Bill Text: IA HF2384 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A bill for an act concerning the Iowa public employees' retirement system and including effective date and retroactive applicability provisions. (Formerly HSB 576)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2014-03-14 - Referred to State Government. H.J. 499. [HF2384 Detail]

Download: Iowa-2013-HF2384-Introduced.html

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House File 2384 - Introduced
HOUSE FILE 2384
BY COMMITTEE ON STATE
GOVERNMENT
(SUCCESSOR TO HSB 576)
A BILL FOR
An Act concerning the Iowa public employees’ retirement system
and including effective date and retroactive applicability
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 97B.1A, subsection 5, Code 2014, is
amended to read as follows:
5. “Beneficiary” means the person or persons who are
entitled to receive any benefits payable under this chapter
at the death of a member, if the person or persons have been
designated on a form provided by the system and filed with the
system or designated pursuant to a qualified domestic relations
order on file with the system . If no such designation is in
effect at the time of death of the member or if no person so
designated is living at that time, then the beneficiary is the
estate of the member.
Sec. 2. Section 97B.1A, subsection 8, paragraph b,
subparagraph (7), Code 2014, is amended to read as follows:
(7) Employees of an area agency on aging , if as of July
1, 1994, the agency provides for participation by all of its
employees who were participating in an alternative qualified
plan pursuant to the requirements of the federal Internal
Revenue Code on June 30, 2012, and who by September 1, 2013,
filed with the system a valid decision to elect out of coverage
under this chapter .
Sec. 3. Section 97B.1A, subsection 14A, Code 2014, is
amended to read as follows:
14A. “Member account” means the account established for each
member and includes the member’s accumulated contributions and
the member’s share of the accumulated employer contributions as
provided in section 97B.53 . “Member account” does not mean the
supplemental account for active members.
Sec. 4. Section 97B.1A, subsection 22A, Code 2014, is
amended by striking the subsection.
Sec. 5. Section 97B.7A, subsection 5, Code 2014, is amended
to read as follows:
5. Travel. In the administration of the investment of
moneys in the retirement fund, employees of the system and
members of the board may travel outside the state for the
purpose of meeting with investment firms and consultants and
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attending conferences and meetings to fulfill their fiduciary
responsibilities. This travel is not subject to section
8A.512, subsection 2 .
Sec. 6. Section 97B.44, Code 2014, is amended to read as
follows:
97B.44 Beneficiary.
1. Each member shall designate , on a form to be furnished
by the system or through a qualified domestic relations order
on file with the system, designate a beneficiary for death
benefits payable under this chapter on the death of the member.
The designation may be changed from time to time by the member
by filing a new designation with the system. A designation
or change in designation made by a member on or after July
1, 2000, shall contain the written consent of the member’s
spouse, if applicable. The designation of a beneficiary is not
applicable if the member receives a refund of all contributions
of the member. If a member who has received a refund of
contributions returns to employment, the member shall file a
new designation with the system.
2. If a member has not designated a beneficiary on a form
furnished by the system as provided by this section , or if
there are no surviving designated beneficiaries of a member,
death benefits payable under this chapter shall be paid to the
member’s estate.
3. However, the The system may accept a married member’s
designation or change in designation under this section without
the written consent of the member’s spouse if the member
submits a notarized statement indicating that the member has
been unable to locate the member’s spouse to obtain the written
consent of the spouse after reasonable diligent efforts. The
member’s designation or change in designation shall become
effective upon filing the necessary forms, including the
notarized statement, or orders, with the system. The system
shall not be liable to the member, the member’s spouse, or
to any other person affected by the member’s designation or
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change of designation, based upon a designation or change of
designation accomplished without the written consent of the
member’s spouse.
Sec. 7. Section 97B.46, subsection 2, Code 2014, is amended
to read as follows:
2. A member remaining in service after attaining the age
of seventy years is entitled to receive a retirement allowance
under sections 97B.49A through 97B.49H 97B.49G , as applicable,
without terminating employment.
Sec. 8. Section 97B.48, subsection 4, Code 2014, is amended
to read as follows:
4. Payment of a member’s retirement allowance pursuant to
sections 97B.49A through 97B.49H 97B.49G shall commence no
later than the required beginning date specified under section
401(a)(9) of the federal Internal Revenue Code regardless of
whether the member has submitted the appropriate notice to
receive an allowance. If the lump sum actuarial equivalent
under subsection 1 could have been selected by the member,
payments shall be made in a lump sum rather than as a monthly
allowance.
Sec. 9. Section 97B.49B, subsection 1, paragraph e, Code
2014, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (13) A person other than a deputy
sheriff, jailer, or detention officer who is employed by a
sheriff to provide courthouse security services or prisoner
transportation duties, is required as a condition of employment
to carry a firearm and has been professionally trained and
qualified in the use of any firearm in connection with the
individual’s duties, is required and authorized under limited
circumstances to perform law enforcement duties that may
include but are not limited to detaining persons, taking
persons into custody, making arrests, transporting or providing
custody and care for those persons under the sheriff’s control,
and is a certified Iowa peace officer, has Iowa reserve
peace officer certification, or has equivalent peace officer
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training.
Sec. 10. Section 97B.49F, subsection 2, Code 2014, is
amended by striking the subsection.
Sec. 11. Section 97B.50A, subsection 1, paragraph b, Code
2014, is amended to read as follows:
b. “Net disability retirement allowance” means the amount
determined by subtracting the amount paid during the previous
calendar year by the member for health insurance or similar
health care coverage for the member and the member’s dependents
from the amount of the member’s disability retirement
allowance, including any dividends and distributions from
supplemental accounts, paid for that year pursuant to this
section .
Sec. 12. Section 97B.50A, subsection 9, Code 2014, is
amended to read as follows:
9. Medical board. The system shall designate a medical
board to be composed of three a physician or physicians from
the university of Iowa hospitals and clinics who shall arrange
for and pass upon the medical examinations required under
this section and shall report in writing to the system the
conclusions and recommendations upon all matters duly referred
to the medical board. Each report of a medical examination
under this section shall include the medical board’s findings
as to the extent of the member’s physical or mental impairment.
Except as required by this section , each report shall be
confidential and shall be maintained in accordance with the
federal Americans With Disabilities Act, and any other state
or federal law containing requirements for confidentiality of
medical records.
Sec. 13. Section 97B.52A, subsection 1, paragraph c,
subparagraph (2), subparagraph division (b), Code 2014, is
amended to read as follows:
(b) For a member whose first month of entitlement is
July 2004 or later, but before July 2014 2016 , covered
employment does not include employment as a licensed health
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care professional by a public hospital. For the purposes of
this subparagraph, “public hospital” means a hospital licensed
pursuant to chapter 135B and governed pursuant to chapter 145A ,
347 , 347A , or 392 .
Sec. 14. Section 97B.53, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 11. A request for a refund under this
section made by a member who is married requires the written
acknowledgment of the member’s spouse. However, the system
may accept a married member’s request for a refund under this
section without the written acknowledgment of the member’s
spouse if the member submits a statement affirming that after
reasonable diligent efforts the member has been unable to
locate the member’s spouse to obtain the written acknowledgment
of the spouse. A married member’s request for a refund under
this section shall become effective upon filing the necessary
forms, or including the affirmation if applicable, with the
system. The system shall not be liable to the member, the
member’s spouse, nor to any other person affected by the
member’s request for a refund based upon a request for a refund
accomplished without the written acknowledgment of the member’s
spouse.
Sec. 15. Section 97B.53A, Code 2014, is amended to read as
follows:
97B.53A Duty of system.
Upon a member’s termination of covered employment prior to
the member’s retirement, the system shall send the member by
first class mail, to the member’s last known mailing address,
a notice setting forth the balance and status of the member’s
account and supplemental account and an explanation of the
courses of action available to the member under this chapter .
Sec. 16. Section 97B.53B, subsection 1, paragraph d,
subparagraph (1), subparagraph division (a), Code 2014, is
amended to read as follows:
(a) All or any portion of a member’s account and
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supplemental account .
Sec. 17. Section 97B.70, subsection 3, Code 2014, is amended
to read as follows:
3. Interest shall be credited to the accumulated
contributions and accumulated employer contributions accounts ,
and supplemental accounts of active members, inactive vested
members, and, effective January 1, 1999, to inactive nonvested
members, until the quarter prior to the quarter in which the
member’s first retirement allowance is paid or in which the
member is issued a refund under section 97B.53 , or in which a
death benefit is issued.
Sec. 18. Section 97B.80, subsection 1, Code 2014, is amended
to read as follows:
1. a. For purposes of this subsection, “eligible member”
means as follows:
(1) For the period beginning July 1, 1992, and ending June
30, 2014, a vested or retired member who has one or more full
calendar years of covered wages.
(2) Beginning on or after July 1, 2014, a member vested by
service or a retired member who is vested by service and who
is within six months of the retired member’s first month of
entitlement.
b. Effective July 1, 1992, a vested or retired An eligible
member who has one or more full calendar years of covered wages
and who at any time served on active duty in the armed forces of
the United States, upon submitting verification of the dates
of the active duty service, may make contributions to the
retirement system for all or a portion of the period of time of
the active duty service, in increments of one or more calendar
quarters, and receive credit for membership service and prior
service for the period of time for which the contributions are
made.
Sec. 19. Section 97B.80C, subsection 1, Code 2014, is
amended by adding the following new paragraph:
NEW PARAGRAPH . 0a. “Eligible member” means as follows:
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(1) Prior to July 1, 2014, a vested or retired member.
(2) Beginning on or after July 1, 2014, a member vested by
service or a retired member who is vested by service and who
is within six months of the retired member’s first month of
entitlement.
Sec. 20. Section 97B.80C, subsection 2, paragraphs a, b, and
c, Code 2014, are amended to read as follows:
a. A vested or retired An eligible member may make
contributions to the retirement system to purchase up to the
maximum amount of permissive service credit for qualified
service as determined by the system, pursuant to Internal
Revenue Code section 415(n), the requirements of this section ,
and the system’s administrative rules.
b. A vested or retired An eligible member of the retirement
system may make contributions to the retirement system to
purchase up to a maximum of twenty quarters of permissive
service credit for nonqualified service as determined by the
system, pursuant to Internal Revenue Code section 415(n), the
requirements of this section , and the system’s administrative
rules. A vested or retired An eligible member must have at
least twenty quarters of covered wages in order to purchase
permissive service credit for nonqualified service.
c. A vested or retired An eligible member may convert
regular member service credit to special service credit by
payment of the amount actuarially determined as necessary to
fund the resulting increase in the member’s accrued benefit.
The conversion shall be treated as a purchase of qualified
service credit subject to the requirements of paragraph “a”
if the service credit to be converted was or would have been
for qualified service. The conversion shall be treated as
a purchase of nonqualified service credit subject to the
requirements of paragraph “b” if the service credit to be
converted was purchased as nonqualified service credit.
Sec. 21. Section 231.33, subsection 21, Code 2014, is
amended to read as follows:
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21. Comply with all applicable requirements of the Iowa
public employees’ retirement system established pursuant to
chapter 97B . Notwithstanding any provision to the contrary,
an employee of an area agency on aging that was enrolled in
an alternative qualified plan prior to July 1, 2012, may
continue participation in that alternative qualified plan in
lieu of mandatory participation in the Iowa public employees’
retirement system.
Sec. 22. Section 602.11115, subsection 2, Code 2014, is
amended to read as follows:
2. To commence coverage under the judicial retirement
system pursuant to article 9 , part 1, effective July 1, 1984,
but to become an inactive member of the Iowa public employees’
retirement system pursuant to chapter 97B and remain eligible
for benefits under sections 97B.49A through 97B.49H 97B.49G for
the period of membership service under chapter 97B .
Sec. 23. Section 602.11116, subsection 2, Code 2014, is
amended to read as follows:
2. To commence membership under the judicial retirement
system pursuant to article 9 , part 1, effective July 1, 1998,
but to become an inactive member of the Iowa public employees’
retirement system pursuant to chapter 97B and remain eligible
for benefits under sections 97B.49A through 97B.49H 97B.49G , as
applicable, for the period of membership service under chapter
97B .
Sec. 24. REPEAL. Sections 97B.49H and 97B.49I, Code 2014,
are repealed.
Sec. 25. EFFECTIVE UPON ENACTMENT. The following
provision or provisions of this Act, being deemed of immediate
importance, take effect upon enactment:
1. The section of this Act amending section 97B.1A,
subsection 8, paragraph b, subparagraph (7).
Sec. 26. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to June
30, 2012:
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1. The section of this Act amending section 97B.1A,
subsection 8, paragraph b, subparagraph (7).
2. The section of this Act amending section 231.33,
subsection 21.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill concerns the Iowa Public Employees’ Retirement
System (IPERS).
Code sections 97B.1A(5) and 97B.44, concerning beneficiaries
under IPERS, are amended to provide that beneficiaries can be
designated through a qualified domestic relations order.
Code section 97B.1A(8)(b), defining employees who are not
covered under IPERS, is amended to provide that employees of an
area agency on aging who were participating in an alternative
retirement plan on June 30, 2012, and who elected out of IPERS
coverage by September 1, 2013, are excluded from coverage under
IPERS. A corresponding amendment is made to Code section
231.33, concerning area agencies on aging. These provisions
take effect upon enactment and apply retroactively to June 30,
2012.
Code section 97B.49B, concerning members in a protection
occupation, is amended to provide that persons employed
by a sheriff to provide courthouse security or prisoner
transportation duties who are required to carry a firearm, have
peace officer training, and are required to perform certain
law enforcement duties, are included within the protection
occupation category of IPERS.
Code section 97B.49F(2), establishing the favorable
experience dividend program for IPERS members who retired on or
after July 1, 1990, is stricken.
Code section 97B.49H, establishing active member
supplemental accounts, is repealed. The bill includes
corresponding amendments related to the repeal.
Code section 97B.49I, providing for a qualified benefits
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arrangement, is repealed.
Code section 97B.50A(9), concerning the medical board
used for purposes of disability benefits for special service
IPERS members, is amended to allow IPERS to use one or more
physicians from the university of Iowa as the medical board.
Current law requires that the medical board consist of three
physicians from the university of Iowa.
Code section 97B.52A, concerning the determination of a
bona fide retirement under IPERS, is amended. Current law
allows, until July 2014, a person to retire, receive retirement
benefits, and to return to covered employment as a licensed
health care professional at a public hospital after one month
and still receive retirement benefits. Most retirees under
IPERS are not allowed to return to covered employment and
continue to receive retirement benefits until at least four
months after they retire. The bill extends the sunset of this
shortened period for licensed health care professionals from
July 2014 to July 2016.
Code section 97B.53, concerning refunds, is amended to
require a married IPERS member seeking a refund to submit
a written acknowledgment of the member’s spouse to IPERS.
The bill provides that a married member may still receive
a refund if the member is unable to locate the spouse and
IPERS shall not be liable based upon a refund made without the
acknowledgment of the member’s spouse.
Code section 97B.80, concerning the purchase of IPERS
service for military service, is amended to provide that only a
member vested by service or a retired member who is vested by
service and is within six months of the member’s first month
of entitlement may make a service purchase under this Code
section. Currently, any vested or retired member, regardless
of how the member became vested, who has at least one year of
IPERS wages may make a service purchase at any time.
Code section 97B.80C, concerning purchases of permissive
service credit, is amended to provide that only a member
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vested by service or a retired member who is vested by
service and is within six months of the member’s first month
of entitlement may make a service purchase under this Code
section. Currently, any vested or retired member, regardless
of how the member became vested, may make a service purchase
under this Code section at any time.
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