House
Study
Bill
135
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LOCAL
GOVERNMENT
BILL
BY
CHAIRPERSON
WAGNER)
A
BILL
FOR
An
Act
allowing
certain
cities
to
adopt
and
establish
an
1
alternative
benefits
retirement
system
for
police
officers
2
and
fire
fighters.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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H.F.
_____
Section
1.
NEW
SECTION
.
411.3A
Defined
contribution
1
retirement
system
——
local
government
option.
2
1.
a.
Notwithstanding
any
other
provision
of
law,
each
3
city
participating
in
the
retirement
system
for
police
4
officers
and
fire
fighters,
as
described
in
section
411.2,
5
shall
have
the
option
to
adopt
and
establish,
by
ordinance,
6
an
alternative
benefits
retirement
system
for
police
officers
7
and
fire
fighters,
in
lieu
of
participation
in
the
retirement
8
system
for
police
officers
and
fire
fighters
created
within
9
this
chapter.
Participation
in
such
an
alternative
benefits
10
retirement
system,
if
adopted,
shall
be
mandatory
for
all
11
applicable
employees
appointed
on
or
after
the
effective
date
12
of
the
ordinance.
13
b.
The
alternative
benefits
retirement
system
shall
be
14
an
employer-sponsored
defined
contribution
plan
requiring
15
mandatory
employer
contributions
that
meet
the
requirements
of
16
section
401(a)
or
section
457
of
the
Internal
Revenue
Code.
17
2.
The
city
shall
select
a
provider
of
the
alternative
18
benefits
retirement
system
that
is
a
financial
institution
19
capable
of
providing
bundled
services
for
the
retirement
20
system,
including
but
not
limited
to
administration,
investment
21
management,
employee
education,
and
recordkeeping.
In
22
selecting
a
provider,
the
city
shall
place
primary
emphasis
on
23
the
reasonableness
of
services
in
relation
to
cost,
the
ability
24
and
experience
of
the
provider
in
providing
bundled
retirement
25
services
to
political
subdivisions,
the
financial
stability
26
of
the
provider,
and
the
ability
of
the
provider
to
provide
27
services
as
required
by
this
section.
28
3.
Upon
termination
of
employment
as
a
police
officer
or
29
fire
fighter
employed
by
a
city,
the
police
officer
or
fire
30
fighter
shall
be
eligible
to
receive
a
benefit
payable
in
at
31
least
any
of
the
following
forms:
32
a.
Payment
of
all
or
part
of
the
police
officer’s
or
33
fire
fighter’s
account
balance
in
the
alternative
benefits
34
retirement
system
in
a
lump
sum.
35
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1676HC
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b.
Payment
based
on
the
police
officer’s
or
fire
fighter’s
1
account
balance
in
the
alternative
benefits
retirement
system
2
in
monthly,
quarterly,
or
annual
installments
over
a
fixed
3
reasonable
period
of
time,
not
exceeding
the
life
expectancy
of
4
the
police
officer
or
fire
fighter
and
the
police
officer’s
or
5
fire
fighter’s
beneficiary,
if
applicable.
6
c.
Payment
based
on
the
police
officer’s
or
fire
fighter’s
7
account
balance
in
the
form
of
a
single
life
or
joint
life
and
8
survivorship
annuity.
9
EXPLANATION
10
This
bill
allows
a
city
to
adopt
and
establish,
by
ordinance,
11
a
defined
contribution
retirement
plan
as
an
alternative
12
benefits
retirement
system
for
police
officers
and
fire
13
fighters.
14
The
bill
provides
that
each
city
participating
in
the
15
statewide
fire
and
police
retirement
system,
created
in
Code
16
chapter
411,
may
establish
an
alternative
benefits
retirement
17
system
for
police
officers
and
fire
fighters,
in
lieu
of
18
participation
in
the
statewide
fire
and
police
retirement
19
system.
20
The
bill
requires
that
such
an
alternative
benefits
21
retirement
system
be
an
employer-sponsored
defined
contribution
22
plan
that
meets
the
requirements
of
either
Code
section
401(a)
23
or
section
457
of
the
Internal
Revenue
Code.
24
The
bill
provides
that
a
city
must
select
a
provider
25
that
meets
certain
requirements
related
to
administration,
26
investment
management,
employee
education,
and
record
keeping,
27
among
other
things.
The
bill
also
provides
certain
guidelines
28
for
the
selection
of
a
provider.
29
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