House File 2194 HOUSE FILE BY D. OLSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for the purchase of special service credit under 2 the Iowa public employees' retirement system. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5238HH 80 5 ec/gg/14 PAG LIN 1 1 Section 1. NEW SECTION. 97B.80D PURCHASES OF SPECIAL 1 2 SERVICE CREDIT. 1 3 1. A vested or retired member in special service who has 1 4 five or more full calendar years of covered wages and who at 1 5 any time was in regular service may make contributions to the 1 6 retirement system to convert up to five years of regular 1 7 service credit to special service credit as determined by the 1 8 system, pursuant to Internal Revenue Code section 415(n) and 1 9 the requirements of this section. 1 10 2. A special service member making contributions for a 1 11 purchase of special service credit under this section shall 1 12 make contributions in an amount equal to the actuarial cost of 1 13 converting the regular service credit to special service 1 14 credit. For purposes of this subsection, the actuarial cost 1 15 of the service purchase is an amount determined by the system 1 16 in accordance with actuarial tables, as reported to the system 1 17 by the system's actuary, which reflects the actuarial cost 1 18 necessary to fund an increased retirement allowance resulting 1 19 from the purchase of special service credit. 1 20 3. The system shall ensure that the member, in exercising 1 21 an option provided in this section, does not exceed the amount 1 22 of annual additions to a member's account permitted pursuant 1 23 to section 415 of the federal Internal Revenue Code. 1 24 EXPLANATION 1 25 This bill provides that a vested or retired member of the 1 26 Iowa public employees' retirement system (IPERS) in special 1 27 service can convert up to five years of prior regular service 1 28 credit under IPERS to special service credit by paying the 1 29 actuarial cost of the purchase. Under IPERS, special service 1 30 means service while employed in a protection occupation or as 1 31 a sheriff, deputy sheriff, or airport fire fighter. The 1 32 actuarial cost of the purchase is defined by the bill as the 1 33 amount necessary to fund an increased retirement allowance 1 34 resulting from the purchase of special service credit. 1 35 LSB 5238HH 80 2 1 ec/gg/14