About IPERS
The Rewards of IPERS Membership |
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Contributing to IPERS
Both you and your employer contribute to IPERS. IPERS invests the contributions and holds the investment income in a Trust Fund for the exclusive purpose of paying benefits to members and their beneficiaries. If you leave public employment before you retire, you may keep your money at IPERS, roll it over to another qualified retirement plan that meets IRS requirements, or take a refund.
| IPERS Trust Fund |
Contributions From Active Members and Employers |
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Lifetime Retirement Benefits
Disability Benefits
Death Benefits
Refunds |
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The IPERS Trust Fund must be used for
the exclusive benefit of members. |
The Iowa Legislature and Governor determine the positions of employment that fall under each membership class and the benefits provided. The Iowa Legislature set the contribution rates for regular members through June 30, 2011. Beginning July 1, 2011, IPERS will set regular member contribution rates using an annual actuarial valuation, which is a snapshot of IPERS' finances. Rates for sheriffs, deputies, and members in protection occupations are actuarially determined each year.
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Contribution Rates
(Percentage of Employee’s Pretax Pay) |
| Regular Members |
Member/
Employee
Share |
Employer
Share |
Total |
| July 1, 2008–June 30, 2009 |
4.10% |
6.35% |
10.45% |
| July 1, 2009–June 30, 2010 |
4.30% |
6.65% |
10.95% |
| July 1, 2010–June 30, 2011 |
4.50% |
6.95% |
11.45% |
| Sheriffs and Deputies |
| July 1, 2008–June 30, 2009 |
7.52% |
7.52% |
15.04% |
| Protection Occupations |
| July 1, 2008–June 30, 2009 |
5.63% |
8.45% |
14.08% |
Benefits of Contributing to IPERS
- Automatic retirement savings. Automatic deductions from your paycheck ensure you set aside retirement savings. Despite good intentions, it’s sometimes hard to save for retirement on your own.
- Income you won’t miss. Since the deductions come out of your check automatically, you won’t miss the income. Deductions are set aside before they hit your bank account.
- Pretax deductions reduce your taxable income. Setting aside money on a pretax basis reduces your taxable income. You will pay less at tax time.
- It’s easy. IPERS manages how plan assets are invested so you don’t have to worry about making investment decisions. You focus on today, while IPERS focuses on your retirement years.
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