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