HSB 535 (LSB 5360DP (7) 83)

SENATE/HOUSE FILE _____

BY  (PROPOSED IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM BILL)

A BILL FOR

An Act concerning the administration of the Iowa public employees’ retirement system.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 97B.4, subsection 2, paragraph c, Code 2009, is amended to read as follows:
   c.  In administering this chapter, the system may enter into a biennial agreement with the department of administrative services concerning the sharing of resources between the system and department which are of benefit to each and which are consistent with the mission of the system and the department. The budget program for the system shall be established by the chief executive officer in consultation with the board and other staff of the system and shall be compiled and submitted by the system pursuant to section 8.23.
    Sec. 2.  Section 97B.4, subsection 4, paragraph a, Code 2009, is amended to read as follows:
   a.  Annual report to governor.  Not later than the thirty-first day of December of each year, the system shall submit to the governor a report covering the administration and operation of this chapter during the preceding fiscal year and shall make recommendations for amendments to this chapter. The report shall include a balance sheet of the moneys in the retirement fund. The report shall also include information concerning the investment management expenses for the retirement fund for each fiscal year expressed as a percent of the market value of the retirement fund investment assets, including the information described in section 97B.7, subsection 3, paragraph “d”. The information provided under this paragraph shall also include information on the investment policies and investment performance of the retirement fund. In providing this information, to the extent possible, the system shall include the total investment return for the entire fund, for portions of the fund managed by investment managers, and for internally managed portions of the fund, and the cost of managing the fund per thousand dollars of assets. The performance shall be based upon market value, and shall be contrasted with relevant market indices and with performances of pension funds of similar asset size.
    Sec. 3.  Section 97B.58, Code 2009, is amended to read as follows:
   97B.58  Information furnished by employer.

   To enable the system to administer this chapter and perform its functions, the employer shall, upon the request of and in the manner provided by the system, supply full provide accurate, complete, and timely information to the system of all matters relating to the pay of all members, date of birth, their retirement, death, or other cause for termination of employment, and other pertinent facts the system may require in the manner provided by the system.  The system shall not be liable to any member, retiree, or beneficiary for any monetary or other relief due to the failure of the employer to comply with this section.
EXPLANATION
   This bill concerns the administration of the Iowa public employees’ retirement system (IPERS).
   Code section 97B.4(2)(c) is amended by striking the provision which authorized the system to enter into a biennial agreement with the department of administrative services concerning the sharing of resources between IPERS and the department.
   Code section 97B.4(4)(a), concerning the annual report to the governor, is amended by striking the inclusion of information relative to investment management expenses described in Code section 97B.7(3)(d). Legislation enacted in 2008 struck the requirement in Code section 97B.7(3)(d) limiting investment management expenses to .4 percent of the fund value.
   Code section 97B.58, concerning information furnished by employers under IPERS, is amended. The bill provides that the employer shall provide accurate and complete information requested by IPERS to administer the Code chapter and further provides that IPERS shall not be liable to any member, retiree, or beneficiary for any monetary or other relief due to the failure of an employer to comply with the Code section.