Iowa House Bill HSB59

Iowa 2023-2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/20/23

Caption

A bill for an act An Act relating to service credit for military service under the Iowa Public Employees' Retirement System.

Impact

The passage of HSB59 would allow military service members to have their time spent in active duty recognized in their retirement calculations, which could lead to increased retirement allowances for those who qualify. This amendment aims to ease the process for these members by eliminating the requirement to make additional contributions to the retirement system for this period of service. It presents a potential financial benefit to many veterans, making their transition to retirement smoother.

Summary

House Study Bill 59 (HSB59) proposes an amendment to the Iowa Public Employees Retirement System (IPERS) related to service credit for individuals who have served in the military. The bill allows vested or retired members of IPERS to receive credit for their membership service and prior service based on their active duty military service. This credit can accumulate up to a maximum of sixteen quarters, significantly impacting the retirement benefits of eligible military veterans seeking to enhance their total years of service credited under IPERS.

Contention

One notable point of contention surrounding the bill could be related to the financial implications for the IPERS funding system. Critics may argue that providing additional service credit without requiring contributions could strain the retirement fund, especially as more veterans take advantage of this benefit. In response, proponents would likely emphasize the moral obligation to appropriately compensate those who have served the country, framing the bill as a necessary recognition of their contributions.