411.1 DEFINITIONS.
The following words and phrases as used in this chapter, unless a
different meaning is plainly required by the context, shall have the
following meanings:
1. "Actuarial equivalent" means a benefit of equal value,
when computed upon the basis of mortality tables adopted by the
system, and interest computed at the rate established by the actuary.
2. "Amount earned" shall mean the amount of money actually
earned by a beneficiary in some definite period of time.
3. "Average final compensation" means the average earnable
compensation of the member during the three years of service the
member earned the member's highest salary as a police officer or fire
fighter, or if the member has had less than three years of service,
then the average earnable compensation of the member's entire period
of service.
4. "Beneficiary" shall mean any person receiving a retirement
allowance or other benefit as provided by this chapter.
5. "Board of trustees" means the board created by section
411.36 to direct the establishment and administration of the
retirement system.
6. "Cancer" means prostate cancer, primary brain cancer,
breast cancer, ovarian cancer, cervical cancer, uterine cancer,
malignant melanoma, leukemia, non-Hodgkin's lymphoma, bladder cancer,
colorectal cancer, multiple myeloma, testicular cancer, and kidney
cancer.
7. "Child" means only surviving issue of a deceased active or
retired member, or a child legally adopted by a deceased member prior
to the member's retirement. "Child" includes only an individual
who is under the age of eighteen years, an individual who is under
the age of twenty-two years and is a full-time student, or an
individual who is disabled at the time under the definitions used in
section 202 of the Social Security Act as amended if the disability
occurred to the individual during the time the individual was under
the age of eighteen years and the parent of the individual was an
active member of the system.
8. "City" or "cities" means any city or cities
participating in the statewide fire and police retirement system as
required by this chapter.
9. "Earnable compensation" or "compensation earnable"
shall mean the annual compensation which a member receives for
services rendered as a police officer or fire fighter in the course
of employment with a participating city. However, the term
"earnable compensation" or "compensation earnable" shall not
include amounts received for overtime compensation, meal or travel
expenses, uniform allowances, fringe benefits, severance pay, or any
amount received upon termination or retirement in payment for
accumulated sick leave or vacation. Contributions made by a member
from the member's earnable compensation to a plan of deferred
compensation shall be included in earnable compensation. Other
contributions made to a plan of deferred compensation shall not be
included except to the extent provided in rules adopted by the board
of trustees pursuant to section 411.5, subsection 3.
10. "Fire fighter" or "fire fighters" shall mean only the
members of a fire department who have passed a regular mental and
physical civil service examination for fire fighters and who shall
have been duly appointed to such position. Such members shall
include fire fighters, probationary fire fighters, lieutenants,
captains, and other senior officers who have been so employed for the
duty of fighting fires.
11. "Infectious disease" means HIV or AIDS as defined in
section 141A.1, all strains of hepatitis, meningococcal meningitis,
and mycobacterium tuberculosis.
12. "Medical board" shall mean the single medical provider
network designated by the system as the medical board as provided for
in section 411.5.
13. "Member" means a member of the retirement system as
defined by section 411.3.
14. "Member in good standing" means a member in service who
is not subject to removal by the employing city of the member
pursuant to section 400.18 or 400.19, or other comparable process,
and who is not the subject of an investigation that could lead to
such removal. A person who is restored to active service for
purposes of applying for a pension under this chapter is not a member
in good standing.
15. "Membership service" shall mean service as a police
officer or a fire fighter rendered for a city which is credited as
service pursuant to section 411.4.
16. "Pension reserve" means the present value of all payments
to be made on account of any pension, or benefit in lieu of a
pension, granted under the provisions of this chapter, upon the basis
of mortality tables adopted by the system, and interest computed at
the rate established by the actuary.
17. "Pensions" means annual payments for life derived from
appropriations provided by the participating cities and the state and
from contributions of the members which are deposited in the fire and
police retirement fund. All pensions shall be paid in equal monthly
installments.
18. "Police officer" or "police officers" shall mean only
the members of a police department who have passed a regular mental
and physical civil service examination for police officers, and who
shall have been duly appointed to such positions. Such members shall
include patrol officers, probationary patrol officers, matrons,
sergeants, lieutenants, captains, detectives, and other senior
officers who are so employed for police duty.
19. "Retirement allowance" shall mean the pension, or any
benefits in lieu thereof, granted to a member upon retirement.
20. "Retirement system" or "system" means the statewide
fire and police retirement system established by this chapter for the
fire fighters and police officers of the cities described in section
411.2, its board of trustees, and its appointed representatives.
21. "Superintendent of public safety" shall mean any elected
city official who has direct jurisdiction over the fire or police
department, or the city manager in cities under the city manager form
of government.
22. "Surviving spouse" shall mean the surviving spouse of a
deceased member from active service. Surviving spouse shall include
a former spouse only if the division of assets in the dissolution of
marriage decree pursuant to section 598.17 grants the former spouse
rights of a spouse under this chapter. Section History: Early Form
[C35, § 6326-f1, f6(8,d); C39, § 6326.03, 6326.08(8,d); C46,
50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 411.1, 411.6(8); 82
Acts, ch 1261, § 26, 27] Section History: Recent Form
84 Acts, ch 1285, § 22; 90 Acts, ch 1240, § 48; 92 Acts, ch 1201,
§ 62; 2000 Acts, ch 1077, §86--89, 110, 111; 2001 Acts, ch 176, §17,
18; 2002 Acts, ch 1135, §41; 2006 Acts, ch 1092, §9; 2009 Acts, ch
99, §1
Referred to in § 97A.6, 400.11, 411.6, 724.6
411.1A PURPOSE OF CHAPTER.
The purpose of this chapter is to promote economy and efficiency
in the municipal public safety service by doing the following:
1. Provide an orderly means for police officers and fire fighters
to have a retirement system which will provide for the payment of
pensions to retired members and members incurring disabilities, and
to the surviving spouses and dependents of deceased members.
2. Provide a comprehensive disability program for police officers
and fire fighters to include standards for entrance physical
examinations, guidelines for ongoing fitness and wellness, disability
pensions, and postdisability retirement compliance requirements. Section History: Recent Form
93 Acts, ch 44, § 15; 96 Acts, ch 1129, § 90; 2000 Acts, ch 1077,
§90
Referred to in § 411.5
411.2 PARTICIPATION IN RETIREMENT SYSTEM.
1. Except as provided in subsections 2 through 5, each city in
which the fire fighters or police officers are appointed under the
civil service law of this state, shall participate in the retirement
system established by this chapter for the purpose of providing
retirement allowances only for fire fighters or police officers, or
both, of the cities who are so appointed after the date the city
comes under the retirement system, or benefits to their dependents.
2. A city whose population was under eight thousand prior to the
results of the federal census conducted in 1990 is not required to
come under the retirement system established by this chapter upon
attaining a population of eight thousand or more.
3. A city which did not have a paid fire department on May 3,
1990, is not required to come under the retirement system established
by this chapter upon establishing a paid fire department.
4. A city which did not have a paid police department on May 3,
1990, is not required to come under the retirement system established
by this chapter upon establishing a paid police department.
5. If a city's fire fighters or police officers, or both, are
appointed under the civil service law of this state but the city is
not operating a city fire or police retirement system, or both, under
this chapter on May 3, 1990, the city is not required to come under
the statewide fire and police retirement system established by this
chapter. Section History: Early Form
[C35, § 6326-f2; C39, § 6326.04; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.2] Section History: Recent Form
90 Acts, ch 1240, §49
Referred to in § 411.1
411.3 MEMBERSHIP -- REEMPLOYMENT.
1. All persons who become police officers or fire fighters after
the date the city is required to come under the retirement system,
shall become members of the retirement system as a condition of their
employment, except that a police chief or a fire chief who would not
complete twenty-two years of service under this chapter by the time
the chief attains fifty-five years of age shall, upon written request
to the system, be exempt from this chapter, and except as otherwise
provided in subsection 3. Notwithstanding section 97B.1A, a police
chief or fire chief who is exempt from this chapter is exempt from
chapter 97B. Members of the system established in this chapter shall
not be required to make contributions under any other pension or
retirement system of a city, county, or the state of Iowa, anything
to the contrary notwithstanding.
2. Should any member cease to be employed as a police officer or
fire fighter by a city, or should the member become a beneficiary or
die, the member shall thereupon cease to be a member of the system.
3. a. As used in this section, unless the context otherwise
requires, "reemployed" or "reemployment" means the employment
of a person as a police officer or fire fighter by any participating
city after the person has commenced receiving a service retirement
allowance under section 411.6.
b. If a person is reemployed, the person shall not become an
active member of the system upon reemployment, and the person so
reemployed and the participating city shall not make contributions to
the system based upon the person's compensation for reemployment. A
person who is so reemployed shall not be eligible to receive a
service retirement allowance for the period of reemployment. The
service retirement allowance shall be reinstated upon termination of
the reemployment, but the service retirement allowance shall not be
recalculated based upon the person's reemployment. Notwithstanding
section 97B.1A or any other provision of law to the contrary, a
person reemployed as provided in this subsection shall be exempt from
chapter 97B. Section History: Early Form
[C35, § 6326-f3; C39, § 6326.05; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.3] Section History: Recent Form
90 Acts, ch 1240, §50; 94 Acts, ch 1183, §66; 98 Acts, ch 1183,
§82; 2000 Acts, ch 1077, §91, 110; 2006 Acts, ch 1092, §10
Referred to in § 97D.3, 384.6, 411.1, 411.6
411.4 SERVICE CREDITABLE.
1. Service for fewer than six months of a year is not creditable
as service. Service of six months or more of a year is equivalent to
one year of service, but in no case shall more than one year of
service be creditable for all service in one calendar year, nor shall
the system allow credit as service for any period of more than one
month duration during which the member was absent without pay.
2. The system shall credit as service for a member of the system
a previous period of service only under any of the following
circumstances:
a. The member had withdrawn the member's accumulated
contributions, as defined in section 411.21, for the previous period
of service.
b. The member returned to service after an absence of service
of a period of less than four years from the last day of the prior
period of service.
c. The member returned to service after an absence of service
of a period of four or more years from the last day of the prior
period of service and the member had sufficient service as of the
last day of the prior period of service to have been entitled to a
retirement allowance on that date under section 411.6, subsection 1,
paragraph "b". Section History: Early Form
6326.06; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 411.4]
Section History: Recent Form
90 Acts, ch 1240, §51; 2000 Acts, ch 1077, §92, 110
Referred to in § 411.1, 411.21
411.5 ADMINISTRATION.
1. Board. The general responsibility for the establishment
and proper operation of the retirement system is vested in the board
of trustees created by section 411.36. The system shall be
administered under the direction of the board.
2. Compensation. The trustees, other than the secretary,
shall serve without compensation, but they shall be reimbursed from
the fire and police retirement fund for all necessary expenses which
they may incur through service on the board, as provided pursuant to
section 411.36.
3. Rules. Subject to the limitations of this chapter, the
board of trustees shall adopt rules for the establishment and
administration of the system and the fire and police retirement fund
created by this chapter, and for the transaction of its business.
4. Organization -- employees. The board of trustees shall
elect from its membership a chairperson, and shall, by majority vote
of its members, appoint a secretary who may, but need not, be one of
its members. The system shall engage such actuarial and other
services as are required to transact the business of the retirement
system. The compensation of all persons engaged by the system and
all other expenses of the board of trustees necessary for the
operation of the retirement system shall be paid at such rates and in
such amounts as the board of trustees approves.
5. Data. The system shall keep in convenient form such data
as is necessary for actuarial valuation of the fire and police
retirement fund and for checking the experience of the retirement
system.
6. Records -- reports.
a. The board of trustees shall keep a record of all its
proceedings, which record shall be open to public inspection. It
shall submit an annual report to the governor, the general assembly,
and the city council of each participating city concerning the
financial condition of the retirement system, its current and future
liabilities, and the actuarial valuation of the system. The board of
trustees shall submit a certified audit report prepared by a
certified public accountant to the auditor of state annually. The
system shall comply with the filing fee requirement of section 11.6,
subsection 10.
b. The system shall maintain records, including but not
limited to names, addresses, ages, and lengths of service, salaries
and wages, contributions, designated beneficiaries, benefit amounts,
if applicable, and other information pertaining to members as
necessary in the administration of this chapter, as well as the
names, addresses, and benefit amounts of beneficiaries. For the
purpose of obtaining these facts, the system shall have access to the
records of the participating cities and the cities shall provide such
information upon request. Member and beneficiary records containing
personal information are not public records for the purposes of
chapter 22. However, summary information concerning the demographics
of the members and general statistical information concerning the
system is subject to chapter 22, as well as aggregate information by
category.
c. Notwithstanding any provision of chapter 22 to the
contrary, the system's records may be released to any political
subdivision, instrumentality, or agency of the state solely for use
in a civil or criminal law enforcement activity pursuant to the
requirements of this paragraph. To obtain the records, the political
subdivision, instrumentality, or agency of the state shall, in
writing, certify to the system that the activity is authorized by
law, provide a written description of the information desired, and
describe the law enforcement activity for which the information is
sought. The system shall not be civilly or criminally liable for the
release of records in accordance with the requirements of this
paragraph.
d. Records containing financial or commercial information
that relates to the investment of retirement system funds if the
disclosure of such information could result in a loss to the
retirement system or to the provider of the information are not
public records for the purposes of chapter 22.
7. Legal advisor. The system may employ or retain an
attorney to serve as the system's legal advisor and to represent the
system. The costs of an attorney employed or retained by the system
shall be paid from the fire and police retirement fund created in
section 411.8.
8. Medical board. The board of trustees shall designate a
single medical provider network as the medical board for the system.
The medical board shall arrange for and pass upon all medical
examinations required under the provisions of chapter 400 and this
chapter and shall assist the system in all aspects of the
comprehensive disability program described in section 411.1A. For
examinations required because of disability, a physician from the
medical board specializing in occupational medicine, and a second
physician specializing in an appropriate field of medicine as
determined by the occupational medicine physician, shall pass upon
the medical examinations required for disability retirements and
shall report to the system in writing their conclusions and
recommendations upon all matters referred to the medical board. Each
report of a medical examination under section 411.6, subsections 3
and 5, shall include the medical board's findings in accordance with
section 411.6 as to the extent of the member's physical impairment.
9. Duties of actuary. The actuary shall be the technical
advisor of the system on matters regarding the operation of the fire
and police retirement fund and shall perform such other duties as are
required in connection with the operation of the system.
The actuary shall make such investigation of anticipated interest
earnings and of the mortality, service, and compensation experience
of the members of the system as the actuary recommends, and on the
basis of the investigation the system shall adopt such tables and
such rates as are required in subsection 11.
10. Actuarial investigation -- tables -- rates. At least
once in each five-year period, the actuary shall make an actuarial
investigation into the mortality, service, and compensation
experience of the members and beneficiaries of the retirement system,
and the interest and other earnings on the moneys and other assets of
the retirement system, and shall make a valuation of the assets and
liabilities of the fire and police retirement fund, and on the basis
of the results of the investigation and valuation, the system shall
adopt for the retirement system such actuarial methods and
assumptions, interest rate, and mortality and other tables as are
deemed necessary to conduct the annual actuarial valuation of the
system.
11. Annual actuarial valuation.
a. On the basis of the actuarial methods and assumptions,
rate of interest and tables adopted, the actuary shall make an annual
valuation of the assets and liabilities of the fire and police
retirement fund created by this chapter. As a result of the annual
actuarial valuation, the system shall do all of the following:
(1) Certify the rates of contribution payable by the cities in
accordance with section 411.8.
(2) Certify the rates of contributions payable by the members in
accordance with section 411.8.
b. Effective with the fiscal year beginning July 1, 2008, the
annual actuarial valuation required to be conducted shall include
information as required by section 97D.5.
12. Requirements related to the Internal Revenue Code.
a. As used in this subsection, unless the context otherwise
requires, "Internal Revenue Code" means the federal Internal
Revenue Code as defined in section 422.3.
b. The fund established in section 411.8 shall be held in
trust for the benefit of the members of the system and the members'
beneficiaries. No part of the corpus or income of the fund shall be
used for, or diverted to, purposes other than for the exclusive
benefit of the members or the members' beneficiaries or for expenses
incurred in the operation of the fund. A person shall not have any
interest in, or right to, any part of the corpus or income of the
fund except as otherwise expressly provided.
c. Notwithstanding any provision of this chapter to the
contrary, in the event of a complete discontinuance of contributions,
for reasons other than achieving fully funded status upon an
actuarially determined basis, or upon termination of the fund
established in section 411.8, a member shall be vested, to the extent
then funded, in the benefits which the member has accrued at the date
of the discontinuance or termination.
d. Benefits payable from the fund established in section
411.8 to members and members' beneficiaries shall not be increased
due to forfeitures from other members. Forfeitures shall be used as
soon as possible to reduce future contributions by the cities to the
fund, except that the rate shall not be less than the minimum rate
established in section 411.8.
e. Notwithstanding any provision of this chapter to the
contrary, a member's service retirement allowance shall commence on
or before the later of the following:
(1) April 1 of the calendar year following the calendar year in
which the member attains the age of seventy and one-half years.
(2) April 1 of the calendar year following the calendar year in
which the member retires.
f. The maximum annual benefit payable to a member by the
system shall be subject to the limitations set forth in section 415
of the federal Internal Revenue Code, and any regulations promulgated
pursuant to that section.
g. The annual compensation of a member taken in account for
any purpose under this chapter shall not exceed the applicable amount
set forth in section 401(a)(17) of the federal Internal Revenue Code,
and any regulations promulgated pursuant to that section.
13. Voluntary benefit programs. The board of trustees shall
be responsible for the administration of the voluntary benefit
programs established under section 411.40. The board may take any
necessary action, including the adoption of rules, for purposes of
administering the programs.
14. Medical records. A physician or surgeon, physician
assistant, advanced registered nurse practitioner, or mental health
professional who provides records to the system in connection with
the application by a member for disability retirement under this
chapter shall be entitled to charge a fee for production of the
records. The fee for copies of any records shall not exceed the
reasonable cost of production.
15. Closed sessions. In addition to the reasons provided in
section 21.5, subsection 1, the board may hold a closed session
pursuant to the requirements of section 21.5 of that portion of a
board meeting in which financial or commercial information is
provided to or discussed by the board if the board determines that
disclosure of such information could result in a loss to the
retirement system or to the provider of the information. Section History: Early Form
[C35, § 6326-f5; C39, § 6326.07; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.5; 82 Acts, ch 1261, § 28, 29] Section History: Recent Form
83 Acts, ch 101, § 84; 86 Acts, ch 1203, § 1, 2; 90 Acts, ch 1240,
§ 52; 92 Acts, ch 1201, § 63; 93 Acts, ch 44, § 16, 17; 94 Acts, ch
1183, §67, 68; 96 Acts, ch 1187, § 100; 2000 Acts, ch 1077, §93, 94,
111; 2001 Acts, ch 176, §17, 18; 2004 Acts, ch 1103, §64; 2006 Acts,
ch 1092, §11, 12; 2008 Acts, ch 1171, §50
Referred to in § 400.8, 400.8A, 411.1, 411.6A, 411.8, 411.22,
411.30
See mortality tables at end of Vol VI
411.6 BENEFITS.
1. Service retirement benefit. Retirement of a member on a
service retirement allowance shall be made by the system as follows:
a. Any member in service may retire upon written application
to the system, setting forth at what time, not less than thirty nor
more than ninety days subsequent to the execution and filing of the
application, the member desires to be retired. However, the member
at the time specified for retirement shall have attained the age of
fifty-five and shall have served twenty-two years or more, and
notwithstanding that, during the period of notification, the member
may have separated from the service.
b. Any member in service who has been a member of the
retirement system four or more years and whose employment is
terminated prior to the member's retirement, other than by death or
disability, shall upon attaining retirement age, receive a service
retirement allowance of four twenty-seconds of the retirement
allowance the member would receive at retirement if the member's
employment had not been terminated, and an additional one
twenty-second of such retirement allowance for each additional year
of service not exceeding twenty-two years of service. The amount of
the retirement allowance shall be calculated in the manner provided
in this paragraph using the average final compensation at the time of
termination of employment.
c. Once a person commences receiving a service retirement
allowance pursuant to this section, if the person is reemployed, as
defined in section 411.3, the service retirement allowance shall not
be recalculated based upon the person's reemployment.
2. Allowance on service retirement.
a. The service retirement allowance for a member who
terminates service, other than by death or disability, prior to July
1, 1990, shall consist of a pension which equals fifty percent of the
member's average final compensation.
b. The service retirement allowance for a member who
terminates service, other than by death or disability, on or after
July 1, 1990, but before July 1, 1992, shall consist of a pension
which equals fifty-four percent of the member's average final
compensation.
c. Commencing July 1, 1992, for members who terminate
service, other than by death or disability, on or after that date,
but before July 1, 2000, the system shall increase the percentage
multiplier of the member's average final compensation by an
additional two percent each July 1 until reaching sixty percent of
the member's average final compensation. The applicable percentage
multiplier shall be the rate in effect on the date of the member's
termination from service.
d. Upon retirement from service on or after July 1, 2000, a
member shall receive a service retirement allowance which shall
consist of a pension which equals sixty-six percent of the member's
average final compensation.
e. Commencing July 1, 1990, if the member has completed more
than twenty-two years of creditable service, the service retirement
allowance shall consist of a pension which equals the amount provided
in paragraph "b", "c", or "d", plus an additional
percentage as set forth below:
(1) For a member who terminates service, other than by death or
disability, on or after July 1, 1990, but before July 1, 1991, and
who does not withdraw the member's contributions pursuant to section
411.23, upon the member's retirement there shall be added
three-tenths percent of the member's average final compensation for
each year of service over twenty-two years, excluding years of
service after the member's fifty-fifth birthday. However, this
subparagraph does not apply to more than eight additional years of
service.
(2) For a member who terminates service, other than by death or
disability, on or after July 1, 1991, but before October 16, 1992,
and who does not withdraw the member's contributions pursuant to
section 411.23, upon the member's retirement there shall be added
six-tenths percent of the member's average final compensation for
each year of service over twenty-two years, excluding years of
service after the member's fifty-fifth birthday. However, this
subparagraph does not apply to more than eight additional years of
service.
(3) For a member who terminates service, other than by death or
disability, on or after October 16, 1992, but before July 1, 1998,
and who does not withdraw the member's contributions pursuant to
section 411.23, upon the member's retirement there shall be added
six-tenths percent of the member's average final compensation for
each year of service over twenty-two years. However, this
subparagraph does not apply to more than eight additional years of
service.
(4) For a member who terminates service, other than by death or
disability, on or after July 1, 1998, but before July 1, 2000, and
who does not withdraw the member's contributions pursuant to section
411.23, upon the member's retirement there shall be added one and
one-half percent of the member's average final compensation for each
year of service over twenty-two years. However, this subparagraph
does not apply to more than eight additional years of service.
(5) For a member who terminates service, other than by death or
disability, on or after July 1, 2000, and who does not withdraw the
member's contributions pursuant to section 411.23, upon the member's
retirement there shall be added two percent of the member's average
final compensation for each year of service over twenty-two years.
However, this subparagraph does not apply to more than eight
additional years of service.
3. Ordinary disability retirement benefit. Upon application
to the system, of a member in good standing or of the chief of the
police or fire departments, respectively, any member in good standing
shall be retired by the system, not less than thirty and not more
than ninety days next following the date of filing the application,
on an ordinary disability retirement allowance, if the medical board
after a medical examination of the member certifies that the member
is mentally or physically incapacitated for further performance of
duty, that the incapacity is likely to be permanent, and that the
member should be retired. However, if a person's membership in the
system first commenced on or after July 1, 1992, the member shall not
be eligible for benefits with respect to a disability which would not
exist, but for a medical condition that was known to exist on the
date that membership commenced. A member who is denied a benefit
under this subsection, by reason of a finding by the medical board
that the member is not mentally or physically incapacitated for the
further performance of duty, shall be entitled to be restored to
active service in the same position held immediately prior to the
application for disability benefits. The member-in-good-standing
requirement of this subsection may be waived for good cause as
determined by the board. The burden of establishing good cause is on
the member.
4. Allowance on ordinary disability retirement.
a. Upon retirement for ordinary disability prior to July 1,
1998, a member shall receive an ordinary disability retirement
allowance which shall consist of a pension which shall equal fifty
percent of the member's average final compensation unless either of
the following conditions exist:
(1) If the member has not had five or more years of membership
service, the member shall receive a pension equal to one-fourth of
the member's average final compensation.
(2) If the member has had twenty-two or more years of membership
service, the member shall receive a disability retirement allowance
that is equal to the greater of the benefit that the member would
receive under subsection 2 if the member were fifty-five years of age
or the disability pension otherwise calculated under this subsection.
b. Upon retirement for ordinary disability on or after July
1, 1998, a member who has five or more years of membership service
shall receive a disability retirement allowance in an amount equal to
the greater of fifty percent of the member's average final
compensation or the retirement allowance that the member would
receive under subsection 2 if the member had attained fifty-five
years of age. A member who has less than five years of membership
service shall receive a pension equal to one-fourth of the member's
average final compensation.
5. Accidental disability benefit.
a. Upon application to the system, of a member in good
standing or of the chief of the police or fire departments,
respectively, any member in good standing who has become totally and
permanently incapacitated for duty as the natural and proximate
result of an injury or disease incurred in or aggravated by the
actual performance of duty at some definite time and place, or while
acting pursuant to order, outside of the city by which the member is
regularly employed, shall be retired by the system if the medical
board certifies that the member is mentally or physically
incapacitated for further performance of duty, that the incapacity is
likely to be permanent, and that the member should be retired.
However, if a person's membership in the system first commenced on or
after July 1, 1992, the member shall not be eligible for benefits
with respect to a disability which would not exist, but for a medical
condition that was known to exist on the date that membership
commenced. A medical condition shall be deemed to have been known to
exist on the date that membership commenced if the medical condition
is reflected in any record or document completed or obtained in
accordance with the system's medical protocols pursuant to section
400.8, or in any other record or document obtained pursuant to an
application for disability benefits from the system, if such record
or document existed prior to the date membership commenced. A member
who is denied a benefit under this subsection, by reason of a finding
by the medical board that the member is not mentally or physically
incapacitated for the further performance of duty, shall be entitled
to be restored to active service in the same position held
immediately prior to the application for disability benefits.
b. If a member in service or the chief of the police or fire
departments becomes incapacitated for duty as a natural or proximate
result of an injury or disease incurred in or aggravated by the
actual performance of duty at some definite time or place or while
acting, pursuant to order, outside the city by which the member is
regularly employed, the member, upon being found to be temporarily
incapacitated following a medical examination as directed by the
city, is entitled to receive the member's full pay and allowances
from the city's general fund or trust and agency fund until
reexamined as directed by the city and found to be fully recovered or
until the city determines that the member is likely to be permanently
disabled. If the temporary incapacity of a member continues more
than sixty days, or if the city expects the incapacity to continue
more than sixty days, the city shall notify the system of the
temporary incapacity. Upon notification by a city, the system may
refer the matter to the medical board for review and consultation
with the member's treating physician during the temporary incapacity.
Except as provided by this paragraph, the board of trustees of the
statewide system has no jurisdiction over these matters until the
city determines that the disability is likely to be permanent.
c. (1) Disease under this subsection shall mean heart disease
or any disease of the lungs or respiratory tract and shall be
presumed to have been contracted while on active duty as a result of
strain or the inhalation of noxious fumes, poison, or gases.
(2) Disease under this subsection shall also mean cancer or
infectious disease and shall be presumed to have been contracted
while on active duty as a result of that duty.
(3) However, if a person's membership in the system first
commenced on or after July 1, 1992, and the heart disease, disease of
the lungs or respiratory tract, cancer, or infectious disease would
not exist, but for a medical condition that was known to exist on the
date that membership commenced, the presumption established in this
paragraph "c" shall not apply.
d. The requirement that a member be in good standing to apply
for and receive a benefit under this subsection may be waived for
good cause as determined by the board. The burden of establishing
good cause is on the member.
6. Retirement after accident.
a. Upon retirement for accidental disability prior to July 1,
1990, a member shall receive an accidental disability retirement
allowance which shall consist of a pension equal to sixty-six and
two-thirds percent of the member's average final compensation.
b. Upon retirement for accidental disability on or after July
1, 1990, but before July 1, 1998, a member shall receive an
accidental disability retirement allowance which shall consist of a
pension equal to sixty percent of the member's average final
compensation. However, if the member has had twenty-two or more
years of membership service, the member shall receive a disability
retirement allowance that is equal to the greater of the retirement
allowance that the member would receive under subsection 2 if the
member was fifty-five years of age or the disability retirement
allowance calculated under this paragraph.
c. Upon retirement for accidental disability on or after July
1, 1998, a member shall receive an accidental disability retirement
allowance which shall consist of a pension in an amount equal to the
greater of sixty percent of the member's average final compensation
or the retirement allowance that the member would receive under
subsection 2 if the member had attained fifty-five years of age.
7. Reexamination of beneficiaries retired on account of
disability. The system may, and upon the member's application
shall, require any disability beneficiary who has not yet attained
age fifty-five to undergo a medical examination at a place designated
by the medical board. The examination shall be made by the medical
board or, in special cases, by an additional physician or physicians
designated by such board. If any disability beneficiary who has not
attained the age of fifty-five refuses to submit to the medical
examination, the member's allowance may be discontinued until
withdrawal of such refusal, and if the refusal continues for one year
all rights in and to the member's pension may be revoked by the
system. For a disability beneficiary who has not attained the age of
fifty-five and whose entitlement to a disability retirement commenced
on or after July 1, 2000, the medical board may, as part of the
examination required by this subsection, suggest appropriate medical
treatment or rehabilitation if, in the opinion of the medical board,
the recommended treatment or rehabilitation would likely restore the
disability beneficiary to duty.
a. (1) Should any beneficiary for either ordinary or
accidental disability, except a beneficiary who is fifty-five years
of age or over, be engaged in a gainful occupation paying more than
the difference between the member's net retirement allowance and one
and one-half times the earnable compensation of an active member at
the same position on the salary scale within the member's rank as the
member held at retirement, then the amount of the member's retirement
allowance shall be reduced to an amount such that the member's net
retirement allowance plus the amount earned by the member shall equal
one and one-half times the amount of the current earnable
compensation of an active member at the same position on the salary
scale within the member's rank as the member held at retirement.
Should the member's earnings be later changed, the amount of the
member's retirement allowance may be further modified, provided that
the new retirement allowance shall not exceed the amount of the
retirement allowance adjusted by annual readjustments of pensions
pursuant to subsection 12 of this section nor an amount which would
cause the member's net retirement allowance, when added to the amount
earned by the beneficiary, to equal one and one-half times the amount
of the earnable compensation of an active member at the same position
on the salary scale within the member's rank as the member held at
retirement. A beneficiary restored to active service at a salary
less than the average final compensation upon the basis of which the
member was retired at age fifty-five or greater, shall not again
become a member of the retirement system and shall have the member's
retirement allowance suspended while in active service. If the rank
or position held by the retired member is subsequently abolished,
adjustments to the allowable limit on the amount of income which can
be earned in a gainful occupation shall be computed by the board of
trustees as though such rank or position had not been abolished and
salary increases had been granted to such rank or position on the
same basis as increases granted to other ranks and positions in the
department. For purposes of this paragraph, "net retirement
allowance" means the amount determined by subtracting the amount
paid during the previous calendar year by the beneficiary for health
insurance or similar health care coverage for the beneficiary and the
beneficiary's dependents from the amount of the member's retirement
allowance paid for that year pursuant to this chapter. The
beneficiary shall submit sufficient documentation to the system to
permit the system to determine the member's net retirement allowance
for the applicable year.
(2) A beneficiary retired under this lettered paragraph, in order
to be eligible for continued receipt of retirement benefits, shall no
later than May 15 of each year submit to the system a copy of the
beneficiary's federal individual income tax return for the preceding
year. The beneficiary shall also submit, within a reasonable period
of time, any documentation requested by the system that is determined
to be necessary by the system to determine the beneficiary's gross
wages.
(3) Retroactive to July 1, 1976, the limitations on pay of a
member engaged in a gainful occupation who is retired under
accidental disability prescribed in this paragraph shall not apply to
a member who retired before July 1, 1976.
b. Should a disability beneficiary under age fifty-five be
restored to active service at a compensation not less than the
disability beneficiary's average final compensation, the disability
beneficiary's retirement allowance shall cease, the disability
beneficiary shall again become a member and shall contribute
thereafter at the rate established in section 411.8, and former
service on the basis of which the disability beneficiary's service
was computed at the time of retirement shall be restored to full
force and effect and upon subsequent retirement the disability
beneficiary shall be credited with all service as a member and also
with the period of disability retirement.
c. Should a disability beneficiary under age fifty-five be
employed in a public safety occupation, the disability beneficiary's
retirement allowance shall cease. Notwithstanding any provision of
this chapter to the contrary, if a disability beneficiary is employed
in a public safety occupation that would otherwise constitute
membership service, the disability beneficiary shall not become a
member of the system. For purposes of this paragraph, "public
safety occupation" means a peace officer, as defined in section
97A.1; a protection occupation, as defined in section 97B.49B; a
sheriff or deputy sheriff as defined in section 97B.49C; and a police
officer or fire fighter as defined in section 411.1, who was not
restored to active service as provided by this subsection.
8. Ordinary death benefit.
a. Upon the receipt of proof of the death of a member in
service, or a member not in service who has completed four or more
years of service as provided in subsection 1, paragraph "b",
there shall be paid to the person designated by the member to the
system as the member's beneficiary, if the member has had one or more
years of membership service and no pension is payable under
subsection 9, the greater of the following:
(1) An amount equal to fifty percent of the compensation earnable
by the member during the year immediately preceding the member's
death if the member is in service, or an amount equal to fifty
percent of the compensation earned by the member during the member's
last year of service if the member is not in service.
(2) An amount the member would have been entitled to withdraw
pursuant to section 411.23 if the member had terminated service on
the date of the member's death.
b. (1) In lieu of the payment specified in paragraph "a",
a beneficiary meeting the qualifications of paragraph "c" may
elect to receive a monthly pension equal to one-twelfth of forty
percent of the average final compensation of the member, but not less
than twenty percent of the average monthly earnable compensation paid
to an active member of the system, as reported by the actuary. For a
member not in service at the time of death, the pension shall be
reduced as provided in subsection 1, paragraph "b".
(2) For a member not in service at the time of death, the pension
shall be paid commencing when the member would have attained the age
of fifty-five except that if there is a child of the member, the
pension shall be paid commencing with the member's death until the
child of the member no longer meets the definition of child as
provided in section 411.1. The pension shall resume when the member
would have attained the age of fifty-five.
(3) For a member in service at the time of death, the pension
shall be paid commencing with the member's death. In addition to the
pension, there shall also be paid for each child of a member, a
monthly pension equal to six percent of the average monthly earnable
compensation paid to an active member of the system, as reported by
the actuary.
(4) Notwithstanding section 411.6, subsection 8, Code 1985,
effective July 1, 1990, for a member's surviving spouse who, prior to
July 1, 1986, elected to receive pension benefits under this
paragraph, the monthly pension benefit shall be equal to the higher
of one-twelfth of forty percent of the average final compensation of
the member, or the amount the surviving spouse was receiving on July
1, 1990.
c. The pension under paragraph "b" may be selected only
by the following beneficiaries:
(1) The spouse.
(2) If there is no spouse, or if the spouse dies and there is a
child of a member, then the member's child or children, in equal
shares. The pension to each child shall terminate when the child no
longer meets the definition of child in section 411.1.
(3) If there is no surviving spouse or child, then the member's
dependent father or mother, or both, as the system determines, to
continue until death.
d. If the member failed to designate a beneficiary, or if the
beneficiary designated by the member predeceases the member, the
benefits provided in paragraph "a" of this subsection shall be
paid as follows in the following order of priority:
(1) To the member's surviving spouse.
(2) To the member's surviving children, including any adult
children, in equal shares.
(3) To the member's surviving parents, in equal shares.
(4) To the member's estate.
(5) To the member's heirs if the estate is not probated.
9. Accidental death benefit.
a. (1) If, upon the receipt of evidence and proof from the
chief of the police or fire department that the death of a member in
service was the natural and proximate result of an injury or disease
incurred in or aggravated by the actual performance of duty at some
definite time and place, or while acting pursuant to order, outside
of the city by which the member is regularly employed, the system
decides that death was so caused in the performance of duty, there
shall be paid, in lieu of the ordinary death benefit provided in
subsection 8, an accidental death benefit as set forth in this
subsection.
(2) (a) Disease under this subsection shall mean heart disease or
any disease of the lungs or respiratory tract and shall be presumed
to have been contracted while on active duty as a result of strain or
the inhalation of noxious fumes, poison, or gases.
(b) Disease under this subsection shall also mean cancer or
infectious disease and shall be presumed to have been contracted
while on active duty as a result of that duty.
b. (1) If the member's designated beneficiary is the member's
spouse, child, or parent, an accidental death benefit pension equal
to one-half of the average final compensation of the member shall be
paid as follows:
(a) If the member's designated beneficiary is the member's
spouse, then to the member's spouse.
(b) If the member's designated beneficiary is the member's child
or children, then to the child or children in equal shares. The
pension to each child shall terminate when the child no longer meets
the definition of child in section 411.1.
(c) If the member's designated beneficiary is the member's
dependent father or mother, or both, then to the father or mother, or
both, in equal shares, to continue until death.
(2) If the member failed to designate a beneficiary, or if the
beneficiary designated by the member predeceases the member, then an
accidental death benefit pension equal to one-half of the average
final compensation of the member shall be paid as follows:
(a) To the member's spouse.
(b) If there is no spouse, or if the spouse dies and there is a
child of the member, then to the member's child or children in equal
shares. The pension to each child shall terminate when the child no
longer meets the definition of child in section 411.1.
(c) If there is no surviving spouse or child, then to the
member's dependent father or mother, or both, in equal shares, to
continue until death.
c. In addition to the accidental death benefit pension
provided in paragraph "b", there shall also be paid for each
child of a member a monthly pension equal to six percent of the
average monthly earnable compensation paid to an active member of the
system, as reported by the actuary.
d. A person eligible to receive the pension payable under
paragraph "b" of this subsection may elect to receive the benefit
payable under subsection 8, paragraph "a", in lieu of the pension
provided in paragraph "b" of this subsection.
e. If there is no person entitled to the pension payable
under paragraph "b" of this subsection, the death shall be
treated as an ordinary death case and the benefit payable under
subsection 8, paragraph "a", in lieu of the pension provided in
paragraph "a" of this subsection, shall be paid as provided by
that subsection.
10. Pensions offset by compensation benefits. Any amounts
which may be paid or payable by the said cities under the provisions
of any workers' compensation or similar law to a member or to the
dependents of a member on account of any disability or death, shall
be offset against and payable in lieu of any benefits payable under
the provisions of this chapter on account of the same disability or
death. In addition, any amounts payable to a member as unemployment
compensation under the provisions of chapter 96 based on unemployment
from membership service for a member receiving an ordinary disability
benefit or an accidental disability benefit pursuant to this chapter
shall be offset against and payable in lieu of any benefits payable
under the provisions of this chapter for an ordinary disability or an
accidental disability.
11. Pension to spouse and children of deceased pensioned
member. In the event of the death of any member receiving a
retirement allowance under the provisions of subsection 2, 4, or 6 of
this section there shall be paid a pension:
a. To the spouse, equal to one-half the amount received by
the deceased beneficiary, but in no instance less than twenty percent
of the average monthly earnable compensation paid to an active member
of the system, as determined by the actuary, and in addition a
monthly pension equal to the monthly pension payable under subsection
9 of this section for each child; or
b. If the spouse dies either prior or subsequent to the death
of the member, to the guardian of each surviving child, a monthly
pension equal to the monthly pension payable under subsection 9 of
this section for the support of the child.
12. Annual readjustment of pensions. Pensions payable under
this section shall be adjusted as follows:
a. On each July 1, the monthly pensions authorized in this
section payable to members retired prior to that date and to
beneficiaries entitled to a monthly pension prior to that date shall
be adjusted as provided in this subsection. An amount equal to the
sum of one and one-half percent of the monthly pension of each
retired member and beneficiary and the applicable incremental amount
shall be added to the monthly pension of each retired member and
beneficiary. The board of trustees may report to the general
assembly, at the board's discretion, on whether the provisions of
this subsection continue to provide an equitable method for the
annual readjustment of pensions payable under this chapter.
b. For purposes of this subsection, "applicable incremental
amount" means the following amount for members receiving a pension
under subsection 2, 4, or 6 and for beneficiaries receiving a pension
under subsection 11:
(1) Fifteen dollars where the member's retirement date was less
than five years prior to the effective date of the increase.
(2) Twenty dollars where the member's retirement date was at
least five years, but less than ten years, prior to the effective
date of the increase.
(3) Twenty-five dollars where the member's retirement date was at
least ten years, but less than fifteen years, prior to the effective
date of the increase.
(4) Thirty dollars where the member's retirement date was at
least fifteen years, but less than twenty years, prior to the
effective date of the increase.
(5) Thirty-five dollars where the member's retirement date was at
least twenty years prior to the effective date of the increase.
c. For beneficiaries receiving a pension under subsection 8
or 9, the applicable incremental amount shall be determined as set
forth in paragraph "b", except that the date of the member's
death shall be substituted for the member's retirement date.
d. A retired member eligible for benefits under subsection 1
of this section is not eligible for the readjustment of pensions
provided in this subsection unless the member served twenty-two years
and attained the age of fifty-five years prior to the member's
termination of employment.
e. A retired member eligible for benefits under this section
and otherwise eligible for the readjustment of benefits provided in
this subsection is not eligible for the readjustment unless the
member was retired on or before the effective date of the
readjustment.
13. a. Remarriage of surviving spouse. Effective July 1,
1990, for a member who died prior to July 1, 1988, if the member's
surviving spouse remarried prior to July 1, 1988, the remarriage does
not make the spouse ineligible under subsection 8, paragraph "c",
subparagraphs (1) and (2), to receive benefits under subsections 8,
9, 11, and 12.
b. Recomputation of benefit -- surviving spouse. A benefit
payable under this chapter to a surviving spouse and to any surviving
spouse who receives a division of the surviving spouse benefit
pursuant to a marriage decree or marital property order under section
411.13 shall not be recomputed upon the death of any surviving
spouse.
14. Beneficiary designation. A member may designate, in
writing on a form prescribed by the system, any person or persons to
whom the system will pay a death benefit under this section in the
event of the member's death. If the member is married at the time a
designation is signed, a designation of a beneficiary other than the
member's spouse shall not be valid unless the member's spouse
consents in writing to the designation. A designation filed with the
system shall be deemed revoked if, subsequent to the designation, a
new designation is filed with the system, the member marries, or the
member divorces the individual who was the member's named
beneficiary.
15. Line of duty death benefit.
a. If, upon the receipt of evidence and proof from the chief
of the police or fire department that the death of a member in
service was the direct and proximate result of a traumatic personal
injury incurred in the line of duty, the system decides that death
was so caused, there shall be paid, to a person authorized to receive
an accidental death benefit as provided in subsection 9, paragraph
"b", the amount of one hundred thousand dollars, which shall be
payable in a lump sum. However, for purposes of this subsection, a
child who no longer meets the definition of child in section 411.1
shall be eligible to receive a line of duty death benefit pursuant to
this subsection.
b. A line of duty death benefit shall not be payable under
this subsection if any of the following applies:
(1) The death resulted from stress, strain, occupational illness,
or a chronic, progressive, or congenital illness, including but not
limited to a disease of the heart, lungs, or respiratory system,
unless a traumatic personal injury was a substantial contributing
factor to the member's death.
(2) The death was caused by the intentional misconduct of the
member or by the member's intent to cause the member's own death.
(3) The member was voluntarily intoxicated at the time of death.
(4) The member was performing the member's duties in a grossly
negligent manner at the time of death.
(5) An individual who would otherwise be entitled to a benefit
under this subsection was, through the individual's actions, a
substantial contributing factor to the member's death.
(6) The death qualifies for a volunteer emergency services
provider death benefit pursuant to section 100B.31.
16. Ineligibility for disability benefits.
a. A member otherwise eligible to receive a disability
retirement benefit under this chapter shall not be eligible to
receive such a benefit if the system determines that any of the
following conditions for ineligibility applies:
(1) The disability would not exist but for the member's chemical
dependency, as defined in section 125.2, on a schedule I controlled
substance, as defined in section 124.204, or the member's chemical
dependency on a schedule II controlled substance, as defined in
section 124.206, resulting from the inappropriate use of the schedule
II controlled substance.
(2) The disability is a mental disability proximately caused by
appropriate disciplinary actions taken against the member, or by
conflicts with a superior or coworker if the superior or coworker was
acting legally and appropriately toward the member when the conflicts
occurred.
b. A member otherwise eligible to receive a disability
retirement benefit under this chapter, or who is receiving such a
benefit, shall not be eligible to receive such a benefit beginning
with the month following the determination by the system that the
disability would not exist but for the action of the member for which
the member has been convicted of a felony.
c. A member eligible to commence receiving a disability
benefit on or after July 1, 2000, may be ineligible to receive a
disability retirement benefit if the system determines that the
member's alcoholism or drug addiction was a contributing factor
material to the determination of the member's disability. Upon a
determination that the member's alcoholism or drug addiction was a
contributing factor in the member's disability, the system shall
direct the member to undergo substance abuse treatment that the
medical board determines is appropriate to treat the member's
alcoholism or drug addiction. After the end of a twenty-four-month
period following the member's first month of entitlement to a
disability benefit, the system shall reevaluate the member's
disability. If the system determines that the member failed to
comply with the treatment program prescribed by this paragraph and
that the member would not be disabled but for the member's alcoholism
or drug addiction, the member's entitlement to a disability benefit
under this chapter shall terminate effective the first day of the
first month following the month the member is notified of the
system's determination.
17. Limitations on benefits -- prisoners.
a. An individual who is otherwise entitled to a retirement
allowance under this chapter shall not receive a retirement allowance
for any month during which both of the following conditions exist:
(1) The individual is confined in a jail, prison, or correctional
facility pursuant to the individual's conviction of a felony.
(2) The individual has a spouse, or a child or children, as
defined in section 411.1.
b. The amount of the retirement allowance not paid to the
individual under paragraph "a" shall be paid in the following
order of priority:
(1) To the individual's spouse, if any.
(2) If there is no spouse, then to the individual's child or
children, as defined in section 411.1.
c. This subsection shall not be construed in a manner that
impairs the rights of any individual under a marital property,
spousal support, or child support order. In addition, this
subsection shall not be construed to impair the statutory rights of a
governmental entity, including but not limited to the right of a
governmental entity to collect an amount for deposit in the victim
compensation fund established in chapter 915. Section History: Early Form
[C35, § 6326-f6; C39, § 6326.08; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.6; 82 Acts, ch 1261, § 30--39, 47] Section History: Recent Form
84 Acts, ch 1285, § 23; 86 Acts, ch 1203, § 3; 86 Acts, ch 1243, §
27, 28; 88 Acts, ch 1242, § 55--59; 90 Acts, ch 1240, § 53--66; 91
Acts, ch 41, § 3; 92 Acts, ch 1201, § 64--68; 94 Acts, ch 1183,
§69--72; 96 Acts, ch 1178, § 3, 4; 96 Acts, ch 1187, § 101--103, 110;
98 Acts, ch 1183, §86--92, 99; 2000 Acts, ch 1077, §95--107, 110;
2002 Acts, ch 1135, §42--51; 2004 Acts, ch 1103, § 57, 65, 66; 2006
Acts, ch 1092, §13--17; 2006 Acts, ch 1103, §4; 2009 Acts, ch 71, §1,
2; 2009 Acts, ch 99, §2, 3
Referred to in § 411.3, 411.4, 411.5, 411.6A, 411.6C, 411.15,
411.21, 411.22
Workers' compensation, chapter 85 Footnotes
Reporting of costs of cancer and infectious disease benefits
required by October 1, 2013; 2009 Acts, ch 99, §5
411.6A OPTIONAL RETIREMENT BENEFITS.
1. In lieu of the payment of a service retirement allowance under
section 411.6, subsection 2, and the payment of a pension to the
spouse of a deceased pensioned member under section 411.6, subsection
11, a member may select an option provided under this section. The
board of trustees shall adopt rules under section 411.5, subsection
3, providing the optional forms of payment that may be selected by
the member. The optional forms of payment may provide adjustments to
the amount of the retirement allowance paid to the member, may alter
the pension amount and period of payment to the member's spouse after
the death of the member, and may provide for payments to a designated
recipient other than the member's spouse for a designated period of
time or an unlimited period of time.
2. Prior to the member's retirement and as a part of the
application for a service retirement allowance, the member shall
elect, in writing, either the benefits provided under section 411.6,
subsections 2 and 11, or one of the optional forms adopted by the
board of trustees. If the member is married at the time of
application and the member elects an optional form, the member's
spouse must consent in writing to the optional form selected and to
the receipt of payments to a designated recipient, if applicable.
Upon acceptance by a member of an initial retirement benefit paid in
accordance with the election under this section, the election of the
member is irrevocable.
3. The optional forms of payment determined by the board of
trustees under this section, shall be the actuarial equivalent of the
amount of retirement benefits payable to the member and the member's
spouse pursuant to section 411.6, subsections 2 and 11. The
actuarial equivalent shall be based upon the actuarial assumptions
adopted for this purpose pursuant to section 411.5. Election of an
optional form adopted by the board of trustees shall not affect the
benefits, if any, payable to the member's child or children pursuant
to section 411.6, subsection 11.
4. Optional benefits shall be adjusted annually in a manner
consistent with that provided in section 411.6, subsection 12.
However, if the member has selected a designated recipient other than
the member's spouse, the designated recipient shall be deemed to be
the member's surviving spouse for the purpose of calculating the
annual adjustment in the manner provided in section 411.6, subsection
12. Section History: Recent Form
90 Acts, ch 1240, § 67; 92 Acts, ch 1201, § 69; 93 Acts, ch 44, §
18
Referred to in § 411.6C
411.6B ROLLOVERS OF MEMBERS' ACCOUNTS.
1. As used in this section, unless the context otherwise
requires, and to the extent permitted by the internal revenue
service:
a. "Direct rollover" means a payment by the system to the
eligible retirement plan specified by the member or the member's
surviving spouse, or the member's alternate payee under a marital
property order who is the member's spouse or former spouse.
b. "Eligible retirement plan" means any of the following that
accepts an eligible rollover distribution from a member, a member's
surviving spouse, or a member's alternate payee:
(1) An individual retirement account in accordance with section
408(a) of the federal Internal Revenue Code.
(2) An individual retirement annuity in accordance with section
408(b) of the federal Internal Revenue Code.
In addition, an "eligible retirement plan" includes an annuity
plan in accordance with section 403(a) of the federal Internal
Revenue Code, or a qualified trust in accordance with section 401(a)
of the federal Internal Revenue Code, that accepts an eligible
rollover distribution from a member. Effective January 1, 2002, the
term "eligible retirement plan" also includes an annuity contract
described in section 403(b) of the federal Internal Revenue Code, and
an eligible plan under section 457(b) of the federal Internal Revenue
Code which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political
subdivision of a state that chooses to separately account for amounts
rolled over into such eligible retirement plan from the system.
c. "Eligible rollover distribution" means all or any portion
of a member's account, except that an eligible rollover distribution
does not include any of the following:
(1) A distribution that is one of a series of substantially equal
periodic payments, which occur annually or more frequently, made for
the life or life expectancy of the distributee or the joint lives or
joint life expectancies of the distributee and the distributee's
designated beneficiary, or made for a specified period of ten years
or more.
(2) A distribution to the extent that the distribution is
required pursuant to section 401(a)(9) of the federal Internal
Revenue Code.
(3) The portion of any distribution that is not includible in the
gross income of the distributee, determined without regard to the
exclusion for net unrealized appreciation with respect to employer
securities. Provided, however, that effective January 1, 2002, such
distributions may be directly rolled over to an individual retirement
account described in federal Internal Revenue Code section 408(a) or
408(b), a qualified defined contribution plan described in federal
Internal Revenue Code section 401(a), or a qualified annuity plan
described in federal Internal Revenue Code section 403(a), if such
plan agrees to separately account for the after-tax amount so rolled
over.
(4) A distribution of less than two hundred dollars of taxable
income.
2. Effective January 1, 1993, a member or a member's surviving
spouse may elect, at the time and in the manner prescribed in rules
adopted by the board of trustees, to have the system pay all or a
portion of an eligible rollover distribution directly to an eligible
retirement plan, specified by the member or the member's surviving
spouse, in a direct rollover. If a member or a member's surviving
spouse elects a partial direct rollover, the amount of funds elected
for the partial direct rollover must equal or exceed five hundred
dollars. Section History: Recent Form
94 Acts, ch 1183, §73; 2004 Acts, ch 1103, §67, 73
Referred to in § 411.6C, 411.23
411.6C DEFERRED RETIREMENT OPTION PLAN.
1. For purposes of this section, unless the context otherwise
requires:
a. "Applicable percentage" means that percentage, not greater
than one hundred percentage points, equal to fifty-two percentage
points plus two percentage points for each month for the period
between the eligible member's plan eligibility month and the month
the eligible member commences membership in the plan.
b. "Drop benefit" means, for a participant, an amount
credited to the participant's account each applicable month equal to
the member's applicable percentage multiplied by the member's
participant retirement amount.
c. "Eligible member" means a member who has attained
fifty-five years of age with at least twenty-two years of membership
service.
d. "Participant account" means an administrative record
maintained by the system reflecting the participant's accumulated
drop benefit.
e. "Participant retirement amount" means the amount equal to
the monthly retirement allowance the eligible member would have
received under section 411.6 if the member retired on the date the
eligible member commenced participation in the plan, based on
earnings through the previous full quarter of earnable compensation
earned by the member.
f. "Plan" means the deferred retirement option plan
established by this section.
g. "Plan eligibility month" means the first full calendar
month in which the participant is an eligible member.
2. a. An eligible member may elect to participate in the
deferred retirement option plan as provided in this section. A
decision by an eligible member to participate in the plan is
irrevocable. Upon commencing membership in the plan, the member
shall remain an active member of the system and shall have credited
to a participant account on behalf of the member from the fire and
police retirement fund for each month the member participates in the
plan the member's drop benefit. The amounts credited shall be
invested by the system in risk-free assets of a short-term nature and
interest and earnings shall not be credited to the member's
participant account but shall remain with the fire and police
retirement fund established in section 411.8. In addition, the
annual readjustment of pensions under section 411.6, subsection 12,
shall not apply to a participant's drop benefit or to amounts
credited to the member's participant account.
b. Upon termination of an eligible member's participation in
the plan, the eligible member shall be deemed to be retired under the
system as of that date for purposes of the system and shall begin
receiving a retirement allowance equal to the member's participant
retirement amount or such optional retirement benefits, based upon
that amount, pursuant to section 411.6A. In addition, the eligible
member shall receive the moneys credited to the member's participant
account while participating in the plan. The eligible member shall
select, upon written application to the system, whether to receive
the amount in the member's participant account in the form of a lump
sum distribution or as a rollover to an eligible retirement plan as
defined in section 411.6B.
c. If an eligible member terminates participation in the plan
prior to the date selected by the member upon commencing membership
in the plan and the termination is not due to the death or disability
of the member under this chapter, then the system shall assess a
twenty-five percent penalty on the amount credited to the member's
participant account prior to distributing the amount to the member.
The penalty amount shall be transferred to and remain with the fire
and police retirement fund.
3. To participate in the plan, an eligible member shall make
written application to the system. The application shall include the
following:
a. The month the eligible member intends to commence
participation in the plan.
b. The eligible member's selection of a plan termination
date. The plan termination date shall be either three, four, or five
years after the date the eligible member commences membership in the
plan. However, for the two-year period beginning with the first of
the month following the implementation date of this section, an
eligible member between sixty-two and sixty-four years of age may
also select a plan termination date that is one or two years after
the date the eligible member commences membership in the plan.
4. Participation in the plan by an eligible member does not
guarantee continued employment. Contributions required from members
and participating cities shall continue based on the earnable
compensation of an eligible member participating in the plan.
However, contributions made while an eligible member participates in
the plan shall remain with the retirement fund and shall not be
subject to a withdrawal of contributions under section 411.23.
5. The system's actuary, while making the annual valuation of the
assets and liabilities of the fire and police retirement fund, shall
determine whether establishment and operation of the plan created in
this section has resulted in an increased actuarial cost to the
system. If the actuary determines that the plan has resulted in an
increased actuarial cost to the system, then, notwithstanding any
provision of section 411.8 to the contrary, the system shall increase
the members' contribution rate as necessary to cover the increased
cost of the plan created in this section.
6. This section shall not be implemented until the system has
received a favorable ruling from the internal revenue service
regarding the plan as provided in this section. Upon receiving the
favorable ruling, the board shall establish the implementation date
of the plan. Section History: Recent Form
2006 Acts, ch 1073, §1
411.7 MANAGEMENT OF FUND.
1. The board of trustees is the trustee of the fire and police
retirement fund created in section 411.8 and shall annually establish
an investment policy to govern the investment and reinvestment of the
moneys in the fund, subject to the terms, conditions, limitations,
and restrictions imposed by subsection 2 and chapter 12F. Subject to
like terms, conditions, limitations, and restrictions the system has
full power to hold, purchase, sell, assign, transfer, or dispose of
any of the securities and investments in which the fund has been
invested, as well as of the proceeds of the investments and any
moneys belonging to the fund.
2. The secretary of the board of trustees shall invest, in
accordance with the investment policy established by the board of
trustees, the portion of the fund established in section 411.8 which
in the judgment of the board is not needed for current payment of
benefits under this chapter in investments authorized in section
97B.7A for moneys in the Iowa public employees' retirement fund.
3. The secretary of the board of trustees is the custodian of the
fire and police retirement fund. All payments from the fund shall be
made by the secretary only upon vouchers signed by two persons
designated by the board of trustees. The system may select master
custodian banks to provide custody of the assets of the retirement
system.
4. A member or employee of the board of trustees shall not have
any direct interest in the gains or profits of any investment made by
the board of trustees, other than as a member of the system. A
trustee shall not receive any pay or emolument for the trustee's
services except as secretary. A member or employee of the board of
trustees shall not directly or indirectly for the trustee or employee
or as an agent in any manner use the assets of the retirement system
except to make current and necessary payments as authorized by the
board of trustees, nor shall any trustee or employee of the system
become an endorser or surety or become in any manner an obligor for
moneys loaned by or borrowed from the system.
5. Except as otherwise provided in section 411.36, a member,
employee, and the secretary of the board of trustees shall not be
personally liable for a loss to the fire and police retirement fund,
the loss shall be assessed against the fire and police retirement
fund, and moneys are hereby appropriated from the fund in an amount
sufficient to cover the losses. Section History: Early Form
[C35, § 6326-f7; C39, § 6326.09; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.7; 82 Acts, ch 1261, § 40] Section History: Recent Form
86 Acts, ch 1203, § 4; 90 Acts, ch 1240, §68; 91 Acts, ch 52, §1;
2001 Acts, ch 68, §17, 24; 2007 Acts, ch 39, §12
Referred to in § 411.36
411.8 METHOD OF FINANCING.
All the assets of the retirement system created and established by
this chapter shall be credited to the fire and police retirement
fund, which is hereby created. As used in this section, "fund"
means the fire and police retirement fund.
1. All moneys for the payment of all pensions and other benefits
payable from contributions made by the participating cities, the
state, and the members shall be accumulated in the fund. The refunds
and benefits for all members and beneficiaries shall be payable from
the fund. Contributions to and payments from the fund shall be as
follows:
a. On account of each member there shall be paid annually
into the fund by the participating cities an amount equal to a
certain percentage of the earnable compensation of the member to be
known as the "normal contribution". The rate percent of such
contribution shall be fixed on the basis of the liabilities of the
retirement system as shown by annual actuarial valuations.
b. (1) On the basis of the actuarial methods and assumptions,
rate of interest, and of the mortality, interest and other tables
adopted by the system, the actuary engaged by the system to make each
valuation required by this chapter pursuant to the requirements of
section 411.5, shall immediately after making such valuation,
determine the normal contribution rate. Except as otherwise provided
in this lettered paragraph, the "normal contribution rate" shall
be the rate percent of the earnable compensation of all members equal
to the rate required by the system to discharge its liabilities,
stated as a percentage of the earnable compensation of all members,
and reduced by the employee contribution rate provided in paragraph
"f" of this subsection and the contribution rate representing the
state appropriation made as provided in section 411.20. However, the
normal contribution rate shall not be less than seventeen percent.
(2) The normal contribution rate shall be determined by the
actuary after each valuation.
c. The total amount payable in each year to the fund shall be
not less than the rate percent known as the normal contribution rate
of the total compensation earnable by all members during the year,
but the aggregate payment by the participating cities must be
sufficient when combined with the amount in the fund to provide the
pensions and other benefits payable out of the fund during the then
current year.
d. All lump-sum death benefits on account of death in active
service payable from contributions of the said cities shall be paid
from the fund.
e. Reserved.
f. Except as otherwise provided in paragraph "h":
(1) An amount equal to three and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the fund for the fiscal year beginning July 1, 1989.
(2) An amount equal to four and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the fund for the fiscal year beginning July 1, 1990.
(3) An amount equal to five and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the fund for the fiscal year beginning July 1, 1991.
(4) An amount equal to six and one-tenth percent of each member's
compensation from the earnable compensation of the member shall be
paid to the fund for the fiscal year beginning July 1, 1992.
(5) An amount equal to seven and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the fund for the fiscal year beginning July 1, 1993.
(6) An amount equal to eight and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the fund for the fiscal period beginning July 1,
1994, through December 31, 1994, and an amount equal to eight and
thirty-five hundredths percent of each member's compensation from the
earnable compensation of the member shall be paid to the fund for the
fiscal period beginning January 1, 1995, through June 30, 1995.
(7) An amount equal to nine and thirty-five hundredths percent of
each member's compensation from the earnable compensation of the
member shall be paid to the fund for the fiscal year beginning July
1, 1995.
(8) Beginning July 1, 1996, and each fiscal year thereafter, an
amount equal to the member's contribution rate times each member's
compensation shall be paid to the fund from the earnable compensation
of the member. For the purposes of this subparagraph, the member's
contribution rate shall be nine and thirty-five hundredths percent
or, beginning July 1, 2009, nine and four-tenths percent. However,
the system shall increase the member's contribution rate as necessary
to cover any increase in cost to the system resulting from statutory
changes which are enacted by any session of the general assembly
meeting after January 1, 1991, if the increase cannot be absorbed
within the contribution rates otherwise established pursuant to this
paragraph, but subject to a maximum employee contribution rate of
eleven and three-tenths percent or, beginning July 1, 2009, eleven
and thirty-five hundredths percent. The contribution rate increases
specified in 1994 Iowa Acts, ch. 1183, pursuant to this chapter and
chapter 97A shall be the only member contribution rate increases for
these systems resulting from the statutory changes enacted in 1994
Iowa Acts, ch. 1183, and shall apply only to the fiscal periods
specified in 1994 Iowa Acts, ch. 1183. After the employee
contribution reaches eleven and three-tenths percent or eleven and
thirty-five hundredths percent, as applicable, sixty percent of the
additional cost of such statutory changes shall be paid by employers
under paragraph "c" and forty percent of the additional cost
shall be paid by employees under this paragraph.
g. The system shall certify to the superintendent of public
safety as defined in this chapter and the superintendent of public
safety as defined in this chapter shall cause to be deducted from the
earnable compensation of each member the contribution required under
this subsection and shall forward the contributions to the system for
recording and for deposit in the fund.
The deductions provided for under this paragraph shall be made
notwithstanding that the minimum compensation provided by law for any
member is reduced. Every member is deemed to consent to the
deductions made under this paragraph.
h. Notwithstanding the provisions of paragraph "f", the
following transition percentages apply to members' contributions as
specified:
(1) For members who on July 1, 1990, have attained the age of
forty-nine years or more, an amount equal to nine and one-tenth
percent of each member's compensation from the earnable compensation
of the member shall be paid to the fund for the fiscal period
beginning July 1, 1990, through October 15, 1992, and commencing
October 16, 1992, and for each subsequent fiscal period, the rates
specified in paragraph "f", subparagraphs (4) through (8), shall
apply.
(2) For members who on July 1, 1990, have attained the age of
forty-eight years but have not attained the age of forty-nine years,
an amount equal to eight and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, and an amount equal to nine and
one-tenth percent shall be paid for the fiscal period beginning July
1, 1991, through October 15, 1992, and commencing October 16, 1992,
and for each subsequent fiscal period, the rates specified in
paragraph "f", subparagraphs (4) through (8), shall apply.
(3) For members who on July 1, 1990, have attained the age of
forty-seven years but have not attained the age of forty-eight years,
an amount equal to seven and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to eight and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to nine and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "f", subparagraphs (4)
through (8), shall apply.
(4) For members who on July 1, 1990, have attained the age of
forty-six years but have not attained the age of forty-seven years,
an amount equal to six and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to seven and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, an amount equal to eight and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "f", subparagraphs (4)
through (8), shall apply.
(5) For members who on July 1, 1990, have attained the age of
forty-five years but have not attained the age of forty-six years, an
amount equal to five and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to six and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to seven and one-tenth percent shall be
paid for the fiscal period beginning July 1, 1992, through October
15, 1992. Commencing October 16, 1992, and for each subsequent
fiscal period, the rates specified in paragraph "f",
subparagraphs (4) through (8), shall apply.
i. (1) Notwithstanding paragraph "g" or other provisions
of this chapter, beginning January 1, 1995, for federal income tax
purposes, and beginning January 1, 1999, for state income tax
purposes, member contributions required under paragraph "f" or
"h" which are picked up by the city shall be considered employer
contributions for federal and state income tax purposes, and each
city shall pick up the member contributions to be made under
paragraph "f" or "h" by its employees. Each city shall pick
up these contributions by reducing the salary of each of its
employees covered by this chapter by the amount which each employee
is required to contribute under paragraph "f" or "h" and
shall pay the amount picked up in lieu of the member contributions to
the board of trustees for recording and deposit in the fund.
(2) Member contributions picked up by each city under
subparagraph (1) shall be treated as employer contributions for
federal and state income tax purposes only and for all other purposes
of this chapter shall be treated as employee contributions and deemed
part of the employee's earnable compensation or salary.
2. Annually the board of trustees shall budget the amount of
money necessary during the ensuing year to provide for the expense of
operation of the retirement system. The operating expenses shall be
financed from the income derived from the system's investments.
Investment management expenses shall be charged directly to the
investment income of the system. Section History: Early Form
[C35, § 6326-f8; C39, § 6326.10; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.8; 82 Acts, ch 1261, § 41] Section History: Recent Form
90 Acts, ch 1240, § 69--77; 92 Acts, ch 1201, § 70; 94 Acts, ch
1183, §74--76; 98 Acts, ch 1174, §4, 6; 2008 Acts, ch 1171, §51; 2009
Acts, ch 41, §122; 2009 Acts, ch 99, §4
Referred to in § 384.6, 411.5, 411.6, 411.6C, 411.7, 411.9,
411.11, 411.23, 411.30, 411.36, 411.38, 411.40
411.9 MILITARY SERVICE EXCEPTIONS.
1. A member who is absent while serving in the armed services of
the United States or its allies and is discharged or separated from
the armed services under honorable conditions shall have the period
or periods of absence while serving in the armed services, not in
excess of four years unless any period in excess of four years is at
the request and for the convenience of the federal government,
included as part of the member's period of service in the department.
The member shall not continue the contributions required of the
member under section 411.8 during the period of military service, if
the member, within one year after the member has been discharged or
separated under honorable conditions from military service, returns
and resumes duties in the department, and if the member is declared
physically capable of resuming duties upon examination by the medical
board. A period of absence may exceed four years at the request and
for the convenience of the federal government.
2. Notwithstanding any provisions of this chapter to the
contrary, contributions, benefits, and service credit with respect to
qualified military service shall be provided in accordance with
section 414(u) of the federal Internal Revenue Code. Section History: Early Form
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 411.9] Section History: Recent Form
86 Acts, ch 1243, § 29; 88 Acts, ch 1242, §60; 98 Acts, ch 1183,
§93
411.10 PURCHASE OF SERVICE CREDIT FOR MILITARY
SERVICE.
1. An active member of the system who has been a member of the
retirement system five or more years may elect to purchase up to five
years of service credit for military service, other than military
service required to be recognized under Internal Revenue Code §
414(u) or under the federal Uniformed Services Employment and
Reemployment Rights Act, that will be recognized by the retirement
system for purposes of calculating a member's benefit, pursuant to
Internal Revenue Code § 415(n) and the requirements of this section.
2. a. A member seeking to purchase service credit pursuant to
this section shall file a written application with the system
requesting an actuarial determination of the cost of a purchase of
service credit. Upon receipt of the cost estimate for the purchase
of service from the system, the member may make contributions to the
system in an amount equal to the actuarial cost of the service credit
purchase.
b. For purposes of this subsection, the actuarial cost of the
service credit purchase is an amount determined by the system in
accordance with actuarial tables, as reported to the system by the
system's actuary, which reflects the actuarial cost necessary to fund
an increased retirement allowance resulting from the purchase of
service credit.
3. The system shall ensure that the member, in exercising an
option provided in this section, does not exceed the amount of annual
additions to a member's account permitted pursuant to § 415 of the
federal Internal Revenue Code.
4. The board of trustees shall adopt rules providing for the
implementation and administration of this section. Section History: Recent Form
2008 Acts, ch 1171, §52
411.10A PURCHASE OF SERVICE CREDIT FOR PRIOR
SERVICE.
1. An active member of the system who has been a member of the
retirement system five or more years and who received a refund of the
member's contributions for a prior period of service under the system
may elect to purchase up to five years of service credit for that
prior period of service, that will be recognized by the retirement
system for purposes of calculating a member's benefit, pursuant to
Internal Revenue Code section 415(n) and the requirements of this
section.
2. a. A member seeking to purchase service credit pursuant to
this section shall file a written application with the system
requesting an actuarial determination of the cost of a purchase of
service credit. Upon receipt of the cost estimate for the purchase
of service from the system, the member may make contributions to the
system in an amount equal to the actuarial cost of the service credit
purchase.
b. For purposes of this subsection, the actuarial cost of the
service credit purchase is an amount determined by the system in
accordance with actuarial tables, as reported to the system by the
system's actuary, which reflects the actuarial cost necessary to fund
an increased retirement allowance resulting from the purchase of
service credit.
3. The system shall ensure that the member, in exercising an
option provided in this section, does not exceed the amount of annual
additions to a member's account permitted pursuant to section 415 of
the federal Internal Revenue Code.
4. The board of trustees shall adopt rules providing for the
implementation and administration of this section. Section History: Recent Form
2009 Acts, ch 59, §1
411.11 CONTRIBUTIONS BY THE CITY.
1. On or before January 1 of each year the system shall certify
to the superintendent of public safety of each participating city the
amounts which will become due and payable during the year next
following to the fire and police retirement fund. The amounts so
certified shall be included by the superintendent of public safety in
the annual budget estimate. The amounts so certified shall be
appropriated by the respective cities and transferred to the
retirement system for the ensuing year. The cities shall annually
levy a tax sufficient in amount to cover the appropriations.
2. Amounts paid by a city to a member as back pay that would have
constituted earnable compensation if paid when earned shall be
allocated by the system as earnable compensation to the period or
periods for which paid and employer and employee contributions shall
be paid to the system for the amounts. The contribution rate to be
applied to such amounts shall be determined pursuant to section 411.8
based on the rates in effect for the period or periods to which the
amounts are allocated. Interest on the contributions required to be
paid shall be calculated pursuant to this section as if the
contributions were unpaid as of the date the contributions would have
been due if the back pay had been paid to the member during the
period in which it was due. The requirements of this subsection
apply regardless of whether the back pay is made under a covenant not
to sue, compromise settlement, denial of liability, or other
agreement between the member and the employer.
3. Contributions unpaid on the date on which they are due and
payable as prescribed by the system shall bear interest at the
greater of the interest rate assumption adopted by the board of
trustees or the rate of interest on the short-term investment fund
account of the system's custodial bank for the period the
contributions remain unpaid. Interest due pursuant to this section
may be waived by the system pursuant to rules adopted by the board.
Interest collected pursuant to this section shall be paid into the
retirement fund created in section 411.8.
4. If an employer fails to pay contributions or interest as
required by this chapter after receiving thirty days' notice of the
employer's obligation, the system may maintain a civil action to
collect the unpaid contributions and interest from the employer,
which action shall be heard as expeditiously as possible. If the
system prevails in the civil action to recover unpaid contributions
and interest, the court shall require the employer to pay the costs
of the action. Section History: Early Form
[C35, § 6326-f9; C39, § 6326.11; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.11; 82 Acts, ch 1261, § 42] Section History: Recent Form
90 Acts, ch 1240, §78; 2000 Acts, ch 1077, §108, 110
411.12 CITY OBLIGATIONS.
The creation and maintenance of moneys in the fire and police
retirement fund as provided for the payment of all pensions and other
benefits granted under the provisions of this chapter and all
expenses in connection with the administration and operation of the
retirement system are hereby made direct liability obligations of the
cities participating in the retirement system. Section History: Early Form
[C35, § 6326-f10; C39, § 6326.12; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.12] Section History: Recent Form
90 Acts, ch 1240, §79
411.13 EXEMPTION FROM EXECUTION AND OTHER PROCESS OR
ASSIGNMENT -- EXCEPTIONS.
The right of any person to a pension, annuity, or retirement
allowance, to the return of contributions, the pension, annuity, or
retirement allowance itself, any optional benefit or death benefit,
any other right accrued or accruing to any person under this chapter,
and the moneys in the fire and police retirement fund created under
this chapter, are not subject to execution, garnishment, attachment,
or any other process whatsoever, and are unassignable except for the
purposes of enforcing child, spousal, or medical support obligations
or marital property orders, or as otherwise specifically provided in
this chapter. For the purposes of enforcing child, spousal, or
medical support obligations, the garnishment or attachment of or the
execution against compensation due a person under this chapter shall
not exceed the amount specified in 15 U.S.C. § 1673(b). Section History: Early Form
[C35, § 6326-f11; C39, § 6326.13; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.13] Section History: Recent Form
89 Acts, ch 228, §3; 90 Acts, ch 1240, §80; 96 Acts, ch 1187, §
104
Referred to in § 411.6
411.14 FRAUDULENT PRACTICE -- CORRECTION OF ERRORS.
A person who knowingly makes a false statement or falsifies or
permits to be falsified any record or records of the retirement
system in an attempt to defraud the system as a result of such act,
is guilty of a fraudulent practice. If any change or error in
records results in a member or beneficiary receiving from the
retirement system more or less than the member or beneficiary would
have been entitled to receive had the records been correct, the
system shall correct the error, and, as far as practicable, shall
adjust the payments in such a manner that the actuarial equivalent of
the benefit to which the member or beneficiary was correctly
entitled, shall be paid. Section History: Early Form
[C35, § 6326-f12; C39, § 6326.14; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 411.14] Section History: Recent Form
90 Acts, ch 1240, §81
See § 714.8
411.15 HOSPITALIZATION AND MEDICAL ATTENTION.
Cities shall provide hospital, nursing, and medical attention for
the members of the police and fire departments of the cities, when
injured while in the performance of their duties as members of such
department, and shall continue to provide hospital, nursing, and
medical attention for injuries or diseases incurred while in the
performance of their duties for members receiving a retirement
allowance under section 411.6, subsection 6. Cities may fund the
cost of the hospital, nursing, and medical attention required by this
section through the purchase of insurance, by self-insuring the
obligation, or through payment of moneys into a local government risk
pool established for the purpose of covering the costs associated
with the requirements of this section. However, the cost of the
hospital, nursing, and medical attention required by this section
shall not be funded through an employee-paid health insurance policy.
The cost of the hospital, nursing, and medical attention required by
this section shall be paid from moneys held in a trust and agency
fund established pursuant to section 384.6, or out of the
appropriation for the department to which the injured person belongs
or belonged; provided that any amounts received by the injured person
from any other source for such specific purposes, shall be deducted
from the amount paid by the city under the provisions of this
section. Section History: Early Form
[C66, 71, 73, 75, 77, 79, 81, § 411.15] Section History: Recent Form
98 Acts, ch 1183, §94; 2008 Acts, ch 1171, §53
Referred to in § 411.22
411.16 HOURS OF SERVICE.
Fire fighters employed in the fire department of cities of ten
thousand population or more, or under civil service, shall not be
required to remain on duty for periods of time which will aggregate
in each month more than an average of fifty-six hours per week and no
single period of time, or shift, shall exceed twenty-four hours in
length, provided that in cases of serious emergencies such fire
fighters may be required to remain on duty until such emergency has
passed, when so ordered by the chief of the department or person
acting in the chief's place. Fire fighters called back to duty under
this provision shall be duly compensated in accordance with their
regular hourly wage. Section History: Early Form
[C66, 71, 73, 75, 77, 79, 81, § 411.16]
Referred to in § 411.17
See also § 410.19
411.17 PROVISIONS NOT APPLICABLE.
The provisions of section 411.16 shall not apply to the chief, or
other persons when in command of a fire department, nor to fire
fighters who are employed subject to call only. Section History: Early Form
[C66, 71, 73, 75, 77, 79, 81, § 411.17]
411.18 AND 411.19 Reserved.
411.20 STATE APPROPRIATION.
There is appropriated from the general fund of the state for each
fiscal year an amount necessary to be distributed to the statewide
fire and police retirement system, or to the cities participating in
the system, to finance the cost of benefits provided in this chapter
by amendments of the Acts of the Sixty-sixth General Assembly,
chapter 1089. The method of distribution shall be determined by the
board of trustees based on information provided by the actuary of the
statewide retirement system.
Moneys appropriated by the state shall not be used to reduce the
normal rate of contribution of any city below seventeen percent. Section History: Early Form
[C77, 79, 81, § 411.20; 82 Acts, ch 1261, § 44] Section History: Recent Form
86 Acts, ch 1244, § 45; 88 Acts, ch 1250, §13; 90 Acts, ch 1240,
§82
Referred to in § 8.59, 411.8, 411.37, 411.38
Appropriation limited for fiscal years beginning on or after July
1, 1993; see § 8.59
411.21 VESTED AND RETIRED MEMBERS BEFORE JULY 1, 1979
-- ANNUITY OR WITHDRAWAL OF CONTRIBUTIONS.
1. Members who became vested and terminated service prior to July
1, 1979, and members receiving an annuity from accumulated
contributions made prior to July 1, 1979, shall continue to receive
the benefits the member was entitled to under the provisions of this
chapter, as it was effective on the date of the member's retirement
or vested termination.
2. For the purposes of this section:
a. "Accumulated contributions" means the sum of all
amounts deducted from the compensation of a member and credited to
the member's individual account in the annuity savings fund together
with regular interest thereon as provided in this subsection.
Accumulated contributions do not include any amount deducted from the
compensation of a member and credited to the pension accumulation
fund.
b. "Annuity" means annual payments for life derived from
the accumulated contributions of a member. All annuities shall be
payable in monthly installments.
c. "Annuity reserve" shall mean the present value of all
payments to be made on account of an annuity, or benefit in lieu of
an annuity, granted under the provisions of this chapter, upon the
basis of such mortality tables as shall be adopted by the respective
boards of trustees, and regular interest.
d. "Annuity savings fund" means the account maintained by
the respective board of trustees in which the accumulated
contributions of the members were deposited prior to July 1, 1979, to
provide for their annuities.
e. "Annuity reserve fund" means the account maintained by
the respective boards of trustees from which shall be paid all
annuities and all benefits in lieu of annuities payable as provided
in this chapter as this chapter was effective on June 30, 1979.
f. "Regular interest" means interest at the rate of four
percent per annum, compounded annually and credited to the member's
account as of the date of the member's retirement or termination from
employment.
g. "Member who became vested" and "vested member"
mean a member who has been a member of the retirement system four or
more years and is entitled to benefits under this chapter.
3. Beginning July 1, 1979, the respective boards of trustees
shall maintain and invest funds in the annuity reserve fund and the
annuity savings fund contributed by members prior to July 1, 1979.
Members receiving an annuity as a portion of their retirement or
disability benefits on June 30, 1979, shall continue to receive such
annuity from the annuity reserve fund maintained by the respective
board of trustees. Members receiving an annuity, if re-employed
under service covered by this chapter, shall cease to receive
retirement benefits.
4. The accumulated contributions of a member withdrawn by the
member or paid to the member's estate or designated beneficiary in
the event of the member's death shall be paid from the annuity
savings fund account. Upon the retirement of a member, the member's
accumulated contributions shall be transferred from the annuity
savings fund to the annuity reserve fund.
5. A member of the retirement system prior to July 1, 1979 with
fifteen or more years of service whose employment was terminated
prior to retirement, other than by death or disability, is entitled
to receipt of the member's accumulated contributions upon retirement
together with other retirement benefits provided in the law on the
date of the member's retirement.
6. Any member in service prior to July 1, 1979 may at the time of
the member's retirement withdraw the member's accumulated
contributions made before July 1, 1979 or receive an annuity which
shall be the actuarial equivalent of the member's accumulated
contributions at the time of the member's retirement.
7. Notwithstanding subsections 1, 3, 4, 5 and 6 of this section,
beginning January 1, 1981, an active or vested member may request in
writing and receive from the board of trustees, the member's
accumulated contributions from the annuity savings fund and remain
eligible to receive benefits under section 411.6. However, a member
with fifteen or more years of service prior to July 1, 1979, is not
eligible for a service retirement allowance under section 411.6 if
the member withdrew the member's accumulated contributions from the
annuity savings fund after July 1, 1972 but prior to July 1, 1979,
except as provided in section 411.4. Accumulated contributions shall
be paid according to the following schedule:
a. During the period beginning January 1, 1981 and ending
December 31, 1982, any member who has completed twenty or more years
of service.
b. During the period beginning January 1, 1983 and ending
December 31, 1984, any member who has completed fifteen or more years
of service.
c. During the period beginning January 1, 1985 and ending
December 31, 1986, any member who has completed ten or more years of
service.
d. During the period beginning January 1, 1987 and ending
December 31, 1988, any member who has completed five or more years of
service.
The board may return accumulated contributions from the annuity
savings fund to an active or vested member prior to the dates listed
in the schedule established in this subsection, except that the board
shall not liquidate securities at a loss for the sole purpose of
returning the accumulated contributions to the members at an earlier
date.
8. The actuary shall annually determine the amount required in
the annuity reserve fund. If the amount required is less than the
amount in the annuity reserve fund, the respective board of trustees
shall transfer the excess funds from the annuity reserve fund to the
pension accumulation fund. If the amount required is more than the
amount in the annuity reserve fund, the respective board of trustees
shall transfer the amount prescribed by the actuary to the annuity
reserve fund from the pension accumulation fund. Section History: Early Form
[C35, § 6326-f1, 6326-f6, 6326-f8; C39, § 6326.03, 6326.08,
6326.10; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, § 411.1(12, 13,
17, 20), 411.6, 411.8(1, 2); C79, 81, § 411.21; 82 Acts, ch 1261, §
45, 46] Section History: Recent Form
90 Acts, ch 1240, §83
Referred to in § 411.4, 411.37
411.22 LIABILITY OF THIRD PARTIES -- SUBROGATION.
1. If a member receives an injury or dies for which benefits are
payable under section 411.6, subsection 3, 5, 8, or 9, or section
411.15, and if the injury or death is caused under circumstances
creating a legal liability for damages against a third party other
than the retirement system, the retirement system is subrogated to
the rights of the member or the member's beneficiary entitled to
receive a death benefit and may maintain an action for damages
against the third party for lost earnings and lost earnings capacity.
If the retirement system recovers damages in the action, the court
shall enter judgment for distribution of the recovery as follows:
a. A sum sufficient to repay the retirement system for the
amount of such benefits actually paid by the retirement system up to
the time of the entering of the judgment.
b. A sum sufficient to pay the retirement system the present
worth, computed at the interest rate assumption adopted by the system
pursuant to section 411.5, subsection 9, of the future payments of
such benefits, for which the retirement system is liable, but the sum
is not a final adjudication of the future payments which the member
is entitled to receive.
c. A sum sufficient to repay the retirement system for the
costs and expenses of maintaining the action.
d. Any balance remaining after the repayments provided by
paragraphs "a" through "c" shall be paid to the injured
member, or the beneficiary under section 411.6, subsection 8 or 9,
whichever is applicable.
2. If the system, after receiving written notice of the
third-party liability, declines in writing to maintain an action
against the third party or fails to maintain an action within one
hundred eighty days of receiving written notice of the third-party
liability, the member, the member's estate, or the legal
representative of the member or the member's estate, may maintain an
action for damages against the third party. If such an action is
commenced, the plaintiff member, estate, or representative shall
serve a copy of the original notice upon the retirement system not
less than ten days before the trial of the action, but a failure to
serve the notice does not prejudice the rights of the retirement
system, and the following rights and duties ensue:
a. The retirement system shall be indemnified out of the
recovery of damages to the extent of benefit payments paid or awarded
by the retirement system, with legal interest, except that the
plaintiff member's or estate's attorney fees may be first allowed by
the district court. For purposes of this paragraph, "benefit
payments paid or awarded" means the sum of the following amounts:
(1) The amount of benefits actually paid by the retirement system
up to the time of the entering of the judgment.
(2) The present worth, computed at the interest rate provided in
section 535.3 for court judgments and decrees, of the future payments
of such benefits, for which the retirement system is liable, but the
sum is not a final adjudication of the future payments which the
member is entitled to receive.
b. The retirement system has a lien on the damage claim
against the third party and on any judgment on the damage claim for
benefits for which the retirement system is liable. In order to
continue and preserve the lien, the retirement system shall file a
notice of the lien within thirty days after receiving a copy of the
original notice in the office of the clerk of the district court in
which the action is filed.
3. Before a settlement is effective between the retirement system
and a third party who is liable for an injury or death, the member or
beneficiary must consent in writing to the settlement; and if the
settlement is between the member or the member's estate and a third
party, the retirement system must consent in writing to the
settlement; or on refusal to consent, in either case, the district
court in the county in which either the city or the retirement system
is located must consent in writing to the settlement.
4. For purposes of subrogation under this section, a payment made
to an injured member, a member's estate, or the legal representative
of the member or member's estate, by or on behalf of a third party or
the third party's principal or agent, who is liable for, connected
with, or involved in causing the injury or death of the member, shall
be considered paid as damages because the injury or death was caused
under circumstances creating a legal liability against the third
party, whether the payment is made under a covenant not to sue,
compromise settlement, denial of liability, or is otherwise made. Section History: Recent Form
86 Acts, ch 1203, § 5; 88 Acts, ch 1158, §71; 98 Acts, ch 1183,
§95, 96; 2000 Acts, ch 1077, §109; 2000 Acts, ch 1232, §69; 2004
Acts, ch 1103, §68
411.23 WITHDRAWAL OF CONTRIBUTIONS -- REPAYMENT --
AUTOMATIC REFUND.
1. Commencing July 1, 1990, if an active member, in service on or
after that date, terminates service, other than by death or
disability, the member may elect to withdraw the member's
contributions under section 411.8, subsection 1, paragraphs "f"
and "h", together with interest thereon at a rate determined by
the board of trustees. If a member withdraws contributions as
provided in this section, the member shall be deemed to have waived
all claims for other benefits from the system for the period of
membership service for which the contributions are withdrawn.
2. A layoff for an indefinite period of time shall be deemed to
be a termination of service for the purposes of this section. A
member who withdraws the member's contributions as provided in this
section following a layoff for an indefinite period of time and who
is subsequently recalled to service may repay the contributions. The
contributions repaid by the member for such service shall be equal to
the amount of contributions withdrawn, plus interest computed based
upon the investment interest rate assumption established by the board
of trustees as of the time the contributions are repaid. However,
the member must make the contributions within two years of the date
of the member's return to service. The period of membership service
for which contributions are repaid shall be treated as though the
contributions were never withdrawn.
3. a. Commencing July 1, 2006, a member's contributions shall
be refunded to the member by the system if the following conditions
are met:
(1) The member was a member of the system for less than four
years.
(2) The member terminated service four or more years prior to the
date of the refund.
(3) The amount to be refunded does not exceed five thousand
dollars, or such other amount as may be established under section
401(a) of the Internal Revenue Code.
b. In the event a refund is made in accordance with this
subsection without the member's consent, the system shall pay the
distribution in a direct rollover to an individual retirement plan
designated by the system unless the member elects to have such
distribution paid directly to an eligible retirement plan specified
by the member in a direct rollover in accordance with section 411.6B
or elects to receive the distribution directly. The system may, by
rule, implement a de minimus exception to the automatic rollover
provision of this subsection, subject to the limitations of the
Internal Revenue Code and any applicable internal revenue service
regulations. Section History: Recent Form
90 Acts, ch 1240, § 84; 93 Acts, ch 44, § 19; 2006 Acts, ch 1092,
§18
Referred to in § 97A.17, 411.6, 411.6C, 411.38
411.24 PAYMENT TO REPRESENTATIVE PAYEE.
1. Adults. When it appears to the system that the interest
of an applicant entitled to a payment would be served, certification
of payment may be made, regardless of the legal competence or
incompetence of the individual entitled to the payment, either for
direct payment to the applicant, or for the applicant's use and
benefit to a representative of an applicant. Payments under this
section shall be made in accordance with rules adopted by the board.
2. Minors. Payments on behalf of minors shall be made in
accordance with rules adopted by the board.
3. Finality. Any payments made under the provisions of this
section shall be a complete settlement and satisfaction of any claim,
right, or interest in and to such payment. Section History: Recent Form
98 Acts, ch 1183, §97
411.25 THROUGH 411.29 Reserved.
411.30 TRANSFER OF MEMBERSHIP.
Upon the written approval of the applicable county board of
supervisors and city council, to the Iowa public employees'
retirement system, a vested member of the Iowa public employees'
retirement system on June 30, 1986 who meets all of the following
requirements shall become a member of a retirement system under this
chapter on July 1, 1986:
1. Was a vested member of the retirement system established in
this chapter on June 30, 1973.
2. Was an elected bailiff of a municipal court on June 30, 1973.
3. Became a deputy sheriff on July 1, 1973 and pursuant to 1972
Iowa Acts, chapter 1124, section 43, continued coverage under a
retirement system under this chapter.
4. Upon election as a county sheriff, was transferred from
membership under this chapter to membership in a retirement system
established in chapter 97B.
The Iowa public employees' retirement system shall transfer to the
board of trustees of the applicable retirement system under this
chapter an amount equal to the total of the accumulated contributions
of the member as defined in section 97B.1A, subsection 2, together
with the employer contribution for that period of service plus the
interest that accrued on the contributions for that period equal to
two percent plus the interest dividend rate applicable for each year.
The board of trustees of the applicable retirement system under this
chapter shall credit the member whose contributions are transferred
under this section with membership service under this chapter for the
period for which the member was covered under the Iowa public
employees' retirement system. If the amount of the accumulated
contributions as defined in section 97B.1A, subsection 2, transferred
is less than the amount that would have been contributed under
section 411.8, subsection 1, paragraph "f", at the rates in
effect for the period for which contributions were made plus the
interest that would have accrued on the amount, the member shall pay
the difference together with interest that would have accrued on the
amount.
If the amount of the employer contributions transferred is less
than the amount that would have been contributed by the employer
under section 411.5, subsection 12, paragraph "b", plus the
interest that would have accrued on the contributions, the board of
trustees of the applicable retirement system under this chapter shall
determine the remaining contribution amount due. The board of
trustees shall notify the county board of supervisors of the county
in which the sheriff was elected of the remaining amount to be paid
to the retirement system under this chapter.
The county board of supervisors shall forthwith pay to the board
of trustees of the applicable retirement system the remaining amount
to be paid from moneys in the county general fund.
From July 1, 1986, the county board of supervisors of the county
in which the sheriff was elected shall deduct the contribution
required of the member under section 411.8, subsection 1, paragraph
"f", from the member's earnable compensation and the county shall
pay from the county general fund an amount equal to the normal rate
of contribution multiplied by the member's earnable compensation to
the applicable retirement system for the period in which the member
remains sheriff or deputy sheriff of that county. Section History: Recent Form
86 Acts, ch 1243, § 30; 98 Acts, ch 1183, §82
Referred to in § 411.37
411.31 OPTIONAL TRANSFERS WITH CHAPTER 97A.
1. For purposes of this section, unless the context otherwise
requires:
a. "Average accrued benefit" means the average of the amounts
representing the present value of the accrued benefit earned by the
member determined by the former system and the present value of the
accrued benefit earned by the member determined by the current
system.
b. "Current system" means the eligible retirement system in
which a person has commenced employment covered by the system after
having terminated employment covered by the former system.
c. "Eligible retirement system" means the system created
under this chapter and the Iowa department of public safety peace
officers' retirement, accident, and disability system established in
chapter 97A.
d. "Former system" means the eligible retirement system in
which a person has terminated employment covered by the system prior
to commencing employment covered by the current system.
e. "Refund liability" means the amount the member may elect
to withdraw from the former system under section 97A.16.
2. Commencing July 1, 1996, a vested member of an eligible
retirement system who terminates employment covered by one eligible
retirement system and, within one year, commences employment covered
by the other eligible retirement system may elect to transfer the
greater of the average accrued benefit or refund liability earned
from the former system to the current system. The member shall file
an application with the current system for transfer of the greater of
the average accrued benefit or refund liability within ninety days of
the commencement of employment with the current system.
3. Notwithstanding subsection 2, a vested member whose employment
with the current system commenced prior to July 1, 1996, may elect to
transfer the average accrued benefit earned under the former system
to the current system by filing an application with the current
system for transfer of the average accrued benefit on or before July
1, 1997.
4. Upon receipt of an application for transfer as provided in
this section, the current system shall calculate the average accrued
benefit and the refund liability and the former system shall transfer
to the current system assets in an amount equal to the greater of the
average accrued benefit or refund liability. Once the transfer is
completed, the member's service under the former system shall be
treated as membership service under the current system for purposes
of this chapter and chapter 97A. Section History: Recent Form
96 Acts, ch 1187, §105; 2002 Acts, ch 1135, §52, 53; 2004 Acts, ch
1103, §69--71
411.32 THROUGH 411.34 Reserved.
411.35 STATEWIDE SYSTEM ESTABLISHED -- CITY SYSTEMS
TERMINATED.
1. Effective January 1, 1992, a single statewide fire and police
retirement system is established to replace the individual city fire
retirement systems and police retirement systems operating under this
chapter prior to that date. Each city fire retirement system and
police retirement system operating under this chapter prior to May 3,
1990, shall participate in the statewide system.
2. Effective January 1, 1992, each city fire retirement system
and police retirement system operating under this chapter prior to
that date is terminated, and all membership, benefit rights, and
financial obligations under the terminating systems shall be assumed
by the statewide fire and police retirement system. Section History: Recent Form
90 Acts, ch 1240, §85; 91 Acts, ch 52, §4
411.36 BOARD OF TRUSTEES FOR STATEWIDE SYSTEM.
1. A board of trustees for the statewide fire and police
retirement system is created. The board shall consist of thirteen
members, including nine voting members and four nonvoting members.
The voting members shall be as follows:
a. Two fire fighters from different participating cities, one
of whom is an active member of the retirement system and one of whom
is a retired member. The fire fighters shall be appointed by the
governing body of the Iowa association of professional fire fighters.
b. Two police officers from different participating cities,
one of whom is an active member of the retirement system and one of
whom is a retired member. The police officers shall be appointed by
the governing body of the Iowa state police association.
c. A city treasurer, city financial officer, or city clerk
involved with the financial matters of the city from four
participating cities, one of whom is from a city having a population
of less than thirty thousand, and three of whom are from cities
having a population of thirty thousand or more. The members
authorized pursuant to this paragraph shall be appointed by the
governing body of the Iowa league of cities.
d. One citizen who does not hold another public office. The
citizen shall be appointed by the other members of the board.
The nonvoting members of the board shall be two state
representatives, one appointed by the speaker of the house of
representatives and one by the minority leader of the house, and two
state senators, one appointed by the majority leader of the senate
and one by the minority leader of the senate.
2. Except as otherwise provided for the initial appointments, the
voting members shall be appointed for four-year terms, and the
nonvoting members shall be appointed for terms as provided in section
69.16B. Terms of voting members begin on May 1 in the year of
appointment and expire on April 30 in the year of expiration.
3. Vacancies shall be filled in the same manner as original
appointments. A vacancy shall be filled for the unexpired term.
4. The board shall elect a chairperson from among its own
members.
5. a. The voting members of the board shall be paid their
actual and necessary expenses incurred in the performance of their
duties and shall receive a per diem as specified in section 7E.6 for
each day of service. Per diem and expenses shall be paid to voting
members from the fire and police retirement fund created in section
411.8.
b. A participating city shall allow an employee who is a
member of the board to attend all meetings of the board. In their
capacity as members of the board, which is an instrumentality of
political subdivisions of the state, members of the board shall be
deemed to be jointly serving the members of the system and the
participating cities. The members of the board shall perform their
duties in the best interest of the system. Board members who are
employees of participating cities shall be allowed to attend board
meetings without being required to use paid leave. Costs incurred by
a board member which are associated with having a replacement perform
the member's other duties for the participating city while serving in
the capacity of a member of the board may be considered a necessary
expense of the system.
c. Per diem and expenses of the legislative members shall be
paid from the funds appropriated under section 2.12. However,
legislative members shall not be paid pursuant to this section when
the general assembly is actually in session at the seat of
government.
6. A member, employee, and the secretary of the board of trustees
are not personally liable for claims based upon an act or omission of
the person performed in the discharge of the person's duties, except
for acts or omissions which involve intentional misconduct, or for a
transaction from which the person derives an improper personal
benefit, even if the acts or omissions violate the standards
established in section 411.7, subsection 2. Section History: Recent Form
90 Acts, ch 1240, §86; 91 Acts, ch 52, § 2; 93 Acts, ch 44, § 20;
95 Acts, ch 3, §5; 98 Acts, ch 1183, §98; 2004 Acts, ch 1103, §72;
2009 Acts, ch 106, §11, 12, 14
Referred to in § 97B.1A, 97D.3, 411.1, 411.5, 411.7
411.37 BOARD RESPONSIBLE FOR TRANSITION.
1. The board of trustees for the statewide system is responsible
for effecting the transition from the city fire and police retirement
systems to the statewide fire and police retirement system. The
board shall adopt a transition plan and other appropriate transition
documents it deems necessary to accomplish the transition in
accordance with the requirements of this chapter. The city fire and
police retirement systems shall comply with orders of the board
issued pursuant to the transition plan or other transition documents.
2. The board shall include in the transition plan or other
transition documents, provisions to facilitate continuity under
sections 411.20, 411.21, and 411.30.
3. For each of the fiscal years beginning July 1, 1990, and July
1, 1991, ten percent of the amount appropriated for distribution to
cities as provided in section 411.20 shall be made available to the
board of trustees for the statewide system to cover the
administrative costs of the transition. The amount distributed to
each city shall be reduced accordingly. The moneys remaining
unencumbered or unexpended at the end of the fiscal year beginning
July 1, 1990, and the moneys remaining unencumbered or unexpended on
January 1, 1992, shall be credited to the cities in the same
proportion as the reduction. Section History: Recent Form
90 Acts, ch 1240, §87; 91 Acts, ch 52, §3; 96 Acts, ch 1187, § 106
411.38 OBLIGATIONS OF PARTICIPATING CITIES.
1. Upon the establishment of the statewide system, each city
participating in the statewide fire and police retirement system
shall do all of the following:
a. Pay to the statewide system the normal contribution rate
provided pursuant to section 411.8.
b. Transfer from each terminated city fire or police
retirement system to the statewide system amounts sufficient to cover
the accrued liabilities of that terminated system as determined by
the actuary of the statewide system. The actuary of the statewide
system shall redetermine the accrued liabilities of the terminated
systems as necessary to take into account additional amounts payable
by the city which are attributable to errors or omissions which
occurred prior to January 1, 1992, or to matters pending as of
January 1, 1992. If the actuary of the statewide system determines
that the assets transferred by a terminated system are insufficient
to fully fund the accrued liabilities of the terminated system as
determined by the actuary as of January 1, 1992, the participating
city shall pay to the statewide system an amount equal to the
unfunded liability plus interest for the period beginning January 1,
1992, and ending with the date of payment or the date of entry into
an amortization agreement pursuant to this section. Interest on the
unfunded liability shall be computed at a rate equal to the greater
of the actuarial interest rate assumption on investments of the
moneys in the fund or the actual investment earnings of the fund for
the applicable calendar year. The participating city may enter into
an agreement with the statewide system to make additional annual
contributions sufficient to amortize the unfunded accrued liability
of the terminated system. The terms of an amortization agreement
shall be based upon the recommendation of the actuary of the
statewide system, and the agreement shall do each of the following:
(1) Allow the city to make additional annual contributions over a
period not to exceed thirty years from January 1, 1992.
(2) Provide that the city shall pay a rate of return on the
amortized amount that is at least equal to the estimated rate of
return on the investments of the statewide system for the years
covered by the amortization agreement.
(3) Contain other terms and conditions as are approved by the
board of trustees for the statewide system.
In the alternative, a city may treat the city's accrued unfunded
liability for the terminated system as legal indebtedness to the
statewide system for the purposes of section 384.24, subsection 3,
paragraph "f".
c. Contribute additional amounts necessary to ensure
sufficient financial support for the statewide fire and police
retirement system, as determined by the board of trustees based on
information provided by the actuary of the statewide system.
2. It is the intent of the general assembly that a terminated
city fire or police retirement system shall not subsidize any portion
of any other system's unfunded liabilities in connection with the
transition to the statewide system. The actuary of the statewide
system shall determine if the assets of a terminated city fire or
police retirement system would exceed the amount sufficient to cover
the accrued liabilities of that terminated system as of January 1,
1992, using the alternative assumptions and the proposed assumptions.
3. As used in this section, unless the context otherwise
requires, "alternative assumptions" means that the interest rate
earned on investments of moneys in the fire and police retirement
fund would be seven percent and that the state would not contribute
to the fund under sections 411.8 and 411.20 after January 1, 1992,
and "proposed assumptions" means that the interest rate earned on
investments of moneys in the fire and police retirement fund would be
seven and one-half percent and the state will pay contributions as
provided pursuant to sections 411.8 and 411.20 after January 1, 1992.
These assumptions are to be used solely for the purposes of this
section, and shall not impact upon decisions of the board of trustees
concerning the assumption of the interest rate earned on investments,
or the contributions by the state as provided for in sections 411.8
and 411.20.
4. If the determination by the actuary using the alternative
assumptions reflects that the assets of the terminated system exceed
the amount sufficient to cover the accrued liabilities as of January
1, 1992, all excess funds as determined utilizing the alternative
assumptions and the interest and earnings from those excess funds
shall be used only as approved by the city council of the
participating city. The city council may approve use of the excess
funds to reduce only the city's contribution to the statewide system,
or the city council may approve use of the excess funds to reduce the
city's contribution and the members' contributions to the statewide
system. If the city council approves use of the excess funds to
reduce both the city's and the members' contributions, the members
shall not withdraw the portion of the members' contributions paid
from excess funds, as would otherwise be authorized in accordance
with section 411.23.
5. If the determination by the actuary using the alternative
assumptions reflects that the assets of the terminated system do not
exceed the amount sufficient to cover the accrued liabilities as of
January 1, 1992, but a determination by the actuary using the
proposed assumptions reflects that the assets of the terminated
system do exceed the amount sufficient to cover the accrued
liabilities as of January 1, 1992, all excess funds as determined
utilizing the proposed assumptions and the interest and earnings from
those excess funds shall be used only to reduce the city's
contribution rate to the statewide system. The participating city
shall determine what portion of the excess funds shall be applied to
reduce the city's contribution rate for a given year. Section History: Recent Form
90 Acts, ch 1240, § 88; 92 Acts, ch 1197, § 1, 2, 4; 92 Acts, ch
1201, § 71; 96 Acts, ch 1187, § 107
411.39 BENEFITS FOR EMPLOYEES OF THE BOARD OF
TRUSTEES FOR THE STATEWIDE SYSTEM.
1. As used in this section, unless the context otherwise
requires:
a. "Benefit programs" mean the state life insurance
program, the state health or medical insurance program, and the state
employees disability program administered by the department of
administrative services.
b. "Employees" mean the secretary and other employees of
the board of trustees for the statewide fire and police retirement
system.
2. Employees are eligible to participate in the benefit programs
for state employees. Participation in the benefit programs is
optional, and an employee may participate by filing an election, in
writing, with the board of trustees for the statewide system. The
board of trustees shall file these elections with the department of
administrative services.
3. The board of trustees shall determine what, if any, amount of
the costs or premiums of the benefit programs shall be paid by the
participating employees, and shall deduct the amount from the wages
of the participating employees. The board of trustees shall pay the
remaining costs or premiums of the benefit programs from the fire and
police retirement fund, including any portion to be attributed to an
employer, and shall forward all amounts paid by participating
employees and the board to the department of administrative services.
4. Participating employees shall be exempted from preexisting
medical condition waiting periods. Participating employees may
change programs or coverage under the state health or medical service
group insurance plan subject to the enrollment rules established for
full-time state employees excluded from collective bargaining as
provided in chapter 20. A participating employee or the
participating employee's surviving spouse shall have the same rights
upon final termination of employment or death as are afforded
full-time state employees and the employees' surviving spouses
excluded from collective bargaining as provided in chapter 20. Section History: Recent Form
92 Acts, ch 1197, § 3; 2003 Acts, ch 145, §286
411.40 VOLUNTARY BENEFIT PROGRAMS.
The board of trustees may establish voluntary benefit programs for
members subject to the following conditions:
1. The voluntary benefit programs may provide benefits including,
but not limited to, retiree health benefits, long- term care, and
life insurance.
2. Participation in the voluntary benefit programs by members
shall be voluntary.
3. Contributions to the voluntary benefit programs shall be paid
entirely by each participating member by means of payroll deduction.
Cities employing members participating in voluntary benefit programs
shall forward the amounts deducted to the board of trustees for
deposit in the voluntary benefit fund.
4. The voluntary benefit programs and the voluntary benefit fund
shall be administered under the direction of the board of trustees
for the exclusive benefit of members paying contributions as provided
in subsection 3.
5. The assets of the voluntary benefit programs shall be credited
to the voluntary benefit fund, which is hereby created. The
voluntary benefit fund shall include contributions deposited in
accordance with subsection 3, and any interest and earnings on the
contributions. The board of trustees shall annually establish an
investment policy to govern the investment and reinvestment of the
assets in the voluntary benefit fund. The voluntary benefit fund
created under this section and the fire and police retirement fund
created under section 411.8 shall not be used to subsidize any
portion of the liabilities of the other fund.
6. The board of trustees shall include in its annual budget the
amount of money necessary during the following year to provide for
the expense of operation of the voluntary benefit programs. The
operating expenses shall be paid from the voluntary benefit fund
under the direction of the board of trustees. Section History: Recent Form
96 Acts, ch 1187, §108
Referred to in § 411.5