House File 72 - Introduced
HOUSE FILE
BY CHAMBERS
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for contributions to the Iowa public employees'
2 retirement system.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1313YH 81
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PAG LIN
1 1 Section 1. Section 97B.11, Code 2005, is amended to read
1 2 as follows:
1 3 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.
1 4 1. Each employer shall deduct from the wages of each
1 5 member of the retirement system a contribution in the amount
1 6 of three and seven=tenths percent the applicable employee
1 7 percentage of the covered wages paid by the employer, until
1 8 the member's termination from employment. The contributions
1 9 of the employer shall be in the amount of five and seventy=
1 10 five hundredths percent the applicable employer percentage of
1 11 the covered wages of the member.
1 12 2. For purposes of this section, the "applicable employee
1 13 percentage" is as follows:
1 14 a. Prior to July 1, 2005, three and seven=tenths percent.
1 15 b. Beginning on or after July 1, 2005, but before July 1,
1 16 2006, four and one=fifth percent.
1 17 c. Beginning on or after July 1, 2006, but before July 1,
1 18 2007, four and seven=tenths percent.
1 19 d. Beginning on or after July 1, 2007, but before July 1,
1 20 2008, five and one=fifth percent.
1 21 e. Beginning on or after July 1, 2008, five and seventy=
1 22 five hundredths percent.
1 23 3. For purposes of this section, the "applicable employer
1 24 percentage" is five and seventy=five hundredths percent.
1 25 Sec. 2. Section 97B.49B, subsection 3, Code 2005, is
1 26 amended to read as follows:
1 27 3. ADDITIONAL CONTRIBUTIONS.
1 28 a. Annually, the system shall actuarially determine the
1 29 cost of the additional benefits provided for members covered
1 30 under this section as a percentage of the covered wages of the
1 31 employees covered by this section. Sixty Notwithstanding any
1 32 provision of section 97B.11 to the contrary, sixty percent of
1 33 the cost shall be paid by the employers of employees covered
1 34 under this section and forty percent of the cost shall be paid
1 35 by the employees. The employer and employee contributions
2 1 required under this paragraph are in addition to the shall be
2 2 treated as contributions paid under sections 97B.11 and
2 3 97B.11A.
2 4 b. (1) For the fiscal year commencing July 1, 1988, and
2 5 each succeeding fiscal year, there is appropriated from the
2 6 state fish and game protection fund to the system the amount
2 7 necessary to pay the employer share of the cost of the
2 8 additional benefits provided to employees covered under
2 9 subsection 1, paragraph "e", subparagraph (1).
2 10 (2) Annually, during each fiscal year commencing with the
2 11 fiscal year beginning July 1, 1988, each applicable city shall
2 12 pay to the system the amount necessary to pay the employer
2 13 share of the cost of the additional benefits provided to
2 14 employees of that city covered under subsection 1, paragraph
2 15 "e", subparagraphs (2) and (4).
2 16 (3) For the fiscal year commencing July 1, 1988, and each
2 17 succeeding fiscal year, the department of corrections shall
2 18 pay to the system from funds appropriated to the Iowa
2 19 department of corrections, the amount necessary to pay the
2 20 employer share of the cost of the additional benefits provided
2 21 to employees covered under subsection 1, paragraph "e",
2 22 subparagraph (3).
2 23 (4) For the fiscal year commencing July 1, 1990, and each
2 24 succeeding fiscal year, the state department of transportation
2 25 shall pay to the system, from funds appropriated to the state
2 26 department of transportation from the road use tax fund and
2 27 the primary road fund, the amount necessary to pay the
2 28 employer share of the cost of the additional benefits provided
2 29 to employees covered under subsection 1, paragraph "e",
2 30 subparagraph (5).
2 31 (5) For the fiscal year commencing July 1, 1992, and each
2 32 succeeding fiscal year, the department of public safety shall
2 33 pay to the system from funds appropriated to the department of
2 34 public safety, the amount necessary to pay the employer share
2 35 of the cost of the additional benefits provided to a fire
3 1 prevention inspector peace officer pursuant to subsection 1,
3 2 paragraph "e", subparagraph (6).
3 3 (6) For the fiscal year commencing July 1, 1994, and each
3 4 succeeding fiscal year through the fiscal year ending June 30,
3 5 1998, each judicial district department of correctional
3 6 services shall pay to the system from funds appropriated to
3 7 that judicial district department of correctional services,
3 8 the amount necessary to pay the employer share of the cost of
3 9 the additional benefits provided to employees of a judicial
3 10 district department of correctional services who are employed
3 11 as a probation officer III or a parole officer III.
3 12 (7) For the fiscal year commencing July 1, 2004, and each
3 13 succeeding fiscal year, there is appropriated from the general
3 14 fund of the state to the system, from funds not otherwise
3 15 appropriated, an amount necessary to pay the employer share of
3 16 the cost of the additional benefits provided to airport fire
3 17 fighters under this section.
3 18 Sec. 3. Section 97B.49C, subsection 3, paragraph a, Code
3 19 2005, is amended to read as follows:
3 20 a. Annually, the system shall actuarially determine the
3 21 cost of the benefits provided for members covered under this
3 22 section as a percentage of the covered wages of the employees
3 23 covered by this section. Fifty Notwithstanding any provision
3 24 of section 97B.11 to the contrary, fifty percent of the cost
3 25 shall be paid by the employers of employees covered under this
3 26 section and fifty percent of the cost shall be paid by the
3 27 employees. The employer and employee contributions required
3 28 under this paragraph are in lieu of the shall be treated as
3 29 contributions paid under sections 97B.11 and 97B.11A.
3 30 Sec. 4. Section 97B.50A, subsection 12, Code 2005, is
3 31 amended to read as follows:
3 32 12. ADDITIONAL CONTRIBUTIONS. The expenses incurred in
3 33 the administration of this section by the system shall be paid
3 34 through additional contributions as determined pursuant to
3 35 section 97B.49B, subsection 3, or section 97B.49C, subsection
4 1 3, as applicable.
4 2 EXPLANATION
4 3 This bill makes changes to the Iowa public employees'
4 4 retirement system (IPERS) relating to contributions made to
4 5 the system by employees.
4 6 Code section 97B.11 is amended to increase, over a four=
4 7 year period beginning July 1, 2005, contributions to the
4 8 system from the employee. The current employer rate of 5.75
4 9 percent is maintained by the bill. Currently, the employee
4 10 rate is 3.7 percent of a member's covered wages. The bill
4 11 increases the employee percentage by one=half percent each
4 12 fiscal year beginning July 1, 2005, July 1, 2006, and July 1,
4 13 2007. The bill increases the rate by .55 percent for the
4 14 fiscal year beginning July 1, 2008, leaving a 5.75 percent
4 15 employee rate for each year beginning on or after July 1,
4 16 2008. The bill makes conforming changes to the Code sections
4 17 providing for the contributions paid by special service
4 18 members of IPERS to retain the current contribution rate
4 19 calculation for these members.
4 20 LSB 1313YH 81
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