HSB 537 (LSB 5359DP (9) 83)

SENATE/HOUSE FILE _____

BY  (PROPOSED IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM BILL)

A BILL FOR

An Act concerning bona fide retirement requirements under the Iowa public employees’ retirement system and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 97B.52A, subsection 1, paragraph c, Code 2009, is amended to read as follows:
   c.  (1)  For a member whose first month of entitlement is July 2000 or later, the member does not return to any employment with a covered employer until the member has qualified for at least one calendar month of retirement benefits, and the member does not return to covered employment until the member has qualified for no fewer than four calendar months of retirement benefits.
   (2)  For purposes of determining a bona fide retirement under this paragraph “c”, effective the following provisions apply:
   (a)  Effective July 1, 2000, any employment with a covered employer does not include employment as an elective official or member of the general assembly if the member is not covered under this chapter for that employment.
   (b)  For purposes of determining a bona fide retirement under this paragraph and for a member whose first month of entitlement is July 2004 or later, but before July 2010 2011, covered employment does not include employment as a licensed health care professional by a public hospital as defined in section 249J.3, with the exception of public hospitals governed pursuant to chapter 226.
   (c)  Effective May 25, 2008, any employment with a covered employer does not include noncovered employment as a member of the national guard called to state active duty as defined in section 29A.1.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  The provision of this Act enacting section 97B.52A, subsection 1, paragraph “c”, subparagraph (2), subparagraph division (c), being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  The provision of this Act enacting section 97B.52A, subsection 1, paragraph “c”, subparagraph (2), subparagraph division (c), applies retroactively to May 25, 2008.
EXPLANATION
   This bill concerns the determination of a bona fide retirement under the Iowa public employees’ retirement system (IPERS).
   Current law allows, until July 2010, a person to retire, receive retirement benefits, and to return to covered employment as a licensed health care professional at a public hospital after one month and still receive retirement benefits. Most retirees under IPERS are not allowed to return to covered employment and continue to receive retirement benefits until at least four months after they retire. The bill extends the sunset of this shortened period for licensed health care professionals from July 2010 to July 2011.
   The bill also provides that a person retired under IPERS may return to noncovered employment as a member of the national guard called to state active duty at any time for purposes of determining a bona fide retirement under IPERS. This provision takes effect upon enactment and applies retroactively to May 25, 2008.