97B.1A DEFINITIONS.
When used in this chapter:
1. "Abolished system" means the Iowa old-age and survivors'
insurance system repealed by sections 97.50 to 97.53.
2. "Accumulated contributions" means the total obtained as of
any date, by accumulating each individual contribution by the member
with interest plus interest dividends as provided in section 97B.70,
for all completed calendar years and for any completed calendar year
for which the interest dividend has not been declared and for
completed months of partially completed calendar years, compounded as
provided in section 97B.70.
2A. "Accumulated employer contributions" means an amount
equal to the total obtained as of any date, by accumulating each
individual contribution by the employer for the member with interest
plus interest dividends as provided in section 97B.70, for all
completed calendar years and for any completed calendar year for
which the interest dividend has not been declared and for completed
months of partially completed calendar years, compounded as provided
in section 97B.70.
3. "Active member" during a calendar year means a member who
made contributions to the retirement system at any time during the
calendar year and who:
a. Had not received or applied for a refund of the member's
accumulated contributions for withdrawal or death, and
b. Had not commenced receiving a retirement allowance.
4. "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such actuarial tables as are adopted by
the system.
5. "Beneficiary" means the person or persons who are entitled
to receive any benefits payable under this chapter at the death of a
member, if the person or persons have been designated on a form
provided by the system and filed with the system. If no such
designation is in effect at the time of death of the member or if no
person so designated is living at that time, then the beneficiary is
the estate of the member.
6. "Bona fide retirement" means a retirement by a vested
member which meets the requirements of section 97B.52A and in which
the member is eligible to receive benefits under this chapter.
7. "Contributions" means the payments to the fund required
herein, by the employer and by the members, to provide the benefits
of the retirement system.
8. "Employee" means an individual who is employed as defined
in this chapter for whom coverage under this chapter is mandatory.
a. "Employee" shall also include any of the following
individuals who do not elect out of coverage under this chapter
pursuant to section 97B.42A:
(1) Elective officials in positions for which the compensation is
on a fee basis, elective officials of school districts, elective
officials of townships, and elective officials of other political
subdivisions who are in part-time positions. An elective official
covered under this section may terminate membership under this
chapter by informing the system in writing of the expiration of the
member's term of office or by informing the system of the member's
intent to terminate membership for employment as an elective official
and establishing that the member has a bona fide termination of
employment from all employment covered under this chapter other than
as an elective official and that the member has filed a completed
application for benefits form with the system. A county attorney is
an employee for purposes of this chapter whether that county attorney
is employed on a full-time or part-time basis.
(2) Members of the general assembly of Iowa and temporary
employees of the general assembly of Iowa.
(a) A member of the general assembly covered under this chapter
may terminate membership under this chapter by informing the system
in writing of the member's intent to terminate membership.
(b) Temporary employees of the general assembly covered under
this chapter may terminate membership by sending written notification
to the system of their separation from service.
(3) Nonvested employees of drainage and levee districts.
(4) Employees of a community action program determined to be an
instrumentality of the state or a political subdivision.
(5) Magistrates.
(6) Members of the ministry, rabbinate, or other religious order
who have taken the vow of poverty.
(7) Persons employed as city managers, or as city administrators
performing the duties of city managers, under a form of city
government listed in chapter 372 or chapter 420.
(8) Members of the state transportation commission, the board of
parole, and the state health facilities council.
(9) Employees appointed by the state board of regents who do not
elect coverage in a retirement system qualified by the state board of
regents that meets the criteria of section 97B.2.
(10) Persons employed by the board of trustees for the statewide
fire and police retirement system established in section 411.36.
(11) Persons employed by a municipal water utility or waterworks
that has established a pension and annuity retirement system for its
employees pursuant to chapter 412.
b. "Employee" does not mean the following individuals:
(1) Individuals who are enrolled as students and whose primary
occupations are as students who are incidentally employed by
employers.
(2) Graduate medical students while serving as interns or
resident doctors in training at any hospital, or county medical
examiners and deputy county medical examiners under chapter 331,
division V, part 8, who are not full-time county employees.
(3) Employees hired for temporary employment of less than six
consecutive months or one thousand forty hours in a calendar year.
An employee who works for an employer for six or more consecutive
months or who works for an employer for more than one thousand forty
hours in a calendar year is not a temporary employee under this
subparagraph. Adjunct instructors are temporary employees for the
purposes of this chapter. As used in this section, unless the
context otherwise requires, "adjunct instructors" means
instructors employed by a community college or a university governed
by the state board of regents without a continuing contract, whose
teaching load does not exceed one-half time for two full semesters or
three full quarters per calendar year.
(4) Foreign exchange teachers and visitors including alien
scholars, trainees, professors, teachers, research assistants, and
specialists in their field of specialized knowledge or skill.
(5) Employees of the Iowa dairy industry commission established
under chapter 179, the Iowa beef cattle producers association
established under chapter 181, the Iowa pork producers council
established under chapter 183A, the Iowa turkey marketing council
established under chapter 184A, the Iowa soybean association as
provided in chapter 185, the Iowa corn promotion board established
under chapter 185C, and the Iowa egg council established under
chapter 184.
(6) Judicial hospitalization referees appointed under section
229.21.
(7) Employees of an area agency on aging, if as of July 1, 1994,
the agency provides for participation by all of its employees in an
alternative qualified plan pursuant to the requirements of the
federal Internal Revenue Code.
(8) Persons employed through any program described in section
84A.7 and provided by the Iowa conservation corps.
(9) Persons employed by the Iowa student loan liquidity
corporation.
9. "Employer" means the state of Iowa, the counties,
municipalities, agencies, public school districts, all political
subdivisions, and all of their departments and instrumentalities,
including area agencies on aging, other than those employing persons
as specified in subsection 8, paragraph "b", subparagraph (7),
and joint planning commissions created under chapter 28E or 28I.
If an interstate agency is established under chapter 28E and
similar enabling legislation in an adjoining state, and an employer
had made contributions to the retirement system for employees
performing functions which are transferred to the interstate agency,
the employees of the interstate agency who perform those functions
shall be considered to be employees of the employer for the sole
purpose of membership in the retirement system, although the employer
contributions for those employees are made by the interstate agency.
10. "Employment for any calendar quarter" means any service
performed under an employer-employee relationship under this chapter
for which wages are reported in the calendar quarter. For the
purposes of this chapter, elected officials are deemed to be in
employment for all quarters of the elected officials' respective
terms of office, even if the elected officials have selected a method
of payment of wages which results in the elected officials not being
credited with wages every quarter of a year.
11. "First month of entitlement" means the first month for
which a member is qualified to receive retirement benefits under this
chapter. Effective January 1, 1995, a member who meets all of the
following requirements is qualified to receive retirement benefits
under this chapter:
a. Has attained the minimum age for receipt of a retirement
allowance under this chapter.
b. If the member has not attained seventy years of age, has
terminated all employment covered under this chapter or formerly
covered under this chapter pursuant to section 97B.42 in the month
prior to the member's first month of entitlement.
c. Has filed a completed application for benefits with the
system setting forth the member's intended first month of
entitlement.
d. Has survived into the month for which the member's first
retirement allowance is payable by the retirement system.
11A. "Fully funded" means a funded ratio of at least one
hundred percent using the most recent actuarial valuation. For
purposes of this subsection, "funded ratio" means the ratio
produced by dividing the lesser of the actuarial value of the
system's assets or the market value of the system's assets, by the
system's actuarial liabilities, using the actuarial method adopted by
the investment board pursuant to section 97B.8A, subsection 3.
12. "Inactive member" with respect to future service means a
member who at the end of a year had not made any contributions during
the current year and who has not received a refund of the member's
accumulated contributions.
13. "Internal Revenue Code" means the Internal Revenue Code
as defined in section 422.3.
14. "Member" means an employee or a former employee who
maintains the employee's or former employee's accumulated
contributions in the retirement system. The former employee is not a
member if the former employee has received a refund of the former
employee's accumulated contributions.
14A. "Member account" means the account established for each
member and includes the member's accumulated contributions and the
member's share of the accumulated employer contributions as provided
in section 97B.53. "Member account" does not mean the
supplemental account for active members.
15. "Membership service" means service rendered by a member
after July 4, 1953. Years of membership service shall be counted to
the complete quarter calendar year. However, membership service for
a calendar year shall not include more than four quarters. In
determining a member's period of membership service, the system shall
combine all periods of service for which the member has made
contributions.
16. "Prior service" means any service by an employee rendered
at any time prior to July 4, 1953.
17. "Regular service" means service for an employer other
than special service.
18. "Retired member" means a member who has applied for the
member's retirement allowance and has survived into at least the
first day of the member's first month of entitlement.
19. "Retirement" means that period of time beginning when a
member who has filed an approved application for a retirement
allowance has survived into at least the first day of the member's
first month of entitlement and ending when the member dies.
19A. "Retirement system" means the retirement plan as
contained in this chapter or as duly amended.
20. "Service" means service under this chapter by an
employee, except an elected official, for which the employee is paid
covered wages. Service shall also mean the following:
a. Service in the armed forces of the United States, if the
employee was employed by a covered employer immediately prior to
entry into the armed forces, and if any of the following requirements
are met:
(1) The employee was released from service and returns to covered
employment with an employer within twelve months of the date on which
the employee has the right of release from service or within a longer
period as required by the applicable laws of the United States.
(2) The employee, while serving on active duty in the armed
forces of the United States in an area designated by the president of
the United States or the United States Congress as a combat zone or
as a qualified hazardous duty area, or deployed outside the United
States away from the individual's permanent duty station while
participating in an operation designated by the United States
secretary of defense as a contingency operation as defined in 10
U.S.C. § 101(a)(13), or which became such a contingency operation by
the operation of law, dies, or suffers an injury or acquires a
disease resulting in death, so long as the death from the injury or
disease occurs within a two-year period from the date the employee
suffered the active duty injury or disease and the active duty injury
or disease prevented the employee from returning to covered
employment as provided in subparagraph (1).
b. Leave of absence authorized by the employer prior to July
1, 1998, for a period not exceeding twelve months and ending no later
than July 1, 1999.
c. A leave of absence authorized pursuant to the requirements
of the federal Family and Medical Leave Act of 1993, or other similar
leave authorized by the employer for a period not to exceed twelve
weeks in any calendar year.
d. Temporary or seasonal interruptions in service for
employees of a school corporation or educational institution when the
temporary suspension of service does not terminate the period of
employment of the employee and the employee returns to service at a
school corporation or educational institution upon the end of the
temporary or seasonal interruption.
However, effective July 1, 2004, "service" does not mean
service for which an employee receives remuneration from an employer
for temporary employment during any quarter in which the employee is
on an otherwise unpaid leave of absence that is not authorized under
the federal Family and Medical Leave Act of 1993 or other similar
leave. Remuneration paid by the employer for the temporary
employment shall not be treated by the system as covered wages.
e. Employment with an employer prior to January 1, 1946, if
the member is not receiving a retirement allowance based upon that
employment.
21. "Service" for an elected official means the period of
membership service for which contributions are made beginning on the
date an elected official assumes office and ending on the expiration
date of the last term the elected official serves, excluding all the
intervening periods during which the elected official is not an
elected official.
22. "Special service" means service for an employer while
employed in a protection occupation as provided in section 97B.49B,
and as a county sheriff or deputy sheriff as provided in section
97B.49C.
22A. "Supplemental account for active members" or
"supplemental account" means the account established for each
active member under section 97B.49H.
23. Reserved.
24. a. "Three-year average covered wage" means a member's
covered wages averaged for the highest three years of the member's
service, except as otherwise provided in this subsection. The
highest three years of a member's covered wages shall be determined
using calendar years. However, if a member's final quarter of a year
of employment does not occur at the end of a calendar year, the
system may determine the wages for the third year by computing the
average quarter of all quarters from the member's highest calendar
year of covered wages not being used in the selection of the two
highest years and using the computed average quarter for each quarter
in the third year in which no wages have been reported in combination
with the final quarter or quarters of the member's service to create
a full year. However, the system shall not use the member's final
quarter of wages if using that quarter would reduce the member's
three-year average covered wage. If the three-year average covered
wage of a member exceeds the highest maximum covered wages in effect
for a calendar year during the member's period of service, the
three-year average covered wage of the member shall be reduced to the
highest maximum covered wages in effect during the member's period of
service. Notwithstanding any other provision of this paragraph to
the contrary, a member's wages for the third year as computed by this
paragraph shall not exceed, by more than three percent, the member's
highest actual calendar year of covered wages for a member whose
first month of entitlement is January 1999 or later.
b. (1) Notwithstanding any other provisions of this
subsection to the contrary, the three-year average covered wage shall
be computed as follows for the following members:
(a) For a member who retires during the calendar year beginning
January 1, 1997, and whose three-year average covered wage at the
time of retirement exceeds forty-eight thousand dollars, the member's
covered wages averaged for the highest four years of the member's
service or forty-eight thousand dollars, whichever is greater.
(b) For a member who retires during the calendar year beginning
January 1, 1998, and whose three-year average covered wage at the
time of retirement exceeds fifty-two thousand dollars, the member's
covered wages averaged for the highest five years of the member's
service or fifty-two thousand dollars, whichever is greater.
(c) For a member who retires during the calendar year beginning
January 1, 1999, and whose three-year average covered wage at the
time of retirement exceeds fifty-five thousand dollars, the member's
covered wages averaged for the highest six years of the member's
service or fifty-five thousand dollars, whichever is greater.
(d) For a member who retires on or after January 1, 2000, but
before January 1, 2001, and whose three-year average covered wage at
the time of retirement exceeds sixty-five thousand dollars, the
member's covered wages averaged for the highest six years of the
member's service or sixty-five thousand dollars, whichever is
greater.
(e) For a member who retires on or after January 1, 2001, but
before January 1, 2002, and whose three-year average covered wage at
the time of retirement exceeds seventy-five thousand dollars, the
member's covered wages averaged for the highest six years of the
member's service or seventy-five thousand dollars, whichever is
greater.
(2) For purposes of this paragraph, the highest years of the
member's service shall be determined using calendar years and may be
determined using one computed year calculated in the manner and
subject to the restrictions provided in paragraph "a".
c. Notwithstanding any other provisions of this subsection to
the contrary, for a member who retires on or after July 1, 2007, the
member's three-year average covered wage shall be the lesser of the
three-year average covered wage as calculated pursuant to paragraph
"a" and the adjusted covered wage amount. For purposes of this
paragraph, the adjusted covered wage amount shall be the greater of
the member's three-year average covered wage calculated pursuant to
paragraph "a" as of July 1, 2007, and an amount equal to one
hundred twenty-one percent of the member's applicable calendar year
wages. The member's applicable calendar year wages shall be the
member's highest full calendar year of covered wages not used in the
calculation of the member's three-year average covered wage pursuant
to paragraph "a", or, if the member does not have another full
calendar year of covered wages that was not used in the calculation
of the three-year average covered wage under paragraph "a", the
lowest full calendar year of covered wages that was used in the
calculation of the member's three-year average covered wage pursuant
to paragraph "a".
25. a. "Vested member" means a member who has attained
through age or sufficient years of service eligibility to receive
monthly retirement benefits upon the member's retirement. A vested
member must meet one of the following requirements:
(1) Prior to July 1, 1965, had attained the age of forty-eight
and completed at least eight years of service.
(2) Between July 1, 1965, and June 30, 1973, had completed at
least eight years of service.
(3) On or after July 1, 1973, has completed at least four years
of service.
(4) Has attained the age of fifty-five. However, an inactive
member who has not attained sufficient years of service eligibility
to become vested and who has not attained the age of fifty-five as of
July 1, 2005, shall not become vested upon the attainment of the age
of fifty-five while an inactive member.
(5) On or after July 1, 1988, an inactive member who had
accumulated, as of the date of the member's last termination of
employment, years of membership service equal to or exceeding the
years of membership service specified in this subsection for
qualifying as a vested member on that date of termination.
b. "Active vested member" means an active member who has
attained sufficient membership service to achieve vested status.
c. "Inactive vested member" means an inactive member who was
a vested member at the time of termination of employment.
26. a. (1) "Wages" means all remuneration for employment,
including but not limited to any of the following:
(a) The cash value of wage equivalents not necessitated by the
convenience of the employer. The fair market value of such wage
equivalents shall be reported to the system by the employer.
(b) The remuneration paid to an employee before employee-paid
contributions are made to plans qualified under sections 125, 129,
401, 403, 408, and 457 of the Internal Revenue Code. In addition,
"wages" includes amounts that can be received in cash in lieu of
employer-paid contributions to such plans, if the election is
uniformly available and is not limited to highly compensated
employees, as defined in section 414(q) of the Internal Revenue Code.
(c) For an elected official, other than a member of the general
assembly, the total compensation received by the elected official,
whether paid in the form of per diem or annual salary, exclusive of
expense and travel allowances.
(d) For a member of the general assembly, the total compensation
received by a member of the general assembly, whether paid in the
form of per diem or annual salary, exclusive of expense and travel
allowances paid to a member of the general assembly except as
otherwise provided in this subparagraph division. Wages includes per
diem payments paid to members of the general assembly during interim
periods between sessions of the general assembly. Wages also
includes daily allowances to members of the general assembly for
nontravel expenses of office during a session of the general
assembly, but does not include the portion of the daily allowance
which exceeds the maximum established by law for members from Polk
county.
(e) Payments for compensatory time earned that are received in
lieu of taking regular work hours off and when paid as a lump sum.
However, "wages" does not include payments made in a lump sum for
compensatory time earned in excess of two hundred forty hours per
year.
(f) Employee contributions required under section 97B.11 and
picked up by the employer under section 97B.11A.
(2) "Wages" does not include any of the following:
(a) The cash value of wage equivalents necessitated by the
convenience of the employer.
(b) Payments made for accrued sick leave or accrued vacation
leave that are not being used to replace regular work hours, whether
paid in a lump sum or in installments.
(c) Payments made as an incentive for early retirement or as
payment made upon dismissal or severance from employment, or a
special bonus payment intended as an early retirement incentive,
whether paid in a lump sum or in installments.
(d) Employer-paid contributions that cannot be received by the
employee in cash and that are made to, and any distributions from,
plans, programs, or arrangements qualified under section 117, 120,
125, 129, 401, 403, 408, or 457 of the Internal Revenue Code.
(e) Employer-paid contributions for coverage under, or
distributions from, an accident, health, or life insurance plan,
program, or arrangement.
(f) Workers' compensation and unemployment compensation payments.
(g) Disability payments.
(h) Reimbursements of employee business expenses except for those
expenses included as wages for a member of the general assembly.
(i) Payments for allowances except for those allowances included
as wages for a member of the general assembly.
(j) Payments of damages, attorney fees, interest, and penalties
made to satisfy a grievance, wage claim, or employment dispute.
(k) Payments for services as an independent contractor.
(l) Payments made by an entity that is not an employer under this
chapter.
(m) Payments made in lieu of any employer-paid group insurance
coverage.
(n) Bonuses of any type, whether paid in a lump sum or in
installments.
b. (1) "Covered wages" means wages of a member during the
periods of membership service as follows:
(a) For the period from July 4, 1953, through December 31, 1953,
and each calendar year from January 1, 1954, through December 31,
1963, wages not in excess of four thousand dollars.
(b) For each calendar year from January 1, 1964, through December
31, 1967, wages not in excess of four thousand eight hundred dollars.
(c) For each calendar year from January 1, 1968, through December
31, 1970, wages not in excess of seven thousand dollars, for each
calendar year from January 1, 1971, through December 31, 1972, wages
not in excess of seven thousand eight hundred dollars, and for each
calendar year from January 1, 1973, through December 31, 1975, wages
not in excess of ten thousand eight hundred dollars.
(d) For each calendar year from January 1, 1976, through December
31, 1983, wages not in excess of twenty thousand dollars.
(e) For each calendar year from January 1, 1984, through December
31, 1985, wages not in excess of twenty-one thousand dollars per
year.
(f) For the calendar year from January 1, 1986, through December
31, 1986, wages not in excess of twenty-two thousand dollars.
(g) For the calendar year from January 1, 1987, through December
31, 1987, wages not in excess of twenty-three thousand dollars.
(h) For the calendar year beginning January 1, 1988, and ending
December 31, 1988, wages not in excess of twenty-four thousand
dollars.
(i) For the calendar year beginning January 1, 1989, and ending
December 31, 1989, wages not in excess of twenty-six thousand
dollars.
(j) For the calendar year beginning January 1, 1990, and ending
December 31, 1990, wages not in excess of twenty-eight thousand
dollars.
(k) For the calendar year beginning January 1, 1991, wages not in
excess of thirty-one thousand dollars.
(l) For the calendar year beginning January 1, 1992, wages not in
excess of thirty-four thousand dollars.
(m) For the calendar year beginning January 1, 1993, wages not in
excess of thirty-five thousand dollars.
(n) For the calendar year beginning January 1, 1994, wages not in
excess of thirty-eight thousand dollars.
(o) For the calendar year beginning January 1, 1995, wages not in
excess of forty-one thousand dollars.
(p) For the calendar year beginning January 1, 1996, wages not in
excess of forty-four thousand dollars.
(q) Commencing with the calendar year beginning January 1, 1997,
and for each subsequent calendar year, wages not in excess of the
amount permitted for that year under section 401(a)(17) of the
Internal Revenue Code.
(2) Notwithstanding any other provision of this chapter providing
for the payment of the benefits provided in section 97B.49B, 97B.49C,
97B.49D, or 97B.49G, the system shall establish the covered wages
limitation which applies to members covered under section 97B.49B,
97B.49C, 97B.49D, or 97B.49G, at the same level as is established
under this subparagraph for other members of the retirement system.
(3) Effective July 1, 1992, "covered wages" does not include
wages to a member on or after the effective date of the member's
retirement, except as otherwise permitted by the system's
administrative rules, unless the member is reemployed, as provided
under section 97B.48A.
(4) If a member is employed by more than one employer during a
calendar year, the total amount of wages paid to the member by the
several employers shall be included in determining the limitation on
covered wages as provided in this lettered paragraph. If the amount
of wages paid to a member by the member's several employers during a
calendar year exceeds the covered wage limit, the amount of such
excess shall not be subject to the contributions required by section
97B.11.
27. "Years of prior service" means the total of all periods
of prior service of a member. In computing credit for prior service,
service of less than a full quarter shall be rounded up to a full
quarter. Where a member had prior service as a teacher, a full year
of service shall be granted that member if the member had three
quarters of service and a contract for employment for the following
school year.
97B.1A DEFINITIONS.
When used in this chapter:
1. "Abolished system" means the Iowa old-age and survivors'
insurance system repealed by sections 97.50 to 97.53.
2. "Accumulated contributions" means the total obtained as of
any date, by accumulating each individual contribution by the member
with interest plus interest dividends as provided in section 97B.70,
for all completed calendar years and for any completed calendar year
for which the interest dividend has not been declared and for
completed months of partially completed calendar years, compounded as
provided in section 97B.70.
2A. "Accumulated employer contributions" means an amount
equal to the total obtained as of any date, by accumulating each
individual contribution by the employer for the member with interest
plus interest dividends as provided in section 97B.70, for all
completed calendar years and for any completed calendar year for
which the interest dividend has not been declared and for completed
months of partially completed calendar years, compounded as provided
in section 97B.70.
3. "Active member" during a calendar year means a member who
made contributions to the retirement system at any time during the
calendar year and who:
a. Had not received or applied for a refund of the member's
accumulated contributions for withdrawal or death, and
b. Had not commenced receiving a retirement allowance.
4. "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such actuarial tables as are adopted by
the system.
5. "Beneficiary" means the person or persons who are entitled
to receive any benefits payable under this chapter at the death of a
member, if the person or persons have been designated on a form
provided by the system and filed with the system. If no such
designation is in effect at the time of death of the member or if no
person so designated is living at that time, then the beneficiary is
the estate of the member.
6. "Bona fide retirement" means a retirement by a vested
member which meets the requirements of section 97B.52A and in which
the member is eligible to receive benefits under this chapter.
7. "Contributions" means the payments to the fund required
herein, by the employer and by the members, to provide the benefits
of the retirement system.
8. "Employee" means an individual who is employed as defined
in this chapter for whom coverage under this chapter is mandatory.
a. "Employee" shall also include any of the following
individuals who do not elect out of coverage under this chapter
pursuant to section 97B.42A:
(1) Elective officials in positions for which the compensation is
on a fee basis, elective officials of school districts, elective
officials of townships, and elective officials of other political
subdivisions who are in part-time positions. An elective official
covered under this section may terminate membership under this
chapter by informing the system in writing of the expiration of the
member's term of office or by informing the system of the member's
intent to terminate membership for employment as an elective official
and establishing that the member has a bona fide termination of
employment from all employment covered under this chapter other than
as an elective official and that the member has filed a completed
application for benefits form with the system. A county attorney is
an employee for purposes of this chapter whether that county attorney
is employed on a full-time or part-time basis.
(2) Members of the general assembly of Iowa and temporary
employees of the general assembly of Iowa.
(a) A member of the general assembly covered under this chapter
may terminate membership under this chapter by informing the system
in writing of the member's intent to terminate membership.
(b) Temporary employees of the general assembly covered under
this chapter may terminate membership by sending written notification
to the system of their separation from service.
(3) Nonvested employees of drainage and levee districts.
(4) Employees of a community action program determined to be an
instrumentality of the state or a political subdivision.
(5) Magistrates.
(6) Members of the ministry, rabbinate, or other religious order
who have taken the vow of poverty.
(7) Persons employed as city managers, or as city administrators
performing the duties of city managers, under a form of city
government listed in chapter 372 or chapter 420.
(8) Members of the state transportation commission, the board of
parole, and the state health facilities council.
(9) Employees appointed by the state board of regents who do not
elect coverage in a retirement system qualified by the state board of
regents that meets the criteria of section 97B.2.
(10) Persons employed by the board of trustees for the statewide
fire and police retirement system established in section 411.36.
(11) Persons employed by a municipal water utility or waterworks
that has established a pension and annuity retirement system for its
employees pursuant to chapter 412.
b. "Employee" does not mean the following individuals:
(1) Individuals who are enrolled as students and whose primary
occupations are as students who are incidentally employed by
employers.
(2) Graduate medical students while serving as interns or
resident doctors in training at any hospital, or county medical
examiners and deputy county medical examiners under chapter 331,
division V, part 8, who are not full-time county employees.
(3) Employees hired for temporary employment of less than six
consecutive months or one thousand forty hours in a calendar year.
An employee who works for an employer for six or more consecutive
months or who works for an employer for more than one thousand forty
hours in a calendar year is not a temporary employee under this
subparagraph. Adjunct instructors are temporary employees for the
purposes of this chapter. As used in this section, unless the
context otherwise requires, "adjunct instructors" means
instructors employed by a community college or a university governed
by the state board of regents without a continuing contract, whose
teaching load does not exceed one-half time for two full semesters or
three full quarters per calendar year.
(4) Foreign exchange teachers and visitors including alien
scholars, trainees, professors, teachers, research assistants, and
specialists in their field of specialized knowledge or skill.
(5) Employees of the Iowa dairy industry commission established
under chapter 179, the Iowa beef cattle producers association
established under chapter 181, the Iowa pork producers council
established under chapter 183A, the Iowa turkey marketing council
established under chapter 184A, the Iowa soybean association as
provided in chapter 185, the Iowa corn promotion board established
under chapter 185C, and the Iowa egg council established under
chapter 184.
(6) Judicial hospitalization referees appointed under section
229.21.
(7) Employees of an area agency on aging, if as of July 1, 1994,
the agency provides for participation by all of its employees in an
alternative qualified plan pursuant to the requirements of the
federal Internal Revenue Code.
(8) Persons employed through any program described in section
84A.7 and provided by the Iowa conservation corps.
(9) Persons employed by the Iowa student loan liquidity
corporation.
9. "Employer" means the state of Iowa, the counties,
municipalities, agencies, public school districts, all political
subdivisions, and all of their departments and instrumentalities,
including area agencies on aging, other than those employing persons
as specified in subsection 8, paragraph "b", subparagraph (7),
and joint planning commissions created under chapter 28E or 28I.
If an interstate agency is established under chapter 28E and
similar enabling legislation in an adjoining state, and an employer
had made contributions to the retirement system for employees
performing functions which are transferred to the interstate agency,
the employees of the interstate agency who perform those functions
shall be considered to be employees of the employer for the sole
purpose of membership in the retirement system, although the employer
contributions for those employees are made by the interstate agency.
10. "Employment for any calendar quarter" means any service
performed under an employer-employee relationship under this chapter
for which wages are reported in the calendar quarter. For the
purposes of this chapter, elected officials are deemed to be in
employment for all quarters of the elected officials' respective
terms of office, even if the elected officials have selected a method
of payment of wages which results in the elected officials not being
credited with wages every quarter of a year.
11. "First month of entitlement" means the first month for
which a member is qualified to receive retirement benefits under this
chapter. Effective January 1, 1995, a member who meets all of the
following requirements is qualified to receive retirement benefits
under this chapter:
a. Has attained the minimum age for receipt of a retirement
allowance under this chapter.
b. If the member has not attained seventy years of age, has
terminated all employment covered under this chapter or formerly
covered under this chapter pursuant to section 97B.42 in the month
prior to the member's first month of entitlement.
c. Has filed a completed application for benefits with the
system setting forth the member's intended first month of
entitlement.
d. Has survived into the month for which the member's first
retirement allowance is payable by the retirement system.
11A. "Fully funded" means a funded ratio of at least one
hundred percent using the most recent actuarial valuation. For
purposes of this subsection, "funded ratio" means the ratio
produced by dividing the lesser of the actuarial value of the
system's assets or the market value of the system's assets, by the
system's actuarial liabilities, using the actuarial method adopted by
the investment board pursuant to section 97B.8A, subsection 3.
12. "Inactive member" with respect to future service means a
member who at the end of a year had not made any contributions during
the current year and who has not received a refund of the member's
accumulated contributions.
13. "Internal Revenue Code" means the Internal Revenue Code
as defined in section 422.3.
14. "Member" means an employee or a former employee who
maintains the employee's or former employee's accumulated
contributions in the retirement system. The former employee is not a
member if the former employee has received a refund of the former
employee's accumulated contributions.
14A. "Member account" means the account established for each
member and includes the member's accumulated contributions and the
member's share of the accumulated employer contributions as provided
in section 97B.53. "Member account" does not mean the
supplemental account for active members.
15. "Membership service" means service rendered by a member
after July 4, 1953. Years of membership service shall be counted to
the complete quarter calendar year. However, membership service for
a calendar year shall not include more than four quarters. In
determining a member's period of membership service, the system shall
combine all periods of service for which the member has made
contributions.
16. "Prior service" means any service by an employee rendered
at any time prior to July 4, 1953.
17. "Regular service" means service for an employer other
than special service.
18. "Retired member" means a member who has applied for the
member's retirement allowance and has survived into at least the
first day of the member's first month of entitlement.
19. "Retirement" means that period of time beginning when a
member who has filed an approved application for a retirement
allowance has survived into at least the first day of the member's
first month of entitlement and ending when the member dies.
19A. "Retirement system" means the retirement plan as
contained in this chapter or as duly amended.
20. "Service" means service under this chapter by an
employee, except an elected official, for which the employee is paid
covered wages. Service shall also mean the following:
a. Service in the armed forces of the United States, if the
employee was employed by a covered employer immediately prior to
entry into the armed forces, and if any of the following requirements
are met:
(1) The employee was released from service and returns to covered
employment with an employer within twelve months of the date on which
the employee has the right of release from service or within a longer
period as required by the applicable laws of the United States.
(2) The employee, while serving on active duty in the armed
forces of the United States in an area designated by the president of
the United States or the United States Congress as a combat zone or
as a qualified hazardous duty area, or deployed outside the United
States away from the individual's permanent duty station while
participating in an operation designated by the United States
secretary of defense as a contingency operation as defined in 10
U.S.C. § 101(a)(13), or which became such a contingency operation by
the operation of law, dies, or suffers an injury or acquires a
disease resulting in death, so long as the death from the injury or
disease occurs within a two-year period from the date the employee
suffered the active duty injury or disease and the active duty injury
or disease prevented the employee from returning to covered
employment as provided in subparagraph (1).
b. Leave of absence authorized by the employer prior to July
1, 1998, for a period not exceeding twelve months and ending no later
than July 1, 1999.
c. A leave of absence authorized pursuant to the requirements
of the federal Family and Medical Leave Act of 1993, or other similar
leave authorized by the employer for a period not to exceed twelve
weeks in any calendar year.
d. Temporary or seasonal interruptions in service for
employees of a school corporation or educational institution when the
temporary suspension of service does not terminate the period of
employment of the employee and the employee returns to service at a
school corporation or educational institution upon the end of the
temporary or seasonal interruption.
However, effective July 1, 2004, "service" does not mean
service for which an employee receives remuneration from an employer
for temporary employment during any quarter in which the employee is
on an otherwise unpaid leave of absence that is not authorized under
the federal Family and Medical Leave Act of 1993 or other similar
leave. Remuneration paid by the employer for the temporary
employment shall not be treated by the system as covered wages.
e. Employment with an employer prior to January 1, 1946, if
the member is not receiving a retirement allowance based upon that
employment.
21. "Service" for an elected official means the period of
membership service for which contributions are made beginning on the
date an elected official assumes office and ending on the expiration
date of the last term the elected official serves, excluding all the
intervening periods during which the elected official is not an
elected official.
22. "Special service" means service for an employer while
employed in a protection occupation as provided in section 97B.49B,
and as a county sheriff or deputy sheriff as provided in section
97B.49C.
22A. "Supplemental account for active members" or
"supplemental account" means the account established for each
active member under section 97B.49H.
23. Reserved.
24. a. "Three-year average covered wage" means a member's
covered wages averaged for the highest three years of the member's
service, except as otherwise provided in this subsection. The
highest three years of a member's covered wages shall be determined
using calendar years. However, if a member's final quarter of a year
of employment does not occur at the end of a calendar year, the
system may determine the wages for the third year by computing the
average quarter of all quarters from the member's highest calendar
year of covered wages not being used in the selection of the two
highest years and using the computed average quarter for each quarter
in the third year in which no wages have been reported in combination
with the final quarter or quarters of the member's service to create
a full year. However, the system shall not use the member's final
quarter of wages if using that quarter would reduce the member's
three-year average covered wage. If the three-year average covered
wage of a member exceeds the highest maximum covered wages in effect
for a calendar year during the member's period of service, the
three-year average covered wage of the member shall be reduced to the
highest maximum covered wages in effect during the member's period of
service. Notwithstanding any other provision of this paragraph to
the contrary, a member's wages for the third year as computed by this
paragraph shall not exceed, by more than three percent, the member's
highest actual calendar year of covered wages for a member whose
first month of entitlement is January 1999 or later.
b. (1) Notwithstanding any other provisions of this
subsection to the contrary, the three-year average covered wage shall
be computed as follows for the following members:
(a) For a member who retires during the calendar year beginning
January 1, 1997, and whose three-year average covered wage at the
time of retirement exceeds forty-eight thousand dollars, the member's
covered wages averaged for the highest four years of the member's
service or forty-eight thousand dollars, whichever is greater.
(b) For a member who retires during the calendar year beginning
January 1, 1998, and whose three-year average covered wage at the
time of retirement exceeds fifty-two thousand dollars, the member's
covered wages averaged for the highest five years of the member's
service or fifty-two thousand dollars, whichever is greater.
(c) For a member who retires during the calendar year beginning
January 1, 1999, and whose three-year average covered wage at the
time of retirement exceeds fifty-five thousand dollars, the member's
covered wages averaged for the highest six years of the member's
service or fifty-five thousand dollars, whichever is greater.
(d) For a member who retires on or after January 1, 2000, but
before January 1, 2001, and whose three-year average covered wage at
the time of retirement exceeds sixty-five thousand dollars, the
member's covered wages averaged for the highest six years of the
member's service or sixty-five thousand dollars, whichever is
greater.
(e) For a member who retires on or after January 1, 2001, but
before January 1, 2002, and whose three-year average covered wage at
the time of retirement exceeds seventy-five thousand dollars, the
member's covered wages averaged for the highest six years of the
member's service or seventy-five thousand dollars, whichever is
greater.
(2) For purposes of this paragraph, the highest years of the
member's service shall be determined using calendar years and may be
determined using one computed year calculated in the manner and
subject to the restrictions provided in paragraph "a".
c. Notwithstanding any other provisions of this subsection to
the contrary, for a member who retires on or after July 1, 2007, the
member's three-year average covered wage shall be the lesser of the
three-year average covered wage as calculated pursuant to paragraph
"a" and the adjusted covered wage amount. For purposes of this
paragraph, the adjusted covered wage amount shall be the greater of
the member's three-year average covered wage calculated pursuant to
paragraph "a" as of July 1, 2007, and an amount equal to one
hundred twenty-one percent of the member's applicable calendar year
wages. The member's applicable calendar year wages shall be the
member's highest full calendar year of covered wages not used in the
calculation of the member's three-year average covered wage pursuant
to paragraph "a", or, if the member does not have another full
calendar year of covered wages that was not used in the calculation
of the three-year average covered wage under paragraph "a", the
lowest full calendar year of covered wages that was used in the
calculation of the member's three-year average covered wage pursuant
to paragraph "a".
25. a. "Vested member" means a member who has attained
through age or sufficient years of service eligibility to receive
monthly retirement benefits upon the member's retirement. A vested
member must meet one of the following requirements:
(1) Prior to July 1, 1965, had attained the age of forty-eight
and completed at least eight years of service.
(2) Between July 1, 1965, and June 30, 1973, had completed at
least eight years of service.
(3) On or after July 1, 1973, has completed at least four years
of service.
(4) Has attained the age of fifty-five. However, an inactive
member who has not attained sufficient years of service eligibility
to become vested and who has not attained the age of fifty-five as of
July 1, 2005, shall not become vested upon the attainment of the age
of fifty-five while an inactive member.
(5) On or after July 1, 1988, an inactive member who had
accumulated, as of the date of the member's last termination of
employment, years of membership service equal to or exceeding the
years of membership service specified in this subsection for
qualifying as a vested member on that date of termination.
b. "Active vested member" means an active member who has
attained sufficient membership service to achieve vested status.
c. "Inactive vested member" means an inactive member who was
a vested member at the time of termination of employment.
26. a. (1) "Wages" means all remuneration for employment,
including but not limited to any of the following:
(a) The cash value of wage equivalents not necessitated by the
convenience of the employer. The fair market value of such wage
equivalents shall be reported to the system by the employer.
(b) The remuneration paid to an employee before employee-paid
contributions are made to plans qualified under sections 125, 129,
401, 403, 408, and 457 of the Internal Revenue Code. In addition,
"wages" includes amounts that can be received in cash in lieu of
employer-paid contributions to such plans, if the election is
uniformly available and is not limited to highly compensated
employees, as defined in section 414(q) of the Internal Revenue Code.
(c) For an elected official, other than a member of the general
assembly, the total compensation received by the elected official,
whether paid in the form of per diem or annual salary, exclusive of
expense and travel allowances.
(d) For a member of the general assembly, the total compensation
received by a member of the general assembly, whether paid in the
form of per diem or annual salary, exclusive of expense and travel
allowances paid to a member of the general assembly except as
otherwise provided in this subparagraph division. Wages includes per
diem payments paid to members of the general assembly during interim
periods between sessions of the general assembly. Wages also
includes daily allowances to members of the general assembly for
nontravel expenses of office during a session of the general
assembly, but does not include the portion of the daily allowance
which exceeds the maximum established by law for members from Polk
county.
(e) Payments for compensatory time earned that are received in
lieu of taking regular work hours off and when paid as a lump sum.
However, "wages" does not include payments made in a lump sum for
compensatory time earned in excess of two hundred forty hours per
year.
(f) Employee contributions required under section 97B.11 and
picked up by the employer under section 97B.11A.
(2) "Wages" does not include any of the following:
(a) The cash value of wage equivalents necessitated by the
convenience of the employer.
(b) Payments made for accrued sick leave or accrued vacation
leave that are not being used to replace regular work hours, whether
paid in a lump sum or in installments.
(c) Payments made as an incentive for early retirement or as
payment made upon dismissal or severance from employment, or a
special bonus payment intended as an early retirement incentive,
whether paid in a lump sum or in installments.
(d) Employer-paid contributions that cannot be received by the
employee in cash and that are made to, and any distributions from,
plans, programs, or arrangements qualified under section 117, 120,
125, 129, 401, 403, 408, or 457 of the Internal Revenue Code.
(e) Employer-paid contributions for coverage under, or
distributions from, an accident, health, or life insurance plan,
program, or arrangement.
(f) Workers' compensation and unemployment compensation payments.
(g) Disability payments.
(h) Reimbursements of employee business expenses except for those
expenses included as wages for a member of the general assembly.
(i) Payments for allowances except for those allowances included
as wages for a member of the general assembly.
(j) Payments of damages, attorney fees, interest, and penalties
made to satisfy a grievance, wage claim, or employment dispute.
(k) Payments for services as an independent contractor.
(l) Payments made by an entity that is not an employer under this
chapter.
(m) Payments made in lieu of any employer-paid group insurance
coverage.
(n) Bonuses of any type, whether paid in a lump sum or in
installments.
b. (1) "Covered wages" means wages of a member during the
periods of membership service as follows:
(a) For the period from July 4, 1953, through December 31, 1953,
and each calendar year from January 1, 1954, through December 31,
1963, wages not in excess of four thousand dollars.
(b) For each calendar year from January 1, 1964, through December
31, 1967, wages not in excess of four thousand eight hundred dollars.
(c) For each calendar year from January 1, 1968, through December
31, 1970, wages not in excess of seven thousand dollars, for each
calendar year from January 1, 1971, through December 31, 1972, wages
not in excess of seven thousand eight hundred dollars, and for each
calendar year from January 1, 1973, through December 31, 1975, wages
not in excess of ten thousand eight hundred dollars.
(d) For each calendar year from January 1, 1976, through December
31, 1983, wages not in excess of twenty thousand dollars.
(e) For each calendar year from January 1, 1984, through December
31, 1985, wages not in excess of twenty-one thousand dollars per
year.
(f) For the calendar year from January 1, 1986, through December
31, 1986, wages not in excess of twenty-two thousand dollars.
(g) For the calendar year from January 1, 1987, through December
31, 1987, wages not in excess of twenty-three thousand dollars.
(h) For the calendar year beginning January 1, 1988, and ending
December 31, 1988, wages not in excess of twenty-four thousand
dollars.
(i) For the calendar year beginning January 1, 1989, and ending
December 31, 1989, wages not in excess of twenty-six thousand
dollars.
(j) For the calendar year beginning January 1, 1990, and ending
December 31, 1990, wages not in excess of twenty-eight thousand
dollars.
(k) For the calendar year beginning January 1, 1991, wages not in
excess of thirty-one thousand dollars.
(l) For the calendar year beginning January 1, 1992, wages not in
excess of thirty-four thousand dollars.
(m) For the calendar year beginning January 1, 1993, wages not in
excess of thirty-five thousand dollars.
(n) For the calendar year beginning January 1, 1994, wages not in
excess of thirty-eight thousand dollars.
(o) For the calendar year beginning January 1, 1995, wages not in
excess of forty-one thousand dollars.
(p) For the calendar year beginning January 1, 1996, wages not in
excess of forty-four thousand dollars.
(q) Commencing with the calendar year beginning January 1, 1997,
and for each subsequent calendar year, wages not in excess of the
amount permitted for that year under section 401(a)(17) of the
Internal Revenue Code.
(2) Notwithstanding any other provision of this chapter providing
for the payment of the benefits provided in section 97B.49B, 97B.49C,
97B.49D, or 97B.49G, the system shall establish the covered wages
limitation which applies to members covered under section 97B.49B,
97B.49C, 97B.49D, or 97B.49G, at the same level as is established
under this subparagraph for other members of the retirement system.
(3) Effective July 1, 1992, "covered wages" does not include
wages to a member on or after the effective date of the member's
retirement, except as otherwise permitted by the system's
administrative rules, unless the member is reemployed, as provided
under section 97B.48A.
(4) If a member is employed by more than one employer during a
calendar year, the total amount of wages paid to the member by the
several employers shall be included in determining the limitation on
covered wages as provided in this lettered paragraph. If the amount
of wages paid to a member by the member's several employers during a
calendar year exceeds the covered wage limit, the amount of such
excess shall not be subject to the contributions required by section
97B.11.
27. "Years of prior service" means the total of all periods
of prior service of a member. In computing credit for prior service,
service of less than a full quarter shall be rounded up to a full
quarter. Where a member had prior service as a teacher, a full year
of service shall be granted that member if the member had three
quarters of service and a contract for employment for the following
school year.
97B.1A DEFINITIONS.
When used in this chapter:
1. "Abolished system" means the Iowa old-age and survivors'
insurance system repealed by sections 97.50 to 97.53.
2. "Accumulated contributions" means the total obtained as of
any date, by accumulating each individual contribution by the member
with interest plus interest dividends as provided in section 97B.70,
for all completed calendar years and for any completed calendar year
for which the interest dividend has not been declared and for
completed months of partially completed calendar years, compounded as
provided in section 97B.70.
2A. "Accumulated employer contributions" means an amount
equal to the total obtained as of any date, by accumulating each
individual contribution by the employer for the member with interest
plus interest dividends as provided in section 97B.70, for all
completed calendar years and for any completed calendar year for
which the interest dividend has not been declared and for completed
months of partially completed calendar years, compounded as provided
in section 97B.70.
3. "Active member" during a calendar year means a member who
made contributions to the retirement system at any time during the
calendar year and who:
a. Had not received or applied for a refund of the member's
accumulated contributions for withdrawal or death, and
b. Had not commenced receiving a retirement allowance.
4. "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such actuarial tables as are adopted by
the system.
5. "Beneficiary" means the person or persons who are entitled
to receive any benefits payable under this chapter at the death of a
member, if the person or persons have been designated on a form
provided by the system and filed with the system. If no such
designation is in effect at the time of death of the member or if no
person so designated is living at that time, then the beneficiary is
the estate of the member.
6. "Bona fide retirement" means a retirement by a vested
member which meets the requirements of section 97B.52A and in which
the member is eligible to receive benefits under this chapter.
7. "Contributions" means the payments to the fund required
herein, by the employer and by the members, to provide the benefits
of the retirement system.
8. "Employee" means an individual who is employed as defined
in this chapter for whom coverage under this chapter is mandatory.
a. "Employee" shall also include any of the following
individuals who do not elect out of coverage under this chapter
pursuant to section 97B.42A:
(1) Elective officials in positions for which the compensation is
on a fee basis, elective officials of school districts, elective
officials of townships, and elective officials of other political
subdivisions who are in part-time positions. An elective official
covered under this section may terminate membership under this
chapter by informing the system in writing of the expiration of the
member's term of office or by informing the system of the member's
intent to terminate membership for employment as an elective official
and establishing that the member has a bona fide termination of
employment from all employment covered under this chapter other than
as an elective official and that the member has filed a completed
application for benefits form with the system. A county attorney is
an employee for purposes of this chapter whether that county attorney
is employed on a full-time or part-time basis.
(2) Members of the general assembly of Iowa and temporary
employees of the general assembly of Iowa.
(a) A member of the general assembly covered under this chapter
may terminate membership under this chapter by informing the system
in writing of the member's intent to terminate membership.
(b) Temporary employees of the general assembly covered under
this chapter may terminate membership by sending written notification
to the system of their separation from service.
(3) Nonvested employees of drainage and levee districts.
(4) Employees of a community action program determined to be an
instrumentality of the state or a political subdivision.
(5) Magistrates.
(6) Members of the ministry, rabbinate, or other religious order
who have taken the vow of poverty.
(7) Persons employed as city managers, or as city administrators
performing the duties of city managers, under a form of city
government listed in chapter 372 or chapter 420.
(8) Members of the state transportation commission, the board of
parole, and the state health facilities council.
(9) Employees appointed by the state board of regents who do not
elect coverage in a retirement system qualified by the state board of
regents that meets the criteria of section 97B.2.
(10) Persons employed by the board of trustees for the statewide
fire and police retirement system established in section 411.36.
(11) Persons employed by a municipal water utility or waterworks
that has established a pension and annuity retirement system for its
employees pursuant to chapter 412.
b. "Employee" does not mean the following individuals:
(1) Individuals who are enrolled as students and whose primary
occupations are as students who are incidentally employed by
employers.
(2) Graduate medical students while serving as interns or
resident doctors in training at any hospital, or county medical
examiners and deputy county medical examiners under chapter 331,
division V, part 8, who are not full-time county employees.
(3) Employees hired for temporary employment of less than six
consecutive months or one thousand forty hours in a calendar year.
An employee who works for an employer for six or more consecutive
months or who works for an employer for more than one thousand forty
hours in a calendar year is not a temporary employee under this
subparagraph. Adjunct instructors are temporary employees for the
purposes of this chapter. As used in this section, unless the
context otherwise requires, "adjunct instructors" means
instructors employed by a community college or a university governed
by the state board of regents without a continuing contract, whose
teaching load does not exceed one-half time for two full semesters or
three full quarters per calendar year.
(4) Foreign exchange teachers and visitors including alien
scholars, trainees, professors, teachers, research assistants, and
specialists in their field of specialized knowledge or skill.
(5) Employees of the Iowa dairy industry commission established
under chapter 179, the Iowa beef cattle producers association
established under chapter 181, the Iowa pork producers council
established under chapter 183A, the Iowa turkey marketing council
established under chapter 184A, the Iowa soybean association as
provided in chapter 185, the Iowa corn promotion board established
under chapter 185C, and the Iowa egg council established under
chapter 184.
(6) Judicial hospitalization referees appointed under section
229.21.
(7) Employees of an area agency on aging, if as of July 1, 1994,
the agency provides for participation by all of its employees in an
alternative qualified plan pursuant to the requirements of the
federal Internal Revenue Code.
(8) Persons employed through any program described in section
84A.7 and provided by the Iowa conservation corps.
(9) Persons employed by the Iowa student loan liquidity
corporation.
9. "Employer" means the state of Iowa, the counties,
municipalities, agencies, public school districts, all political
subdivisions, and all of their departments and instrumentalities,
including area agencies on aging, other than those employing persons
as specified in subsection 8, paragraph "b", subparagraph (7),
and joint planning commissions created under chapter 28E or 28I.
If an interstate agency is established under chapter 28E and
similar enabling legislation in an adjoining state, and an employer
had made contributions to the retirement system for employees
performing functions which are transferred to the interstate agency,
the employees of the interstate agency who perform those functions
shall be considered to be employees of the employer for the sole
purpose of membership in the retirement system, although the employer
contributions for those employees are made by the interstate agency.
10. "Employment for any calendar quarter" means any service
performed under an employer-employee relationship under this chapter
for which wages are reported in the calendar quarter. For the
purposes of this chapter, elected officials are deemed to be in
employment for all quarters of the elected officials' respective
terms of office, even if the elected officials have selected a method
of payment of wages which results in the elected officials not being
credited with wages every quarter of a year.
11. "First month of entitlement" means the first month for
which a member is qualified to receive retirement benefits under this
chapter. Effective January 1, 1995, a member who meets all of the
following requirements is qualified to receive retirement benefits
under this chapter:
a. Has attained the minimum age for receipt of a retirement
allowance under this chapter.
b. If the member has not attained seventy years of age, has
terminated all employment covered under this chapter or formerly
covered under this chapter pursuant to section 97B.42 in the month
prior to the member's first month of entitlement.
c. Has filed a completed application for benefits with the
system setting forth the member's intended first month of
entitlement.
d. Has survived into the month for which the member's first
retirement allowance is payable by the retirement system.
11A. "Fully funded" means a funded ratio of at least one
hundred percent using the most recent actuarial valuation. For
purposes of this subsection, "funded ratio" means the ratio
produced by dividing the lesser of the actuarial value of the
system's assets or the market value of the system's assets, by the
system's actuarial liabilities, using the actuarial method adopted by
the investment board pursuant to section 97B.8A, subsection 3.
12. "Inactive member" with respect to future service means a
member who at the end of a year had not made any contributions during
the current year and who has not received a refund of the member's
accumulated contributions.
13. "Internal Revenue Code" means the Internal Revenue Code
as defined in section 422.3.
14. "Member" means an employee or a former employee who
maintains the employee's or former employee's accumulated
contributions in the retirement system. The former employee is not a
member if the former employee has received a refund of the former
employee's accumulated contributions.
14A. "Member account" means the account established for each
member and includes the member's accumulated contributions and the
member's share of the accumulated employer contributions as provided
in section 97B.53. "Member account" does not mean the
supplemental account for active members.
15. "Membership service" means service rendered by a member
after July 4, 1953. Years of membership service shall be counted to
the complete quarter calendar year. However, membership service for
a calendar year shall not include more than four quarters. In
determining a member's period of membership service, the system shall
combine all periods of service for which the member has made
contributions.
16. "Prior service" means any service by an employee rendered
at any time prior to July 4, 1953.
17. "Regular service" means service for an employer other
than special service.
18. "Retired member" means a member who has applied for the
member's retirement allowance and has survived into at least the
first day of the member's first month of entitlement.
19. "Retirement" means that period of time beginning when a
member who has filed an approved application for a retirement
allowance has survived into at least the first day of the member's
first month of entitlement and ending when the member dies.
19A. "Retirement system" means the retirement plan as
contained in this chapter or as duly amended.
20. "Service" means service under this chapter by an
employee, except an elected official, for which the employee is paid
covered wages. Service shall also mean the following:
a. Service in the armed forces of the United States, if the
employee was employed by a covered employer immediately prior to
entry into the armed forces, and if any of the following requirements
are met:
(1) The employee was released from service and returns to covered
employment with an employer within twelve months of the date on which
the employee has the right of release from service or within a longer
period as required by the applicable laws of the United States.
(2) The employee, while serving on active duty in the armed
forces of the United States in an area designated by the president of
the United States or the United States Congress as a combat zone or
as a qualified hazardous duty area, or deployed outside the United
States away from the individual's permanent duty station while
participating in an operation designated by the United States
secretary of defense as a contingency operation as defined in 10
U.S.C. § 101(a)(13), or which became such a contingency operation by
the operation of law, dies, or suffers an injury or acquires a
disease resulting in death, so long as the death from the injury or
disease occurs within a two-year period from the date the employee
suffered the active duty injury or disease and the active duty injury
or disease prevented the employee from returning to covered
employment as provided in subparagraph (1).
b. Leave of absence authorized by the employer prior to July
1, 1998, for a period not exceeding twelve months and ending no later
than July 1, 1999.
c. A leave of absence authorized pursuant to the requirements
of the federal Family and Medical Leave Act of 1993, or other similar
leave authorized by the employer for a period not to exceed twelve
weeks in any calendar year.
d. Temporary or seasonal interruptions in service for
employees of a school corporation or educational institution when the
temporary suspension of service does not terminate the period of
employment of the employee and the employee returns to service at a
school corporation or educational institution upon the end of the
temporary or seasonal interruption.
However, effective July 1, 2004, "service" does not mean
service for which an employee receives remuneration from an employer
for temporary employment during any quarter in which the employee is
on an otherwise unpaid leave of absence that is not authorized under
the federal Family and Medical Leave Act of 1993 or other similar
leave. Remuneration paid by the employer for the temporary
employment shall not be treated by the system as covered wages.
e. Employment with an employer prior to January 1, 1946, if
the member is not receiving a retirement allowance based upon that
employment.
21. "Service" for an elected official means the period of
membership service for which contributions are made beginning on the
date an elected official assumes office and ending on the expiration
date of the last term the elected official serves, excluding all the
intervening periods during which the elected official is not an
elected official.
22. "Special service" means service for an employer while
employed in a protection occupation as provided in section 97B.49B,
and as a county sheriff or deputy sheriff as provided in section
97B.49C.
22A. "Supplemental account for active members" or
"supplemental account" means the account established for each
active member under section 97B.49H.
23. Reserved.
24. a. "Three-year average covered wage" means a member's
covered wages averaged for the highest three years of the member's
service, except as otherwise provided in this subsection. The
highest three years of a member's covered wages shall be determined
using calendar years. However, if a member's final quarter of a year
of employment does not occur at the end of a calendar year, the
system may determine the wages for the third year by computing the
average quarter of all quarters from the member's highest calendar
year of covered wages not being used in the selection of the two
highest years and using the computed average quarter for each quarter
in the third year in which no wages have been reported in combination
with the final quarter or quarters of the member's service to create
a full year. However, the system shall not use the member's final
quarter of wages if using that quarter would reduce the member's
three-year average covered wage. If the three-year average covered
wage of a member exceeds the highest maximum covered wages in effect
for a calendar year during the member's period of service, the
three-year average covered wage of the member shall be reduced to the
highest maximum covered wages in effect during the member's period of
service. Notwithstanding any other provision of this paragraph to
the contrary, a member's wages for the third year as computed by this
paragraph shall not exceed, by more than three percent, the member's
highest actual calendar year of covered wages for a member whose
first month of entitlement is January 1999 or later.
b. (1) Notwithstanding any other provisions of this
subsection to the contrary, the three-year average covered wage shall
be computed as follows for the following members:
(a) For a member who retires during the calendar year beginning
January 1, 1997, and whose three-year average covered wage at the
time of retirement exceeds forty-eight thousand dollars, the member's
covered wages averaged for the highest four years of the member's
service or forty-eight thousand dollars, whichever is greater.
(b) For a member who retires during the calendar year beginning
January 1, 1998, and whose three-year average covered wage at the
time of retirement exceeds fifty-two thousand dollars, the member's
covered wages averaged for the highest five years of the member's
service or fifty-two thousand dollars, whichever is greater.
(c) For a member who retires during the calendar year beginning
January 1, 1999, and whose three-year average covered wage at the
time of retirement exceeds fifty-five thousand dollars, the member's
covered wages averaged for the highest six years of the member's
service or fifty-five thousand dollars, whichever is greater.
(d) For a member who retires on or after January 1, 2000, but
before January 1, 2001, and whose three-year average covered wage at
the time of retirement exceeds sixty-five thousand dollars, the
member's covered wages averaged for the highest six years of the
member's service or sixty-five thousand dollars, whichever is
greater.
(e) For a member who retires on or after January 1, 2001, but
before January 1, 2002, and whose three-year average covered wage at
the time of retirement exceeds seventy-five thousand dollars, the
member's covered wages averaged for the highest six years of the
member's service or seventy-five thousand dollars, whichever is
greater.
(2) For purposes of this paragraph, the highest years of the
member's service shall be determined using calendar years and may be
determined using one computed year calculated in the manner and
subject to the restrictions provided in paragraph "a".
c. Notwithstanding any other provisions of this subsection to
the contrary, for a member who retires on or after July 1, 2007, the
member's three-year average covered wage shall be the lesser of the
three-year average covered wage as calculated pursuant to paragraph
"a" and the adjusted covered wage amount. For purposes of this
paragraph, the adjusted covered wage amount shall be the greater of
the member's three-year average covered wage calculated pursuant to
paragraph "a" as of July 1, 2007, and an amount equal to one
hundred twenty-one percent of the member's applicable calendar year
wages. The member's applicable calendar year wages shall be the
member's highest full calendar year of covered wages not used in the
calculation of the member's three-year average covered wage pursuant
to paragraph "a", or, if the member does not have another full
calendar year of covered wages that was not used in the calculation
of the three-year average covered wage under paragraph "a", the
lowest full calendar year of covered wages that was used in the
calculation of the member's three-year average covered wage pursuant
to paragraph "a".
25. a. "Vested member" means a member who has attained
through age or sufficient years of service eligibility to receive
monthly retirement benefits upon the member's retirement. A vested
member must meet one of the following requirements:
(1) Prior to July 1, 1965, had attained the age of forty-eight
and completed at least eight years of service.
(2) Between July 1, 1965, and June 30, 1973, had completed at
least eight years of service.
(3) On or after July 1, 1973, has completed at least four years
of service.
(4) Has attained the age of fifty-five. However, an inactive
member who has not attained sufficient years of service eligibility
to become vested and who has not attained the age of fifty-five as of
July 1, 2005, shall not become vested upon the attainment of the age
of fifty-five while an inactive member.
(5) On or after July 1, 1988, an inactive member who had
accumulated, as of the date of the member's last termination of
employment, years of membership service equal to or exceeding the
years of membership service specified in this subsection for
qualifying as a vested member on that date of termination.
b. "Active vested member" means an active member who has
attained sufficient membership service to achieve vested status.
c. "Inactive vested member" means an inactive member who was
a vested member at the time of termination of employment.
26. a. (1) "Wages" means all remuneration for employment,
including but not limited to any of the following:
(a) The cash value of wage equivalents not necessitated by the
convenience of the employer. The fair market value of such wage
equivalents shall be reported to the system by the employer.
(b) The remuneration paid to an employee before employee-paid
contributions are made to plans qualified under sections 125, 129,
401, 403, 408, and 457 of the Internal Revenue Code. In addition,
"wages" includes amounts that can be received in cash in lieu of
employer-paid contributions to such plans, if the election is
uniformly available and is not limited to highly compensated
employees, as defined in section 414(q) of the Internal Revenue Code.
(c) For an elected official, other than a member of the general
assembly, the total compensation received by the elected official,
whether paid in the form of per diem or annual salary, exclusive of
expense and travel allowances.
(d) For a member of the general assembly, the total compensation
received by a member of the general assembly, whether paid in the
form of per diem or annual salary, exclusive of expense and travel
allowances paid to a member of the general assembly except as
otherwise provided in this subparagraph division. Wages includes per
diem payments paid to members of the general assembly during interim
periods between sessions of the general assembly. Wages also
includes daily allowances to members of the general assembly for
nontravel expenses of office during a session of the general
assembly, but does not include the portion of the daily allowance
which exceeds the maximum established by law for members from Polk
county.
(e) Payments for compensatory time earned that are received in
lieu of taking regular work hours off and when paid as a lump sum.
However, "wages" does not include payments made in a lump sum for
compensatory time earned in excess of two hundred forty hours per
year.
(f) Employee contributions required under section 97B.11 and
picked up by the employer under section 97B.11A.
(2) "Wages" does not include any of the following:
(a) The cash value of wage equivalents necessitated by the
convenience of the employer.
(b) Payments made for accrued sick leave or accrued vacation
leave that are not being used to replace regular work hours, whether
paid in a lump sum or in installments.
(c) Payments made as an incentive for early retirement or as
payment made upon dismissal or severance from employment, or a
special bonus payment intended as an early retirement incentive,
whether paid in a lump sum or in installments.
(d) Employer-paid contributions that cannot be received by the
employee in cash and that are made to, and any distributions from,
plans, programs, or arrangements qualified under section 117, 120,
125, 129, 401, 403, 408, or 457 of the Internal Revenue Code.
(e) Employer-paid contributions for coverage under, or
distributions from, an accident, health, or life insurance plan,
program, or arrangement.
(f) Workers' compensation and unemployment compensation payments.
(g) Disability payments.
(h) Reimbursements of employee business expenses except for those
expenses included as wages for a member of the general assembly.
(i) Payments for allowances except for those allowances included
as wages for a member of the general assembly.
(j) Payments of damages, attorney fees, interest, and penalties
made to satisfy a grievance, wage claim, or employment dispute.
(k) Payments for services as an independent contractor.
(l) Payments made by an entity that is not an employer under this
chapter.
(m) Payments made in lieu of any employer-paid group insurance
coverage.
(n) Bonuses of any type, whether paid in a lump sum or in
installments.
b. (1) "Covered wages" means wages of a member during the
periods of membership service as follows:
(a) For the period from July 4, 1953, through December 31, 1953,
and each calendar year from January 1, 1954, through December 31,
1963, wages not in excess of four thousand dollars.
(b) For each calendar year from January 1, 1964, through December
31, 1967, wages not in excess of four thousand eight hundred dollars.
(c) For each calendar year from January 1, 1968, through December
31, 1970, wages not in excess of seven thousand dollars, for each
calendar year from January 1, 1971, through December 31, 1972, wages
not in excess of seven thousand eight hundred dollars, and for each
calendar year from January 1, 1973, through December 31, 1975, wages
not in excess of ten thousand eight hundred dollars.
(d) For each calendar year from January 1, 1976, through December
31, 1983, wages not in excess of twenty thousand dollars.
(e) For each calendar year from January 1, 1984, through December
31, 1985, wages not in excess of twenty-one thousand dollars per
year.
(f) For the calendar year from January 1, 1986, through December
31, 1986, wages not in excess of twenty-two thousand dollars.
(g) For the calendar year from January 1, 1987, through December
31, 1987, wages not in excess of twenty-three thousand dollars.
(h) For the calendar year beginning January 1, 1988, and ending
December 31, 1988, wages not in excess of twenty-four thousand
dollars.
(i) For the calendar year beginning January 1, 1989, and ending
December 31, 1989, wages not in excess of twenty-six thousand
dollars.
(j) For the calendar year beginning January 1, 1990, and ending
December 31, 1990, wages not in excess of twenty-eight thousand
dollars.
(k) For the calendar year beginning January 1, 1991, wages not in
excess of thirty-one thousand dollars.
(l) For the calendar year beginning January 1, 1992, wages not in
excess of thirty-four thousand dollars.
(m) For the calendar year beginning January 1, 1993, wages not in
excess of thirty-five thousand dollars.
(n) For the calendar year beginning January 1, 1994, wages not in
excess of thirty-eight thousand dollars.
(o) For the calendar year beginning January 1, 1995, wages not in
excess of forty-one thousand dollars.
(p) For the calendar year beginning January 1, 1996, wages not in
excess of forty-four thousand dollars.
(q) Commencing with the calendar year beginning January 1, 1997,
and for each subsequent calendar year, wages not in excess of the
amount permitted for that year under section 401(a)(17) of the
Internal Revenue Code.
(2) Notwithstanding any other provision of this chapter providing
for the payment of the benefits provided in section 97B.49B, 97B.49C,
97B.49D, or 97B.49G, the system shall establish the covered wages
limitation which applies to members covered under section 97B.49B,
97B.49C, 97B.49D, or 97B.49G, at the same level as is established
under this subparagraph for other members of the retirement system.
(3) Effective July 1, 1992, "covered wages" does not include
wages to a member on or after the effective date of the member's
retirement, except as otherwise permitted by the system's
administrative rules, unless the member is reemployed, as provided
under section 97B.48A.
(4) If a member is employed by more than one employer during a
calendar year, the total amount of wages paid to the member by the
several employers shall be included in determining the limitation on
covered wages as provided in this lettered paragraph. If the amount
of wages paid to a member by the member's several employers during a
calendar year exceeds the covered wage limit, the amount of such
excess shall not be subject to the contributions required by section
97B.11.
27. "Years of prior service" means the total of all periods
of prior service of a member. In computing credit for prior service,
service of less than a full quarter shall be rounded up to a full
quarter. Where a member had prior service as a teacher, a full year
of service shall be granted that member if the member had three
quarters of service and a contract for employment for the following
school year.
