HSB 59 (LSB 1033YC (3) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act An Act relating to service credit for military service under the Iowa Public Employees’ Retirement System.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 97B.80, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  Effective July 1, 2023, a vested or retired member who has one or more full calendar years of covered wages and who at any time served on active duty in the armed forces of the United States, upon submitting verification of the dates of the active duty service, shall receive credit for membership service and prior service for the period of time of the active duty service, in increments of one or more calendar quarters, up to a maximum of sixteen quarters of membership service and prior service.
    Sec. 2.  Section 97B.80, subsection 2, unnumbered paragraph 1, Code 2023, is amended to read as follows:
   The contributions required to be made pursuant to subsection 1 for purposes of this section shall be determined as follows:
    Sec. 3.  Section 97B.80, subsections 3 and 4, Code 2023, are amended to read as follows:
   3.  Verification of active duty service and payment of contributions, if required, shall be made to the system. However, a member is not eligible to make contributions receive credit for membership service and prior service under this section if the member is receiving, is eligible to receive, or may in the future be eligible to receive retirement pay from the United States government for active duty in the armed forces, except for retirement pay granted by the United States government under retired pay for nonregular service pursuant to 10 U.S.C. §12731 – 12739. A member receiving retired pay for nonregular service who makes contributions submits verification of active duty service under this section shall provide information required by the system documenting time periods covered under retired pay for nonregular service.
   4.  a.  Effective July 1, 2004, a member eligible for an increased retirement allowance because of the payment of contributions pursuant to subsection 1 under this section is entitled to adjusted payments beginning with the month in which the member pays contributions under this section.
   b.  Effective July 1, 2023, a member eligible for an increased retirement allowance pursuant to subsection 1A is entitled to adjusted payments beginning with the month in which the system verifies the dates of the active duty service of the member.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to receiving veteran’s credit under the Iowa Public Employees’ Retirement System (IPERS).
   The bill provides that a vested or retired member under IPERS who at anytime submits verification of service on active duty in the armed forces of the United States shall receive credit for membership service and prior service for the active duty service up to a maximum of four years of service credit upon submitting verification of the dates of the military service. Unlike current law, the bill provides that the IPERS member shall receive credit for the active duty service without the requirement of making contributions for that service to the retirement system.