House Study Bill 529 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED JUDICIAL BRANCH BILL) A BILL FOR An Act relating to the judicial retirement fund. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5250XD (3) 90 cm/ns

S.F. _____ H.F. _____ Section 1. Section 602.9104, subsection 4, Code 2024, is 1 amended to read as follows: 2 4. As used in this section , unless the context otherwise 3 requires: 4 a. “Actuarial valuation” means an actuarial valuation of the 5 judicial retirement system or an annual actuarial update of an 6 actuarial valuation, as required pursuant to section 602.9116 . 7 b. “Fully funded status” means that the most recent 8 actuarial valuation reflects that the funded status of the 9 system is at least one hundred percent, based upon the benefits 10 provided for judges through the judicial retirement system as 11 of July 1, 2006. 12 c. a. “Judge’s required contribution” means an amount equal 13 to the basic salary of the judge multiplied by the following 14 applicable percentage: 15 (1) For the fiscal year beginning July 1, 2008, and ending 16 June 30, 2009, seven and seven-tenths percent. 17 (2) For the fiscal year beginning July 1, 2009, and ending 18 June 30, 2010, eight and seven-tenths percent. 19 (3) For nine and thirty-five hundredths percent for 20 the fiscal year beginning July 1, 2010 2024 , and for each 21 subsequent fiscal year until the system attains fully funded 22 status, nine and thirty-five hundredths percent . 23 (4) Commencing with the first fiscal year in which the 24 system attains fully funded status, and for each subsequent 25 fiscal year, the percentage rate equal to forty percent of the 26 required contribution rate. 27 d. “Required contribution rate” means that percentage of the 28 basic salary of all judges covered under this article equal to 29 the actuarially required contribution rate determined by the 30 actuary pursuant to section 602.9116 . 31 e. b. “State’s required contribution” means an amount equal 32 to the basic salary of all judges covered under this article 33 multiplied by the following applicable percentage: 34 (1) For thirty and six-tenths percent for the fiscal year 35 -1- LSB 5250XD (3) 90 cm/ns 1/ 3

S.F. _____ H.F. _____ beginning July 1, 2008 2024 , and for each subsequent fiscal 1 year until the system attains fully funded status, thirty and 2 six-tenths percent . 3 (2) Commencing with the first fiscal year in which the 4 system attains fully funded status, and for each subsequent 5 fiscal year, the percentage rate equal to sixty percent of the 6 required contribution rate. 7 Sec. 2. Section 602.9116, subsection 1, Code 2024, is 8 amended to read as follows: 9 1. The court administrator shall cause an actuarial 10 valuation to be made of the assets and liabilities of the 11 judicial retirement fund at least once every four years 12 commencing with the fiscal year beginning July 1, 1981. For 13 each fiscal year in which an actuarial valuation is not 14 conducted, the court administrator shall cause an annual 15 actuarial update to be prepared for the purpose of determining 16 the adequacy of the contribution rates specified in section 17 602.9104 . The court administrator shall adopt actuarial 18 methods and assumptions, mortality tables, and other necessary 19 factors for use in the actuarial calculations required for 20 the valuation upon the recommendation of the actuary. In 21 addition, effective with the fiscal year beginning July 1, 22 2008, the actuarial valuation or actuarial update required to 23 be conducted shall include information as required by section 24 97D.5 . Following the actuarial valuation or annual actuarial 25 update, the court administrator shall determine the condition 26 of the system , determine the actuarially required contribution 27 rate for each fiscal year which is the rate required by the 28 system to discharge its liabilities, stated as a percentage of 29 the basic salary of all judges covered under this article , and 30 shall report any findings and recommendations to the general 31 assembly. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -2- LSB 5250XD (3) 90 cm/ns 2/ 3

S.F. _____ H.F. _____ This bill modifies the contribution rates for the judicial 1 retirement fund. The bill redefines the term “judge’s required 2 contribution” to mean an amount equal to the basic salary of 3 the judge multiplied by 9.35 percent beginning in FY 2024-2025, 4 and the term “state’s required contribution” to mean an amount 5 equal to the basic salary of all judges multiplied by 30.6 6 percent beginning in FY 2024-2025. The bill’s contribution 7 rates apply regardless of whether the judicial retirement fund 8 is fully funded. 9 The bill amends the actuarial valuation procedure by the 10 court administrator to strike associated provisions. 11 -3- LSB 5250XD (3) 90 cm/ns 3/ 3