Senate
File
2098
-
Introduced
SENATE
FILE
2098
BY
KETTERING
A
BILL
FOR
An
Act
concerning
reemployed
retired
members
under
the
Iowa
1
public
employees’
retirement
system.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5252XS
(2)
84
ec/sc
S.F.
2098
Section
1.
Section
97B.1A,
subsection
8,
paragraph
b,
1
Code
Supplement
2011,
is
amended
by
adding
the
following
new
2
subparagraph:
3
NEW
SUBPARAGRAPH
.
(10)
Retired
members.
4
Sec.
2.
Section
97B.1A,
subsection
26,
paragraph
b,
5
subparagraph
(3),
Code
Supplement
2011,
is
amended
to
read
as
6
follows:
7
(3)
Effective
July
1,
1992,
“covered
wages”
does
not
8
include
wages
to
a
member
on
or
after
the
effective
date
of
9
the
member’s
retirement,
except
as
otherwise
permitted
by
the
10
system’s
administrative
rules
,
unless
the
member
is
reemployed,
11
as
provided
under
section
97B.48A
.
12
Sec.
3.
NEW
SECTION
.
97B.11B
Additional
contributions.
13
Notwithstanding
any
provision
of
this
chapter
to
the
14
contrary,
an
employer
of
an
eligible
retired
member
shall
make
15
contributions
to
the
system
in
an
amount
equal
to
the
amount
16
the
employer
would
have
contributed
for
that
eligible
retired
17
member
pursuant
to
section
97B.11
if
the
eligible
retired
18
member
was
not
excluded
from
coverage
under
this
chapter.
19
Contributions
made
pursuant
to
this
section
shall
not
be
20
refunded
to
the
retired
member.
For
purposes
of
this
section,
21
an
“eligible
retired
member”
is
a
retired
member
who
would
22
otherwise
be
covered
under
this
chapter
if
the
retired
member
23
was
not
excluded
from
the
definition
of
employee
as
provided
in
24
section
97B.1A,
subsection
8.
25
Sec.
4.
Section
97B.48A,
subsections
1,
2,
and
4,
Code
2011,
26
are
amended
to
read
as
follows:
27
1.
a.
If
a
retired
member
who
has
not
reached
the
28
retired
member’s
sixty-fifth
birthday
and
who
has
a
bona
29
fide
retirement
under
this
chapter
is
in
regular
full-time
30
employment
with
a
covered
employer
during
a
calendar
year,
31
the
retired
member’s
retirement
allowance
shall
be
reduced
32
by
fifty
cents
for
each
dollar
the
retired
member
earns
over
33
the
limit
provided
in
this
subsection
.
However,
employment
34
is
not
full-time
employment
with
a
covered
employer
until
the
35
-1-
LSB
5252XS
(2)
84
ec/sc
1/
4
S.F.
2098
retired
member
receives
remuneration
in
an
amount
in
excess
of
1
thirty
thousand
dollars
for
a
calendar
year,
or
an
amount
equal
2
to
the
amount
of
remuneration
permitted
for
a
calendar
year
3
for
persons
under
sixty-five
years
of
age
before
a
reduction
4
in
federal
social
security
retirement
benefits
is
required,
5
whichever
is
higher.
Effective
the
first
of
the
month
in
which
6
a
retired
member
attains
the
age
of
sixty-five
years,
a
retired
7
member
may
receive
a
retirement
allowance
without
a
reduction
8
after
return
to
covered
employment
with
a
covered
employer
9
regardless
of
the
amount
of
remuneration
received.
10
b.
If
a
retired
member
dies
and
the
full
amount
of
the
11
reduction
from
retirement
allowances
required
under
this
12
subsection
has
not
been
paid,
the
remaining
amounts
shall
13
be
deducted
from
the
payments
made,
if
any,
to
the
retired
14
member’s
designated
beneficiary
or
contingent
annuitant.
15
If
the
retired
member
has
selected
an
option
under
which
16
remaining
payments
are
not
required
or
the
remaining
payments
17
are
insufficient
to
satisfy
the
full
amount
of
the
reduction
18
from
retirement
allowances
required
under
this
subsection
,
19
the
amount
still
unpaid
shall
be
a
claim
against
the
member’s
20
estate.
21
c.
For
purposes
of
this
subsection
and
not
for
purposes
of
22
determining
a
retiree’s
covered
wages,
remuneration
paid
on
23
and
after
July
1,
2007,
includes
noncovered
contributions
to
a
24
defined
contribution
plan
qualified
under
Internal
Revenue
Code
25
section
401(a),
a
tax-deferred
annuity
qualified
under
Internal
26
Revenue
Code
section
403(b),
an
eligible
deferred
compensation
27
plan
qualified
under
Internal
Revenue
Code
section
457,
or
any
28
other
tax
qualified
or
nonqualified
investment
vehicle,
that
29
is
provided
by
an
employer
to
a
retiree
who
has
been
or
will
30
be
reemployed
in
covered
regular
full-time
employment
with
a
31
covered
employer
.
32
2.
Effective
January
1,
1991,
a
retired
member
of
any
age
33
may
receive
a
retirement
allowance
after
return
to
covered
34
employment
with
a
covered
employer
,
regardless
of
the
amount
35
-2-
LSB
5252XS
(2)
84
ec/sc
2/
4
S.F.
2098
of
remuneration
received,
if
the
covered
employment
consists
1
of
holding
an
elective
office.
2
4.
The
system
shall
pay
to
the
a
retired
member
the
3
accumulated
contributions
of
the
retired
member
and
all
of
4
the
employer
contributions
made
prior
to
July
1,
2012
,
plus
5
interest
plus
interest
dividends
as
provided
in
section
97B.70
,
6
for
all
completed
calendar
years,
compounded
as
provided
in
7
section
97B.70
,
on
the
covered
wages
earned
by
a
retired
member
8
prior
to
July
1,
2012,
that
are
not
used
in
the
calculation
9
or
recalculation
of
the
retirement
allowance
of
a
member.
A
10
payment
of
contributions
to
a
retired
member
pursuant
to
this
11
subsection
shall
be
considered
a
retirement
payment
and
not
a
12
refund
and
the
retired
member
shall
not
be
eligible
to
buy
back
13
the
period
of
reemployment
service.
14
Sec.
5.
Section
97B.52A,
subsection
1,
paragraph
c,
Code
15
2011,
is
amended
by
adding
the
following
new
subparagraph:
16
NEW
SUBPARAGRAPH
.
(3)
For
purposes
of
this
paragraph
“c”
,
17
“covered
employment”
means
employment
by
a
retired
member
with
18
a
covered
employer
that
would
be
covered
employment
under
19
this
chapter
if
the
retired
member
was
not
excluded
from
20
the
definition
of
employee
as
provided
in
section
97B.1A,
21
subsection
8.
22
EXPLANATION
23
This
bill
provides
that
retired
members
under
the
Iowa
24
public
employees’
retirement
system
(IPERS)
are
excluded
from
25
the
definition
of
employee
for
purposes
of
IPERS.
By
excluding
26
retired
members
from
the
definition
of
employee,
a
retired
27
member
returning
to
employment
with
an
IPERS-covered
employer
28
shall
not
become
a
member
of
the
system
for
that
employment
29
and
shall
not
make
contributions
to
the
system
or
be
granted
30
membership
service
for
that
employment.
Under
current
law,
a
31
retired
member
who
returns
to
employment
with
an
IPERS-covered
32
employer
can
be
considered
an
employee
for
purposes
of
IPERS
33
coverage.
34
New
Code
section
97B.11B
provides
that
an
employer
of
a
35
-3-
LSB
5252XS
(2)
84
ec/sc
3/
4
S.F.
2098
retired
member
shall
make
employer
contributions
to
the
system
1
for
that
member
in
an
amount
equal
to
what
the
employer
would
2
have
been
required
to
contribute
if
the
retired
member
was
not
3
excluded
from
the
definition
of
employee
as
provided
in
this
4
bill.
Contributions
made
pursuant
to
this
Code
section
shall
5
not
be
refunded
to
the
retired
member.
6
Code
section
97B.48A,
concerning
reemployment,
is
amended
7
to
provide
that
current
requirements
applicable
to
retired
8
reemployed
members
apply
to
retired
members
who
return
to
9
full-time
employment
with
an
IPERS-covered
employer.
The
10
provision
allowing
the
refund
of
accumulated
contributions
made
11
on
behalf
of
retired
reemployed
members
is
amended
to
provide
12
that
only
employer
contributions
made
prior
to
July
1,
2012,
13
can
be
refunded.
14
Code
section
97B.52A,
concerning
bona
fide
retirement,
is
15
amended
to
provide
that
covered
employment
for
purposes
of
16
determining
a
bona
fide
retirement
for
a
retired
member
means
17
employment
that
would
have
been
covered
employment
under
IPERS
18
if
the
retired
member
was
not
excluded
from
the
definition
of
19
employee
as
provided
in
the
bill.
20
-4-
LSB
5252XS
(2)
84
ec/sc
4/
4