House Study Bill 265 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE) A BILL FOR An Act relating to benefits for members of the Iowa public 1 employees’ retirement system who are employed in a 2 protection occupation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2794YC (3) 91 sc/ns

H.F. _____ Section 1. Section 97B.49B, subsection 1, paragraph a, 1 subparagraph (6), Code 2025, is amended to read as follows: 2 (6) For each active or inactive vested member retiring 3 on or after July 1, 2003, and before July 1, 2025, sixty 4 percent plus, if applicable, an additional three-eighths of 5 one percentage point for each additional calendar quarter of 6 eligible service beyond twenty-two years of service for the 7 member, not to exceed a total of twelve additional percentage 8 points. 9 Sec. 2. Section 97B.49B, subsection 1, paragraph a, Code 10 2025, is amended by adding the following new subparagraph: 11 NEW SUBPARAGRAPH . (7) For each active or inactive vested 12 member retiring on or after July 1, 2025, sixty percent plus, 13 if applicable, an additional five-eighths of one percentage 14 point for each additional calendar quarter of eligible service 15 beyond twenty-two years of service for the member, not to 16 exceed a total of twenty additional percentage points. 17 Sec. 3. Section 97B.49B, subsection 2, Code 2025, is amended 18 to read as follows: 19 2. Calculation of monthly allowance. Notwithstanding 20 other provisions of this chapter , a member who is or has 21 been employed in a protection occupation who retires on or 22 after July 1, 1994, and at the time of retirement is at least 23 fifty-five years of age , or is at least fifty years of age with 24 at least twenty-two years of eligible service, may elect to 25 receive, in lieu of the receipt of any benefits as calculated 26 pursuant to section 97B.49A or 97B.49D , a monthly retirement 27 allowance equal to one-twelfth of an amount equal to the 28 applicable percentage of the three-year average covered wage 29 as a member who has been employed in a protection occupation 30 multiplied by a fraction of years of service, with benefits 31 payable during the member’s lifetime. 32 Sec. 4. Section 97B.49B, Code 2025, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 5. Annual adjustment of allowance. A 35 -1- LSB 2794YC (3) 91 sc/ns 1/ 3

H.F. _____ member who retires from a protection occupation on or after 1 July 1, 2025, and who receives a monthly retirement allowance 2 under this section, shall have the monthly retirement allowance 3 adjusted as follows: 4 a. On each July 1, the monthly retirement allowance 5 authorized in this section and payable to a member retired 6 prior to that date, and to a beneficiary or contingent 7 annuitant entitled to a monthly retirement allowance prior 8 to that date, shall be adjusted by adding to the monthly 9 retirement allowance payable on that date an amount equal to 10 the sum of one and one-half percent of the monthly retirement 11 allowance payable on that date. 12 b. A retired member, beneficiary, or contingent annuitant 13 shall not be eligible for an annual readjustment of allowance 14 provided in this subsection unless the member has twenty-two 15 years of eligible service and attained the age of fifty years 16 prior to the member’s termination of employment. 17 c. A retired member, beneficiary, or contingent annuitant 18 that receives an annual adjustment of allowance provided in 19 this subsection shall not be eligible for the retirement 20 dividends under section 97B.49F. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill modifies the Iowa public employees’ retirement 25 system (IPERS) benefits for members employed in a protection 26 occupation. 27 The monthly retirement benefit under IPERS for a member 28 of a protection occupation is calculated by multiplying the 29 retiree’s applicable covered wage by a percentage. Under 30 current law, the applicable percentage is increased by 0.375 31 percent up to a maximum of 12 additional percentage points for 32 calendar quarters of service beyond 22 years of service. The 33 bill increases, for protection occupation members retiring 34 on or after July 1, 2025, the applicable percentage used to 35 -2- LSB 2794YC (3) 91 sc/ns 2/ 3

H.F. _____ calculate the retiree’s monthly retirement benefit by 0.625 1 percent for each calendar quarter of service beyond 22 years of 2 service up to a maximum of 20 additional percentage points. 3 The bill provides that a member of a protection occupation 4 may elect to retire at 50 years of age with 22 years of service 5 and receive the monthly retirement allowance under current law, 6 rather than at age 55. 7 The bill establishes a cost-of-living adjustment (COLA) 8 to the monthly retirement allowance for active and inactive 9 members and to beneficiaries and contingent annuitants for 10 retirements occurring on or after July 1, 2025. Beginning 11 July 1, 2025, and on each July 1 thereafter, the monthly 12 retirement allowance of such a member, beneficiary, or 13 contingent annuitant shall be adjusted by adding to the monthly 14 retirement allowance an amount equal to 1.5 percent of the 15 monthly retirement allowance payable on that date. Such a 16 member, beneficiary, or contingent annuitant is not eligible 17 for the COLA increase unless the member has 22 years of 18 eligible service and attained 50 years of age prior to the 19 retirement date of the member. A retired member, beneficiary, 20 or contingent annuitant that receives the COLA is not eligible 21 for the retirement dividends under Code section 97B.49F. 22 -3- LSB 2794YC (3) 91 sc/ns 3/ 3