Iowa HF 818: A bill for an act relating to contribution rates to the Iowa public employees’ retirement system and the municipal fire and police retirement system.

Bill Text

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

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

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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
member’s
contribution
rate
times
each
18

member’s
compensation
shall
be
paid
to
the
fund
from
the
19

earnable
compensation
of
the
member.
For
the
purposes
of
this
20

subparagraph,
the
member’s
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
member’s
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

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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
un