Senate File 366 H-1180 Amend Senate File 366, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < Section 1. Section 97A.6, subsection 7, paragraph 5 a, subparagraph (1), Code 2015, is amended to read as 6 follows: 7 (1) Should any beneficiary for either ordinary 8 or accidental disability, except a beneficiary 9 who is fifty-five years of age or over and would 10 have completed twenty-two years of service if the 11 beneficiary had remained in active service, be 12 engaged in a gainful occupation paying more than 13 the difference between the member’s net retirement 14 allowance and one and one-half times the current 15 earnable compensation of an active member at the same 16 position on the salary scale within the member’s rank 17 as the member held at retirement, then the amount of 18 the retirement allowance shall be reduced , subject to 19 the requirements of this subparagraph, to an amount 20 such that the member’s net retirement allowance plus 21 the amount earned by the member shall equal one and 22 one-half times the amount of the current earnable 23 compensation of an active member at the same position 24 on the salary scale within the member’s rank as 25 the member held at retirement. Should the member’s 26 earning capacity be later changed, the amount of the 27 retirement allowance may be further modified, subject 28 to the requirements of this subparagraph, provided 29 that the new retirement allowance shall not exceed the 30 amount of the retirement allowance originally granted 31 adjusted by annual readjustments of pensions pursuant 32 to subsection 14 of this section nor an amount which 33 would cause the member’s net retirement allowance, 34 when added to the amount earned by the beneficiary, to 35 equal one and one-half times the amount of the current 36 earnable compensation of an active member at the same 37 position on the salary scale within the member’s rank 38 as the member held at retirement. However, a member’s 39 retirement allowance payable in a calendar year shall 40 not be reduced pursuant to this subparagraph to an 41 amount that is less than half of the member’s ordinary 42 disability or accidental disability retirement benefit 43 allowance calculated without regard to this paragraph 44 “a” , and otherwise payable to the member in a calendar 45 year. A beneficiary restored to active service at 46 a salary less than the average final compensation 47 upon the basis of which the member was retired at age 48 fifty-five or greater, shall not again become a member 49 of the retirement system and shall have the member’s 50 -1- SF366.1244 (4) 86 ec/sc 1/ 2 #1.

retirement allowance suspended while in active service. 1 If the rank or position held by the retired member is 2 subsequently abolished, adjustments to the allowable 3 limit on the amount of income which can be earned in 4 a gainful occupation shall be computed in the same 5 manner as provided in subsection 14 , paragraph “c” , 6 of this section for readjustment of pensions when a 7 rank or position has been abolished. If the salary 8 scale associated with a member’s rank at retirement is 9 changed after the member retires, earnable compensation 10 for purposes of this section shall be based upon the 11 salary an active member currently would receive at 12 the same rank and with seniority equal to that of the 13 retired member at the time of retirement. For purposes 14 of this paragraph, “net retirement allowance” means 15 the amount determined by subtracting the amount paid 16 during the previous calendar year by the beneficiary 17 for health insurance or similar health care coverage 18 for the beneficiary and the beneficiary’s dependents 19 from the amount of the member’s retirement allowance 20 paid for that year pursuant to this chapter . The 21 beneficiary shall submit sufficient documentation 22 to the board of trustees to permit the system to 23 determine the member’s net retirement allowance for the 24 applicable year. > 25 2. Title page, line 1, by striking < reexamination, 26 recalculation, and offset > and inserting < reexamination 27 and recalculation > 28 3. By renumbering as necessary. 29 ______________________________ COMMITTEE ON STATE GOVERNMENT VANDER LINDEN of Mahaska, Chairperson -2- SF366.1244 (4) 86 ec/sc 2/ 2 #2. #3.