House File 967 - Introduced HOUSE FILE 967 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 265) A BILL FOR An Act relating to benefits and contributions for members 1 of the Iowa public employees retirement system who are 2 employed in a protection occupation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2794HV (2) 91 sc/ns
H.F. 967 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, until 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 fifty 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 fifty percent of the required contribution rate 23 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 fifty 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 fifty percent of the required contribution rate 31 for members described in section 97B.49C. 32 d. Required contribution rate means the same as defined in 33 subsection 3. 34 Sec. 3. Section 97B.49B, subsection 1, paragraph a, 35 -1- LSB 2794HV (2) 91 sc/ns 1/ 5
H.F. 967 subparagraph (6), Code 2025, is amended to read as follows: 1 (6) For each active or inactive vested member retiring 2 on or after July 1, 2003, and before July 1, 2025, sixty 3 percent plus, if applicable, an additional three-eighths of 4 one percentage point for each additional calendar quarter of 5 eligible service beyond twenty-two years of service for the 6 member , not to exceed a total of twelve additional percentage 7 points. 8 Sec. 4. Section 97B.49B, subsection 1, paragraph a, Code 9 2025, is amended by adding the following new subparagraph: 10 NEW SUBPARAGRAPH . (7) For each active or inactive vested 11 member retiring on or after July 1, 2025, sixty percent plus, 12 if applicable, an additional five-eighths of one percentage 13 point for each additional calendar quarter of eligible service 14 beyond twenty-two years of service, not to exceed a total of 15 twenty additional percentage points. 16 Sec. 5. Section 97B.49B, subsection 2, Code 2025, is amended 17 to read as follows: 18 2. Calculation of monthly allowance. 19 a. Notwithstanding other provisions of this chapter , a 20 member who is or has been employed in a protection occupation 21 who retires on or after July 1, 1994, but before July 1, 2025, 22 and at the time of retirement is at least fifty-five years 23 of age may elect to receive, in lieu of the receipt of any 24 benefits as calculated pursuant to section 97B.49A or 97B.49D , 25 a monthly retirement allowance equal to one-twelfth of an 26 amount equal to the applicable percentage of the three-year 27 average covered wage as a member who has been employed in a 28 protection occupation multiplied by a fraction of years of 29 service, with benefits payable during the members lifetime. 30 b. Notwithstanding other provisions of this chapter, a 31 member who is or has been employed in a protection occupation 32 who retires on or after July 1, 2025, and at the time of 33 retirement is at least fifty-five years of age, or is at least 34 fifty years of age with at least twenty-two years of eligible 35 -2- LSB 2794HV (2) 91 sc/ns 2/ 5
H.F. 967 service, may elect to receive, in lieu of the receipt of any 1 benefits as calculated pursuant to section 97B.49A or 97B.49D, 2 a monthly retirement allowance equal to one-twelfth of an 3 amount equal to the applicable percentage of the three-year 4 average covered wage as a member who has been employed in a 5 protection occupation multiplied by a fraction of years of 6 service, with benefits payable during the members lifetime. 7 Sec. 6. Section 97B.49B, Code 2025, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 5. Annual adjustment of allowance. A 10 member who retires from employment in a protection occupation 11 on or after July 1, 2025, and who receives a monthly retirement 12 allowance under this section, shall have the monthly retirement 13 allowance adjusted as follows: 14 a. On each July 1, the monthly retirement allowance 15 authorized in this section and payable to a member retired 16 prior to that date, and to a beneficiary or contingent 17 annuitant entitled to a monthly retirement allowance prior 18 to that date, shall be adjusted by adding to the monthly 19 retirement allowance payable on that date an amount equal to 20 the sum of one and one-half percent of the monthly retirement 21 allowance payable on that date. 22 b. A retired member, beneficiary, or contingent annuitant 23 shall not be eligible for an annual readjustment of allowance 24 provided in this subsection unless the member has twenty-two 25 years of eligible service and attained the age of fifty years 26 prior to the members termination of employment. 27 c. A retired member, beneficiary, or contingent annuitant 28 that receives an annual adjustment of allowance provided in 29 this subsection shall not be eligible for the retirement 30 dividends under section 97B.49F. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanations substance by the members of the general assembly. 34 This bill modifies the Iowa public employees retirement 35 -3- LSB 2794HV (2) 91 sc/ns 3/ 5
H.F. 967 system (IPERS) benefits and contributions for members employed 1 in a protection occupation. 2 The bill increases the amount a member of IPERS who is 3 employed in a protection occupation is required to contribute 4 to IPERS from 40 percent to 50 percent of the required 5 contribution rate and decreases the applicable employer 6 percentage for an employer of an IPERS member who is employed 7 in a protection occupation from 60 percent to 50 percent of the 8 required contribution rate. 9 The monthly retirement benefit under IPERS for a member 10 of a protection occupation is calculated by multiplying the 11 retirees applicable covered wage by a percentage. Under 12 current law, the applicable percentage is increased by 0.375 13 percent up to a maximum of 12 additional percentage points for 14 calendar quarters of service beyond 22 years of service. The 15 bill increases, for protection occupation members retiring 16 on or after July 1, 2025, the applicable percentage used to 17 calculate the retirees monthly retirement benefit to 0.625 18 percent for each calendar quarter of service beyond 22 years of 19 service up to a maximum of 20 additional percentage points. 20 The bill provides that a member of a protection occupation 21 may elect to retire at 50 years of age with 22 years of service 22 and receive the monthly retirement allowance under current law, 23 rather than at age 55. 24 The bill establishes a cost-of-living adjustment (COLA) 25 to the monthly retirement allowance for active and inactive 26 members and to beneficiaries and contingent annuitants for 27 retirements occurring on or after July 1, 2025. Beginning 28 July 1, 2025, and on each July 1 thereafter, the monthly 29 retirement allowance of such a member, beneficiary, or 30 contingent annuitant shall be adjusted by adding to the monthly 31 retirement allowance an amount equal to 1.5 percent of the 32 monthly retirement allowance payable on that date. Such a 33 member, beneficiary, or contingent annuitant is not eligible 34 for the COLA increase unless the member has 22 years of 35 -4- LSB 2794HV (2) 91 sc/ns 4/ 5
H.F. 967 eligible service and attained 50 years of age prior to the 1 retirement date of the member. A retired member, beneficiary, 2 or contingent annuitant that receives the COLA is not eligible 3 for the retirement dividends under Code section 97B.49F. 4 -5- LSB 2794HV (2) 91 sc/ns 5/ 5