Reclassifying regular members as protection occupation members
Four groups of employees will move from IPERS’ regular membership class to the protection occupation membership class:
- County jailers and detention officers working as jailers
- Emergency medical service providers
- County attorney investigators
- National Guard installation security officers
IPERS service already earned will continue to count as regular service when calculating retirement benefits. Service earned after July 1, 2008, will count as protection occupation service.
The protection occupation class is one of two groups of Special Service members. Special Service membership is reserved for employees working in jobs that call for earlier retirements. These members earn benefits faster than members in the regular class and become eligible for retirement benefits at a younger age. They also have higher disability and death benefits. Since benefits are higher, contribution rates are also higher than those for members in the regular class.
The current protection occupation class includes correctional officers, police and firefighters in Iowa’s towns and smaller cities, airport firefighters, airport safety and security officers, conservation peace officers, Department of Transportation peace officers, and fire inspectors. The second group of Special Service members consists only of county sheriffs and deputy sheriffs.
Adding people to the group can affect contribution rates for those already in the group. This is because, similar to an insurance pool, everyone in the pool shares the costs. Characteristics of the members in the pool affect the cost of benefits. For example, as life spans increase, retirement benefit costs increase because people will receive benefits longer. Likewise, people who join the pool at an older age have a cost impact because they have fewer years to contribute before drawing retirement benefits than younger people just starting their careers.
Effective July 1, 2008
Iowa Code Section Amended: 97B.49B(1)
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Protection occupation members work to protect people and property, and their jobs are hazardous and physically demanding. Because it takes strength, speed, stamina, and agility to do these jobs, retirement is necessary at an earlier age and with less service than it is for regular members. |
- IPERS members with both regular and Special Service credit must meet the same retirement benefit eligibility requirements as regular members.
- Benefits for members with mixed service credit are calculated using a hybrid formula.
- The hybrid formula cannot be used for anyone with 30 or more years of regular service or 22 or more years of Special Service.
- The maximum retirement benefit under the hybrid formula is 65 percent of the final average salary.
- The formula applies the appropriate multiplier for each class to the service earned in that class.
- A benefit reduction for early retirement will apply only to the regular service credits when the member does not meet eligibility requirements for unreduced regular benefits.
Members with both regular and Special Service credit who are getting close to retirement can contact IPERS for more information about their benefits.
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IPERS Regular Members |
IPERS Special Service Members |
Contribution rates
7/1/08–6/30/09
Percent of employees’ covered wages |
Regular members
4.10% employee
6.35% employer
10.45% total |
Sheriffs and deputies
7.52% employee
7.52% employer
15.04% total |
Protection occupations
5.63% employee
8.45% employer
14.08% total |
Retirement
benefit
eligibility
|
Age 55, with reduced benefits unless:
- Rule of 88 (age + years of service = 88), or
- Age 62 with 20 years of service, or
- Age 65.
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Age 55, regardless of years of service.
(Sheriffs and deputies may start receiving benefits at age 50 if they have 22 years of service. Protection occupation members do not have this option.) |
Multiplier used in benefit formula |
2% a year for 30 years, plus 1% a year for years 31–35. |
2.7272% a year for 22 years, plus 1.5% each year for years 23–30. |
Maximum
retirement
benefit |
65% of final average salary (average of highest three years). |
72% of final average salary (average of highest three years). |
Disability benefits |
Benefit amount earned to date, with no reduction for early retirement. Must qualify for federal social security or railroad retirement benefits. |
1. Same as for regular members, or one of the following:
2a. In-service disability: the benefit amount earned to date or 60% of final average salary, whichever is more.
2b. Ordinary disability: the benefit amount earned to date or 50% of final average salary, whichever is more. |
Death benefits |
Before retirement: One-time lump sum based on years of service and covered wages or monthly benefit based on present value of earned benefit (if beneficiary is an individual).
After retirement: Monthly benefit, one-time lump sum, or none depending on option selected at retirement (increased death benefits lower the monthly benefit). |
Same as for regular members plus $100,000 line-of-duty death benefit.
Maximum: 100 × monthly benefit amount (under Option 2, which pays to the beneficiary the difference between the retirement benefits received and the total contributions plus interest). |
IPERS has benefit information specific to each membership class. You may also call IPERS for information.
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