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Senate File 45 - IntroducedA Bill ForAn Act 1providing for the development of a mandatory defined
2contribution pension plan for certain public employees.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 97A.3, subsection 1, Code 2017, is
2amended to read as follows:
31. All peace officer members of the division of state
4patrol and the division of criminal investigation or the
5predecessor divisions or subunits in the department of public
6safety, excepting the members of the clerical force, who
7are employed by the state of Iowa on July 4, 1949, and all
8persons thereafter employed as members of such divisions or the
9predecessor divisions or subunits in the department of public
10safety or division of narcotics enforcement or division of
11state fire marshal or the predecessor divisions or subunits,
12except the members of the clerical force, shall be members of
13this system, except as otherwise provided in this subsection
14or subsection 3. Effective July 1, 1994, gaming enforcement
15officers employed by the division of criminal investigation
16for excursion boat and gambling structure gambling enforcement
17activities and fire prevention inspector peace officers
18employed by the department of public safety shall be members of
19this system, except as otherwise provided in this subsection
20or subsection 3 or section 97B.42B. Such members shall not
21be required to make contributions under any other pension
22or retirement system of the state of Iowa, anything to the
23contrary notwithstanding. However, peace officer members of
24the division of state patrol and the division of criminal
25investigation or the predecessor divisions or subunits
26in the department of public safety, persons employed as
27members of such divisions or the predecessor divisions or
28subunits in the department of public safety or division of
29narcotics enforcement or division of state fire marshal or the
30predecessor divisions or subunits, gaming enforcement officers,
31and fire prevention inspector peace officers newly hired on or
32after July 1, 2019, shall not be eligible to participate in the
33retirement system under this chapter.
34 Sec. 2. Section 97B.1A, subsection 8, paragraph b, Code
352017, is amended by adding the following new subparagraph:
-1-1 NEW SUBPARAGRAPH. (10) Employees who are employed as
2defined in this chapter for whom coverage under this chapter
3would otherwise be mandatory or optional but who are newly
4hired on or after July 1, 2019.
5 Sec. 3. Section 411.2, subsection 1, Code 2017, is amended
6to read as follows:
71. Except as provided in subsections 2 through 5 6,
8each city in which the fire fighters or police officers are
9appointed under the civil service law of this state, shall
10participate in the retirement system established by this
11chapter for the purpose of providing retirement allowances only
12for fire fighters or police officers, or both, of the cities
13who are so appointed after the date the city comes under the
14retirement system, or benefits to their dependents.
15 Sec. 4. Section 411.2, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 6. A police officer or fire fighter hired
18on or after July 1, 2019, by a city with a population of more
19than eight thousand prior to the results of the federal census
20conducted in 1990 shall not be eligible to participate in the
21retirement system under this chapter.
22 Sec. 5. Section 602.1611, subsection 1, unnumbered
23paragraph 1, Code 2017, is amended to read as follows:
24Judges of the supreme court and court of appeals, district
25judges, and district associate judges are members of the
26judicial retirement system established in article 9, part 1,
27and are not members of the public employees’ retirement system
28established in chapter 97B, except as provided in paragraphs
29“a”, and “b”, and “c”.
30 Sec. 6. Section 602.1611, subsection 1, Code 2017, is
31amended by adding the following new paragraph:
32 NEW PARAGRAPH. c. Judges of the supreme court and court
33of appeals, district judges, and district associate judges
34appointed on or after July 1, 2019, shall not become members
35of the judicial retirement system established in article 9,
-2-1part 1, but shall instead become eligible to participate in
2an alternative defined contribution retirement system as
3established by the state court administrator.
4 Sec. 7. ALTERNATIVE DEFINED CONTRIBUTION PEACE OFFICERS’
5RETIREMENT SYSTEM STUDY — REPORT.
61. The board of trustees of the Iowa department of public
7safety peace officers’ retirement, accident, and disability
8system established by chapter 97A shall conduct a study for the
9development of an alternative defined contribution retirement
10system for peace officers hired on or after July 1, 2019, who
11are ineligible to participate in the Iowa department of public
12safety peace officers’ retirement, accident, and disability
13system established in chapter 97A, as provided in this Act.
14The board shall conduct a study and submit a report, including
15its findings and recommendations, to the public retirement
16systems committee established in section 97D.4, by October 1,
172018.
182. The goal of the study shall be the selection of an
19alternative defined contribution retirement plan that provides
20adequate retirement benefits while reducing and stabilizing the
21cost to taxpayers of providing retirement benefits.
223. In making its recommendation, the board shall consider
23methods of providing medical, disability, and line of duty
24death benefits to affected peace officers. The board shall
25also consider whether the affected peace officers can be
26enrolled in the federal social security system.
27 Sec. 8. ALTERNATIVE DEFINED CONTRIBUTION IOWA PUBLIC
28EMPLOYEES’ RETIREMENT SYSTEM STUDY — REPORT.
291. The Iowa public employees’ retirement system shall
30conduct a study for the development of an alternative defined
31contribution retirement system for employees who would
32otherwise be members of the system but who are hired on or
33after July 1, 2019, and are ineligible to participate in
34the Iowa public employees’ retirement system established
35in chapter 97B, as provided in this Act. The system shall
-3-1conduct a study and submit a report, including its findings and
2recommendations, to the public retirement systems committee
3established in section 97D.4, by October 1, 2018.
42. The goal of the study shall be the selection of an
5alternative defined contribution retirement plan that provides
6adequate retirement benefits while reducing and stabilizing the
7cost to taxpayers of providing retirement benefits.
83. In making its recommendation, the system shall consider
9methods of providing medical, disability, and line of duty
10death benefits to employees who would otherwise be members
11in special service under the system but are ineligible, as
12provided in this Act.
13 Sec. 9. ALTERNATIVE FIRE AND POLICE RETIREMENT SYSTEM STUDY
14— REPORT.
151. The board of trustees of the statewide fire and police
16retirement system established by chapter 411 shall conduct a
17study for the development of an alternative fire and police
18retirement system for police officers and fire fighters hired
19on or after July 1, 2019, who are ineligible to participate in
20the statewide fire and police retirement system, as provided in
21this Act. The board shall conduct a study and submit a report,
22including its findings and recommendations, to the public
23retirement systems committee established in section 97D.4, by
24October 1, 2018.
252. The goal of the study shall be the selection of an
26alternative defined contribution retirement plan that provides
27adequate retirement benefits while reducing and stabilizing the
28cost to taxpayers of providing retirement benefits.
293. In making its recommendation, the board shall consider
30methods of providing medical, disability, and line of duty
31death benefits to affected police officers and fire fighters.
32The board shall also consider whether the affected peace
33officers and fire fighters can be enrolled in the federal
34social security system.
35 Sec. 10. ALTERNATIVE DEFINED CONTRIBUTION JUDICIAL
-4-1RETIREMENT SYSTEM STUDY — REPORT.
21. The state court administrator shall conduct a study
3for the development of an alternative defined contribution
4judicial retirement system for judges appointed on or after
5July 1, 2019, who are ineligible to participate in the judicial
6retirement system, as provided in this Act. The state court
7administrator shall conduct a study and submit a report,
8including its findings and recommendations, to the public
9retirement systems committee established in section 97D.4, by
10October 1, 2018.
112. The goal of the study shall be the selection of an
12alternative defined contribution retirement plan that provides
13adequate retirement benefits to judges while reducing and
14stabilizing the cost to taxpayers of providing retirement
15benefits.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill provides that employees newly hired on or after
20July 1, 2019, who would otherwise be members of the public
21safety peace officers’ retirement, accident, and disability
22system established by Code chapter 97A, the Iowa public
23employees’ retirement system established by Code chapter 97B,
24the statewide fire and police retirement system established by
25Code chapter 411, or the judicial retirement system established
26by Code chapter 602 shall not become members of the applicable
27retirement system. Instead, the bill directs each retirement
28system to develop an alternative defined contribution plan for
29these employees newly hired on or after July 1, 2019. The bill
30provides that each retirement system shall submit the plan to
31create an alternative defined contribution plan to the public
32retirement systems committee established in Code section 97D.4
33by October 1, 2018.
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2contribution pension plan for certain public employees.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 97A.3, subsection 1, Code 2017, is
2amended to read as follows:
31. All peace officer members of the division of state
4patrol and the division of criminal investigation or the
5predecessor divisions or subunits in the department of public
6safety, excepting the members of the clerical force, who
7are employed by the state of Iowa on July 4, 1949, and all
8persons thereafter employed as members of such divisions or the
9predecessor divisions or subunits in the department of public
10safety or division of narcotics enforcement or division of
11state fire marshal or the predecessor divisions or subunits,
12except the members of the clerical force, shall be members of
13this system, except as otherwise provided in this subsection
14or subsection 3. Effective July 1, 1994, gaming enforcement
15officers employed by the division of criminal investigation
16for excursion boat and gambling structure gambling enforcement
17activities and fire prevention inspector peace officers
18employed by the department of public safety shall be members of
19this system, except as otherwise provided in this subsection
20or subsection 3 or section 97B.42B. Such members shall not
21be required to make contributions under any other pension
22or retirement system of the state of Iowa, anything to the
23contrary notwithstanding. However, peace officer members of
24the division of state patrol and the division of criminal
25investigation or the predecessor divisions or subunits
26in the department of public safety, persons employed as
27members of such divisions or the predecessor divisions or
28subunits in the department of public safety or division of
29narcotics enforcement or division of state fire marshal or the
30predecessor divisions or subunits, gaming enforcement officers,
31and fire prevention inspector peace officers newly hired on or
32after July 1, 2019, shall not be eligible to participate in the
33retirement system under this chapter.
34 Sec. 2. Section 97B.1A, subsection 8, paragraph b, Code
352017, is amended by adding the following new subparagraph:
-1-1 NEW SUBPARAGRAPH. (10) Employees who are employed as
2defined in this chapter for whom coverage under this chapter
3would otherwise be mandatory or optional but who are newly
4hired on or after July 1, 2019.
5 Sec. 3. Section 411.2, subsection 1, Code 2017, is amended
6to read as follows:
71. Except as provided in subsections 2 through 5 6,
8each city in which the fire fighters or police officers are
9appointed under the civil service law of this state, shall
10participate in the retirement system established by this
11chapter for the purpose of providing retirement allowances only
12for fire fighters or police officers, or both, of the cities
13who are so appointed after the date the city comes under the
14retirement system, or benefits to their dependents.
15 Sec. 4. Section 411.2, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 6. A police officer or fire fighter hired
18on or after July 1, 2019, by a city with a population of more
19than eight thousand prior to the results of the federal census
20conducted in 1990 shall not be eligible to participate in the
21retirement system under this chapter.
22 Sec. 5. Section 602.1611, subsection 1, unnumbered
23paragraph 1, Code 2017, is amended to read as follows:
24Judges of the supreme court and court of appeals, district
25judges, and district associate judges are members of the
26judicial retirement system established in article 9, part 1,
27and are not members of the public employees’ retirement system
28established in chapter 97B, except as provided in paragraphs
29“a”, and “b”, and “c”.
30 Sec. 6. Section 602.1611, subsection 1, Code 2017, is
31amended by adding the following new paragraph:
32 NEW PARAGRAPH. c. Judges of the supreme court and court
33of appeals, district judges, and district associate judges
34appointed on or after July 1, 2019, shall not become members
35of the judicial retirement system established in article 9,
-2-1part 1, but shall instead become eligible to participate in
2an alternative defined contribution retirement system as
3established by the state court administrator.
4 Sec. 7. ALTERNATIVE DEFINED CONTRIBUTION PEACE OFFICERS’
5RETIREMENT SYSTEM STUDY — REPORT.
61. The board of trustees of the Iowa department of public
7safety peace officers’ retirement, accident, and disability
8system established by chapter 97A shall conduct a study for the
9development of an alternative defined contribution retirement
10system for peace officers hired on or after July 1, 2019, who
11are ineligible to participate in the Iowa department of public
12safety peace officers’ retirement, accident, and disability
13system established in chapter 97A, as provided in this Act.
14The board shall conduct a study and submit a report, including
15its findings and recommendations, to the public retirement
16systems committee established in section 97D.4, by October 1,
172018.
182. The goal of the study shall be the selection of an
19alternative defined contribution retirement plan that provides
20adequate retirement benefits while reducing and stabilizing the
21cost to taxpayers of providing retirement benefits.
223. In making its recommendation, the board shall consider
23methods of providing medical, disability, and line of duty
24death benefits to affected peace officers. The board shall
25also consider whether the affected peace officers can be
26enrolled in the federal social security system.
27 Sec. 8. ALTERNATIVE DEFINED CONTRIBUTION IOWA PUBLIC
28EMPLOYEES’ RETIREMENT SYSTEM STUDY — REPORT.
291. The Iowa public employees’ retirement system shall
30conduct a study for the development of an alternative defined
31contribution retirement system for employees who would
32otherwise be members of the system but who are hired on or
33after July 1, 2019, and are ineligible to participate in
34the Iowa public employees’ retirement system established
35in chapter 97B, as provided in this Act. The system shall
-3-1conduct a study and submit a report, including its findings and
2recommendations, to the public retirement systems committee
3established in section 97D.4, by October 1, 2018.
42. The goal of the study shall be the selection of an
5alternative defined contribution retirement plan that provides
6adequate retirement benefits while reducing and stabilizing the
7cost to taxpayers of providing retirement benefits.
83. In making its recommendation, the system shall consider
9methods of providing medical, disability, and line of duty
10death benefits to employees who would otherwise be members
11in special service under the system but are ineligible, as
12provided in this Act.
13 Sec. 9. ALTERNATIVE FIRE AND POLICE RETIREMENT SYSTEM STUDY
14— REPORT.
151. The board of trustees of the statewide fire and police
16retirement system established by chapter 411 shall conduct a
17study for the development of an alternative fire and police
18retirement system for police officers and fire fighters hired
19on or after July 1, 2019, who are ineligible to participate in
20the statewide fire and police retirement system, as provided in
21this Act. The board shall conduct a study and submit a report,
22including its findings and recommendations, to the public
23retirement systems committee established in section 97D.4, by
24October 1, 2018.
252. The goal of the study shall be the selection of an
26alternative defined contribution retirement plan that provides
27adequate retirement benefits while reducing and stabilizing the
28cost to taxpayers of providing retirement benefits.
293. In making its recommendation, the board shall consider
30methods of providing medical, disability, and line of duty
31death benefits to affected police officers and fire fighters.
32The board shall also consider whether the affected peace
33officers and fire fighters can be enrolled in the federal
34social security system.
35 Sec. 10. ALTERNATIVE DEFINED CONTRIBUTION JUDICIAL
-4-1RETIREMENT SYSTEM STUDY — REPORT.
21. The state court administrator shall conduct a study
3for the development of an alternative defined contribution
4judicial retirement system for judges appointed on or after
5July 1, 2019, who are ineligible to participate in the judicial
6retirement system, as provided in this Act. The state court
7administrator shall conduct a study and submit a report,
8including its findings and recommendations, to the public
9retirement systems committee established in section 97D.4, by
10October 1, 2018.
112. The goal of the study shall be the selection of an
12alternative defined contribution retirement plan that provides
13adequate retirement benefits to judges while reducing and
14stabilizing the cost to taxpayers of providing retirement
15benefits.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill provides that employees newly hired on or after
20July 1, 2019, who would otherwise be members of the public
21safety peace officers’ retirement, accident, and disability
22system established by Code chapter 97A, the Iowa public
23employees’ retirement system established by Code chapter 97B,
24the statewide fire and police retirement system established by
25Code chapter 411, or the judicial retirement system established
26by Code chapter 602 shall not become members of the applicable
27retirement system. Instead, the bill directs each retirement
28system to develop an alternative defined contribution plan for
29these employees newly hired on or after July 1, 2019. The bill
30provides that each retirement system shall submit the plan to
31create an alternative defined contribution plan to the public
32retirement systems committee established in Code section 97D.4
33by October 1, 2018.
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