House File 282

                                       HOUSE FILE       
                                       BY  HEATON


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act eliminating the reemployment earnings limitation under the
  2    Iowa public employees' retirement system for a retired member
  3    reemployed as a substitute teacher.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2746YH 80
  6 ec/cl/14

PAG LIN

  1  1    Section 1.  Section 97B.48A, subsection 1, unnumbered
  1  2 paragraph 1, Code 2003, is amended to read as follows:
  1  3    If a member who has not reached the member's sixty=fifth
  1  4 birthday and who has a bona fide retirement under this chapter
  1  5 is in regular full=time employment during a calendar year, the
  1  6 member's retirement allowance shall be reduced by fifty cents
  1  7 for each dollar the member earns over the limit provided in
  1  8 this subsection.  However, employment is not full=time
  1  9 employment until the member receives remuneration in an amount
  1 10 in excess of thirty thousand dollars for a calendar year, or
  1 11 an amount equal to the amount of remuneration permitted for a
  1 12 calendar year for persons under sixty=five years of age before
  1 13 a reduction in federal social security retirement benefits is
  1 14 required, whichever is higher.  In addition, the reduction in
  1 15 a member's retirement allowance under this subsection shall
  1 16 not apply if the member is employed as a substitute teacher by
  1 17 a school district or area education agency.  Effective the
  1 18 first of the month in which a member attains the age of sixty=
  1 19 five years, a retired member may receive a retirement
  1 20 allowance without a reduction after return to covered
  1 21 employment regardless of the amount of remuneration received.
  1 22                           EXPLANATION
  1 23    This bill eliminates the limit on the wages a retired
  1 24 member of IPERS can earn as a substitute teacher without a
  1 25 reduction in retirement benefits following the member's bona
  1 26 fide retirement.  Current law provides for a reduction in
  1 27 retirement benefits if reemployment wages exceed $30,000 for
  1 28 persons under 65 years of age.
  1 29 LSB 2746YH 80
  1 30 ec/cl/14
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