CHAPTER 10
INTEREST ON ACCUMULATED CONTRIBUTIONS
[Prior to 11/24/04, see 581—Ch 21]
495—10.1(97B) Interest on accumulated contributions of active and inactive members. The term “interest” as used in this rule means a per annum interest rate at one percent above the interest rate on one-year certificates of deposit which shall be credited to the member’s contributions and the employer’s contributions to become part of the accumulated contributions. For purposes of this rule, the interest rate on one-year certificates of deposit shall be determined by IPERS based on the average rate for such certificates of deposit as of the first business day of each year as published in a publication, including Internet-based publications, of general acceptance in the business community. The per annum interest rate shall be credited on a quarterly basis by applying one quarter of the annual interest rate to the sum of the accumulated contributions as of the end of the previous calendar quarter. Interest shall be applied through the calendar quarter preceding the quarter in which any distribution is made.
[ARC 2981C, IAB 3/15/17, effective 4/19/17]
495—10.2(97B) Erroneous contributions. Interest shall not be credited to a member’s account if the wages were reported in error.
495—10.3(97B) Interest on undistributed accumulated contributions after member’s death. Interest shall continue to accrue on the undistributed accumulated contributions of a deceased member, based on the member’s vested status at date of death, and the interest crediting method described in rule 10.1(97B). No interest shall be credited to any postretirement death benefit payable with respect to that member’s account under Iowa Code chapter 97B. If IPERS determines that a dispute among alleged heirs exists which delays the payment of death benefits on which interest would be payable, the amount of the death benefits shall be placed in a non-interest-bearing account.
495—10.4(97B) Interest on all undistributed accumulated contributions—effective January 1, 1998. Rescinded ARC 2981C, IAB 3/15/17, effective 4/19/17.
These rules are intended to implement Iowa Code sections 97B.52, 97B.53 and 97B.70.
[Filed 11/5/04, Notice 9/15/04—published 11/24/04, effective 12/29/04]
[Filed 4/7/06, Notice 3/1/06—published 4/26/06, effective 5/31/06]
[Filed ARC 2981C (Notice ARC 2892C, IAB 1/18/17), IAB 3/15/17, effective 4/19/17]