Iowa Public Employees Retirement Systems (IPERS)

Several bills (HF 2029, HSB 535, HSB 537, SSB 3003, SSB 3007, SSB 3069) were introduced this week to translate the recommendations of the Public Retirement Systems Study Committee into legislation.  The recommendations of the study committee are as follows:

1. Create a bona fide retirement exception for members called to state active duty with the National Guard.

2. Extend the bona fide retirement exception for licensed health care professionals for two years.

3. Increase the total contribution rate for IPERS regular service to 13.45% beginning July 1, 2011, and allow the system to adjust the rate either up or down by no more than one percentage point per year for all employee classifications under IPERS.

4. Increase the vesting requirement from four to seven years.

5. Calculate retirement benefits using a member's high five years of salary instead of the current high three years.

6. Implement a 6% per year reduction in retirement benefits for each year a member retires and receives a retirement allowance prior to age 65 if at the time the member retires the member does not meet the rule of 88 or is not at least 62 years of age with at least 20 years of service.

7. Extend the current purchase of wage credit rules relative to furloughs for IPERS members for an additional year and allow the rules to apply to union bumping rights.