House File 2053 - Introduced
HOUSE FILE
BY FREVERT
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning the purchase of creditable service for members
2 of the Iowa department of public safety peace officers'
3 retirement, accident, and disability system for certain prior
4 service as a peace officer in the department of public safety
5 and for city fire fighters and police officers under the
6 statewide fire and police retirement system.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
8 TLSB 5694HH 81
9 ec/gg/14
PAG LIN
1 1 Section 1. NEW SECTION. 97A.10 PURCHASE OF ELIGIBLE
1 2 SERVICE CREDIT.
1 3 1. For purposes of this section:
1 4 a. "Eligible qualified service" means as follows:
1 5 (1) Service with the department prior to July 1, 1994, in
1 6 a position as a gaming enforcement officer, fire prevention
1 7 inspector peace officer, or as an employee of the division of
1 8 capitol police except clerical workers.
1 9 (2) Service as a member of a city fire retirement system
1 10 or police retirement system operating under chapter 411 prior
1 11 to January 1, 1992, for which service was not eligible to be
1 12 transferred to this system pursuant to section 97A.17.
1 13 Eligible qualified service under this paragraph "a" does
1 14 not include service if the receipt of credit for such service
1 15 would result in the member receiving a retirement benefit
1 16 under more than one retirement plan for the same period of
1 17 service.
1 18 b. "Permissive service credit" means credit that will be
1 19 recognized by the retirement system for purposes of
1 20 calculating a member's benefit, for which the member did not
1 21 previously receive service credit in the retirement system,
1 22 and for which the member voluntarily contributes to the
1 23 retirement system the amount required by the retirement
1 24 system, not in excess of the amount necessary to fund the
1 25 benefit attributable to such service.
1 26 2. An active member of the system may make contributions
1 27 to the system to purchase up to the maximum amount of
1 28 permissive service credit for eligible qualified service as
1 29 determined by the system, pursuant to Internal Revenue Code
1 30 section 415(n) and the requirements of this section. A member
1 31 seeking to purchase permissive service credit pursuant to this
1 32 section shall file a written application along with
1 33 appropriate documentation with the department by July 1, 2007.
1 34 3. A member making contributions for a purchase of
1 35 permissive service credit for eligible qualified service under
2 1 this section shall make contributions in an amount equal to
2 2 the actuarial cost of the permissive service credit purchase.
2 3 For purposes of this subsection, the actuarial cost of the
2 4 permissive service credit purchase is an amount determined by
2 5 the system in accordance with actuarial tables, as reported to
2 6 the system by the system's actuary, which reflects the
2 7 actuarial cost necessary to fund an increased retirement
2 8 allowance resulting from the purchase of permissive service
2 9 credit.
2 10 EXPLANATION
2 11 This bill permits current members of the Iowa department of
2 12 public safety peace officers' retirement, accident, and
2 13 disability system (PORS) to purchase service credit for
2 14 eligible qualified service. The bill defines "eligible
2 15 qualified service" to include service as a gaming enforcement
2 16 officer, fire inspector, or nonclerical employee of the
2 17 capitol police prior to July 1, 1994, that was not covered
2 18 under PORS in which the member is not otherwise eligible to
2 19 receive a retirement allowance.
2 20 In addition, "eligible qualified service" includes service
2 21 as a member of a city fire or police retirement system under
2 22 chapter 411 prior to January 1, 1992, that was not eligible to
2 23 be transferred to PORS and for which the member is also not
2 24 otherwise eligible to receive a retirement allowance.
2 25 The bill provides that the member is required to pay the
2 26 full actuarial cost of the service purchase and must make
2 27 application for the purchase of service by July 1, 2007. The
2 28 actuarial cost of the service purchase is defined as the cost
2 29 necessary to fund an increased retirement allowance resulting
2 30 from the purchase of the permissive service credit.
2 31 LSB 5694HH 81
2 32 ec:rj/gg/14