Bill Text: IA HSB576 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill concerning the Iowa public employees' retirement system and including effective date and retroactive applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2014-01-28 - In State Government [HSB576 Detail]
Download: Iowa-2013-HSB576-Introduced.html
House
Study
Bill
576
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
IOWA
PUBLIC
EMPLOYEES’
RETIREMENT
SYSTEM
BILL)
A
BILL
FOR
An
Act
concerning
the
Iowa
public
employees’
retirement
system
1
and
including
effective
date
and
retroactive
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5224DP
(6)
85
ec/sc
S.F.
_____
H.F.
_____
Section
1.
Section
97B.1A,
subsection
5,
Code
2014,
is
1
amended
to
read
as
follows:
2
5.
“Beneficiary”
means
the
person
or
persons
who
are
3
entitled
to
receive
any
benefits
payable
under
this
chapter
4
at
the
death
of
a
member,
if
the
person
or
persons
have
been
5
designated
on
a
form
provided
by
the
system
and
filed
with
the
6
system
or
designated
pursuant
to
a
qualified
domestic
relations
7
order
on
file
with
the
system
.
If
no
such
designation
is
in
8
effect
at
the
time
of
death
of
the
member
or
if
no
person
so
9
designated
is
living
at
that
time,
then
the
beneficiary
is
the
10
estate
of
the
member.
11
Sec.
2.
Section
97B.1A,
subsection
8,
paragraph
b,
12
subparagraph
(7),
Code
2014,
is
amended
to
read
as
follows:
13
(7)
Employees
of
an
area
agency
on
aging
,
if
as
of
July
14
1,
1994,
the
agency
provides
for
participation
by
all
of
its
15
employees
who
were
participating
in
an
alternative
qualified
16
plan
pursuant
to
the
requirements
of
the
federal
Internal
17
Revenue
Code
on
June
30,
2012,
and
who
by
September
1,
2013,
18
filed
with
the
system
a
valid
decision
to
elect
out
of
coverage
19
under
this
chapter
.
20
Sec.
3.
Section
97B.1A,
subsection
14A,
Code
2014,
is
21
amended
to
read
as
follows:
22
14A.
“Member
account”
means
the
account
established
for
each
23
member
and
includes
the
member’s
accumulated
contributions
and
24
the
member’s
share
of
the
accumulated
employer
contributions
as
25
provided
in
section
97B.53
.
“Member
account”
does
not
mean
the
26
supplemental
account
for
active
members.
27
Sec.
4.
Section
97B.1A,
subsection
22A,
Code
2014,
is
28
amended
by
striking
the
subsection.
29
Sec.
5.
Section
97B.7A,
subsection
5,
Code
2014,
is
amended
30
to
read
as
follows:
31
5.
Travel.
In
the
administration
of
the
investment
of
32
moneys
in
the
retirement
fund,
employees
of
the
system
and
33
members
of
the
board
may
travel
outside
the
state
for
the
34
purpose
of
meeting
with
investment
firms
and
consultants
and
35
-1-
LSB
5224DP
(6)
85
ec/sc
1/
10
S.F.
_____
H.F.
_____
attending
conferences
and
meetings
to
fulfill
their
fiduciary
1
responsibilities.
This
travel
is
not
subject
to
section
2
8A.512,
subsection
2
.
3
Sec.
6.
Section
97B.40,
subsection
2,
Code
2014,
is
amended
4
to
read
as
follows:
5
2.
If
the
system
determines
that
a
person
may
have
engaged
6
in
a
fraudulent
practice
as
described
under
this
section
,
the
7
system
may,
in
addition
to
any
statutory
or
equitable
remedies
8
provided
by
law,
refuse
to
approve
an
application
for
benefits,
9
suspend
or
reduce
benefits
to
the
person,
and
refer
the
matter
10
to
the
auditor
of
state
and
to
the
appropriate
law
enforcement
11
authorities
for
possible
investigation
and
prosecution.
12
Sec.
7.
Section
97B.44,
Code
2014,
is
amended
to
read
as
13
follows:
14
97B.44
Beneficiary.
15
1.
Each
member
shall
designate
,
on
a
form
to
be
furnished
16
by
the
system
or
through
a
qualified
domestic
relations
order
17
on
file
with
the
system,
designate
a
beneficiary
for
death
18
benefits
payable
under
this
chapter
on
the
death
of
the
member.
19
The
designation
may
be
changed
from
time
to
time
by
the
member
20
by
filing
a
new
designation
with
the
system.
A
designation
21
or
change
in
designation
made
by
a
member
on
or
after
July
22
1,
2000,
shall
contain
the
written
consent
of
the
member’s
23
spouse,
if
applicable.
The
designation
of
a
beneficiary
is
not
24
applicable
if
the
member
receives
a
refund
of
all
contributions
25
of
the
member.
If
a
member
who
has
received
a
refund
of
26
contributions
returns
to
employment,
the
member
shall
file
a
27
new
designation
with
the
system.
28
2.
If
a
member
has
not
designated
a
beneficiary
on
a
form
29
furnished
by
the
system
as
provided
by
this
section
,
or
if
30
there
are
no
surviving
designated
beneficiaries
of
a
member,
31
death
benefits
payable
under
this
chapter
shall
be
paid
to
the
32
member’s
estate.
33
3.
However,
the
The
system
may
accept
a
married
member’s
34
designation
or
change
in
designation
under
this
section
without
35
-2-
LSB
5224DP
(6)
85
ec/sc
2/
10
S.F.
_____
H.F.
_____
the
written
consent
of
the
member’s
spouse
if
the
member
1
submits
a
notarized
statement
indicating
that
the
member
has
2
been
unable
to
locate
the
member’s
spouse
to
obtain
the
written
3
consent
of
the
spouse
after
reasonable
diligent
efforts.
The
4
member’s
designation
or
change
in
designation
shall
become
5
effective
upon
filing
the
necessary
forms,
including
the
6
notarized
statement,
or
orders,
with
the
system.
The
system
7
shall
not
be
liable
to
the
member,
the
member’s
spouse,
or
8
to
any
other
person
affected
by
the
member’s
designation
or
9
change
of
designation,
based
upon
a
designation
or
change
of
10
designation
accomplished
without
the
written
consent
of
the
11
member’s
spouse.
12
Sec.
8.
Section
97B.46,
subsection
2,
Code
2014,
is
amended
13
to
read
as
follows:
14
2.
A
member
remaining
in
service
after
attaining
the
age
15
of
seventy
years
is
entitled
to
receive
a
retirement
allowance
16
under
sections
97B.49A
through
97B.49H
97B.49G
,
as
applicable,
17
without
terminating
employment.
18
Sec.
9.
Section
97B.48,
subsection
4,
Code
2014,
is
amended
19
to
read
as
follows:
20
4.
Payment
of
a
member’s
retirement
allowance
pursuant
to
21
sections
97B.49A
through
97B.49H
97B.49G
shall
commence
no
22
later
than
the
required
beginning
date
specified
under
section
23
401(a)(9)
of
the
federal
Internal
Revenue
Code
regardless
of
24
whether
the
member
has
submitted
the
appropriate
notice
to
25
receive
an
allowance.
If
the
lump
sum
actuarial
equivalent
26
under
subsection
1
could
have
been
selected
by
the
member,
27
payments
shall
be
made
in
a
lump
sum
rather
than
as
a
monthly
28
allowance.
29
Sec.
10.
Section
97B.49F,
subsection
2,
Code
2014,
is
30
amended
by
striking
the
subsection.
31
Sec.
11.
Section
97B.50A,
subsection
1,
paragraph
b,
Code
32
2014,
is
amended
to
read
as
follows:
33
b.
“Net
disability
retirement
allowance”
means
the
amount
34
determined
by
subtracting
the
amount
paid
during
the
previous
35
-3-
LSB
5224DP
(6)
85
ec/sc
3/
10
S.F.
_____
H.F.
_____
calendar
year
by
the
member
for
health
insurance
or
similar
1
health
care
coverage
for
the
member
and
the
member’s
dependents
2
from
the
amount
of
the
member’s
disability
retirement
3
allowance,
including
any
dividends
and
distributions
from
4
supplemental
accounts,
paid
for
that
year
pursuant
to
this
5
section
.
6
Sec.
12.
Section
97B.50A,
subsection
9,
Code
2014,
is
7
amended
to
read
as
follows:
8
9.
Medical
board.
The
system
shall
designate
a
medical
9
board
to
be
composed
of
three
a
physician
or
physicians
from
10
the
university
of
Iowa
hospitals
and
clinics
who
shall
arrange
11
for
and
pass
upon
the
medical
examinations
required
under
12
this
section
and
shall
report
in
writing
to
the
system
the
13
conclusions
and
recommendations
upon
all
matters
duly
referred
14
to
the
medical
board.
Each
report
of
a
medical
examination
15
under
this
section
shall
include
the
medical
board’s
findings
16
as
to
the
extent
of
the
member’s
physical
or
mental
impairment.
17
Except
as
required
by
this
section
,
each
report
shall
be
18
confidential
and
shall
be
maintained
in
accordance
with
the
19
federal
Americans
With
Disabilities
Act,
and
any
other
state
20
or
federal
law
containing
requirements
for
confidentiality
of
21
medical
records.
22
Sec.
13.
Section
97B.53,
Code
2014,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
11.
A
request
for
a
refund
under
this
25
section
made
by
a
member
who
is
married
requires
the
written
26
acknowledgment
of
the
member’s
spouse.
However,
the
system
27
may
accept
a
married
member’s
request
for
a
refund
under
this
28
section
without
the
written
acknowledgment
of
the
member’s
29
spouse
if
the
member
submits
a
statement
affirming
that
after
30
reasonable
diligent
efforts
the
member
has
been
unable
to
31
locate
the
member’s
spouse
to
obtain
the
written
acknowledgment
32
of
the
spouse.
A
married
member’s
request
for
a
refund
under
33
this
section
shall
become
effective
upon
filing
the
necessary
34
forms,
or
including
the
affirmation
if
applicable,
with
the
35
-4-
LSB
5224DP
(6)
85
ec/sc
4/
10
S.F.
_____
H.F.
_____
system.
The
system
shall
not
be
liable
to
the
member,
the
1
member’s
spouse,
nor
to
any
other
person
affected
by
the
2
member’s
request
for
a
refund
based
upon
a
request
for
a
refund
3
accomplished
without
the
written
acknowledgment
of
the
member’s
4
spouse.
5
Sec.
14.
Section
97B.53A,
Code
2014,
is
amended
to
read
as
6
follows:
7
97B.53A
Duty
of
system.
8
Upon
a
member’s
termination
of
covered
employment
prior
to
9
the
member’s
retirement,
the
system
shall
send
the
member
by
10
first
class
mail,
to
the
member’s
last
known
mailing
address,
11
a
notice
setting
forth
the
balance
and
status
of
the
member’s
12
account
and
supplemental
account
and
an
explanation
of
the
13
courses
of
action
available
to
the
member
under
this
chapter
.
14
Sec.
15.
Section
97B.53B,
subsection
1,
paragraph
d,
15
subparagraph
(1),
subparagraph
division
(a),
Code
2014,
is
16
amended
to
read
as
follows:
17
(a)
All
or
any
portion
of
a
member’s
account
and
18
supplemental
account
.
19
Sec.
16.
Section
97B.70,
subsection
3,
Code
2014,
is
amended
20
to
read
as
follows:
21
3.
Interest
shall
be
credited
to
the
accumulated
22
contributions
and
accumulated
employer
contributions
accounts
,
23
and
supplemental
accounts
of
active
members,
inactive
vested
24
members,
and,
effective
January
1,
1999,
to
inactive
nonvested
25
members,
until
the
quarter
prior
to
the
quarter
in
which
the
26
member’s
first
retirement
allowance
is
paid
or
in
which
the
27
member
is
issued
a
refund
under
section
97B.53
,
or
in
which
a
28
death
benefit
is
issued.
29
Sec.
17.
Section
97B.80,
subsection
1,
Code
2014,
is
amended
30
to
read
as
follows:
31
1.
a.
For
purposes
of
this
subsection,
“eligible
member”
32
means
as
follows:
33
(1)
For
the
period
beginning
July
1,
1992,
and
ending
June
34
30,
2014,
a
vested
or
retired
member
who
has
one
or
more
full
35
-5-
LSB
5224DP
(6)
85
ec/sc
5/
10
S.F.
_____
H.F.
_____
calendar
years
of
covered
wages.
1
(2)
Beginning
on
or
after
July
1,
2014,
a
member
vested
by
2
service
or
a
retired
member
who
is
vested
by
service
and
who
3
is
within
six
months
of
the
retired
member’s
first
month
of
4
entitlement.
5
b.
Effective
July
1,
1992,
a
vested
or
retired
An
eligible
6
member
who
has
one
or
more
full
calendar
years
of
covered
wages
7
and
who
at
any
time
served
on
active
duty
in
the
armed
forces
of
8
the
United
States,
upon
submitting
verification
of
the
dates
9
of
the
active
duty
service,
may
make
contributions
to
the
10
retirement
system
for
all
or
a
portion
of
the
period
of
time
of
11
the
active
duty
service,
in
increments
of
one
or
more
calendar
12
quarters,
and
receive
credit
for
membership
service
and
prior
13
service
for
the
period
of
time
for
which
the
contributions
are
14
made.
15
Sec.
18.
Section
97B.80C,
subsection
1,
Code
2014,
is
16
amended
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
0a.
“Eligible
member”
means
as
follows:
18
(1)
Prior
to
July
1,
2014,
a
vested
or
retired
member.
19
(2)
Beginning
on
or
after
July
1,
2014,
a
member
vested
by
20
service
or
a
retired
member
who
is
vested
by
service
and
who
21
is
within
six
months
of
the
retired
member’s
first
month
of
22
entitlement.
23
Sec.
19.
Section
97B.80C,
subsection
2,
paragraphs
a,
b,
and
24
c,
Code
2014,
are
amended
to
read
as
follows:
25
a.
A
vested
or
retired
An
eligible
member
may
make
26
contributions
to
the
retirement
system
to
purchase
up
to
the
27
maximum
amount
of
permissive
service
credit
for
qualified
28
service
as
determined
by
the
system,
pursuant
to
Internal
29
Revenue
Code
section
415(n),
the
requirements
of
this
section
,
30
and
the
system’s
administrative
rules.
31
b.
A
vested
or
retired
An
eligible
member
of
the
retirement
32
system
may
make
contributions
to
the
retirement
system
to
33
purchase
up
to
a
maximum
of
twenty
quarters
of
permissive
34
service
credit
for
nonqualified
service
as
determined
by
the
35
-6-
LSB
5224DP
(6)
85
ec/sc
6/
10
S.F.
_____
H.F.
_____
system,
pursuant
to
Internal
Revenue
Code
section
415(n),
the
1
requirements
of
this
section
,
and
the
system’s
administrative
2
rules.
A
vested
or
retired
An
eligible
member
must
have
at
3
least
twenty
quarters
of
covered
wages
in
order
to
purchase
4
permissive
service
credit
for
nonqualified
service.
5
c.
A
vested
or
retired
An
eligible
member
may
convert
6
regular
member
service
credit
to
special
service
credit
by
7
payment
of
the
amount
actuarially
determined
as
necessary
to
8
fund
the
resulting
increase
in
the
member’s
accrued
benefit.
9
The
conversion
shall
be
treated
as
a
purchase
of
qualified
10
service
credit
subject
to
the
requirements
of
paragraph
“a”
11
if
the
service
credit
to
be
converted
was
or
would
have
been
12
for
qualified
service.
The
conversion
shall
be
treated
as
13
a
purchase
of
nonqualified
service
credit
subject
to
the
14
requirements
of
paragraph
“b”
if
the
service
credit
to
be
15
converted
was
purchased
as
nonqualified
service
credit.
16
Sec.
20.
Section
231.33,
subsection
21,
Code
2014,
is
17
amended
to
read
as
follows:
18
21.
Comply
with
all
applicable
requirements
of
the
Iowa
19
public
employees’
retirement
system
established
pursuant
to
20
chapter
97B
.
Notwithstanding
any
provision
to
the
contrary,
21
an
employee
of
an
area
agency
on
aging
that
was
enrolled
in
22
an
alternative
qualified
plan
prior
to
July
1,
2012,
may
23
continue
participation
in
that
alternative
qualified
plan
in
24
lieu
of
mandatory
participation
in
the
Iowa
public
employees’
25
retirement
system.
26
Sec.
21.
Section
602.11115,
subsection
2,
Code
2014,
is
27
amended
to
read
as
follows:
28
2.
To
commence
coverage
under
the
judicial
retirement
29
system
pursuant
to
article
9
,
part
1,
effective
July
1,
1984,
30
but
to
become
an
inactive
member
of
the
Iowa
public
employees’
31
retirement
system
pursuant
to
chapter
97B
and
remain
eligible
32
for
benefits
under
sections
97B.49A
through
97B.49H
97B.49G
for
33
the
period
of
membership
service
under
chapter
97B
.
34
Sec.
22.
Section
602.11116,
subsection
2,
Code
2014,
is
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amended
to
read
as
follows:
1
2.
To
commence
membership
under
the
judicial
retirement
2
system
pursuant
to
article
9
,
part
1,
effective
July
1,
1998,
3
but
to
become
an
inactive
member
of
the
Iowa
public
employees’
4
retirement
system
pursuant
to
chapter
97B
and
remain
eligible
5
for
benefits
under
sections
97B.49A
through
97B.49H
97B.49G
,
as
6
applicable,
for
the
period
of
membership
service
under
chapter
7
97B
.
8
Sec.
23.
REPEAL.
Sections
97B.49H
and
97B.49I,
Code
2014,
9
are
repealed.
10
Sec.
24.
EFFECTIVE
UPON
ENACTMENT.
The
following
11
provision
or
provisions
of
this
Act,
being
deemed
of
immediate
12
importance,
take
effect
upon
enactment:
13
1.
The
section
of
this
Act
amending
section
97B.1A,
14
subsection
8,
paragraph
b,
subparagraph
(7).
15
Sec.
25.
RETROACTIVE
APPLICABILITY.
The
following
16
provision
or
provisions
of
this
Act
apply
retroactively
to
June
17
30,
2012:
18
1.
The
section
of
this
Act
amending
section
97B.1A,
19
subsection
8,
paragraph
b,
subparagraph
(7).
20
2.
The
section
of
this
Act
amending
section
231.33,
21
subsection
21.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
concerns
the
Iowa
Public
Employees’
Retirement
26
System
(IPERS).
27
Code
sections
97B.1A(5)
and
97B.44,
concerning
beneficiaries
28
under
IPERS,
are
amended
to
provide
that
beneficiaries
can
be
29
designated
through
a
qualified
domestic
relations
order.
30
Code
section
97B.1A(8)(b),
defining
employees
who
are
not
31
covered
under
IPERS,
is
amended
to
provide
that
employees
of
an
32
area
agency
on
aging
who
were
participating
in
an
alternative
33
retirement
plan
on
June
30,
2012,
and
who
elected
out
of
IPERS
34
coverage
by
September
1,
2013,
are
excluded
from
coverage
under
35
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IPERS.
A
corresponding
amendment
is
made
to
Code
section
1
231.33,
concerning
area
agencies
on
aging.
These
provisions
2
take
effect
upon
enactment
and
apply
retroactively
to
June
30,
3
2012.
4
Code
section
97B.40,
concerning
fraudulent
practices
under
5
IPERS,
is
amended.
The
bill
authorizes
IPERS
to
refuse
to
6
approve
an
application
for
benefits
or
to
suspend
or
reduce
7
benefits
to
a
person
if
the
IPERS
system
determines
the
person
8
may
have
engaged
in
a
fraudulent
practice.
9
Code
section
97B.49F(2),
establishing
the
favorable
10
experience
dividend
program
for
IPERS
members
who
retired
on
or
11
after
July
1,
1990,
is
stricken.
12
Code
section
97B.49H,
establishing
active
member
13
supplemental
accounts,
is
repealed.
The
bill
includes
14
corresponding
amendments
related
to
the
repeal.
15
Code
section
97B.49I,
providing
for
a
qualified
benefits
16
arrangement,
is
repealed.
17
Code
section
97B.50A(9),
concerning
the
medical
board
18
used
for
purposes
of
disability
benefits
for
special
service
19
IPERS
members,
is
amended
to
allow
IPERS
to
use
one
or
more
20
physicians
from
the
University
of
Iowa
as
the
medical
board.
21
Current
law
requires
that
the
medical
board
consist
of
three
22
physicians
from
the
University
of
Iowa.
23
Code
section
97B.53,
concerning
refunds,
is
amended
to
24
require
a
married
IPERS
member
seeking
a
refund
to
submit
25
a
written
acknowledgment
of
the
member’s
spouse
to
IPERS.
26
The
bill
provides
that
a
married
member
may
still
receive
27
a
refund
if
the
member
is
unable
to
locate
the
spouse
and
28
IPERS
shall
not
be
liable
based
upon
a
refund
made
without
the
29
acknowledgment
of
the
member’s
spouse.
30
Code
section
97B.80,
concerning
the
purchase
of
IPERS
31
service
for
military
service,
is
amended
to
provide
that
only
a
32
member
vested
by
service
or
a
retired
member
who
is
vested
by
33
service
and
is
within
six
months
of
the
member’s
first
month
34
of
entitlement
may
make
a
service
purchase
under
this
Code
35
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H.F.
_____
section.
Currently,
any
vested
or
retired
member,
regardless
1
of
how
the
member
became
vested,
who
has
at
least
one
year
of
2
IPERS
wages
may
make
a
service
purchase
at
any
time.
3
Code
section
97B.80C,
concerning
purchases
of
permissive
4
service
credit,
is
amended
to
provide
that
only
a
member
5
vested
by
service
or
a
retired
member
who
is
vested
by
6
service
and
is
within
six
months
of
the
member’s
first
month
7
of
entitlement
may
make
a
service
purchase
under
this
Code
8
section.
Currently,
any
vested
or
retired
member,
regardless
9
of
how
the
member
became
vested,
may
make
a
service
purchase
10
under
this
Code
section
at
any
time.
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