Senate File 2018 - Introduced
SENATE FILE
BY KIBBIE
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning the purchase of service under the Iowa public
2 employees' retirement system and the Iowa department of public
3 safety peace officers' retirement, accident, and disability
4 system.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 5696SS 81
7 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 Sec. 2. Section 97B.80C, subsection 3, Code 2005, is
2 11 amended by adding the following new paragraph:
2 12 NEW PARAGRAPH. e. For a member making contributions for a
2 13 purchase of permissive service credit for qualified service as
2 14 described in subsection 1, paragraph "c", subparagraph (1),
2 15 subparagraph subdivision (h), the member shall receive a
2 16 credit against the actuarial cost of the service purchase
2 17 equal to the amount of the member's employer's accumulated
2 18 contributions which were not paid to the member as a refund
2 19 pursuant to section 97B.53 plus interest as calculated
2 20 pursuant to section 97B.70.
2 21 EXPLANATION
2 22 This bill concerns the purchase of service under the Iowa
2 23 public employees' retirement system (IPERS) and the Iowa
2 24 department of public safety peace officers' retirement,
2 25 accident, and disability system (PORS).
2 26 New Code section 97A.10 permits current members of PORS to
2 27 purchase service credit for eligible qualified service. The
2 28 bill defines "eligible qualified service" to include service
2 29 as a gaming enforcement officer, fire inspector, or
2 30 nonclerical employee of the capitol police prior to July 1,
2 31 1994, that was not covered under PORS in which the member is
2 32 not otherwise eligible to receive a retirement allowance. In
2 33 addition, "eligible qualified service" includes service as a
2 34 member of a city fire or police retirement system under
2 35 chapter 411 prior to January 1, 1992, that was not eligible to
3 1 be transferred to PORS and for which the member is also not
3 2 otherwise eligible to receive a retirement allowance. The
3 3 bill provides that the member is required to pay the full
3 4 actuarial cost of the service purchase and must make
3 5 application for the purchase of service by July 1, 2007. The
3 6 actuarial cost of the service purchase is defined as the cost
3 7 necessary to fund an increased retirement allowance resulting
3 8 from the purchase of the permissive service credit.
3 9 Code section 97B.80C is amended to provide that a member
3 10 buying back service under IPERS can receive a credit for the
3 11 cost of purchasing that prior service equal to the amount of
3 12 the member's employer's accumulated contributions that were
3 13 not paid when the member received a refund for that service
3 14 plus interest as calculated in Code section 97B.70.
3 15 LSB 5696SS 81
3 16 ec:rj/gg/14