Senate File 2019 - 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 credit and recalculation of
2 benefits for certain city managers under the Iowa public
3 employees' retirement system.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5492XS 81
6 ec/gg/14
PAG LIN
1 1 Section 1. IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM ==
1 2 CITY MANAGER == RETIREMENT RECALCULATION.
1 3 1. Notwithstanding any provision of chapter 97B to the
1 4 contrary, a retired member of the Iowa public employees'
1 5 retirement system who was employed in a position as an
1 6 employee as defined in section 97B.1A, subsection 8, paragraph
1 7 "a", subparagraph (7), on or before July 1, 2006, and who had
1 8 coverage under the system for some, but not all, of that
1 9 employment and who was not covered under the system for the
1 10 remainder of that employment, shall, upon application to the
1 11 system, have the member's retirement allowance recalculated as
1 12 provided in this section.
1 13 2. To be eligible to receive a recalculated retirement
1 14 allowance under this section, a retired member shall file an
1 15 application with appropriate documentation with the system by
1 16 August 31, 2006. The application shall include written
1 17 evidence of the following:
1 18 a. The retired member has purchased service for employment
1 19 as an employee as described in subsection 1 that was not
1 20 otherwise covered under the system prior to July 1, 2006.
1 21 b. The employer of the retired member when the retired
1 22 member was employed in a position as an employee as defined in
1 23 section 97B.1A, subsection 8, paragraph "a", subparagraph (7),
1 24 shall make an additional contribution in an amount equal to
1 25 the actuarial cost of the recalculated retirement to the
1 26 system by August 31, 2006. For purposes of this paragraph,
1 27 the actuarial cost of the recalculated retirement is an amount
1 28 determined by the system in accordance with actuarial tables,
1 29 as reported to the system by the system's actuary, which
1 30 reflects the actuarial cost necessary to fund an increased
1 31 retirement allowance resulting from the application of the
1 32 provisions of this section.
1 33 3. A retired member described in subsection 1 who has
1 34 submitted an application as provided in subsection 2 shall be
1 35 entitled to have the member's monthly retirement allowance
2 1 recalculated using the applicable formula for determining a
2 2 retirement allowance pursuant to sections 97B.49A through
2 3 97B.49G, as applicable, and in place as of August 31, 2006,
2 4 and all credited service of the member, including service
2 5 purchased, as of August 31, 2006. In addition,
2 6 notwithstanding any provision of chapter 97B to the contrary,
2 7 a member's covered wages for determining the recalculated
2 8 retirement allowance under this subsection shall be the wages
2 9 earned by the member as an employee as defined in section
2 10 97B.1A, subsection 8, paragraph "a", subparagraph (7), and the
2 11 wages earned by the member for service that was purchased by
2 12 the member for other employment as provided by section
2 13 97B.80C.
2 14 4. This section shall not be implemented until the system
2 15 has received a determination letter from the United States
2 16 internal revenue service approving the plan's qualified status
2 17 under Internal Revenue Code section 401(a).
2 18 EXPLANATION
2 19 This bill permits certain city managers who have retired to
2 20 purchase service under the Iowa public employees' retirement
2 21 system (IPERS) and to have that city manager's retirement
2 22 benefit recalculated under the current IPERS formula and not
2 23 the formula in place at the time of retirement.
2 24 The bill applies to a city manager, now retired, who was
2 25 covered under IPERS for some, but not all, of that person's
2 26 service as a city manager. The bill permits the person to
2 27 purchase IPERS service credit for that service as a city
2 28 manager not covered by IPERS and to have the person's
2 29 retirement benefit recalculated under the current retirement
2 30 formula and not the formula in place at the time the person
2 31 retired. The bill provides that in recalculating the person's
2 32 retirement benefit, the member's highest three years of wages
2 33 as a city manager shall be used, regardless of whether the
2 34 person made contributions on the full amount of the wages.
2 35 The bill provides that eligible city managers purchase the
3 1 service by August 31, 2006, and make application for a
3 2 recalculation of their benefit by August 31, 2006. In
3 3 addition, the employer of the city manager shall make a
3 4 contribution to IPERS in an amount equal to the actuarial cost
3 5 of the recalculated retirement by August 31, 2006. The bill
3 6 provides that the section shall not be implemented until IPERS
3 7 receives a determination letter from the internal revenue
3 8 service approving the plan's qualified status under the
3 9 Internal Revenue Code.
3 10 LSB 5492XS 81
3 11 ec:rj/gg/14.1