HOUSE FILE 572

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO HSB 197)

A BILL FOR

An Act delaying increases in employee and employer contribution rates to the Iowa public employees’ retirement system.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 97B.11, subsection 2, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   Prior to July 1, 2011 2012, for purposes of this section, unless the context otherwise requires:
   Sec. 2.  Section 97B.11, subsection 2, paragraph c, Code 2011, is amended to read as follows:
   c.  “Total additional percentage” means for the fiscal period beginning July 1, 2007, through June 30, 2011 2012, the total additional percentage for the prior fiscal year plus, only if the total comparison percentage is greater than the total of the applicable employee percentage and the applicable employer percentage for the prior fiscal year, one-half percentage point.
   Sec. 3.  Section 97B.11, subsection 3, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   On and after July 1, 2011 2012, for purposes of this section, unless the context otherwise requires:
   Sec. 4.  2008 Iowa Acts, chapter 1171, section 47, as amended by 2010 Iowa Acts, chapter 1167, section 35, is amended to read as follows:
   SEC. 47.  TRANSITION PROVISION—— REQUIRED CONTRIBUTION RATE FOR FISCAL YEAR YEARS 2010-2011 AND 2011-2012.  For purposes of establishing the required contribution rate for the fiscal year beginning July 1, 2011 2012, as provided in section 97B.11, as amended in this Act, the required contribution rate for the fiscal year beginning July 1, 2010, and the fiscal year beginning July 1, 2011, shall be, for members described in section 97B.49B, and members described in section 97B.49C, the total contribution percentage rate paid by members and employers of that membership group for the fiscal year beginning July 1, 2010, and the fiscal year beginning July 1, 2011.
   Sec. 5.  2010 Iowa Acts, chapter 1167, section 38, is amended to read as follows:
   SEC. 38.
  IPERS REGULAR MEMBERS—— REQUIRED CONTRIBUTION RATE FOR FISCAL YEAR 2011-2012 2012–2013.  Notwithstanding any provision of section 97B.11 to the contrary, for members in regular service as defined in section 97B.1A, the required contribution rate for the fiscal year beginning July 1, 2011 2012, as provided in section 97B.11, shall be thirteen and forty-five hundredths percent.
EXPLANATION
   This bill delays for a period of one year statutory changes that alter the contribution rates of employees and employers contributing to the Iowa public employees’ retirement system. Statutory changes relating to contribution rates that are set to take effect on July 1, 2011, would instead take effect on July 1, 2012.