House File 644 - Introduced



                                       HOUSE FILE       
                                       BY  D. OLSON


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for the purchase of special service credit under
  2    the Iowa public employees' retirement system.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2670HH 82
  5 ec/gg/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  97B.80D  PURCHASES OF SPECIAL
  1  2 SERVICE CREDIT.
  1  3    1.  A vested or retired member in special service who has
  1  4 five or more full calendar years of covered wages and who at
  1  5 any time was in regular service may make contributions to the
  1  6 retirement system to convert up to five years of regular
  1  7 service credit to special service credit as determined by the
  1  8 system, pursuant to Internal Revenue Code section 415(n) and
  1  9 the requirements of this section.
  1 10    2.  A special service member making contributions for a
  1 11 purchase of special service credit under this section shall
  1 12 make contributions in an amount equal to the actuarial cost of
  1 13 converting the regular service credit to special service
  1 14 credit.  For purposes of this subsection, the actuarial cost
  1 15 of the service purchase is an amount determined by the system
  1 16 in accordance with actuarial tables, as reported to the system
  1 17 by the system's actuary, which reflects the actuarial cost
  1 18 necessary to fund an increased retirement allowance resulting
  1 19 from the purchase of special service credit.
  1 20    3.  The system shall ensure that the member, in exercising
  1 21 an option provided in this section, does not exceed the amount
  1 22 of annual additions to a member's account permitted pursuant
  1 23 to section 415 of the federal Internal Revenue Code.
  1 24                           EXPLANATION
  1 25    This bill provides that a vested or retired member of the
  1 26 Iowa public employees' retirement system (IPERS) in special
  1 27 service can convert up to five years of prior regular service
  1 28 credit under IPERS to special service credit by paying the
  1 29 actuarial cost of the purchase.  Under IPERS, special service
  1 30 means service while employed in a protection occupation or as
  1 31 a sheriff, deputy sheriff, or airport fire fighter.  The
  1 32 actuarial cost of the purchase is defined by the bill as the
  1 33 amount necessary to fund an increased retirement allowance
  1 34 resulting from the purchase of special service credit.
  1 35 LSB 2670HH 82
  2  1 ec:nh/gg/14