97A.8 METHOD OF FINANCING.
There is hereby created as a special fund, separate and apart from
all other public moneys or funds of this state, the peace officers'
retirement, accident, and disability system retirement fund,
hereafter called the "retirement fund". All the assets of the
system created and established by this chapter shall be credited to
the retirement fund.
1. All moneys for the payment of all pensions and other benefits
payable from contributions made by the state and from which shall be
paid the lump-sum death benefits for all members payable from the
said contributions shall be accumulated in the retirement fund. The
refunds and benefits for all members and beneficiaries shall be
payable from the retirement fund. Contributions to and payments from
the retirement fund shall be as follows:
a. On account of each member there shall be paid annually
into the retirement fund by the state of Iowa an amount equal to a
certain percentage of the earnable compensation of the member to be
known as the "normal contribution". The rate percent of such
contribution shall be fixed on the basis of the liabilities of the
retirement system as shown by annual actuarial valuations.
b. (1) On the basis of the actuarial methods and assumptions,
rate of interest, and of the mortality, interest, and other tables
adopted by the board of trustees, the board of trustees, upon the
advice of the actuary hired by the board for that purpose, shall make
each valuation required by this chapter pursuant to the requirements
of section 97A.5 and shall immediately after making such valuation,
determine the "normal contribution rate". The normal contribution
rate shall be the rate percent of the earnable compensation of all
members equal to the rate required by the system to discharge its
liabilities, stated as a percentage of the earnable compensation of
all members, and reduced by the employee contribution rate provided
in this subsection. However, the normal rate of contribution shall
not be less than seventeen percent.
(2) Notwithstanding the provisions of subparagraph (1) to the
contrary, the normal contribution rate shall be as follows:
(a) For the fiscal year beginning July 1, 2008, nineteen percent.
(b) For the fiscal year beginning July 1, 2009, twenty-one
percent.
(c) For the fiscal year beginning July 1, 2010, twenty-three
percent.
(d) For the fiscal year beginning July 1, 2011, twenty-five
percent.
(e) For each fiscal year beginning on or after July 1, 2012, the
lesser of twenty-seven percent or the normal contribution rate as
calculated pursuant to subparagraph (1).
c. The total amount payable in each year to the retirement
fund shall not be less than the rate percent known as the normal
contribution rate of the total compensation earnable by all members
during the year. However, the aggregate payment by the state shall
be sufficient when combined with the amount in the retirement fund to
provide the pensions and other benefits payable out of the retirement
fund during the then current year.
d. All lump-sum death benefits on account of death in active
service payable from contributions of the state shall be paid from
the retirement fund.
e. Except as otherwise provided in paragraph "g":
(1) An amount equal to three and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1989.
(2) An amount equal to four and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1990.
(3) An amount equal to five and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1991.
(4) An amount equal to six and one-tenth percent of each member's
compensation from the earnable compensation of the member shall be
paid to the retirement fund for the fiscal year beginning July 1,
1992.
(5) An amount equal to seven and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1993.
(6) An amount equal to eight and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal period beginning
July 1, 1994, through December 31, 1994, and an amount equal to eight
and thirty-five hundredths percent of each member's compensation from
the earnable compensation of the member shall be paid to the
retirement fund for the fiscal period beginning January 1, 1995,
through June 30, 1995.
(7) An amount equal to nine and thirty-five hundredths percent of
each member's compensation from the earnable compensation of the
member shall be paid to the retirement fund for the fiscal year
beginning July 1, 1995.
(8) Notwithstanding any other provision of this chapter,
beginning July 1, 1996, and each fiscal year thereafter, an amount
equal to the member's contribution rate times each member's
compensation shall be paid to the retirement fund from the earnable
compensation of the member. For the purposes of this subparagraph,
the member's contribution rate shall be nine and thirty-five
hundredths percent. However, the system shall increase the member's
contribution rate as necessary to cover any increase in cost to the
system resulting from statutory changes which are enacted by any
session of the general assembly meeting after January 1, 1995, if the
increase cannot be absorbed within the contribution rates otherwise
established pursuant to this paragraph, but subject to a maximum
employee contribution rate of eleven and three-tenths percent. After
the employee contribution reaches eleven and three-tenths percent,
sixty percent of the additional cost of such statutory changes shall
be paid by the employer under paragraph "c" and forty percent of
the additional cost shall be paid by employees under this
subparagraph (8).
f. (1) The board of trustees shall certify to the director of
the department of administrative services and the director of the
department of administrative services shall cause to be deducted from
the earnable compensation of each member the contribution required
under this subsection and shall forward the contributions to the
board of trustees for recording and for deposit in the retirement
fund.
(2) The deductions provided for under this subsection shall be
made notwithstanding that the minimum compensation provided by law
for any member is reduced. Every member is deemed to consent to the
deductions made under this section.
g. Notwithstanding the provisions of paragraph "e", the
following transition percentages apply to members' contributions as
specified:
(1) For members who on July 1, 1990, have attained the age of
forty-nine years or more, an amount equal to nine and one-tenth
percent of each member's compensation from the earnable compensation
of the member shall be paid to the retirement fund for the fiscal
period beginning July 1, 1990, through October 15, 1992, and
commencing October 16, 1992, and for each subsequent fiscal period,
the rates specified in paragraph "e", subparagraphs (4) through
(8), shall apply.
(2) For members who on July 1, 1990, have attained the age of
forty-eight years but have not attained the age of forty-nine years,
an amount equal to eight and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, and an amount equal to nine and
one-tenth percent shall be paid for the fiscal period beginning July
1, 1991, through October 15, 1992, and commencing October 16, 1992,
and for each subsequent fiscal period, the rates specified in
paragraph "e", subparagraphs (4) through (8), shall apply.
(3) For members who on July 1, 1990, have attained the age of
forty-seven years but have not attained the age of forty-eight years,
an amount equal to seven and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to eight and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to nine and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "e", subparagraphs (4)
through (8), shall apply.
(4) For members who on July 1, 1990, have attained the age of
forty-six years but have not attained the age of forty-seven years,
an amount equal to six and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to seven and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, an amount equal to eight and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "e", subparagraphs (4)
through (8), shall apply.
(5) For members who on July 1, 1990, have attained the age of
forty-five years but have not attained the age of forty-six years, an
amount equal to five and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to six and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to seven and one-tenth percent shall be
paid for the fiscal period beginning July 1, 1992, through October
15, 1992. Commencing October 16, 1992, and for each subsequent
fiscal period, the rates specified in paragraph "e",
subparagraphs (4) through (8), shall apply.
h. (1) Notwithstanding paragraph "f" or other provisions
of this chapter, beginning January 1, 1995, for federal income tax
purposes, and beginning January 1, 1999, for state income tax
purposes, member contributions required under paragraph "e" or
"g" which are picked up by the department shall be considered
employer contributions for federal and state income tax purposes, and
the department shall pick up the member contributions to be made
under paragraph "e" or "g" by its employees. The department
shall pick up these contributions by reducing the salary of each of
its employees covered by this chapter by the amount which each
employee is required to contribute under paragraph "e" or "g"
and shall certify the amount picked up in lieu of the member
contributions to the department of administrative services. The
department of administrative services shall forward the amount of the
contributions picked up to the board of trustees for recording and
deposit in the retirement fund.
(2) Member contributions picked up by the department under
subparagraph (1) shall be treated as employer contributions for
federal and state income tax purposes only and for all other purposes
of this chapter shall be treated as employee contributions and deemed
part of the employee's earnable compensation or salary.
2. a. All the expenses necessary in connection with the
administration and operation of the system shall be paid from the
retirement fund. Investment management expenses shall be charged to
the investment income of the system and there is appropriated from
the system an amount required for the investment management expenses.
The board of trustees shall report the investment management expenses
for the fiscal year as a percent of the market value of the system.
b. For purposes of this subsection, investment management
expenses are limited to the following:
(1) Fees for investment advisors, consultants, and investment
management and benefit consultant firms hired by the board of
trustees in administering this chapter.
(2) Fees and costs for safekeeping fund assets.
(3) Costs for performance and compliance monitoring, and
accounting for fund investments.
(4) Any other costs necessary to prudently invest or protect the
assets of the fund.
97A.8 METHOD OF FINANCING.
There is hereby created as a special fund, separate and apart from
all other public moneys or funds of this state, the peace officers'
retirement, accident, and disability system retirement fund,
hereafter called the "retirement fund". All the assets of the
system created and established by this chapter shall be credited to
the retirement fund.
1. All moneys for the payment of all pensions and other benefits
payable from contributions made by the state and from which shall be
paid the lump-sum death benefits for all members payable from the
said contributions shall be accumulated in the retirement fund. The
refunds and benefits for all members and beneficiaries shall be
payable from the retirement fund. Contributions to and payments from
the retirement fund shall be as follows:
a. On account of each member there shall be paid annually
into the retirement fund by the state of Iowa an amount equal to a
certain percentage of the earnable compensation of the member to be
known as the "normal contribution". The rate percent of such
contribution shall be fixed on the basis of the liabilities of the
retirement system as shown by annual actuarial valuations.
b. (1) On the basis of the actuarial methods and assumptions,
rate of interest, and of the mortality, interest, and other tables
adopted by the board of trustees, the board of trustees, upon the
advice of the actuary hired by the board for that purpose, shall make
each valuation required by this chapter pursuant to the requirements
of section 97A.5 and shall immediately after making such valuation,
determine the "normal contribution rate". The normal contribution
rate shall be the rate percent of the earnable compensation of all
members equal to the rate required by the system to discharge its
liabilities, stated as a percentage of the earnable compensation of
all members, and reduced by the employee contribution rate provided
in this subsection. However, the normal rate of contribution shall
not be less than seventeen percent.
(2) Notwithstanding the provisions of subparagraph (1) to the
contrary, the normal contribution rate shall be as follows:
(a) For the fiscal year beginning July 1, 2008, nineteen percent.
(b) For the fiscal year beginning July 1, 2009, twenty-one
percent.
(c) For the fiscal year beginning July 1, 2010, twenty-three
percent.
(d) For the fiscal year beginning July 1, 2011, twenty-five
percent.
(e) For each fiscal year beginning on or after July 1, 2012, the
lesser of twenty-seven percent or the normal contribution rate as
calculated pursuant to subparagraph (1).
c. The total amount payable in each year to the retirement
fund shall not be less than the rate percent known as the normal
contribution rate of the total compensation earnable by all members
during the year. However, the aggregate payment by the state shall
be sufficient when combined with the amount in the retirement fund to
provide the pensions and other benefits payable out of the retirement
fund during the then current year.
d. All lump-sum death benefits on account of death in active
service payable from contributions of the state shall be paid from
the retirement fund.
e. Except as otherwise provided in paragraph "g":
(1) An amount equal to three and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1989.
(2) An amount equal to four and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1990.
(3) An amount equal to five and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1991.
(4) An amount equal to six and one-tenth percent of each member's
compensation from the earnable compensation of the member shall be
paid to the retirement fund for the fiscal year beginning July 1,
1992.
(5) An amount equal to seven and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1993.
(6) An amount equal to eight and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal period beginning
July 1, 1994, through December 31, 1994, and an amount equal to eight
and thirty-five hundredths percent of each member's compensation from
the earnable compensation of the member shall be paid to the
retirement fund for the fiscal period beginning January 1, 1995,
through June 30, 1995.
(7) An amount equal to nine and thirty-five hundredths percent of
each member's compensation from the earnable compensation of the
member shall be paid to the retirement fund for the fiscal year
beginning July 1, 1995.
(8) Notwithstanding any other provision of this chapter,
beginning July 1, 1996, and each fiscal year thereafter, an amount
equal to the member's contribution rate times each member's
compensation shall be paid to the retirement fund from the earnable
compensation of the member. For the purposes of this subparagraph,
the member's contribution rate shall be nine and thirty-five
hundredths percent. However, the system shall increase the member's
contribution rate as necessary to cover any increase in cost to the
system resulting from statutory changes which are enacted by any
session of the general assembly meeting after January 1, 1995, if the
increase cannot be absorbed within the contribution rates otherwise
established pursuant to this paragraph, but subject to a maximum
employee contribution rate of eleven and three-tenths percent. After
the employee contribution reaches eleven and three-tenths percent,
sixty percent of the additional cost of such statutory changes shall
be paid by the employer under paragraph "c" and forty percent of
the additional cost shall be paid by employees under this
subparagraph (8).
f. (1) The board of trustees shall certify to the director of
the department of administrative services and the director of the
department of administrative services shall cause to be deducted from
the earnable compensation of each member the contribution required
under this subsection and shall forward the contributions to the
board of trustees for recording and for deposit in the retirement
fund.
(2) The deductions provided for under this subsection shall be
made notwithstanding that the minimum compensation provided by law
for any member is reduced. Every member is deemed to consent to the
deductions made under this section.
g. Notwithstanding the provisions of paragraph "e", the
following transition percentages apply to members' contributions as
specified:
(1) For members who on July 1, 1990, have attained the age of
forty-nine years or more, an amount equal to nine and one-tenth
percent of each member's compensation from the earnable compensation
of the member shall be paid to the retirement fund for the fiscal
period beginning July 1, 1990, through October 15, 1992, and
commencing October 16, 1992, and for each subsequent fiscal period,
the rates specified in paragraph "e", subparagraphs (4) through
(8), shall apply.
(2) For members who on July 1, 1990, have attained the age of
forty-eight years but have not attained the age of forty-nine years,
an amount equal to eight and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, and an amount equal to nine and
one-tenth percent shall be paid for the fiscal period beginning July
1, 1991, through October 15, 1992, and commencing October 16, 1992,
and for each subsequent fiscal period, the rates specified in
paragraph "e", subparagraphs (4) through (8), shall apply.
(3) For members who on July 1, 1990, have attained the age of
forty-seven years but have not attained the age of forty-eight years,
an amount equal to seven and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to eight and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to nine and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "e", subparagraphs (4)
through (8), shall apply.
(4) For members who on July 1, 1990, have attained the age of
forty-six years but have not attained the age of forty-seven years,
an amount equal to six and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to seven and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, an amount equal to eight and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "e", subparagraphs (4)
through (8), shall apply.
(5) For members who on July 1, 1990, have attained the age of
forty-five years but have not attained the age of forty-six years, an
amount equal to five and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to six and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to seven and one-tenth percent shall be
paid for the fiscal period beginning July 1, 1992, through October
15, 1992. Commencing October 16, 1992, and for each subsequent
fiscal period, the rates specified in paragraph "e",
subparagraphs (4) through (8), shall apply.
h. (1) Notwithstanding paragraph "f" or other provisions
of this chapter, beginning January 1, 1995, for federal income tax
purposes, and beginning January 1, 1999, for state income tax
purposes, member contributions required under paragraph "e" or
"g" which are picked up by the department shall be considered
employer contributions for federal and state income tax purposes, and
the department shall pick up the member contributions to be made
under paragraph "e" or "g" by its employees. The department
shall pick up these contributions by reducing the salary of each of
its employees covered by this chapter by the amount which each
employee is required to contribute under paragraph "e" or "g"
and shall certify the amount picked up in lieu of the member
contributions to the department of administrative services. The
department of administrative services shall forward the amount of the
contributions picked up to the board of trustees for recording and
deposit in the retirement fund.
(2) Member contributions picked up by the department under
subparagraph (1) shall be treated as employer contributions for
federal and state income tax purposes only and for all other purposes
of this chapter shall be treated as employee contributions and deemed
part of the employee's earnable compensation or salary.
2. a. All the expenses necessary in connection with the
administration and operation of the system shall be paid from the
retirement fund. Investment management expenses shall be charged to
the investment income of the system and there is appropriated from
the system an amount required for the investment management expenses.
The board of trustees shall report the investment management expenses
for the fiscal year as a percent of the market value of the system.
b. For purposes of this subsection, investment management
expenses are limited to the following:
(1) Fees for investment advisors, consultants, and investment
management and benefit consultant firms hired by the board of
trustees in administering this chapter.
(2) Fees and costs for safekeeping fund assets.
(3) Costs for performance and compliance monitoring, and
accounting for fund investments.
(4) Any other costs necessary to prudently invest or protect the
assets of the fund.
97A.8 METHOD OF FINANCING.
There is hereby created as a special fund, separate and apart from
all other public moneys or funds of this state, the peace officers'
retirement, accident, and disability system retirement fund,
hereafter called the "retirement fund". All the assets of the
system created and established by this chapter shall be credited to
the retirement fund.
1. All moneys for the payment of all pensions and other benefits
payable from contributions made by the state and from which shall be
paid the lump-sum death benefits for all members payable from the
said contributions shall be accumulated in the retirement fund. The
refunds and benefits for all members and beneficiaries shall be
payable from the retirement fund. Contributions to and payments from
the retirement fund shall be as follows:
a. On account of each member there shall be paid annually
into the retirement fund by the state of Iowa an amount equal to a
certain percentage of the earnable compensation of the member to be
known as the "normal contribution". The rate percent of such
contribution shall be fixed on the basis of the liabilities of the
retirement system as shown by annual actuarial valuations.
b. (1) On the basis of the actuarial methods and assumptions,
rate of interest, and of the mortality, interest, and other tables
adopted by the board of trustees, the board of trustees, upon the
advice of the actuary hired by the board for that purpose, shall make
each valuation required by this chapter pursuant to the requirements
of section 97A.5 and shall immediately after making such valuation,
determine the "normal contribution rate". The normal contribution
rate shall be the rate percent of the earnable compensation of all
members equal to the rate required by the system to discharge its
liabilities, stated as a percentage of the earnable compensation of
all members, and reduced by the employee contribution rate provided
in this subsection. However, the normal rate of contribution shall
not be less than seventeen percent.
(2) Notwithstanding the provisions of subparagraph (1) to the
contrary, the normal contribution rate shall be as follows:
(a) For the fiscal year beginning July 1, 2008, nineteen percent.
(b) For the fiscal year beginning July 1, 2009, twenty-one
percent.
(c) For the fiscal year beginning July 1, 2010, twenty-three
percent.
(d) For the fiscal year beginning July 1, 2011, twenty-five
percent.
(e) For each fiscal year beginning on or after July 1, 2012, the
lesser of twenty-seven percent or the normal contribution rate as
calculated pursuant to subparagraph (1).
c. The total amount payable in each year to the retirement
fund shall not be less than the rate percent known as the normal
contribution rate of the total compensation earnable by all members
during the year. However, the aggregate payment by the state shall
be sufficient when combined with the amount in the retirement fund to
provide the pensions and other benefits payable out of the retirement
fund during the then current year.
d. All lump-sum death benefits on account of death in active
service payable from contributions of the state shall be paid from
the retirement fund.
e. Except as otherwise provided in paragraph "g":
(1) An amount equal to three and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1989.
(2) An amount equal to four and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1990.
(3) An amount equal to five and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1991.
(4) An amount equal to six and one-tenth percent of each member's
compensation from the earnable compensation of the member shall be
paid to the retirement fund for the fiscal year beginning July 1,
1992.
(5) An amount equal to seven and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal year beginning
July 1, 1993.
(6) An amount equal to eight and one-tenth percent of each
member's compensation from the earnable compensation of the member
shall be paid to the retirement fund for the fiscal period beginning
July 1, 1994, through December 31, 1994, and an amount equal to eight
and thirty-five hundredths percent of each member's compensation from
the earnable compensation of the member shall be paid to the
retirement fund for the fiscal period beginning January 1, 1995,
through June 30, 1995.
(7) An amount equal to nine and thirty-five hundredths percent of
each member's compensation from the earnable compensation of the
member shall be paid to the retirement fund for the fiscal year
beginning July 1, 1995.
(8) Notwithstanding any other provision of this chapter,
beginning July 1, 1996, and each fiscal year thereafter, an amount
equal to the member's contribution rate times each member's
compensation shall be paid to the retirement fund from the earnable
compensation of the member. For the purposes of this subparagraph,
the member's contribution rate shall be nine and thirty-five
hundredths percent. However, the system shall increase the member's
contribution rate as necessary to cover any increase in cost to the
system resulting from statutory changes which are enacted by any
session of the general assembly meeting after January 1, 1995, if the
increase cannot be absorbed within the contribution rates otherwise
established pursuant to this paragraph, but subject to a maximum
employee contribution rate of eleven and three-tenths percent. After
the employee contribution reaches eleven and three-tenths percent,
sixty percent of the additional cost of such statutory changes shall
be paid by the employer under paragraph "c" and forty percent of
the additional cost shall be paid by employees under this
subparagraph (8).
f. (1) The board of trustees shall certify to the director of
the department of administrative services and the director of the
department of administrative services shall cause to be deducted from
the earnable compensation of each member the contribution required
under this subsection and shall forward the contributions to the
board of trustees for recording and for deposit in the retirement
fund.
(2) The deductions provided for under this subsection shall be
made notwithstanding that the minimum compensation provided by law
for any member is reduced. Every member is deemed to consent to the
deductions made under this section.
g. Notwithstanding the provisions of paragraph "e", the
following transition percentages apply to members' contributions as
specified:
(1) For members who on July 1, 1990, have attained the age of
forty-nine years or more, an amount equal to nine and one-tenth
percent of each member's compensation from the earnable compensation
of the member shall be paid to the retirement fund for the fiscal
period beginning July 1, 1990, through October 15, 1992, and
commencing October 16, 1992, and for each subsequent fiscal period,
the rates specified in paragraph "e", subparagraphs (4) through
(8), shall apply.
(2) For members who on July 1, 1990, have attained the age of
forty-eight years but have not attained the age of forty-nine years,
an amount equal to eight and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, and an amount equal to nine and
one-tenth percent shall be paid for the fiscal period beginning July
1, 1991, through October 15, 1992, and commencing October 16, 1992,
and for each subsequent fiscal period, the rates specified in
paragraph "e", subparagraphs (4) through (8), shall apply.
(3) For members who on July 1, 1990, have attained the age of
forty-seven years but have not attained the age of forty-eight years,
an amount equal to seven and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to eight and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to nine and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "e", subparagraphs (4)
through (8), shall apply.
(4) For members who on July 1, 1990, have attained the age of
forty-six years but have not attained the age of forty-seven years,
an amount equal to six and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to seven and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, an amount equal to eight and one-tenth percent shall be paid
for the fiscal period beginning July 1, 1992, through October 15,
1992, and commencing October 16, 1992, and for each subsequent fiscal
period, the rates specified in paragraph "e", subparagraphs (4)
through (8), shall apply.
(5) For members who on July 1, 1990, have attained the age of
forty-five years but have not attained the age of forty-six years, an
amount equal to five and one-tenth percent shall be paid for the
fiscal year beginning July 1, 1990, an amount equal to six and
one-tenth percent shall be paid for the fiscal year beginning July 1,
1991, and an amount equal to seven and one-tenth percent shall be
paid for the fiscal period beginning July 1, 1992, through October
15, 1992. Commencing October 16, 1992, and for each subsequent
fiscal period, the rates specified in paragraph "e",
subparagraphs (4) through (8), shall apply.
h. (1) Notwithstanding paragraph "f" or other provisions
of this chapter, beginning January 1, 1995, for federal income tax
purposes, and beginning January 1, 1999, for state income tax
purposes, member contributions required under paragraph "e" or
"g" which are picked up by the department shall be considered
employer contributions for federal and state income tax purposes, and
the department shall pick up the member contributions to be made
under paragraph "e" or "g" by its employees. The department
shall pick up these contributions by reducing the salary of each of
its employees covered by this chapter by the amount which each
employee is required to contribute under paragraph "e" or "g"
and shall certify the amount picked up in lieu of the member
contributions to the department of administrative services. The
department of administrative services shall forward the amount of the
contributions picked up to the board of trustees for recording and
deposit in the retirement fund.
(2) Member contributions picked up by the department under
subparagraph (1) shall be treated as employer contributions for
federal and state income tax purposes only and for all other purposes
of this chapter shall be treated as employee contributions and deemed
part of the employee's earnable compensation or salary.
2. a. All the expenses necessary in connection with the
administration and operation of the system shall be paid from the
retirement fund. Investment management expenses shall be charged to
the investment income of the system and there is appropriated from
the system an amount required for the investment management expenses.
The board of trustees shall report the investment management expenses
for the fiscal year as a percent of the market value of the system.
b. For purposes of this subsection, investment management
expenses are limited to the following:
(1) Fees for investment advisors, consultants, and investment
management and benefit consultant firms hired by the board of
trustees in administering this chapter.
(2) Fees and costs for safekeeping fund assets.
(3) Costs for performance and compliance monitoring, and
accounting for fund investments.
(4) Any other costs necessary to prudently invest or protect the
assets of the fund.
