| 1 | 1 | | House File 818 - Introduced HOUSE FILE 818 BY JACOBY A BILL FOR An Act relating to contribution rates to the Iowa public 1 employees retirement system and the municipal fire and 2 police retirement system. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1902YH (2) 91 sc/ns |
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| 3 | 3 | | H.F. 818 Section 1. Section 97B.11, subsection 3, unnumbered 1 paragraph 1, Code 2025, is amended to read as follows: 2 On and after From July 1, 2011 , through June 30, 2025 , 3 for purposes of this section , unless the context otherwise 4 requires: 5 Sec. 2. Section 97B.11, Code 2025, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 4. On and after July 1, 2025, for purposes 8 of this section, unless the context otherwise requires: 9 a. For members in regular service: 10 (1) Applicable employee percentage means the percentage 11 rate equal to forty percent of the required contribution rate 12 for members in regular service. 13 (2) Applicable employer percentage means the percentage 14 rate equal to sixty percent of the required contribution rate 15 for members in regular service. 16 b. For members in special service in a protection occupation 17 as described in section 97B.49B: 18 (1) Applicable employee percentage means the percentage 19 rate equal to zero percent of the required contribution rate 20 for members described in section 97B.49B. 21 (2) Applicable employer percentage means the percentage 22 rate equal to one hundred percent of the required contribution 23 rate for members described in section 97B.49B. 24 c. For members in special service as a county sheriff or 25 deputy sheriff as described in section 97B.49C: 26 (1) Applicable employee percentage means the percentage 27 rate equal to zero percent of the required contribution rate 28 for members described in section 97B.49C. 29 (2) Applicable employer percentage means the percentage 30 rate equal to one hundred percent of the required contribution 31 rate for members described in section 97B.49C. 32 d. Required contribution rate means that percentage of the 33 covered wages of members in regular service, members described 34 in section 97B.49B, and members described in section 97B.49C, 35 -1- LSB 1902YH (2) 91 sc/ns 1/ 3 |
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| 5 | 5 | | H.F. 818 that the system shall, for each fiscal year, separately set 1 for members in each membership category as provided in this 2 subsection. The required contribution rate that is set by the 3 system for a membership category shall be the contribution 4 rate the system actuarially determines, based upon the 5 most recent actuarial valuation of the system and using the 6 actuarial methods, assumptions, and funding policy approved 7 by the investment board, is the rate required by the system 8 to discharge its liabilities as a percentage of the covered 9 wages of members in that membership category. However, the 10 required contribution rate set by the system for members in 11 regular service for a fiscal year shall not vary by more than 12 one percentage point from the required contribution rate for 13 the prior fiscal year. 14 Sec. 3. Section 411.8, subsection 1, paragraph f, 15 subparagraph (8), Code 2025, is amended to read as follows: 16 (8) Beginning July 1, 1996, and each fiscal year thereafter, 17 an amount equal to the members contribution rate times each 18 members compensation shall be paid to the fund from the 19 earnable compensation of the member. For the purposes of this 20 subparagraph, the members contribution rate shall be nine and 21 thirty-five hundredths percent until June 30, 2009, nine and 22 four-tenths percent until June 30, 2024, and , beginning July 23 1, 2024, nine and fifty-five hundredths percent until June 24 30, 2025 . However, the system shall increase the members 25 contribution rate as necessary to cover any increase in cost 26 to the system resulting from statutory changes which are 27 enacted by any session of the general assembly meeting after 28 January 1, 1991, if the increase cannot be absorbed within 29 the contribution rates otherwise established pursuant to this 30 paragraph, but subject to a maximum employee contribution rate 31 of eleven and three-tenths percent or, beginning July 1, 2009, 32 eleven and thirty-five hundredths percent. The contribution 33 rate increases specified in 1994 Iowa Acts, ch. 1183 , pursuant 34 to this chapter and chapter 97A shall be the only member 35 -2- LSB 1902YH (2) 91 sc/ns 2/ 3 |
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| 7 | 7 | | H.F. 818 contribution rate increases for these systems resulting from 1 the statutory changes enacted in 1994 Iowa Acts, ch. 1183 , and 2 shall apply only to the fiscal periods specified in 1994 Iowa 3 Acts, ch. 1183 . After the employee contribution reaches eleven 4 and three-tenths percent or eleven and thirty-five hundredths 5 percent, as applicable, sixty percent of the additional cost 6 of such statutory changes shall be paid by employers under 7 paragraph c and forty percent of the additional cost shall 8 be paid by employees under this paragraph. However, beginning 9 July 1, 2025, the members contribution rate shall be zero 10 percent. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanations substance by the members of the general assembly. 14 This bill reduces the amount a member of the Iowa public 15 employees retirement system (IPERS) who is employed in a 16 protection occupation or as a sheriff or deputy sheriff is 17 required to contribute to IPERS to 0 percent of the required 18 contribution rate. The bill increases the applicable employer 19 percentage for an employer of an IPERS member who is employed 20 in a protection occupation or as a sheriff or deputy sheriff to 21 100 percent of the required contribution rate. 22 The bill also reduces the members contribution rate for 23 members of the municipal fire and police retirement system to 24 0 percent. 25 -3- LSB 1902YH (2) 91 sc/ns 3/ 3 |
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