House Amendment 1098


PAG LIN




     1  1    Amend House File 414 as follows:
     1  2 #1.  Page 29, by inserting before line 35 the
     1  3 following:
     1  4    <Sec.    .  IOWA PUBLIC EMPLOYEES' RETIREMENT
     1  5 SYSTEM == TEMPORARY LAYOFFS == AVERAGE COVERED WAGE
     1  6 RECALCULATION.
     1  7    1.  Notwithstanding any provision of chapter 97B to
     1  8 the contrary, a member of the Iowa public employees'
     1  9 retirement system who has an employer=mandated
     1 10 reduction in hours but remains on the employer's
     1 11 payroll, and who would receive a reduction in the
     1 12 member's three=year average covered wage as a result
     1 13 of the reduction in hours, may have the member's
     1 14 retirement allowance calculated based on the
     1 15 three=year average covered wage the member would have
     1 16 received, based on reasonable assumptions, if the
     1 17 member had not been subject to the employer=mandated
     1 18 reduction in hours, upon payment by the member of the
     1 19 applicable contribution amount.  For purposes of this
     1 20 section, the applicable contribution amount is an
     1 21 amount equal to the employee and employer
     1 22 contributions that would have been paid to the system
     1 23 based on the wages that the member would have received
     1 24 but for the employer=mandated reduction in hours and
     1 25 would have been included in the member's three=year
     1 26 average covered wage.
     1 27    2.  The payment of the applicable contribution
     1 28 amount under this section shall be treated as pick=up
     1 29 contributions in addition to amounts picked up under
     1 30 section 97B.11A.  The member must notify the Iowa
     1 31 public employees' retirement system and the member's
     1 32 employer prior to the member terminating employment
     1 33 covered under the system so that the appropriate
     1 34 calculations can be made and the applicable
     1 35 contribution amount for the member can be deducted
     1 36 from the member's wages.  The Iowa public employees'
     1 37 retirement system shall have no liability for a
     1 38 member's failure to notify the system and the member's
     1 39 employer in time to make such calculations and deduct
     1 40 the applicable contribution amount from the member's
     1 41 remaining wage payments.
     1 42    3.  This section shall apply to employer=mandated
     1 43 reductions in hours during the period of time
     1 44 beginning on or after January 1, 2009, and ending no
     1 45 later than June 30, 2010.  The system is authorized to
     1 46 adopt such rules, including emergency rules, as it
     1 47 deems necessary or prudent to implement this section.>
     1 48 #2.  By renumbering as necessary.
     1 49
     1 50
     2  1                               
     2  2 OLDSON of Polk
     2  3 HF 414.203 83
     2  4 jp/tm/12075

                              -1-