Bill Text: IA HF2379 | 2017-2018 | 87th General Assembly | Enrolled

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Bill Title: A bill for an act relating to municipal utility retirement systems. (Formerly HSB 624.) Effective 7-1-18.

Spectrum: Committee Bill

Status: (Passed) 2018-04-10 - Signed by Governor. H.J. 768. [HF2379 Detail]

Download: Iowa-2017-HF2379-Enrolled.html

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House File 2379 - Enrolled




                              HOUSE FILE       
                              BY  COMMITTEE ON COMMERCE

                              (SUCCESSOR TO HSB 624)
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                                   A BILL FOR
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                                        House File 2379

                             AN ACT
 RELATING TO MUNICIPAL UTILITY RETIREMENT SYSTEMS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  Section 97B.1A, subsection 8, paragraph a, Code
 2018, is amended by adding the following new subparagraph:
    NEW SUBPARAGRAPH.  (11A)  Persons with service under this
 chapter who are employed by a municipal utility, other than a
 municipal water utility or waterworks, that has established
 a pension and annuity retirement system for its employees
 pursuant to chapter 412, and who are covered under this chapter
 at the time of commencement of employment with the municipal
 utility.
    Sec. 2.  Section 97B.1A, Code 2018, is amended by adding the
 following new subsection:
    NEW SUBSECTION.  15A.  "Municipal utility" means a public
 utility as defined in section 412.5.
    Sec. 3.  Section 97B.42C, Code 2018, is amended to read as
 follows:
    97B.42C  Retirement system merger.
    A municipal water utility or waterworks that has established
 a pension and annuity retirement system for its employees
 pursuant to chapter 412, or a school district that has
 established a pension and annuity retirement system for its
 employees pursuant to chapter 294, may adopt a resolution to
 authorize the merger of its pension and annuity retirement
 system with and into the Iowa public employees' retirement
 system. The system is authorized, but is not required, to
 accept such a proposal. The governing body of the municipal
 water utility or waterworks or school district and the Iowa
 public employees' retirement system shall, acting in their
 fiduciary capacities, mutually determine the terms and
 conditions of such a merger, including any additional funds
 necessary to fund the service credits being transferred to the
 Iowa public employees' retirement system, and either party
 may decline the merger if they cannot agree on such terms and
 conditions. The system shall adopt such rules as it deems
 necessary and prudent to effectuate mergers as provided by this
 section.
    Sec. 4.  Section 412.4, Code 2018, is amended to read as
 follows:
    412.4  Payments and investments.
    The council, board of waterworks trustees, or other board
 or commission, whichever is authorized by law to manage and
 operate any such waterworks, or other municipally owned and
 operated public utility, shall have the right and power to
 contract with any legal reserve insurance company authorized to
 conduct its business in the state, or any bank located in Iowa
 having trust powers for the investment of funds contributed to
 an annuity or pension system, for the payment of the pensions
 or annuities provided in such pension or annuity retirement
 system, and may pay the premiums or make the contribution of
 such contract out of the fund provided in section 412.2. Funds
 shall be invested in accordance with the investment policy for
 the retirement fund, as established by the governing body of
 the public utility. In establishing the investment policy,
 the council, board, or commission shall be governed by the
 standards set forth in section 97B.7A.  However, permissible
 investments shall be limited to those investments authorized in
 section 12B.10, subsection 5, and investments in diversified
 commingled investment funds holding only publicly traded
 securities and under the management of an investment advisor
 registered with the federal securities and exchange commission
 under the Investment Advisor Act of 1940. Funds contributed
 to a bank pursuant to such a contract shall be invested in
 the manner prescribed in section 633.123A or chapter 633A,
 subchapter IV, part 3, and may be commingled with and invested
 as a part of a common or master fund managed for the benefit of
 more than one public utility.


                                                                                            LINDA UPMEYER


                                                                                            CHARLES SCHNEIDE


                                                                                            CARMINE BOAL


                                                                                            KIM REYNOLDS

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