When used in this chapter:
1. "Abolished system" means the Iowa old-age and survivors' insurance system repealed by sections 97.50 to 97.53.
2. "Accumulated contributions" means the total obtained as of any date, by accumulating each individual contribution by the member with interest plus interest dividends as provided in section 97B.70, for all completed calendar years and for any completed calendar year for which the interest dividend has not been declared and for completed months of partially completed calendar years, compounded as provided in section 97B.70.
3. "Active member" during a calendar year means a member who made contributions to the system at any time during the calendar year and who:
a. Had not received or applied for a refund of the member's accumulated contributions for withdrawal or death, and
b. Had not commenced receiving a retirement allowance.
4. "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such actuarial tables as are adopted by the department.
5. "Beneficiary" means the person or persons who are entitled to receive any benefits payable under this chapter at the death of a member, if the person or persons have been designated on a form provided by the department and filed with the department. If no such designation is in effect at the time of death of the member or if no person so designated is living at that time, then the beneficiary is the estate of the member.
6. "Bona fide retirement" means a retirement by a vested member which meets the requirements of section 97B.52A, subsection 1, and in which the member is eligible to receive benefits under this chapter.
7. "Contributions" means the payments to the fund required herein, by the employer and by the members, to provide the benefits of the system.
8. a. "Employer" means the state of Iowa, the counties, municipalities, agencies, public school districts, all political subdivisions, and all of their departments and instrumentalities, including area agencies on aging, other than those employing persons as specified in paragraph "b", subparagraph (18), and joint planning commissions created under chapter 28E or 28I.
If an interstate agency is established under chapter 28E and similar enabling legislation in an adjoining state, and an employer had made contributions to the system for employees performing functions which are transferred to the interstate agency, the employees of the interstate agency who perform those functions shall be considered to be employees of the employer for the sole purpose of membership in the system, although the employer contributions for those employees are made by the interstate agency.
b. "Employee" means an individual who is employed as defined in this chapter, except:
(1) Elective officials in positions for which the compensation is on a fee basis, elective officials of school districts, elective officials of townships, and elective officials of other political subdivisions who are in part-time positions, unless the elective official makes an application to the department to be covered under this chapter. An elective official who made an application to the department to be covered under this chapter may terminate membership under this chapter by informing the department in writing of the expiration of the member's term of office. A county attorney is an employee for purposes of this chapter whether that county attorney is employed on a full-time or part-time basis.
(2) Individuals who are enrolled as students and whose primary occupations are as students who are incidentally employed by employers.
(3) Graduate medical students while serving as interns or resident doctors in training at any hospital, or county medical examiners and deputy county medical examiners under chapter 331, division V, part 8.
(4) Members of the general assembly of Iowa and temporary employees of the general assembly of Iowa, unless such members or employees make an application to the department to be covered under this chapter. A member of the general assembly who made an application to the department to be covered under this chapter may terminate membership under this chapter by informing the department in writing of the member's intent to terminate membership.
Temporary employees of the general assembly who have elected coverage under this chapter may terminate membership by sending written notification to the department of their separation from service.
(5) Nonvested employees of drainage and levee districts, unless those employees make an application to the department to be covered under this chapter.
(6) Employees hired for temporary employment of less than six months or one thousand forty hours in a calendar year. An employee who works for an employer for six or more months in a calendar year or who works for an employer for more than one thousand forty hours in a calendar year is not a temporary employee under this subparagraph. Adjunct instructors are temporary employees for the purposes of this chapter. As used in this section, unless the context otherwise requires, "adjunct instructors" means instructors employed by a community college or a university governed by the state board of regents without a continuing contract, whose teaching load does not exceed one-half time for two full semesters or three full quarters per calendar year.
(7) Employees of a community action program, determined to be an instrumentality of the state or a political subdivision, unless the employees elect by filing an application with the department to be covered under this chapter and the department has approved the election. Coverage will begin when the election has been approved by the department.
(8) Magistrates other than those who elect by filing an application with the department to be covered under this chapter.
(9) Persons employed under the federal Job Training Partnership Act of 1982, Pub. L. No. 97-300, unless these employees make an application to the department to be covered under this chapter and the department has approved the election. Coverage will begin when the election has been approved by the department.
(10) Foreign exchange teachers and visitors including alien scholars, trainees, professors, teachers, research assistants, and specialists in their field of specialized knowledge or skill.
(11) Members of the ministry, rabbinate, or other religious order who have taken the vow of poverty unless, within one year of commencing employment or no later than July 1, 1985, for individuals who are members of the system on July 1, 1984, a member makes an application to the department to be covered under this chapter.
(12) Persons employed as city managers, or as city administrators performing the duties of city managers, under a form of city government listed in chapter 372 or chapter 420 unless such employees shall make an application to the department to be covered under the provisions of this chapter.
(13) Members of the state transportation commission, the board of parole, and the state health facilities council unless a member elects by filing an application with the department to be covered under this chapter.
(14) Employees of the Iowa dairy industry commission established under chapter 179, the Iowa beef cattle producers association established under chapter 181, the Iowa pork producers council established under chapter 183A, the Iowa turkey marketing council established under chapter 184A, the Iowa soybean promotion board established under chapter 185, the Iowa corn promotion board established under chapter 185C, and the Iowa egg council established under chapter 196A.
(15) Judicial hospitalization referees appointed under section 229.21.
(16) Employees appointed by the state board of regents who, at the discretion of the state board of regents, elect coverage in a retirement system qualified by the state board of regents that meets the criteria of section 97B.2.
(17) Persons employed by the board of trustees for the statewide fire and police retirement system established in section 411.36, unless these employees make an application to the department to be covered under this chapter and the department has approved the election. Coverage will begin when the election has been approved by the department.
(18) Employees of an area agency on aging, if as of July 1, 1994, the agency provides for parti- cipation by all of its employees in an alternative qualified plan pursuant to the requirements of the federal Internal Revenue Code.
(19) Persons employed through any program described in section 84A.7 and provided by the Iowa conservation corps.
9. "Employment for any calendar quarter" means any service performed under an employer-employee relationship under this chapter for which wages are reported in the calendar quarter. For the purposes of this chapter, elected officials are deemed to be in employment for all quarters of the elected officials' respective terms of office, even if the elected officials have selected a method of payment of wages which results in the elected officials not being credited with wages every quarter of a year.
10. "First month of entitlement" means the first month for which a member is qualified to receive retirement benefits under this chapter. Effective January 1, 1995, a member who meets all of the following requirements is qualified to receive retirement benefits under this chapter:
a. Has attained the minimum age for retirement.
b. If the member has not attained seventy years of age, has terminated all employment covered under the chapter or formerly covered under the chapter pursuant to section 97B.42.
c. Has filed a completed application for benefits.
d. Has survived into the month for which the member's first retirement allowance is payable by the system.
11. "Inactive member" with respect to future service means a member who at the end of a year had not made any contributions during the current year and who has not received a refund of the member's accumulated contributions.
12. "Internal Revenue Code" means the Internal Revenue Code as defined in section 422.3.
13. "Member" means an employee or a former employee who maintains the employee's or former employee's accumulated contributions in the system. The former employee is not a member if the former employee has received a refund of the former employee's accumulated contributions.
14. "Membership service" means service rendered by a member after July 4, 1953. Years of membership service shall be counted to the complete quarter calendar year. However, membership service for a calendar year shall not include more than four quarters. In determining a member's period of membership service, the department shall combine all periods of service for which the member has made contributions. If the department has not maintained the accumulated contribution account of the member for a period of service, as provided pursuant to section 97B.53, subsection 6, the department shall credit the member for the service if the member submits satisfactory proof to the department that the member did make the contributions for the period of service and did not take a refund for the period of service.
15. "Prior service" means any service by an employee rendered at any time prior to July 4, 1953.
16. "Regular service" means service for an employer other than special service.
17. "Retired member" means a member who has applied for the member's retirement allowance and has survived into at least the first day of the member's first month of entitlement.
18. "Retirement" means that period of time beginning when a member who has filed an approved application for a retirement allowance has survived into at least the first day of the member's first month of entitlement and ending when the member dies.
19. "Service" means uninterrupted service under this chapter by an employee, except an elected official, from the date the employee last entered employment of the employer until the date the employee's employment shall be terminated by death, retirement, resignation or discharge; provided, however, the service of any employee shall not be deemed to be interrupted by:
a. Service in the armed forces of the United States, if the employee was employed by the employer immediately prior to entry into the armed forces, and if the employee was released from service and returns to covered employment with the employer within twelve months of the date on which the employee has the right of release from service or within a longer period as required by the applicable laws of the United States.
b. Leave of absence or vacation authorized by the employer for a period not exceeding twelve months. A leave of absence authorized pursuant to the requirements of the federal Family and Medical Leave Act of 1993 is considered a leave of absence authorized by the employer.
c. The termination at the end of the school year of the contract of employment of an employee in the public schools of the state of Iowa, provided the employee enters into a further contract of employment in the public schools of the state of Iowa for the next succeeding school year.
d. Temporary or seasonal interruptions in service such as service of school bus drivers, schoolteachers under regular contract, interim teachers or substitute teachers, instructors at Iowa state university of science and technology, the state university of Iowa, or university of northern Iowa, employees in state schools or hospital dormitories, other positions when the temporary suspension of service does not terminate the period of employment of the employee, or temporary employees of the general assembly.
20. "Service" for an elected official means the period of membership service for which contributions are made beginning on the date an elected official assumes office and ending on the expiration date of the last term the elected official serves, excluding all the intervening periods during which the elected official is not an elected official.
21. "Special service" means service for an employer while employed in a protection occupation as provided in section 97B.49, subsection 16, paragraph "a", and as a county sheriff, deputy sheriff, or airport fire fighter as provided in section 97B.49, subsection 16, paragraph "b".
22. "System" means the retirement plan as contained herein or as duly amended.
23. a. "Three-year average covered wage" means a member's covered wages averaged for the highest three years of the member's service, except as otherwise provided in this subsection. The highest three years of a member's covered wages shall be determined using calendar years. However, if a member's final quarter of a year of employment does not occur at the end of a calendar year, the department may determine the wages for the third year by computing the average quarter of all quarters from the member's highest calendar year of covered wages not being used in the selection of the two highest years and using the computed average quarter for each quarter in the third year in which no wages have been reported in combination with the final quarter or quarters of the member's service to create a full year. However, the department shall not use the member's final quarter of wages if using that quarter would reduce the member's three-year average covered wage. If the three-year average covered wage of a member exceeds the highest maximum covered wages in effect for a calendar year during the member's period of service, the three-year average covered wage of the member shall be reduced to the highest maximum covered wages in effect during the member's period of service.
b. Notwithstanding any other provisions of this subsection to the contrary, the three-year average covered wage shall be computed as follows for the following members:
(1) For a member who retires during the calendar year beginning January 1, 1997, and whose three-year average covered wage at the time of retirement exceeds forty-eight thousand dollars, the member's covered wages averaged for the highest four years of the member's service or forty-eight thousand dollars, whichever is greater.
(2) For a member who retires during the calendar year beginning January 1, 1998, and whose three-year average covered wage at the time of retirement exceeds fifty-two thousand dollars, the member's covered wages averaged for the highest five years of the member's service or fifty-two thousand dollars, whichever is greater.
(3) For a member who retires during the calendar year beginning January 1, 1999, and whose three-year average covered wage at the time of retirement exceeds fifty-five thousand dollars, the member's covered wages averaged for the highest six years of the member's service or fifty-five thousand dollars, whichever is greater.
(4) For a member who retires on or after January 1, 2000, but before January 1, 2003, and whose three-year average covered wage at the time of retirement exceeds fifty-five thousand dollars, the member's covered wages averaged for the highest seven years of the member's service or fifty-five thousand dollars, whichever is greater.
For purposes of this paragraph, the highest years of the member's service shall be determined using calendar years and may be determined using one computed year calculated in the manner and subject to the restrictions provided in paragraph "a".
24. a. "Vested member" means a member who has attained through age or sufficient years of service eligibility to receive monthly retirement benefits upon the member's retirement. A vested member must meet one of the following requirements:
(1) Prior to July 1, 1965, had attained the age of forty-eight and completed at least eight years of service.
(2) Between July 1, 1965, and June 30, 1973, had completed at least eight years of service.
(3) On or after July 1, 1973, has completed at least four years of service.
(4) Has attained the age of fifty-five.
(5) On or after July 1, 1988, an inactive member who had accumulated, as of the date of the member's last termination of employment, years of membership service equal to or exceeding the years of membership service specified in this subsection for qualifying as a vested member on that date of termination.
b. "Active vested member" means an active member who has attained sufficient membership service to achieve vested status.
c. "Inactive vested member" means an inactive member who was a vested member at the time of termination of employment.
25. a. "Wages" means all remuneration for employment, including the cash value of remuneration paid in a medium other than cash, but not including the cash value of remuneration paid in a medium other than cash as necessitated by the convenience of the employer. The amount agreed upon by the employer and employee for remuneration paid in a medium other than cash shall be reported to the department by the employer and is conclusive of the value of the remuneration. "Wages" does not include special lump sum payments made as payment for accrued sick leave or accrued vacation or payments made as an incentive for early retirement or as payments made upon dismissal, severance, or a special bonus payment. Wages for an elected official means the salary received by an elected official, exclusive of expense and travel allowances.
Wages for a member of the general assembly means the total compensation received by a member of the general assembly, whether paid in the form of per diem or annual salary, exclusive of expense and travel allowances paid to a member of the general assembly except as otherwise provided in this paragraph. Wages includes per diem payments paid to members of the general assembly during interim periods between sessions of the general assembly. Wages also includes daily allowances to members of the general assembly for nontravel expenses of office during a session of the general assembly, but does not include the portion of the daily allowance which exceeds the maximum established by law for members from Polk county.
b. "Covered wages" means wages of a member during the periods of membership service as follows:
(1) For the period from July 4, 1953, through December 31, 1953, and each calendar year from January 1, 1954, through December 31, 1963, wages not in excess of four thousand dollars.
(2) For each calendar year from January 1, 1964, through December 31, 1967, wages not in excess of four thousand eight hundred dollars.
(3) For each calendar year from January 1, 1968, through December 31, 1970, wages not in excess of seven thousand dollars, for each calendar year from January 1, 1971, through December 31, 1972, wages not in excess of seven thousand eight hundred dollars, and for each calendar year from January 1, 1973, through December 31, 1975, wages not in excess of ten thousand eight hundred dollars.
(4) For each calendar year from January 1, 1976, through December 31, 1983, wages not in excess of twenty thousand dollars.
(5) For each calendar year from January 1, 1984, through December 31, 1985, wages not in excess of twenty-one thousand dollars per year.
(6) For the calendar year from January 1, 1986, through December 31, 1986, wages not in excess of twenty-two thousand dollars.
(7) For the calendar year from January 1, 1987, through December 31, 1987, wages not in excess of twenty-three thousand dollars.
(8) For the calendar year beginning January 1, 1988, and ending December 31, 1988, wages not in excess of twenty- four thousand dollars.
(9) For the calendar year beginning January 1, 1989, and ending December 31, 1989, wages not in excess of twenty-six thousand dollars.
(10) For the calendar year beginning January 1, 1990, and ending December 31, 1990, wages not in excess of twenty-eight thousand dollars.
(11) For the calendar year beginning January 1, 1991, wages not in excess of thirty-one thousand dollars.
(12) For the calendar year beginning January 1, 1992, wages not in excess of thirty-four thousand dollars.
(13) For the calendar year beginning January 1, 1993, wages not in excess of thirty-five thousand dollars.
(14) For the calendar year beginning January 1, 1994, wages not in excess of thirty-eight thousand dollars.
(15) For the calendar year beginning January 1, 1995, wages not in excess of forty-one thousand dollars.
(16) For the calendar year beginning January 1, 1996, wages not in excess of forty-four thousand dollars.
(17) Commencing with the calendar year beginning January 1, 1997, and for each subsequent calendar year, wages not in excess of the amount permitted for that year under section 401(a)(17) of the Internal Revenue Code.
Notwithstanding any other provision of this chapter providing for the payment of the benefits provided in section 97B.49, subsection 16 or 17, the department shall establish the covered wages limitation which applies to members covered under section 97B.49, subsection 16 or 17, at the same level as is established under this subparagraph for other members of the system.
Effective July 1, 1992, "covered wages" does not include wages to a member on or after the effective date of the member's retirement unless the member is reemployed, as provided under section 97B.48A.
If a member is employed by more than one employer during a calendar year, the total amount of wages paid to the member by the several employers shall be included in determining the limitation on covered wages as provided in this lettered paragraph. If the amount of wages paid to a member by the member's several employers during a calendar year exceeds the covered wage limit, the amount of such excess shall not be subject to the contributions required by section 97B.11.
26. "Years of prior service" means the total of all periods of prior service of a member. In computing credit for prior service, service of less than a full quarter shall be rounded up to a full quarter. Where a member had prior service as a teacher, a full year of service shall be granted that member if the member had three quarters of service and a contract for employment for the following school year.
[C46, 50, § 97.1--;97.5, 97.7--;97.9, 97.12, 97.14, 97.18, 97.23, 97.45, 97.48; C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 97B.41; 82 Acts, ch 1261, § 13--;17]
83 Acts, ch 101, § 10; 83 Acts, ch 186, § 10042, 10201; 84 Acts, ch 1285, § 4--;8; 86 Acts, ch 1243, § 4--;8; 87 Acts, ch 115, § 13; 87 Acts, ch 227, § 18; 88 Acts, ch 1242, § 21--;30; 90 Acts, ch 1240, § 16--;23; 92 Acts, ch 1201, § 24--;35; 93 Acts, ch 44, § 4; 94 Acts, ch 1183, §16--;22, 97; 95 Acts, ch 102, § 1--;4; 96 Acts, ch 1034, § 3; 96 Acts, ch 1187, § 11--;22
Referred to in § 97A.3, 97B.42A, 97B.42B, 97B.43, 97B.66, 97B.68, 97B.72, 97B.72A, 97B.73A, 97B.74, 411.3, 411.30, 602.1611, 602.11115
For additional definitions, see § 97B.1
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