495—12.6(97B) Level payment choice for special service members. A level payment choice is created effective July 1, 2002. IPERS shall implement the level payment choice by preparing factors to convert nonhybrid IPERS Options 1, 2, 3, 4, and 5 to the level payment choice. The new benefit feature applies solely to special service members, and any reference to members in this rule shall only apply to special service members.
	12.6(1) Member’s social security retirement amount. Calculations of a member’s level payment choice shall be based on the member’s social security retirement amount at age 62 as verified by Social Security Administration statements provided by the member. No adjustments shall be made if subsequent social security statements indicate an increase in the age 62 social security retirement amount. Verification of the social security benefits shall not precede the member’s first month of entitlement by more than 12 months.
	12.6(2) Death benefit assumptions. In preparing level payment choice factors, IPERS shall assume:
	a. 	For IPERS Options 1 and 2, death benefits under those options shall not be reduced as a result of a member’s attaining the age of 62 and having the member’s monthly allowance reduced under this rule.
	b. 	For IPERS Options 4 and 5, IPERS shall assume that the contingent annuitant’s or beneficiary’s monthly payments and death benefits, if any, prior to the date the member attains, or would have attained, age 62 shall be based on the amount that was payable to the member for periods before the member attains, or would have attained, age 62. Beginning with the month after the month that the member attains, or would have attained, age 62, a contingent annuitant’s or beneficiary’s monthly payments and death benefits, except death benefits under IPERS Options 1 and 2, shall be based on the reduced amount that would have been payable to the member in the month after the month that the member attained age 62.
	12.6(3) Favorable experience dividends. An eligible member’s or beneficiary’s favorable experience dividend, if any, shall be based on the member’s or beneficiary’s level payment choice monthly amount as of the preceding December 31.
	12.6(4) Prohibitions. The following special service members shall be prohibited from receiving benefits under this rule:
	a. 	Those who retire under Iowa Code section 97B.49D, 97B.50(2), or 97B.50A.
	b. 	Those who retire under Option 6.
	c. 	Those who request a level payment amount that reflects less than a full offset for the social security retirement amount at age 62.
	d. 	Those reemployed in covered employment and subsequently retiring, for the period of reemployment. A member who has elected the level payment choice shall have retirement benefits calculated solely for the period of reemployment, except for vesting credit.
	12.6(5) Limit on reductions.  The level payment choice factors shall not reduce the monthly amount payable to a member at age 62 to less than 50 percent of the monthly amount that would have been payable under IPERS Option 2. Accordingly, payments before age 62 to such members shall be reduced in the same manner, with the corresponding adjustments made to death benefits.
	12.6(6) Commencement of level payment option reduction. The monthly benefit of a member who selects the level payment option shall be reduced beginning with the month after the member reaches age 62.
[ARC 0017C, IAB 2/22/12, effective 3/28/12; ARC 1887C, IAB 2/18/15, effective 3/25/15; ARC 5027C, IAB 4/8/20, effective 5/13/20]