House File 749 - Introduced HOUSE FILE 749 BY JONES A BILL FOR An Act providing an early retirement option under the municipal 1 fire and police retirement system. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1102YH (2) 91 sc/ns
H.F. 749 Section 1. Section 411.6, subsection 1, paragraph a, Code 1 2025, is amended to read as follows: 2 a. Any member in service may retire upon written application 3 to the system, setting forth at what time, not less than thirty 4 nor more than ninety days subsequent to the execution and 5 filing of the application, the member desires to be retired. 6 However, the member at the time specified for retirement shall 7 have attained the age of fifty-five and shall have served 8 twenty-two years or more, and notwithstanding that, during the 9 period of notification, the member may have separated from 10 the service. However, a member may retire at fifty years of 11 age and receive a reduced retirement allowance pursuant to 12 subsection 2A. 13 Sec. 2. Section 411.6, Code 2025, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 2A. Early retirement benefits. 16 a. Notwithstanding the calculation of the service retirement 17 allowance under subsection 2, beginning July 1, 2025, a member 18 who has completed twenty-two years or more of creditable 19 service and is at least fifty years of age, but less than 20 fifty-five years of age, who has otherwise completed the 21 requirements for retirement under subsection 1, may retire and 22 receive a reduced service retirement allowance pursuant to this 23 subsection. The service retirement allowance for a member 24 less than fifty-five years of age shall be calculated in the 25 manner prescribed in subsection 2, except that the percentage 26 multiplier of the member’s average final compensation used in 27 the determination of the service retirement allowance shall be 28 reduced by the board of trustees pursuant to paragraph “b” . 29 b. On July 1, 2025, and on each July 1 thereafter, the board 30 of trustees shall determine for the respective fiscal year the 31 percent by which the percentage multiplier under subsection 32 2 shall be reduced for each month that a member’s retirement 33 date precedes the member’s fifty-fifth birthday. The board 34 of trustees shall make this determination based upon the most 35 -1- LSB 1102YH (2) 91 sc/ns 1/ 2
H.F. 749 recent actuarial valuation of the system, the calculation of 1 the actuarial cost for each month of retirement of a member 2 prior to age fifty-five, and the premise that the provision of 3 a service retirement allowance to a member who is less than 4 fifty-five years of age will not result in any increase in cost 5 to the system. 6 Sec. 3. Section 411.6, subsection 11, unnumbered paragraph 7 1, Code 2025, is amended to read as follows: 8 In the event of the death of any member receiving a 9 retirement allowance under the provisions of subsection 2, 2A, 10 4, or 6 of this section there shall be paid a pension: 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill provides that a member of the municipal fire and 15 police retirement system may elect to retire at 50 years of 16 age with 22 years of service and receive a reduced service 17 retirement allowance, rather than retire at age 55. Similar 18 provisions exist under current law for the peace officers’ 19 retirement, accident, and disability system (Code section 20 97A.6(2A)). 21 -2- LSB 1102YH (2) 91 sc/ns 2/ 2