Senate Study Bill 1166 



                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            STATE GOVERNMENT BILL
                                            BY CHAIRPERSON APPEL)


    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 1937XC 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 and who has not terminated their participation in the plan as
  1  9 of the readjustment period shall have the option, during the
  1 10 readjustment period, to extend the member's participation in
  1 11 the plan by one year, up to a maximum of five years
  1 12 participation in the plan, upon written application with the
  1 13 retirement system.  For purposes of this section, the
  1 14 readjustment period shall be a period of three months as
  1 15 established by the board of trustees for the municipal fire
  1 16 and police retirement system.
  1 17    2.  This section shall not be implemented until the system
  1 18 has received a favorable ruling from the internal revenue
  1 19 service regarding this section.  Upon receiving the favorable
  1 20 ruling, the board of trustees of the system shall establish,
  1 21 as expeditiously as possible, the readjustment period.
  1 22    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of
  1 23 immediate importance, takes effect upon enactment.
  1 24                           EXPLANATION
  1 25    This bill provides that an eligible member of the municipal
  1 26 fire and police retirement system of Iowa (MFPRSI) who is
  1 27 participating in the deferred retirement option plan (DROP)
  1 28 but has not terminated their participation in DROP as of a
  1 29 specified readjustment period has the option to extend their
  1 30 participation in the plan by one year, up to a maximum of five
  1 31 years, during that readjustment period.  The bill provides
  1 32 that the readjustment period shall be a three=month period
  1 33 which shall be established by the MFPRSI board once the system
  1 34 receives a favorable determination from the internal revenue
  1 35 service that the provisions of the bill can be implemented.
  2  1 The bill takes effect upon enactment.
  2  2 LSB 1937XC 83
  2  3 ec/nh/8