House File 2069 - Introduced HOUSE FILE 2069 BY GEARHART A BILL FOR An Act providing an annual cost-of-living adjustment for 1 members of the Iowa public employees’ retirement system. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5148YH (2) 91 sc/ns

H.F. 2069 Section 1. Section 97B.49A, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5. Annual adjustment of allowance. A 3 member who retires on or after July 1, 2026, and who receives a 4 monthly retirement allowance under this section, shall have the 5 monthly retirement allowance adjusted as follows: 6 a. On each July 1, the monthly retirement allowance 7 authorized in this section and payable to a member retired 8 prior to that date, and to a beneficiary or contingent 9 annuitant entitled to a monthly retirement allowance prior 10 to that date, shall be adjusted by adding to the monthly 11 retirement allowance payable on that date an amount equal to 12 the sum of one percent of the monthly retirement allowance 13 payable on that date. 14 b. A retired member, beneficiary, or contingent annuitant 15 shall not be eligible for an annual readjustment of allowance 16 provided in this subsection unless the member has attained the 17 age of fifty-five years prior to the member’s termination of 18 employment. 19 c. A retired member, beneficiary, or contingent annuitant 20 that receives an annual adjustment of allowance provided in 21 this subsection shall not be eligible for the retirement 22 dividends under section 97B.49F. 23 Sec. 2. Section 97B.49B, Code 2026, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 5. Annual adjustment of allowance. A 26 member who retires from employment in a protection occupation 27 on or after July 1, 2026, and who receives a monthly retirement 28 allowance under this section, shall have the monthly retirement 29 allowance adjusted as follows: 30 a. On each July 1, the monthly retirement allowance 31 authorized in this section and payable to a member retired 32 prior to that date, and to a beneficiary or contingent 33 annuitant entitled to a monthly retirement allowance prior 34 to that date, shall be adjusted by adding to the monthly 35 -1- LSB 5148YH (2) 91 sc/ns 1/ 2

H.F. 2069 retirement allowance payable on that date an amount equal to 1 the sum of one percent of the monthly retirement allowance 2 payable on that date. 3 b. A retired member, beneficiary, or contingent annuitant 4 shall not be eligible for an annual readjustment of allowance 5 provided in this subsection unless the member has attained the 6 age of fifty-five years prior to the member’s termination of 7 employment. 8 c. A retired member, beneficiary, or contingent annuitant 9 that receives an annual adjustment of allowance provided in 10 this subsection shall not be eligible for the retirement 11 dividends under section 97B.49F. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill establishes a cost-of-living adjustment 16 (COLA) to the monthly retirement allowance for active and 17 inactive members of the Iowa public employees’ retirement 18 system, including members in regular service and protection 19 occupations, and to beneficiaries and contingent annuitants, 20 for retirements occurring on or after July 1, 2026. Beginning 21 July 1, 2026, and on each July 1 thereafter, the monthly 22 retirement allowance of such a member, beneficiary, or 23 contingent annuitant shall be adjusted by adding to the monthly 24 retirement allowance an amount equal to 1 percent of the 25 monthly retirement allowance payable on that date. Such a 26 member, beneficiary, or contingent annuitant is not eligible 27 for the COLA unless the member has attained 55 years of age 28 prior to the retirement date of the member. A retired member, 29 beneficiary, or contingent annuitant that receives the COLA is 30 not eligible for the retirement dividends under Code section 31 97B.49F. 32 A similar annual adjustment provision (1.5 percent) exists 33 under current law for retired sheriffs and deputy sheriffs 34 (Code section 97B.49C). 35 -2- LSB 5148YH (2) 91 sc/ns 2/ 2