97B.49F RETIREMENT DIVIDENDS.
1. Cost-of-living dividend.a. Effective July 1, 1997, commencing with dividends payable
in November 1997, and for each subsequent year, all members who
retired prior to July 1, 1990, and all beneficiaries and contingent
annuitants of such members, shall be eligible for annual dividend
payments, payable in November of that year, pursuant to the
requirements of this subsection. The dividend payable in any given
year shall be the sum of the dollar amount of the dividend payable in
the previous November and the dividend adjustment. A dividend
determined pursuant to this subsection shall not be used to increase
the monthly benefit amount payable. In no event shall the dividend
payable be less than twenty-five dollars.
b. (1) The dividend adjustment for a given year shall be
calculated by multiplying the total of the retiree's, beneficiary's,
or contingent annuitant's monthly benefit payments and the dividend
payable to the retiree, beneficiary, or contingent annuitant, in the
previous calendar year by the applicable percentage as determined by
this paragraph.
(2) The applicable percentage shall be the least of the following
percentages:
(a) The percentage representing the percentage increase in the
consumer price index published in the federal register by the federal
department of labor, bureau of labor statistics, that reflects the
percentage increase in the consumer price index for the twelve-month
period ending June 30 of the year that the dividend is to be paid.
(b) The percentage representing the percentage amount the actuary
has certified that the fund can absorb without requiring an increase
in the employer and employee contributions to the fund. The
actuary's certification of such percentage amount shall be based on a
comparison of the actuarially required contribution rate for the
fiscal year of the dividend adjustment to the statutory contribution
rate for that same fiscal year. If the actuarially required
contribution rate exceeds the statutory contribution rate for that
same fiscal year, the percentage amount shall be zero.
(c) Three percent.
c. If a member eligible to receive a cost-of-living dividend
dies before November 1 of a year, a cost-of-living dividend shall not
be payable in November of that year in the name of the member. If a
member dies on or after November 1, but before payment of a dividend
is made in that month, the full amount of the retirement dividend for
that year shall be paid in the member's name upon notification of the
member's death.
2. Favorable experience dividend.a. Commencing January 1, 1999, all qualified recipients who
have received a monthly allowance for at least one year as of the
date the dividend is payable shall be eligible to receive a favorable
experience dividend, payable on the last business day in January of
each year pursuant to the requirements of this subsection. If the
qualified recipient eligible to receive a favorable experience
dividend dies before January 1 of a year, a favorable experience
dividend shall not be payable in January of that year in the name of
the qualified recipient. However, if the qualified recipient dies on
or after January 1 but before the dividend is paid in that month, the
full amount of the dividend payable in that month shall be paid in
the name of the qualified recipient, upon notification of death. For
purposes of this paragraph, "qualified recipient" includes all
members who retired on or after July 1, 1990, or a beneficiary or
contingent annuitant of such a member who receives a monthly benefit,
and a beneficiary of an active member who elects a monthly allowance
under section 97B.52, subsection 1, paragraph "c".
b. A favorable experience dividend reserve account, hereafter
called the "reserve account", is established within the
retirement fund. Moneys credited to the reserve account shall be
used by the system for the purpose of providing a favorable
experience dividend pursuant to this subsection.
c. Moneys shall be credited to the reserve account in the
retirement fund as follows:
(1) On or before January 15, 1999, there shall be credited to the
reserve account an amount that the system's actuary determines is
sufficient to pay the maximum favorable experience dividend for each
of the next following five years, based on reasonable actuarial
assumptions.
(2) Beginning with the annual actuarial valuation of the
retirement system as of June 30, 1999, and for each annual actuarial
valuation of the retirement system thereafter, there shall be
credited to the reserve account on each applicable January 15
following an actuarial valuation, an amount that represents that
portion of the favorable actuarial experience, if any, that the
system's actuary determines shall be credited to the reserve account
pursuant to rules adopted by the system.
(3) The portion of the favorable actuarial experience, if any,
that is not initially credited to the reserve account pursuant to
subparagraph (2), but which, if applied to the retirement fund, would
result in the actuarial valuation of assets exceeding the actuarial
accrued liability of the retirement system based on the most recent
annual actuarial valuation of the retirement system, shall be
credited to the reserve account.
(4) Notwithstanding the provisions of this paragraph to the
contrary, moneys credited to the reserve account in any applicable
year shall not exceed an amount which, if credited to the reserve
account, would exceed an amount that the system's actuary determines
is sufficient to pay the maximum favorable experience dividend for
each of the next following ten years, based on reasonable actuarial
assumptions.
(5) Notwithstanding any provisions of this paragraph to the
contrary, moneys shall not be credited to the reserve account if the
system is not fully funded or if the system would not remain fully
funded if moneys were credited to the reserve account.
(6) As used in this paragraph, "favorable actuarial
experience" means the difference, if positive, between the
anticipated and actual experience of the retirement system's
actuarial assets and liabilities as measured by the system's actuary
in the most recent annual actuarial valuation of the retirement
system pursuant to rules adopted by the system.
d. The favorable experience dividend is calculated by
multiplying the monthly retirement allowance payable to the retiree,
beneficiary, or contingent annuitant for the previous December, or
such other month as determined by the system, by twelve, and then
multiplying that amount by the number of complete years the member
has been retired or would have been retired if living as of the date
the dividend is payable, and by the applicable percentage. For
purposes of this paragraph, the applicable percentage is the
percentage, not to exceed three percent, that the system determines
shall be applied in calculating the favorable experience dividend if
the system determines that the reserve account is sufficiently funded
to make a distribution. In making its determination, the system
shall consider, but not be limited to, the amounts credited to the
reserve account, the distributions from the reserve account made in
previous years, the likelihood of future credits to and distributions
from the reserve account, and the distributions paid under subsection
1.
97B.49F RETIREMENT DIVIDENDS.
1. Cost-of-living dividend.a. Effective July 1, 1997, commencing with dividends payable
in November 1997, and for each subsequent year, all members who
retired prior to July 1, 1990, and all beneficiaries and contingent
annuitants of such members, shall be eligible for annual dividend
payments, payable in November of that year, pursuant to the
requirements of this subsection. The dividend payable in any given
year shall be the sum of the dollar amount of the dividend payable in
the previous November and the dividend adjustment. A dividend
determined pursuant to this subsection shall not be used to increase
the monthly benefit amount payable. In no event shall the dividend
payable be less than twenty-five dollars.
b. (1) The dividend adjustment for a given year shall be
calculated by multiplying the total of the retiree's, beneficiary's,
or contingent annuitant's monthly benefit payments and the dividend
payable to the retiree, beneficiary, or contingent annuitant, in the
previous calendar year by the applicable percentage as determined by
this paragraph.
(2) The applicable percentage shall be the least of the following
percentages:
(a) The percentage representing the percentage increase in the
consumer price index published in the federal register by the federal
department of labor, bureau of labor statistics, that reflects the
percentage increase in the consumer price index for the twelve-month
period ending June 30 of the year that the dividend is to be paid.
(b) The percentage representing the percentage amount the actuary
has certified that the fund can absorb without requiring an increase
in the employer and employee contributions to the fund. The
actuary's certification of such percentage amount shall be based on a
comparison of the actuarially required contribution rate for the
fiscal year of the dividend adjustment to the statutory contribution
rate for that same fiscal year. If the actuarially required
contribution rate exceeds the statutory contribution rate for that
same fiscal year, the percentage amount shall be zero.
(c) Three percent.
c. If a member eligible to receive a cost-of-living dividend
dies before November 1 of a year, a cost-of-living dividend shall not
be payable in November of that year in the name of the member. If a
member dies on or after November 1, but before payment of a dividend
is made in that month, the full amount of the retirement dividend for
that year shall be paid in the member's name upon notification of the
member's death.
2. Favorable experience dividend.a. Commencing January 1, 1999, all qualified recipients who
have received a monthly allowance for at least one year as of the
date the dividend is payable shall be eligible to receive a favorable
experience dividend, payable on the last business day in January of
each year pursuant to the requirements of this subsection. If the
qualified recipient eligible to receive a favorable experience
dividend dies before January 1 of a year, a favorable experience
dividend shall not be payable in January of that year in the name of
the qualified recipient. However, if the qualified recipient dies on
or after January 1 but before the dividend is paid in that month, the
full amount of the dividend payable in that month shall be paid in
the name of the qualified recipient, upon notification of death. For
purposes of this paragraph, "qualified recipient" includes all
members who retired on or after July 1, 1990, or a beneficiary or
contingent annuitant of such a member who receives a monthly benefit,
and a beneficiary of an active member who elects a monthly allowance
under section 97B.52, subsection 1, paragraph "c".
b. A favorable experience dividend reserve account, hereafter
called the "reserve account", is established within the
retirement fund. Moneys credited to the reserve account shall be
used by the system for the purpose of providing a favorable
experience dividend pursuant to this subsection.
c. Moneys shall be credited to the reserve account in the
retirement fund as follows:
(1) On or before January 15, 1999, there shall be credited to the
reserve account an amount that the system's actuary determines is
sufficient to pay the maximum favorable experience dividend for each
of the next following five years, based on reasonable actuarial
assumptions.
(2) Beginning with the annual actuarial valuation of the
retirement system as of June 30, 1999, and for each annual actuarial
valuation of the retirement system thereafter, there shall be
credited to the reserve account on each applicable January 15
following an actuarial valuation, an amount that represents that
portion of the favorable actuarial experience, if any, that the
system's actuary determines shall be credited to the reserve account
pursuant to rules adopted by the system.
(3) The portion of the favorable actuarial experience, if any,
that is not initially credited to the reserve account pursuant to
subparagraph (2), but which, if applied to the retirement fund, would
result in the actuarial valuation of assets exceeding the actuarial
accrued liability of the retirement system based on the most recent
annual actuarial valuation of the retirement system, shall be
credited to the reserve account.
(4) Notwithstanding the provisions of this paragraph to the
contrary, moneys credited to the reserve account in any applicable
year shall not exceed an amount which, if credited to the reserve
account, would exceed an amount that the system's actuary determines
is sufficient to pay the maximum favorable experience dividend for
each of the next following ten years, based on reasonable actuarial
assumptions.
(5) Notwithstanding any provisions of this paragraph to the
contrary, moneys shall not be credited to the reserve account if the
system is not fully funded or if the system would not remain fully
funded if moneys were credited to the reserve account.
(6) As used in this paragraph, "favorable actuarial
experience" means the difference, if positive, between the
anticipated and actual experience of the retirement system's
actuarial assets and liabilities as measured by the system's actuary
in the most recent annual actuarial valuation of the retirement
system pursuant to rules adopted by the system.
d. The favorable experience dividend is calculated by
multiplying the monthly retirement allowance payable to the retiree,
beneficiary, or contingent annuitant for the previous December, or
such other month as determined by the system, by twelve, and then
multiplying that amount by the number of complete years the member
has been retired or would have been retired if living as of the date
the dividend is payable, and by the applicable percentage. For
purposes of this paragraph, the applicable percentage is the
percentage, not to exceed three percent, that the system determines
shall be applied in calculating the favorable experience dividend if
the system determines that the reserve account is sufficiently funded
to make a distribution. In making its determination, the system
shall consider, but not be limited to, the amounts credited to the
reserve account, the distributions from the reserve account made in
previous years, the likelihood of future credits to and distributions
from the reserve account, and the distributions paid under subsection
1.
97B.49F RETIREMENT DIVIDENDS.
1. Cost-of-living dividend.a. Effective July 1, 1997, commencing with dividends payable
in November 1997, and for each subsequent year, all members who
retired prior to July 1, 1990, and all beneficiaries and contingent
annuitants of such members, shall be eligible for annual dividend
payments, payable in November of that year, pursuant to the
requirements of this subsection. The dividend payable in any given
year shall be the sum of the dollar amount of the dividend payable in
the previous November and the dividend adjustment. A dividend
determined pursuant to this subsection shall not be used to increase
the monthly benefit amount payable. In no event shall the dividend
payable be less than twenty-five dollars.
b. (1) The dividend adjustment for a given year shall be
calculated by multiplying the total of the retiree's, beneficiary's,
or contingent annuitant's monthly benefit payments and the dividend
payable to the retiree, beneficiary, or contingent annuitant, in the
previous calendar year by the applicable percentage as determined by
this paragraph.
(2) The applicable percentage shall be the least of the following
percentages:
(a) The percentage representing the percentage increase in the
consumer price index published in the federal register by the federal
department of labor, bureau of labor statistics, that reflects the
percentage increase in the consumer price index for the twelve-month
period ending June 30 of the year that the dividend is to be paid.
(b) The percentage representing the percentage amount the actuary
has certified that the fund can absorb without requiring an increase
in the employer and employee contributions to the fund. The
actuary's certification of such percentage amount shall be based on a
comparison of the actuarially required contribution rate for the
fiscal year of the dividend adjustment to the statutory contribution
rate for that same fiscal year. If the actuarially required
contribution rate exceeds the statutory contribution rate for that
same fiscal year, the percentage amount shall be zero.
(c) Three percent.
c. If a member eligible to receive a cost-of-living dividend
dies before November 1 of a year, a cost-of-living dividend shall not
be payable in November of that year in the name of the member. If a
member dies on or after November 1, but before payment of a dividend
is made in that month, the full amount of the retirement dividend for
that year shall be paid in the member's name upon notification of the
member's death.
2. Favorable experience dividend.a. Commencing January 1, 1999, all qualified recipients who
have received a monthly allowance for at least one year as of the
date the dividend is payable shall be eligible to receive a favorable
experience dividend, payable on the last business day in January of
each year pursuant to the requirements of this subsection. If the
qualified recipient eligible to receive a favorable experience
dividend dies before January 1 of a year, a favorable experience
dividend shall not be payable in January of that year in the name of
the qualified recipient. However, if the qualified recipient dies on
or after January 1 but before the dividend is paid in that month, the
full amount of the dividend payable in that month shall be paid in
the name of the qualified recipient, upon notification of death. For
purposes of this paragraph, "qualified recipient" includes all
members who retired on or after July 1, 1990, or a beneficiary or
contingent annuitant of such a member who receives a monthly benefit,
and a beneficiary of an active member who elects a monthly allowance
under section 97B.52, subsection 1, paragraph "c".
b. A favorable experience dividend reserve account, hereafter
called the "reserve account", is established within the
retirement fund. Moneys credited to the reserve account shall be
used by the system for the purpose of providing a favorable
experience dividend pursuant to this subsection.
c. Moneys shall be credited to the reserve account in the
retirement fund as follows:
(1) On or before January 15, 1999, there shall be credited to the
reserve account an amount that the system's actuary determines is
sufficient to pay the maximum favorable experience dividend for each
of the next following five years, based on reasonable actuarial
assumptions.
(2) Beginning with the annual actuarial valuation of the
retirement system as of June 30, 1999, and for each annual actuarial
valuation of the retirement system thereafter, there shall be
credited to the reserve account on each applicable January 15
following an actuarial valuation, an amount that represents that
portion of the favorable actuarial experience, if any, that the
system's actuary determines shall be credited to the reserve account
pursuant to rules adopted by the system.
(3) The portion of the favorable actuarial experience, if any,
that is not initially credited to the reserve account pursuant to
subparagraph (2), but which, if applied to the retirement fund, would
result in the actuarial valuation of assets exceeding the actuarial
accrued liability of the retirement system based on the most recent
annual actuarial valuation of the retirement system, shall be
credited to the reserve account.
(4) Notwithstanding the provisions of this paragraph to the
contrary, moneys credited to the reserve account in any applicable
year shall not exceed an amount which, if credited to the reserve
account, would exceed an amount that the system's actuary determines
is sufficient to pay the maximum favorable experience dividend for
each of the next following ten years, based on reasonable actuarial
assumptions.
(5) Notwithstanding any provisions of this paragraph to the
contrary, moneys shall not be credited to the reserve account if the
system is not fully funded or if the system would not remain fully
funded if moneys were credited to the reserve account.
(6) As used in this paragraph, "favorable actuarial
experience" means the difference, if positive, between the
anticipated and actual experience of the retirement system's
actuarial assets and liabilities as measured by the system's actuary
in the most recent annual actuarial valuation of the retirement
system pursuant to rules adopted by the system.
d. The favorable experience dividend is calculated by
multiplying the monthly retirement allowance payable to the retiree,
beneficiary, or contingent annuitant for the previous December, or
such other month as determined by the system, by twelve, and then
multiplying that amount by the number of complete years the member
has been retired or would have been retired if living as of the date
the dividend is payable, and by the applicable percentage. For
purposes of this paragraph, the applicable percentage is the
percentage, not to exceed three percent, that the system determines
shall be applied in calculating the favorable experience dividend if
the system determines that the reserve account is sufficiently funded
to make a distribution. In making its determination, the system
shall consider, but not be limited to, the amounts credited to the
reserve account, the distributions from the reserve account made in
previous years, the likelihood of future credits to and distributions
from the reserve account, and the distributions paid under subsection
1.
