Relating to the Iowa public employees’ retirement system by modifying the retirement benefits of sheriffs and deputy sheriffs

This bill relates to the Iowa public employees’ retirement system (IPERS) by modifying the retirement benefits of sheriffs and deputy sheriffs. The monthly retirement benefit under IPERS for a sheriff or deputy sheriff is calculated by multiplying the retiree’s applicable covered wage by a percentage. The bill increases, for sheriffs and deputy sheriffs retiring on or after July 1, 2024, the applicable percentage used to calculate the retiree’s monthly retirement benefit by five-eighths of one percentage point for each calendar quarter of service beyond years of service up to a maximum of additional percentage points. Under current law, the applicable percentage is increased by three-eighths of one percentage point up to a maximum of additional percentage points for calendar quarters of service beyond years of service.49F(1).49F(2). The FED reserve account pays a dividend to an eligible member when a favorable experience on the actuarial liabilities and assets occurs and IPERS is fully funded. The bill establishes a cost-of-living adjustment (COLA) to the monthly allowance for active and inactive members and to any beneficiaries for retirements occurring on or after July 1, 2024. Beginning July 1, 2024, and on each July 1, the monthly retirement allowance of such a member shall be adjusted by adding to the monthly retirement allowance an amount equal to one and one-half percent of the monthly retirement allowance payable on that date. A member who retires on or after July 1, 2024, is not eligible for the COLA unless the member has years of eligible service and attained years of age prior to the retirement date of the member.49F(2).