Senate
File
2073
-
Introduced
SENATE
FILE
2073
BY
DAWSON
A
BILL
FOR
An
Act
concerning
special
service
members
of
the
Iowa
public
1
employees’
retirement
system
by
establishing
a
deferred
2
retirement
option
plan
and
including
public
safety
3
telecommunicators
in
the
protection
occupation
category.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
97B.49B,
subsection
1,
paragraph
e,
Code
1
2018,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(17)
A
person
employed
by
an
employer
3
under
this
chapter
as
a
public
safety
telecommunicator
who
is
4
not
a
member
of
the
retirement
system
established
in
chapter
5
97A
or
411.
6
Sec.
2.
NEW
SECTION
.
97B.50B
Deferred
retirement
option
7
plan
for
special
service
members.
8
1.
For
purposes
of
this
section,
unless
the
context
9
otherwise
requires:
10
a.
“Applicable
percentage”
means
that
percentage,
not
11
greater
than
one
hundred
percentage
points,
equal
to
fifty-two
12
percentage
points
plus
two
percentage
points
for
each
month
for
13
the
period
between
the
eligible
member’s
plan
eligibility
month
14
and
the
month
the
eligible
member
commences
membership
in
the
15
plan.
16
b.
“Drop
benefit”
means,
for
a
participant,
an
amount
17
credited
to
the
participant’s
account
each
applicable
month
18
equal
to
the
member’s
applicable
percentage
multiplied
by
the
19
member’s
participant
retirement
amount.
20
c.
“Eligible
member”
means
a
member,
as
defined
in
section
21
97B.50A,
who
has
attained
fifty-five
years
of
age
with
at
least
22
twenty-two
years
of
membership
service.
23
d.
“Participant
account”
means
an
administrative
record
24
maintained
by
the
system
reflecting
the
participant’s
25
accumulated
drop
benefit.
26
e.
“Participant
retirement
amount”
means
the
amount
equal
to
27
the
monthly
retirement
allowance
the
eligible
member
would
have
28
received
under
section
97B.49B
or
97B.49C,
as
applicable,
if
29
the
member
retired
on
the
date
the
eligible
member
commenced
30
participation
in
the
plan,
based
on
earnings
through
the
31
previous
full
quarter
of
covered
wages
earned
by
the
member.
32
f.
“Plan”
means
the
deferred
retirement
option
plan
33
established
by
this
section.
34
g.
“Plan
eligibility
month”
means
the
first
full
calendar
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month
in
which
the
participant
is
an
eligible
member.
1
2.
a.
An
eligible
member
may
elect
to
participate
in
the
2
deferred
retirement
option
plan
as
provided
in
this
section.
3
A
decision
by
an
eligible
member
to
participate
in
the
plan
4
is
irrevocable.
Upon
commencing
membership
in
the
plan,
the
5
member
shall
remain
an
active
member
of
the
system
and
shall
6
have
credited
to
a
participant
account
on
behalf
of
the
member
7
from
the
retirement
fund
for
each
month
the
member
participates
8
in
the
plan
the
member’s
drop
benefit.
The
amounts
credited
9
shall
be
invested
by
the
system
in
risk-free
assets
of
a
10
short-term
nature
and
interest
and
earnings
shall
not
be
11
credited
to
the
member’s
participant
account
but
shall
remain
12
with
the
retirement
fund
established
in
section
97B.7.
13
b.
Upon
termination
of
an
eligible
member’s
participation
14
in
the
plan,
the
eligible
member
shall
be
deemed
to
be
retired
15
under
the
system
as
of
that
date
for
purposes
of
the
system
16
and
shall
begin
receiving
a
retirement
allowance
equal
to
17
the
member’s
participant
retirement
amount
or
such
optional
18
retirement
benefits,
based
upon
that
amount,
pursuant
to
19
section
97B.51.
In
addition,
the
eligible
member
shall
receive
20
the
moneys
credited
to
the
member’s
participant
account
while
21
participating
in
the
plan.
The
eligible
member
shall
select,
22
upon
written
application
to
the
system,
whether
to
receive
23
the
amount
in
the
member’s
participant
account
in
the
form
24
of
a
lump
sum
distribution
or
as
a
rollover
to
an
eligible
25
retirement
plan
as
defined
in
section
97B.53B.
26
c.
If
an
eligible
member
terminates
participation
in
the
27
plan
prior
to
the
date
selected
by
the
member
upon
commencing
28
membership
in
the
plan
and
the
termination
is
not
due
to
the
29
death
or
disability
of
the
member
under
this
chapter,
then
30
the
system
shall
assess
a
twenty-five
percent
penalty
on
the
31
amount
credited
to
the
member’s
participant
account
prior
to
32
distributing
the
amount
to
the
member.
The
penalty
amount
33
shall
be
transferred
to
and
remain
with
the
retirement
fund.
34
3.
To
participate
in
the
plan,
an
eligible
member
shall
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make
written
application
to
the
system.
The
application
shall
1
include
the
following:
2
a.
The
month
the
eligible
member
intends
to
commence
3
participation
in
the
plan.
4
b.
The
eligible
member’s
selection
of
a
plan
termination
5
date.
The
plan
termination
date
shall
be
either
three,
6
four,
or
five
years
after
the
date
the
eligible
member
7
commences
membership
in
the
plan.
However,
for
the
two-year
8
period
beginning
with
the
first
of
the
month
following
the
9
implementation
date
of
this
section,
an
eligible
member
between
10
sixty-two
and
sixty-four
years
of
age
may
also
select
a
plan
11
termination
date
that
is
one
or
two
years
after
the
date
the
12
eligible
member
commences
membership
in
the
plan.
13
4.
Participation
in
the
plan
by
an
eligible
member
does
not
14
guarantee
continued
employment.
Contributions
required
from
15
members
and
participating
cities
shall
continue
based
on
the
16
earnable
compensation
of
an
eligible
member
participating
in
17
the
plan.
However,
contributions
made
while
an
eligible
member
18
participates
in
the
plan
shall
remain
with
the
retirement
fund
19
and
shall
not
be
subject
to
a
refund
of
contributions
under
20
section
97B.53.
21
5.
The
system’s
actuary,
while
making
the
annual
valuation
22
of
the
assets
and
liabilities
of
the
retirement
system,
shall
23
determine
whether
establishment
and
operation
of
the
plan
24
created
in
this
section
has
resulted
in
an
increased
actuarial
25
cost
to
the
system.
If
the
actuary
determines
that
the
plan
26
has
resulted
in
an
increased
actuarial
cost
to
the
system,
27
then,
notwithstanding
any
provision
of
section
97B.11
to
the
28
contrary,
the
system
shall
increase
the
members’
contribution
29
rate
as
necessary
to
cover
the
increased
cost
of
the
plan
30
created
in
this
section.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
concerns
special
services
members
of
the
Iowa
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public
employees’
retirement
system
(IPERS)
created
in
Code
1
chapter
97B.
2
Code
section
97B.49B
is
amended
to
provide
that
persons
3
employed
as
a
public
safety
telecommunicator
that
are
not
4
otherwise
a
member
of
the
retirement
system
in
Code
chapter
97A
5
or
411
are
included
within
the
protection
occupation
category
6
of
IPERS.
7
New
Code
section
97B.50B
establishes
a
deferred
retirement
8
option
plan
(DROP)
for
special
service
members
of
IPERS.
9
The
new
Code
section
provides
that
special
service
members
10
of
IPERS
who
are
at
least
55
years
of
age
and
have
at
least
11
22
years
of
service
are
eligible
to
participate
in
the
DROP
12
plan.
The
DROP
plan
provides
that
an
eligible
member
can
delay
13
retirement,
continue
working
for
a
set
number
of
additional
14
years,
and
have
a
portion
of
the
retirement
allowance
they
15
otherwise
would
have
received
if
they
had
retired
instead
of
16
participating
in
the
DROP
plan
deposited
in
an
account
that
is
17
then
distributed
to
them
when
they
eventually
retire.
However,
18
the
member’s
retirement
allowance
is
set
at
the
time
the
member
19
enters
the
DROP
plan.
20
Prior
to
participating
in
the
DROP
plan,
a
member
shall
21
submit
an
application
to
the
system
indicating
when
they
intend
22
to
start
participation
in
the
DROP
plan
and
when
they
intend
23
to
terminate
their
participation
in
the
plan
and
retire.
The
24
bill
permits
an
eligible
member
to
elect
to
participate
in
the
25
DROP
plan
for
three,
four,
or
five
years.
However,
for
the
26
two-year
period
beginning
on
the
implementation
date
of
this
27
Code
section,
an
eligible
member
between
the
ages
of
62
and
64
28
can
elect
to
participate
in
the
DROP
plan
and
terminate
their
29
participation
in
one
or
two
years.
30
Upon
electing
to
participate
in
the
DROP
plan,
the
eligible
31
member
continues
to
work
but
has
a
portion
of
the
retirement
32
allowance
they
would
have
received
if
they
had
decided
to
33
retire
credited
to
an
account.
The
amount
credited
is
equal
34
to
a
percentage
of
the
retirement
allowance
they
would
have
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received.
The
percentage
rate
is
determined
by
starting
with
1
52
percent
and
adding
2
percent
per
month,
up
to
a
maximum
of
2
100
percent,
based
upon
the
number
of
months
between
the
month
3
the
member
first
became
eligible
to
participate
in
the
DROP
4
plan
and
the
month
the
member
actually
participates.
The
bill
5
provides
that
the
amount
deposited
in
the
member’s
account
does
6
not
accrue
interest
or
dividends.
Upon
termination
from
the
7
DROP
plan,
the
eligible
member
begins
to
receive
a
retirement
8
allowance
based
upon
the
amount
the
member
would
have
received
9
when
the
member
commenced
participation
in
the
DROP
plan
plus
10
the
amount
in
the
member’s
account.
If
the
member
terminates
11
participation
in
the
plan
prior
to
the
date
set
by
the
member
12
and
the
termination
is
not
due
to
the
member’s
death
or
13
disability,
IPERS
shall
withhold
25
percent
of
the
amount
in
14
the
account
as
a
penalty.
The
bill
provides
that
participation
15
in
the
DROP
plan
does
not
guarantee
continued
employment.
16
The
new
Code
section
also
provides
that
if
the
IPERS
actuary
17
determines
that
the
DROP
plan
has
increased
the
actuarial
cost
18
of
the
system,
the
contribution
rate
paid
by
special
service
19
members
shall
be
increased
to
cover
this
increased
cost.
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