HSB 585 (LSB 5302XD (2) 91)

SENATE/HOUSE FILE _____

BY  (PROPOSED IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM BILL)

A BILL FOR

An Act relating to matters under the purview of the Iowa public employees’ retirement system, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 97B.17, subsection 1, Code 2026, is amended to read as follows:
   1.  The system shall establish and maintain records of each member, including but not limited to the amount of wages of each member, the contributions made on behalf of each member with interest, interest dividends credited, beneficiary designations, and applications for benefits of any type. The records may be maintained in paper, magnetic, or electronic form, including optical disk storage, as set forth in chapter 554D. The system may accept, but shall not require, electronic records and electronic signatures to the extent permitted under chapter 554D. These records are the basis for the compilation of the retirement benefits provided under this chapter.
    Sec. 2.  Section 97B.17, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  The system may release the legal name of a member or beneficiary to the treasurer of state for purposes of assisting the system in locating the member or beneficiary.
    Sec. 3.  Section 97B.18, Code 2026, is amended to read as follows:
   97B.18  Statement of accumulated credit.
   After the expiration of each calendar year and prior to July 1 of the succeeding year, the system shall furnish each member with a statement of the member’s accumulated contributions and benefit credits accrued under this chapter up to the end of that calendar year over the prior four quarters and additional information the system deems useful to a member. The system may furnish an estimate of the credits as of the projected normal retirement date of the member under section 97B.45. The records of the system as shown by the statement as to the wages of each individual member for a year and the periods of payment shall be conclusive for the purpose of this chapter, except as otherwise provided in this chapter.
    Sec. 4.  Section 97B.48, subsection 6, Code 2026, is amended to read as follows:
   6.  Effective July 1, 2005, monthly Monthly retirement allowance payments shall be directly deposited without charge to a retired member’s account via electronic funds transfer. A In lieu of electronic funds transfers, a retired member may elect to receive monthly allowance payments in the form of a reloadable payment card for which the system shall not charge an administrative fee, or as paper warrants in lieu of electronic funds transfers, but for which the system shall charge an administrative fee for processing such paper warrants. However, the system may, for good cause shown, waive the administrative fee. The fee may be automatically deducted from the monthly retirement allowance before the warrant is issued to the retired member.
    Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill strikes a prohibition on the Iowa public employees’ retirement system (IPERS) requiring electronic records and electronic signatures of members to the extent permitted under Code chapter 554D (electronic transactions —— computer agreements). The bill also allows IPERS to release the legal name of a member or beneficiary to the treasurer of state to assist IPERS in locating the member or beneficiary.
   The bill removes the requirement for IPERS, between January and June of each calendar year, to provide each member with a statement of the member’s accumulated contributions and benefit credits accrued up to the end of the prior calendar year and instead requires IPERS to provide each member a statement reflecting the prior four quarters during each calendar year.
   Under current law, a retired member can receive monthly retirement allowance payments via electronic funds transfers or, with the cost of an administrative fee, as paper warrants. The bill provides a third option, allowing a retired member to choose to receive monthly payments in the form of a reloadable payment card without being charged an administrative fee.
   The bill takes effect upon enactment.