Filed April 22, 2026 in the House by
What it changes
- Page 1, after line 3 by inserting: ““Sec. ___. Section 97B.11, subsection 3, paragraph a, subparagraphs (1) and (2), Code 2026, are amended to read as follows: (1) “Applicable employee percentage” means the percentage rate equal to forty percent of the required contribution rate for members in regular service. For the fiscal year beginning July 1, 2026, and for each fiscal year thereafter, the system shall increase the applicable employee percentage calculated under this subparagraph for that fiscal year by the amount necessary to fund the annual adjustment to the monthly retirement allowance provided under section 97B.49A. (2) “Applicable employer percentage” means the percentage rate equal to sixty percent of the required contribution rate for members in regular service. For the fiscal year beginning July 1, 2026, and for each fiscal year thereafter, the system shall decrease the applicable employer percentage calculated under this subparagraph for that fiscal year by the amount necessary to fund the annual adjustment to the monthly retirement allowance provided under section 97B.49A.”
- Page 1, after line 32 by inserting: “Sec. ___. Section 97B.49A, Code 2026, is amended by adding the following new subsection: NEW SUBSECTION .
- Annual adjustment of allowance. A member who retires on or after July 1, 2026, and who receives a monthly retirement allowance under this section, shall have the monthly retirement allowance adjusted as follows: a. On each July 1, the monthly retirement allowance authorized in this section and payable to a member retired prior to that date, and to a beneficiary or contingent annuitant entitled to a monthly retirement allowance prior to that date, shall be adjusted by adding to the monthly retirement allowance payable on that date an amount equal to -1- H 8393.4179 (1) 91 sc/ns 1/ 2 the sum of one percent of the monthly retirement allowance payable on that date. b. A retired member, beneficiary, or contingent annuitant shall not be eligible for an annual readjustment of allowance provided in this subsection unless the member has attained the age of fifty-five years prior to the member’s termination of employment. c. A retired member, beneficiary, or contingent annuitant that receives an annual adjustment of allowance provided in this subsection shall not be eligible for the retirement dividends under section 97B.49F.”
- Page 3, after line 3 by inserting: “___. Title page, lines 2 and 3, by striking “who are employed in a protection occupation””
- By renumbering as necessary.