Senate File 2424 - Enrolled
PAG LIN
1 1 SENATE FILE 2424
1 2
1 3 AN ACT
1 4 CONCERNING 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, INCLUDING IMPLEMENTATION AND TRANSITION PROVISIONS,
1 10 AND PROVIDING EFFECTIVE AND RETROACTIVE APPLICABILITY 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,
1 16 ACCIDENT, AND DISABILITY SYSTEM
1 17 Section 1. Section 97A.1, subsection 14, Code 2007, is
1 18 amended by striking the subsection.
1 19 Sec. 2. Section 97A.1, subsection 15, Code 2007, is
1 20 amended to read as follows:
1 21 15. "Pensions" shall mean annual payments for life derived
1 22 from the appropriations provided by the state of Iowa and from
1 23 contributions of the members which are deposited in the
1 24 pension accumulation retirement fund. All pensions shall be
1 25 paid in equal monthly installments.
1 26 Sec. 3. Section 97A.5, subsections 3 and 4, Code 2007, are
1 27 amended to read as follows:
1 28 3. COMPENSATION. The trustees shall serve as such without
1 29 compensation, but they shall be reimbursed from the expense
1 30 retirement fund for all necessary expenses which they may
1 31 incur through service on the board.
1 32 4. RULES. The board of trustees shall, from time to time,
1 33 establish such rules not inconsistent with this chapter, for
1 34 the administration of funds the system and the retirement fund
1 35 created by this chapter and as may be necessary or appropriate
2 1 for the transaction of its business.
2 2 Sec. 4. Section 97A.5, subsection 6, paragraph a, Code
2 3 2007, is amended to read as follows:
2 4 a. The department of public safety shall keep in
2 5 convenient form the data necessary for the actuarial valuation
2 6 of the various funds of the system and for checking the
2 7 expense of the system. The commissioner of public safety
2 8 shall keep a record of all the acts and proceedings of the
2 9 board, which records shall be open to public inspection. The
2 10 board of trustees shall biennially make a report to the
2 11 general assembly showing the fiscal transactions of the system
2 12 for the preceding biennium, the amount of the accumulated cash
2 13 and securities of the system, and the last balance sheet
2 14 showing the financial condition of the system by means of an
2 15 actuarial valuation of the assets and liabilities of the
2 16 system.
2 17 Sec. 5. Section 97A.5, subsections 8, 9, 11, and 12, Code
2 18 2007, are amended to read as follows:
2 19 8. MEDICAL BOARD. The board of trustees shall designate a
2 20 single medical provider network as the medical board to be
2 21 composed of three physicians who for the system. The medical
2 22 board shall arrange for and pass upon the all medical
2 23 examinations required under the provisions of this chapter and
2 24 shall report in writing to the board of trustees, its
2 25 conclusions and recommendations upon all matters duly referred
2 26 to it. For examinations required because of disability, a
2 27 physician from the medical board specializing in occupational
2 28 medicine, and a second physician specializing in an
2 29 appropriate field of medicine as determined by the
2 30 occupational medicine physician, shall pass upon the medical
2 31 examinations required for disability retirements and shall
2 32 report to the system in writing their conclusions and
2 33 recommendations upon all matters referred to the medical
2 34 board. Each report of a medical examination under section
2 35 97A.6, subsections 3 and 5, shall include the medical board's
3 1 findings in accordance with section 97A.6 as to the extent of
3 2 the member's physical impairment.
3 3 9. DUTIES OF ACTUARY. The actuary hired by the board of
3 4 trustees shall be the technical advisor of the board of
3 5 trustees on matters regarding the operation of the funds
3 6 retirement fund created by the provisions of this chapter and
3 7 shall perform such other duties as are required in connection
3 8 therewith.
3 9 11. ACTUARIAL INVESTIGATION. At least once in each
3 10 two=year period, the actuary hired by the board of trustees
3 11 shall make an actuarial investigation in the mortality,
3 12 service, and compensation experience of the members and
3 13 beneficiaries of the system, and the interest and other
3 14 earnings on the moneys and other assets of the system, and
3 15 shall make a valuation of the assets and liabilities of the
3 16 funds retirement fund of the system, and taking into account
3 17 the results of the investigation and valuation, the board of
3 18 trustees shall:
3 19 a. Adopt adopt for the system, upon recommendation of the
3 20 system's actuary, such actuarial methods and assumptions,
3 21 interest rate, and mortality and other tables as shall be
3 22 deemed necessary;
3 23 b. Certify the rates of contribution payable by the state
3 24 of Iowa in accordance with section 97A.8 to conduct the
3 25 actuarial valuation of the system.
3 26 12. ANNUAL ACTUARIAL VALUATION.
3 27 a. On the basis of the actuarial methods and assumptions,
3 28 rate of interest, and tables adopted by the board of trustees,
3 29 the actuary hired by the board of trustees shall make an
3 30 annual actuarial valuation of the assets and liabilities of
3 31 the funds of the system retirement fund created by this
3 32 chapter. As a result of the annual actuarial valuation, the
3 33 board of trustees shall certify the rates of contribution
3 34 payable by the state of Iowa in accordance with section 97A.8.
3 35 b. Effective with the fiscal year beginning July 1, 2008,
4 1 the annual actuarial valuation required to be conducted shall
4 2 include information as required by section 97D.5.
4 3 Sec. 6. Section 97A.5, subsection 13, paragraphs b, c, and
4 4 d, Code 2007, are amended to read as follows:
4 5 b. The funds retirement fund established in section 97A.8
4 6 shall be held in trust for the benefit of the members of the
4 7 system and the members' beneficiaries. No part of the corpus
4 8 or income of the funds retirement fund shall be used for, or
4 9 diverted to, purposes other than for the exclusive benefit of
4 10 the members or the members' beneficiaries or for expenses
4 11 incurred in the operation of the funds retirement fund. A
4 12 person shall not have any interest in, or right to, any part
4 13 of the corpus or income of the funds retirement fund except as
4 14 otherwise expressly provided.
4 15 c. Notwithstanding any provision of this chapter to the
4 16 contrary, in the event of a complete discontinuance of
4 17 contributions, for reasons other than achieving fully funded
4 18 status upon an actuarially determined basis, or upon
4 19 termination of the funds retirement fund established in
4 20 section 97A.8, a member shall be vested, to the extent then
4 21 funded, in the benefits which the member has accrued at the
4 22 date of the discontinuance or termination.
4 23 d. Benefits payable from the funds retirement fund
4 24 established in section 97A.8 to members and members'
4 25 beneficiaries shall not be increased due to forfeitures from
4 26 other members. Forfeitures shall be used as soon as possible
4 27 to reduce future contributions by the state to the pension
4 28 accumulation retirement fund, except that the rate shall not
4 29 be less than the minimum rate established in section 97A.8.
4 30 Sec. 7. Section 97A.5, subsection 14, Code 2007, is
4 31 amended to read as follows:
4 32 14. INVESTMENT CONTRACTS. The board of trustees may
4 33 execute contracts and agreements with investment advisors,
4 34 consultants, and investment management and benefit consultant
4 35 firms in the administration of the funds retirement fund
5 1 established in section 97A.8.
5 2 Sec. 8. Section 97A.6, subsection 7, Code 2007, is amended
5 3 by adding the following new paragraph:
5 4 NEW PARAGRAPH. d. Should a disability beneficiary under
5 5 age fifty=five be employed in a public safety occupation, the
5 6 disability beneficiary's retirement allowance shall cease.
5 7 Notwithstanding any provision of this chapter to the contrary,
5 8 if a disability beneficiary is employed in a public safety
5 9 occupation that would otherwise constitute membership service,
5 10 the disability beneficiary shall not become a member of the
5 11 system. For purposes of this paragraph, "public safety
5 12 occupation" means a peace officer, as defined in section
5 13 97A.1; a protection occupation, as defined in section 97B.49B;
5 14 a sheriff or deputy sheriff as defined in section 97B.49C; and
5 15 a police officer or fire fighter as defined in section 411.1,
5 16 who was not restored to active service as provided by this
5 17 subsection.
5 18 Sec. 9. Section 97A.6, subsection 11, Code 2007, is
5 19 amended to read as follows:
5 20 11. PENSIONS OFFSET BY COMPENSATION BENEFITS. Any amounts
5 21 which may be paid or payable by the state under the provisions
5 22 of any workers' compensation or similar law to a member or to
5 23 the dependents of a member on account of any disability or
5 24 death, shall be offset against and payable in lieu of any
5 25 benefits payable out of funds the retirement fund provided by
5 26 the state under the provisions of this chapter on account of
5 27 the same disability or death. In case the present value of
5 28 the total commuted benefits under said workers' compensation
5 29 or similar law is less than the pension reserve on present
5 30 value of the benefits otherwise payable from funds the
5 31 retirement fund provided by the state under this chapter, then
5 32 the present value of the commuted payments shall be deducted
5 33 from the pension reserve payable and such benefits as may be
5 34 provided by the pension reserve system so reduced shall be
5 35 payable under the provisions of this chapter.
6 1 Sec. 10. Section 97A.7, subsections 1, 2, and 3, Code
6 2 Supplement 2007, are amended to read as follows:
6 3 1. The board of trustees shall be the trustees of the
6 4 several funds retirement fund created by this chapter as
6 5 provided in section 97A.8 and shall have full power to invest
6 6 and reinvest such funds subject to the terms, conditions,
6 7 limitations, and restrictions imposed by subsection 2 of this
6 8 section and chapter 12F, and subject to like terms,
6 9 conditions, limitations, and restrictions said trustees shall
6 10 have full power to hold, purchase, sell, assign, transfer, or
6 11 dispose of any of the securities and investments in which any
6 12 of the funds created herein shall retirement fund which have
6 13 been invested, as well as of the proceeds of said investments
6 14 and any moneys belonging to said funds the retirement fund.
6 15 The board of trustees may authorize the treasurer of state to
6 16 exercise any of the duties of this section. When so
6 17 authorized the treasurer of state shall report any
6 18 transactions to the board of trustees at its next monthly
6 19 meeting.
6 20 2. The several funds retirement fund created by this
6 21 chapter may be invested in any investments authorized for the
6 22 Iowa public employees' retirement system in section 97B.7A.
6 23 3. The treasurer of the state shall be the custodian of
6 24 the several funds retirement fund. All payments from said
6 25 funds the retirement fund shall be made by the treasurer only
6 26 upon vouchers signed by two persons designated by the board of
6 27 trustees. A duly attested copy of the resolution of the board
6 28 of trustees designating such persons and bearing on its face
6 29 specimen signatures of such persons shall be filed with the
6 30 treasurer of state as the treasurer's authority for making
6 31 payments on such vouchers. No voucher shall be drawn unless
6 32 it shall previously have been allowed by resolution of the
6 33 board of trustees.
6 34 Sec. 11. Section 97A.8, Code 2007, is amended to read as
6 35 follows:
7 1 97A.8 METHOD OF FINANCING.
7 2 There is hereby created as a special fund, separate and
7 3 apart from all other public moneys or funds of this state, the
7 4 peace officers' retirement, accident, and disability system
7 5 retirement fund, hereafter called the "retirement fund". All
7 6 the assets of the system created and established by this
7 7 chapter shall be credited according to the purpose for which
7 8 they are held to one of three funds, namely, the pension
7 9 accumulation fund, the pension reserve fund, and the expense
7 10 to the retirement fund.
7 11 1. PENSION ACCUMULATION FUND. The pension accumulation
7 12 fund shall be the fund in which shall be accumulated all All
7 13 moneys for the payment of all pensions and other benefits
7 14 payable from contributions made by the state and from which
7 15 shall be paid the lump=sum death benefits for all members
7 16 payable from the said contributions shall be accumulated in
7 17 the retirement fund. The refunds and benefits for all members
7 18 and beneficiaries shall be payable from the retirement fund.
7 19 Contributions to and payments from the pension accumulation
7 20 retirement fund shall be as follows:
7 21 a. On account of each member there shall be paid annually
7 22 into the pension accumulation retirement fund by the state of
7 23 Iowa an amount equal to a certain percentage of the earnable
7 24 compensation of the member to be known as the "normal
7 25 contribution". The rate percent of such contribution shall be
7 26 fixed on the basis of the liabilities of the retirement system
7 27 as shown by annual actuarial valuations.
7 28 b. (1) On the basis of the actuarial methods and
7 29 assumptions, rate of interest, and of the mortality, interest,
7 30 and other tables adopted by the board of trustees, the board
7 31 of trustees, upon the advice of the actuary hired by the board
7 32 for that purpose, shall make each valuation required by this
7 33 chapter pursuant to the requirements of section 97A.5 and
7 34 shall immediately after making such valuation, determine the
7 35 "normal contribution rate". The normal contribution rate
8 1 shall be the rate percent of the earnable compensation of all
8 2 members obtained by deducting from the total liabilities of
8 3 the fund the sum of the amount of the funds in hand to the
8 4 credit of the fund and dividing the remainder by one percent
8 5 of the present value of the prospective future compensation of
8 6 all members as computed on the basis of the rate of interest
8 7 and of mortality and service tables adopted by the board of
8 8 trustees, all equal to the rate required by the system to
8 9 discharge its liabilities, stated as a percentage of the
8 10 earnable compensation of all members, and reduced by the
8 11 employee contribution made pursuant to rate provided in this
8 12 subsection. However, the normal rate of contribution shall
8 13 not be less than seventeen percent. The normal rate of
8 14 contribution shall be determined by the board of trustees
8 15 after each valuation. To assist in determining the normal
8 16 rate of contribution, the board of trustees may adopt a
8 17 smoothing method for valuing the assets of the system. The
8 18 smoothing method is designed to reduce changes in the normal
8 19 contribution rate which could result from fluctuations in the
8 20 market value of the assets of the system.
8 21 (2) Notwithstanding the provisions of subparagraph (1) to
8 22 the contrary, the normal contribution rate shall be as
8 23 follows:
8 24 (a) For the fiscal year beginning July 1, 2008, nineteen
8 25 percent.
8 26 (b) For the fiscal year beginning July 1, 2009, twenty=one
8 27 percent.
8 28 (c) For the fiscal year beginning July 1, 2010,
8 29 twenty=three percent.
8 30 (d) For the fiscal year beginning July 1, 2011,
8 31 twenty=five percent.
8 32 (e) For each fiscal year beginning on or after July 1,
8 33 2012, the lesser of twenty=seven percent or the normal
8 34 contribution rate as calculated pursuant to subparagraph (1).
8 35 c. The total amount payable in each year to the pension
9 1 accumulation retirement fund shall not be less than the rate
9 2 percent known as the normal contribution rate of the total
9 3 compensation earnable by all members during the year.
9 4 However, the aggregate payment by the state shall be
9 5 sufficient when combined with the amount in the retirement
9 6 fund to provide the pensions and other benefits payable out of
9 7 the retirement fund during the then current year.
9 8 d. All lump=sum death benefits on account of death in
9 9 active service payable from contributions of the state shall
9 10 be paid from the pension accumulation retirement fund.
9 11 e. Upon the retirement or death of a member an amount
9 12 equal to the pension reserve on any pension payable to the
9 13 member or on account of the member's death shall be
9 14 transferred from the pension accumulation fund to the pension
9 15 reserve fund.
9 16 f. e. Except as otherwise provided in paragraph "h" "g":
9 17 (1) An amount equal to three and one=tenth percent of each
9 18 member's compensation from the earnable compensation of the
9 19 member shall be paid to the pension accumulation retirement
9 20 fund for the fiscal year beginning July 1, 1989.
9 21 (2) An amount equal to four and one=tenth percent of each
9 22 member's compensation from the earnable compensation of the
9 23 member shall be paid to the pension accumulation retirement
9 24 fund for the fiscal year beginning July 1, 1990.
9 25 (3) An amount equal to five and one=tenth percent of each
9 26 member's compensation from the earnable compensation of the
9 27 member shall be paid to the pension accumulation retirement
9 28 fund for the fiscal year beginning July 1, 1991.
9 29 (4) An amount equal to six and one=tenth percent of each
9 30 member's compensation from the earnable compensation of the
9 31 member shall be paid to the pension accumulation retirement
9 32 fund for the fiscal year beginning July 1, 1992.
9 33 (5) An amount equal to seven and one=tenth percent of each
9 34 member's compensation from the earnable compensation of the
9 35 member shall be paid to the pension accumulation retirement
10 1 fund for the fiscal year beginning July 1, 1993.
10 2 (6) An amount equal to eight and one=tenth percent of each
10 3 member's compensation from the earnable compensation of the
10 4 member shall be paid to the pension accumulation retirement
10 5 fund for the fiscal period beginning July 1, 1994, through
10 6 December 31, 1994, and an amount equal to eight and
10 7 thirty=five hundredths percent of each member's compensation
10 8 from the earnable compensation of the member shall be paid to
10 9 the pension accumulation retirement fund for the fiscal period
10 10 beginning January 1, 1995, through June 30, 1995.
10 11 (7) An amount equal to nine and thirty=five hundredths
10 12 percent of each member's compensation from the earnable
10 13 compensation of the member shall be paid to the pension
10 14 accumulation retirement fund for the fiscal year beginning
10 15 July 1, 1995.
10 16 (8) Notwithstanding any other provision of this chapter,
10 17 beginning July 1, 1996, and each fiscal year thereafter, an
10 18 amount equal to the member's contribution rate times each
10 19 member's compensation shall be paid to the pension
10 20 accumulation retirement fund from the earnable compensation of
10 21 the member. For the purposes of this subparagraph, the
10 22 member's contribution rate shall be nine and thirty=five
10 23 hundredths percent. However, the system shall increase the
10 24 member's contribution rate as necessary to cover any increase
10 25 in cost to the system resulting from statutory changes which
10 26 are enacted by any session of the general assembly meeting
10 27 after January 1, 1995, if the increase cannot be absorbed
10 28 within the contribution rates otherwise established pursuant
10 29 to this paragraph, but subject to a maximum employee
10 30 contribution rate of eleven and three=tenths percent. After
10 31 the employee contribution reaches eleven and three=tenths
10 32 percent, sixty percent of the additional cost of such
10 33 statutory changes shall be paid by the employer under
10 34 paragraph "c" and forty percent of the additional cost shall
10 35 be paid by employees under this paragraph subparagraph (8).
11 1 g. f. The board of trustees shall certify to the director
11 2 of the department of administrative services and the director
11 3 of the department of administrative services shall cause to be
11 4 deducted from the earnable compensation of each member the
11 5 contribution required under this subsection and shall forward
11 6 the contributions to the board of trustees for recording and
11 7 for deposit in the pension accumulation retirement fund.
11 8 The deductions provided for under this subsection shall be
11 9 made notwithstanding that the minimum compensation provided by
11 10 law for any member is reduced. Every member is deemed to
11 11 consent to the deductions made under this section.
11 12 h. g. Notwithstanding the provisions of paragraph "f"
11 13 "e", the following transition percentages apply to members'
11 14 contributions as specified:
11 15 (1) For members who on July 1, 1990, have attained the age
11 16 of forty=nine years or more, an amount equal to nine and
11 17 one=tenth percent of each member's compensation from the
11 18 earnable compensation of the member shall be paid to the
11 19 pension accumulation retirement fund for the fiscal period
11 20 beginning July 1, 1990, through October 15, 1992, and
11 21 commencing October 16, 1992, and for each subsequent fiscal
11 22 period, the rates specified in paragraph "f" "e",
11 23 subparagraphs (4) through (8), shall apply.
11 24 (2) For members who on July 1, 1990, have attained the age
11 25 of forty=eight years but have not attained the age of
11 26 forty=nine years, an amount equal to eight and one=tenth
11 27 percent shall be paid for the fiscal year beginning July 1,
11 28 1990, and an amount equal to nine and one=tenth percent shall
11 29 be paid for the fiscal period beginning July 1, 1991, through
11 30 October 15, 1992, and commencing October 16, 1992, and for
11 31 each subsequent fiscal period, the rates specified in
11 32 paragraph "f" "e", subparagraphs (4) through (8), shall apply.
11 33 (3) For members who on July 1, 1990, have attained the age
11 34 of forty=seven years but have not attained the age of
11 35 forty=eight years, an amount equal to seven and one=tenth
12 1 percent shall be paid for the fiscal year beginning July 1,
12 2 1990, an amount equal to eight and one=tenth percent shall be
12 3 paid for the fiscal year beginning July 1, 1991, and an amount
12 4 equal to nine and one=tenth percent shall be paid for the
12 5 fiscal period beginning July 1, 1992, through October 15,
12 6 1992, and commencing October 16, 1992, and for each subsequent
12 7 fiscal period, the rates specified in paragraph "f" "e",
12 8 subparagraphs (4) through (8), shall apply.
12 9 (4) For members who on July 1, 1990, have attained the age
12 10 of forty=six years but have not attained the age of
12 11 forty=seven years, an amount equal to six and one=tenth
12 12 percent shall be paid for the fiscal year beginning July 1,
12 13 1990, an amount equal to seven and one=tenth percent shall be
12 14 paid for the fiscal year beginning July 1, 1991, an amount
12 15 equal to eight and one=tenth percent shall be paid for the
12 16 fiscal period beginning July 1, 1992, through October 15,
12 17 1992, and commencing October 16, 1992, and for each subsequent
12 18 fiscal period, the rates specified in paragraph "f" "e",
12 19 subparagraphs (4) through (8), shall apply.
12 20 (5) For members who on July 1, 1990, have attained the age
12 21 of forty=five years but have not attained the age of forty=six
12 22 years, an amount equal to five and one=tenth percent shall be
12 23 paid for the fiscal year beginning July 1, 1990, an amount
12 24 equal to six and one=tenth percent shall be paid for the
12 25 fiscal year beginning July 1, 1991, and an amount equal to
12 26 seven and one=tenth percent shall be paid for the fiscal
12 27 period beginning July 1, 1992, through October 15, 1992.
12 28 Commencing October 16, 1992, and for each subsequent fiscal
12 29 period, the rates specified in paragraph "f" "e",
12 30 subparagraphs (4) through (8), shall apply.
12 31 i. h. (1) Notwithstanding paragraph "g" "f" or other
12 32 provisions of this chapter, beginning January 1, 1995, for
12 33 federal income tax purposes, and beginning January 1, 1999,
12 34 for state income tax purposes, member contributions required
12 35 under paragraph "f" "e" or "h" "g" which are picked up by the
13 1 department shall be considered employer contributions for
13 2 federal and state income tax purposes, and the department
13 3 shall pick up the member contributions to be made under
13 4 paragraph "f" "e" or "h" "g" by its employees. The department
13 5 shall pick up these contributions by reducing the salary of
13 6 each of its employees covered by this chapter by the amount
13 7 which each employee is required to contribute under paragraph
13 8 "f" "e" or "h" "g" and shall certify the amount picked up in
13 9 lieu of the member contributions to the department of
13 10 administrative services. The department of administrative
13 11 services shall forward the amount of the contributions picked
13 12 up to the board of trustees for recording and deposit in the
13 13 pension accumulation retirement fund.
13 14 (2) Member contributions picked up by the department under
13 15 subparagraph (1) shall be treated as employer contributions
13 16 for federal and state income tax purposes only and for all
13 17 other purposes of this chapter shall be treated as employee
13 18 contributions and deemed part of the employee's earnable
13 19 compensation or salary.
13 20 2. PENSION RESERVE FUND. The pension reserve fund shall
13 21 be the fund in which shall be held the reserves on all
13 22 pensions granted to members or to their beneficiaries and from
13 23 which such pensions and benefits in lieu thereof shall be
13 24 paid. Should a beneficiary retired on account of disability
13 25 be restored to active service and again become a member of the
13 26 system, the member's pension reserve shall be transferred from
13 27 the pension reserve fund to the pension accumulation fund.
13 28 Should the pension of a disability beneficiary be reduced as a
13 29 result of an increase in the beneficiary's amount earned, the
13 30 amount of the annual reduction in the beneficiary's pension
13 31 shall be paid annually into the pension accumulation fund
13 32 during the period of such reduction.
13 33 3. 2. a. EXPENSE FUND. The expense fund shall be the
13 34 fund to which shall be credited all money provided by the
13 35 state of Iowa to pay the administration expenses of the system
14 1 and from which shall be paid all All the expenses necessary in
14 2 connection with the administration and operation of the system
14 3 shall be paid from the retirement fund. Biennially the board
14 4 of trustees shall estimate the amount of money necessary to be
14 5 paid into the expense fund during the ensuing biennium to
14 6 provide for the expense of operation of the system.
14 7 Investment management expenses shall be charged to the
14 8 investment income of the system and there is appropriated from
14 9 the system an amount required for the investment management
14 10 expenses. The board of trustees shall report the investment
14 11 management expenses for the fiscal year as a percent of the
14 12 market value of the system.
14 13 b. For purposes of this subsection, investment management
14 14 expenses are limited to the following:
14 15 a. (1) Fees for investment advisors, consultants, and
14 16 investment management and benefit consultant firms hired by
14 17 the board of trustees in administering this chapter.
14 18 b. (2) Fees and costs for safekeeping fund assets.
14 19 c. (3) Costs for performance and compliance monitoring,
14 20 and accounting for fund investments.
14 21 d. (4) Any other costs necessary to prudently invest or
14 22 protect the assets of the fund.
14 23 Sec. 12. Section 97A.11, Code 2007, is amended to read as
14 24 follows:
14 25 97A.11 CONTRIBUTIONS BY THE STATE.
14 26 On or before the first day of November in each year, the
14 27 board of trustees shall certify to the director of the
14 28 department of administrative services the amounts which will
14 29 become due and payable during the year next following to the
14 30 pension accumulation retirement fund and the expense fund.
14 31 The amounts so certified shall be paid by the director of the
14 32 department of administrative services out of the funds
14 33 appropriated for the Iowa department of public safety, to the
14 34 treasurer of state, the same to be credited to the system for
14 35 the ensuing year.
15 1 Sec. 13. Section 97A.12, Code 2007, is amended to read as
15 2 follows:
15 3 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR
15 4 ASSIGNMENT == EXCEPTIONS.
15 5 The right of any person to a pension, annuity, or
15 6 retirement allowance, to the return of contributions, the
15 7 pension, annuity, or retirement allowance itself, any optional
15 8 benefit or death benefit, any other right accrued or accruing
15 9 to any person under this chapter, and the moneys in the
15 10 various funds retirement fund created under this chapter, are
15 11 not subject to execution, garnishment, attachment, or any
15 12 other process whatsoever, and are unassignable except for the
15 13 purposes of enforcing child, spousal, or medical support
15 14 obligations or marital property orders, or as otherwise
15 15 specifically provided in this chapter. For the purposes of
15 16 enforcing child, spousal, or medical support obligations, the
15 17 garnishment or attachment of or the execution against
15 18 compensation due a person under this chapter shall not exceed
15 19 the amount specified in 15 U.S.C. } 1673(b).
15 20 Sec. 14. Section 97A.14, Code 2007, is amended to read as
15 21 follows:
15 22 97A.14 HOSPITALIZATION AND MEDICAL ATTENTION.
15 23 The board of trustees shall provide hospital, nursing, and
15 24 medical attention for the members in service when injured
15 25 while in the performance of their duties and shall continue to
15 26 provide hospital, nursing, and medical attention for injuries
15 27 or diseases incurred while in the performance of their duties
15 28 for the members receiving a retirement allowance under section
15 29 97A.6, subsection 6. The cost of hospital, nursing, and
15 30 medical attention shall be paid out of the expense retirement
15 31 fund. However, any amounts received by the injured person
15 32 under the workers' compensation law of the state, or from any
15 33 other source for such specific purposes, shall be deducted
15 34 from the amount paid by the board of trustees provisions of
15 35 this section.
16 1 Sec. 15. Section 97A.14A, subsection 5, Code 2007, is
16 2 amended to read as follows:
16 3 5. All funds recovered by the system under this section
16 4 shall be deposited in the pension accumulation retirement fund
16 5 created in section 97A.8.
16 6 Sec. 16. Section 97A.15, subsection 2, paragraph a, Code
16 7 2007, is amended to read as follows:
16 8 a. "Accumulated contributions" means the sum of all
16 9 amounts deducted from the compensation of a member and
16 10 credited to the member's individual account in the annuity
16 11 savings fund together with regular interest thereon as
16 12 provided in this subsection. Accumulated contributions do not
16 13 include any amount deducted from the compensation of a member
16 14 and credited to the pension accumulation retirement fund.
16 15 Sec. 17. Section 97A.15, subsection 8, Code 2007, is
16 16 amended to read as follows:
16 17 8. The actuary shall annually determine the amount
16 18 required in the annuity reserve fund. If the amount required
16 19 is less than the amount in the annuity reserve fund, the board
16 20 of trustees shall transfer the excess funds from the annuity
16 21 reserve fund to the pension accumulation retirement fund. If
16 22 the amount required is more than the amount in the annuity
16 23 reserve fund, the board of trustees shall transfer the amount
16 24 prescribed by the actuary to the annuity reserve fund from the
16 25 pension accumulation retirement fund.
16 26 DIVISION II
16 27 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
16 28 Sec. 18. Section 97B.1A, subsection 20, paragraph a, Code
16 29 2007, is amended to read as follows:
16 30 a. Service in the armed forces of the United States, if
16 31 the employee was employed by a covered employer immediately
16 32 prior to entry into the armed forces, and if the any of the
16 33 following requirements are met:
16 34 (1) The employee was released from service and returns to
16 35 covered employment with an employer within twelve months of
17 1 the date on which the employee has the right of release from
17 2 service or within a longer period as required by the
17 3 applicable laws of the United States.
17 4 (2) The employee, while serving on active duty in the
17 5 armed forces of the United States in an area designated by the
17 6 president of the United States or the United States Congress
17 7 as a combat zone or as a qualified hazardous duty area, or
17 8 deployed outside the United States away from the individual's
17 9 permanent duty station while participating in an operation
17 10 designated by the United States secretary of defense as a
17 11 contingency operation as defined in 10 U.S.C. } 101(a)(13), or
17 12 which became such a contingency operation by the operation of
17 13 law, dies, or suffers an injury or acquires a disease
17 14 resulting in death, so long as the death from the injury or
17 15 disease occurs within a two=year period from the date the
17 16 employee suffered the active duty injury or disease and the
17 17 active duty injury or disease prevented the employee from
17 18 returning to covered employment as provided in subparagraph
17 19 (1).
17 20 Sec. 19. Section 97B.1A, subsection 26, paragraph a,
17 21 subparagraph (2), subparagraph subdivision (i), Code 2007, is
17 22 amended to read as follows:
17 23 (i) Payments for allowances made to an employee that are
17 24 not included in an employee's federal taxable income except
17 25 for those allowances included as wages for a member of the
17 26 general assembly.
17 27 Sec. 20. Section 97B.1A, subsection 26, paragraph a,
17 28 subparagraph (2), Code 2007, is amended by adding the
17 29 following new subparagraph subdivision:
17 30 NEW SUBPARAGRAPH SUBDIVISION. (n) Bonuses of any type,
17 31 whether paid in a lump sum or in installments.
17 32 Sec. 21. Section 97B.4, subsection 2, Code Supplement
17 33 2007, is amended by adding the following new paragraph:
17 34 NEW PARAGRAPH. d. In administering this chapter, the
17 35 system shall not be a participating agency for purposes of
18 1 chapter 8A, subchapter II.
18 2 Sec. 22. Section 97B.4, subsection 4, paragraph d, Code
18 3 Supplement 2007, is amended to read as follows:
18 4 d. ANNUAL VALUATION OF ASSETS. The system shall cause an
18 5 annual actuarial valuation to be made of the assets and
18 6 liabilities of the retirement system and shall prepare an
18 7 annual statement of the amounts to be contributed under this
18 8 chapter, and shall publish annually such valuation of the
18 9 assets and liabilities and the statement of receipts and
18 10 disbursements of the retirement system. Based upon the
18 11 actuarial methods and assumptions adopted by the board for the
18 12 annual actuarial valuation, the system shall certify to the
18 13 governor the contribution rates determined thereby as the
18 14 rates necessary and sufficient for members and employers to
18 15 fully fund the benefits and retirement allowances being
18 16 credited. Effective with the fiscal year beginning July 1,
18 17 2008, the annual actuarial valuation required by this
18 18 paragraph shall include information as required by section
18 19 97D.5 for each membership group which separately determines
18 20 contribution rates under this chapter.
18 21 Sec. 23. Section 97B.7, subsection 3, paragraph d, Code
18 22 2007, is amended to read as follows:
18 23 d. To be used to pay for investment management expenses
18 24 incurred in the management of the retirement fund. Expenses
18 25 incurred pursuant to this paragraph shall be charged to the
18 26 investment income of the retirement fund. However, the amount
18 27 appropriated for a fiscal year under this paragraph shall not
18 28 exceed four=tenths of one percent of the market value of the
18 29 retirement fund.
18 30 Sec. 24. Section 97B.9, subsections 1 and 2, Code 2007,
18 31 are amended to read as follows:
18 32 1. An employer shall be charged the greater of ten twenty
18 33 dollars per occurrence or interest at the combined interest
18 34 and dividend rate required under section 97B.70 for the
18 35 applicable calendar year for contributions unpaid on the date
19 1 on which they are due and payable as prescribed by the system.
19 2 The system may adopt rules prescribing circumstances for which
19 3 the interest or charge shall not accrue with respect to
19 4 contributions required. Interest or charges collected
19 5 pursuant to this section shall be paid into the Iowa public
19 6 employees' retirement fund.
19 7 2. If within thirty days after due notice the employer
19 8 defaults in payment of contributions or interest thereon, the
19 9 amount due shall may be collected by civil action in the name
19 10 of the system, and the employer adjudged in default shall pay
19 11 the costs of such action. Civil actions brought under this
19 12 section to collect contributions or interest thereon shall be
19 13 heard by the court at the earliest possible date and shall be
19 14 entitled to preference upon the calendar of the court over all
19 15 other civil actions.
19 16 Sec. 25. Section 97B.10, subsection 3, Code 2007, is
19 17 amended to read as follows:
19 18 3. Except as provided in this subsection, interest
19 19 Interest shall not be paid on credits issued pursuant to this
19 20 section. However, if a credit for contributions paid prior to
19 21 an individual's decision to elect out of coverage pursuant to
19 22 section 97B.42A is issued, accumulated interest and interest
19 23 on dividends as provided in section 97B.70 shall apply. In
19 24 addition, the system may, at any time, apply accumulated
19 25 interest and interest dividends as provided in section 97B.70
19 26 on any credits issued under this section if the system finds
19 27 that the crediting of interest is just and equitable.
19 28 Sec. 26. Section 97B.11, Code 2007, is amended to read as
19 29 follows:
19 30 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.
19 31 1. Each employer shall deduct from the wages of each
19 32 member of the retirement system a contribution in the amount
19 33 of the applicable employee percentage of the covered wages
19 34 paid by the employer and such additional amount if otherwise
19 35 required by law, until the member's termination from
20 1 employment. The contributions of the employer shall be in the
20 2 amount of the applicable employer percentage of the covered
20 3 wages of the member and such additional amount if otherwise
20 4 required by law.
20 5 2. For Prior to July 1, 2011, for purposes of this
20 6 section, unless the context otherwise requires:
20 7 a. "Applicable employee percentage" means the percentage
20 8 rate equal to three and seven=tenths percent plus forty
20 9 percent of the total additional percentage.
20 10 b. "Applicable employer percentage" means the percentage
20 11 rate equal to five and seventy=five hundredths percent plus
20 12 sixty percent of the total additional percentage.
20 13 c. "Total additional percentage" means as follows:
20 14 (1) For, for the fiscal period beginning July 1, 2007,
20 15 through June 30, 2011, the total additional percentage for a
20 16 fiscal year shall be the total additional percentage for the
20 17 prior fiscal year plus, only if the total comparison
20 18 percentage is greater than the total of the applicable
20 19 employee percentage and the applicable employer percentage for
20 20 the prior fiscal year, one=half percentage point.
20 21 (2) For each fiscal year beginning on or after July 1,
20 22 2011, the total additional percentage shall be the total
20 23 additional percentage for the prior fiscal year.
20 24 d. "Total comparison percentage" means the percentage rate
20 25 that the system determines, based upon the most recent
20 26 actuarial valuation of the retirement system, would be
20 27 sufficient to amortize the unfunded actuarial liability of the
20 28 retirement system in ten years.
20 29 3. On and after July 1, 2011, for purposes of this
20 30 section, unless the context otherwise requires:
20 31 a. For members in regular service:
20 32 (1) "Applicable employee percentage" means the percentage
20 33 rate equal to forty percent of the required contribution rate
20 34 for members in regular service.
20 35 (2) "Applicable employer percentage" means the percentage
21 1 rate equal to sixty percent of the required contribution rate
21 2 for members in regular service.
21 3 b. For members in special service in a protection
21 4 occupation as described in section 97B.49B:
21 5 (1) "Applicable employee percentage" means the percentage
21 6 rate equal to forty percent of the required contribution rate
21 7 for members described in section 97B.49B.
21 8 (2) "Applicable employer percentage" means the percentage
21 9 rate equal to sixty percent of the required contribution rate
21 10 for members described in section 97B.49B.
21 11 c. For members in special service as a county sheriff or
21 12 deputy sheriff as described in section 97B.49C:
21 13 (1) "Applicable employee percentage" means the percentage
21 14 rate equal to fifty percent of the required contribution rate
21 15 for members described in section 97B.49C.
21 16 (2) "Applicable employer percentage" means the percentage
21 17 rate equal to fifty percent of the required contribution rate
21 18 for members described in section 97B.49C.
21 19 d. "Required contribution rate" means that percentage of
21 20 the covered wages of members in regular service, members
21 21 described in section 97B.49B, and members described in section
21 22 97B.49C, that the system shall, for each fiscal year,
21 23 separately set for members in each membership category as
21 24 provided in this paragraph. The required contribution rate
21 25 for a membership category shall be the contribution rate the
21 26 system actuarially determines, based upon the most recent
21 27 actuarial valuation of the system and using the actuarial
21 28 methods, assumptions, and funding policy approved by the
21 29 investment board, is the rate required by the system to
21 30 discharge its liabilities as a percentage of the covered wages
21 31 of members in that membership category. However, the required
21 32 contribution rate set by the system for a fiscal year shall
21 33 not vary by more than one=half percentage point from the
21 34 required contribution rate for the prior fiscal year.
21 35 Sec. 27. Section 97B.14, Code 2007, is amended to read as
22 1 follows:
22 2 97B.14 CONTRIBUTIONS FORWARDED.
22 3 Contributions deducted from the wages of the member under
22 4 section 97B.11 prior to January 1, 1995, member contributions
22 5 picked up by the employer under section 97B.11A beginning
22 6 January 1, 1995, and the employer's contribution shall be
22 7 forwarded to the system for recording and deposited with the
22 8 treasurer of the state to the credit of the Iowa public
22 9 employees' retirement fund. Contributions shall be remitted
22 10 monthly, if total contributions by both employee and employer
22 11 amount to one hundred dollars or more each month, and shall be
22 12 otherwise paid in such manner, at such times, and under such
22 13 conditions, either by copies of payrolls or other methods
22 14 necessary or helpful in securing proper identification of the
22 15 member, as may be prescribed by the system.
22 16 Sec. 28. Section 97B.33, Code 2007, is amended to read as
22 17 follows:
22 18 97B.33 CERTIFICATION TO DIRECTOR PAYMENT TO INDIVIDUALS.
22 19 Upon final decision of the system, or upon final judgment
22 20 of any court of competent jurisdiction, that any person is
22 21 entitled to any payment or payments under this chapter, the
22 22 system shall certify to the director of the department of
22 23 administrative services the name and address of the person so
22 24 entitled to receive such payment or payments, the amount of
22 25 such payment or payments, and the time at which such payment
22 26 or payments should be made, and the system, through the
22 27 director of the department of administrative services, shall
22 28 make payment in accordance with the certification of the
22 29 system to the person, provided that where judicial review of
22 30 the system system's decision is or may be sought in accordance
22 31 with the terms of the Iowa administrative procedure Act,
22 32 chapter 17A, certification of payment may be withheld pending
22 33 such review. The director of the department of administrative
22 34 services shall not be held personally liable for any payment
22 35 or payments made in accordance with a certification by the
23 1 system.
23 2 Sec. 29. Section 97B.34A, subsections 1 and 2, Code 2007,
23 3 are amended to read as follows:
23 4 1. If the total sum to be paid to the minor is less than
23 5 ten the greater of twenty=five thousand dollars or the maximum
23 6 amount permitted under section 565B.7, subsection 3, the funds
23 7 may be paid to an adult as custodian for the minor. The
23 8 custodian must complete the proper forms as determined by the
23 9 system.
23 10 2. If the total sum to be paid to the minor is equal to or
23 11 more than ten thousand dollars the amount authorized in
23 12 subsection 1, the funds must be paid to a court=established
23 13 conservator. The system shall not make payment until the
23 14 conservatorship has been established and the system has
23 15 received the appropriate documentation.
23 16 Sec. 30. Section 97B.38, Code 2007, is amended to read as
23 17 follows:
23 18 97B.38 FEES FOR SERVICES.
23 19 The system may, by rule, prescribe reasonable fees which
23 20 may be charged for production costs incurred, including staff
23 21 time and materials, associated with performing to perform its
23 22 duties under this chapter for active, inactive, and retired
23 23 members, beneficiaries, and the general public, where such
23 24 production costs are more than de minimis, as determined by
23 25 the system.
23 26 Sec. 31. Section 97B.49B, subsection 1, paragraph e, Code
23 27 2007, is amended by adding the following new subparagraphs:
23 28 NEW SUBPARAGRAPH. (9) A jailer or detention officer who
23 29 performs duties as a jailer, including but not limited to the
23 30 transportation of inmates, who is certified as having
23 31 completed jailer training pursuant to chapter 80B, and who is
23 32 employed by a county as a jailer.
23 33 NEW SUBPARAGRAPH. (10) An employee covered by the merit
23 34 system as provided in chapter 8A, subchapter IV, whose primary
23 35 duty is providing security at Iowa national guard
24 1 installations and facilities and who carries or is licensed to
24 2 carry a firearm while performing those duties.
24 3 NEW SUBPARAGRAPH. (11) An emergency medical care provider
24 4 who provides emergency medical services, as defined in section
24 5 147A.1, and who is not a member of the retirement systems
24 6 established in chapter 410 or 411.
24 7 NEW SUBPARAGRAPH. (12) An investigator employed by a
24 8 county attorney's office who is a certified law enforcement
24 9 officer and who is deputized as an investigator for the county
24 10 attorney's office by the sheriff of the applicable county.
24 11 Sec. 32. Section 97B.49B, subsection 3, paragraph a, Code
24 12 2007, is amended by striking the paragraph.
24 13 Sec. 33. Section 97B.49C, subsection 3, paragraph a, Code
24 14 2007, is amended by striking the paragraph.
24 15 Sec. 34. Section 97B.49F, subsection 1, paragraph b,
24 16 subparagraph (2), subparagraph subdivision (b), Code 2007, is
24 17 amended to read as follows:
24 18 (b) The percentage representing the percentage amount the
24 19 actuary has certified, in the annual actuarial valuation of
24 20 the retirement system as of June 30 of the year in which the
24 21 dividend is to be paid, that the fund can absorb without
24 22 requiring an increase in the employer and employee
24 23 contributions to the fund. The actuary's certification of
24 24 such percentage amount shall be based on a comparison of the
24 25 actuarially required contribution rate for the fiscal year of
24 26 the dividend adjustment to the statutory contribution rate for
24 27 that same fiscal year. If the actuarially required
24 28 contribution rate exceeds the statutory contribution rate for
24 29 that same fiscal year, the percentage amount shall be zero.
24 30 Sec. 35. Section 97B.49H, subsection 3, Code 2007, is
24 31 amended to read as follows:
24 32 3. The system shall annually determine the amount to be
24 33 credited to the supplemental accounts of active members. The
24 34 total amount credited to the supplemental accounts of all
24 35 active members shall not exceed the amount that the system
25 1 determines, in consultation with the system's actuary, can be
25 2 absorbed without significantly impacting the funded status of
25 3 leaves the system fully funded following the crediting of the
25 4 total amount to the supplemental accounts. The amount to be
25 5 credited shall not be greater than the amount calculated by
25 6 multiplying the member's covered wages for the applicable wage
25 7 reporting period by the supplemental rate. For purposes of
25 8 this subsection, the supplemental rate is the difference, if
25 9 positive, between the combined employee and employer statutory
25 10 contribution rates in effect under section 97B.11 and the
25 11 normal cost rate of the retirement system as determined by the
25 12 system's actuary in the most recent annual actuarial valuation
25 13 of the retirement system. The credits shall be made at least
25 14 quarterly to each member's account at the time that covered
25 15 wages are reported for each wage reporting period during the
25 16 calendar year following a determination that the retirement
25 17 system does not have an unfunded accrued liability will remain
25 18 fully funded following the crediting of the total amount to
25 19 the supplemental accounts. The normal cost rate, calculated
25 20 according to the actuarial cost method used, is the percent of
25 21 pay allocated to each year of service that is necessary to
25 22 fund projected benefits over all members' service with the
25 23 retirement system.
25 24 Sec. 36. Section 97B.50, subsection 2, Code 2007, is
25 25 amended by adding the following new paragraph:
25 26 NEW PARAGRAPH. d. For a vested member who retires from
25 27 the retirement system due to disability on or after July 1,
25 28 2009, and commences receiving disability benefits pursuant to
25 29 the federal Railroad Retirement Act, 45 U.S.C. } 231 et seq.,
25 30 or the federal Social Security Act, 42 U.S.C. } 423 et seq.,
25 31 the system may require the vested member to certify on an
25 32 annual basis continued eligibility for disability payments
25 33 under the federal Railroad Retirement Act or the federal
25 34 Social Security Act. If the vested member is under the age at
25 35 which disability benefits are converted under the federal
26 1 Social Security Act or the federal Railroad Retirement Act to
26 2 retirement benefits and is no longer eligible for disability
26 3 payments under either the federal Railroad Retirement Act or
26 4 the federal Social Security Act, the vested member shall no
26 5 longer be eligible to receive retirement benefits as provided
26 6 by this subsection. If the system has paid retirement
26 7 benefits to the member between the month the member was no
26 8 longer eligible for payment pursuant to the federal Railroad
26 9 Retirement Act or the federal Social Security Act and the
26 10 month the system terminated retirement benefits under this
26 11 paragraph, the member shall return all retirement benefits
26 12 paid by the system following the termination of such federal
26 13 disability benefits, plus interest. The system shall adopt
26 14 rules pursuant to chapter 17A to implement this paragraph.
26 15 Sec. 37. Section 97B.50A, subsection 12, Code 2007, is
26 16 amended to read as follows:
26 17 12. CONTRIBUTIONS. The expenses incurred in the
26 18 administration of this section by the system shall be paid
26 19 through contributions as determined pursuant to section
26 20 97B.49B, subsection 3, or section 97B.49C, subsection 3, as
26 21 applicable 97B.11.
26 22 Sec. 38. Section 97B.52, subsection 1, paragraph a,
26 23 unnumbered paragraphs 1 and 3, Code 2007, are amended to read
26 24 as follows:
26 25 A lump sum payment equal to the accumulated contributions
26 26 of the member at the date of death plus the product of an
26 27 amount equal to the highest year of covered wages of the
26 28 deceased member and the number of years of membership service
26 29 divided by the applicable denominator. However, a lump sum
26 30 payment made to a beneficiary under this paragraph due to the
26 31 death of a member shall not be less than the amount that would
26 32 have been payable on the death of the member on June 30, 1984,
26 33 under this paragraph as it appeared in the 1983 Code.
26 34 Effective July 1, 1978, a method of payment under this
26 35 paragraph filed with the system by a member does not apply.
27 1 Sec. 39. Section 97B.53B, Code 2007, is amended to read as
27 2 follows:
27 3 97B.53B ROLLOVERS OF MEMBERS' ACCOUNTS.
27 4 1. As used in this section, unless the context otherwise
27 5 requires, and to the extent permitted by the internal revenue
27 6 service:
27 7 a. "Direct rollover" means a payment by the system to the
27 8 eligible retirement plan specified by the member or the
27 9 member's surviving spouse an eligible person.
27 10 b. "Eligible person" means any of the following:
27 11 (1) The member.
27 12 (2) The member's surviving spouse.
27 13 (3) The member's spouse or former spouse as an alternate
27 14 payee under a qualified domestic relations order.
27 15 (4) Effective January 1, 2007, the member's nonspouse
27 16 beneficiaries who are designated beneficiaries as defined by
27 17 section 401(a)(9)(E) of the federal Internal Revenue Code, as
27 18 authorized under section 829 of the federal Pension Protection
27 19 Act of 2006.
27 20 c. "Eligible retirement plan" means either, for an
27 21 eligible person, any of the following retirement plans that
27 22 accepts can accept an eligible rollover distribution from a
27 23 member or a member's surviving spouse that eligible person:
27 24 (1) An individual retirement account in accordance with
27 25 section 408(a) of the federal Internal Revenue Code.
27 26 (2) An individual retirement annuity in accordance with
27 27 section 408(b) of the federal Internal Revenue Code.
27 28 (3) In addition, an "eligible retirement plan" includes an
27 29 An annuity plan in accordance with section 403(a) of the
27 30 federal Internal Revenue Code, or a qualified trust in
27 31 accordance with section 401(a) of the federal Internal Revenue
27 32 Code, that accepts an eligible rollover distribution from a
27 33 member.
27 34 (4) Effective January 1, 2002, the term "eligible
27 35 retirement plan" also includes an annuity contract described
28 1 in section 403(b) of the federal Internal Revenue Code, and an
28 2 eligible plan under section 457(b) of the federal Internal
28 3 Revenue Code which is maintained by a state, political
28 4 subdivision of a state, or any agency or instrumentality of a
28 5 state or political subdivision of a state that chooses to
28 6 separately account for amounts transferred into such eligible
28 7 retirement plan from the system.
28 8 (5) Effective January 1, 2008, a Roth individual
28 9 retirement account or a Roth individual retirement annuity
28 10 established under section 408A of the Internal Revenue Code.
28 11 c. d. (1) "Eligible rollover distribution" includes any
28 12 of the following:
28 13 (a) All or any portion of a member's account and
28 14 supplemental account.
28 15 (b) Effective January 1, 2002, after=tax employee
28 16 contributions, if the plan to which such amounts are to be
28 17 transferred is an individual retirement account described in
28 18 federal Internal Revenue Code section 408(a) or 408(b), or is
28 19 a qualified defined contribution plan described in federal
28 20 Internal Revenue Code section 401(a) or 403(a), and such plan
28 21 agrees to separately account for the after=tax amount so
28 22 transferred.
28 23 (c) A distribution made on behalf of a surviving spouse
28 24 and to an alternate payee, who is a spouse or former spouse,
28 25 under a qualified domestic relations order. Effective January
28 26 1, 2007, after=tax employee contributions to a qualified
28 27 defined benefit plan described in federal Internal Revenue
28 28 Code section 401(a) or 403(a), or a tax=sheltered annuity plan
28 29 described in federal Internal Revenue Code section 403(b), and
28 30 such plan agrees to separately account for the after=tax
28 31 amount so transferred.
28 32 (2) An eligible rollover distribution does not include any
28 33 of the following:
28 34 (a) A distribution that is one of a series of
28 35 substantially equal periodic payments, which occur annually or
29 1 more frequently, made for the life or life expectancy of the
29 2 distributee or the joint lives or joint life expectancies of
29 3 the distributee and the distributee's designated beneficiary,
29 4 or made for a specified period of ten years or more.
29 5 (b) A distribution to the extent that the distribution is
29 6 required pursuant to section 401(a)(9) of the federal Internal
29 7 Revenue Code.
29 8 (c) Prior to January 1, 2002, the portion of any
29 9 distribution that is not includible in the gross income of the
29 10 distributee, determined without regard to the exclusion for
29 11 net unrealized appreciation with respect to employer
29 12 securities.
29 13 2. Effective January 1, 1993, a member or a member's
29 14 surviving spouse An eligible person may elect, at the time and
29 15 in the manner prescribed in rules adopted by the system and in
29 16 rules of the receiving retirement plan, to have the system pay
29 17 all or a portion of an eligible rollover distribution directly
29 18 to an eligible retirement plan, specified by the member or the
29 19 member's surviving spouse, in a direct rollover. However,
29 20 effective January 1, 2007, if the eligible person is a
29 21 nonspouse beneficiary as described in subsection 1, paragraph
29 22 "b", subparagraph (4), the nonspouse beneficiary may only have
29 23 a direct rollover of the distribution to an individual
29 24 retirement account or annuity as described in subsection 1,
29 25 paragraph "c", subparagraphs (1), (2), and (5), established
29 26 for the purpose of receiving the distribution on behalf of the
29 27 nonspouse beneficiary, and such individual retirement account
29 28 or annuity will be treated as an inherited individual
29 29 retirement account or annuity pursuant to section 829 of the
29 30 federal Pension Protection Act of 2006.
29 31 Sec. 40. Section 97B.65, Code 2007, is amended to read as
29 32 follows:
29 33 97B.65 REVISION RIGHTS RESERVED == LIMITATION ON INCREASE
29 34 OF BENEFITS == RATES OF CONTRIBUTION.
29 35 1. The right is reserved to the general assembly to alter,
30 1 amend, or repeal any provision of this chapter or any
30 2 application thereof to any person, provided, however, that to
30 3 the extent of the funds in the retirement system the amount of
30 4 benefits which at the time of any such alteration, amendment,
30 5 or repeal shall have accrued to any member of the retirement
30 6 system shall not be repudiated, provided further, however,
30 7 that the amount of benefits accrued on account of prior
30 8 service shall be adjusted to the extent of any unfunded
30 9 accrued liability then outstanding.
30 10 2. An increase in the benefits or retirement allowances
30 11 provided under this chapter shall not be enacted until after
30 12 the system's actuary determines that the system is fully
30 13 funded and will continue to be fully funded immediately
30 14 following enactment of the increase and the increase can be
30 15 absorbed within the contribution rates otherwise established
30 16 for the membership group authorized to receive the increase.
30 17 However, an increase in the benefits or retirement allowances
30 18 provided under this chapter may be enacted if the statutory
30 19 change providing for the increase is accompanied by a change
30 20 in the employer and employee contribution rates an adjustment
30 21 in the required contribution rate of the membership group
30 22 affected that is necessary to support such increase as
30 23 determined by the system's actuary.
30 24 Sec. 41. Section 97B.80C, subsection 1, paragraph a, Code
30 25 2007, is amended to read as follows:
30 26 a. "Nonqualified service" means service that is not
30 27 qualified service and includes, but is not limited to, any of
30 28 the following:
30 29 (1) Full=time volunteer public service in the federal
30 30 peace corps program. Service that is not qualified service.
30 31 (2) Public employment comparable to employment covered
30 32 under this chapter in a qualified Canadian governmental entity
30 33 that is an elementary school, secondary school, college, or
30 34 university that is organized, administered, and primarily
30 35 supported by the provincial, territorial, or federal
31 1 governments of Canada, or any combination of the same. Any
31 2 period of time for which there was no performance of services.
31 3 (3) Service as described in subsection 1, paragraph "c",
31 4 subparagraph (2).
31 5 Sec. 42. Section 97B.80C, subsection 2, Code 2007, is
31 6 amended to read as follows:
31 7 2. a. A vested or retired member may make contributions
31 8 to the retirement system to purchase up to the maximum amount
31 9 of permissive service credit for qualified service as
31 10 determined by the system, pursuant to Internal Revenue Code
31 11 section 415(n), and the requirements of this section, and the
31 12 system's administrative rules.
31 13 b. A vested or retired member of the retirement system who
31 14 has five or more full calendar years of covered wages may make
31 15 contributions to the retirement system to purchase up to five
31 16 years a maximum of twenty quarters of permissive service
31 17 credit for nonqualified service as determined by the system,
31 18 pursuant to Internal Revenue Code section 415(n), and the
31 19 requirements of this section, and the system's administrative
31 20 rules. A vested or retired member must have at least twenty
31 21 quarters of covered wages in order to purchase permissive
31 22 service credit for nonqualified service.
31 23 c. A vested or retired member may convert regular member
31 24 service credit to special service credit by payment of the
31 25 amount actuarially determined as necessary to fund the
31 26 resulting increase in the member's accrued benefit. The
31 27 conversion shall be treated as a purchase of qualified service
31 28 credit subject to the requirements of paragraph "a" if the
31 29 service credit to be converted was or would have been for
31 30 qualified service. The conversion shall be treated as a
31 31 purchase of nonqualified service credit subject to the
31 32 requirements of paragraph "b" if the service credit to be
31 33 converted was purchased as nonqualified service credit.
31 34 Sec. 43. Section 97B.80C, subsection 3, Code 2007, is
31 35 amended by adding the following new paragraph:
32 1 NEW PARAGRAPH. cc. For a member making contributions for
32 2 a purchase of permissive service credit for qualified service
32 3 as described in subsection 1, paragraph "c", subparagraph (1),
32 4 subparagraph subdivision (h), in which, prior to July 1, 1998,
32 5 the member received a refund of the member's accumulated
32 6 contributions and subsequently returned to covered employment
32 7 as a full=time employee for whom coverage under this chapter
32 8 was mandatory the member shall receive a credit against the
32 9 actuarial cost of the service purchase equal to the amount of
32 10 the member's employer's accumulated contributions which were
32 11 not paid to the member as a refund pursuant to section 97B.53
32 12 plus interest as calculated pursuant to section 97B.70.
32 13 Sec. 44. Section 97B.82, subsection 2, paragraph b,
32 14 subparagraph (2), subparagraph subdivision (c), Code 2007, is
32 15 amended to read as follows:
32 16 (c) The For rollover service purchases prior to January 1,
32 17 2007, the portion of any distribution that is not includible
32 18 in the gross income of the distributee, determined without
32 19 regard to the exclusion for net unrealized appreciation with
32 20 respect to employer securities.
32 21 For rollover service purchases on or after January 1, 2007,
32 22 the portion of any distribution that is not includible in the
32 23 gross income of the distributee, determined without regard to
32 24 the exclusion for net unrealized appreciation with respect to
32 25 employer securities, shall be treated as an eligible rollover
32 26 distribution only when such portion is received from a
32 27 qualified plan under section 401(a) or 403(a) of the federal
32 28 Internal Revenue Code.
32 29 Sec. 45. Section 97B.82, subsection 3, Code 2007, is
32 30 amended to read as follows:
32 31 3. A member may purchase any service credit as authorized
32 32 by this section, to the extent permitted by the internal
32 33 revenue service, by means of a direct transfer, excluding of
32 34 pretax amounts, and effective January 1, 2007, any after=tax
32 35 contributions, from an annuity contract qualified under
33 1 federal Internal Revenue Code section 403(b), or an eligible
33 2 plan described in federal Internal Revenue Code section
33 3 457(b), maintained by a state, political subdivision of a
33 4 state, or any agency or instrumentality of a state or
33 5 political subdivision of a state. A direct transfer is a
33 6 trustee=to=trustee transfer to the retirement system of
33 7 contributions made to annuity contracts qualified under
33 8 federal Internal Revenue Code section 403(b) and eligible
33 9 governmental plans qualified under federal Internal Revenue
33 10 Code section 457(b) for purposes of purchasing service credit
33 11 in the retirement system.
33 12 Sec. 46. Section 97B.73B, Code 2007, is repealed.
33 13 Sec. 47. TRANSITION PROVISION == REQUIRED CONTRIBUTION
33 14 RATE FOR FISCAL YEAR 2010=2011. For purposes of establishing
33 15 the required contribution rate for the fiscal year beginning
33 16 July 1, 2011, as provided in section 97B.11, as amended in
33 17 this Act, the required contribution rate for the fiscal year
33 18 beginning July 1, 2010, shall be, for members in regular
33 19 service, members described in section 97B.49B, and members
33 20 described in section 97B.49C, the total contribution
33 21 percentage rate paid by members and employers of that
33 22 membership group for the fiscal year beginning July 1, 2010.
33 23 Sec. 48. IMPLEMENTATION PROVISION. Notwithstanding any
33 24 provision of section 97B.65 to the contrary, the provisions of
33 25 this division of this Act shall be enacted and implemented by
33 26 the Iowa public employees' retirement system upon the
33 27 effective dates provided for the provisions of this division
33 28 of this Act.
33 29 Sec. 49. EFFECTIVE DATES == RETROACTIVE APPLICABILITY.
33 30 1. The sections of this Act amending section 97B.49B,
33 31 subsection 3, section 97B.49C, subsection 3, section 97B.50A,
33 32 subsection 12, and section 97B.65 take effect July 1, 2011.
33 33 2. The section of this Act amending section 97B.53B, being
33 34 deemed of immediate importance, takes effect upon enactment,
33 35 and, except as otherwise stated, is retroactively applicable
34 1 to January 1, 2007, and is applicable on and after that date.
34 2 3. The sections of this Act amending section 97B.82, being
34 3 deemed of immediate importance, take effect upon enactment,
34 4 and are retroactively applicable to January 1, 2007, and are
34 5 applicable on and after that date.
34 6 4. The section of this Act enacting section 97B.80C,
34 7 subsection 3, paragraph cc, takes effect January 1, 2009.
34 8 DIVISION III
34 9 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
34 10 Sec. 50. Section 411.5, subsections 10 and 11, Code 2007,
34 11 are amended to read as follows:
34 12 10. ACTUARIAL INVESTIGATION == TABLES == RATES. At least
34 13 once in each five=year period, the actuary shall make an
34 14 actuarial investigation into the mortality, service, and
34 15 compensation experience of the members and beneficiaries of
34 16 the retirement system, and the interest and other earnings on
34 17 the moneys and other assets of the retirement system, and
34 18 shall make a valuation of the assets and liabilities of the
34 19 fire and police retirement fund, and on the basis of the
34 20 results of the investigation and valuation, the system shall
34 21 do all of the following:
34 22 a. Adopt adopt for the retirement system such actuarial
34 23 methods and assumptions, interest rate, and mortality and
34 24 other tables as are deemed necessary to conduct the annual
34 25 actuarial valuation of the system.
34 26 b. Certify the rates of contribution payable by the cities
34 27 in accordance with section 411.8.
34 28 c. Certify the rates of contributions payable by the
34 29 members in accordance with section 411.8.
34 30 11. ANNUAL ACTUARIAL VALUATION.
34 31 a. On the basis of the actuarial methods and assumptions,
34 32 rate of interest and tables adopted, the actuary shall make an
34 33 annual valuation of the assets and liabilities of the fire and
34 34 police retirement fund created by this chapter. As a result
34 35 of the annual actuarial valuation, the system shall do all of
35 1 the following:
35 2 (1) Certify the rates of contribution payable by the
35 3 cities in accordance with section 411.8.
35 4 (2) Certify the rates of contributions payable by the
35 5 members in accordance with section 411.8.
35 6 b. Effective with the fiscal year beginning July 1, 2008,
35 7 the annual actuarial valuation required to be conducted shall
35 8 include information as required by section 97D.5.
35 9 Sec. 51. Section 411.8, subsection 1, paragraph b, Code
35 10 2007, is amended to read as follows:
35 11 b. On the basis of the actuarial methods and assumptions,
35 12 rate of interest, and of the mortality, interest and other
35 13 tables adopted by the system, the actuary engaged by the
35 14 system to make each valuation required by this chapter
35 15 pursuant to the requirements of section 411.5, shall
35 16 immediately after making such valuation, determine the "normal
35 17 contribution rate". Except as otherwise provided in this
35 18 lettered paragraph, the normal contribution rate shall be the
35 19 rate percent of the earnable compensation of all members
35 20 obtained by deducting from the total liabilities of the fund
35 21 the amount of the funds in hand to the credit of the fund and
35 22 dividing the remainder by one percent of the present value of
35 23 the prospective future compensation of all members as computed
35 24 on the basis of the rate of interest and of mortality and
35 25 service tables adopted, all equal to the rate required by the
35 26 system to discharge its liabilities, stated as a percentage of
35 27 the earnable compensation of all members, and reduced by the
35 28 employee contribution made pursuant to rate provided in
35 29 paragraph "f" of this subsection and the contribution rate
35 30 representing the state appropriation made as provided in
35 31 section 411.20. However, the normal rate of contribution
35 32 shall not be less than seventeen percent.
35 33 Beginning July 1, 1996, and each fiscal year thereafter,
35 34 the normal contribution rate shall be the rate percent of the
35 35 earnable compensation of all members obtained by deducting
36 1 from the total liabilities of the fund the amount of the funds
36 2 in hand to the credit of the fund and dividing the remainder
36 3 by one percent of the present value of the prospective future
36 4 compensation of all members as computed on the basis of the
36 5 rate of interest and of mortality and service tables adopted,
36 6 multiplied by six=tenths, or seventeen percent, whichever is
36 7 greater.
36 8 The normal rate of contribution shall be determined by the
36 9 actuary after each valuation.
36 10 Sec. 52. NEW SECTION. 411.10 PURCHASE OF SERVICE CREDIT
36 11 FOR MILITARY SERVICE.
36 12 1. An active member of the system who has been a member of
36 13 the retirement system five or more years may elect to purchase
36 14 up to five years of service credit for military service, other
36 15 than military service required to be recognized under Internal
36 16 Revenue Code section 414(u) or under the federal Uniformed
36 17 Services Employment and Reemployment Rights Act, that will be
36 18 recognized by the retirement system for purposes of
36 19 calculating a member's benefit, pursuant to Internal Revenue
36 20 Code section 415(n) and the requirements of this section.
36 21 2. a. A member seeking to purchase service credit
36 22 pursuant to this section shall file a written application with
36 23 the system requesting an actuarial determination of the cost
36 24 of a purchase of service credit. Upon receipt of the cost
36 25 estimate for the purchase of service from the system, the
36 26 member may make contributions to the system in an amount equal
36 27 to the actuarial cost of the service credit purchase.
36 28 b. For purposes of this subsection, the actuarial cost of
36 29 the service credit purchase is an amount determined by the
36 30 system in accordance with actuarial tables, as reported to the
36 31 system by the system's actuary, which reflects the actuarial
36 32 cost necessary to fund an increased retirement allowance
36 33 resulting from the purchase of service credit.
36 34 3. The system shall ensure that the member, in exercising
36 35 an option provided in this section, does not exceed the amount
37 1 of annual additions to a member's account permitted pursuant
37 2 to section 415 of the federal Internal Revenue Code.
37 3 4. The board of trustees shall adopt rules providing for
37 4 the implementation and administration of this section.
37 5 Sec. 53. Section 411.15, Code 2007, is amended to read as
37 6 follows:
37 7 411.15 HOSPITALIZATION AND MEDICAL ATTENTION.
37 8 Cities shall provide hospital, nursing, and medical
37 9 attention for the members of the police and fire departments
37 10 of the cities, when injured while in the performance of their
37 11 duties as members of such department, and shall continue to
37 12 provide hospital, nursing, and medical attention for injuries
37 13 or diseases incurred while in the performance of their duties
37 14 for members receiving a retirement allowance under section
37 15 411.6, subsection 6. Cities may provide fund the cost of the
37 16 hospital, nursing, and medical attention required by this
37 17 section through the purchase of insurance, by self=insuring
37 18 the obligation, or through payment of moneys into a local
37 19 government risk pool established for the purpose of covering
37 20 the costs associated with the requirements of this section.
37 21 However, the cost of the hospital, nursing, and medical
37 22 attention required by this section shall not be funded through
37 23 an employee=paid health insurance policy. The cost of
37 24 providing the hospital, nursing, and medical attention
37 25 required by this section shall be paid from moneys held in a
37 26 trust and agency fund established pursuant to section 384.6,
37 27 or out of the appropriation for the department to which the
37 28 injured person belongs or belonged; provided that any amounts
37 29 received by the injured person under the workers' compensation
37 30 law of the state, or from any other source for such specific
37 31 purposes, shall be deducted from the amount paid by the city
37 32 under the provisions of this section.
37 33 DIVISION IV
37 34 JUDICIAL RETIREMENT SYSTEM
37 35 Sec. 54. Section 602.9104, subsection 1, paragraph b, Code
38 1 2007, is amended to read as follows:
38 2 b. The state shall contribute annually to the judicial
38 3 retirement fund an amount equal to the state's required
38 4 contribution for all judges covered under this article. The
38 5 state's required contribution shall be appropriated directly
38 6 to the judicial retirement fund by the general assembly.
38 7 Sec. 55. Section 602.9104, subsection 4, paragraphs b, c,
38 8 d, and e, Code 2007, are amended to read as follows:
38 9 b. "Fully funded status" means that the most recent
38 10 actuarial valuation reflects that, using the projected unit
38 11 credit method in accordance with generally recognized and
38 12 accepted actuarial principles and practices set forth by the
38 13 American academy of actuaries, the funded status of the system
38 14 is at least ninety one hundred percent, based upon the
38 15 benefits provided for judges through the judicial retirement
38 16 system as of July 1, 2006.
38 17 c. "Judge's required contribution" means an amount equal
38 18 to the basic salary of the judge multiplied by the following
38 19 applicable percentage:
38 20 (1) For the fiscal year beginning July 1, 2008, and ending
38 21 June 30, 2009, seven and seven=tenths percent.
38 22 (2) For the fiscal year beginning July 1, 2009, and ending
38 23 June 30, 2010, eight and seven=tenths percent.
38 24 (1) (3) For the fiscal year beginning July 1, 2006 2010,
38 25 and for each subsequent fiscal year until the system attains
38 26 fully funded status, six percent multiplied by a fraction
38 27 equal to the actual percentage rate contributed by the state
38 28 for that fiscal year divided by twenty=three and seven=tenths
38 29 percent nine and thirty=five hundredths percent.
38 30 (2) (4) Commencing with the first fiscal year in which
38 31 the system attains fully funded status, and for each
38 32 subsequent fiscal year, the percentage rate equal to fifty
38 33 forty percent of the required contribution rate.
38 34 d. "Required contribution rate" means that percentage of
38 35 the basic salary of all judges covered under this article
39 1 which the actuary of the system determines is necessary, using
39 2 the projected unit credit method in accordance with generally
39 3 recognized and accepted actuarial principles and practices set
39 4 forth by the American academy of actuaries, to amortize the
39 5 unfunded actuarial liability of the judicial retirement system
39 6 within twenty years equal to the actuarially required
39 7 contribution rate determined by the actuary pursuant to
39 8 section 602.9116.
39 9 e. "State's required contribution" means an amount equal
39 10 to the basic salary of all judges covered under this article
39 11 multiplied by the following applicable percentage:
39 12 (1) For the fiscal year beginning July 1, 2006 2008, and
39 13 for each subsequent fiscal year until the system attains fully
39 14 funded status, twenty=three and seven=tenths thirty and
39 15 six=tenths percent.
39 16 (2) Commencing with the first fiscal year in which the
39 17 system attains fully funded status, and for each subsequent
39 18 fiscal year, the percentage rate equal to fifty sixty percent
39 19 of the required contribution rate.
39 20 Sec. 56. Section 602.9116, subsection 1, Code Supplement
39 21 2007, is amended to read as follows:
39 22 1. The court administrator shall cause an actuarial
39 23 valuation to be made of the assets and liabilities of the
39 24 judicial retirement fund at least once every four years
39 25 commencing with the fiscal year beginning July 1, 1981. For
39 26 each fiscal year in which an actuarial valuation is not
39 27 conducted, the court administrator shall cause an annual
39 28 actuarial update to be prepared for the purpose of determining
39 29 the adequacy of the contribution rates specified in section
39 30 602.9104. The court administrator shall adopt actuarial
39 31 methods and assumptions, mortality tables, and other necessary
39 32 factors for use in the actuarial calculations required for the
39 33 valuation upon the recommendation of the actuary. In
39 34 addition, effective with the fiscal year beginning July 1,
39 35 2008, the actuarial valuation or actuarial update required to
40 1 be conducted shall include information as required by section
40 2 97D.5. Following the actuarial valuation or annual actuarial
40 3 update, the court administrator shall determine the condition
40 4 of the system, determine the actuarially required contribution
40 5 rate for each fiscal year which is the rate required by the
40 6 system to discharge its liabilities, stated as a percentage of
40 7 the basic salary of all judges covered under this article, and
40 8 shall report any findings and recommendations to the general
40 9 assembly.
40 10 DIVISION V
40 11 MISCELLANEOUS PROVISIONS
40 12 Sec. 57. Section 8A.438, Code 2007, is amended by striking
40 13 the section and inserting in lieu thereof the following:
40 14 8A.438 TAX=SHELTERED INVESTMENT CONTRACTS.
40 15 1. The director may establish a tax=sheltered investment
40 16 program for eligible employees. The director may arrange for
40 17 the provision of investment vehicles authorized under section
40 18 403(b) of the Internal Revenue Code, as defined in section
40 19 422.3. The department may offer the tax=sheltered investment
40 20 program to eligible public employers in the state of Iowa.
40 21 2. a. A special, separate tax=sheltered investment
40 22 revolving trust fund is created in the state treasury under
40 23 the control of the department. The fund shall consist of all
40 24 moneys deposited in the fund pursuant to this section, any
40 25 funds received from other entities in the state of Iowa, and
40 26 interest and earnings thereon. The director is the trustee of
40 27 the fund and shall administer the fund. Any loss to the fund
40 28 shall be charged against the fund and the director shall not
40 29 be personally liable for such loss.
40 30 b. Moneys in the fund are not subject to section 8.33.
40 31 Notwithstanding section 12C.7, subsection 2, interest or
40 32 earnings on moneys in the fund shall be credited to the fund.
40 33 Sec. 58. Section 55.1, unnumbered paragraph 1, Code 2007,
40 34 is amended to read as follows:
40 35 A person who is elected to a municipal, county, state, or
41 1 federal office shall, upon written application to the employer
41 2 of that person, be granted a leave of absence from regular
41 3 employment to serve in that office except where prohibited by
41 4 the federal law. The leave of absence may be granted without
41 5 pay and, except that if a salaried employee takes leave
41 6 without pay from regular employment for a portion of a pay
41 7 period, the employee's salaried compensation for that pay
41 8 period shall be reduced by the ratio of the number of days of
41 9 leave taken to the total number of days in the pay period.
41 10 The leave of absence shall be granted without loss of net
41 11 credited service and benefits earned. This section shall not
41 12 be construed to require an employer to pay pension, health or
41 13 other benefits during the leave of absence to an employee
41 14 taking a leave of absence under this section.
41 15 Sec. 59. Section 55.1, unnumbered paragraph 3, Code 2007,
41 16 is amended to read as follows:
41 17 An employee shall not be prohibited from returning to
41 18 regular employment before the period expires for which the
41 19 leave of absence was granted. This section applies only to
41 20 employers which employ twenty or more full=time persons. The
41 21 leave of absence granted by this section need not exceed six
41 22 years. The leave of absence granted by this section does not
41 23 apply to an elective office held by the employee prior to the
41 24 election.
41 25 Sec. 60. Section 97C.21, Code 2007, is amended to read as
41 26 follows:
41 27 97C.21 VOLUNTARY COVERAGE OF ELECTED OFFICIALS.
41 28 Notwithstanding any provision of this chapter to the
41 29 contrary, an employer of elected officials otherwise excluded
41 30 from the definition of employee as provided in section 97C.2,
41 31 may, but is not required to, choose to provide benefits to
41 32 those elected officials as employees as provided by this
41 33 chapter. Alternatively, the governor may authorize a
41 34 statewide referendum of the appointed and elected officials of
41 35 the state and its political subdivisions on the question of
42 1 whether to include in or exclude from the definition of
42 2 employee all such positions. This choice shall be reflected
42 3 in the federal=state agreement described in section 97C.3,
42 4 and, if necessary, in this chapter. An employer who is
42 5 providing benefits to elected officials otherwise excluded
42 6 from the definition of employee prior to July 1, 2002, shall
42 7 not be deemed to be in an erroneous reporting situation, and
42 8 corrections for prior federal social security withholdings
42 9 shall not be required. The implementation of this section
42 10 shall be subject to the approval of the federal social
42 11 security administration.
42 12 Sec. 61. Section 97D.2, Code 2007, is amended to read as
42 13 follows:
42 14 97D.2 ANALYSIS OF COST OF PROPOSED CHANGES.
42 15 When the public retirement systems committee established by
42 16 section 97D.4 or a standing committee of the senate or house
42 17 of representatives recommends a proposal for a change in a
42 18 public retirement system within this state, the committee
42 19 shall require the development of actuarial information
42 20 concerning the costs of the proposed change. If the proposal
42 21 affects police and fire retirement under chapter 411, the
42 22 committee shall arrange for the services of an actuarial
42 23 consultant or request actuarial information from the statewide
42 24 fire and police retirement system created in chapter 411 to
42 25 assist in developing the information. Actuarial information
42 26 developed as provided under this section concerning the cost
42 27 of a proposed change shall include information on the effect
42 28 of the proposed change on the normal cost rate for that public
42 29 retirement system using the entry age normal actuarial cost
42 30 method.
42 31 Sec. 62. NEW SECTION. 97D.5 PUBLIC RETIREMENT SYSTEMS ==
42 32 ANNUAL ACTUARIAL VALUATIONS == REQUIRED INFORMATION.
42 33 1. For purposes of this section, "public retirement
42 34 system" means the public safety peace officers' retirement
42 35 system created in chapter 97A, the Iowa public employees'
43 1 retirement system created in chapter 97B, the statewide fire
43 2 and police retirement system created in chapter 411, or the
43 3 judicial retirement system created in chapter 602.
43 4 2. Effective with the fiscal year beginning July 1, 2008,
43 5 a public retirement system shall include in each actuarial
43 6 valuation or actuarial update required to be conducted by that
43 7 public retirement system the following additional information,
43 8 all as determined by using the entry age normal actuarial cost
43 9 method:
43 10 a. The actuarially required contribution rate for the
43 11 public retirement system which is equal to the normal cost
43 12 rate plus the contribution rate necessary to amortize the
43 13 unfunded actuarial accrued liability on a level percent of
43 14 payroll basis over thirty years.
43 15 b. The normal cost rate for the public retirement system
43 16 which shall be determined for each individual member on a
43 17 level percentage of salary basis and then summed for all
43 18 members to obtain the total normal cost.
43 19 Sec. 63. Section 260C.14, subsection 9, Code 2007, is
43 20 amended by striking the subsection and inserting in lieu
43 21 thereof the following:
43 22 9. a. The board may establish a plan, in accordance with
43 23 section 403(b) of the Internal Revenue Code, as defined in
43 24 section 422.3, for employees, which plan shall consist of one
43 25 or more investment contracts, on a group or individual basis,
43 26 acquired from a company, or a salesperson for that company,
43 27 that is authorized to do business in this state.
43 28 b. The selection of investment contracts to be included
43 29 within the plan established by the board shall be made either
43 30 pursuant to a competitive bidding process conducted by the
43 31 board, in coordination with employee organizations
43 32 representing employees eligible to participate in the plan, or
43 33 pursuant to an agreement with the department of administrative
43 34 services to make available investment contracts included in a
43 35 deferred compensation or similar plan established by the
44 1 department pursuant to section 8A.438, which plan meets the
44 2 requirements of this subsection. The determination of whether
44 3 to select investment contracts for the plan pursuant to a
44 4 competitive bidding process or by agreement with the
44 5 department of administrative services shall be made by
44 6 agreement between the board and the employee organizations
44 7 representing employees eligible to participate in the plan.
44 8 c. The board may make elective deferrals in accordance
44 9 with the plan as authorized by an eligible employee for the
44 10 purpose of making contributions to an investment contract in
44 11 the plan on behalf of the employee. The deferrals shall be
44 12 made in the manner which will qualify contributions to the
44 13 investment contract for the benefits under section 403(b) of
44 14 the Internal Revenue Code, as defined in section 422.3. In
44 15 addition, the board may make nonelective employer
44 16 contributions to the plan.
44 17 d. As used in this subsection, unless the context
44 18 otherwise requires, "investment contract" shall mean a
44 19 custodial account utilizing mutual funds or an annuity
44 20 contract which meets the requirements of section 403(b) of the
44 21 Internal Revenue Code, as defined in section 422.3.
44 22 Sec. 64. Section 273.3, subsection 14, Code 2007, is
44 23 amended by striking the subsection and inserting in lieu
44 24 thereof the following:
44 25 14. a. The board may establish a plan, in accordance with
44 26 section 403(b) of the Internal Revenue Code, as defined in
44 27 section 422.3, for employees, which plan shall consist of one
44 28 or more investment contracts, on a group or individual basis,
44 29 acquired from a company, or a salesperson for that company,
44 30 that is authorized to do business in this state.
44 31 b. The selection of investment contracts to be included
44 32 within the plan established by the board shall be made either
44 33 pursuant to a competitive bidding process conducted by the
44 34 board, in coordination with employee organizations
44 35 representing employees eligible to participate in the plan, or
45 1 pursuant to an agreement with the department of administrative
45 2 services to make available investment contracts included in a
45 3 deferred compensation or similar plan established by the
45 4 department pursuant to section 8A.438, which plan meets the
45 5 requirements of this subsection. The determination of whether
45 6 to select investment contracts for the plan pursuant to a
45 7 competitive bidding process or by agreement with the
45 8 department of administrative services shall be made by
45 9 agreement between the board and the employee organizations
45 10 representing employees eligible to participate in the plan.
45 11 c. The board may make elective deferrals in accordance
45 12 with the plan as authorized by an eligible employee for the
45 13 purpose of making contributions to the investment contract on
45 14 behalf of the employee. The deferrals shall be made in the
45 15 manner which will qualify contributions to the investment
45 16 contract for the benefits under section 403(b) of the Internal
45 17 Revenue Code, as defined in section 422.3. In addition, the
45 18 board may make nonelective employer contributions to the plan.
45 19 d. As used in this subsection, unless the context
45 20 otherwise requires, "investment contract" shall mean a
45 21 custodial account utilizing mutual funds or an annuity
45 22 contract which meets the requirements of section 403(b) of the
45 23 Internal Revenue Code, as defined in section 422.3.
45 24 Sec. 65. Section 294.16, Code 2007, is amended by striking
45 25 the section and inserting in lieu thereof the following:
45 26 294.16 INVESTMENT CONTRACTS.
45 27 1. The school district may establish a plan, in accordance
45 28 with section 403(b) of the Internal Revenue Code, as defined
45 29 in section 422.3, for employees, which plan shall consist of
45 30 one or more investment contracts, on a group or individual
45 31 basis, acquired from a company, or a salesperson for that
45 32 company, that is authorized to do business in this state.
45 33 2. The selection of investment contracts to be included
45 34 within the plan established by the school district shall be
45 35 made either pursuant to a competitive bidding process
46 1 conducted by the school district, in coordination with
46 2 employee organizations representing employees eligible to
46 3 participate in the plan, or pursuant to an agreement with the
46 4 department of administrative services to make available
46 5 investment contracts included in a deferred compensation or
46 6 similar plan established by the department pursuant to section
46 7 8A.438, which plan meets the requirements of this section.
46 8 The determination of whether to select investment contracts
46 9 for the plan pursuant to a competitive bidding process or by
46 10 agreement with the department of administrative services shall
46 11 be made by agreement between the school district and the
46 12 employee organizations representing employees eligible to
46 13 participate in the plan.
46 14 3. The school district may make elective deferrals in
46 15 accordance with the plan as authorized by an eligible employee
46 16 for the purpose of making contributions to the investment
46 17 contract on behalf of the employee. The deferrals shall be
46 18 made in the manner which will qualify contributions to the
46 19 investment contract for the benefits under section 403(b) of
46 20 the Internal Revenue Code, as defined in section 422.3. In
46 21 addition, the school district may make nonelective employer
46 22 contributions to the plan.
46 23 4. As used in this section, unless the context otherwise
46 24 requires, "investment contract" shall mean a custodial account
46 25 utilizing mutual funds or an annuity contract which meets the
46 26 requirements of section 403(b) of the Internal Revenue Code,
46 27 as defined in section 422.3.
46 28 Sec. 66. TRANSITION PROVISIONS == INTERNAL REVENUE CODE
46 29 SECTION 403(b) PLANS. Notwithstanding any provision of law to
46 30 the contrary, the investment contracts to be included within a
46 31 plan established pursuant to section 260C.14, subsection 9,
46 32 section 273.3, subsection 14, or section 294.16, for the
46 33 period beginning January 1, 2009, and ending December 31,
46 34 2009, shall be investment contracts selected by the department
46 35 of administrative services from among the investment contracts
47 1 included in a deferred compensation or similar plan
47 2 established by the department of administrative services,
47 3 which plan meets the requirements of section 403(b) of the
47 4 Internal Revenue Code, as defined in section 422.3, or shall
47 5 be from no more than five companies authorized to issue
47 6 investment contracts as selected by the applicable employer
47 7 and from no more than three companies authorized to issue
47 8 investment contracts as selected by, and in the sole
47 9 discretion of, the employee organizations representing the
47 10 applicable employer's employees. Selection of companies and
47 11 investment contracts for a plan shall be made in the best
47 12 interests of employees eligible to participate in the plan.
47 13 The determination of whether to select investment contracts
47 14 for the plan for the period beginning January 1, 2009, and
47 15 ending December 31, 2009, that are included in a deferred
47 16 compensation or similar plan established by the department of
47 17 administrative services or that are selected by the applicable
47 18 employer and the employee organizations representing the
47 19 applicable employer's employees, shall be made by an agreement
47 20 entered into by August 15, 2008, between the applicable
47 21 employer and the employee organizations representing the
47 22 applicable employer's employees eligible to participate in the
47 23 plan. Applicable employers shall have the authority to take
47 24 such action as deemed necessary to establish, effective
47 25 January 1, 2009, an eligible plan pursuant to section 260C.14,
47 26 subsection 9, section 273.3, subsection 14, or section 294.16.
47 27 Sec. 67. DEPARTMENT OF ADMINISTRATIVE SERVICES ==
47 28 SELECTION OF INVESTMENT CONTRACT PROVIDERS FOR INTERNAL
47 29 REVENUE CODE SECTION 403(b) PLANS.
47 30 1. The department of administrative services shall
47 31 establish, by January 1, 2010, a plan, as authorized pursuant
47 32 to section 8A.438 and in accordance with section 403(b) of the
47 33 Internal Revenue Code, as defined in section 422.3, for
47 34 employees, which plan shall consist of one or more investment
47 35 contracts, on a group or individual basis, acquired from a
48 1 company, or a salesperson for that company, that is authorized
48 2 to do business in this state, that is eligible to be utilized
48 3 as a vendor of investment contracts for plans established
48 4 pursuant to section 260C.14, subsection 9, section 273.3,
48 5 subsection 14, or section 294.16.
48 6 2. The department of administrative services shall
48 7 determine which vendors will be authorized to participate
48 8 under the tax=sheltered investment program established by the
48 9 department pursuant to section 8A.438. Employee organizations
48 10 representing employees and employers participating in the
48 11 programs authorized under sections 8A.433 and 8A.438 shall be
48 12 allowed to assist the department in this decision, specific
48 13 only to the initial competitive bid process that will
48 14 determine the vendors that will be in the program as of
48 15 January 1, 2010.
48 16 3. As used in this section, unless the context otherwise
48 17 requires, "investment contract" shall mean a custodial account
48 18 utilizing mutual funds or an annuity contract which meets the
48 19 requirements of section 403(b) of the Internal Revenue Code,
48 20 as defined in section 422.3.
48 21 Sec. 68. EFFECTIVE DATE.
48 22 1. The sections of this division of this Act amending
48 23 section 260C.14, subsection 9, section 273.3, subsection 14,
48 24 and section 294.16, take effect January 1, 2009.
48 25 2. The section of this division of this Act, enacting
48 26 transition provisions relating to plans required to meet
48 27 requirements for Internal Revenue Code section 403(b) plans,
48 28 being deemed of immediate importance, takes effect upon
48 29 enactment.
48 30
48 31
48 32
48 33 JOHN P. KIBBIE
48 34 President of the Senate
48 35
49 1
49 2
49 3 PATRICK J. MURPHY
49 4 Speaker of the House
49 5
49 6 I hereby certify that this bill originated in the Senate and
49 7 is known as Senate File 2424, Eighty=second General Assembly.
49 8
49 9
49 10
49 11 MICHAEL E. MARSHALL
49 12 Secretary of the Senate
49 13 Approved , 2008
49 14
49 15
49 16
49 17 CHESTER J. CULVER
49 18 Governor