Senate Study Bill 1028 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM BILL) A BILL FOR An Act concerning certain vesting requirements for regular 1 service members under the Iowa public employees’ retirement 2 system. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1241DP (4) 84 ec/sc

S.F. _____ H.F. _____ Section 1. Section 97B.49A, subsection 3, Code 2011, is 1 amended to read as follows: 2 3. Calculation of monthly allowance. For each active or 3 inactive vested member retiring on or after July 1, 1994, with 4 four or more complete years of who is vested by service, a 5 monthly benefit shall be computed which is equal to one-twelfth 6 of an amount equal to the applicable percentage of the final 7 average covered wage multiplied by a fraction of years of 8 service. However, if benefits under this section commence on 9 an early retirement date, the amount of the benefit shall be 10 reduced in accordance with section 97B.50 . 11 EXPLANATION 12 Legislation enacted in 2010 changed the years of service 13 vesting requirement for regular service members under the Iowa 14 public employees’ retirement system (IPERS) from four to seven 15 years beginning July 1, 2012, and defined this requirement 16 as being “vested by service”. A corresponding reference in 17 Code section 97B.49A(3) to four or more complete years of 18 service for purposes of calculating the monthly retirement 19 allowance for regular service members was not changed in the 20 2010 legislation. This bill changes the reference from four or 21 more years of service to vested by service. 22 -1- LSB 1241DP (4) 84 ec/sc 1/ 1