Bill Text: IA SF45 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act providing for the development of a mandatory defined contribution pension plan for certain public employees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-03-08 - NOBA: Final [SF45 Detail]
Download: Iowa-2017-SF45-Introduced.html
Senate File 45 - Introduced SENATE FILE BY ZAUN A BILL FOR 1 An Act providing for the development of a mandatory defined 2 contribution pension plan for certain public employees. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1574XS (3) 87 ec/sc PAG LIN 1 1 Section 1. Section 97A.3, subsection 1, Code 2017, is 1 2 amended to read as follows: 1 3 1. All peace officer members of the division of state 1 4 patrol and the division of criminal investigation or the 1 5 predecessor divisions or subunits in the department of public 1 6 safety, excepting the members of the clerical force, who 1 7 are employed by the state of Iowa on July 4, 1949, and all 1 8 persons thereafter employed as members of such divisions or the 1 9 predecessor divisions or subunits in the department of public 1 10 safety or division of narcotics enforcement or division of 1 11 state fire marshal or the predecessor divisions or subunits, 1 12 except the members of the clerical force, shall be members of 1 13 this system, except as otherwise provided in this subsection 1 14 or subsection 3. Effective July 1, 1994, gaming enforcement 1 15 officers employed by the division of criminal investigation 1 16 for excursion boat and gambling structure gambling enforcement 1 17 activities and fire prevention inspector peace officers 1 18 employed by the department of public safety shall be members of 1 19 this system, except as otherwise provided in this subsection 1 20 or subsection 3 or section 97B.42B. Such members shall not 1 21 be required to make contributions under any other pension 1 22 or retirement system of the state of Iowa, anything to the 1 23 contrary notwithstanding. However, peace officer members of 1 24 the division of state patrol and the division of criminal 1 25 investigation or the predecessor divisions or subunits 1 26 in the department of public safety, persons employed as 1 27 members of such divisions or the predecessor divisions or 1 28 subunits in the department of public safety or division of 1 29 narcotics enforcement or division of state fire marshal or the 1 30 predecessor divisions or subunits, gaming enforcement officers, 1 31 and fire prevention inspector peace officers newly hired on or 1 32 after July 1, 2019, shall not be eligible to participate in the 1 33 retirement system under this chapter. 1 34 Sec. 2. Section 97B.1A, subsection 8, paragraph b, Code 1 35 2017, is amended by adding the following new subparagraph: 2 1 NEW SUBPARAGRAPH. (10) Employees who are employed as 2 2 defined in this chapter for whom coverage under this chapter 2 3 would otherwise be mandatory or optional but who are newly 2 4 hired on or after July 1, 2019. 2 5 Sec. 3. Section 411.2, subsection 1, Code 2017, is amended 2 6 to read as follows: 2 7 1. Except as provided in subsections 2 through56, 2 8 each city in which the fire fighters or police officers are 2 9 appointed under the civil service law of this state, shall 2 10 participate in the retirement system established by this 2 11 chapter for the purpose of providing retirement allowances only 2 12 for fire fighters or police officers, or both, of the cities 2 13 who are so appointed after the date the city comes under the 2 14 retirement system, or benefits to their dependents. 2 15 Sec. 4. Section 411.2, Code 2017, is amended by adding the 2 16 following new subsection: 2 17 NEW SUBSECTION. 6. A police officer or fire fighter hired 2 18 on or after July 1, 2019, by a city with a population of more 2 19 than eight thousand prior to the results of the federal census 2 20 conducted in 1990 shall not be eligible to participate in the 2 21 retirement system under this chapter. 2 22 Sec. 5. Section 602.1611, subsection 1, unnumbered 2 23 paragraph 1, Code 2017, is amended to read as follows: 2 24 Judges of the supreme court and court of appeals, district 2 25 judges, and district associate judges are members of the 2 26 judicial retirement system established in article 9, part 1, 2 27 and are not members of the public employees' retirement system 2 28 established in chapter 97B, except as provided in paragraphs 2 29 "a",and"b", and "c". 2 30 Sec. 6. Section 602.1611, subsection 1, Code 2017, is 2 31 amended by adding the following new paragraph: 2 32 NEW PARAGRAPH. c. Judges of the supreme court and court 2 33 of appeals, district judges, and district associate judges 2 34 appointed on or after July 1, 2019, shall not become members 2 35 of the judicial retirement system established in article 9, 3 1 part 1, but shall instead become eligible to participate in 3 2 an alternative defined contribution retirement system as 3 3 established by the state court administrator. 3 4 Sec. 7. ALTERNATIVE DEFINED CONTRIBUTION PEACE OFFICERS' 3 5 RETIREMENT SYSTEM STUDY ==== REPORT. 3 6 1. The board of trustees of the Iowa department of public 3 7 safety peace officers' retirement, accident, and disability 3 8 system established by chapter 97A shall conduct a study for the 3 9 development of an alternative defined contribution retirement 3 10 system for peace officers hired on or after July 1, 2019, who 3 11 are ineligible to participate in the Iowa department of public 3 12 safety peace officers' retirement, accident, and disability 3 13 system established in chapter 97A, as provided in this Act. 3 14 The board shall conduct a study and submit a report, including 3 15 its findings and recommendations, to the public retirement 3 16 systems committee established in section 97D.4, by October 1, 3 17 2018. 3 18 2. The goal of the study shall be the selection of an 3 19 alternative defined contribution retirement plan that provides 3 20 adequate retirement benefits while reducing and stabilizing the 3 21 cost to taxpayers of providing retirement benefits. 3 22 3. In making its recommendation, the board shall consider 3 23 methods of providing medical, disability, and line of duty 3 24 death benefits to affected peace officers. The board shall 3 25 also consider whether the affected peace officers can be 3 26 enrolled in the federal social security system. 3 27 Sec. 8. ALTERNATIVE DEFINED CONTRIBUTION IOWA PUBLIC 3 28 EMPLOYEES' RETIREMENT SYSTEM STUDY ==== REPORT. 3 29 1. The Iowa public employees' retirement system shall 3 30 conduct a study for the development of an alternative defined 3 31 contribution retirement system for employees who would 3 32 otherwise be members of the system but who are hired on or 3 33 after July 1, 2019, and are ineligible to participate in 3 34 the Iowa public employees' retirement system established 3 35 in chapter 97B, as provided in this Act. The system shall 4 1 conduct a study and submit a report, including its findings and 4 2 recommendations, to the public retirement systems committee 4 3 established in section 97D.4, by October 1, 2018. 4 4 2. The goal of the study shall be the selection of an 4 5 alternative defined contribution retirement plan that provides 4 6 adequate retirement benefits while reducing and stabilizing the 4 7 cost to taxpayers of providing retirement benefits. 4 8 3. In making its recommendation, the system shall consider 4 9 methods of providing medical, disability, and line of duty 4 10 death benefits to employees who would otherwise be members 4 11 in special service under the system but are ineligible, as 4 12 provided in this Act. 4 13 Sec. 9. ALTERNATIVE FIRE AND POLICE RETIREMENT SYSTEM STUDY 4 14 ==== REPORT. 4 15 1. The board of trustees of the statewide fire and police 4 16 retirement system established by chapter 411 shall conduct a 4 17 study for the development of an alternative fire and police 4 18 retirement system for police officers and fire fighters hired 4 19 on or after July 1, 2019, who are ineligible to participate in 4 20 the statewide fire and police retirement system, as provided in 4 21 this Act. The board shall conduct a study and submit a report, 4 22 including its findings and recommendations, to the public 4 23 retirement systems committee established in section 97D.4, by 4 24 October 1, 2018. 4 25 2. The goal of the study shall be the selection of an 4 26 alternative defined contribution retirement plan that provides 4 27 adequate retirement benefits while reducing and stabilizing the 4 28 cost to taxpayers of providing retirement benefits. 4 29 3. In making its recommendation, the board shall consider 4 30 methods of providing medical, disability, and line of duty 4 31 death benefits to affected police officers and fire fighters. 4 32 The board shall also consider whether the affected peace 4 33 officers and fire fighters can be enrolled in the federal 4 34 social security system. 4 35 Sec. 10. ALTERNATIVE DEFINED CONTRIBUTION JUDICIAL 5 1 RETIREMENT SYSTEM STUDY ==== REPORT. 5 2 1. The state court administrator shall conduct a study 5 3 for the development of an alternative defined contribution 5 4 judicial retirement system for judges appointed on or after 5 5 July 1, 2019, who are ineligible to participate in the judicial 5 6 retirement system, as provided in this Act. The state court 5 7 administrator shall conduct a study and submit a report, 5 8 including its findings and recommendations, to the public 5 9 retirement systems committee established in section 97D.4, by 5 10 October 1, 2018. 5 11 2. The goal of the study shall be the selection of an 5 12 alternative defined contribution retirement plan that provides 5 13 adequate retirement benefits to judges while reducing and 5 14 stabilizing the cost to taxpayers of providing retirement 5 15 benefits. 5 16 EXPLANATION 5 17 The inclusion of this explanation does not constitute agreement with 5 18 the explanation's substance by the members of the general assembly. 5 19 This bill provides that employees newly hired on or after 5 20 July 1, 2019, who would otherwise be members of the public 5 21 safety peace officers' retirement, accident, and disability 5 22 system established by Code chapter 97A, the Iowa public 5 23 employees' retirement system established by Code chapter 97B, 5 24 the statewide fire and police retirement system established by 5 25 Code chapter 411, or the judicial retirement system established 5 26 by Code chapter 602 shall not become members of the applicable 5 27 retirement system. Instead, the bill directs each retirement 5 28 system to develop an alternative defined contribution plan for 5 29 these employees newly hired on or after July 1, 2019. The bill 5 30 provides that each retirement system shall submit the plan to 5 31 create an alternative defined contribution plan to the public 5 32 retirement systems committee established in Code section 97D.4 5 33 by October 1, 2018. LSB 1574XS (3) 87 ec/sc
