House File 2387 - Introduced HOUSE FILE 2387 BY MEGGERS A BILL FOR An Act relating to early retirement benefits for members of the 1 peace officers’ retirement, accident, and disability system. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5231YH (2) 91 sc/ns

H.F. 2387 Section 1. Section 97A.6, subsection 2A, Code 2026, is 1 amended to read as follows: 2 2A. Early retirement benefits. 3 a. Notwithstanding the calculation of the service retirement 4 allowance under subsection 2 , beginning July 1, 1996 2026 , a 5 member who has completed twenty-two twenty-five years or more 6 of creditable service and is at least fifty years of age, but 7 less than fifty-five years of age, who has otherwise completed 8 the requirements for retirement under subsection 1 , may retire 9 and receive a reduced service retirement allowance pursuant to 10 this subsection . The service retirement allowance for a member 11 less than fifty-five years of age shall be calculated in the 12 manner prescribed in subsection 2 , except that the percentage 13 multiplier of the member’s average final compensation used in 14 the determination of the service retirement allowance shall be 15 reduced by the board of trustees pursuant to paragraph “b” . 16 b. On July 1, 1996, and on each July 1 thereafter, the board 17 of trustees shall determine for the respective fiscal year the 18 percent by which the percentage multiplier under subsection 19 2 shall be reduced for each month that a member’s retirement 20 date precedes the member’s fifty-fifth birthday. The board 21 of trustees shall make this determination based upon the most 22 recent actuarial valuation of the system, the calculation of 23 the actuarial cost for each month of retirement of a member 24 prior to age fifty-five, and the premise that the provision of 25 a service retirement allowance to a member who is less than 26 fifty-five years of age will not result in any increase in cost 27 to the system. 28 (1) A member who has completed at least twenty-five years of 29 creditable service but less than thirty-two years shall receive 30 a reduced service retirement allowance of eighty-four percent 31 of the amount calculated in the manner prescribed in subsection 32 2. 33 (2) A member who has completed at least thirty-two years 34 of creditable service but less than thirty-four years shall 35 -1- LSB 5231YH (2) 91 sc/ns 1/ 2

H.F. 2387 receive a reduced service retirement allowance of eighty-eight 1 percent of the amount calculated in the manner prescribed in 2 subsection 2. 3 (3) A member who has completed thirty-four years or more of 4 creditable service shall receive a reduced service retirement 5 allowance of ninety percent of the amount calculated in the 6 manner prescribed in subsection 2. 7 b. On each July 1, the monthly pensions authorized in this 8 subsection payable to retired members and to beneficiaries 9 shall be adjusted by adding to that monthly pension an amount 10 equal to one and one-half percent of the monthly pension 11 payable on that date. 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 Under current law, a member of the department of public 16 safety peace officers’ retirement, accident, and disability 17 system who has completed 22 years or more of creditable service 18 and is at least 50 years of age, but less than 55 years of age, 19 may retire and receive reduced retirement benefits based upon 20 calculations by the board of trustees. This bill increases 21 the required number of years of creditable service for early 22 retirement to 25 and strikes the benefits calculation by the 23 board of trustees. Instead, the bill provides that a member 24 who has completed at least 25 years of creditable service 25 but less than 32 years may retire and receive 84 percent of 26 the benefits the member would have received upon retiring at 27 the age of 55 with 22 years of creditable service, a member 28 retiring with at least 32 years of creditable service but less 29 than 34 years shall receive 88 percent, and a member retiring 30 with 34 years or more of creditable service shall receive 90 31 percent. The bill provides that the monthly pension for an 32 early retirement shall be increased each year on July 1 by 1.5 33 percent of the member or beneficiary’s monthly pension. 34 -2- LSB 5231YH (2) 91 sc/ns 2/ 2