Relating to benefits and contributions for members of the Iowa public employees’ retirement system who are employed in a protection occupation

Sponsored by the House Ways and Means (successor To Hsb 265) Committee

Topics:State budget State government

Same legislation: HSB 265, HF 967

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedMarch 18, 2025
Done: SubcommitteeApril 1, 2025
Done: House committeeApril 16, 2025
Done: Passes the HouseApril 24, 202589–0
Done: Senate committeeFebruary 12, 2026
Done: Passes the SenateApril 21, 202644–0
Done: To the GovernorMay 11, 2026
Done: Signed into lawJune 2, 2026

Signed into law What’s a funnel?

What’s in it

AI summary People working in certain public safety jobs would pay more into their retirement system, while their employers would pay less. Starting in 2025, these workers could receive a higher monthly retirement check and an annual cost-of-living increase to help with rising prices. Retirees who receive these yearly increases would no longer be eligible for certain retirement dividends.¹

Read the official explanation

This bill modifies the Iowa public employees’ retirement system (IPERS) benefits and contributions for members employed in a protection occupation. The bill increases the amount a member of IPERS who is employed in a protection occupation is required to contribute to IPERS from percent to percent of the required contribution rate and decreases the applicable employer percentage for an employer of an IPERS member who is employed in a protection occupation from percent to percent of the required contribution rate. The monthly retirement benefit under IPERS for a member of a protection occupation is calculated by multiplying the retiree’s applicable covered wage by a percentage.375 percent up to a maximum of additional percentage points for calendar quarters of service beyond years of service.625 percent for each calendar quarter of service beyond years of service up to a maximum of additional percentage points. The bill provides that a member of a protection occupation may elect to retire at years of age with years of service and receive the monthly retirement allowance under current law, rather than at age 55. The bill establishes a cost-of-living adjustment (COLA) to the monthly retirement allowance for active and inactive members and to beneficiaries and contingent annuitants for retirements occurring on or after July 1, 2025.5 percent of the monthly retirement allowance payable on that date. Such a member, beneficiary, or contingent annuitant is not eligible for the COLA increase unless the member has years of eligible service and attained years of age prior to the retirement date of the member.49F.

Changed since by amendment S-5011; see Amendments.

Full bill text · What changed before it passed²

Senate subcommittee

Named April 30, 2025. On May 12, 2025 it recommended passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

5 written public comments to its subcommittee: May 12, 2025 (3), April 9, 2025 (2) · on the Legislature’s site

Fiscal note

Cost: up to $2,900 Compare with other bills

AI summary This bill changes how retirement contributions are split between employers and employees for IPERS protection occupation members, increases maximum retirement benefit payments, and establishes an annual 1.5% increase for monthly retirement allowances. For fiscal year 2027, the change would reduce employer contributions by approximately $8.5 million and increase employee contributions by approximately $8.5 million. Beginning in fiscal year 2028, the full impact is estimated to increase costs by approximately $6.4 million for the employer group and $23.4 million for the employee group. Administrative costs to IPERS are unknown but are estimated to be nominal.³

From the note: 55%. 5 million, or approximately $1,100 per employee. Beginning in FY 2028, the full impact of the Bill will take effect as detailed below. 44%. 27% for the employee for the IPERS Protection Occupation membership group. 125% for employers) for the IPERS Protection Occupation membership group. 96%. 4 million for the employee group, or $2,900 per employee.

How the estimate changed