Bill > SF2166

Introduced Session

This bill relates to the Iowa public employees’ retirement system (IPERS) by modifying the retirement benefits of sheriffs and deputy sheriffs. The monthly retirement benefit under IPERS for a sheriff or deputy sheriff is calculated by multiplying the retiree’s applicable covered wage by a percentage. The bill increases, for sheriffs and deputy sheriffs retiring on or after July 1, 2024, the applicable percentage used to calculate the retiree’s monthly retirement benefit by five-eighths of one percentage point for each calendar quarter of service beyond 22 years of service up to a maximum of 20 additional percentage points. Under current law, the applicable percentage is increased by three-eighths of one percentage point up to a maximum of 12 additional percentage points for calendar quarters of service beyond 22 years of service. Under current law, a vested member retiring prior to July 1, 1990, is eligible to receive an automatic retirement dividend under Code section 97B.49F(1). For a vested member retiring on or after July 1, 1990, a favorable experience dividend (FED) reserve account is provided in Code section 97B.49F(2). The FED reserve account pays a dividend to an eligible member when a favorable experience on the actuarial liabilities and assets occurs and IPERS is fully funded. The bill establishes a cost-of-living adjustment (COLA) to the monthly allowance for active and inactive members and to any beneficiaries for retirements occurring on or after July 1, 2024. Beginning July 1, 2024, and on each July 1, the monthly retirement allowance of such a member shall be adjusted by adding to the monthly retirement allowance an amount equal to one and one-half percent of the monthly retirement allowance payable on that date. A member who retires on or after July 1, 2024, is not eligible for the COLA unless the member has 22 years of eligible service and attained 50 years of age prior to the retirement date of the member. The bill prohibits a member retiring after July 1, 2024, from FED dividend eligibility provided under Code section 97B.49F(2).

AI Summary

Committee Categories

Mike Bousselot (R)*, 

Subcommittee: Schultz, Bisignano, and Westrich. S.J. 199. (on 02/01/2024)

Official Document