Proyectos de ley › 89.ª Asamblea General
Concerning compensation and benefits limits, relating to the earnings limitation for retirees under the Iowa public employees’ retirement system and compensation limits for school corporation board members, and including effective date provisions
Presentado por el comité State Government del Senado
Dónde está ahora
- Hecho: Presentado31 de enero de 2022
- Hecho: Subcomité2 de febrero de 2022
- Hecho: Comité del Senado14 de febrero de 2022
- Hecho: Lo aprueba el Senado21 de febrero de 202249–0
- Se saltó: Comité de la CámaraSe saltó
- Hecho: Lo aprueba la Cámara2 de marzo de 202299–0
- Hecho: A gobernador(a)23 de marzo de 2022
- Hecho: Firmado como ley23 de marzo de 2022
Firmado como ley ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA Retirees in the Iowa public employees' retirement system can now earn up to $50,000 from full-time jobs before their retirement pay is reduced. Additionally, school board members can receive benefits from contracts worth up to $20,000 instead of the previous $6,000 limit. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill modifies the earnings limitation for retirees under the Iowa public employees’ retirement system (IPERS) and the limitation on compensation and benefits for a member of a school board. Code section 97B.48A provides that a retiree under IPERS who has not reached age shall have their retirement allowance reduced by cents for every dollar the retiree earns over $30,000 in full-time employment covered by IPERS. The bill raises this earnings limitation provision to $50,000. Code section 279.7A, concerning limitations on contracts that benefit a member of the board of directors of a school corporation, is amended to allow a contract if the benefit from the contract to the director does not exceed $20,000 instead of $6,000. The bill takes effect upon enactment.
Cambiado después por la enmienda H-8047; vea Enmiendas.
Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse2
Nota fiscal
Minimal Compare con otros proyectos
Resumen con IA This bill raises the annual earnings limit for certain IPERS retirees and increases the compensation limit for school board members working part-time or temporary jobs. It is estimated that IPERS would pay out approximately $1.1 million in retirement benefits annually that would otherwise stay in the IPERS Trust Fund. The costs for school board member employment would be paid from existing school district resources and are expected to be minimal. (en inglés)3
Lea la nota fiscal (en inglés)
Description
Senate File 2266 increases the earnings limitation from $30,000 annually to $50,000 annually for retirees under the age of 65 who return to work for an Iowa Public Employees’ Retirement System (IPERS)-covered employer. The Bill also increases the limit of compensation school board members can earn through part-time or temporary district employment from $6,000 to $20,000. The Bill takes effect upon enactment.
Background
Iowa Code section 97B.48A provides that a retiree who has not reached age 65 and returns to work for an IPERS-covered employer will have the retiree’s retirement allowance reduced by $0.50 for every $1 the retiree earns over $30,000 for the remainder of the calendar year. The earnings limit was last increased from $14,000 to $30,000 during the 2002 Legislative Session (2022 Iowa Acts, Chapter 1135).
As of June 30, 2021, there were 9,484 retired, reemployed IPERS members. IPERS paid out $2.365 billion in retirement benefits in FY 2021, and the IPERS Trust Fund balance was $42.850 billion.
Assumptions
- For calendar year (CY) 2021, there were 136 IPERS members under the age of 65 who exceeded the annual $30,000 earnings limit.
- The average annual earnings of the 136 members who exceeded the limit totaled $50,000.
- The total average reduction per member was approximately $8,000, resulting in approximately $1.1 million remaining in the IPERS Trust Fund due to the penalty.
- School districts would pay the increased contract costs for services provided by board members.
Fiscal Impact
Increasing the earnings income limit to $50,000 will result in members receiving approximately $1.1 million in retirement benefits annually that under current law would have been retained in the IPERS Trust Fund. The assumed loss of reduced retirement benefits is a nominal liability to the IPERS Trust Fund of approximately 0.003%. The costs related to part-time and temporary school board member employment would be paid from existing school district resources and are anticipated to be minimal.
Sources
- Iowa Public Employees’ Retirement System (IPERS)
- IPERS FY 2021 Annual Comprehensive Financial Report
- Department of Education
- Final Fiscal Note — Income Cap, IPERS Beneficiaries · 22 de junio de 2022
- Income Cap, IPERS Beneficiaries · 16 de febrero de 2022
- IPERS Covered Positions, Temporary Return · 3 de febrero de 2022
Lo que cambia del Código de Iowa (Iowa Code)
Cabildeo
8 a favor · 0 en contra · 5 indecisos · Quiénes →
Family tree
Study bill