New state law adjusts IPERS plan
Retirement benefits intact

      The Iowa Legislature made several changes to the IPERS plan during the 2008 legislative session, but did not change core retirement benefits.
     Governor Culver signed Senate File (SF) 2424 into law in May. The changes become effective on different dates as noted.
     The bill did not change eligibility for benefits or the formula used to figure benefit amounts, but did change the following:

1. Directs IPERS to review contribution rates each year and adjust the rates as necessary based on an actuarial valuation. Rates can change by no more than 0.5 percentage point a year for each membership class.
2. Removes bonuses and allowances from the compensation classified as IPERS-covered wages. IPERS-covered wages determine the amount contributed to IPERS and help calculate benefits.
3. Moves county jailers, emergency medical service providers, county attorney investigators, and National Guard installation security officers from the regular membership class to the protection occupation class.
4. Adds ways for vested members and retirees to purchase service credits.
5. Clarifies that recipients of regular disability benefits can continue receiving disability benefits only if they continue to meet eligibility requirements for having a permanent disability.
6. Allows beneficiaries who are not spouses, as well as spouses, to roll over their death benefits to traditional and Roth IRAs.

SF2424 also removes out-of-date language, makes technical corrections, and changes requirements for employers. This summary does not address these changes, which do not affect your member rights. You can see the complete bill.  You can get legislative news on IPERS while the legislature is in session. You also can link to IPERS laws and administrative rules adopted to carry out state and federal laws from IPERS Central.

Who does what?

The Iowa Legislature & Governor determine, by law, who participates in IPERS and what benefits the IPERS plan will provide.

The Benefits Advisory Committee represents employers and members in advising IPERS and the legislature on IPERS benefits.

The Investment Board, trustee of the IPERS Trust Fund, monitors proposals that may help or harm the long-term financial stability of the fund and the board’s ability to act in the best interests of IPERS members.

IPERS’ Administration advises the legislature on the fiscal and policy implications of proposed law changes and implements laws that are passed.