House File 2262

PAG LIN

  1  1                                            HOUSE FILE 2262
  1  2
  1  3                             AN ACT
  1  4 RELATING TO PUBLIC RETIREMENT SYSTEMS AND OTHER EMPLOYEE
  1  5    BENEFIT RELATED MATTERS, INCLUDING THE PUBLIC SAFETY PEACE
  1  6    OFFICERS' RETIREMENT, ACCIDENT, AND DISABILITY SYSTEM, THE
  1  7    IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM, THE STATEWIDE FIRE
  1  8    AND POLICE RETIREMENT SYSTEM, AND THE JUDICIAL RETIREMENT
  1  9    SYSTEM, AND PROVIDING EFFECTIVE AND RETROACTIVE APPLICABILITY
  1 10    DATES.
  1 11
  1 12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 13
  1 14                           DIVISION I
  1 15     PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
  1 16                        DISABILITY SYSTEM
  1 17    Section 1.  Section 97A.17, subsection 1, Code 2003, is
  1 18 amended by adding the following new paragraph:
  1 19    NEW PARAGRAPH.  e.  "Refund liability" means the amount the
  1 20 member may elect to withdraw from the former system under
  1 21 section 411.23.
  1 22    Sec. 2.  Section 97A.17, subsection 2, Code 2003, is
  1 23 amended to read as follows:
  1 24    2.  Commencing July 1, 1996, a vested member of an eligible
  1 25 retirement system who terminates employment covered by one
  1 26 eligible retirement system and, within one year, commences
  1 27 employment covered by the other eligible retirement system may
  1 28 elect to transfer the greater of the average accrued benefit
  1 29 or the refund liability earned from the former system to the
  1 30 current system.  The member shall file an application with the
  1 31 current system for transfer of the greater of the average
  1 32 accrued benefit or the refund liability within ninety days of
  1 33 the commencement of employment with the current system.
  1 34    Sec. 3.  Section 97A.17, subsection 4, Code 2003, is
  1 35 amended to read as follows:
  2  1    4.  Upon receipt of an application for transfer of the
  2  2 average accrued benefit as provided in this section, the
  2  3 current system shall calculate the average accrued benefit and
  2  4 the refund liability and the former system shall transfer to
  2  5 the current system assets in an amount equal to the greater of
  2  6 the average accrued benefit or the refund liability.  Once the
  2  7 transfer of the average accrued benefit is completed, the
  2  8 member's service under the former system shall be treated as
  2  9 membership service under the current system for purposes of
  2 10 this chapter and chapter 411.
  2 11                           DIVISION II
  2 12        IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
  2 13    Sec. 4.  Section 97B.1A, subsection 11, paragraphs a, b,
  2 14 and c, Code Supplement 2003, are amended to read as follows:
  2 15    a.  Has attained the minimum age for receipt of a
  2 16 retirement allowance under this chapter.
  2 17    b.  If the member has not attained seventy years of age,
  2 18 has terminated all employment covered under the chapter or
  2 19 formerly covered under the chapter pursuant to section 97B.42
  2 20 in the month prior to the member's first month of entitlement.
  2 21    c.  Has filed a completed application for benefits with the
  2 22 system setting forth the member's intended first month of
  2 23 entitlement.
  2 24    Sec. 5.  Section 97B.1A, subsection 20, Code Supplement
  2 25 2003, is amended by adding the following new paragraph:
  2 26    NEW PARAGRAPH.  e.  Employment with an employer prior to
  2 27 January 1, 1946, if the member is not receiving a retirement
  2 28 allowance based upon that employment.
  2 29    Sec. 6.  Section 97B.1A, subsection 20, Code Supplement
  2 30 2003, is amended by adding the following new unnumbered
  2 31 paragraph after paragraph d:
  2 32    NEW UNNUMBERED PARAGRAPH.  However, effective July 1, 2004,
  2 33 "service" does not mean service for which an employee receives
  2 34 remuneration from an employer for temporary employment during
  2 35 any quarter in which the employee is on an otherwise unpaid
  3  1 leave of absence that is not authorized under the federal
  3  2 Family and Medical Leave Act of 1993 or other similar leave.
  3  3 Remuneration paid by the employer for the temporary employment
  3  4 shall not be treated by the system as covered wages.
  3  5    Sec. 7.  Section 97B.1A, subsection 22, Code Supplement
  3  6 2003, is amended to read as follows:
  3  7    22.  "Special service" means service for an employer while
  3  8 employed in a protection occupation as provided in section
  3  9 97B.49B, and as a county sheriff, or deputy sheriff, or
  3 10 airport fire fighter as provided in section 97B.49C.
  3 11    Sec. 8.  Section 97B.1A, subsection 24, paragraphs a and c,
  3 12 Code Supplement 2003, are amended to read as follows:
  3 13    a.  "Three=year average covered wage" means, for a member
  3 14 who retires prior to July 1, 2005 2008, a member's covered
  3 15 wages averaged for the highest three years of the member's
  3 16 service, except as otherwise provided in this subsection.  The
  3 17 highest three years of a member's covered wages shall be
  3 18 determined using calendar years.  However, if a member's final
  3 19 quarter of a year of employment does not occur at the end of a
  3 20 calendar year, the system may determine the wages for the
  3 21 third year by computing the average quarter of all quarters
  3 22 from the member's highest calendar year of covered wages not
  3 23 being used in the selection of the two highest years and using
  3 24 the computed average quarter for each quarter in the third
  3 25 year in which no wages have been reported in combination with
  3 26 the final quarter or quarters of the member's service to
  3 27 create a full year.  However, the system shall not use the
  3 28 member's final quarter of wages if using that quarter would
  3 29 reduce the member's three=year average covered wage.  If the
  3 30 three=year average covered wage of a member exceeds the
  3 31 highest maximum covered wages in effect for a calendar year
  3 32 during the member's period of service, the three=year average
  3 33 covered wage of the member shall be reduced to the highest
  3 34 maximum covered wages in effect during the member's period of
  3 35 service.  Notwithstanding any other provision of this
  4  1 paragraph to the contrary, a member's wages for the third year
  4  2 as computed by this paragraph shall not exceed, by more than
  4  3 three percent, the member's highest actual calendar year of
  4  4 covered wages for a member whose first month of entitlement is
  4  5 January 1999 or later.
  4  6    c.  "Three=year average covered wage" means, for a member
  4  7 who retires on or after July 1, 2005 2008, the greater of the
  4  8 member's covered wages averaged for a member's highest twelve
  4  9 consecutive quarters of service or the member's covered wages
  4 10 averaged for a member's highest three calendar years of
  4 11 service.  The system shall adopt rules to implement this
  4 12 paragraph in accordance with the requirements of this chapter
  4 13 and the federal Internal Revenue Code.
  4 14    Sec. 9.  Section 97B.1A, subsection 25, paragraph a,
  4 15 subparagraph (4), Code Supplement 2003, is amended to read as
  4 16 follows:
  4 17    (4)  Has attained the age of fifty=five.  However, an
  4 18 inactive member who has not attained sufficient years of
  4 19 service eligibility to become vested and who has not attained
  4 20 the age of fifty=five as of July 1, 2005, shall not become
  4 21 vested upon the attainment of the age of fifty=five while an
  4 22 inactive member.
  4 23    Sec. 10.  Section 97B.1A, subsection 26, paragraph a,
  4 24 subparagraph (2), subparagraph subdivision (j), Code
  4 25 Supplement 2003, is amended to read as follows:
  4 26    (j)  Payments of damages, attorney fees, interest, and
  4 27 penalties made to satisfy a grievance, or wage claim, or
  4 28 employment dispute.
  4 29    Sec. 11.  Section 97B.1A, subsection 26, paragraph a,
  4 30 subparagraph (2), subparagraph subdivision (n), Code
  4 31 Supplement 2003, is amended by striking the subparagraph
  4 32 subdivision.
  4 33    Sec. 12.  Section 97B.1A, subsection 26, paragraph b,
  4 34 unnumbered paragraph 3, Code Supplement 2003, is amended to
  4 35 read as follows:
  5  1    Effective July 1, 1992, "covered wages" does not include
  5  2 wages to a member on or after the effective date of the
  5  3 member's retirement, except as otherwise permitted by the
  5  4 system's administrative rules, unless the member is
  5  5 reemployed, as provided under section 97B.48A.
  5  6    Sec. 13.  NEW SECTION.  97B.9A  COLLECTIONS == WAIVER.
  5  7    Notwithstanding any provision of this chapter to the
  5  8 contrary, the system may, in its sole discretion, waive the
  5  9 collection of benefits overpayments, contribution
  5 10 underpayments, or any other debts owed the system, that occur
  5 11 more than three years prior to the date of discovery of the
  5 12 overpayment, underpayment, or debt by the system, for cases in
  5 13 which there is no evidence of fraud or other misconduct on the
  5 14 part of the affected employer or the affected member or
  5 15 beneficiary in providing or failing to provide information
  5 16 necessary to the proper determination of a debt owed the
  5 17 system, calculation of contributions and payments, or
  5 18 calculation of benefits under this chapter.
  5 19    Sec. 14.  Section 97B.14A, Code Supplement 2003, is amended
  5 20 to read as follows:
  5 21    97B.14A  WAGE REPORTING.
  5 22    1.  For purposes of this section, unless the context
  5 23 otherwise requires:
  5 24    a.  "Change in the schedule of wage payments" means the
  5 25 formal or informal deferral of wages earned in one calendar
  5 26 year to a later calendar year or the acceleration of the wages
  5 27 payable under a contract of employment to the prior calendar
  5 28 year by changing the period over which the contractual
  5 29 compensation is paid, by shortening the period of employment
  5 30 over which contract wages are to be paid, or similar
  5 31 arrangements altering the timing of wage payments.
  5 32    b.  "Distortion of the normal wage progression pattern"
  5 33 means an increase of ten percent or more between the covered
  5 34 wages reported for any two consecutive years.
  5 35    2.  An employer shall report wages of employees covered by
  6  1 this chapter to the system in a manner and form as prescribed
  6  2 by the system.  If the wages reported by an employer appear to
  6  3 be a distortion of the normal wage progression pattern for an
  6  4 employee, the system may request that the employer provide
  6  5 documentation indicating that the wages were not misreported
  6  6 for the purposes of causing an increase in the retirement
  6  7 allowance or other payments authorized to be made by this
  6  8 chapter explaining the reason for the distortion.  If the
  6  9 system determines that the wages of an employee were
  6 10 misreported, the employer shall prepare and file wage
  6 11 adjustments allocating the wages to the proper wage reporting
  6 12 period.  If the distortion of the normal wage progression
  6 13 pattern results from covering compensation that is excluded
  6 14 from the definition of covered wages, or from a change in the
  6 15 schedule of wage payments for an individual, the system shall
  6 16 remove wages that should not be covered from its records, and
  6 17 shall, in cases involving increases caused by a change in the
  6 18 schedule of wage payments, reallocate covered wages to the
  6 19 calendar quarters in which the covered wages would have been
  6 20 reported but for the change in the schedule of wage payments.
  6 21    Sec. 15.  Section 97B.17, subsection 1, Code Supplement
  6 22 2003, is amended to read as follows:
  6 23    1.  The system shall establish and maintain records of each
  6 24 member, including but not limited to the amount of wages of
  6 25 each member, the contribution contributions made on behalf of
  6 26 each member with interest, and interest dividends credited,
  6 27 beneficiary designations, and applications for benefits of any
  6 28 type.  The records may be maintained in paper, magnetic, or
  6 29 electronic form, including optical disk storage, as set forth
  6 30 in chapter 554D.  The system may accept, but shall not
  6 31 require, electronic records and electronic signatures to the
  6 32 extent permitted under chapter 554D.  These records are the
  6 33 basis for the compilation of the retirement benefits provided
  6 34 under this chapter.
  6 35    Sec. 16.  Section 97B.38, Code Supplement 2003, is amended
  7  1 to read as follows:
  7  2    97B.38  FEES FOR SERVICES.
  7  3    The system may, by rule, prescribe the maximum reasonable
  7  4 fees which may be charged for services performed in connection
  7  5 with any claim before the system under this chapter, and any
  7  6 agreement in violation of such rules shall be void production
  7  7 costs, including staff time and materials, associated with
  7  8 performing its duties under this chapter for active, inactive,
  7  9 and retired members, beneficiaries, and the general public,
  7 10 where such production costs are more than de minimis, as
  7 11 determined by the system.  Any person who shall, with intent
  7 12 to defraud, in any manner willfully and knowingly deceive,
  7 13 mislead, or threaten any claimant or prospective claimant or
  7 14 beneficiary under this chapter by word, circular, letter or
  7 15 advertisement, or who shall knowingly charge or collect
  7 16 directly or indirectly any fee in excess of the maximum fee,
  7 17 or make any agreement directly or indirectly to charge or
  7 18 collect any fee in excess of the maximum fee, prescribed by
  7 19 the system, shall be deemed guilty of a fraudulent practice.
  7 20    Sec. 17.  Section 97B.40, Code Supplement 2003, is amended
  7 21 by adding the following new subsection:
  7 22    NEW SUBSECTION.  1A.  If the system determines that a
  7 23 person may have engaged in a fraudulent practice as described
  7 24 under this section, the system may, in addition to any
  7 25 statutory or equitable remedies provided by law, refer the
  7 26 matter to the auditor of state and to the appropriate law
  7 27 enforcement authorities for possible investigation and
  7 28 prosecution.
  7 29    Sec. 18.  Section 97B.42, unnumbered paragraph 8, Code
  7 30 Supplement 2003, is amended by striking the unnumbered
  7 31 paragraph and inserting in lieu thereof the following:
  7 32    Except as otherwise provided in this section, an employer
  7 33 shall not sponsor and a member shall not participate in
  7 34 another retirement system in this state supported in whole or
  7 35 in part by public contributions or payments where such
  8  1 retirement system is in lieu of the retirement system
  8  2 established by this chapter.  However, in addition to the
  8  3 retirement system established by this chapter, an employer may
  8  4 sponsor and a member may participate in a supplemental defined
  8  5 contribution plan qualified under Internal Revenue Code
  8  6 section 401(a), a tax=deferred annuity qualified under
  8  7 Internal Revenue Code section 403(b), or an eligible deferred
  8  8 compensation plan qualified under Internal Revenue Code
  8  9 section 457, regardless of whether contributions to such
  8 10 supplemental plans are characterized as employer contributions
  8 11 or employee contributions, and subject to the applicable
  8 12 limits set forth in the Internal Revenue Code for such plans.
  8 13 A defined benefit plan that supplements the retirement system
  8 14 established by this chapter shall not be offered by public
  8 15 employers covered under this chapter.
  8 16    Sec. 19.  Section 97B.42A, subsection 4, Code Supplement
  8 17 2003, is amended to read as follows:
  8 18    4.  A person who becomes a member of the retirement system
  8 19 pursuant to subsection 3, or who is a member of the retirement
  8 20 system, and who has one or more years of covered wages, may
  8 21 purchase credit, pursuant to section 97B.73, Code 2003, for
  8 22 one or more quarters of service prior to January 1, 1999, in
  8 23 which the person was employed in a position as described in
  8 24 section 97B.1A, subsection 8, paragraph "a", but was not a
  8 25 member of the retirement system.
  8 26    Sec. 20.  Section 97B.42A, subsection 5, unnumbered
  8 27 paragraph 2, Code Supplement 2003, is amended to read as
  8 28 follows:
  8 29    A person who becomes a member of the Iowa public employees'
  8 30 retirement system pursuant to this subsection, and who has one
  8 31 or more years of covered wages, may purchase credit, pursuant
  8 32 to section 97B.73, Code 2003, for one or more quarters of
  8 33 service prior to August 1, 2000, in which the person was
  8 34 employed in a position as described by section 97B.1A,
  8 35 subsection 8, paragraph "a", subparagraph (11), but was not a
  9  1 member of the retirement system.
  9  2    Sec. 21.  Section 97B.43, unnumbered paragraph 3, Code
  9  3 Supplement 2003, is amended to read as follows:
  9  4    Each individual who on or after July 1, 1978, was an
  9  5 active, vested, or retired member and who (1) made application
  9  6 for and received a refund of contributions made under the
  9  7 abolished system or (2) has on deposit with the retirement
  9  8 fund contributions made under the abolished system shall be
  9  9 entitled to credit for years of prior service in the
  9 10 determination of retirement allowance payments by filing a
  9 11 written election with the system on or after July 1, 1978, and
  9 12 by redepositing any withdrawn contributions under the
  9 13 abolished system together with interest as stated in this
  9 14 paragraph.  Any individual who on or after July 1, 1978, is a
  9 15 retired member and who made application for and received a
  9 16 refund of contributions made under the abolished system may,
  9 17 by filing a written election with the system on or after July
  9 18 1, 1978, have the system retain fifty percent of the monthly
  9 19 increase in retiree benefits that will accrue to the
  9 20 individual because of prior service.  If the monthly increase
  9 21 in retirement benefits is less than ten dollars, the system
  9 22 shall retain five dollars of the scheduled increase, and if
  9 23 the monthly increase is less than five dollars, the provisions
  9 24 of this paragraph shall not apply.  The system shall continue
  9 25 to retain such funds until the withdrawn contributions,
  9 26 together with interest accrued to the month in which the
  9 27 written election is filed, have been repaid.  Due notice of
  9 28 this provision shall be sent to all retired members on or
  9 29 after July 1, 1978.  However, this paragraph shall not apply
  9 30 to any person who received a refund of any membership service
  9 31 contributions unless the person repaid the membership service
  9 32 contributions pursuant to section 97B.74 97B.80C; but a refund
  9 33 of contributions remitted for the calendar quarter ending
  9 34 September 30, 1953 which was based entirely upon employment
  9 35 which terminated prior to July 4, 1953 shall not be considered
 10  1 as a refund of membership service contributions.  The interest
 10  2 to be paid into the fund shall be compounded at the rates
 10  3 credited to member accounts from the date of payment of the
 10  4 refund of contributions under the abolished system to the date
 10  5 the member redeposits the refunded amount.  The provisions of
 10  6 the first paragraph of this section relating to the
 10  7 consideration given to credited amounts shall apply to the
 10  8 redeposited amounts or to amounts left on deposit.  Effective
 10  9 July 1, 1978, the provisions of this paragraph shall apply to
 10 10 each individual who on or after July 1, 1978, was an active,
 10 11 vested, or retired member, but who was not in service on July
 10 12 4, 1953.  The period for filing the written election with the
 10 13 system and redepositing any withdrawn contributions together
 10 14 with interest accrued shall commence July 1, 1978.  A member
 10 15 who is a retired member on or after July 1, 1978, may file
 10 16 written election with the system on or after July 1, 1978, to
 10 17 have the system retain fifty percent of the monthly increase
 10 18 as provided in this paragraph.
 10 19    Sec. 22.  Section 97B.43, unnumbered paragraph 4, Code
 10 20 Supplement 2003, is amended to read as follows:
 10 21    Effective July 1, 1988 2004, a member eligible for an
 10 22 increased retirement allowance because of the repayment of
 10 23 contributions under this section is entitled to receipt of
 10 24 retroactive adjustment payments for no more than six months
 10 25 immediately preceding beginning with the month in which
 10 26 written notice payment was submitted to received by the
 10 27 system.
 10 28    Sec. 23.  Section 97B.45, unnumbered paragraph 2, Code
 10 29 Supplement 2003, is amended by striking the unnumbered
 10 30 paragraph.
 10 31    Sec. 24.  Section 97B.46, subsection 2, Code Supplement
 10 32 2003, is amended to read as follows:
 10 33    2.  A member remaining in service after attaining the age
 10 34 of seventy years is entitled to receive a retirement allowance
 10 35 under sections 97B.49A through 97B.49H, as applicable,
 11  1 commencing with payment for the calendar month within which
 11  2 the written notice is submitted to the system, except that if
 11  3 the member fails to submit the notice on a timely basis,
 11  4 retroactive payments shall be made for no more than six months
 11  5 immediately preceding the month in which the written notice is
 11  6 submitted without terminating employment.
 11  7    Sec. 25.  Section 97B.47, Code Supplement 2003, is amended
 11  8 to read as follows:
 11  9    97B.47  EARLY RETIREMENT DATE.
 11 10    A member's early retirement date shall be the first of the
 11 11 month in which a member attains the age of fifty=five years or
 11 12 the first of any month after attaining the age of fifty=five
 11 13 years prior to the member's normal retirement date, provided
 11 14 such date shall be after the last day of service.  A member
 11 15 may retire on the member's early retirement date by submitting
 11 16 written notice to the system setting forth the early
 11 17 retirement date which shall not be before the first day of the
 11 18 sixth calendar month preceding the month in which such notice
 11 19 is filed.
 11 20    Sec. 26.  Section 97B.48, subsections 1 and 2, Code
 11 21 Supplement 2003, are amended to read as follows:
 11 22    1.  Retirement allowances shall be paid monthly, except
 11 23 that, if an allowance of less than six hundred dollars a year
 11 24 may, at the member's option is payable pursuant to section
 11 25 97B.51, subsection 1, paragraph "b", the member's retirement
 11 26 benefit shall be paid as a lump sum in an amount equal to the
 11 27 sum of the member's and employer's accumulated contributions
 11 28 and the retirement dividends standing to the member's credit
 11 29 before December 31, 1966.  Receipt of the lump sum payment by
 11 30 a member shall terminate any and all entitlement for the
 11 31 period of service covered of the member under this chapter and
 11 32 the member shall not be eligible to buy back the period of
 11 33 service.
 11 34    2.  The first monthly payment of a normal retirement
 11 35 allowance shall be paid as of the normal retirement effective
 12  1 date, which date shall be the later of the normal retirement
 12  2 date or the first day of the sixth calendar month preceding
 12  3 the month in which written notice of normal retirement is
 12  4 submitted to the system member's first month of entitlement.
 12  5 Written notice under this section may consist of submission of
 12  6 a completed estimate request form, a completed application for
 12  7 retirement form, or a letter from the member requesting
 12  8 information on retirement benefits, whichever is received
 12  9 first by the system.  However, a letter requesting information
 12 10 on benefits or submission of a completed estimate request form
 12 11 is only valid for six months following the date of its receipt
 12 12 by the system, unless during that six=month period the system
 12 13 receives a completed application for retirement form from the
 12 14 member.  A retirement allowance may only be provided
 12 15 retroactively for a single six=month period.  Payment of an
 12 16 early retirement allowance or an allowance for retirement
 12 17 after the normal retirement date shall be paid as of the
 12 18 effective date of retirement subject to section 97B.45,
 12 19 97B.46, or 97B.47.  The payments shall be continued thereafter
 12 20 for the lifetime of the retired member except as provided in
 12 21 section 97B.48A.
 12 22    Sec. 27.  Section 97B.48, subsection 5, Code Supplement
 12 23 2003, is amended by striking the subsection.
 12 24    Sec. 28.  Section 97B.48, Code Supplement 2003, is amended
 12 25 by adding the following new subsections:
 12 26    NEW SUBSECTION.  6.  Effective on such date as the system
 12 27 determines by rule, but in no event later than July 1, 2006,
 12 28 if the system determines that the accumulated contributions of
 12 29 a member, payable to a living member who has had a break in
 12 30 service or to a beneficiary of a deceased member, are less
 12 31 than three thousand dollars, the lump sum amount payable under
 12 32 this chapter shall be paid to the living member or beneficiary
 12 33 in full satisfaction of all rights of the member or
 12 34 beneficiary to receive any payments under the system.  For
 12 35 purposes of this section, a "break in service" means twenty
 13  1 consecutive calendar quarters in which no wages are reported
 13  2 to the system.  The lump sum payment shall be made within one
 13  3 hundred eighty days after the calendar quarter in which the
 13  4 member completes a break in service or dies, whichever is
 13  5 applicable.  A member or beneficiary who receives a mandatory
 13  6 distribution under this subsection shall have sixty days to
 13  7 return the distribution to the system and restore the member's
 13  8 or beneficiary's account.
 13  9    NEW SUBSECTION.  7.  Effective July 1, 2005, monthly
 13 10 retirement allowance payments shall be directly deposited
 13 11 without charge to a retired member's account via electronic
 13 12 funds transfer.  A retired member may elect to receive monthly
 13 13 allowance payments as paper warrants in lieu of electronic
 13 14 funds transfers, but the system shall charge an administrative
 13 15 fee for processing such paper warrants.  However, the system
 13 16 may, for good cause shown, waive the administrative fee.  The
 13 17 fee may be automatically deducted from the monthly retirement
 13 18 allowance before the warrant is issued to the retired member.
 13 19    Sec. 29.  Section 97B.48A, Code Supplement 2003, is amended
 13 20 by adding the following new subsection:
 13 21    NEW SUBSECTION.  5.  If a retired reemployed member incurs
 13 22 a break in service, as defined in this subsection, and the
 13 23 member has failed to request an increase in the member's
 13 24 monthly allowance or a distribution of the member's and
 13 25 employer's accumulated contributions prior to the break in
 13 26 service, and if the amount of the increase in the member's
 13 27 monthly retirement allowance would be less than six hundred
 13 28 dollars per year, the system shall distribute the lump sum
 13 29 amount payable under subsection 4.  For purposes of this
 13 30 subsection, a "break in service" means four consecutive
 13 31 calendar quarters in which no wages are reported to the
 13 32 system.  The lump sum payment shall be made within one hundred
 13 33 eighty days after the calendar quarter in which the member has
 13 34 a break in service.  A member who receives a mandatory
 13 35 distribution under this subsection shall have sixty days to
 14  1 return the distribution to the system and request an increase
 14  2 in the member's monthly allowance.
 14  3    Sec. 30.  NEW SECTION.  97B.49  DORMANT ACCOUNTS.
 14  4    1.  In the event that all, or any portion, of a retirement
 14  5 allowance, death benefit, or other distribution payable to a
 14  6 member or a member's designated beneficiary, heirs at law, or
 14  7 estate, remains unpaid solely by reason of the inability of
 14  8 the system to locate the appropriate payee, the amount payable
 14  9 shall not be forfeited but shall be treated as a dormant
 14 10 account after the time for making a claim has run.
 14 11    2.  A dormant account shall revert to the retirement fund
 14 12 created in section 97B.7.  A dormant account shall be non=
 14 13 interest=bearing, and except for keeping a record of such
 14 14 account, the system shall not maintain the account.  A member
 14 15 who has a dormant account and returns to covered employment
 14 16 shall have their dormant account reactivated as of the quarter
 14 17 they return to covered employment.  If the appropriate payee
 14 18 contacts the system after the amount payable is treated as a
 14 19 dormant account, the appropriate payee may claim such amounts
 14 20 by filing a withdrawal application provided by the system.
 14 21 The system shall have rulemaking authority to adopt rules
 14 22 necessary to implement this section in a just and equitable
 14 23 manner.
 14 24    3.  The system shall ensure that the payment of a dormant
 14 25 account as provided in this section meets the requirements of
 14 26 section 401(a)(9) of the federal Internal Revenue Code.
 14 27    Sec. 31.  Section 97B.49B, subsection 1, paragraph c, Code
 14 28 Supplement 2003, is amended to read as follows:
 14 29    c.  "Eligible service" means membership and prior service
 14 30 in a protection occupation.  In addition, for a member with
 14 31 membership and prior service in a protection occupation
 14 32 described in paragraph "e", subparagraph (2), eligible service
 14 33 includes membership and prior service as a sheriff, or deputy
 14 34 sheriff, or airport fire fighter as defined in section
 14 35 97B.49C.
 15  1    Sec. 32.  Section 97B.49B, subsection 1, paragraph e, Code
 15  2 Supplement 2003, is amended by adding the following new
 15  3 subparagraph:
 15  4    NEW SUBPARAGRAPH.  (8)  An airport fire fighter employed by
 15  5 the military division of the department of public defense.
 15  6    Sec. 33.  Section 97B.49B, subsection 3, paragraph b, Code
 15  7 Supplement 2003, is amended by adding the following new
 15  8 subparagraph:
 15  9    NEW SUBPARAGRAPH.  (7)  For the fiscal year commencing July
 15 10 1, 2004, and each succeeding fiscal year, there is
 15 11 appropriated from the general fund of the state to the system,
 15 12 from funds not otherwise appropriated, an amount necessary to
 15 13 pay the employer share of the cost of the additional benefits
 15 14 provided to airport fire fighters under this section.
 15 15    Sec. 34.  Section 97B.49C, subsection 1, paragraph a, Code
 15 16 Supplement 2003, is amended by striking the paragraph.
 15 17    Sec. 35.  Section 97B.49C, subsection 1, paragraph d, Code
 15 18 Supplement 2003, is amended to read as follows:
 15 19    d.  "Eligible service" means membership and prior service
 15 20 as an airport fire fighter, a sheriff, and deputy sheriff
 15 21 under this section.  In addition, eligible service includes
 15 22 membership and prior service as a marshal in a city not
 15 23 covered under chapter 400 or a fire fighter or police officer
 15 24 of a city not participating in the retirement systems
 15 25 established in chapter 410 or 411, and as an airport fire
 15 26 fighter prior to July 1, 1994.
 15 27    Sec. 36.  Section 97B.49C, subsection 2, Code Supplement
 15 28 2003, is amended to read as follows:
 15 29    2.  CALCULATION OF MONTHLY ALLOWANCE.
 15 30    a.  Notwithstanding other provisions of this chapter, a
 15 31 member who retires from employment as a sheriff, deputy
 15 32 sheriff, or airport fire fighter on or after July 1, 1994, and
 15 33 before July 1, 2004, and at the time of retirement is at least
 15 34 fifty=five years of age may elect to receive, in lieu of the
 15 35 receipt of any benefits as calculated pursuant to section
 16  1 97B.49A or 97B.49D, a monthly retirement allowance equal to
 16  2 one=twelfth of an amount equal to the applicable percentage of
 16  3 the three=year average covered wage as a member who has been
 16  4 employed in eligible service multiplied by a fraction of years
 16  5 of service, with benefits payable during the member's
 16  6 lifetime.
 16  7    b.  Notwithstanding other provisions of this chapter, a
 16  8 member who retires from employment as a sheriff or deputy
 16  9 sheriff on or after July 1, 2004, and at the time of
 16 10 retirement is either at least fifty=five years of age or is at
 16 11 least the applicable early retirement age with at least
 16 12 twenty=two years of eligible service may elect to receive, in
 16 13 lieu of the receipt of any benefits as calculated pursuant to
 16 14 section 97B.49A or 97B.49D, a monthly retirement allowance
 16 15 equal to one=twelfth of an amount equal to the applicable
 16 16 percentage of the three=year average covered wage as a member
 16 17 who has been employed in eligible service multiplied by a
 16 18 fraction of years of service, with benefits payable during the
 16 19 member's lifetime.
 16 20    c.  For purposes of this subsection, "applicable early
 16 21 retirement age" means the following:
 16 22    (1)  For each active or inactive vested member retiring on
 16 23 or after July 1, 2004, and before July 1, 2005, fifty=four
 16 24 years of age.
 16 25    (2)  For each active or inactive vested member retiring on
 16 26 or after July 1, 2005, and before July 1, 2006, fifty=three
 16 27 years of age.
 16 28    (3)  For each active or inactive vested member retiring on
 16 29 or after July 1, 2006, and before July 1, 2007, fifty=two
 16 30 years of age.
 16 31    (4)  For each active or inactive vested member retiring on
 16 32 or after July 1, 2007, and before July 1, 2008, fifty=one
 16 33 years of age.
 16 34    (5)  For each active or inactive vested member retiring on
 16 35 or after July 1, 2008, fifty years of age.
 17  1    Sec. 37.  Section 97B.49C, subsection 3, paragraph a, Code
 17  2 Supplement 2003, is amended to read as follows:
 17  3    a.  Annually, the system shall actuarially determine the
 17  4 cost of the additional benefits provided for members covered
 17  5 under this section as a percentage of the covered wages of the
 17  6 employees covered by this section.  Sixty Fifty percent of the
 17  7 cost shall be paid by the employers of employees covered under
 17  8 this section and forty fifty percent of the cost shall be paid
 17  9 by the employees.  The employer and employee contributions
 17 10 required under this paragraph are in addition to lieu of the
 17 11 contributions paid under sections 97B.11 and 97B.11A.
 17 12 However, the cost of including service as an airport fire
 17 13 fighter prior to July 1, 1994, as eligible service under this
 17 14 section shall not affect the contribution rates calculated and
 17 15 paid by the member or the employer under this section.
 17 16    Sec. 38.  Section 97B.49C, subsection 3, paragraph b, Code
 17 17 Supplement 2003, is amended to read as follows:
 17 18    b. (1)  Annually, during each fiscal year commencing with
 17 19 the fiscal year beginning July 1, 1988, each county shall pay
 17 20 to the system the amount necessary to pay the employer share
 17 21 of the cost of the additional benefits provided to sheriffs
 17 22 and deputy sheriffs.
 17 23    (2)  For the fiscal year commencing July 1, 1994, and each
 17 24 succeeding fiscal year, there is appropriated from the general
 17 25 fund of the state to the system, from funds not otherwise
 17 26 appropriated, an amount necessary to pay the employer share of
 17 27 the cost of the additional benefits provided to airport fire
 17 28 fighters under this section.
 17 29    Sec. 39.  Section 97B.50, subsection 2, Code Supplement
 17 30 2003, is amended to read as follows:
 17 31    2.  a.  A vested member who retires from the retirement
 17 32 system due to disability and commences receiving disability
 17 33 benefits pursuant to the federal Social Security Act, 42
 17 34 U.S.C. } 423 et seq., and who has not reached the normal
 17 35 retirement date, shall receive benefits as selected under
 18  1 section 97B.51, and shall not have benefits reduced upon
 18  2 retirement as required under subsection 1 regardless of
 18  3 whether the member has completed thirty or more years of
 18  4 membership service.  However, the benefits shall be suspended
 18  5 during any period in which the member returns to covered
 18  6 employment.  This section takes effect July 1, 1990, for a
 18  7 member meeting the requirements of this paragraph who retired
 18  8 from the retirement system at any time after July 4, 1953.
 18  9 Eligible members retiring on or after July 1, 2000, are
 18 10 entitled to the receipt of retroactive adjustment payments for
 18 11 no more than thirty=six months immediately preceding the month
 18 12 in which written notice of application for retirement due to
 18 13 disability was submitted to received by the system,
 18 14 notwithstanding the requirements of subsection 4.
 18 15    b.  A vested member who retires from the retirement system
 18 16 due to disability and commences receiving disability benefits
 18 17 pursuant to the federal Railroad Retirement Act, 45 U.S.C. }
 18 18 231 et seq., and who has not reached the normal retirement
 18 19 date, shall receive benefits as selected under section 97B.51,
 18 20 and shall not have benefits reduced upon retirement as
 18 21 required under subsection 1 regardless of whether the member
 18 22 has completed thirty or more years of membership service.
 18 23 However, the benefits shall be suspended during any period in
 18 24 which the member returns to covered employment.  This section
 18 25 takes effect July 1, 1990, for a member meeting the
 18 26 requirements of this paragraph who retired from the retirement
 18 27 system at any time since July 4, 1953.  Eligible members
 18 28 retiring on or after July 1, 2000, are entitled to the receipt
 18 29 of retroactive adjustment payments for no more than thirty=six
 18 30 months immediately preceding the month in which written notice
 18 31 of application for retirement due to disability was submitted
 18 32 to received by the system, notwithstanding the requirements of
 18 33 subsection 4.
 18 34    c.  A vested member who terminated service due to a
 18 35 disability, who has been issued payment for a refund pursuant
 19  1 to section 97B.53, and who subsequently commences receiving
 19  2 disability benefits as a result of that disability pursuant to
 19  3 the federal Social Security Act, 42 U.S.C. } 423 et seq. or
 19  4 the federal Railroad Retirement Act, 45 U.S.C. } 231 et seq.,
 19  5 may receive credit for membership service for the period
 19  6 covered by the refund payment, upon repayment to the system of
 19  7 the actuarial cost of receiving service credit for the period
 19  8 covered by the refund payment, as determined by the system.
 19  9 For purposes of this paragraph, the actuarial cost of the
 19 10 service purchase shall be determined as provided in section
 19 11 97B.74 97B.80C.  The payment to the system as provided in this
 19 12 paragraph shall be made within ninety days after July 1, 2000,
 19 13 or the date federal disability payments commenced, whichever
 19 14 occurs later.  For purposes of this paragraph, the date
 19 15 federal disability payments commence shall be the date that
 19 16 the member actually receives the first such payment,
 19 17 regardless of any retroactive payments included in that
 19 18 payment.  A member who repurchases service credit under this
 19 19 paragraph and applies for retirement benefits shall have the
 19 20 member's monthly allowance, including retroactive adjustment
 19 21 payments, determined in the same manner as provided in
 19 22 paragraph "a" or "b", as applicable.  This paragraph shall not
 19 23 be implemented until the system has received a determination
 19 24 letter from the federal internal revenue service approving the
 19 25 system's plan's qualified status under Internal Revenue Code
 19 26 section 401(a).
 19 27    Sec. 40.  Section 97B.50, subsection 4, Code Supplement
 19 28 2003, is amended by striking the subsection.
 19 29    Sec. 41.  Section 97B.50A, subsection 5, Code Supplement
 19 30 2003, is amended to read as follows:
 19 31    5.  OFFSET TO ALLOWANCE.  Notwithstanding any provisions to
 19 32 the contrary in state law, or any applicable contract or
 19 33 policy, any amounts which may be paid or payable by the
 19 34 employer under any workers' compensation, unemployment
 19 35 compensation, employer=paid disability plan, program, or
 20  1 policy, or other law to a member, and any disability payments
 20  2 the member receives pursuant to the federal Social Security
 20  3 Act, 42 U.S.C. } 423 et seq., shall be offset against and
 20  4 payable in lieu of any retirement allowance payable pursuant
 20  5 to this section on account of the same disability.
 20  6    Sec. 42.  Section 97B.52, subsection 1, unnumbered
 20  7 paragraph 1, Code Supplement 2003, is amended to read as
 20  8 follows:
 20  9    If a an inactive member, with at least sixteen calendar
 20 10 quarters of service credit, or any active member dies prior to
 20 11 the member's first month of entitlement, the member's
 20 12 beneficiary shall be entitled to receive a death benefit equal
 20 13 to the greater of the amount provided in paragraph "a" or "b".
 20 14 If an inactive member with less than sixteen calendar quarters
 20 15 of service credit dies prior to the member's first month of
 20 16 entitlement, the member's beneficiary shall only be entitled
 20 17 to receive a death benefit, as a lump sum, equal to the amount
 20 18 provided in paragraph "a".
 20 19    Sec. 43.  Section 97B.52, subsection 1, paragraph a,
 20 20 subparagraph (3), Code Supplement 2003, is amended to read as
 20 21 follows:
 20 22    (3)  For service as a sheriff, or deputy sheriff, or
 20 23 airport fire fighter, as provided in section 97B.49C, the
 20 24 applicable denominator is twenty=two.
 20 25    Sec. 44.  Section 97B.52, subsection 5, unnumbered
 20 26 paragraph 3, Code Supplement 2003, is amended by striking the
 20 27 unnumbered paragraph.
 20 28    Sec. 45.  Section 97B.52, subsection 7, Code Supplement
 20 29 2003, is amended to read as follows:
 20 30    7.  If a member has not filed a designation of beneficiary
 20 31 with the system, the death benefit is payable to the member's
 20 32 estate.  If no designation has been filed and an estate is not
 20 33 probated, the death benefit shall be paid to the surviving
 20 34 spouse, if any.  If no designation has been filed, no estate
 20 35 has been probated, and there is no surviving spouse, the death
 21  1 benefit shall be paid to the heirs as provided in this
 21  2 subsection.  The system shall pay the full amount of a
 21  3 member's death benefits to those heirs who have presented a
 21  4 claim for such benefits within five years after the member's
 21  5 date of death.  The system is not liable for the payment of
 21  6 any claims by heirs who make themselves known to the system
 21  7 more than five years after the date of death of the member.
 21  8 Otherwise If a death benefit is not paid as provided by this
 21  9 subsection, the death benefit shall remain in the fund.
 21 10    Sec. 46.  Section 97B.52A, subsection 1, paragraph c, Code
 21 11 Supplement 2003, is amended to read as follows:
 21 12    c.  For a member whose first month of entitlement is July
 21 13 2000 or later, the member does not return to any employment
 21 14 with a covered employer until the member has qualified for at
 21 15 least one calendar month of retirement benefits, and the
 21 16 member does not return to covered employment until the member
 21 17 has qualified for no fewer than four calendar months of
 21 18 retirement benefits.  For purposes of this paragraph,
 21 19 effective July 1, 2000, any employment with a covered employer
 21 20 does not include employment as an elective official or member
 21 21 of the general assembly if the member is not covered under
 21 22 this chapter for that employment.  For purposes of determining
 21 23 a bona fide retirement under this paragraph and for a member
 21 24 whose first month of entitlement is July 2004 or later, but
 21 25 before July 2006, covered employment does not include
 21 26 employment as a licensed health care professional by a public
 21 27 hospital as defined in section 249I.3.
 21 28    Sec. 47.  Section 97B.53, subsection 4, Code Supplement
 21 29 2003, is amended to read as follows:
 21 30    4.  A member has not terminated employment for purposes of
 21 31 this section if the member accepts commences other covered
 21 32 employment within thirty days after receiving the last payment
 21 33 of wages for the date employment was terminated with a covered
 21 34 employment employer, or if the member begins covered
 21 35 employment prior to filing a request for a refund with the
 22  1 system.
 22  2    Sec. 48.  Section 97B.53B, subsection 1, paragraph c,
 22  3 subparagraph (2), subparagraph subdivision (c), Code
 22  4 Supplement 2003, is amended to read as follows:
 22  5    (c)  The Prior to January 1, 2002, the portion of any
 22  6 distribution that is not includible in the gross income of the
 22  7 distributee, determined without regard to the exclusion for
 22  8 net unrealized appreciation with respect to employer
 22  9 securities.
 22 10    Sec. 49.  Section 97B.73B, subsection 2, paragraph b, Code
 22 11 Supplement 2003, is amended to read as follows:
 22 12    b.  For a purchase of membership service on or after July
 22 13 1, 2002, the actuarial cost of the service purchase in a
 22 14 manner as provided in section 97B.73 97B.80C.
 22 15    Sec. 50.  Section 97B.73B, subsection 2, Code Supplement
 22 16 2003, is amended by adding the following new paragraph:
 22 17    NEW PARAGRAPH.  c.  Effective July 1, 2004, a member
 22 18 eligible for an increased retirement allowance because of the
 22 19 payment of contributions under this section is entitled to
 22 20 adjusted payments beginning with the month in which the member
 22 21 pays contributions under this section.
 22 22    Sec. 51.  Section 97B.80, subsection 3, Code Supplement
 22 23 2003, is amended to read as follows:
 22 24    3.  The system shall adjust benefits for a six=month period
 22 25 prior to the date the member pays contributions under this
 22 26 section if the member is receiving a retirement allowance at
 22 27 the time the contribution payment is made.  Verification of
 22 28 active duty service and payment of contributions shall be made
 22 29 to the system.  However, a member is not eligible to make
 22 30 contributions under this section if the member is receiving,
 22 31 is eligible to receive, or may in the future be eligible to
 22 32 receive retirement pay from the United States government for
 22 33 active duty in the armed forces, except for retirement pay
 22 34 granted by the United States government under retired pay for
 22 35 nonregular service pursuant to 10 U.S.C. } 12731==12739.  A
 23  1 member receiving retired pay for nonregular service who makes
 23  2 contributions under this section shall provide information
 23  3 required by the system documenting time periods covered under
 23  4 retired pay for nonregular service.
 23  5    Sec. 52.  Section 97B.80, subsection 4, Code Supplement
 23  6 2003, is amended by striking the subsection and inserting in
 23  7 lieu thereof the following:
 23  8    4.  Effective July 1, 2004, a member eligible for an
 23  9 increased retirement allowance because of the payment of
 23 10 contributions under this section is entitled to adjusted
 23 11 payments beginning with the month in which the member pays
 23 12 contributions under this section.
 23 13    Sec. 53.  Section 97B.80C, subsection 1, paragraph a, Code
 23 14 Supplement 2003, is amended to read as follows:
 23 15    a.  "Nonqualified service" means service that is not
 23 16 qualified service. and includes, but is not limited to, any of
 23 17 the following:
 23 18    (1)  Full=time volunteer public service in the federal
 23 19 peace corps program.
 23 20    (2)  Public employment comparable to employment covered
 23 21 under this chapter in a qualified Canadian governmental entity
 23 22 that is an elementary school, secondary school, college, or
 23 23 university that is organized, administered, and primarily
 23 24 supported by the provincial, territorial, or federal
 23 25 governments of Canada, or any combination of the same.
 23 26    Sec. 54.  Section 97B.80C, subsection 1, paragraph c,
 23 27 subparagraph (1), Code Supplement 2003, is amended by adding
 23 28 the following new subparagraph subdivisions:
 23 29    NEW SUBPARAGRAPH SUBDIVISION.  (e)  Service as a member of
 23 30 the general assembly.
 23 31    NEW SUBPARAGRAPH SUBDIVISION.  (f)  Previous service as a
 23 32 county attorney by a part=time county attorney.
 23 33    NEW SUBPARAGRAPH SUBDIVISION.  (g)  Service in public
 23 34 employment comparable to employment covered under this chapter
 23 35 in another state or in the federal government, or service as a
 24  1 member of another public retirement system in this state,
 24  2 including but not limited to the teachers insurance and
 24  3 annuity association=college retirement equities fund (TIAA=
 24  4 CREF), if the member was not retired under that system and has
 24  5 no further claim upon a retirement benefit from that other
 24  6 public system.
 24  7    NEW SUBPARAGRAPH SUBDIVISION.  (h)  Service as a member of
 24  8 the retirement system at any time on or after July 4, 1953, if
 24  9 the member received a refund of the member's accumulated
 24 10 contributions for that period of membership service.
 24 11    NEW SUBPARAGRAPH SUBDIVISION.  (i)  An approved leave of
 24 12 absence which does not constitute service as defined in
 24 13 section 97B.1A, which is granted on or after July 1, 1998.
 24 14    NEW SUBPARAGRAPH SUBDIVISION.  (j)  Employment of a person
 24 15 who at the time of the employment was not covered by this
 24 16 chapter, was employed by a covered employer under this
 24 17 chapter, and did not opt out of coverage under this chapter.
 24 18    NEW SUBPARAGRAPH SUBDIVISION.  (k)  Employment of a person
 24 19 as an adjunct instructor as defined in section 97B.1A,
 24 20 subsection 8.
 24 21    Sec. 55.  Section 97B.80C, subsection 3, Code Supplement
 24 22 2003, is amended to read as follows:
 24 23    3.  a.  A member making contributions for a purchase of
 24 24 permissive service credit under this section, except as
 24 25 otherwise provided by this subsection, shall make
 24 26 contributions in an amount equal to the actuarial cost of the
 24 27 permissive service credit purchase.  For purposes of this
 24 28 subsection, the actuarial cost of the service purchase is an
 24 29 amount determined by the system in accordance with actuarial
 24 30 tables, as reported to the system by the system's actuary,
 24 31 which reflects the actuarial cost necessary to fund an
 24 32 increased retirement allowance resulting from the purchase of
 24 33 permissive service credit.
 24 34    b.  For a member making contributions for a purchase of
 24 35 permissive service credit for qualified service as described
 25  1 in subsection 1, paragraph "c", subparagraph (1), subparagraph
 25  2 subdivision (e), under this section, the member shall make
 25  3 contributions in an amount equal to forty percent of the
 25  4 actuarial cost of the service purchase.  There is appropriated
 25  5 from the general fund of the state to the system an amount
 25  6 sufficient to pay sixty percent of the actuarial cost of the
 25  7 service purchase by a member pursuant to this paragraph.
 25  8    c.  For a member making contributions for a purchase of
 25  9 permissive service credit for qualified service as described
 25 10 in subsection 1, paragraph "c", subparagraph (1), subparagraph
 25 11 subdivision (f), under this section, the member shall make
 25 12 contributions in an amount equal to forty percent of the
 25 13 actuarial cost of the service purchase.  Upon notification of
 25 14 the applicable county board of supervisors of the member's
 25 15 election, the county board of supervisors shall pay to the
 25 16 system an amount sufficient to pay sixty percent of the
 25 17 actuarial cost of the service purchase by a member pursuant to
 25 18 this paragraph.
 25 19    d.  For purposes of this subsection, the actuarial cost of
 25 20 the service purchase is an amount determined by the system in
 25 21 accordance with actuarial tables, as reported to the system by
 25 22 the system's actuary, which reflects the actuarial cost
 25 23 necessary to fund an increased retirement allowance resulting
 25 24 from the purchase of permissive service credit.
 25 25    Sec. 56.  Section 97B.80C, Code Supplement 2003, is amended
 25 26 by adding the following new subsections:
 25 27    NEW SUBSECTION.  3A.  Effective July 1, 2004, a member
 25 28 eligible for an increased retirement allowance because of the
 25 29 payment of contributions under this or any other section
 25 30 providing for the purchase of service credit is entitled to
 25 31 adjusted payments beginning with the month in which the member
 25 32 pays contributions under the applicable section.
 25 33    NEW SUBSECTION.  3B.  Effective July 1, 2004, a purchase of
 25 34 service made in accordance with this or any other section
 25 35 providing for the purchase of service credit by a retired
 26  1 reemployed member shall be applied to the member's original
 26  2 retirement allowance.  The member is eligible to receive
 26  3 adjustment payments beginning with the month of the purchase.
 26  4    NEW SUBSECTION.  3C.  A member who is entitled to a benefit
 26  5 from another public retirement system and wishes to purchase
 26  6 the service covered by that public retirement system must
 26  7 waive, on a form provided by the Iowa public employees'
 26  8 retirement system, all rights to a retirement benefit under
 26  9 that other public system before purchasing credit in this
 26 10 system for the period of service covered by that other public
 26 11 system.  The waiver must be accepted by the other public
 26 12 system.  If the waiver is not obtained, a member may buy up to
 26 13 twenty quarters of such service credit.  In no event can a
 26 14 member receive more than one service credit for any given
 26 15 calendar quarter.
 26 16    Sec. 57.  Section 411.6, subsection 7, paragraph c, Code
 26 17 2003, is amended to read as follows:
 26 18    c.  Should a disability beneficiary under age fifty=five be
 26 19 employed in a public safety occupation, the disability
 26 20 beneficiary's retirement allowance shall cease.
 26 21 Notwithstanding any provision of this chapter to the contrary,
 26 22 if a disability beneficiary is employed in a public safety
 26 23 occupation that would otherwise constitute membership service,
 26 24 the disability beneficiary shall not become a member of the
 26 25 system.  For purposes of this paragraph, "public safety
 26 26 occupation" means a peace officer, as defined in section
 26 27 97A.1; a protection occupation, as defined in section 97B.49B;
 26 28 a sheriff, or deputy sheriff, or airport fire fighter, as
 26 29 defined in section 97B.49C; and a police officer or fire
 26 30 fighter as defined in section 411.1, who was not restored to
 26 31 active service as provided by this subsection.
 26 32    Sec. 58.  Section 724.6, subsection 2, Code 2003, is
 26 33 amended to read as follows:
 26 34    2.  Notwithstanding subsection 1, fire fighters, as defined
 26 35 in section 411.1, subsection 9, airport fire fighters included
 27  1 under section 97B.49C 97B.49B, emergency rescue technicians,
 27  2 and emergency medical care providers, as defined in section
 27  3 147A.1, shall not, as a condition of employment, be required
 27  4 to obtain a permit under this section.  However, the
 27  5 provisions of this subsection shall not apply to a person
 27  6 designated as an arson investigator by the chief fire officer
 27  7 of a political subdivision.
 27  8    Sec. 59.  2002 Iowa Acts, chapter 1135, section 36,
 27  9 subsections 1 and 3, are amended to read as follows:
 27 10    1.  a.  Notwithstanding any provision of chapter 97B to the
 27 11 contrary, a member of the Iowa public employees' retirement
 27 12 system who has an employer=mandated reduction in hours or an
 27 13 employee=exercised reduction in pay but remains on the
 27 14 employer's payroll, and who would receive a reduction in the
 27 15 member's three=year average covered wage as a result of the
 27 16 reduction in hours or pay, may have the member's retirement
 27 17 allowance calculated based on the three=year average covered
 27 18 wage the member would have received, based on reasonable
 27 19 assumptions, if the member had not been subject to the
 27 20 employer=mandated reduction in hours or employee=exercised
 27 21 reduction in pay, upon payment by the member of the applicable
 27 22 contribution amount.
 27 23    b.  For purposes of this section, the applicable unless the
 27 24 context otherwise requires:
 27 25    (1)  "Applicable contribution amount amount" is an amount
 27 26 equal to the employee and employer contributions that would
 27 27 have been paid to the system based on the wages that the
 27 28 member would have received but for the employer=mandated
 27 29 reduction in hours or employee=exercised reduction in pay and
 27 30 would have been included in the member's three=year average
 27 31 covered wage.
 27 32    (2)  "Employee=exercised reduction in pay" means a
 27 33 reduction in pay of a member who has exercised bumping rights
 27 34 by accepting a lower=paid position in order to avoid being
 27 35 laid off by the employer.
 28  1    3.  This section shall apply to employer=mandated
 28  2 reductions in hours or employee=exercised reductions in pay
 28  3 during the period of time beginning on or after January 1,
 28  4 2002, and ending no later than June 30, 2003 2005.  The system
 28  5 is authorized to adopt such rules, including emergency rules,
 28  6 as it deems necessary or prudent to implement this section.
 28  7    Sec. 60.  Sections 97B.72, 97B.72A, 97B.73, 97B.73A,
 28  8 97B.74, 97B.75, 97B.80A, 97B.80B, and 97B.81, Code Supplement
 28  9 2003, are repealed.
 28 10    Sec. 61.  EFFECTIVE DATE == RETROACTIVE APPLICABILITY.
 28 11    1.  The section of this Act amending section 97B.53B,
 28 12 subsection 1, paragraph "c", being deemed of immediate
 28 13 importance, takes effect upon enactment and is retroactively
 28 14 applicable to January 1, 2002, and is applicable on and after
 28 15 that date.
 28 16    2.  The section of this Act amending 2002 Iowa Acts,
 28 17 chapter 1135, section 36, being deemed of immediate
 28 18 importance, takes effect upon enactment and is retroactively
 28 19 applicable to January 1, 2002, and is applicable on and after
 28 20 that date.
 28 21    Sec. 62.  LICENSED HEALTH CARE PROFESSIONALS == BONA FIDE
 28 22 RETIREMENT REPORT.  The Iowa public employees' retirement
 28 23 system and the Iowa hospital association shall each submit a
 28 24 report to the general assembly by December 1, 2006, concerning
 28 25 the costs and effectiveness of the provision of this Act
 28 26 amending section 97B.52A that provides that covered
 28 27 employment, for purposes of establishing a bona fide
 28 28 retirement, does not include employment as a licensed health
 28 29 care professional by a public hospital as defined in section
 28 30 249I.3.  Each report shall provide statistics concerning the
 28 31 number of members taking advantage of this provision, the
 28 32 costs and financial benefits, if any, associated with this
 28 33 provision, and recommendations for further action.
 28 34                          DIVISION III
 28 35           STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
 29  1    Sec. 63.  Section 400.8, subsection 1, Code 2003, is
 29  2 amended to read as follows:
 29  3    400.8  ORIGINAL ENTRANCE EXAMINATION == APPOINTMENTS.
 29  4    1.  The commission, when necessary under the rules,
 29  5 including minimum and maximum age limits, which shall be
 29  6 prescribed and published in advance by the commission and
 29  7 posted in the city hall, shall hold examinations for the
 29  8 purpose of determining the qualifications of applicants for
 29  9 positions under civil service, other than promotions, which
 29 10 examinations shall be practical in character and shall relate
 29 11 to matters which will fairly test the mental and physical
 29 12 ability of the applicant to discharge the duties of the
 29 13 position to which the applicant seeks appointment.  The
 29 14 physical examination of applicants for appointment to the
 29 15 positions of police officer, police matron, or fire fighter
 29 16 shall be held in accordance with medical protocols established
 29 17 by the board of trustees of the fire and police retirement
 29 18 system established by section 411.5 and shall be conducted in
 29 19 accordance with the directives of the board of trustees.
 29 20 However, the prohibitions of section 216.6, subsection 1,
 29 21 paragraph "d", regarding tests for the presence of the
 29 22 antibody to the human immunodeficiency virus shall not apply
 29 23 to such examinations.  The board of trustees may change the
 29 24 medical protocols at any time the board so determines.  The
 29 25 physical examination of an applicant for the position of
 29 26 police officer, police matron, or fire fighter shall be
 29 27 conducted after a conditional offer of employment has been
 29 28 made to the applicant.  An applicant shall not be
 29 29 discriminated against on the basis of height, weight, sex, or
 29 30 race in determining physical or mental ability of the
 29 31 applicant.  Reasonable rules relating to strength, agility,
 29 32 and general health of applicants shall be prescribed.  The
 29 33 costs of the physical examination required under this
 29 34 subsection shall be paid from the trust and agency fund of the
 29 35 city.
 30  1    Sec. 64.  Section 411.5, Code 2003, is amended by adding
 30  2 the following new subsection:
 30  3    NEW SUBSECTION.  14.  MEDICAL RECORDS.  A physician or
 30  4 surgeon, physician assistant, advanced registered nurse
 30  5 practitioner, or mental health professional who provides
 30  6 records to the system in connection with the application by a
 30  7 member for disability retirement under this chapter shall be
 30  8 entitled to charge a fee for production of the records.  The
 30  9 fee for copies of any records shall not exceed the reasonable
 30 10 cost of production.
 30 11    Sec. 65.  Section 411.6, subsection 7, unnumbered paragraph
 30 12 1, Code 2003, is amended to read as follows:
 30 13    Re=examination Reexamination of beneficiaries retired on
 30 14 account of disability.  Once each year during the first five
 30 15 years following the retirement of a member on a disability
 30 16 retirement allowance, and once in every three=year period
 30 17 thereafter, the The system may, and upon the member's
 30 18 application shall, require any disability beneficiary who has
 30 19 not yet attained age fifty=five to undergo a medical
 30 20 examination at a place designated by the medical board.  The
 30 21 examination shall be made by the medical board or in special
 30 22 cases, by an additional physician or physicians designated by
 30 23 such board.  If any disability beneficiary who has not
 30 24 attained the age of fifty=five refuses to submit to the
 30 25 medical examination, the member's allowance may be
 30 26 discontinued until withdrawal of such refusal, and if the
 30 27 refusal continues for one year all rights in and to the
 30 28 member's pension may be revoked by the system.  For a
 30 29 disability beneficiary who has not attained the age of fifty=
 30 30 five and whose entitlement to a disability retirement
 30 31 commenced on or after July 1, 2000, the medical board may, as
 30 32 part of the examination required by this subsection, suggest
 30 33 appropriate medical treatment or rehabilitation if, in the
 30 34 opinion of the medical board, the recommended treatment or
 30 35 rehabilitation would likely restore the disability beneficiary
 31  1 to duty.
 31  2    Sec. 66.  Section 411.6, subsection 7, paragraph a,
 31  3 unnumbered paragraph 2, Code 2003, is amended to read as
 31  4 follows:
 31  5    A beneficiary retired under this lettered paragraph, in
 31  6 order to be eligible for continued receipt of retirement
 31  7 benefits, shall no later than May 15 of each year submit to
 31  8 the system a copy of the beneficiary's federal individual
 31  9 income tax return for the preceding year.  The beneficiary
 31 10 shall also submit, within a reasonable period of time, any
 31 11 documentation requested by the system that is determined to be
 31 12 necessary by the system to determine the beneficiary's gross
 31 13 wages.
 31 14    Sec. 67.  Section 411.6B, subsection 1, Code 2003, is
 31 15 amended to read as follows:
 31 16    1.  As used in this section, unless the context otherwise
 31 17 requires, and to the extent permitted by the internal revenue
 31 18 service:
 31 19    a.  "Direct rollover" means a payment by the system to the
 31 20 eligible retirement plan specified by the member or the
 31 21 member's surviving spouse, or the member's alternate payee
 31 22 under a marital property order who is the member's spouse or
 31 23 former spouse.
 31 24    b.  "Eligible retirement plan" means either any of the
 31 25 following that accepts an eligible rollover distribution from
 31 26 a member, or a member's surviving spouse, or a member's
 31 27 alternate payee:
 31 28    (1)  An individual retirement account in accordance with
 31 29 section 408(a) of the federal Internal Revenue Code.
 31 30    (2)  An individual retirement annuity in accordance with
 31 31 section 408(b) of the federal Internal Revenue Code.
 31 32    In addition, an "eligible retirement plan" includes an
 31 33 annuity plan in accordance with section 403(a) of the federal
 31 34 Internal Revenue Code, or a qualified trust in accordance with
 31 35 section 401(a) of the federal Internal Revenue Code, that
 32  1 accepts an eligible rollover distribution from a member.
 32  2 Effective January 1, 2002, the term "eligible retirement plan"
 32  3 also includes an annuity contract described in section 403(b)
 32  4 of the federal Internal Revenue Code, and an eligible plan
 32  5 under section 457(b) of the federal Internal Revenue Code
 32  6 which is maintained by a state, political subdivision of a
 32  7 state, or any agency or instrumentality of a state or
 32  8 political subdivision of a state that chooses to separately
 32  9 account for amounts rolled over into such eligible retirement
 32 10 plan from the system.
 32 11    c.  "Eligible rollover distribution" means all or any
 32 12 portion of a member's account, except that an eligible
 32 13 rollover distribution does not include any of the following:
 32 14    (1)  A distribution that is one of a series of
 32 15 substantially equal periodic payments, which occur annually or
 32 16 more frequently, made for the life or life expectancy of the
 32 17 distributee or the joint lives or joint life expectancies of
 32 18 the distributee and the distributee's designated beneficiary,
 32 19 or made for a specified period of ten years or more.
 32 20    (2)  A distribution to the extent that the distribution is
 32 21 required pursuant to section 401(a)(9) of the federal Internal
 32 22 Revenue Code.
 32 23    (3)  The portion of any distribution that is not includible
 32 24 in the gross income of the distributee, determined without
 32 25 regard to the exclusion for net unrealized appreciation with
 32 26 respect to employer securities.  Provided, however, that
 32 27 effective January 1, 2002, such distributions may be directly
 32 28 rolled over to an individual retirement account described in
 32 29 federal Internal Revenue Code section 408(a) or 408(b), a
 32 30 qualified defined contribution plan described in federal
 32 31 Internal Revenue Code section 401(a), or a qualified annuity
 32 32 plan described in federal Internal Revenue Code section
 32 33 403(a), if such plan agrees to separately account for the
 32 34 after=tax amount so rolled over.
 32 35    (4)  A distribution of less than two hundred dollars of
 33  1 taxable income.
 33  2    Sec. 68.  Section 411.22, subsection 1, paragraph b, Code
 33  3 2003, is amended to read as follows:
 33  4    b.  A sum sufficient to pay the retirement system the
 33  5 present worth, computed at the interest rate provided in
 33  6 section 535.3 for court judgments and decrees assumption
 33  7 adopted by the system pursuant to section 411.5, subsection 9,
 33  8 of the future payments of such benefits, for which the
 33  9 retirement system is liable, but the sum is not a final
 33 10 adjudication of the future payments which the member is
 33 11 entitled to receive.
 33 12    Sec. 69.  Section 411.31, subsection 1, Code 2003, is
 33 13 amended by adding the following new paragraph:
 33 14    NEW PARAGRAPH.  e.  "Refund liability" means the amount the
 33 15 member may elect to withdraw from the former system under
 33 16 section 97A.16.
 33 17    Sec. 70.  Section 411.31, subsection 2, Code 2003, is
 33 18 amended to read as follows:
 33 19    2.  Commencing July 1, 1996, a vested member of an eligible
 33 20 retirement system who terminates employment covered by one
 33 21 eligible retirement system and, within one year, commences
 33 22 employment covered by the other eligible retirement system may
 33 23 elect to transfer the greater of the average accrued benefit
 33 24 or refund liability earned from the former system to the
 33 25 current system.  The member shall file an application with the
 33 26 current system for transfer of the greater of the average
 33 27 accrued benefit or refund liability within ninety days of the
 33 28 commencement of employment with the current system.
 33 29    Sec. 71.  Section 411.31, subsection 4, Code 2003, is
 33 30 amended to read as follows:
 33 31    4.  Upon receipt of an application for transfer of the
 33 32 average accrued benefit as provided in this section, the
 33 33 current system shall calculate the average accrued benefit and
 33 34 the refund liability and the former system shall transfer to
 33 35 the current system assets in an amount equal to the greater of
 34  1 the average accrued benefit or refund liability.  Once the
 34  2 transfer of the average accrued benefit is completed, the
 34  3 member's service under the former system shall be treated as
 34  4 membership service under the current system for purposes of
 34  5 this chapter and chapter 97A.
 34  6    Sec. 72.  Section 411.36, subsection 1, paragraph c, Code
 34  7 2003, is amended to read as follows:
 34  8    c.  A city treasurer, city financial officer, or city clerk
 34  9 involved with the financial matters of the city from four
 34 10 participating cities, one of whom is from a city having a
 34 11 population of less than forty thirty thousand, and three of
 34 12 whom are from cities having a population of forty thirty
 34 13 thousand or more.  The members authorized pursuant to this
 34 14 paragraph shall be appointed by the governing body of the Iowa
 34 15 league of cities.
 34 16    Sec. 73.  EFFECTIVE DATE == RETROACTIVE APPLICABILITY.  The
 34 17 section of this Act amending section 411.6B, subsection 1,
 34 18 being deemed of immediate importance, takes effect upon
 34 19 enactment and is retroactively applicable to January 1, 2002,
 34 20 and is applicable on and after that date.
 34 21                           DIVISION IV
 34 22                   JUDICIAL RETIREMENT SYSTEM
 34 23    Sec. 74.  JUDICIAL RETIREMENT SYSTEM == SPECIAL VESTING
 34 24 PROVISION.
 34 25    1.  Notwithstanding any provision of chapter 602 to the
 34 26 contrary, a judge who has had an aggregate of at least four
 34 27 years of service as a judge of one or more of the courts as of
 34 28 the effective date of this section of this Act shall be deemed
 34 29 to have had at least six years of service as a judge for
 34 30 purposes of determining the judge's eligibility for a
 34 31 retirement benefit under the retirement system pursuant to
 34 32 sections 602.9106, 602.9108, and 602.9112, and section
 34 33 602.9107C, subsection 1.
 34 34    2.  This section of this Act, being deemed of immediate
 34 35 importance, takes effect upon enactment.
 35  1                           DIVISION V
 35  2                    MISCELLANEOUS PROVISIONS
 35  3    Sec. 75.  NEW SECTION.  70A.17B  PAYROLL DEDUCTION FOR
 35  4 ADDITIONAL INSURANCE COVERAGE.
 35  5    1.  The state officer in charge of any of the state payroll
 35  6 systems shall deduct from the wages or salaries of a state
 35  7 officer or employee an amount specified by the officer or
 35  8 employee for payment to any company authorized to do business
 35  9 in this state for the purpose of purchasing insurance if all
 35 10 of the following conditions are met:
 35 11    a.  At least five hundred state officers or employees
 35 12 request the deduction to purchase insurance from the same
 35 13 company.
 35 14    b.  The request for the payroll deduction is made by the
 35 15 state officer or employee in writing to the officer in charge
 35 16 of the program.
 35 17    c.  The pay period during which the deduction is made, the
 35 18 frequency, and the amount of the deduction are compatible with
 35 19 the payroll system.
 35 20    d.  The insurance coverage to be purchased is not provided
 35 21 by the state.
 35 22    e.  The company providing the insurance enters into a
 35 23 written agreement with the state delineating each party's
 35 24 rights and responsibilities.
 35 25    2.  The moneys deducted under this section shall be paid to
 35 26 the company designated by the requesting state officers or
 35 27 employees.  The deduction may be made even though the
 35 28 compensation paid to an officer or employee is reduced to an
 35 29 amount below the minimum prescribed by law.  Payment to an
 35 30 officer or employee of compensation less the deduction shall
 35 31 constitute a full discharge of claims and demands for services
 35 32 rendered by the officer or employee during the period covered
 35 33 by the payment.  The request for the deduction may be
 35 34 withdrawn at any time by filing a written notification of
 35 35 withdrawal with the state officer in charge of any of the
 36  1 state payroll systems.
 36  2    3.  The department of administrative services reserves the
 36  3 right to terminate an insurance company's participation in the
 36  4 program if the department receives complaints regarding the
 36  5 actions of the insurance company or its agents in relation to
 36  6 the program and such termination would be in the best interest
 36  7 of the state officers and employees, the department makes a
 36  8 determination that the insurance company has engaged in a
 36  9 pattern or practice of unfair, misleading, or fraudulent acts
 36 10 and such termination would be in the best interest of the
 36 11 state officers and employees, or the commissioner of insurance
 36 12 determines that the company has engaged in practices that
 36 13 would otherwise disqualify the company from providing
 36 14 insurance coverage in Iowa.
 36 15    4.  The department is authorized to establish and collect
 36 16 an administrative fee as deemed necessary and appropriate in
 36 17 an amount not to exceed the state's actual cost of providing
 36 18 the payroll deduction service.
 36 19
 36 20
 36 21                                                             
 36 22                               CHRISTOPHER C. RANTS
 36 23                               Speaker of the House
 36 24
 36 25
 36 26                                                             
 36 27                               JEFFREY M. LAMBERTI
 36 28                               President of the Senate
 36 29
 36 30    I hereby certify that this bill originated in the House and
 36 31 is known as House File 2262, Eightieth General Assembly.
 36 32
 36 33
 36 34                                                             
 36 35                               MARGARET THOMSON
 37  1                               Chief Clerk of the House
 37  2 Approved                , 2004
 37  3
 37  4
 37  5                            
 37  6 THOMAS J. VILSACK
 37  7 Governor