Senate File 277 - Introduced SENATE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 1166) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act concerning the deferred retirement option plan under the 2 municipal fire and police retirement system of Iowa and 3 providing an effective date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1937SV 83 6 ec/nh/8 PAG LIN 1 1 Section 1. MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM == 1 2 DEFERRED RETIREMENT OPTION PLAN == EXTENSION OF PLAN 1 3 PARTICIPATION PERIOD. 1 4 1. Notwithstanding any provision of chapter 411 to the 1 5 contrary, an eligible member of the municipal fire and police 1 6 retirement system who has elected to participate in the 1 7 deferred retirement option plan as created in section 411.6C 1 8 as of the date the system has received a favorable ruling from 1 9 the internal revenue service regarding this section and who 1 10 has not terminated their participation in the plan as of the 1 11 readjustment period shall have the option, during the 1 12 readjustment period, to extend the member's participation in 1 13 the plan by one year, up to a maximum of five years 1 14 participation in the plan, upon written application with the 1 15 retirement system. However, the option may only be exercised 1 16 if the employer of the eligible member has authorized all 1 17 eligible employees of the employer to exercise the option 1 18 provided in this section. For purposes of this section, the 1 19 readjustment period shall be a one=time period of three months 1 20 as established by the board of trustees for the municipal fire 1 21 and police retirement system. 1 22 2. This section shall not be implemented until the system 1 23 has received a favorable ruling from the internal revenue 1 24 service regarding this section. Upon receiving the favorable 1 25 ruling, the board of trustees of the system shall establish, 1 26 as expeditiously as possible, the readjustment period. 1 27 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 1 28 immediate importance, takes effect upon enactment. 1 29 EXPLANATION 1 30 This bill provides that an eligible member of the municipal 1 31 fire and police retirement system of Iowa (MFPRSI) who is 1 32 participating in the deferred retirement option plan (DROP) 1 33 but has not terminated their participation in DROP as of a 1 34 specified readjustment period has the option to extend their 1 35 participation in the plan by one year, up to a maximum of five 2 1 years, during that readjustment period. However, the bill 2 2 provides that the option may only be exercised if the 2 3 applicable employer agrees that all eligible employees may 2 4 take the option. The bill provides that the readjustment 2 5 period shall be a one=time three=month period which shall be 2 6 established by the MFPRSI board once the system receives a 2 7 favorable determination from the internal revenue service that 2 8 the provisions of the bill can be implemented. 2 9 The bill takes effect upon enactment. 2 10 LSB 1937SV 83 2 11 ec/nh/8