House File 1023 S-5011 Amend House File 1023, as passed by the House, as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 97B.11, subsection 3, paragraph b, 4 subparagraphs (1) and (2), Code 2026, are amended to read as 5 follows: 6 (1) “Applicable employee percentage” means , for the fiscal 7 year beginning July 1, 2011, through the fiscal year beginning 8 July 1, 2025, the percentage rate equal to forty percent 9 of the required contribution rate for members described in 10 section 97B.49B . For the fiscal year beginning July 1, 2026, 11 and for each fiscal year thereafter, “applicable employee 12 percentage” means the percentage rate equal to fifty percent 13 of the required contribution rate for members described in 14 section 97B.49B. For the fiscal year beginning July 1, 2025, 15 and for each fiscal year thereafter, the system shall increase 16 the applicable employee percentage calculated under this 17 subparagraph for that fiscal year by one hundred twenty-five 18 thousandths of one percent. 19 (2) “Applicable employer percentage” means , for the fiscal 20 year beginning July 1, 2011, through the fiscal year beginning 21 July 1, 2025, the percentage rate equal to sixty percent 22 of the required contribution rate for members described in 23 section 97B.49B . For the fiscal year beginning July 1, 2026, 24 and for each fiscal year thereafter, “applicable employer 25 percentage” means the percentage rate equal to fifty percent 26 of the required contribution rate for members described in 27 section 97B.49B. For the fiscal year beginning July 1, 2025, 28 and for each fiscal year thereafter, the system shall decrease 29 the applicable employer percentage calculated under this 30 subparagraph for that fiscal year by one hundred twenty-five 31 thousandths of one percent. 32 Sec. 2. Section 97B.49B, subsection 1, paragraph a, 33 subparagraph (6), Code 2026, is amended to read as follows: 34 (6) For each active or inactive vested member retiring 35 -1- HF 1023.2526 (2) 91 sc/ns 1/ 3 #1.

on or after July 1, 2003, and before July 1, 2026, sixty 1 percent plus, if applicable, an additional three-eighths of 2 one percentage point for each additional calendar quarter of 3 eligible service beyond twenty-two years of service for the 4 member , not to exceed a total of twelve additional percentage 5 points. 6 Sec. 3. Section 97B.49B, subsection 1, paragraph a, Code 7 2026, is amended by adding the following new subparagraph: 8 NEW SUBPARAGRAPH . (7) For each active or inactive vested 9 member retiring on or after July 1, 2026, sixty percent plus, 10 if applicable, an additional five-eighths of one percentage 11 point for each additional calendar quarter of eligible service 12 beyond twenty-two years of service, not to exceed a total of 13 twenty additional percentage points. 14 Sec. 4. Section 97B.49B, Code 2026, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 5. Annual adjustment of allowance. A 17 member who retires from employment in a protection occupation 18 on or after July 1, 2026, and who receives a monthly retirement 19 allowance under this section, shall have the monthly retirement 20 allowance adjusted as follows: 21 a. On each July 1, the monthly retirement allowance 22 authorized in this section and payable to a member retired 23 prior to that date, and to a beneficiary or contingent 24 annuitant entitled to a monthly retirement allowance prior 25 to that date, shall be adjusted by adding to the monthly 26 retirement allowance payable on that date an amount equal to 27 the sum of one and one-half percent of the monthly retirement 28 allowance payable on that date. 29 b. A retired member, beneficiary, or contingent annuitant 30 shall not be eligible for an annual readjustment of allowance 31 provided in this subsection unless the member has twenty-two 32 years of eligible service and attained the age of fifty-five 33 years prior to the member’s termination of employment. 34 c. A retired member, beneficiary, or contingent annuitant 35 -2- HF 1023.2526 (2) 91 sc/ns 2/ 3

that receives an annual adjustment of allowance provided in 1 this subsection shall not be eligible for the retirement 2 dividends under section 97B.49F. > 3 ______________________________ COMMITTEE ON WAYS AND MEANS DAN DAWSON, CHAIRPERSON -3- HF 1023.2526 (2) 91 sc/ns 3/ 3