system indicates that the employer and employee contribution rates in effect under section 97B.11 can absorb the amendments to these provisions of this section and the amendments to section 97B.41, subsection 12, and section 97B.70, by enacting a new subsection 4, contained in 1994 Iowa Acts, chapter 1183, after meeting the other established priorities of the system, as defined in section 97B.41, subsection 12. Until the amendments are implemented, the department shall continue to implement the provisions of section 97B.53, subsections 3 and 7, and section 97B.53, subsection 6, unnumbered paragraph 1, 1993 Code of Iowa.
4. A terminated, vested member has the right, prior to the commencement of the member's retirement allowance, to receive a refund of the member's accumulated contributions, and in the event of the death of the member prior to the commencement of the member's retirement allowance and prior to the receipt of any such refund the benefits of subsection 1 of section 97B.52 shall be paid.
5. A member has not terminated employment if the member accepts other covered employment within thirty days.
5A. Within sixty days after a member has been issued payment for a refund of the member's accumulated contributions, the member may repay the accumulated contributions plus interest that would have accrued, as determined by the department, and receive credit for membership service for the period covered by the refund payment.
5B. A member who does not withdraw the member's accumulated contributions upon termination of employment may at any time request the return of the member's accumulated contributions, but if the member receives a return of contributions the member has waived all claims for any other benefits and membership rights from the fund.
6. A member who terminates employment before the member is vested and who does not claim and receive a refund of the member's accumulated contributions within ten years of the date of termination shall, if the member makes claim for a refund more than ten years after the date of termination, be required to submit proof satisfactory to the department of the member's entitlement to the refund. Interest and interest dividends on the accumulated contributions shall only be credited if provided in accordance with section 97B.70. The department is under no obligation to maintain the accumulated contribution accounts of such former members for more than ten years after their dates of termination.
A person who made contributions to the abolished system, who is entitled to a refund in accordance with the provisions of this chapter, and who has not claimed and received such a refund prior to January 1, 1964, shall, if the person makes a claim for refund after January 1, 1964, be required to submit proof satisfactory to the department of the person's entitlement to the refund. The department is under no obligation to maintain the contribution accounts of such persons after January 1, 1964.
7. Any member whose employment is terminated may elect to leave the member's accumulated contributions in the retirement fund.
8. If an employee hired to fill a permanent position terminates the employee's employment within six months from the date of employment, the employer may file a claim with the department for a refund of the funds contributed to the department by the employer for the employee.
[C46, 50, § 97.6, 97.13, 97.45; C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 97B.53; 82 Acts, ch 1261, § 24]
84 Acts, ch 1285, § 16; 92 Acts, ch 1201, § 56; 94 Acts, ch 1183, § 45--;47, 97
Referred to in § 97B.41, 97B.42, 97B.49, 97B.70
1994 amendments to subsections 3, 6, and 7 effective July 1, 1995; 94 Acts, ch 1183, §97
Iowa General Assembly
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