Text: SF2423
Text: SF2425
Complete Bill History
Senate File 2424
SENATE FILE
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO SSB 3300)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning public retirement systems and other employee
2 benefit=related matters, including the public safety peace
3 officers' retirement, accident, and disability system, the
4 Iowa public employees' retirement system, the statewide fire
5 and police retirement system, and the judicial retirement
6 system, including implementation and transition provisions,
7 and providing effective and retroactive applicability dates.
8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
9 TLSB 6675SV 82
10 ec/sc/5
PAG LIN
1 1 DIVISION I
1 2 PUBLIC SAFETY PEACE OFFICERS' RETIREMENT,
1 3 ACCIDENT, AND DISABILITY SYSTEM
1 4 Section 1. Section 97A.1, subsection 14, Code 2007, is
1 5 amended by striking the subsection.
1 6 Sec. 2. Section 97A.1, subsection 15, Code 2007, is
1 7 amended to read as follows:
1 8 15. "Pensions" shall mean annual payments for life derived
1 9 from the appropriations provided by the state of Iowa and from
1 10 contributions of the members which are deposited in the
1 11 pension accumulation retirement fund. All pensions shall be
1 12 paid in equal monthly installments.
1 13 Sec. 3. Section 97A.5, subsections 3 and 4, Code 2007, are
1 14 amended to read as follows:
1 15 3. COMPENSATION. The trustees shall serve as such without
1 16 compensation, but they shall be reimbursed from the expense
1 17 retirement fund for all necessary expenses which they may
1 18 incur through service on the board.
1 19 4. RULES. The board of trustees shall, from time to time,
1 20 establish such rules not inconsistent with this chapter, for
1 21 the administration of funds the system and the retirement fund
1 22 created by this chapter and as may be necessary or appropriate
1 23 for the transaction of its business.
1 24 Sec. 4. Section 97A.5, subsection 6, paragraph a, Code
1 25 2007, is amended to read as follows:
1 26 a. The department of public safety shall keep in
1 27 convenient form the data necessary for the actuarial valuation
1 28 of the various funds of the system and for checking the
1 29 expense of the system. The commissioner of public safety
1 30 shall keep a record of all the acts and proceedings of the
1 31 board, which records shall be open to public inspection. The
1 32 board of trustees shall biennially make a report to the
1 33 general assembly showing the fiscal transactions of the system
1 34 for the preceding biennium, the amount of the accumulated cash
1 35 and securities of the system, and the last balance sheet
2 1 showing the financial condition of the system by means of an
2 2 actuarial valuation of the assets and liabilities of the
2 3 system.
2 4 Sec. 5. Section 97A.5, subsections 8, 9, 11, and 12, Code
2 5 2007, are amended to read as follows:
2 6 8. MEDICAL BOARD. The board of trustees shall designate a
2 7 single medical provider network as the medical board to be
2 8 composed of three physicians who for the system. The medical
2 9 board shall arrange for and pass upon the all medical
2 10 examinations required under the provisions of this chapter and
2 11 shall report in writing to the board of trustees, its
2 12 conclusions and recommendations upon all matters duly referred
2 13 to it. For examinations required because of disability, a
2 14 physician from the medical board specializing in occupational
2 15 medicine, and a second physician specializing in an
2 16 appropriate field of medicine as determined by the
2 17 occupational medicine physician, shall pass upon the medical
2 18 examinations required for disability retirements and shall
2 19 report to the system in writing their conclusions and
2 20 recommendations upon all matters referred to the medical
2 21 board. Each report of a medical examination under section
2 22 97A.6, subsections 3 and 5, shall include the medical board's
2 23 findings in accordance with section 97A.6 as to the extent of
2 24 the member's physical impairment.
2 25 9. DUTIES OF ACTUARY. The actuary hired by the board of
2 26 trustees shall be the technical advisor of the board of
2 27 trustees on matters regarding the operation of the funds
2 28 retirement fund created by the provisions of this chapter and
2 29 shall perform such other duties as are required in connection
2 30 therewith.
2 31 11. ACTUARIAL INVESTIGATION. At least once in each
2 32 two=year period, the actuary hired by the board of trustees
2 33 shall make an actuarial investigation in the mortality,
2 34 service, and compensation experience of the members and
2 35 beneficiaries of the system, and the interest and other
3 1 earnings on the moneys and other assets of the system, and
3 2 shall make a valuation of the assets and liabilities of the
3 3 funds retirement fund of the system, and taking into account
3 4 the results of the investigation and valuation, the board of
3 5 trustees shall:
3 6 a. Adopt adopt for the system, upon recommendation of the
3 7 system's actuary, such actuarial methods and assumptions,
3 8 interest rate, and mortality and other tables as shall be
3 9 deemed necessary;
3 10 b. Certify the rates of contribution payable by the state
3 11 of Iowa in accordance with section 97A.8 to conduct the
3 12 actuarial valuation of the system.
3 13 12. ANNUAL ACTUARIAL VALUATION.
3 14 a. On the basis of the actuarial methods and assumptions,
3 15 rate of interest, and tables adopted by the board of trustees,
3 16 the actuary hired by the board of trustees shall make an
3 17 annual actuarial valuation of the assets and liabilities of
3 18 the funds of the system retirement fund created by this
3 19 chapter. As a result of the annual actuarial valuation, the
3 20 board of trustees shall certify the rates of contribution
3 21 payable by the state of Iowa in accordance with section 97A.8.
3 22 b. Effective with the fiscal year beginning July 1, 2008,
3 23 the annual actuarial valuation required to be conducted shall
3 24 include information as required by section 97D.5.
3 25 Sec. 6. Section 97A.5, subsection 13, paragraphs b, c, and
3 26 d, Code 2007, are amended to read as follows:
3 27 b. The funds retirement fund established in section 97A.8
3 28 shall be held in trust for the benefit of the members of the
3 29 system and the members' beneficiaries. No part of the corpus
3 30 or income of the funds retirement fund shall be used for, or
3 31 diverted to, purposes other than for the exclusive benefit of
3 32 the members or the members' beneficiaries or for expenses
3 33 incurred in the operation of the funds retirement fund. A
3 34 person shall not have any interest in, or right to, any part
3 35 of the corpus or income of the funds retirement fund except as
4 1 otherwise expressly provided.
4 2 c. Notwithstanding any provision of this chapter to the
4 3 contrary, in the event of a complete discontinuance of
4 4 contributions, for reasons other than achieving fully funded
4 5 status upon an actuarially determined basis, or upon
4 6 termination of the funds retirement fund established in
4 7 section 97A.8, a member shall be vested, to the extent then
4 8 funded, in the benefits which the member has accrued at the
4 9 date of the discontinuance or termination.
4 10 d. Benefits payable from the funds retirement fund
4 11 established in section 97A.8 to members and members'
4 12 beneficiaries shall not be increased due to forfeitures from
4 13 other members. Forfeitures shall be used as soon as possible
4 14 to reduce future contributions by the state to the pension
4 15 accumulation retirement fund, except that the rate shall not
4 16 be less than the minimum rate established in section 97A.8.
4 17 Sec. 7. Section 97A.5, subsection 14, Code 2007, is
4 18 amended to read as follows:
4 19 14. INVESTMENT CONTRACTS. The board of trustees may
4 20 execute contracts and agreements with investment advisors,
4 21 consultants, and investment management and benefit consultant
4 22 firms in the administration of the funds retirement fund
4 23 established in section 97A.8.
4 24 Sec. 8. Section 97A.6, subsection 7, Code 2007, is amended
4 25 by adding the following new paragraph:
4 26 NEW PARAGRAPH. d. Should a disability beneficiary under
4 27 age fifty=five be employed in a public safety occupation, the
4 28 disability beneficiary's retirement allowance shall cease.
4 29 Notwithstanding any provision of this chapter to the contrary,
4 30 if a disability beneficiary is employed in a public safety
4 31 occupation that would otherwise constitute membership service,
4 32 the disability beneficiary shall not become a member of the
4 33 system. For purposes of this paragraph, "public safety
4 34 occupation" means a peace officer, as defined in section
4 35 97A.1; a protection occupation, as defined in section 97B.49B;
5 1 a sheriff or deputy sheriff as defined in section 97B.49C; and
5 2 a police officer or fire fighter as defined in section 411.1,
5 3 who was not restored to active service as provided by this
5 4 subsection.
5 5 Sec. 9. Section 97A.6, subsection 11, Code 2007, is
5 6 amended to read as follows:
5 7 11. PENSIONS OFFSET BY COMPENSATION BENEFITS. Any amounts
5 8 which may be paid or payable by the state under the provisions
5 9 of any workers' compensation or similar law to a member or to
5 10 the dependents of a member on account of any disability or
5 11 death, shall be offset against and payable in lieu of any
5 12 benefits payable out of funds the retirement fund provided by
5 13 the state under the provisions of this chapter on account of
5 14 the same disability or death. In case the present value of
5 15 the total commuted benefits under said workers' compensation
5 16 or similar law is less than the pension reserve on present
5 17 value of the benefits otherwise payable from funds the
5 18 retirement fund provided by the state under this chapter, then
5 19 the present value of the commuted payments shall be deducted
5 20 from the pension reserve payable and such benefits as may be
5 21 provided by the pension reserve system so reduced shall be
5 22 payable under the provisions of this chapter.
5 23 Sec. 10. Section 97A.7, subsections 1, 2, and 3, Code
5 24 Supplement 2007, are amended to read as follows:
5 25 1. The board of trustees shall be the trustees of the
5 26 several funds retirement fund created by this chapter as
5 27 provided in section 97A.8 and shall have full power to invest
5 28 and reinvest such funds subject to the terms, conditions,
5 29 limitations, and restrictions imposed by subsection 2 of this
5 30 section and chapter 12F, and subject to like terms,
5 31 conditions, limitations, and restrictions said trustees shall
5 32 have full power to hold, purchase, sell, assign, transfer, or
5 33 dispose of any of the securities and investments in which any
5 34 of the funds created herein shall retirement fund which have
5 35 been invested, as well as of the proceeds of said investments
6 1 and any moneys belonging to said funds the retirement fund.
6 2 The board of trustees may authorize the treasurer of state to
6 3 exercise any of the duties of this section. When so
6 4 authorized the treasurer of state shall report any
6 5 transactions to the board of trustees at its next monthly
6 6 meeting.
6 7 2. The several funds retirement fund created by this
6 8 chapter may be invested in any investments authorized for the
6 9 Iowa public employees' retirement system in section 97B.7A.
6 10 3. The treasurer of the state shall be the custodian of
6 11 the several funds retirement fund. All payments from said
6 12 funds the retirement fund shall be made by the treasurer only
6 13 upon vouchers signed by two persons designated by the board of
6 14 trustees. A duly attested copy of the resolution of the board
6 15 of trustees designating such persons and bearing on its face
6 16 specimen signatures of such persons shall be filed with the
6 17 treasurer of state as the treasurer's authority for making
6 18 payments on such vouchers. No voucher shall be drawn unless
6 19 it shall previously have been allowed by resolution of the
6 20 board of trustees.
6 21 Sec. 11. Section 97A.8, Code 2007, is amended to read as
6 22 follows:
6 23 97A.8 METHOD OF FINANCING.
6 24 There is hereby created as a special fund, separate and
6 25 apart from all other public moneys or funds of this state, the
6 26 peace officers' retirement, accident, and disability system
6 27 retirement fund, hereafter called the "retirement fund". All
6 28 the assets of the system created and established by this
6 29 chapter shall be credited according to the purpose for which
6 30 they are held to one of three funds, namely, the pension
6 31 accumulation fund, the pension reserve fund, and the expense
6 32 to the retirement fund.
6 33 1. PENSION ACCUMULATION FUND. The pension accumulation
6 34 fund shall be the fund in which shall be accumulated all All
6 35 moneys for the payment of all pensions and other benefits
7 1 payable from contributions made by the state and from which
7 2 shall be paid the lump=sum death benefits for all members
7 3 payable from the said contributions shall be accumulated in
7 4 the retirement fund. The refunds and benefits for all members
7 5 and beneficiaries shall be payable from the retirement fund.
7 6 Contributions to and payments from the pension accumulation
7 7 retirement fund shall be as follows:
7 8 a. On account of each member there shall be paid annually
7 9 into the pension accumulation retirement fund by the state of
7 10 Iowa an amount equal to a certain percentage of the earnable
7 11 compensation of the member to be known as the "normal
7 12 contribution". The rate percent of such contribution shall be
7 13 fixed on the basis of the liabilities of the retirement system
7 14 as shown by annual actuarial valuations.
7 15 b. (1) On the basis of the actuarial methods and
7 16 assumptions, rate of interest, and of the mortality, interest,
7 17 and other tables adopted by the board of trustees, the board
7 18 of trustees, upon the advice of the actuary hired by the board
7 19 for that purpose, shall make each valuation required by this
7 20 chapter pursuant to the requirements of section 97A.5 and
7 21 shall immediately after making such valuation, determine the
7 22 "normal contribution rate". The normal contribution rate
7 23 shall be the rate percent of the earnable compensation of all
7 24 members obtained by deducting from the total liabilities of
7 25 the fund the sum of the amount of the funds in hand to the
7 26 credit of the fund and dividing the remainder by one percent
7 27 of the present value of the prospective future compensation of
7 28 all members as computed on the basis of the rate of interest
7 29 and of mortality and service tables adopted by the board of
7 30 trustees, all equal to the rate required by the system to
7 31 discharge its liabilities, stated as a percentage of the
7 32 earnable compensation of all members, and reduced by the
7 33 employee contribution made pursuant to rate provided in this
7 34 subsection. However, the normal rate of contribution shall
7 35 not be less than seventeen percent. The normal rate of
8 1 contribution shall be determined by the board of trustees
8 2 after each valuation. To assist in determining the normal
8 3 rate of contribution, the board of trustees may adopt a
8 4 smoothing method for valuing the assets of the system. The
8 5 smoothing method is designed to reduce changes in the normal
8 6 contribution rate which could result from fluctuations in the
8 7 market value of the assets of the system.
8 8 (2) Notwithstanding the provisions of subparagraph (1) to
8 9 the contrary, the normal contribution rate shall be as
8 10 follows:
8 11 (a) For the fiscal year beginning July 1, 2008, nineteen
8 12 percent.
8 13 (b) For the fiscal year beginning July 1, 2009, twenty=one
8 14 percent.
8 15 (c) For the fiscal year beginning July 1, 2010,
8 16 twenty=three percent.
8 17 (d) For the fiscal year beginning July 1, 2011,
8 18 twenty=five percent.
8 19 (e) For each fiscal year beginning on or after July 1,
8 20 2012, the lesser of twenty=seven percent or the normal
8 21 contribution rate as calculated pursuant to subparagraph (1).
8 22 c. The total amount payable in each year to the pension
8 23 accumulation retirement fund shall not be less than the rate
8 24 percent known as the normal contribution rate of the total
8 25 compensation earnable by all members during the year.
8 26 However, the aggregate payment by the state shall be
8 27 sufficient when combined with the amount in the retirement
8 28 fund to provide the pensions and other benefits payable out of
8 29 the retirement fund during the then current year.
8 30 d. All lump=sum death benefits on account of death in
8 31 active service payable from contributions of the state shall
8 32 be paid from the pension accumulation retirement fund.
8 33 e. Upon the retirement or death of a member an amount
8 34 equal to the pension reserve on any pension payable to the
8 35 member or on account of the member's death shall be
9 1 transferred from the pension accumulation fund to the pension
9 2 reserve fund.
9 3 f. e. Except as otherwise provided in paragraph "h" "g":
9 4 (1) An amount equal to three and one=tenth percent of each
9 5 member's compensation from the earnable compensation of the
9 6 member shall be paid to the pension accumulation retirement
9 7 fund for the fiscal year beginning July 1, 1989.
9 8 (2) An amount equal to four and one=tenth percent of each
9 9 member's compensation from the earnable compensation of the
9 10 member shall be paid to the pension accumulation retirement
9 11 fund for the fiscal year beginning July 1, 1990.
9 12 (3) An amount equal to five and one=tenth percent of each
9 13 member's compensation from the earnable compensation of the
9 14 member shall be paid to the pension accumulation retirement
9 15 fund for the fiscal year beginning July 1, 1991.
9 16 (4) An amount equal to six and one=tenth percent of each
9 17 member's compensation from the earnable compensation of the
9 18 member shall be paid to the pension accumulation retirement
9 19 fund for the fiscal year beginning July 1, 1992.
9 20 (5) An amount equal to seven and one=tenth percent of each
9 21 member's compensation from the earnable compensation of the
9 22 member shall be paid to the pension accumulation retirement
9 23 fund for the fiscal year beginning July 1, 1993.
9 24 (6) An amount equal to eight and one=tenth percent of each
9 25 member's compensation from the earnable compensation of the
9 26 member shall be paid to the pension accumulation retirement
9 27 fund for the fiscal period beginning July 1, 1994, through
9 28 December 31, 1994, and an amount equal to eight and
9 29 thirty=five hundredths percent of each member's compensation
9 30 from the earnable compensation of the member shall be paid to
9 31 the pension accumulation retirement fund for the fiscal period
9 32 beginning January 1, 1995, through June 30, 1995.
9 33 (7) An amount equal to nine and thirty=five hundredths
9 34 percent of each member's compensation from the earnable
9 35 compensation of the member shall be paid to the pension
10 1 accumulation retirement fund for the fiscal year beginning
10 2 July 1, 1995.
10 3 (8) Notwithstanding any other provision of this chapter,
10 4 beginning July 1, 1996, and each fiscal year thereafter, an
10 5 amount equal to the member's contribution rate times each
10 6 member's compensation shall be paid to the pension
10 7 accumulation retirement fund from the earnable compensation of
10 8 the member. For the purposes of this subparagraph, the
10 9 member's contribution rate shall be nine and thirty=five
10 10 hundredths percent. However, the system shall increase the
10 11 member's contribution rate as necessary to cover any increase
10 12 in cost to the system resulting from statutory changes which
10 13 are enacted by any session of the general assembly meeting
10 14 after January 1, 1995, if the increase cannot be absorbed
10 15 within the contribution rates otherwise established pursuant
10 16 to this paragraph, but subject to a maximum employee
10 17 contribution rate of eleven and three=tenths percent. After
10 18 the employee contribution reaches eleven and three=tenths
10 19 percent, sixty percent of the additional cost of such
10 20 statutory changes shall be paid by the employer under
10 21 paragraph "c" and forty percent of the additional cost shall
10 22 be paid by employees under this paragraph subparagraph (8).
10 23 g. f. The board of trustees shall certify to the director
10 24 of the department of administrative services and the director
10 25 of the department of administrative services shall cause to be
10 26 deducted from the earnable compensation of each member the
10 27 contribution required under this subsection and shall forward
10 28 the contributions to the board of trustees for recording and
10 29 for deposit in the pension accumulation retirement fund.
10 30 The deductions provided for under this subsection shall be
10 31 made notwithstanding that the minimum compensation provided by
10 32 law for any member is reduced. Every member is deemed to
10 33 consent to the deductions made under this section.
10 34 h. g. Notwithstanding the provisions of paragraph "f"
10 35 "e", the following transition percentages apply to members'
11 1 contributions as specified:
11 2 (1) For members who on July 1, 1990, have attained the age
11 3 of forty=nine years or more, an amount equal to nine and
11 4 one=tenth percent of each member's compensation from the
11 5 earnable compensation of the member shall be paid to the
11 6 pension accumulation retirement fund for the fiscal period
11 7 beginning July 1, 1990, through October 15, 1992, and
11 8 commencing October 16, 1992, and for each subsequent fiscal
11 9 period, the rates specified in paragraph "f" "e",
11 10 subparagraphs (4) through (8), shall apply.
11 11 (2) For members who on July 1, 1990, have attained the age
11 12 of forty=eight years but have not attained the age of
11 13 forty=nine years, an amount equal to eight and one=tenth
11 14 percent shall be paid for the fiscal year beginning July 1,
11 15 1990, and an amount equal to nine and one=tenth percent shall
11 16 be paid for the fiscal period beginning July 1, 1991, through
11 17 October 15, 1992, and commencing October 16, 1992, and for
11 18 each subsequent fiscal period, the rates specified in
11 19 paragraph "f" "e", subparagraphs (4) through (8), shall apply.
11 20 (3) For members who on July 1, 1990, have attained the age
11 21 of forty=seven years but have not attained the age of
11 22 forty=eight years, an amount equal to seven and one=tenth
11 23 percent shall be paid for the fiscal year beginning July 1,
11 24 1990, an amount equal to eight and one=tenth percent shall be
11 25 paid for the fiscal year beginning July 1, 1991, and an amount
11 26 equal to nine and one=tenth percent shall be paid for the
11 27 fiscal period beginning July 1, 1992, through October 15,
11 28 1992, and commencing October 16, 1992, and for each subsequent
11 29 fiscal period, the rates specified in paragraph "f" "e",
11 30 subparagraphs (4) through (8), shall apply.
11 31 (4) For members who on July 1, 1990, have attained the age
11 32 of forty=six years but have not attained the age of
11 33 forty=seven years, an amount equal to six and one=tenth
11 34 percent shall be paid for the fiscal year beginning July 1,
11 35 1990, an amount equal to seven and one=tenth percent shall be
12 1 paid for the fiscal year beginning July 1, 1991, an amount
12 2 equal to eight and one=tenth percent shall be paid for the
12 3 fiscal period beginning July 1, 1992, through October 15,
12 4 1992, and commencing October 16, 1992, and for each subsequent
12 5 fiscal period, the rates specified in paragraph "f" "e",
12 6 subparagraphs (4) through (8), shall apply.
12 7 (5) For members who on July 1, 1990, have attained the age
12 8 of forty=five years but have not attained the age of forty=six
12 9 years, an amount equal to five and one=tenth percent shall be
12 10 paid for the fiscal year beginning July 1, 1990, an amount
12 11 equal to six and one=tenth percent shall be paid for the
12 12 fiscal year beginning July 1, 1991, and an amount equal to
12 13 seven and one=tenth percent shall be paid for the fiscal
12 14 period beginning July 1, 1992, through October 15, 1992.
12 15 Commencing October 16, 1992, and for each subsequent fiscal
12 16 period, the rates specified in paragraph "f" "e",
12 17 subparagraphs (4) through (8), shall apply.
12 18 i. h. (1) Notwithstanding paragraph "g" "f" or other
12 19 provisions of this chapter, beginning January 1, 1995, for
12 20 federal income tax purposes, and beginning January 1, 1999,
12 21 for state income tax purposes, member contributions required
12 22 under paragraph "f" "e" or "h" "g" which are picked up by the
12 23 department shall be considered employer contributions for
12 24 federal and state income tax purposes, and the department
12 25 shall pick up the member contributions to be made under
12 26 paragraph "f" "e" or "h" "g" by its employees. The department
12 27 shall pick up these contributions by reducing the salary of
12 28 each of its employees covered by this chapter by the amount
12 29 which each employee is required to contribute under paragraph
12 30 "f" "e" or "h" "g" and shall certify the amount picked up in
12 31 lieu of the member contributions to the department of
12 32 administrative services. The department of administrative
12 33 services shall forward the amount of the contributions picked
12 34 up to the board of trustees for recording and deposit in the
12 35 pension accumulation retirement fund.
13 1 (2) Member contributions picked up by the department under
13 2 subparagraph (1) shall be treated as employer contributions
13 3 for federal and state income tax purposes only and for all
13 4 other purposes of this chapter shall be treated as employee
13 5 contributions and deemed part of the employee's earnable
13 6 compensation or salary.
13 7 2. PENSION RESERVE FUND. The pension reserve fund shall
13 8 be the fund in which shall be held the reserves on all
13 9 pensions granted to members or to their beneficiaries and from
13 10 which such pensions and benefits in lieu thereof shall be
13 11 paid. Should a beneficiary retired on account of disability
13 12 be restored to active service and again become a member of the
13 13 system, the member's pension reserve shall be transferred from
13 14 the pension reserve fund to the pension accumulation fund.
13 15 Should the pension of a disability beneficiary be reduced as a
13 16 result of an increase in the beneficiary's amount earned, the
13 17 amount of the annual reduction in the beneficiary's pension
13 18 shall be paid annually into the pension accumulation fund
13 19 during the period of such reduction.
13 20 3. 2. a. EXPENSE FUND. The expense fund shall be the
13 21 fund to which shall be credited all money provided by the
13 22 state of Iowa to pay the administration expenses of the system
13 23 and from which shall be paid all All the expenses necessary in
13 24 connection with the administration and operation of the system
13 25 shall be paid from the retirement fund. Biennially the board
13 26 of trustees shall estimate the amount of money necessary to be
13 27 paid into the expense fund during the ensuing biennium to
13 28 provide for the expense of operation of the system.
13 29 Investment management expenses shall be charged to the
13 30 investment income of the system and there is appropriated from
13 31 the system an amount required for the investment management
13 32 expenses. The board of trustees shall report the investment
13 33 management expenses for the fiscal year as a percent of the
13 34 market value of the system.
13 35 b. For purposes of this subsection, investment management
14 1 expenses are limited to the following:
14 2 a. (1) Fees for investment advisors, consultants, and
14 3 investment management and benefit consultant firms hired by
14 4 the board of trustees in administering this chapter.
14 5 b. (2) Fees and costs for safekeeping fund assets.
14 6 c. (3) Costs for performance and compliance monitoring,
14 7 and accounting for fund investments.
14 8 d. (4) Any other costs necessary to prudently invest or
14 9 protect the assets of the fund.
14 10 Sec. 12. Section 97A.11, Code 2007, is amended to read as
14 11 follows:
14 12 97A.11 CONTRIBUTIONS BY THE STATE.
14 13 On or before the first day of November in each year, the
14 14 board of trustees shall certify to the director of the
14 15 department of administrative services the amounts which will
14 16 become due and payable during the year next following to the
14 17 pension accumulation retirement fund and the expense fund.
14 18 The amounts so certified shall be paid by the director of the
14 19 department of administrative services out of the funds
14 20 appropriated for the Iowa department of public safety, to the
14 21 treasurer of state, the same to be credited to the system for
14 22 the ensuing year.
14 23 Sec. 13. Section 97A.12, Code 2007, is amended to read as
14 24 follows:
14 25 97A.12 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR
14 26 ASSIGNMENT == EXCEPTIONS.
14 27 The right of any person to a pension, annuity, or
14 28 retirement allowance, to the return of contributions, the
14 29 pension, annuity, or retirement allowance itself, any optional
14 30 benefit or death benefit, any other right accrued or accruing
14 31 to any person under this chapter, and the moneys in the
14 32 various funds retirement fund created under this chapter, are
14 33 not subject to execution, garnishment, attachment, or any
14 34 other process whatsoever, and are unassignable except for the
14 35 purposes of enforcing child, spousal, or medical support
15 1 obligations or marital property orders, or as otherwise
15 2 specifically provided in this chapter. For the purposes of
15 3 enforcing child, spousal, or medical support obligations, the
15 4 garnishment or attachment of or the execution against
15 5 compensation due a person under this chapter shall not exceed
15 6 the amount specified in 15 U.S.C. } 1673(b).
15 7 Sec. 14. Section 97A.14, Code 2007, is amended to read as
15 8 follows:
15 9 97A.14 HOSPITALIZATION AND MEDICAL ATTENTION.
15 10 The board of trustees shall provide hospital, nursing, and
15 11 medical attention for the members in service when injured
15 12 while in the performance of their duties and shall continue to
15 13 provide hospital, nursing, and medical attention for injuries
15 14 or diseases incurred while in the performance of their duties
15 15 for the members receiving a retirement allowance under section
15 16 97A.6, subsection 6. The cost of hospital, nursing, and
15 17 medical attention shall be paid out of the expense retirement
15 18 fund. However, any amounts received by the injured person
15 19 under the workers' compensation law of the state, or from any
15 20 other source for such specific purposes, shall be deducted
15 21 from the amount paid by the board of trustees provisions of
15 22 this section.
15 23 Sec. 15. Section 97A.14A, subsection 5, Code 2007, is
15 24 amended to read as follows:
15 25 5. All funds recovered by the system under this section
15 26 shall be deposited in the pension accumulation retirement fund
15 27 created in section 97A.8.
15 28 Sec. 16. Section 97A.15, subsection 2, paragraph a, Code
15 29 2007, is amended to read as follows:
15 30 a. "Accumulated contributions" means the sum of all
15 31 amounts deducted from the compensation of a member and
15 32 credited to the member's individual account in the annuity
15 33 savings fund together with regular interest thereon as
15 34 provided in this subsection. Accumulated contributions do not
15 35 include any amount deducted from the compensation of a member
16 1 and credited to the pension accumulation retirement fund.
16 2 Sec. 17. Section 97A.15, subsection 8, Code 2007, is
16 3 amended to read as follows:
16 4 8. The actuary shall annually determine the amount
16 5 required in the annuity reserve fund. If the amount required
16 6 is less than the amount in the annuity reserve fund, the board
16 7 of trustees shall transfer the excess funds from the annuity
16 8 reserve fund to the pension accumulation retirement fund. If
16 9 the amount required is more than the amount in the annuity
16 10 reserve fund, the board of trustees shall transfer the amount
16 11 prescribed by the actuary to the annuity reserve fund from the
16 12 pension accumulation retirement fund.
16 13 DIVISION II
16 14 IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
16 15 Sec. 18. Section 97B.1A, subsection 20, paragraph a, Code
16 16 2007, is amended to read as follows:
16 17 a. Service in the armed forces of the United States, if
16 18 the employee was employed by a covered employer immediately
16 19 prior to entry into the armed forces, and if the any of the
16 20 following requirements are met:
16 21 (1) The employee was released from service and returns to
16 22 covered employment with an employer within twelve months of
16 23 the date on which the employee has the right of release from
16 24 service or within a longer period as required by the
16 25 applicable laws of the United States.
16 26 (2) The employee, while serving on active duty in the
16 27 armed forces of the United States in an area designated by the
16 28 president of the United States or the United States Congress
16 29 as a combat zone or as a qualified hazardous duty area, or
16 30 deployed outside the United States away from the individual's
16 31 permanent duty station while participating in an operation
16 32 designated by the United States secretary of defense as a
16 33 contingency operation as defined in 10 U.S.C. } 101(a)(13), or
16 34 which became such a contingency operation by the operation of
16 35 law, dies, or suffers an injury or acquires a disease
17 1 resulting in death, so long as the death from the injury or
17 2 disease occurs within a two=year period from the date the
17 3 employee suffered the active duty injury or disease and the
17 4 active duty injury or disease prevented the employee from
17 5 returning to covered employment as provided in subparagraph
17 6 (1).
17 7 Sec. 19. Section 97B.1A, subsection 26, paragraph a,
17 8 subparagraph (2), subparagraph subdivision (i), Code 2007, is
17 9 amended to read as follows:
17 10 (i) Payments for allowances made to an employee that are
17 11 not included in an employee's federal taxable income except
17 12 for those allowances included as wages for a member of the
17 13 general assembly.
17 14 Sec. 20. Section 97B.1A, subsection 26, paragraph a,
17 15 subparagraph (2), Code 2007, is amended by adding the
17 16 following new subparagraph subdivision:
17 17 NEW SUBPARAGRAPH SUBDIVISION. (n) Bonuses of any type,
17 18 whether paid in a lump sum or in installments.
17 19 Sec. 21. Section 97B.4, subsection 2, Code Supplement
17 20 2007, is amended by adding the following new paragraph:
17 21 NEW PARAGRAPH. d. In administering this chapter, the
17 22 system shall not be a participating agency for purposes of
17 23 chapter 8A, subchapter II.
17 24 Sec. 22. Section 97B.4, subsection 4, paragraph d, Code
17 25 Supplement 2007, is amended to read as follows:
17 26 d. ANNUAL VALUATION OF ASSETS. The system shall cause an
17 27 annual actuarial valuation to be made of the assets and
17 28 liabilities of the retirement system and shall prepare an
17 29 annual statement of the amounts to be contributed under this
17 30 chapter, and shall publish annually such valuation of the
17 31 assets and liabilities and the statement of receipts and
17 32 disbursements of the retirement system. Based upon the
17 33 actuarial methods and assumptions adopted by the board for the
17 34 annual actuarial valuation, the system shall certify to the
17 35 governor the contribution rates determined thereby as the
18 1 rates necessary and sufficient for members and employers to
18 2 fully fund the benefits and retirement allowances being
18 3 credited. Effective with the fiscal year beginning July 1,
18 4 2008, the annual actuarial valuation required by this
18 5 paragraph shall include information as required by section
18 6 97D.5 for each membership group which separately determines
18 7 contribution rates under this chapter.
18 8 Sec. 23. Section 97B.7, subsection 3, paragraph d, Code
18 9 2007, is amended to read as follows:
18 10 d. To be used to pay for investment management expenses
18 11 incurred in the management of the retirement fund. Expenses
18 12 incurred pursuant to this paragraph shall be charged to the
18 13 investment income of the retirement fund. However, the amount
18 14 appropriated for a fiscal year under this paragraph shall not
18 15 exceed four=tenths of one percent of the market value of the
18 16 retirement fund.
18 17 Sec. 24. Section 97B.9, subsections 1 and 2, Code 2007,
18 18 are amended to read as follows:
18 19 1. An employer shall be charged the greater of ten twenty
18 20 dollars per occurrence or interest at the combined interest
18 21 and dividend rate required under section 97B.70 for the
18 22 applicable calendar year for contributions unpaid on the date
18 23 on which they are due and payable as prescribed by the system.
18 24 The system may adopt rules prescribing circumstances for which
18 25 the interest or charge shall not accrue with respect to
18 26 contributions required. Interest or charges collected
18 27 pursuant to this section shall be paid into the Iowa public
18 28 employees' retirement fund.
18 29 2. If within thirty days after due notice the employer
18 30 defaults in payment of contributions or interest thereon, the
18 31 amount due shall may be collected by civil action in the name
18 32 of the system, and the employer adjudged in default shall pay
18 33 the costs of such action. Civil actions brought under this
18 34 section to collect contributions or interest thereon shall be
18 35 heard by the court at the earliest possible date and shall be
19 1 entitled to preference upon the calendar of the court over all
19 2 other civil actions.
19 3 Sec. 25. Section 97B.10, subsection 3, Code 2007, is
19 4 amended to read as follows:
19 5 3. Except as provided in this subsection, interest
19 6 Interest shall not be paid on credits issued pursuant to this
19 7 section. However, if a credit for contributions paid prior to
19 8 an individual's decision to elect out of coverage pursuant to
19 9 section 97B.42A is issued, accumulated interest and interest
19 10 on dividends as provided in section 97B.70 shall apply. In
19 11 addition, the system may, at any time, apply accumulated
19 12 interest and interest dividends as provided in section 97B.70
19 13 on any credits issued under this section if the system finds
19 14 that the crediting of interest is just and equitable.
19 15 Sec. 26. Section 97B.11, Code 2007, is amended to read as
19 16 follows:
19 17 97B.11 CONTRIBUTIONS BY EMPLOYER AND EMPLOYEE.
19 18 1. Each employer shall deduct from the wages of each
19 19 member of the retirement system a contribution in the amount
19 20 of the applicable employee percentage of the covered wages
19 21 paid by the employer and such additional amount if otherwise
19 22 required by law, until the member's termination from
19 23 employment. The contributions of the employer shall be in the
19 24 amount of the applicable employer percentage of the covered
19 25 wages of the member and such additional amount if otherwise
19 26 required by law.
19 27 2. For Prior to July 1, 2011, for purposes of this
19 28 section, unless the context otherwise requires:
19 29 a. "Applicable employee percentage" means the percentage
19 30 rate equal to three and seven=tenths percent plus forty
19 31 percent of the total additional percentage.
19 32 b. "Applicable employer percentage" means the percentage
19 33 rate equal to five and seventy=five hundredths percent plus
19 34 sixty percent of the total additional percentage.
19 35 c. "Total additional percentage" means as follows:
20 1 (1) For, for the fiscal period beginning July 1, 2007,
20 2 through June 30, 2011, the total additional percentage for a
20 3 fiscal year shall be the total additional percentage for the
20 4 prior fiscal year plus, only if the total comparison
20 5 percentage is greater than the total of the applicable
20 6 employee percentage and the applicable employer percentage for
20 7 the prior fiscal year, one=half percentage point.
20 8 (2) For each fiscal year beginning on or after July 1,
20 9 2011, the total additional percentage shall be the total
20 10 additional percentage for the prior fiscal year.
20 11 d. "Total comparison percentage" means the percentage rate
20 12 that the system determines, based upon the most recent
20 13 actuarial valuation of the retirement system, would be
20 14 sufficient to amortize the unfunded actuarial liability of the
20 15 retirement system in ten years.
20 16 3. On and after July 1, 2011, for purposes of this
20 17 section, unless the context otherwise requires:
20 18 a. For members in regular service:
20 19 (1) "Applicable employee percentage" means the percentage
20 20 rate equal to forty percent of the required contribution rate
20 21 for members in regular service.
20 22 (2) "Applicable employer percentage" means the percentage
20 23 rate equal to sixty percent of the required contribution rate
20 24 for members in regular service.
20 25 b. For members in special service in a protection
20 26 occupation as described in section 97B.49B:
20 27 (1) "Applicable employee percentage" means the percentage
20 28 rate equal to forty percent of the required contribution rate
20 29 for members described in section 97B.49B.
20 30 (2) "Applicable employer percentage" means the percentage
20 31 rate equal to sixty percent of the required contribution rate
20 32 for members described in section 97B.49B.
20 33 c. For members in special service as a county sheriff or
20 34 deputy sheriff as described in section 97B.49C:
20 35 (1) "Applicable employee percentage" means the percentage
21 1 rate equal to fifty percent of the required contribution rate
21 2 for members described in section 97B.49C.
21 3 (2) "Applicable employer percentage" means the percentage
21 4 rate equal to fifty percent of the required contribution rate
21 5 for members described in section 97B.49C.
21 6 d. "Required contribution rate" means that percentage of
21 7 the covered wages of members in regular service, members
21 8 described in section 97B.49B, and members described in section
21 9 97B.49C, that the system shall, for each fiscal year,
21 10 separately set for members in each membership category as
21 11 provided in this paragraph. The required contribution rate
21 12 for a membership category shall be the contribution rate the
21 13 system actuarially determines, based upon the most recent
21 14 actuarial valuation of the system and using the actuarial
21 15 methods, assumptions, and funding policy approved by the
21 16 investment board, is the rate required by the system to
21 17 discharge its liabilities as a percentage of the covered wages
21 18 of members in that membership category. However, the required
21 19 contribution rate set by the system for a fiscal year shall
21 20 not vary by more than one=half percentage point from the
21 21 required contribution rate for the prior fiscal year.
21 22 Sec. 27. Section 97B.14, Code 2007, is amended to read as
21 23 follows:
21 24 97B.14 CONTRIBUTIONS FORWARDED.
21 25 Contributions deducted from the wages of the member under
21 26 section 97B.11 prior to January 1, 1995, member contributions
21 27 picked up by the employer under section 97B.11A beginning
21 28 January 1, 1995, and the employer's contribution shall be
21 29 forwarded to the system for recording and deposited with the
21 30 treasurer of the state to the credit of the Iowa public
21 31 employees' retirement fund. Contributions shall be remitted
21 32 monthly, if total contributions by both employee and employer
21 33 amount to one hundred dollars or more each month, and shall be
21 34 otherwise paid in such manner, at such times, and under such
21 35 conditions, either by copies of payrolls or other methods
22 1 necessary or helpful in securing proper identification of the
22 2 member, as may be prescribed by the system.
22 3 Sec. 28. Section 97B.33, Code 2007, is amended to read as
22 4 follows:
22 5 97B.33 CERTIFICATION TO DIRECTOR PAYMENT TO INDIVIDUALS.
22 6 Upon final decision of the system, or upon final judgment
22 7 of any court of competent jurisdiction, that any person is
22 8 entitled to any payment or payments under this chapter, the
22 9 system shall certify to the director of the department of
22 10 administrative services the name and address of the person so
22 11 entitled to receive such payment or payments, the amount of
22 12 such payment or payments, and the time at which such payment
22 13 or payments should be made, and the system, through the
22 14 director of the department of administrative services, shall
22 15 make payment in accordance with the certification of the
22 16 system to the person, provided that where judicial review of
22 17 the system system's decision is or may be sought in accordance
22 18 with the terms of the Iowa administrative procedure Act,
22 19 chapter 17A, certification of payment may be withheld pending
22 20 such review. The director of the department of administrative
22 21 services shall not be held personally liable for any payment
22 22 or payments made in accordance with a certification by the
22 23 system.
22 24 Sec. 29. Section 97B.34A, subsections 1 and 2, Code 2007,
22 25 are amended to read as follows:
22 26 1. If the total sum to be paid to the minor is less than
22 27 ten the greater of twenty=five thousand dollars or the maximum
22 28 amount permitted under section 565B.7, subsection 3, the funds
22 29 may be paid to an adult as custodian for the minor. The
22 30 custodian must complete the proper forms as determined by the
22 31 system.
22 32 2. If the total sum to be paid to the minor is equal to or
22 33 more than ten thousand dollars the amount authorized in
22 34 subsection 1, the funds must be paid to a court=established
22 35 conservator. The system shall not make payment until the
23 1 conservatorship has been established and the system has
23 2 received the appropriate documentation.
23 3 Sec. 30. Section 97B.38, Code 2007, is amended to read as
23 4 follows:
23 5 97B.38 FEES FOR SERVICES.
23 6 The system may, by rule, prescribe reasonable fees which
23 7 may be charged for production costs incurred, including staff
23 8 time and materials, associated with performing to perform its
23 9 duties under this chapter for active, inactive, and retired
23 10 members, beneficiaries, and the general public, where such
23 11 production costs are more than de minimis, as determined by
23 12 the system.
23 13 Sec. 31. Section 97B.49B, subsection 1, paragraph e, Code
23 14 2007, is amended by adding the following new subparagraphs:
23 15 NEW SUBPARAGRAPH. (9) A jailer or detention officer who
23 16 performs duties as a jailer, including but not limited to the
23 17 transportation of inmates, who is certified as having
23 18 completed jailer training pursuant to chapter 80B, and who is
23 19 employed by a county as a jailer.
23 20 NEW SUBPARAGRAPH. (10) An employee covered by the merit
23 21 system as provided in chapter 8A, subchapter IV, whose primary
23 22 duty is providing security at Iowa national guard
23 23 installations and facilities and who carries or is licensed to
23 24 carry a firearm while performing those duties.
23 25 NEW SUBPARAGRAPH. (11) An emergency medical care provider
23 26 who provides emergency medical services, as defined in section
23 27 147A.1, and who is not a member of the retirement systems
23 28 established in chapter 410 or 411.
23 29 NEW SUBPARAGRAPH. (12) An investigator employed by a
23 30 county attorney's office who is a certified law enforcement
23 31 officer and who is deputized as an investigator for the county
23 32 attorney's office by the sheriff of the applicable county.
23 33 Sec. 32. Section 97B.49B, subsection 3, paragraph a, Code
23 34 2007, is amended by striking the paragraph.
23 35 Sec. 33. Section 97B.49C, subsection 3, paragraph a, Code
24 1 2007, is amended by striking the paragraph.
24 2 Sec. 34. Section 97B.49F, subsection 1, paragraph b,
24 3 subparagraph (2), subparagraph subdivision (b), Code 2007, is
24 4 amended to read as follows:
24 5 (b) The percentage representing the percentage amount the
24 6 actuary has certified, in the annual actuarial valuation of
24 7 the retirement system as of June 30 of the year in which the
24 8 dividend is to be paid, that the fund can absorb without
24 9 requiring an increase in the employer and employee
24 10 contributions to the fund. The actuary's certification of
24 11 such percentage amount shall be based on a comparison of the
24 12 actuarially required contribution rate for the fiscal year of
24 13 the dividend adjustment to the statutory contribution rate for
24 14 that same fiscal year. If the actuarially required
24 15 contribution rate exceeds the statutory contribution rate for
24 16 that same fiscal year, the percentage amount shall be zero.
24 17 Sec. 35. Section 97B.49H, subsection 3, Code 2007, is
24 18 amended to read as follows:
24 19 3. The system shall annually determine the amount to be
24 20 credited to the supplemental accounts of active members. The
24 21 total amount credited to the supplemental accounts of all
24 22 active members shall not exceed the amount that the system
24 23 determines, in consultation with the system's actuary, can be
24 24 absorbed without significantly impacting the funded status of
24 25 leaves the system fully funded following the crediting of the
24 26 total amount to the supplemental accounts. The amount to be
24 27 credited shall not be greater than the amount calculated by
24 28 multiplying the member's covered wages for the applicable wage
24 29 reporting period by the supplemental rate. For purposes of
24 30 this subsection, the supplemental rate is the difference, if
24 31 positive, between the combined employee and employer statutory
24 32 contribution rates in effect under section 97B.11 and the
24 33 normal cost rate of the retirement system as determined by the
24 34 system's actuary in the most recent annual actuarial valuation
24 35 of the retirement system. The credits shall be made at least
25 1 quarterly to each member's account at the time that covered
25 2 wages are reported for each wage reporting period during the
25 3 calendar year following a determination that the retirement
25 4 system does not have an unfunded accrued liability will remain
25 5 fully funded following the crediting of the total amount to
25 6 the supplemental accounts. The normal cost rate, calculated
25 7 according to the actuarial cost method used, is the percent of
25 8 pay allocated to each year of service that is necessary to
25 9 fund projected benefits over all members' service with the
25 10 retirement system.
25 11 Sec. 36. Section 97B.50, subsection 2, Code 2007, is
25 12 amended by adding the following new paragraph:
25 13 NEW PARAGRAPH. d. For a vested member who retires from
25 14 the retirement system due to disability on or after July 1,
25 15 2009, and commences receiving disability benefits pursuant to
25 16 the federal Railroad Retirement Act, 45 U.S.C. } 231 et seq.,
25 17 or the federal Social Security Act, 42 U.S.C. } 423 et seq.,
25 18 the system may require the vested member to certify on an
25 19 annual basis continued eligibility for disability payments
25 20 under the federal Railroad Retirement Act or the federal
25 21 Social Security Act. If the vested member is under the age at
25 22 which disability benefits are converted under the federal
25 23 Social Security Act or the federal Railroad Retirement Act to
25 24 retirement benefits and is no longer eligible for disability
25 25 payments under either the federal Railroad Retirement Act or
25 26 the federal Social Security Act, the vested member shall no
25 27 longer be eligible to receive retirement benefits as provided
25 28 by this subsection. If the system has paid retirement
25 29 benefits to the member between the month the member was no
25 30 longer eligible for payment pursuant to the federal Railroad
25 31 Retirement Act or the federal Social Security Act and the
25 32 month the system terminated retirement benefits under this
25 33 paragraph, the member shall return all retirement benefits
25 34 paid by the system following the termination of such federal
25 35 disability benefits, plus interest. The system shall adopt
26 1 rules pursuant to chapter 17A to implement this paragraph.
26 2 Sec. 37. Section 97B.50A, subsection 12, Code 2007, is
26 3 amended to read as follows:
26 4 12. CONTRIBUTIONS. The expenses incurred in the
26 5 administration of this section by the system shall be paid
26 6 through contributions as determined pursuant to section
26 7 97B.49B, subsection 3, or section 97B.49C, subsection 3, as
26 8 applicable 97B.11.
26 9 Sec. 38. Section 97B.52, subsection 1, paragraph a,
26 10 unnumbered paragraphs 1 and 3, Code 2007, are amended to read
26 11 as follows:
26 12 A lump sum payment equal to the accumulated contributions
26 13 of the member at the date of death plus the product of an
26 14 amount equal to the highest year of covered wages of the
26 15 deceased member and the number of years of membership service
26 16 divided by the applicable denominator. However, a lump sum
26 17 payment made to a beneficiary under this paragraph due to the
26 18 death of a member shall not be less than the amount that would
26 19 have been payable on the death of the member on June 30, 1984,
26 20 under this paragraph as it appeared in the 1983 Code.
26 21 Effective July 1, 1978, a method of payment under this
26 22 paragraph filed with the system by a member does not apply.
26 23 Sec. 39. Section 97B.53B, Code 2007, is amended to read as
26 24 follows:
26 25 97B.53B ROLLOVERS OF MEMBERS' ACCOUNTS.
26 26 1. As used in this section, unless the context otherwise
26 27 requires, and to the extent permitted by the internal revenue
26 28 service:
26 29 a. "Direct rollover" means a payment by the system to the
26 30 eligible retirement plan specified by the member or the
26 31 member's surviving spouse an eligible person.
26 32 b. "Eligible person" means any of the following:
26 33 (1) The member.
26 34 (2) The member's surviving spouse.
26 35 (3) The member's spouse or former spouse as an alternate
27 1 payee under a qualified domestic relations order.
27 2 (4) Effective January 1, 2007, the member's nonspouse
27 3 beneficiaries who are designated beneficiaries as defined by
27 4 section 401(a)(9)(E) of the federal Internal Revenue Code, as
27 5 authorized under section 829 of the federal Pension Protection
27 6 Act of 2006.
27 7 c. "Eligible retirement plan" means either, for an
27 8 eligible person, any of the following retirement plans that
27 9 accepts can accept an eligible rollover distribution from a
27 10 member or a member's surviving spouse that eligible person:
27 11 (1) An individual retirement account in accordance with
27 12 section 408(a) of the federal Internal Revenue Code.
27 13 (2) An individual retirement annuity in accordance with
27 14 section 408(b) of the federal Internal Revenue Code.
27 15 (3) In addition, an "eligible retirement plan" includes an
27 16 An annuity plan in accordance with section 403(a) of the
27 17 federal Internal Revenue Code, or a qualified trust in
27 18 accordance with section 401(a) of the federal Internal Revenue
27 19 Code, that accepts an eligible rollover distribution from a
27 20 member.
27 21 (4) Effective January 1, 2002, the term "eligible
27 22 retirement plan" also includes an annuity contract described
27 23 in section 403(b) of the federal Internal Revenue Code, and an
27 24 eligible plan under section 457(b) of the federal Internal
27 25 Revenue Code which is maintained by a state, political
27 26 subdivision of a state, or any agency or instrumentality of a
27 27 state or political subdivision of a state that chooses to
27 28 separately account for amounts transferred into such eligible
27 29 retirement plan from the system.
27 30 (5) Effective January 1, 2008, a Roth individual
27 31 retirement account or a Roth individual retirement annuity
27 32 established under section 408A of the Internal Revenue Code.
27 33 c. d. (1) "Eligible rollover distribution" includes any
27 34 of the following:
27 35 (a) All or any portion of a member's account and
28 1 supplemental account.
28 2 (b) Effective January 1, 2002, after=tax employee
28 3 contributions, if the plan to which such amounts are to be
28 4 transferred is an individual retirement account described in
28 5 federal Internal Revenue Code section 408(a) or 408(b), or is
28 6 a qualified defined contribution plan described in federal
28 7 Internal Revenue Code section 401(a) or 403(a), and such plan
28 8 agrees to separately account for the after=tax amount so
28 9 transferred.
28 10 (c) A distribution made on behalf of a surviving spouse
28 11 and to an alternate payee, who is a spouse or former spouse,
28 12 under a qualified domestic relations order. Effective January
28 13 1, 2007, after=tax employee contributions to a qualified
28 14 defined benefit plan described in federal Internal Revenue
28 15 Code section 401(a) or 403(a), or a tax=sheltered annuity plan
28 16 described in federal Internal Revenue Code section 403(b), and
28 17 such plan agrees to separately account for the after=tax
28 18 amount so transferred.
28 19 (2) An eligible rollover distribution does not include any
28 20 of the following:
28 21 (a) A distribution that is one of a series of
28 22 substantially equal periodic payments, which occur annually or
28 23 more frequently, made for the life or life expectancy of the
28 24 distributee or the joint lives or joint life expectancies of
28 25 the distributee and the distributee's designated beneficiary,
28 26 or made for a specified period of ten years or more.
28 27 (b) A distribution to the extent that the distribution is
28 28 required pursuant to section 401(a)(9) of the federal Internal
28 29 Revenue Code.
28 30 (c) Prior to January 1, 2002, the portion of any
28 31 distribution that is not includible in the gross income of the
28 32 distributee, determined without regard to the exclusion for
28 33 net unrealized appreciation with respect to employer
28 34 securities.
28 35 2. Effective January 1, 1993, a member or a member's
29 1 surviving spouse An eligible person may elect, at the time and
29 2 in the manner prescribed in rules adopted by the system and in
29 3 rules of the receiving retirement plan, to have the system pay
29 4 all or a portion of an eligible rollover distribution directly
29 5 to an eligible retirement plan, specified by the member or the
29 6 member's surviving spouse, in a direct rollover. However,
29 7 effective January 1, 2007, if the eligible person is a
29 8 nonspouse beneficiary as described in subsection 1, paragraph
29 9 "b", subparagraph (4), the nonspouse beneficiary may only have
29 10 a direct rollover of the distribution to an individual
29 11 retirement account or annuity as described in subsection 1,
29 12 paragraph "c", subparagraphs (1), (2), and (5), established
29 13 for the purpose of receiving the distribution on behalf of the
29 14 nonspouse beneficiary, and such individual retirement account
29 15 or annuity will be treated as an inherited individual
29 16 retirement account or annuity pursuant to section 829 of the
29 17 federal Pension Protection Act of 2006.
29 18 Sec. 40. Section 97B.65, Code 2007, is amended to read as
29 19 follows:
29 20 97B.65 REVISION RIGHTS RESERVED == LIMITATION ON INCREASE
29 21 OF BENEFITS == RATES OF CONTRIBUTION.
29 22 1. The right is reserved to the general assembly to alter,
29 23 amend, or repeal any provision of this chapter or any
29 24 application thereof to any person, provided, however, that to
29 25 the extent of the funds in the retirement system the amount of
29 26 benefits which at the time of any such alteration, amendment,
29 27 or repeal shall have accrued to any member of the retirement
29 28 system shall not be repudiated, provided further, however,
29 29 that the amount of benefits accrued on account of prior
29 30 service shall be adjusted to the extent of any unfunded
29 31 accrued liability then outstanding.
29 32 2. An increase in the benefits or retirement allowances
29 33 provided under this chapter shall not be enacted until after
29 34 the system's actuary determines that the system is fully
29 35 funded and will continue to be fully funded immediately
30 1 following enactment of the increase and the increase can be
30 2 absorbed within the contribution rates otherwise established
30 3 for the membership group authorized to receive the increase.
30 4 However, an increase in the benefits or retirement allowances
30 5 provided under this chapter may be enacted if the statutory
30 6 change providing for the increase is accompanied by a change
30 7 in the employer and employee contribution rates an adjustment
30 8 in the required contribution rate of the membership group
30 9 affected that is necessary to support such increase as
30 10 determined by the system's actuary.
30 11 Sec. 41. Section 97B.80C, subsection 1, paragraph a, Code
30 12 2007, is amended to read as follows:
30 13 a. "Nonqualified service" means service that is not
30 14 qualified service and includes, but is not limited to, any of
30 15 the following:
30 16 (1) Full=time volunteer public service in the federal
30 17 peace corps program. Service that is not qualified service.
30 18 (2) Public employment comparable to employment covered
30 19 under this chapter in a qualified Canadian governmental entity
30 20 that is an elementary school, secondary school, college, or
30 21 university that is organized, administered, and primarily
30 22 supported by the provincial, territorial, or federal
30 23 governments of Canada, or any combination of the same. Any
30 24 period of time for which there was no performance of services.
30 25 (3) Service as described in subsection 1, paragraph "c",
30 26 subparagraph (2).
30 27 Sec. 42. Section 97B.80C, subsection 2, Code 2007, is
30 28 amended to read as follows:
30 29 2. a. A vested or retired member may make contributions
30 30 to the retirement system to purchase up to the maximum amount
30 31 of permissive service credit for qualified service as
30 32 determined by the system, pursuant to Internal Revenue Code
30 33 section 415(n), and the requirements of this section, and the
30 34 system's administrative rules.
30 35 b. A vested or retired member of the retirement system who
31 1 has five or more full calendar years of covered wages may make
31 2 contributions to the retirement system to purchase up to five
31 3 years a maximum of twenty quarters of permissive service
31 4 credit for nonqualified service as determined by the system,
31 5 pursuant to Internal Revenue Code section 415(n), and the
31 6 requirements of this section, and the system's administrative
31 7 rules. A vested or retired member must have at least twenty
31 8 quarters of covered wages in order to purchase permissive
31 9 service credit for nonqualified service.
31 10 c. A vested or retired member may convert regular member
31 11 service credit to special service credit by payment of the
31 12 amount actuarially determined as necessary to fund the
31 13 resulting increase in the member's accrued benefit. The
31 14 conversion shall be treated as a purchase of qualified service
31 15 credit subject to the requirements of paragraph "a" if the
31 16 service credit to be converted was or would have been for
31 17 qualified service. The conversion shall be treated as a
31 18 purchase of nonqualified service credit subject to the
31 19 requirements of paragraph "b" if the service credit to be
31 20 converted was purchased as nonqualified service credit.
31 21 Sec. 43. Section 97B.80C, subsection 3, Code 2007, is
31 22 amended by adding the following new paragraph:
31 23 NEW PARAGRAPH. cc. For a member making contributions for
31 24 a purchase of permissive service credit for qualified service
31 25 as described in subsection 1, paragraph "c", subparagraph (1),
31 26 subparagraph subdivision (h), in which, prior to July 1, 1998,
31 27 the member received a refund of the member's accumulated
31 28 contributions and subsequently returned to covered employment
31 29 as a full=time employee for whom coverage under this chapter
31 30 was mandatory the member shall receive a credit against the
31 31 actuarial cost of the service purchase equal to the amount of
31 32 the member's employer's accumulated contributions which were
31 33 not paid to the member as a refund pursuant to section 97B.53
31 34 plus interest as calculated pursuant to section 97B.70.
31 35 Sec. 44. Section 97B.82, subsection 2, paragraph b,
32 1 subparagraph (2), subparagraph subdivision (c), Code 2007, is
32 2 amended to read as follows:
32 3 (c) The For rollover service purchases prior to January 1,
32 4 2007, the portion of any distribution that is not includible
32 5 in the gross income of the distributee, determined without
32 6 regard to the exclusion for net unrealized appreciation with
32 7 respect to employer securities.
32 8 For rollover service purchases on or after January 1, 2007,
32 9 the portion of any distribution that is not includible in the
32 10 gross income of the distributee, determined without regard to
32 11 the exclusion for net unrealized appreciation with respect to
32 12 employer securities, shall be treated as an eligible rollover
32 13 distribution only when such portion is received from a
32 14 qualified plan under section 401(a) or 403(a) of the federal
32 15 Internal Revenue Code.
32 16 Sec. 45. Section 97B.82, subsection 3, Code 2007, is
32 17 amended to read as follows:
32 18 3. A member may purchase any service credit as authorized
32 19 by this section, to the extent permitted by the internal
32 20 revenue service, by means of a direct transfer, excluding of
32 21 pretax amounts, and effective January 1, 2007, any after=tax
32 22 contributions, from an annuity contract qualified under
32 23 federal Internal Revenue Code section 403(b), or an eligible
32 24 plan described in federal Internal Revenue Code section
32 25 457(b), maintained by a state, political subdivision of a
32 26 state, or any agency or instrumentality of a state or
32 27 political subdivision of a state. A direct transfer is a
32 28 trustee=to=trustee transfer to the retirement system of
32 29 contributions made to annuity contracts qualified under
32 30 federal Internal Revenue Code section 403(b) and eligible
32 31 governmental plans qualified under federal Internal Revenue
32 32 Code section 457(b) for purposes of purchasing service credit
32 33 in the retirement system.
32 34 Sec. 46. Section 97B.73B, Code 2007, is repealed.
32 35 Sec. 47. TRANSITION PROVISION == REQUIRED CONTRIBUTION
33 1 RATE FOR FISCAL YEAR 2010=2011. For purposes of establishing
33 2 the required contribution rate for the fiscal year beginning
33 3 July 1, 2011, as provided in section 97B.11, as amended in
33 4 this Act, the required contribution rate for the fiscal year
33 5 beginning July 1, 2010, shall be, for members in regular
33 6 service, members described in section 97B.49B, and members
33 7 described in section 97B.49C, the total contribution
33 8 percentage rate paid by members and employers of that
33 9 membership group for the fiscal year beginning July 1, 2010.
33 10 Sec. 48. IMPLEMENTATION PROVISION. Notwithstanding any
33 11 provision of section 97B.65 to the contrary, the provisions of
33 12 this division of this Act shall be enacted and implemented by
33 13 the Iowa public employees' retirement system upon the
33 14 effective dates provided for the provisions of this division
33 15 of this Act.
33 16 Sec. 49. EFFECTIVE DATES == RETROACTIVE APPLICABILITY.
33 17 1. The sections of this Act amending section 97B.49B,
33 18 subsection 3, section 97B.49C, subsection 3, section 97B.50A,
33 19 subsection 12, and section 97B.65 take effect July 1, 2011.
33 20 2. The section of this Act amending section 97B.53B, being
33 21 deemed of immediate importance, takes effect upon enactment,
33 22 and, except as otherwise stated, is retroactively applicable
33 23 to January 1, 2007, and is applicable on and after that date.
33 24 3. The sections of this Act amending section 97B.82, being
33 25 deemed of immediate importance, take effect upon enactment,
33 26 and are retroactively applicable to January 1, 2007, and are
33 27 applicable on and after that date.
33 28 4. The section of this Act enacting section 97B.80C,
33 29 subsection 3, paragraph cc, takes effect January 1, 2009.
33 30 DIVISION III
33 31 STATEWIDE FIRE AND POLICE RETIREMENT SYSTEM
33 32 Sec. 50. Section 411.5, subsections 10 and 11, Code 2007,
33 33 are amended to read as follows:
33 34 10. ACTUARIAL INVESTIGATION == TABLES == RATES. At least
33 35 once in each five=year period, the actuary shall make an
34 1 actuarial investigation into the mortality, service, and
34 2 compensation experience of the members and beneficiaries of
34 3 the retirement system, and the interest and other earnings on
34 4 the moneys and other assets of the retirement system, and
34 5 shall make a valuation of the assets and liabilities of the
34 6 fire and police retirement fund, and on the basis of the
34 7 results of the investigation and valuation, the system shall
34 8 do all of the following:
34 9 a. Adopt adopt for the retirement system such actuarial
34 10 methods and assumptions, interest rate, and mortality and
34 11 other tables as are deemed necessary to conduct the annual
34 12 actuarial valuation of the system.
34 13 b. Certify the rates of contribution payable by the cities
34 14 in accordance with section 411.8.
34 15 c. Certify the rates of contributions payable by the
34 16 members in accordance with section 411.8.
34 17 11. ANNUAL ACTUARIAL VALUATION.
34 18 a. On the basis of the actuarial methods and assumptions,
34 19 rate of interest and tables adopted, the actuary shall make an
34 20 annual valuation of the assets and liabilities of the fire and
34 21 police retirement fund created by this chapter. As a result
34 22 of the annual actuarial valuation, the system shall do all of
34 23 the following:
34 24 (1) Certify the rates of contribution payable by the
34 25 cities in accordance with section 411.8.
34 26 (2) Certify the rates of contributions payable by the
34 27 members in accordance with section 411.8.
34 28 b. Effective with the fiscal year beginning July 1, 2008,
34 29 the annual actuarial valuation required to be conducted shall
34 30 include information as required by section 97D.5.
34 31 Sec. 51. Section 411.8, subsection 1, paragraph b, Code
34 32 2007, is amended to read as follows:
34 33 b. On the basis of the actuarial methods and assumptions,
34 34 rate of interest, and of the mortality, interest and other
34 35 tables adopted by the system, the actuary engaged by the
35 1 system to make each valuation required by this chapter
35 2 pursuant to the requirements of section 411.5, shall
35 3 immediately after making such valuation, determine the "normal
35 4 contribution rate". Except as otherwise provided in this
35 5 lettered paragraph, the normal contribution rate shall be the
35 6 rate percent of the earnable compensation of all members
35 7 obtained by deducting from the total liabilities of the fund
35 8 the amount of the funds in hand to the credit of the fund and
35 9 dividing the remainder by one percent of the present value of
35 10 the prospective future compensation of all members as computed
35 11 on the basis of the rate of interest and of mortality and
35 12 service tables adopted, all equal to the rate required by the
35 13 system to discharge its liabilities, stated as a percentage of
35 14 the earnable compensation of all members, and reduced by the
35 15 employee contribution made pursuant to rate provided in
35 16 paragraph "f" of this subsection and the contribution rate
35 17 representing the state appropriation made as provided in
35 18 section 411.20. However, the normal rate of contribution
35 19 shall not be less than seventeen percent.
35 20 Beginning July 1, 1996, and each fiscal year thereafter,
35 21 the normal contribution rate shall be the rate percent of the
35 22 earnable compensation of all members obtained by deducting
35 23 from the total liabilities of the fund the amount of the funds
35 24 in hand to the credit of the fund and dividing the remainder
35 25 by one percent of the present value of the prospective future
35 26 compensation of all members as computed on the basis of the
35 27 rate of interest and of mortality and service tables adopted,
35 28 multiplied by six=tenths, or seventeen percent, whichever is
35 29 greater.
35 30 The normal rate of contribution shall be determined by the
35 31 actuary after each valuation.
35 32 Sec. 52. NEW SECTION. 411.10 PURCHASE OF SERVICE CREDIT
35 33 FOR MILITARY SERVICE.
35 34 1. An active member of the system who has been a member of
35 35 the retirement system five or more years may elect to purchase
36 1 up to five years of service credit for military service, other
36 2 than military service required to be recognized under Internal
36 3 Revenue Code section 414(u) or under the federal Uniformed
36 4 Services Employment and Reemployment Rights Act, that will be
36 5 recognized by the retirement system for purposes of
36 6 calculating a member's benefit, pursuant to Internal Revenue
36 7 Code section 415(n) and the requirements of this section.
36 8 2. a. A member seeking to purchase service credit
36 9 pursuant to this section shall file a written application with
36 10 the system requesting an actuarial determination of the cost
36 11 of a purchase of service credit. Upon receipt of the cost
36 12 estimate for the purchase of service from the system, the
36 13 member may make contributions to the system in an amount equal
36 14 to the actuarial cost of the service credit purchase.
36 15 b. For purposes of this subsection, the actuarial cost of
36 16 the service credit purchase is an amount determined by the
36 17 system in accordance with actuarial tables, as reported to the
36 18 system by the system's actuary, which reflects the actuarial
36 19 cost necessary to fund an increased retirement allowance
36 20 resulting from the purchase of service credit.
36 21 3. The system shall ensure that the member, in exercising
36 22 an option provided in this section, does not exceed the amount
36 23 of annual additions to a member's account permitted pursuant
36 24 to section 415 of the federal Internal Revenue Code.
36 25 4. The board of trustees shall adopt rules providing for
36 26 the implementation and administration of this section.
36 27 Sec. 53 Section 411.15, Code 2007, is amended to read as
36 28 follows:
36 29 411.15 HOSPITALIZATION AND MEDICAL ATTENTION.
36 30 Cities shall provide hospital, nursing, and medical
36 31 attention for the members of the police and fire departments
36 32 of the cities, when injured while in the performance of their
36 33 duties as members of such department, and shall continue to
36 34 provide hospital, nursing, and medical attention for injuries
36 35 or diseases incurred while in the performance of their duties
37 1 for members receiving a retirement allowance under section
37 2 411.6, subsection 6. Cities may provide fund the cost of the
37 3 hospital, nursing, and medical attention required by this
37 4 section through the purchase of insurance, by self=insuring
37 5 the obligation, or through payment of moneys into a local
37 6 government risk pool established for the purpose of covering
37 7 the costs associated with the requirements of this section.
37 8 However, the cost of the hospital, nursing, and medical
37 9 attention required by this section shall not be funded through
37 10 an employee=paid health insurance policy. The cost of
37 11 providing the hospital, nursing, and medical attention
37 12 required by this section shall be paid from moneys held in a
37 13 trust and agency fund established pursuant to section 384.6,
37 14 or out of the appropriation for the department to which the
37 15 injured person belongs or belonged; provided that any amounts
37 16 received by the injured person under the workers' compensation
37 17 law of the state, or from any other source for such specific
37 18 purposes, shall be deducted from the amount paid by the city
37 19 under the provisions of this section.
37 20 DIVISION IV
37 21 JUDICIAL RETIREMENT SYSTEM
37 22 Sec. 54. Section 602.9104, subsection 1, paragraph b, Code
37 23 2007, is amended to read as follows:
37 24 b. The state shall contribute annually to the judicial
37 25 retirement fund an amount equal to the state's required
37 26 contribution for all judges covered under this article. The
37 27 state's required contribution shall be appropriated directly
37 28 to the judicial retirement fund by the general assembly.
37 29 Sec. 55. Section 602.9104, subsection 4, paragraphs b, c,
37 30 d, and e, Code 2007, are amended to read as follows:
37 31 b. "Fully funded status" means that the most recent
37 32 actuarial valuation reflects that, using the projected unit
37 33 credit method in accordance with generally recognized and
37 34 accepted actuarial principles and practices set forth by the
37 35 American academy of actuaries, the funded status of the system
38 1 is at least ninety one hundred percent, based upon the
38 2 benefits provided for judges through the judicial retirement
38 3 system as of July 1, 2006.
38 4 c. "Judge's required contribution" means an amount equal
38 5 to the basic salary of the judge multiplied by the following
38 6 applicable percentage:
38 7 (1) For the fiscal year beginning July 1, 2008, and ending
38 8 June 30, 2009, seven and seven=tenths percent.
38 9 (2) For the fiscal year beginning July 1, 2009, and ending
38 10 June 30, 2010, eight and seven=tenths percent.
38 11 (1) (3) For the fiscal year beginning July 1, 2006 2010,
38 12 and for each subsequent fiscal year until the system attains
38 13 fully funded status, six percent multiplied by a fraction
38 14 equal to the actual percentage rate contributed by the state
38 15 for that fiscal year divided by twenty=three and seven=tenths
38 16 percent nine and thirty=five hundredths percent.
38 17 (2) (4) Commencing with the first fiscal year in which
38 18 the system attains fully funded status, and for each
38 19 subsequent fiscal year, the percentage rate equal to fifty
38 20 forty percent of the required contribution rate.
38 21 d. "Required contribution rate" means that percentage of
38 22 the basic salary of all judges covered under this article
38 23 which the actuary of the system determines is necessary, using
38 24 the projected unit credit method in accordance with generally
38 25 recognized and accepted actuarial principles and practices set
38 26 forth by the American academy of actuaries, to amortize the
38 27 unfunded actuarial liability of the judicial retirement system
38 28 within twenty years equal to the actuarially required
38 29 contribution rate determined by the actuary pursuant to
38 30 section 602.9116.
38 31 e. "State's required contribution" means an amount equal
38 32 to the basic salary of all judges covered under this article
38 33 multiplied by the following applicable percentage:
38 34 (1) For the fiscal year beginning July 1, 2006 2008, and
38 35 for each subsequent fiscal year until the system attains fully
39 1 funded status, twenty=three and seven=tenths thirty and
39 2 six=tenths percent.
39 3 (2) Commencing with the first fiscal year in which the
39 4 system attains fully funded status, and for each subsequent
39 5 fiscal year, the percentage rate equal to fifty sixty percent
39 6 of the required contribution rate.
39 7 Sec. 56. Section 602.9116, subsection 1, Code Supplement
39 8 2007, is amended to read as follows:
39 9 1. The court administrator shall cause an actuarial
39 10 valuation to be made of the assets and liabilities of the
39 11 judicial retirement fund at least once every four years
39 12 commencing with the fiscal year beginning July 1, 1981. For
39 13 each fiscal year in which an actuarial valuation is not
39 14 conducted, the court administrator shall cause an annual
39 15 actuarial update to be prepared for the purpose of determining
39 16 the adequacy of the contribution rates specified in section
39 17 602.9104. The court administrator shall adopt actuarial
39 18 methods and assumptions, mortality tables, and other necessary
39 19 factors for use in the actuarial calculations required for the
39 20 valuation upon the recommendation of the actuary. In
39 21 addition, effective with the fiscal year beginning July 1,
39 22 2008, the actuarial valuation or actuarial update required to
39 23 be conducted shall include information as required by section
39 24 97D.5. Following the actuarial valuation or annual actuarial
39 25 update, the court administrator shall determine the condition
39 26 of the system, determine the actuarially required contribution
39 27 rate for each fiscal year which is the rate required by the
39 28 system to discharge its liabilities, stated as a percentage of
39 29 the basic salary of all judges covered under this article, and
39 30 shall report any findings and recommendations to the general
39 31 assembly.
39 32 DIVISION V
39 33 MISCELLANEOUS PROVISIONS
39 34 Sec. 57. Section 8A.438, Code 2007, is amended by striking
39 35 the section and inserting in lieu thereof the following:
40 1 8A.438 TAX=SHELTERED INVESTMENT CONTRACTS.
40 2 1. The director may establish a tax=sheltered investment
40 3 program for eligible employees. The director may arrange for
40 4 the provision of investment vehicles authorized under section
40 5 403(b) of the Internal Revenue Code, as defined in section
40 6 422.3. The department may offer the tax=sheltered investment
40 7 program to eligible public employers in the state of Iowa.
40 8 2. a. A special, separate tax=sheltered investment
40 9 revolving trust fund is created in the state treasury under
40 10 the control of the department. The fund shall consist of all
40 11 moneys deposited in the fund pursuant to this section, any
40 12 funds received from other entities in the state of Iowa, and
40 13 interest and earnings thereon. The director is the trustee of
40 14 the fund and shall administer the fund. Any loss to the fund
40 15 shall be charged against the fund and the director shall not
40 16 be personally liable for such loss.
40 17 b. Moneys in the fund are not subject to section 8.33.
40 18 Notwithstanding section 12C.7, subsection 2, interest or
40 19 earnings on moneys in the fund shall be credited to the fund.
40 20 Sec. 58. Section 55.1, unnumbered paragraph 1, Code 2007,
40 21 is amended to read as follows:
40 22 A person who is elected to a municipal, county, state, or
40 23 federal office shall, upon written application to the employer
40 24 of that person, be granted a leave of absence from regular
40 25 employment to serve in that office except where prohibited by
40 26 the federal law. The leave of absence may be granted without
40 27 pay and, except that if a salaried employee takes leave
40 28 without pay from regular employment for a portion of a pay
40 29 period, the employee's salaried compensation for that pay
40 30 period shall be reduced by the ratio of the number of days of
40 31 leave taken to the total number of days in the pay period.
40 32 The leave of absence shall be granted without loss of net
40 33 credited service and benefits earned. This section shall not
40 34 be construed to require an employer to pay pension, health or
40 35 other benefits during the leave of absence to an employee
41 1 taking a leave of absence under this section.
41 2 Sec. 59. Section 55.1, unnumbered paragraph 3, Code 2007,
41 3 is amended to read as follows:
41 4 An employee shall not be prohibited from returning to
41 5 regular employment before the period expires for which the
41 6 leave of absence was granted. This section applies only to
41 7 employers which employ twenty or more full=time persons. The
41 8 leave of absence granted by this section need not exceed six
41 9 years. The leave of absence granted by this section does not
41 10 apply to an elective office held by the employee prior to the
41 11 election.
41 12 Sec. 60. Section 97C.21, Code 2007, is amended to read as
41 13 follows:
41 14 97C.21 VOLUNTARY COVERAGE OF ELECTED OFFICIALS.
41 15 Notwithstanding any provision of this chapter to the
41 16 contrary, an employer of elected officials otherwise excluded
41 17 from the definition of employee as provided in section 97C.2,
41 18 may, but is not required to, choose to provide benefits to
41 19 those elected officials as employees as provided by this
41 20 chapter. Alternatively, the governor may authorize a
41 21 statewide referendum of the appointed and elected officials of
41 22 the state and its political subdivisions on the question of
41 23 whether to include in or exclude from the definition of
41 24 employee all such positions. This choice shall be reflected
41 25 in the federal=state agreement described in section 97C.3,
41 26 and, if necessary, in this chapter. An employer who is
41 27 providing benefits to elected officials otherwise excluded
41 28 from the definition of employee prior to July 1, 2002, shall
41 29 not be deemed to be in an erroneous reporting situation, and
41 30 corrections for prior federal social security withholdings
41 31 shall not be required. The implementation of this section
41 32 shall be subject to the approval of the federal social
41 33 security administration.
41 34 Sec. 61. Section 97D.2, Code 2007, is amended to read as
41 35 follows:
42 1 97D.2 ANALYSIS OF COST OF PROPOSED CHANGES.
42 2 When the public retirement systems committee established by
42 3 section 97D.4 or a standing committee of the senate or house
42 4 of representatives recommends a proposal for a change in a
42 5 public retirement system within this state, the committee
42 6 shall require the development of actuarial information
42 7 concerning the costs of the proposed change. If the proposal
42 8 affects police and fire retirement under chapter 411, the
42 9 committee shall arrange for the services of an actuarial
42 10 consultant or request actuarial information from the statewide
42 11 fire and police retirement system created in chapter 411 to
42 12 assist in developing the information. Actuarial information
42 13 developed as provided under this section concerning the cost
42 14 of a proposed change shall include information on the effect
42 15 of the proposed change on the normal cost rate for that public
42 16 retirement system using the entry age normal actuarial cost
42 17 method.
42 18 Sec. 62. NEW SECTION. 97D.5 PUBLIC RETIREMENT SYSTEMS ==
42 19 ANNUAL ACTUARIAL VALUATIONS == REQUIRED INFORMATION.
42 20 1. For purposes of this section, "public retirement
42 21 system" means the public safety peace officers' retirement
42 22 system created in chapter 97A, the Iowa public employees'
42 23 retirement system created in chapter 97B, the statewide fire
42 24 and police retirement system created in chapter 411, or the
42 25 judicial retirement system created in chapter 602.
42 26 2. Effective with the fiscal year beginning July 1, 2008,
42 27 a public retirement system shall include in each actuarial
42 28 valuation or actuarial update required to be conducted by that
42 29 public retirement system the following additional information,
42 30 all as determined by using the entry age normal actuarial cost
42 31 method:
42 32 a. The actuarially required contribution rate for the
42 33 public retirement system which is equal to the normal cost
42 34 rate plus the contribution rate necessary to amortize the
42 35 unfunded actuarial accrued liability on a level percent of
43 1 payroll basis over thirty years.
43 2 b. The normal cost rate for the public retirement system
43 3 which shall be determined for each individual member on a
43 4 level percentage of salary basis and then summed for all
43 5 members to obtain the total normal cost.
43 6 Sec. 63. Section 260C.14, subsection 9, Code 2007, is
43 7 amended by striking the subsection and inserting in lieu
43 8 thereof the following:
43 9 9. a. The board may establish a plan, in accordance with
43 10 section 403(b) of the Internal Revenue Code, as defined in
43 11 section 422.3, for employees, which plan shall consist of one
43 12 or more investment contracts, on a group or individual basis,
43 13 acquired from a company, or a salesperson for that company,
43 14 that is authorized to do business in this state.
43 15 b. The selection of investment contracts to be included
43 16 within the plan established by the board shall be made either
43 17 pursuant to a competitive bidding process conducted by the
43 18 board, in coordination with employee organizations
43 19 representing employees eligible to participate in the plan, or
43 20 pursuant to an agreement with the department of administrative
43 21 services to make available investment contracts included in a
43 22 deferred compensation or similar plan established by the
43 23 department pursuant to section 8A.438, which plan meets the
43 24 requirements of this subsection. The determination of whether
43 25 to select investment contracts for the plan pursuant to a
43 26 competitive bidding process or by agreement with the
43 27 department of administrative services shall be made by
43 28 agreement between the board and the employee organizations
43 29 representing employees eligible to participate in the plan.
43 30 c. The board may make elective deferrals in accordance
43 31 with the plan as authorized by an eligible employee for the
43 32 purpose of making contributions to an investment contract in
43 33 the plan on behalf of the employee. The deferrals shall be
43 34 made in the manner which will qualify contributions to the
43 35 investment contract for the benefits under section 403(b) of
44 1 the Internal Revenue Code, as defined in section 422.3. In
44 2 addition, the board may make nonelective employer
44 3 contributions to the plan.
44 4 d. As used in this subsection, unless the context
44 5 otherwise requires, "investment contract" shall mean a
44 6 custodial account utilizing mutual funds or an annuity
44 7 contract which meets the requirements of section 403(b) of the
44 8 Internal Revenue Code, as defined in section 422.3.
44 9 Sec. 64. Section 273.3, subsection 14, Code 2007, is
44 10 amended by striking the subsection and inserting in lieu
44 11 thereof the following:
44 12 14. a. The board may establish a plan, in accordance with
44 13 section 403(b) of the Internal Revenue Code, as defined in
44 14 section 422.3, for employees, which plan shall consist of one
44 15 or more investment contracts, on a group or individual basis,
44 16 acquired from a company, or a salesperson for that company,
44 17 that is authorized to do business in this state.
44 18 b. The selection of investment contracts to be included
44 19 within the plan established by the board shall be made either
44 20 pursuant to a competitive bidding process conducted by the
44 21 board, in coordination with employee organizations
44 22 representing employees eligible to participate in the plan, or
44 23 pursuant to an agreement with the department of administrative
44 24 services to make available investment contracts included in a
44 25 deferred compensation or similar plan established by the
44 26 department pursuant to section 8A.438, which plan meets the
44 27 requirements of this subsection. The determination of whether
44 28 to select investment contracts for the plan pursuant to a
44 29 competitive bidding process or by agreement with the
44 30 department of administrative services shall be made by
44 31 agreement between the board and the employee organizations
44 32 representing employees eligible to participate in the plan.
44 33 c. The board may make elective deferrals in accordance
44 34 with the plan as authorized by an eligible employee for the
44 35 purpose of making contributions to the investment contract on
45 1 behalf of the employee. The deferrals shall be made in the
45 2 manner which will qualify contributions to the investment
45 3 contract for the benefits under section 403(b) of the Internal
45 4 Revenue Code, as defined in section 422.3. In addition, the
45 5 board may make nonelective employer contributions to the plan.
45 6 d. As used in this subsection, unless the context
45 7 otherwise requires, "investment contract" shall mean a
45 8 custodial account utilizing mutual funds or an annuity
45 9 contract which meets the requirements of section 403(b) of the
45 10 Internal Revenue Code, as defined in section 422.3.
45 11 Sec. 65. Section 294.16, Code 2007, is amended by striking
45 12 the section and inserting in lieu thereof the following:
45 13 294.16 INVESTMENT CONTRACTS.
45 14 1. The school district may establish a plan, in accordance
45 15 with section 403(b) of the Internal Revenue Code, as defined
45 16 in section 422.3, for employees, which plan shall consist of
45 17 one or more investment contracts, on a group or individual
45 18 basis, acquired from a company, or a salesperson for that
45 19 company, that is authorized to do business in this state.
45 20 2. The selection of investment contracts to be included
45 21 within the plan established by the school district shall be
45 22 made either pursuant to a competitive bidding process
45 23 conducted by the school district, in coordination with
45 24 employee organizations representing employees eligible to
45 25 participate in the plan, or pursuant to an agreement with the
45 26 department of administrative services to make available
45 27 investment contracts included in a deferred compensation or
45 28 similar plan established by the department pursuant to section
45 29 8A.438, which plan meets the requirements of this section.
45 30 The determination of whether to select investment contracts
45 31 for the plan pursuant to a competitive bidding process or by
45 32 agreement with the department of administrative services shall
45 33 be made by agreement between the school district and the
45 34 employee organizations representing employees eligible to
45 35 participate in the plan.
46 1 3. The school district may make elective deferrals in
46 2 accordance with the plan as authorized by an eligible employee
46 3 for the purpose of making contributions to the investment
46 4 contract on behalf of the employee. The deferrals shall be
46 5 made in the manner which will qualify contributions to the
46 6 investment contract for the benefits under section 403(b) of
46 7 the Internal Revenue Code, as defined in section 422.3. In
46 8 addition, the school district may make nonelective employer
46 9 contributions to the plan.
46 10 4. As used in this section, unless the context otherwise
46 11 requires, "investment contract" shall mean a custodial account
46 12 utilizing mutual funds or an annuity contract which meets the
46 13 requirements of section 403(b) of the Internal Revenue Code,
46 14 as defined in section 422.3.
46 15 Sec. 66. TRANSITION PROVISIONS == INTERNAL REVENUE CODE
46 16 SECTION 403(b) PLANS. Notwithstanding any provision of law to
46 17 the contrary, the investment contracts to be included within a
46 18 plan established pursuant to section 260C.14, subsection 9,
46 19 section 273.3, subsection 14, or section 294.16, for the
46 20 period beginning January 1, 2009, and ending December 31,
46 21 2009, shall be investment contracts selected by the department
46 22 of administrative services from among the investment contracts
46 23 included in a deferred compensation or similar plan
46 24 established by the department of administrative services,
46 25 which plan meets the requirements of section 403(b) of the
46 26 Internal Revenue Code, as defined in section 422.3, or shall
46 27 be from no more than five companies authorized to issue
46 28 investment contracts as selected by the applicable employer
46 29 and from no more than three companies authorized to issue
46 30 investment contracts as selected by, and in the sole
46 31 discretion of, the employee organizations representing the
46 32 applicable employer's employees. Selection of companies and
46 33 investment contracts for a plan shall be made in the best
46 34 interests of employees eligible to participate in the plan.
46 35 The determination of whether to select investment contracts
47 1 for the plan for the period beginning January 1, 2009, and
47 2 ending December 31, 2009, that are included in a deferred
47 3 compensation or similar plan established by the department of
47 4 administrative services or that are selected by the applicable
47 5 employer and the employee organizations representing the
47 6 applicable employer's employees, shall be made by an agreement
47 7 entered into by August 15, 2008, between the applicable
47 8 employer and the employee organizations representing the
47 9 applicable employer's employees eligible to participate in the
47 10 plan. Applicable employers shall have the authority to take
47 11 such action as deemed necessary to establish, effective
47 12 January 1, 2009, an eligible plan pursuant to section 260C.14,
47 13 subsection 9, section 273.3, subsection 14, or section 294.16.
47 14 Sec. 67. DEPARTMENT OF ADMINISTRATIVE SERVICES ==
47 15 SELECTION OF INVESTMENT CONTRACT PROVIDERS FOR INTERNAL
47 16 REVENUE CODE SECTION 403(b) PLANS.
47 17 1. The department of administrative services shall
47 18 establish, by January 1, 2010, a plan, as authorized pursuant
47 19 to section 8A.438 and in accordance with section 403(b) of the
47 20 Internal Revenue Code, as defined in section 422.3, for
47 21 employees, which plan shall consist of one or more investment
47 22 contracts, on a group or individual basis, acquired from a
47 23 company, or a salesperson for that company, that is authorized
47 24 to do business in this state, that is eligible to be utilized
47 25 as a vendor of investment contracts for plans established
47 26 pursuant to section 260C.14, subsection 9, section 273.3,
47 27 subsection 14, or section 294.16.
47 28 2. The department of administrative services shall
47 29 determine which vendors will be authorized to participate
47 30 under the tax=sheltered investment program established by the
47 31 department pursuant to section 8A.438. Employee organizations
47 32 representing employees and employers participating in the
47 33 programs authorized under sections 8A.433 and 8A.438 shall be
47 34 allowed to assist the department in this decision, specific
47 35 only to the initial competitive bid process that will
48 1 determine the vendors that will be in the program as of
48 2 January 1, 2010.
48 3 3. As used in this section, unless the context otherwise
48 4 requires, "investment contract" shall mean a custodial account
48 5 utilizing mutual funds or an annuity contract which meets the
48 6 requirements of section 403(b) of the Internal Revenue Code,
48 7 as defined in section 422.3.
48 8 Sec. 68. EFFECTIVE DATE.
48 9 1. The sections of this division of this Act amending
48 10 section 260C.14, subsection 9, section 273.3, subsection 14,
48 11 and section 294.16, take effect January 1, 2009.
48 12 2. The section of this division of this Act, enacting
48 13 transition provisions relating to plans required to meet
48 14 requirements for Internal Revenue Code section 403(b) plans,
48 15 being deemed of immediate importance, takes effect upon
48 16 enactment.
48 17 SF 2424
48 18 ec/ml/12
Text: SF2423
Text: SF2425
Complete Bill History