Senate File 2078
SENATE FILE
BY COMMITTEE ON
STATE GOVERNMENT
(SUCCESSOR TO SSB 3042)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to public retirement systems, including the
2 public safety peace officers' retirement, accident, and
3 disability system, the Iowa public employees' retirement
4 system, and the statewide fire and police retirement system,
5 and providing effective and retroactive applicability dates.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 5332SV 80
8 ec/sh/8
PAG LIN
1 1 DIVISION I
1 2 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
1 3 DISABILITY SYSTEM
1 4 Section 1. Section 97A.17, subsection 1, Code 2003, is
1 5 amended by adding the following new paragraph:
1 6 NEW PARAGRAPH. e. "Refund liability" means the amount the
1 7 member may elect to withdraw from the former system under
1 8 section 411.23.
1 9 Sec. 2. Section 97A.17, subsection 2, Code 2003, is
1 10 amended to read as follows:
1 11 2. Commencing July 1, 1996, a vested member of an eligible
1 12 retirement system who terminates employment covered by one
1 13 eligible retirement system and, within one year, commences
1 14 employment covered by the other eligible retirement system may
1 15 elect to transfer the greater of the average accrued benefit
1 16 or the refund liability earned from the former system to the
1 17 current system. The member shall file an application with the
1 18 current system for transfer of the greater of the average
1 19 accrued benefit or the refund liability within ninety days of
1 20 the commencement of employment with the current system.
1 21 Sec. 3. Section 97A.17, subsection 4, Code 2003, is
1 22 amended to read as follows:
1 23 4. Upon receipt of an application for transfer of the
1 24 average accrued benefit as provided in this section, the
1 25 current system shall calculate the average accrued benefit and
1 26 the refund liability and the former system shall transfer to
1 27 the current system assets in an amount equal to the greater of
1 28 the average accrued benefit or the refund liability. Once the
1 29 transfer of the average accrued benefit is completed, the
1 30 member's service under the former system shall be treated as
1 31 membership service under the current system for purposes of
1 32 this chapter and chapter 411.
1 33 DIVISION II
1 34 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
1 35 Sec. 4. Section 97B.1A, subsection 11, paragraphs a, b,
2 1 and c, Code Supplement 2003, are amended to read as follows:
2 2 a. Has attained the minimum age for receipt of a
2 3 retirement allowance under this chapter.
2 4 b. If the member has not attained seventy years of age,
2 5 has terminated all employment covered under the chapter or
2 6 formerly covered under the chapter pursuant to section 97B.42
2 7 in the month prior to the member's first month of entitlement.
2 8 c. Has filed a completed application for benefits with the
2 9 system setting forth the member's intended first month of
2 10 entitlement.
2 11 Sec. 5. Section 97B.1A, subsection 20, Code Supplement
2 12 2003, is amended by adding the following new paragraph:
2 13 NEW PARAGRAPH. e. Employment with an employer prior to
2 14 January 1, 1946, if the member is not receiving a retirement
2 15 allowance based upon that employment.
2 16 Sec. 6. Section 97B.1A, subsection 20, Code Supplement
2 17 2003, is amended by adding the following new unnumbered
2 18 paragraph after paragraph d:
2 19 NEW UNNUMBERED PARAGRAPH. However, effective July 1, 2004,
2 20 "service" does not mean service for which an employee receives
2 21 remuneration from an employer for temporary employment during
2 22 any quarter in which the employee is on an otherwise unpaid
2 23 leave of absence that is not authorized under the federal
2 24 Family and Medical Leave Act of 1993 or other similar leave.
2 25 Remuneration paid by the employer for the temporary employment
2 26 shall not be treated by the system as covered wages.
2 27 Sec. 7. Section 97B.1A, subsection 24, paragraphs a and c,
2 28 Code Supplement 2003, are amended to read as follows:
2 29 a. "Three=year average covered wage" means, for a member
2 30 who retires prior to July 1, 2005 2008, a member's covered
2 31 wages averaged for the highest three years of the member's
2 32 service, except as otherwise provided in this subsection. The
2 33 highest three years of a member's covered wages shall be
2 34 determined using calendar years. However, if a member's final
2 35 quarter of a year of employment does not occur at the end of a
3 1 calendar year, the system may determine the wages for the
3 2 third year by computing the average quarter of all quarters
3 3 from the member's highest calendar year of covered wages not
3 4 being used in the selection of the two highest years and using
3 5 the computed average quarter for each quarter in the third
3 6 year in which no wages have been reported in combination with
3 7 the final quarter or quarters of the member's service to
3 8 create a full year. However, the system shall not use the
3 9 member's final quarter of wages if using that quarter would
3 10 reduce the member's three=year average covered wage. If the
3 11 three=year average covered wage of a member exceeds the
3 12 highest maximum covered wages in effect for a calendar year
3 13 during the member's period of service, the three=year average
3 14 covered wage of the member shall be reduced to the highest
3 15 maximum covered wages in effect during the member's period of
3 16 service. Notwithstanding any other provision of this
3 17 paragraph to the contrary, a member's wages for the third year
3 18 as computed by this paragraph shall not exceed, by more than
3 19 three percent, the member's highest actual calendar year of
3 20 covered wages for a member whose first month of entitlement is
3 21 January 1999 or later.
3 22 c. "Three=year average covered wage" means, for a member
3 23 who retires on or after July 1, 2005 2008, the greater of the
3 24 member's covered wages averaged for a member's highest twelve
3 25 consecutive quarters of service or the member's covered wages
3 26 averaged for a member's highest three calendar years of
3 27 service. The system shall adopt rules to implement this
3 28 paragraph in accordance with the requirements of this chapter
3 29 and the federal Internal Revenue Code.
3 30 Sec. 8. Section 97B.1A, subsection 25, paragraph a,
3 31 subparagraph (4), Code Supplement 2003, is amended to read as
3 32 follows:
3 33 (4) Has attained the age of fifty=five. However, an
3 34 inactive member who has not attained sufficient years of
3 35 service eligibility to become vested and who has not attained
4 1 the age of fifty=five as of July 1, 2005, shall not become
4 2 vested upon the attainment of the age of fifty=five while an
4 3 inactive member.
4 4 Sec. 9. Section 97B.1A, subsection 26, paragraph a,
4 5 subparagraph (2), subparagraph subdivision (j), Code
4 6 Supplement 2003, is amended to read as follows:
4 7 (j) Payments of damages, attorney fees, interest, and
4 8 penalties made to satisfy a grievance, or wage claim, or
4 9 employment dispute.
4 10 Sec. 10. Section 97B.1A, subsection 26, paragraph a,
4 11 subparagraph (2), subparagraph subdivision (n), Code
4 12 Supplement 2003, is amended by striking the subparagraph
4 13 subdivision.
4 14 Sec. 11. Section 97B.1A, subsection 26, paragraph b,
4 15 unnumbered paragraph 3, Code Supplement 2003, is amended to
4 16 read as follows:
4 17 Effective July 1, 1992, "covered wages" does not include
4 18 wages to a member on or after the effective date of the
4 19 member's retirement, except as otherwise permitted by the
4 20 system's administrative rules, unless the member is
4 21 reemployed, as provided under section 97B.48A.
4 22 Sec. 12. NEW SECTION. 97B.9A COLLECTIONS == WAIVER.
4 23 Notwithstanding any provision of this chapter to the
4 24 contrary, the system may, in its sole discretion, waive the
4 25 collection of benefits overpayments, contribution
4 26 underpayments, or any other debts owed the system, that occur
4 27 more than three years prior to the date of discovery of the
4 28 overpayment, underpayment, or debt by the system, for cases in
4 29 which there is no evidence of fraud or other misconduct on the
4 30 part of the affected employer or the affected member or
4 31 beneficiary in providing or failing to provide information
4 32 necessary to the proper determination of a debt owed the
4 33 system, calculation of contributions and payments, or
4 34 calculation of benefits under this chapter.
4 35 Sec. 13. Section 97B.14A, Code Supplement 2003, is amended
5 1 to read as follows:
5 2 97B.14A WAGE REPORTING.
5 3 1. For purposes of this section, unless the context
5 4 otherwise requires:
5 5 a. "Change in the schedule of wage payments" means the
5 6 formal or informal deferral of wages earned in one calendar
5 7 year to a later calendar year or the acceleration of the wages
5 8 payable under a contract of employment to the prior calendar
5 9 year by changing the period over which the contractual
5 10 compensation is paid, by shortening the period of employment
5 11 over which contract wages are to be paid, or similar
5 12 arrangements altering the timing of wage payments.
5 13 b. "Distortion of the normal wage progression pattern"
5 14 means an increase of ten percent or more between the covered
5 15 wages reported for any two consecutive years.
5 16 2. An employer shall report wages of employees covered by
5 17 this chapter to the system in a manner and form as prescribed
5 18 by the system. If the wages reported by an employer appear to
5 19 be a distortion of the normal wage progression pattern for an
5 20 employee, the system may request that the employer provide
5 21 documentation indicating that the wages were not misreported
5 22 for the purposes of causing an increase in the retirement
5 23 allowance or other payments authorized to be made by this
5 24 chapter explaining the reason for the distortion. If the
5 25 system determines that the wages of an employee were
5 26 misreported, the employer shall prepare and file wage
5 27 adjustments allocating the wages to the proper wage reporting
5 28 period. If the distortion of the normal wage progression
5 29 pattern results from covering compensation that is excluded
5 30 from the definition of covered wages, or from a change in the
5 31 schedule of wage payments for an individual, the system shall
5 32 remove wages that should not be covered from its records, and
5 33 shall, in cases involving increases caused by a change in the
5 34 schedule of wage payments, reallocate covered wages to the
5 35 calendar quarters in which the covered wages would have been
6 1 reported but for the change in the schedule of wage payments.
6 2 Sec. 14. Section 97B.17, subsection 1, Code Supplement
6 3 2003, is amended to read as follows:
6 4 1. The system shall establish and maintain records of each
6 5 member, including but not limited to the amount of wages of
6 6 each member, the contribution contributions made on behalf of
6 7 each member with interest, and interest dividends credited,
6 8 beneficiary designations, and applications for benefits of any
6 9 type. The records may be maintained in paper, magnetic, or
6 10 electronic form, including optical disk storage, as set forth
6 11 in chapter 554D. The system may accept, but shall not
6 12 require, electronic records and electronic signatures to the
6 13 extent permitted under chapter 554D. These records are the
6 14 basis for the compilation of the retirement benefits provided
6 15 under this chapter.
6 16 Sec. 15. Section 97B.38, Code Supplement 2003, is amended
6 17 to read as follows:
6 18 97B.38 FEES FOR SERVICES.
6 19 The system may, by rule, prescribe the maximum reasonable
6 20 fees which may be charged for services performed in connection
6 21 with any claim before the system under this chapter, and any
6 22 agreement in violation of such rules shall be void production
6 23 costs, including staff time and materials, associated with
6 24 performing its duties under this chapter for active, inactive,
6 25 and retired members, beneficiaries, and the general public,
6 26 where such production costs are more than de minimis, as
6 27 determined by the system. Any person who shall, with intent
6 28 to defraud, in any manner willfully and knowingly deceive,
6 29 mislead, or threaten any claimant or prospective claimant or
6 30 beneficiary under this chapter by word, circular, letter or
6 31 advertisement, or who shall knowingly charge or collect
6 32 directly or indirectly any fee in excess of the maximum fee,
6 33 or make any agreement directly or indirectly to charge or
6 34 collect any fee in excess of the maximum fee, prescribed by
6 35 the system, shall be deemed guilty of a fraudulent practice.
7 1 Sec. 16. Section 97B.40, Code Supplement 2003, is amended
7 2 by adding the following new subsection:
7 3 NEW SUBSECTION. 1A. If the system determines that a
7 4 person may have engaged in a fraudulent practice as described
7 5 under this section, the system may, in addition to any
7 6 statutory or equitable remedies provided by law, refer the
7 7 matter to the auditor of state and to the appropriate law
7 8 enforcement authorities for possible investigation and
7 9 prosecution.
7 10 Sec. 17. Section 97B.42, unnumbered paragraph 8, Code
7 11 Supplement 2003, is amended by striking the unnumbered
7 12 paragraph and inserting in lieu thereof the following:
7 13 Except as otherwise provided in this section, an employer
7 14 shall not sponsor and a member shall not participate in
7 15 another retirement system in this state supported in whole or
7 16 in part by public contributions or payments where such
7 17 retirement system is in lieu of the retirement system
7 18 established by this chapter. However, in addition to the
7 19 retirement system established by this chapter, an employer may
7 20 sponsor and a member may participate in a supplemental defined
7 21 contribution plan qualified under Internal Revenue Code
7 22 section 401(a), a tax=deferred annuity qualified under
7 23 Internal Revenue Code section 403(b), or an eligible deferred
7 24 compensation plan qualified under Internal Revenue Code
7 25 section 457, regardless of whether contributions to such
7 26 supplemental plans are characterized as employer contributions
7 27 or employee contributions, and subject to the applicable
7 28 limits set forth in the Internal Revenue Code for such plans.
7 29 A defined benefit plan that supplements the retirement system
7 30 established by this chapter shall not be offered by public
7 31 employers covered under this chapter.
7 32 Sec. 18. Section 97B.42A, subsection 4, Code Supplement
7 33 2003, is amended to read as follows:
7 34 4. A person who becomes a member of the retirement system
7 35 pursuant to subsection 3, or who is a member of the retirement
8 1 system, and who has one or more years of covered wages, may
8 2 purchase credit, pursuant to section 97B.73, Code 2003, for
8 3 one or more quarters of service prior to January 1, 1999, in
8 4 which the person was employed in a position as described in
8 5 section 97B.1A, subsection 8, paragraph "a", but was not a
8 6 member of the retirement system.
8 7 Sec. 19. Section 97B.42A, subsection 5, unnumbered
8 8 paragraph 2, Code Supplement 2003, is amended to read as
8 9 follows:
8 10 A person who becomes a member of the Iowa public employees'
8 11 retirement system pursuant to this subsection, and who has one
8 12 or more years of covered wages, may purchase credit, pursuant
8 13 to section 97B.73, Code 2003, for one or more quarters of
8 14 service prior to August 1, 2000, in which the person was
8 15 employed in a position as described by section 97B.1A,
8 16 subsection 8, paragraph "a", subparagraph (11), but was not a
8 17 member of the retirement system.
8 18 Sec. 20. Section 97B.43, unnumbered paragraph 3, Code
8 19 Supplement 2003, is amended to read as follows:
8 20 Each individual who on or after July 1, 1978, was an
8 21 active, vested, or retired member and who (1) made application
8 22 for and received a refund of contributions made under the
8 23 abolished system or (2) has on deposit with the retirement
8 24 fund contributions made under the abolished system shall be
8 25 entitled to credit for years of prior service in the
8 26 determination of retirement allowance payments by filing a
8 27 written election with the system on or after July 1, 1978, and
8 28 by redepositing any withdrawn contributions under the
8 29 abolished system together with interest as stated in this
8 30 paragraph. Any individual who on or after July 1, 1978, is a
8 31 retired member and who made application for and received a
8 32 refund of contributions made under the abolished system may,
8 33 by filing a written election with the system on or after July
8 34 1, 1978, have the system retain fifty percent of the monthly
8 35 increase in retiree benefits that will accrue to the
9 1 individual because of prior service. If the monthly increase
9 2 in retirement benefits is less than ten dollars, the system
9 3 shall retain five dollars of the scheduled increase, and if
9 4 the monthly increase is less than five dollars, the provisions
9 5 of this paragraph shall not apply. The system shall continue
9 6 to retain such funds until the withdrawn contributions,
9 7 together with interest accrued to the month in which the
9 8 written election is filed, have been repaid. Due notice of
9 9 this provision shall be sent to all retired members on or
9 10 after July 1, 1978. However, this paragraph shall not apply
9 11 to any person who received a refund of any membership service
9 12 contributions unless the person repaid the membership service
9 13 contributions pursuant to section 97B.74 97B.80C; but a refund
9 14 of contributions remitted for the calendar quarter ending
9 15 September 30, 1953 which was based entirely upon employment
9 16 which terminated prior to July 4, 1953 shall not be considered
9 17 as a refund of membership service contributions. The interest
9 18 to be paid into the fund shall be compounded at the rates
9 19 credited to member accounts from the date of payment of the
9 20 refund of contributions under the abolished system to the date
9 21 the member redeposits the refunded amount. The provisions of
9 22 the first paragraph of this section relating to the
9 23 consideration given to credited amounts shall apply to the
9 24 redeposited amounts or to amounts left on deposit. Effective
9 25 July 1, 1978, the provisions of this paragraph shall apply to
9 26 each individual who on or after July 1, 1978, was an active,
9 27 vested, or retired member, but who was not in service on July
9 28 4, 1953. The period for filing the written election with the
9 29 system and redepositing any withdrawn contributions together
9 30 with interest accrued shall commence July 1, 1978. A member
9 31 who is a retired member on or after July 1, 1978, may file
9 32 written election with the system on or after July 1, 1978, to
9 33 have the system retain fifty percent of the monthly increase
9 34 as provided in this paragraph.
9 35 Sec. 21. Section 97B.43, unnumbered paragraph 4, Code
10 1 Supplement 2003, is amended to read as follows:
10 2 Effective July 1, 1988 2004, a member eligible for an
10 3 increased retirement allowance because of the repayment of
10 4 contributions under this section is entitled to receipt of
10 5 retroactive adjustment payments for no more than six months
10 6 immediately preceding beginning with the month in which
10 7 written notice payment was submitted to received by the
10 8 system.
10 9 Sec. 22. Section 97B.45, unnumbered paragraph 2, Code
10 10 Supplement 2003, is amended by striking the unnumbered
10 11 paragraph.
10 12 Sec. 23. Section 97B.46, subsection 2, Code Supplement
10 13 2003, is amended to read as follows:
10 14 2. A member remaining in service after attaining the age
10 15 of seventy years is entitled to receive a retirement allowance
10 16 under sections 97B.49A through 97B.49H, as applicable,
10 17 commencing with payment for the calendar month within which
10 18 the written notice is submitted to the system, except that if
10 19 the member fails to submit the notice on a timely basis,
10 20 retroactive payments shall be made for no more than six months
10 21 immediately preceding the month in which the written notice is
10 22 submitted without terminating employment.
10 23 Sec. 24. Section 97B.47, Code Supplement 2003, is amended
10 24 to read as follows:
10 25 97B.47 EARLY RETIREMENT DATE.
10 26 A member's early retirement date shall be the first of the
10 27 month in which a member attains the age of fifty=five years or
10 28 the first of any month after attaining the age of fifty=five
10 29 years prior to the member's normal retirement date, provided
10 30 such date shall be after the last day of service. A member
10 31 may retire on the member's early retirement date by submitting
10 32 written notice to the system setting forth the early
10 33 retirement date which shall not be before the first day of the
10 34 sixth calendar month preceding the month in which such notice
10 35 is filed.
11 1 Sec. 25. Section 97B.48, subsections 1 and 2, Code
11 2 Supplement 2003, are amended to read as follows:
11 3 1. Retirement allowances shall be paid monthly, except
11 4 that, if an allowance of less than six hundred dollars a year
11 5 may, at the member's option is payable pursuant to section
11 6 97B.51, subsection 1, paragraph "b", the member's retirement
11 7 benefit shall be paid as a lump sum in an amount equal to the
11 8 sum of the member's and employer's accumulated contributions
11 9 and the retirement dividends standing to the member's credit
11 10 before December 31, 1966. Receipt of the lump sum payment by
11 11 a member shall terminate any and all entitlement for the
11 12 period of service covered of the member under this chapter and
11 13 the member shall not be eligible to buy back the period of
11 14 service.
11 15 2. The first monthly payment of a normal retirement
11 16 allowance shall be paid as of the normal retirement effective
11 17 date, which date shall be the later of the normal retirement
11 18 date or the first day of the sixth calendar month preceding
11 19 the month in which written notice of normal retirement is
11 20 submitted to the system member's first month of entitlement.
11 21 Written notice under this section may consist of submission of
11 22 a completed estimate request form, a completed application for
11 23 retirement form, or a letter from the member requesting
11 24 information on retirement benefits, whichever is received
11 25 first by the system. However, a letter requesting information
11 26 on benefits or submission of a completed estimate request form
11 27 is only valid for six months following the date of its receipt
11 28 by the system, unless during that six=month period the system
11 29 receives a completed application for retirement form from the
11 30 member. A retirement allowance may only be provided
11 31 retroactively for a single six=month period. Payment of an
11 32 early retirement allowance or an allowance for retirement
11 33 after the normal retirement date shall be paid as of the
11 34 effective date of retirement subject to section 97B.45,
11 35 97B.46, or 97B.47. The payments shall be continued thereafter
12 1 for the lifetime of the retired member except as provided in
12 2 section 97B.48A.
12 3 Sec. 26. Section 97B.48, subsection 5, Code Supplement
12 4 2003, is amended by striking the subsection.
12 5 Sec. 27. Section 97B.48, Code Supplement 2003, is amended
12 6 by adding the following new subsections:
12 7 NEW SUBSECTION. 6. Effective on such date as the system
12 8 determines by rule, but in no event later than July 1, 2006,
12 9 if the system determines that the accumulated contributions of
12 10 a member, payable to a living member who has had a break in
12 11 service or to a beneficiary of a deceased member, are less
12 12 than three thousand dollars, the lump sum amount payable under
12 13 this chapter shall be paid to the living member or beneficiary
12 14 in full satisfaction of all rights of the member or
12 15 beneficiary to receive any payments under the system. For
12 16 purposes of this section, a "break in service" means twenty
12 17 consecutive calendar quarters in which no wages are reported
12 18 to the system. The lump sum payment shall be made within one
12 19 hundred eighty days after the calendar quarter in which the
12 20 member completes a break in service or dies, whichever is
12 21 applicable. A member or beneficiary who receives a mandatory
12 22 distribution under this subsection shall have sixty days to
12 23 return the distribution to the system and restore the member's
12 24 or beneficiary's account.
12 25 NEW SUBSECTION. 7. Effective July 1, 2005, monthly
12 26 retirement allowance payments shall be directly deposited
12 27 without charge to a retired member's account via electronic
12 28 funds transfer. A retired member may elect to receive monthly
12 29 allowance payments as paper warrants in lieu of electronic
12 30 funds transfers, but the system shall charge an administrative
12 31 fee for processing such paper warrants. The fee may be
12 32 automatically deducted from the monthly retirement allowance
12 33 before the warrant is issued to the retired member.
12 34 Sec. 28. Section 97B.48A, Code Supplement 2003, is amended
12 35 by adding the following new subsection:
13 1 NEW SUBSECTION. 5. If a retired reemployed member incurs
13 2 a break in service, as defined in this subsection, and the
13 3 member has failed to request an increase in the member's
13 4 monthly allowance or a distribution of the member's and
13 5 employer's accumulated contributions prior to the break in
13 6 service, and if the amount of the increase in the member's
13 7 monthly retirement allowance would be less than six hundred
13 8 dollars per year, the system shall distribute the lump sum
13 9 amount payable under subsection 4. For purposes of this
13 10 subsection, a "break in service" means four consecutive
13 11 calendar quarters in which no wages are reported to the
13 12 system. The lump sum payment shall be made within one hundred
13 13 eighty days after the calendar quarter in which the member has
13 14 a break in service. A member who receives a mandatory
13 15 distribution under this subsection shall have sixty days to
13 16 return the distribution to the system and request an increase
13 17 in the member's monthly allowance.
13 18 Sec. 29. NEW SECTION. 97B.49 DORMANT ACCOUNTS.
13 19 1. In the event that all, or any portion, of a retirement
13 20 allowance, death benefit, or other distribution payable to a
13 21 member or a member's designated beneficiary, heirs at law, or
13 22 estate, remains unpaid solely by reason of the inability of
13 23 the system to locate the appropriate payee, the amount payable
13 24 shall not be forfeited but shall be treated as a dormant
13 25 account after the time for making a claim has run.
13 26 2. A dormant account shall revert to the retirement fund
13 27 created in section 97B.7. A dormant account shall be non=
13 28 interest=bearing, and except for keeping a record of such
13 29 account, the system shall not maintain the account. A member
13 30 who has a dormant account and returns to covered employment
13 31 shall have their dormant account reactivated as of the quarter
13 32 they return to covered employment. If the appropriate payee
13 33 contacts the system after the amount payable is treated as a
13 34 dormant account, the appropriate payee may claim such amounts
13 35 by filing a withdrawal application provided by the system.
14 1 The system shall have rulemaking authority to adopt rules
14 2 necessary to implement this section in a just and equitable
14 3 manner.
14 4 3. The system shall ensure that the payment of a dormant
14 5 account as provided in this section meets the requirements of
14 6 section 401(a)(9) of the federal Internal Revenue Code.
14 7 Sec. 30. Section 97B.50, subsection 2, Code Supplement
14 8 2003, is amended to read as follows:
14 9 2. a. A vested member who retires from the retirement
14 10 system due to disability and commences receiving disability
14 11 benefits pursuant to the federal Social Security Act, 42
14 12 U.S.C. } 423 et seq., and who has not reached the normal
14 13 retirement date, shall receive benefits as selected under
14 14 section 97B.51, and shall not have benefits reduced upon
14 15 retirement as required under subsection 1 regardless of
14 16 whether the member has completed thirty or more years of
14 17 membership service. However, the benefits shall be suspended
14 18 during any period in which the member returns to covered
14 19 employment. This section takes effect July 1, 1990, for a
14 20 member meeting the requirements of this paragraph who retired
14 21 from the retirement system at any time after July 4, 1953.
14 22 Eligible members retiring on or after July 1, 2000, are
14 23 entitled to the receipt of retroactive adjustment payments for
14 24 no more than thirty=six months immediately preceding the month
14 25 in which written notice of application for retirement due to
14 26 disability was submitted to received by the system,
14 27 notwithstanding the requirements of subsection 4.
14 28 b. A vested member who retires from the retirement system
14 29 due to disability and commences receiving disability benefits
14 30 pursuant to the federal Railroad Retirement Act, 45 U.S.C. }
14 31 231 et seq., and who has not reached the normal retirement
14 32 date, shall receive benefits as selected under section 97B.51,
14 33 and shall not have benefits reduced upon retirement as
14 34 required under subsection 1 regardless of whether the member
14 35 has completed thirty or more years of membership service.
15 1 However, the benefits shall be suspended during any period in
15 2 which the member returns to covered employment. This section
15 3 takes effect July 1, 1990, for a member meeting the
15 4 requirements of this paragraph who retired from the retirement
15 5 system at any time since July 4, 1953. Eligible members
15 6 retiring on or after July 1, 2000, are entitled to the receipt
15 7 of retroactive adjustment payments for no more than thirty=six
15 8 months immediately preceding the month in which written notice
15 9 of application for retirement due to disability was submitted
15 10 to received by the system, notwithstanding the requirements of
15 11 subsection 4.
15 12 c. A vested member who terminated service due to a
15 13 disability, who has been issued payment for a refund pursuant
15 14 to section 97B.53, and who subsequently commences receiving
15 15 disability benefits as a result of that disability pursuant to
15 16 the federal Social Security Act, 42 U.S.C. } 423 et seq. or
15 17 the federal Railroad Retirement Act, 45 U.S.C. } 231 et seq.,
15 18 may receive credit for membership service for the period
15 19 covered by the refund payment, upon repayment to the system of
15 20 the actuarial cost of receiving service credit for the period
15 21 covered by the refund payment, as determined by the system.
15 22 For purposes of this paragraph, the actuarial cost of the
15 23 service purchase shall be determined as provided in section
15 24 97B.74 97B.80C. The payment to the system as provided in this
15 25 paragraph shall be made within ninety days after July 1, 2000,
15 26 or the date federal disability payments commenced, whichever
15 27 occurs later. For purposes of this paragraph, the date
15 28 federal disability payments commence shall be the date that
15 29 the member actually receives the first such payment,
15 30 regardless of any retroactive payments included in that
15 31 payment. A member who repurchases service credit under this
15 32 paragraph and applies for retirement benefits shall have the
15 33 member's monthly allowance, including retroactive adjustment
15 34 payments, determined in the same manner as provided in
15 35 paragraph "a" or "b", as applicable. This paragraph shall not
16 1 be implemented until the system has received a determination
16 2 letter from the federal internal revenue service approving the
16 3 system's plan's qualified status under Internal Revenue Code
16 4 section 401(a).
16 5 Sec. 31. Section 97B.50, subsection 4, Code Supplement
16 6 2003, is amended by striking the subsection.
16 7 Sec. 32. Section 97B.50A, subsection 5, Code Supplement
16 8 2003, is amended to read as follows:
16 9 5. OFFSET TO ALLOWANCE. Notwithstanding any provisions to
16 10 the contrary in state law, or any applicable contract or
16 11 policy, any amounts which may be paid or payable by the
16 12 employer under any workers' compensation, unemployment
16 13 compensation, employer=paid disability plan, program, or
16 14 policy, or other law to a member, and any disability payments
16 15 the member receives pursuant to the federal Social Security
16 16 Act, 42 U.S.C. } 423 et seq., shall be offset against and
16 17 payable in lieu of any retirement allowance payable pursuant
16 18 to this section on account of the same disability.
16 19 Sec. 33. Section 97B.52, subsection 1, unnumbered
16 20 paragraph 1, Code Supplement 2003, is amended to read as
16 21 follows:
16 22 If a an inactive member, with at least sixteen calendar
16 23 quarters of service credit, or any active member dies prior to
16 24 the member's first month of entitlement, the member's
16 25 beneficiary shall be entitled to receive a death benefit equal
16 26 to the greater of the amount provided in paragraph "a" or "b".
16 27 If an inactive member with less than sixteen calendar quarters
16 28 of service credit dies prior to the member's first month of
16 29 entitlement, the member's beneficiary shall only be entitled
16 30 to receive a death benefit, as a lump sum, equal to the amount
16 31 provided in paragraph "a".
16 32 Sec. 34. Section 97B.52, subsection 5, unnumbered
16 33 paragraph 3, Code Supplement 2003, is amended by striking the
16 34 unnumbered paragraph.
16 35 Sec. 35. Section 97B.52, subsection 7, Code Supplement
17 1 2003, is amended to read as follows:
17 2 7. If a member has not filed a designation of beneficiary
17 3 with the system, the death benefit is payable to the member's
17 4 estate. If no designation has been filed and an estate is not
17 5 probated, the death benefit shall be paid to the surviving
17 6 spouse, if any. If no designation has been filed, no estate
17 7 has been probated, and there is no surviving spouse, the death
17 8 benefit shall be paid to the heirs as provided in this
17 9 subsection. The system shall pay the full amount of a
17 10 member's death benefits to those heirs who have presented a
17 11 claim for such benefits within five years after the member's
17 12 date of death. The system is not liable for the payment of
17 13 any claims by heirs who make themselves known to the system
17 14 more than five years after the date of death of the member.
17 15 Otherwise If a death benefit is not paid as provided by this
17 16 subsection, the death benefit shall remain in the fund.
17 17 Sec. 36. Section 97B.53, subsection 4, Code Supplement
17 18 2003, is amended to read as follows:
17 19 4. A member has not terminated employment for purposes of
17 20 this section if the member accepts commences other covered
17 21 employment within thirty days after receiving the last payment
17 22 of wages for the date employment was terminated with a covered
17 23 employment employer, or if the member begins covered
17 24 employment prior to filing a request for a refund with the
17 25 system.
17 26 Sec. 37. Section 97B.53B, subsection 1, paragraph c,
17 27 subparagraph (2), subparagraph subdivision (c), Code
17 28 Supplement 2003, is amended to read as follows:
17 29 (c) The Prior to January 1, 2002, the portion of any
17 30 distribution that is not includible in the gross income of the
17 31 distributee, determined without regard to the exclusion for
17 32 net unrealized appreciation with respect to employer
17 33 securities.
17 34 Sec. 38. Section 97B.73B, subsection 2, paragraph b, Code
17 35 Supplement 2003, is amended to read as follows:
18 1 b. For a purchase of membership service on or after July
18 2 1, 2002, the actuarial cost of the service purchase in a
18 3 manner as provided in section 97B.73 97B.80C.
18 4 Sec. 39. Section 97B.73B, subsection 2, Code Supplement
18 5 2003, is amended by adding the following new paragraph:
18 6 NEW PARAGRAPH. c. Effective July 1, 2004, a member
18 7 eligible for an increased retirement allowance because of the
18 8 payment of contributions under this section is entitled to
18 9 adjusted payments beginning with the month in which the member
18 10 pays contributions under this section.
18 11 Sec. 40. Section 97B.80, subsection 3, Code Supplement
18 12 2003, is amended to read as follows:
18 13 3. The system shall adjust benefits for a six=month period
18 14 prior to the date the member pays contributions under this
18 15 section if the member is receiving a retirement allowance at
18 16 the time the contribution payment is made. Verification of
18 17 active duty service and payment of contributions shall be made
18 18 to the system. However, a member is not eligible to make
18 19 contributions under this section if the member is receiving,
18 20 is eligible to receive, or may in the future be eligible to
18 21 receive retirement pay from the United States government for
18 22 active duty in the armed forces, except for retirement pay
18 23 granted by the United States government under retired pay for
18 24 nonregular service pursuant to 10 U.S.C. } 12731 == 12739. A
18 25 member receiving retired pay for nonregular service who makes
18 26 contributions under this section shall provide information
18 27 required by the system documenting time periods covered under
18 28 retired pay for nonregular service.
18 29 Sec. 41. Section 97B.80, subsection 4, Code Supplement
18 30 2003, is amended by striking the subsection and inserting in
18 31 lieu thereof the following:
18 32 4. Effective July 1, 2004, a member eligible for an
18 33 increased retirement allowance because of the payment of
18 34 contributions under this section is entitled to adjusted
18 35 payments beginning with the month in which the member pays
19 1 contributions under this section.
19 2 Sec. 42. Section 97B.80C, subsection 1, paragraph a, Code
19 3 Supplement 2003, is amended to read as follows:
19 4 a. "Nonqualified service" means service that is not
19 5 qualified service. and includes, but is not limited to, any of
19 6 the following:
19 7 (1) Full=time volunteer public service in the federal
19 8 peace corps program.
19 9 (2) Public employment comparable to employment covered
19 10 under this chapter in a qualified Canadian governmental entity
19 11 that is an elementary school, secondary school, college, or
19 12 university that is organized, administered, and primarily
19 13 supported by the provincial, territorial, or federal
19 14 governments of Canada, or any combination of the same.
19 15 Sec. 43. Section 97B.80C, subsection 1, paragraph c,
19 16 subparagraph (1), Code Supplement 2003, is amended by adding
19 17 the following new subparagraph subdivisions:
19 18 NEW SUBPARAGRAPH SUBDIVISION. (e) Service as a member of
19 19 the general assembly.
19 20 NEW SUBPARAGRAPH SUBDIVISION. (f) Previous service as a
19 21 county attorney by a part=time county attorney.
19 22 NEW SUBPARAGRAPH SUBDIVISION. (g) Service in public
19 23 employment comparable to employment covered under this chapter
19 24 in another state or in the federal government, or service as a
19 25 member of another public retirement system in this state,
19 26 including but not limited to the teachers insurance and
19 27 annuity association=college retirement equities fund (TIAA=
19 28 CREF), if the member was not retired under that system and has
19 29 no further claim upon a retirement benefit from that other
19 30 public system.
19 31 NEW SUBPARAGRAPH SUBDIVISION. (h) Service as a member of
19 32 the retirement system at any time on or after July 4, 1953, if
19 33 the member received a refund of the member's accumulated
19 34 contributions for that period of membership service.
19 35 NEW SUBPARAGRAPH SUBDIVISION. (i) An approved leave of
20 1 absence which does not constitute service as defined in
20 2 section 97B.1A, which is granted on or after July 1, 1998.
20 3 NEW SUBPARAGRAPH SUBDIVISION. (j) Employment of a person
20 4 who at the time of the employment was not covered by this
20 5 chapter, was employed by a covered employer under this
20 6 chapter, and did not opt out of coverage under this chapter.
20 7 NEW SUBPARAGRAPH SUBDIVISION. (k) Employment of a person
20 8 as an adjunct instructor as defined in section 97B.1A,
20 9 subsection 8.
20 10 Sec. 44. Section 97B.80C, subsection 3, Code Supplement
20 11 2003, is amended to read as follows:
20 12 3. a. A member making contributions for a purchase of
20 13 permissive service credit under this section, except as
20 14 otherwise provided by this subsection, shall make
20 15 contributions in an amount equal to the actuarial cost of the
20 16 permissive service credit purchase. For purposes of this
20 17 subsection, the actuarial cost of the service purchase is an
20 18 amount determined by the system in accordance with actuarial
20 19 tables, as reported to the system by the system's actuary,
20 20 which reflects the actuarial cost necessary to fund an
20 21 increased retirement allowance resulting from the purchase of
20 22 permissive service credit.
20 23 b. For a member making contributions for a purchase of
20 24 permissive service credit for qualified service as described
20 25 in subsection 1, paragraph "c", subparagraph (1), subparagraph
20 26 subdivision (e), under this section, the member shall make
20 27 contributions in an amount equal to forty percent of the
20 28 actuarial cost of the service purchase. There is appropriated
20 29 from the general fund of the state to the system an amount
20 30 sufficient to pay sixty percent of the actuarial cost of the
20 31 service purchase by a member pursuant to this paragraph.
20 32 c. For a member making contributions for a purchase of
20 33 permissive service credit for qualified service as described
20 34 in subsection 1, paragraph "c", subparagraph (1), subparagraph
20 35 subdivision (f), under this section, the member shall make
21 1 contributions in an amount equal to forty percent of the
21 2 actuarial cost of the service purchase. Upon notification of
21 3 the applicable county board of supervisors of the member's
21 4 election, the county board of supervisors shall pay to the
21 5 system an amount sufficient to pay sixty percent of the
21 6 actuarial cost of the service purchase by a member pursuant to
21 7 this paragraph.
21 8 d. For purposes of this subsection, the actuarial cost of
21 9 the service purchase is an amount determined by the system in
21 10 accordance with actuarial tables, as reported to the system by
21 11 the system's actuary, which reflects the actuarial cost
21 12 necessary to fund an increased retirement allowance resulting
21 13 from the purchase of permissive service credit.
21 14 Sec. 45. Section 97B.80C, Code Supplement 2003, is amended
21 15 by adding the following new subsections:
21 16 NEW SUBSECTION. 3A. Effective July 1, 2004, a member
21 17 eligible for an increased retirement allowance because of the
21 18 payment of contributions under this or any other section
21 19 providing for the purchase of service credit is entitled to
21 20 adjusted payments beginning with the month in which the member
21 21 pays contributions under the applicable section.
21 22 NEW SUBSECTION. 3B. Effective July 1, 2004, a purchase of
21 23 service made in accordance with this or any other section
21 24 providing for the purchase of service credit by a retired
21 25 reemployed member shall be applied to the member's original
21 26 retirement allowance. The member is eligible to receive
21 27 adjustment payments beginning with the month of the purchase.
21 28 NEW SUBSECTION. 3C. A member who is entitled to a benefit
21 29 from another public retirement system and wishes to purchase
21 30 the service covered by that public retirement system must
21 31 waive, on a form provided by the Iowa public employees'
21 32 retirement system, all rights to a retirement benefit under
21 33 that other public system before purchasing credit in this
21 34 system for the period of service covered by that other public
21 35 system. The waiver must be accepted by the other public
22 1 system. If the waiver is not obtained, a member may buy up to
22 2 twenty quarters of such service credit. In no event can a
22 3 member receive more than one service credit for any given
22 4 calendar quarter.
22 5 Sec. 46. Sections 97B.72, 97B.72A, 97B.73, 97B.73A,
22 6 97B.74, 97B.75, 97B.80A, 97B.80B, and 97B.81, Code Supplement
22 7 2003, are repealed.
22 8 Sec. 47. EFFECTIVE DATE == RETROACTIVE APPLICABILITY. The
22 9 section of this Act amending section 97B.53B, subsection 1,
22 10 paragraph "c", being deemed of immediate importance, takes
22 11 effect upon enactment and is retroactively applicable to
22 12 January 1, 2002, and is applicable on and after that date.
22 13 DIVISION III
22 14 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
22 15 Sec. 48. Section 411.5, Code 2003, is amended by adding
22 16 the following new subsection:
22 17 NEW SUBSECTION. 14. MEDICAL RECORDS. A physician or
22 18 surgeon, physician assistant, advanced registered nurse
22 19 practitioner, or mental health professional who provides
22 20 records to the system in connection with the application by a
22 21 member for disability retirement under this chapter shall be
22 22 entitled to charge a fee for production of the records. The
22 23 fee for copies of any records shall not exceed the actual cost
22 24 of production. The board of trustees may, by rule, limit the
22 25 amount to be paid for such copies.
22 26 Sec. 49. Section 411.6, subsection 7, unnumbered paragraph
22 27 1, Code 2003, is amended to read as follows:
22 28 Re=examination Reexamination of beneficiaries retired on
22 29 account of disability. Once each year during the first five
22 30 years following the retirement of a member on a disability
22 31 retirement allowance, and once in every three=year period
22 32 thereafter, the The system may, and upon the member's
22 33 application shall, require any disability beneficiary who has
22 34 not yet attained age fifty=five to undergo a medical
22 35 examination at a place designated by the medical board. The
23 1 examination shall be made by the medical board or in special
23 2 cases, by an additional physician or physicians designated by
23 3 such board. If any disability beneficiary who has not
23 4 attained the age of fifty=five refuses to submit to the
23 5 medical examination, the member's allowance may be
23 6 discontinued until withdrawal of such refusal, and if the
23 7 refusal continues for one year all rights in and to the
23 8 member's pension may be revoked by the system. For a
23 9 disability beneficiary who has not attained the age of fifty=
23 10 five and whose entitlement to a disability retirement
23 11 commenced on or after July 1, 2000, the medical board may, as
23 12 part of the examination required by this subsection, suggest
23 13 appropriate medical treatment or rehabilitation if, in the
23 14 opinion of the medical board, the recommended treatment or
23 15 rehabilitation would likely restore the disability beneficiary
23 16 to duty.
23 17 Sec. 50. Section 411.6, subsection 7, paragraph a,
23 18 unnumbered paragraph 2, Code 2003, is amended to read as
23 19 follows:
23 20 A beneficiary retired under this lettered paragraph, in
23 21 order to be eligible for continued receipt of retirement
23 22 benefits, shall no later than May 15 of each year submit to
23 23 the system a copy of the beneficiary's federal individual
23 24 income tax return for the preceding year. The beneficiary
23 25 shall also submit, within a reasonable period of time, any
23 26 documentation requested by the system that is determined to be
23 27 necessary by the system to determine the beneficiary's gross
23 28 wages.
23 29 Sec. 51. Section 411.6, subsection 17, paragraphs a and b,
23 30 Code 2003, are amended to read as follows:
23 31 a. An individual who is otherwise entitled to a retirement
23 32 allowance under this chapter shall not receive a retirement
23 33 allowance for any month during which both of the following
23 34 conditions exist:
23 35 (1) The individual is confined in a jail, prison, or other
24 1 correctional facility pursuant to the individual's conviction
24 2 of a felony.
24 3 (2) The individual has a spouse, or a child or children,
24 4 as defined in section 411.1. Payments to the individual shall
24 5 be reinstated prospectively effective with the date of the
24 6 individual's release from confinement.
24 7 b. The amount of the retirement allowance not paid to the
24 8 individual under paragraph "a" shall be paid in the following
24 9 order of priority:
24 10 (1) To the individual's spouse, if any.
24 11 (2) If there is no spouse, then to the individual's child
24 12 or children, as defined in section 411.1, if any.
24 13 (3) If there is no spouse or child, then no retirement
24 14 allowance shall be paid for any month of the individual's
24 15 confinement.
24 16 Sec. 52. Section 411.6B, subsection 1, Code 2003, is
24 17 amended to read as follows:
24 18 1. As used in this section, unless the context otherwise
24 19 requires, and to the extent permitted by the internal revenue
24 20 service:
24 21 a. "Direct rollover" means a payment by the system to the
24 22 eligible retirement plan specified by the member or the
24 23 member's surviving spouse, or the member's alternate payee
24 24 under a marital property order who is the member's spouse or
24 25 former spouse.
24 26 b. "Eligible retirement plan" means either any of the
24 27 following that accepts an eligible rollover distribution from
24 28 a member, or a member's surviving spouse, or a member's
24 29 alternate payee:
24 30 (1) An individual retirement account in accordance with
24 31 section 408(a) of the federal Internal Revenue Code.
24 32 (2) An individual retirement annuity in accordance with
24 33 section 408(b) of the federal Internal Revenue Code.
24 34 In addition, an "eligible retirement plan" includes an
24 35 annuity plan in accordance with section 403(a) of the federal
25 1 Internal Revenue Code, or a qualified trust in accordance with
25 2 section 401(a) of the federal Internal Revenue Code, that
25 3 accepts an eligible rollover distribution from a member.
25 4 Effective January 1, 2002, the term "eligible retirement plan"
25 5 also includes an annuity contract described in section 403(b)
25 6 of the federal Internal Revenue Code, and an eligible plan
25 7 under section 457(b) of the federal Internal Revenue Code
25 8 which is maintained by a state, political subdivision of a
25 9 state, or any agency or instrumentality of a state or
25 10 political subdivision of a state that chooses to separately
25 11 account for amounts rolled over into such eligible retirement
25 12 plan from the system.
25 13 c. "Eligible rollover distribution" means all or any
25 14 portion of a member's account, except that an eligible
25 15 rollover distribution does not include any of the following:
25 16 (1) A distribution that is one of a series of
25 17 substantially equal periodic payments, which occur annually or
25 18 more frequently, made for the life or life expectancy of the
25 19 distributee or the joint lives or joint life expectancies of
25 20 the distributee and the distributee's designated beneficiary,
25 21 or made for a specified period of ten years or more.
25 22 (2) A distribution to the extent that the distribution is
25 23 required pursuant to section 401(a)(9) of the federal Internal
25 24 Revenue Code.
25 25 (3) The portion of any distribution that is not includible
25 26 in the gross income of the distributee, determined without
25 27 regard to the exclusion for net unrealized appreciation with
25 28 respect to employer securities. Provided, however, that
25 29 effective January 1, 2002, such distributions may be directly
25 30 rolled over to an individual retirement account described in
25 31 federal Internal Revenue Code section 408(a) or 408(b), a
25 32 qualified defined contribution plan described in federal
25 33 Internal Revenue Code section 401(a), or a qualified annuity
25 34 plan described in federal Internal Revenue Code section
25 35 403(a), if such plan agrees to separately account for the
26 1 after=tax amount so rolled over.
26 2 (4) A distribution of less than two hundred dollars of
26 3 taxable income.
26 4 Sec. 53. Section 411.22, subsection 1, paragraph b, Code
26 5 2003, is amended to read as follows:
26 6 b. A sum sufficient to pay the retirement system the
26 7 present worth, computed at the interest rate provided in
26 8 section 535.3 for court judgments and decrees assumption
26 9 adopted by the system pursuant to section 411.5, subsection 9,
26 10 of the future payments of such benefits, for which the
26 11 retirement system is liable, but the sum is not a final
26 12 adjudication of the future payments which the member is
26 13 entitled to receive.
26 14 Sec. 54. Section 411.31, subsection 1, Code 2003, is
26 15 amended by adding the following new paragraph:
26 16 NEW PARAGRAPH. e. "Refund liability" means the amount the
26 17 member may elect to withdraw from the former system under
26 18 section 97A.16.
26 19 Sec. 55. Section 411.31, subsection 2, Code 2003, is
26 20 amended to read as follows:
26 21 2. Commencing July 1, 1996, a vested member of an eligible
26 22 retirement system who terminates employment covered by one
26 23 eligible retirement system and, within one year, commences
26 24 employment covered by the other eligible retirement system may
26 25 elect to transfer the greater of the average accrued benefit
26 26 or refund liability earned from the former system to the
26 27 current system. The member shall file an application with the
26 28 current system for transfer of the greater of the average
26 29 accrued benefit or refund liability within ninety days of the
26 30 commencement of employment with the current system.
26 31 Sec. 56. Section 411.31, subsection 4, Code 2003, is
26 32 amended to read as follows:
26 33 4. Upon receipt of an application for transfer of the
26 34 average accrued benefit as provided in this section, the
26 35 current system shall calculate the average accrued benefit and
27 1 the refund liability and the former system shall transfer to
27 2 the current system assets in an amount equal to the greater of
27 3 the average accrued benefit or refund liability. Once the
27 4 transfer of the average accrued benefit is completed, the
27 5 member's service under the former system shall be treated as
27 6 membership service under the current system for purposes of
27 7 this chapter and chapter 97A.
27 8 Sec. 57. EFFECTIVE DATE == RETROACTIVE APPLICABILITY. The
27 9 section of this Act amending section 411.6B, subsection 1,
27 10 being deemed of immediate importance, takes effect upon
27 11 enactment and is retroactively applicable to January 1, 2002,
27 12 and is applicable on and after that date.
27 13 EXPLANATION
27 14 This bill makes numerous changes to public retirement
27 15 systems, including the public safety peace officers'
27 16 retirement, accident, and disability system, the Iowa public
27 17 employees' retirement system, and the statewide fire and
27 18 police retirement system. The bill may include a state
27 19 mandate as defined in Code section 25B.3. The state mandate
27 20 funding requirement in Code section 25B.2, however, does not
27 21 apply to public employee retirement systems. The changes to
27 22 each public retirement system are as follows:
27 23 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT, ACCIDENT, AND
27 24 DISABILITY SYSTEM (PORS)
27 25 Code section 97A.17, concerning portability of service
27 26 between membership in PORS and the statewide fire and police
27 27 retirement system under Code chapter 411, is amended. The
27 28 change provides that the amount transferred from the former to
27 29 the new or current retirement system to obtain service credit
27 30 in the current system is the greater of the average accrued
27 31 benefit earned or the amount the member could receive as a
27 32 refund from terminating service under the former system.
27 33 Under current law, only the average accrued benefit amount is
27 34 considered and transferred. A corresponding change to Code
27 35 section 411.31 is also made.
28 1 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (IPERS)
28 2 Code section 97B.1A, subsection 11, defining first month of
28 3 entitlement, is amended to require that a member making
28 4 application for a retirement allowance designate the member's
28 5 intended first month of entitlement.
28 6 Code section 97B.1A, subsection 20, defining service, is
28 7 amended to provide that service does not include temporary
28 8 employment during any quarter the member is otherwise on an
28 9 unpaid leave of absence that is not authorized by the federal
28 10 Family and Medical Leave Act.
28 11 Code section 97B.1A, subsection 24, paragraphs "a" and "c",
28 12 are amended to change the date for changing the method of
28 13 determining a member's three=year average covered wage to a
28 14 calculation based on the member's highest 12 consecutive
28 15 quarters of service from July 1, 2005, to July 1, 2008.
28 16 Code section 97B.1A, subsection 25, is amended to provide
28 17 that an inactive member of IPERS does not become vested under
28 18 IPERS solely by reaching age 55 as of July 1, 2005.
28 19 Code section 97B.1A, subsection 26, concerning the
28 20 definition of wages, is amended to provide that payments
28 21 received from an employment dispute are not wages for purposes
28 22 of calculating a retirement allowance. In addition, the
28 23 subsection is amended to provide that wages to a member on or
28 24 after the member's retirement can be considered covered wages
28 25 pursuant to rules adopted by IPERS and payments made for the
28 26 difference between single and family insurance coverage are
28 27 also considered covered wages.
28 28 New Code section 97B.9A permits IPERS to waive the
28 29 collection of benefits overpayments, contribution
28 30 underpayments, or debts owed the system, if they occurred more
28 31 than three years before the overpayment, underpayment, or debt
28 32 is discovered if there is no evidence of fraud or misconduct.
28 33 Code section 97B.14A, concerning wage reporting, is amended
28 34 relating to the issue of whether wages reported appear to be a
28 35 distortion of the normal wage progression pattern for an
29 1 employee. The change defines this distortion as an increase
29 2 of 10 percent or more between wages reported for any two
29 3 consecutive years. The change permits IPERS to adjust or
29 4 reallocate a member's wages if the distortion of the normal
29 5 wage progression resulted from covering compensation that is
29 6 excluded from the definition of covered wages or from a change
29 7 in the schedule of wage payments for an individual.
29 8 Code section 97B.17, concerning records maintained by
29 9 IPERS, is amended to permit storage and acceptance of
29 10 electronic records as permitted under Code chapter 554D.
29 11 Code section 97B.38 is amended to permit IPERS to charge an
29 12 administrative fee for the cost of performing its duties under
29 13 this chapter if the cost is more than de minimis.
29 14 Code section 97B.40, concerning fraud, is amended to
29 15 provide that if IPERS believes a person may have engaged in
29 16 fraud, IPERS can refer the matter to the state auditor and to
29 17 the appropriate law enforcement authorities.
29 18 Code section 97B.42, concerning membership in other
29 19 retirement systems, is amended to provide that an IPERS member
29 20 may also participate in certain supplemental savings plans,
29 21 including a supplemental defined contribution plan qualified
29 22 under Internal Revenue Code section 401(a), a tax=deferred
29 23 annuity qualified under Internal Revenue Code section 403(b),
29 24 or an eligible deferred compensation plan qualified under
29 25 Internal Revenue Code section 457, regardless of whether
29 26 contributions to such supplemental plans are characterized as
29 27 employer contributions or employee contributions, and subject
29 28 to the applicable limits set forth in the Internal Revenue
29 29 Code for such plans. The change does not permit a
29 30 supplemental defined benefit plan. Under current law, only a
29 31 deferred compensation plan or tax=sheltered annuity are
29 32 permitted.
29 33 Code sections 97B.43, 97B.45, 97B.46, 97B.47, 97B.48,
29 34 97B.50, 97B.73B, 97B.80, and 97B.80C, concerning the payment
29 35 of a retirement allowance, or adjusted retirement allowance,
30 1 under Code chapter 97B, are amended to eliminate the ability
30 2 of an IPERS member to request and obtain up to six months of
30 3 retroactive payments of an allowance. The sections are
30 4 amended to only provide for payments once an application for
30 5 an allowance, or adjustment of allowance, is made to the
30 6 system.
30 7 Code section 97B.48, concerning payment of allowances, is
30 8 amended. Subsection 1 is amended to provide that if an annual
30 9 retirement benefit would be less than $600, the payment must
30 10 be in a lump sum equal to the sum of the member's and
30 11 employer's accumulated contributions. Subsection 2 is amended
30 12 to provide that the first monthly payment of a retirement
30 13 allowance shall be in the member's first month of entitlement.
30 14 Code section 97B.48 is also amended by adding new
30 15 subsection 6, which provides that, effective no later than
30 16 July 1, 2006, if the accumulated contributions of a member who
30 17 has had a five=year break in service or is deceased are less
30 18 than $3,000, that amount shall be paid to the member, or the
30 19 member's beneficiary, in full satisfaction of the member's
30 20 claims under IPERS. A member or beneficiary has 60 days to
30 21 repay the distribution and regain rights under IPERS.
30 22 Code section 97B.48 is also amended by adding new
30 23 subsection 7, which provides that beginning July 1, 2005,
30 24 IPERS will charge a processing fee to members who elect to
30 25 receive paper warrants in lieu of electronic deposits of their
30 26 IPERS retirement allowance.
30 27 Code section 97B.48A is amended to provide a mandatory
30 28 distribution of a member's and employer's accumulated
30 29 contributions not used in the calculation of the member's
30 30 retirement for retired reemployed members who fail to
30 31 annuitize or receive a lump sum distribution of their
30 32 reemployment account balance within one year after terminating
30 33 the reemployment if the increase in the member's retirement
30 34 allowance based on this amount would be less than $600 per
30 35 year. A member has 60 days to repay the distribution and
31 1 regain rights under IPERS.
31 2 New Code section 97B.49 provides for the handling of
31 3 dormant accounts. The new Code section provides that if any
31 4 retirement allowance, death benefit, or other payment remains
31 5 unpaid solely by reason of the inability of the system to
31 6 locate the appropriate payee, the amount payable shall not be
31 7 forfeited but shall be treated as a dormant account after the
31 8 time for making a claim has run. Moneys in a dormant account
31 9 are non=interest=bearing and are reverted to the IPERS trust
31 10 fund. If the appropriate payee returns to covered employment,
31 11 or makes application for payment with the system, the dormant
31 12 account will be reactivated. Current provisions dealing with
31 13 the inability to locate a payee in Code sections 97B.48 and
31 14 97B.52 are eliminated by the bill.
31 15 Code section 97B.50A is amended to provide that the offset
31 16 concerning disability payments for special service members for
31 17 employer=provided disability benefits includes payments under
31 18 an employer=provided disability plan or insurance policy.
31 19 Code section 97B.52, subsection 1, is amended to provide
31 20 that the option of receiving an IPERS preretirement death
31 21 benefit, which is the actuarial present value of the member's
31 22 accrued IPERS benefit, is only available to a beneficiary of
31 23 an inactive member if the inactive member had at least 16
31 24 quarters of service credit.
31 25 Code section 97B.52, subsection 5, is amended to delete
31 26 provisions providing for the reinstatement of previously
31 27 forfeited death benefits if the appropriate payee is located
31 28 after the benefit is restored.
31 29 Code section 97B.52, subsection 7, is amended to permit
31 30 IPERS to pay the share of a death benefit attributable to
31 31 heirs who have not presented claims for benefit to the heirs
31 32 who have presented such claims, if such claims are not
31 33 presented within five years after the date of death.
31 34 Code section 97B.53, subsection 4, concerning refund
31 35 options for members terminating employment, is amended to
32 1 provide that the 30=day period of required severance from
32 2 covered employment begins on the termination date, and not on
32 3 the date the last wages were paid.
32 4 Code section 97B.53B, concerning rollovers of member's
32 5 accounts, is amended to permit nontaxable amounts to be rolled
32 6 over into an eligible retirement plan beginning January 1,
32 7 2002. This provision takes effect upon enactment and is
32 8 retroactively applicable to January 1, 2002.
32 9 Code section 97B.80C, concerning purchases of permissive
32 10 service, is amended to cover all purchases of service credit
32 11 under the system, except for purchases by patient advocates
32 12 under Code section 97B.73B, veteran's credit under Code
32 13 section 97B.80, and direct rollovers and transfers under Code
32 14 section 97B.82. Current Code sections specifically permitting
32 15 purchases of service for members of the general assembly under
32 16 Code section 97B.72, former legislative service under Code
32 17 section 97B.72A, members from other public systems under Code
32 18 section 97B.73, part=time county attorneys under Code section
32 19 97B.73B, a buy=back of refunded service under Code section
32 20 97B.74, prior service before January 1, 1946, under Code
32 21 section 97B.75, public employment service credit under Code
32 22 section 97B.80A, volunteer public service under Code section
32 23 97B.80B, and leaves of absence under Code section 97B.81 are
32 24 repealed by the bill. However, in each case, the bill amends
32 25 Code section 97B.80C to permit purchases of service as
32 26 described in each repealed section to the same extent and in
32 27 essentially the same manner as currently provided.
32 28 Code section 97B.80C is also amended by adding new
32 29 subsections. New subsection 3A provides that no retroactive
32 30 adjustment in benefits will be made for a purchase of service
32 31 credit under this section. New subsection 3B directs IPERS to
32 32 apply a service purchase under this section only to the
32 33 member's original retirement annuity. New subsection 3C
32 34 provides that a member may purchase service covered under
32 35 another public employer's retirement system without obtaining
33 1 a waiver from that system, but not more than 20 such quarters
33 2 may be purchased without the waiver.
33 3 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
33 4 Code section 411.5 is amended to provide that the amount
33 5 medical providers may charge for providing copies of medical
33 6 records in connection with an application by a member for a
33 7 disability is limited to the cost of producing the records.
33 8 The change also permits the board of trustees to limit the
33 9 cost for copies by rule.
33 10 Code section 411.6, subsection 7, concerning the
33 11 reexamination of disability retirees, is amended. The change
33 12 eliminates current time references regarding the timing and
33 13 frequency of medical examinations of disability retirees under
33 14 age 55 following a disability determination and permits the
33 15 retirement system to require an examination upon its
33 16 determination. This subsection is also amended to provide
33 17 that a beneficiary, in addition to submitting the member's tax
33 18 return each year, shall submit such other documentation to the
33 19 system as the system requests to determine the beneficiary's
33 20 gross wages.
33 21 Code section 411.6, subsection 17, concerning payments to
33 22 incarcerated individuals, is amended to provide that payment
33 23 of a retirement allowance to the individual is suspended while
33 24 the individual is incarcerated, regardless of whether the
33 25 individual has a spouse or children, and, if the individual
33 26 has no spouse or children, no retirement allowance will be
33 27 paid for any month the individual is incarcerated.
33 28 Code section 411.6B, concerning rollovers of members'
33 29 accounts, is amended to allow a rollover of a member's account
33 30 into an annuity contract or other eligible plan, as provided
33 31 by section 403(b) and 457(b) of the Internal Revenue Code,
33 32 respectively. The change also permits nontaxable amounts to
33 33 be rolled over into an eligible retirement plan.
33 34 Code section 411.22, regarding the system's subrogation
33 35 rights, is amended to provide that the interest rate
34 1 assumption adopted by the system, and not the court judgment
34 2 and decree interest rate provided in Code section 535.3, shall
34 3 be used in calculating the system's subrogation amount.
34 4 Code section 411.31, concerning portability of service
34 5 between membership in PORS and the statewide fire and police
34 6 retirement system under Code chapter 411, is amended in the
34 7 same manner as was done in Code section 97A.17 and described
34 8 in the explanation to the change in Code section 97A.17.
34 9 LSB 5332SV 80
34 10 ec/sh/8