97B.70 INTEREST AND DIVIDENDS TO MEMBERS.
1. For calendar years prior to January 1, 1997, interest at two
percent per annum and interest dividends declared by the system shall
be credited to the member's contributions and the employer's
contributions to become part of the accumulated contributions and
accumulated employer contributions thereby.
a. The average rate of interest earned shall be determined
upon the following basis:
(1) Investment income shall include interest and cash dividends
on stock.
(2) Investment income shall be accounted for on an accrual basis.
(3) Capital gains and losses, realized or unrealized, shall not
be included in investment income.
(4) Mean assets shall include fixed income investments valued at
cost or on an amortized basis, and common stocks at market values or
cost, whichever is lower.
(5) The average rate of earned interest shall be the quotient of
the investment income and the mean assets of the retirement fund.
b. The interest dividend shall be determined within sixty
days after the end of each calendar year as follows:
(1) The dividend rate for a calendar year shall be the excess of
the average rate of interest earned for the year over the statutory
two percent rate plus twenty-five hundredths of one percent.
(2) The average rate of interest earned and the interest dividend
rate in percent shall be calculated to the nearest one hundredth,
that is, to two decimal places.
(3) Interest and interest dividends calculated pursuant to this
subsection shall be compounded annually.
2. For calendar years beginning January 1, 1997, a per annum
interest rate at one percent above the interest rate on one-year
certificates of deposit shall be credited to the member's
contributions and the employer's contributions to become part of the
accumulated contributions and accumulated employer contributions
account. For purposes of this subsection, the interest rate on
one-year certificates of deposit shall be determined by the system
based on the average rate for such certificates of deposit as of the
first business day of each year as published in a publication of
general acceptance in the business community. The per annum interest
rate shall be credited on a quarterly basis by applying one-quarter
of the annual interest rate to the sum of the accumulated
contributions and the accumulated employer contributions as of the
end of the previous calendar quarter.
3. Interest shall be credited to the accumulated contributions
and accumulated employer contributions accounts, and supplemental
accounts of active members, inactive vested members, and, effective
January 1, 1999, to inactive nonvested members, until the quarter
prior to the quarter in which the member's first retirement allowance
is paid or in which the member is issued a refund under section
97B.53, or in which a death benefit is issued.
4. Prior to January 1, 1999, interest and interest dividends
shall be credited to the accumulated contributions and accumulated
employer contributions account of a person who leaves the
contributions in the retirement fund upon termination from covered
employment prior to achieving vested status, but who subsequently
returns to covered employment. Upon return to covered employment but
prior to January 1, 1999, interest and interest dividends shall be
credited to the accumulated contributions and accumulated employer
contributions account of the person commencing upon the date on which
the person has covered wages.
5. If the system no longer maintains the accumulated
contributions and accumulated employer contributions account of the
person pursuant to this chapter, but the person submits satisfactory
proof to the system that the person, or the person's employer, did
make contributions that should be included in the accumulated
contributions and accumulated employer contributions account, the
system shall credit interest and interest dividends in the manner
provided in subsection 4.
97B.70 INTEREST AND DIVIDENDS TO MEMBERS.
1. For calendar years prior to January 1, 1997, interest at two
percent per annum and interest dividends declared by the system shall
be credited to the member's contributions and the employer's
contributions to become part of the accumulated contributions and
accumulated employer contributions thereby.
a. The average rate of interest earned shall be determined
upon the following basis:
(1) Investment income shall include interest and cash dividends
on stock.
(2) Investment income shall be accounted for on an accrual basis.
(3) Capital gains and losses, realized or unrealized, shall not
be included in investment income.
(4) Mean assets shall include fixed income investments valued at
cost or on an amortized basis, and common stocks at market values or
cost, whichever is lower.
(5) The average rate of earned interest shall be the quotient of
the investment income and the mean assets of the retirement fund.
b. The interest dividend shall be determined within sixty
days after the end of each calendar year as follows:
(1) The dividend rate for a calendar year shall be the excess of
the average rate of interest earned for the year over the statutory
two percent rate plus twenty-five hundredths of one percent.
(2) The average rate of interest earned and the interest dividend
rate in percent shall be calculated to the nearest one hundredth,
that is, to two decimal places.
(3) Interest and interest dividends calculated pursuant to this
subsection shall be compounded annually.
2. For calendar years beginning January 1, 1997, a per annum
interest rate at one percent above the interest rate on one-year
certificates of deposit shall be credited to the member's
contributions and the employer's contributions to become part of the
accumulated contributions and accumulated employer contributions
account. For purposes of this subsection, the interest rate on
one-year certificates of deposit shall be determined by the system
based on the average rate for such certificates of deposit as of the
first business day of each year as published in a publication of
general acceptance in the business community. The per annum interest
rate shall be credited on a quarterly basis by applying one-quarter
of the annual interest rate to the sum of the accumulated
contributions and the accumulated employer contributions as of the
end of the previous calendar quarter.
3. Interest shall be credited to the accumulated contributions
and accumulated employer contributions accounts, and supplemental
accounts of active members, inactive vested members, and, effective
January 1, 1999, to inactive nonvested members, until the quarter
prior to the quarter in which the member's first retirement allowance
is paid or in which the member is issued a refund under section
97B.53, or in which a death benefit is issued.
4. Prior to January 1, 1999, interest and interest dividends
shall be credited to the accumulated contributions and accumulated
employer contributions account of a person who leaves the
contributions in the retirement fund upon termination from covered
employment prior to achieving vested status, but who subsequently
returns to covered employment. Upon return to covered employment but
prior to January 1, 1999, interest and interest dividends shall be
credited to the accumulated contributions and accumulated employer
contributions account of the person commencing upon the date on which
the person has covered wages.
5. If the system no longer maintains the accumulated
contributions and accumulated employer contributions account of the
person pursuant to this chapter, but the person submits satisfactory
proof to the system that the person, or the person's employer, did
make contributions that should be included in the accumulated
contributions and accumulated employer contributions account, the
system shall credit interest and interest dividends in the manner
provided in subsection 4.
97B.70 INTEREST AND DIVIDENDS TO MEMBERS.
1. For calendar years prior to January 1, 1997, interest at two
percent per annum and interest dividends declared by the system shall
be credited to the member's contributions and the employer's
contributions to become part of the accumulated contributions and
accumulated employer contributions thereby.
a. The average rate of interest earned shall be determined
upon the following basis:
(1) Investment income shall include interest and cash dividends
on stock.
(2) Investment income shall be accounted for on an accrual basis.
(3) Capital gains and losses, realized or unrealized, shall not
be included in investment income.
(4) Mean assets shall include fixed income investments valued at
cost or on an amortized basis, and common stocks at market values or
cost, whichever is lower.
(5) The average rate of earned interest shall be the quotient of
the investment income and the mean assets of the retirement fund.
b. The interest dividend shall be determined within sixty
days after the end of each calendar year as follows:
(1) The dividend rate for a calendar year shall be the excess of
the average rate of interest earned for the year over the statutory
two percent rate plus twenty-five hundredths of one percent.
(2) The average rate of interest earned and the interest dividend
rate in percent shall be calculated to the nearest one hundredth,
that is, to two decimal places.
(3) Interest and interest dividends calculated pursuant to this
subsection shall be compounded annually.
2. For calendar years beginning January 1, 1997, a per annum
interest rate at one percent above the interest rate on one-year
certificates of deposit shall be credited to the member's
contributions and the employer's contributions to become part of the
accumulated contributions and accumulated employer contributions
account. For purposes of this subsection, the interest rate on
one-year certificates of deposit shall be determined by the system
based on the average rate for such certificates of deposit as of the
first business day of each year as published in a publication of
general acceptance in the business community. The per annum interest
rate shall be credited on a quarterly basis by applying one-quarter
of the annual interest rate to the sum of the accumulated
contributions and the accumulated employer contributions as of the
end of the previous calendar quarter.
3. Interest shall be credited to the accumulated contributions
and accumulated employer contributions accounts, and supplemental
accounts of active members, inactive vested members, and, effective
January 1, 1999, to inactive nonvested members, until the quarter
prior to the quarter in which the member's first retirement allowance
is paid or in which the member is issued a refund under section
97B.53, or in which a death benefit is issued.
4. Prior to January 1, 1999, interest and interest dividends
shall be credited to the accumulated contributions and accumulated
employer contributions account of a person who leaves the
contributions in the retirement fund upon termination from covered
employment prior to achieving vested status, but who subsequently
returns to covered employment. Upon return to covered employment but
prior to January 1, 1999, interest and interest dividends shall be
credited to the accumulated contributions and accumulated employer
contributions account of the person commencing upon the date on which
the person has covered wages.
5. If the system no longer maintains the accumulated
contributions and accumulated employer contributions account of the
person pursuant to this chapter, but the person submits satisfactory
proof to the system that the person, or the person's employer, did
make contributions that should be included in the accumulated
contributions and accumulated employer contributions account, the
system shall credit interest and interest dividends in the manner
provided in subsection 4.
