Iowa House Bill HSB529

Iowa 2023-2024 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

A bill for an act relating to the judicial retirement fund.(See HF 2619, HF 2702.)

Impact

If enacted, HSB529 will have a significant impact on the financial forecasting and management of the judicial retirement system. By mandating periodic actuarial valuations every four years and annual updates in years when a full valuation is not conducted, the bill seeks to ensure that the contributions are adequately assessed and adjusted based on the current financial status of the fund. This could potentially lead to more stable funding arrangements for the judiciary over the long term, depending on how the contributions are structured and adhered to.

Summary

House Study Bill 529 (HSB529) aims to amend the contribution rates and actuarial procedures related to the judicial retirement fund in Iowa. The bill stipulates that the contribution rate for judges will be set at 9.35 percent of their basic salary starting from the fiscal year 2024-2025, while the state's required contribution will be defined at 30.6 percent for the same fiscal year. This change is intended to ensure that the funding of the judicial retirement system is properly aligned with the financial requirements needed to support the judges' pensions.

Contention

While the bill seeks to clarify and enforce contribution rates, it may encounter debate surrounding the fairness of the increased contribution percentages for both judges and the state. Some may argue that setting these rates regardless of whether the retirement fund is fully funded could place undue financial pressure on state budgets. Moreover, concerns might arise about how these funding requirements will affect future judicial appointments and the overall compensation structure for judges.