97B.80C PURCHASES OF PERMISSIVE SERVICE CREDIT.
1. Definitions. For purposes of this section:
a. "Nonqualified service" means any of the following:
(1) Service that is not qualified service.
(2) Any period of time for which there was no performance of
services.
(3) Service as described in subsection 1, paragraph "c",
subparagraph (2).
b. "Permissive service credit" means credit that will be
recognized by the retirement system for purposes of calculating a
member's benefit, for which the member did not previously receive
service credit in the retirement system, and for which the member
voluntarily contributes to the retirement system the amount required
by the retirement system, not in excess of the amount necessary to
fund the benefit attributable to such service.
c. (1) "Qualified service" means any of the following:
(a) Service with the United States government or any state or
local government, including any agency or instrumentality thereof,
regardless of whether that government, agency, or instrumentality was
a covered employer at the time of the service.
(b) Service with an association representing employees of the
United States government or any state or local government, including
any agency or instrumentality thereof, regardless of whether that
government, agency, or instrumentality was a covered employer at the
time of the service.
(c) Service with an educational organization which normally
maintains a regular faculty and curriculum, normally has a regularly
enrolled body of pupils or students in attendance at the place where
its educational activities are regularly carried on, and is a public,
private, or sectarian school which provides elementary education or
secondary education through grade twelve.
(d) Military service other than military service required to be
recognized under Internal Revenue Code section 414(u) or under the
federal Uniformed Services Employment and Reemployment Rights Act.
(e) Service as a member of the general assembly.
(f) Previous service as a county attorney by a part-time county
attorney.
(g) Service in public employment comparable to employment covered
under this chapter in another state or in the federal government, or
service as a member of another public retirement system in this
state, including but not limited to the teachers insurance and
annuity association-college retirement equities fund (TIAA-CREF), if
the member was not retired under that system and has no further claim
upon a retirement benefit from that other public system.
(h) Service as a member of the retirement system at any time on
or after July 4, 1953, if the member received a refund of the
member's accumulated contributions for that period of membership
service.
(i) An approved leave of absence which does not constitute
service as defined in section 97B.1A, which is granted on or after
July 1, 1998.
(j) Employment of a person who at the time of the employment was
not covered by this chapter, was employed by a covered employer under
this chapter, and did not opt out of coverage under this chapter.
(k) Employment of a person as an adjunct instructor as defined in
section 97B.1A, subsection 8.
(2) "Qualified service" does not include service as described
in subparagraph (1) if the receipt of credit for such service would
result in the member receiving a retirement benefit under more than
one retirement plan for the same period of service.
2. a. A vested or retired member may make contributions to
the retirement system to purchase up to the maximum amount of
permissive service credit for qualified service as determined by the
system, pursuant to Internal Revenue Code section 415(n), the
requirements of this section, and the system's administrative rules.
b. A vested or retired member of the retirement system may
make contributions to the retirement system to purchase up to a
maximum of twenty quarters of permissive service credit for
nonqualified service as determined by the system, pursuant to
Internal Revenue Code section 415(n), the requirements of this
section, and the system's administrative rules. A vested or retired
member must have at least twenty quarters of covered wages in order
to purchase permissive service credit for nonqualified service.
c. A vested or retired member may convert regular member
service credit to special service credit by payment of the amount
actuarially determined as necessary to fund the resulting increase in
the member's accrued benefit. The conversion shall be treated as a
purchase of qualified service credit subject to the requirements of
paragraph "a" if the service credit to be converted was or would
have been for qualified service. The conversion shall be treated as
a purchase of nonqualified service credit subject to the requirements
of paragraph "b" if the service credit to be converted was
purchased as nonqualified service credit.
3. a. A member making contributions for a purchase of
permissive service credit under this section, except as otherwise
provided by this subsection, shall make contributions in an amount
equal to the actuarial cost of the permissive service credit
purchase.
b. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (e), under this section, the member shall make contributions
in an amount equal to forty percent of the actuarial cost of the
service purchase. There is appropriated from the general fund of the
state to the system an amount sufficient to pay sixty percent of the
actuarial cost of the service purchase by a member pursuant to this
paragraph.
c. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (f), under this section, the member shall make contributions
in an amount equal to forty percent of the actuarial cost of the
service purchase. Upon notification of the applicable county board
of supervisors of the member's election, the county board of
supervisors shall pay to the system an amount sufficient to pay sixty
percent of the actuarial cost of the service purchase by a member
pursuant to this paragraph.
d. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (h), in which, prior to July 1, 1998, the member received a
refund of the member's accumulated contributions and subsequently
returned to covered employment as a full-time employee for whom
coverage under this chapter was mandatory the member shall receive a
credit against the actuarial cost of the service purchase equal to
the amount of the member's employer's accumulated contributions which
were not paid to the member as a refund pursuant to section 97B.53
plus interest as calculated pursuant to section 97B.70.
e. For purposes of this subsection, the actuarial cost of the
service purchase is an amount determined by the system in accordance
with actuarial tables, as reported to the system by the system's
actuary, which reflects the actuarial cost necessary to fund an
increased retirement allowance resulting from the purchase of
permissive service credit.
4. Effective July 1, 2004, a member eligible for an increased
retirement allowance because of the payment of contributions under
this or any other section providing for the purchase of service
credit is entitled to adjusted payments beginning with the month in
which the member pays contributions under the applicable section.
5. Effective July 1, 2004, a purchase of service made in
accordance with this or any other section providing for the purchase
of service credit by a retired reemployed member shall be applied to
the member's original retirement allowance. The member is eligible
to receive adjustment payments beginning with the month of the
purchase.
6. A member who is entitled to a benefit from another public
retirement system and wishes to purchase the service covered by that
public retirement system must waive, on a form provided by the Iowa
public employees' retirement system, all rights to a retirement
benefit under that other public system before purchasing credit in
this system for the period of service covered by that other public
system. The waiver must be accepted by the other public system. If
the waiver is not obtained, a member may buy up to twenty quarters of
such service credit. In no event can a member receive more than one
service credit for any given calendar quarter.
7. The system shall ensure that the member, in exercising an
option provided in this section, does not exceed the amount of annual
additions to a member's account permitted pursuant to section 415 of
the federal Internal Revenue Code.
Section History: Recent Form
2002 Acts, ch 1135, §33; 2003 Acts, ch 145, §286; 2004 Acts, ch
1103, §53--56; 2008 Acts, ch 1171, §41--43, 48, 49; 2009 Acts, ch 41,
§263
Referred to in § 97B.43, 97B.50, 97B.82
Payment of applicable contribution amount to replace contributions
not made because of employer-mandated reductions in hours during the
time period beginning on or after January 1, 2009, and ending June
30, 2010; 2009 Acts, ch 170, §51, 55
97B.80C PURCHASES OF PERMISSIVE SERVICE CREDIT.
1. Definitions. For purposes of this section:
a. "Nonqualified service" means any of the following:
(1) Service that is not qualified service.
(2) Any period of time for which there was no performance of
services.
(3) Service as described in subsection 1, paragraph "c",
subparagraph (2).
b. "Permissive service credit" means credit that will be
recognized by the retirement system for purposes of calculating a
member's benefit, for which the member did not previously receive
service credit in the retirement system, and for which the member
voluntarily contributes to the retirement system the amount required
by the retirement system, not in excess of the amount necessary to
fund the benefit attributable to such service.
c. (1) "Qualified service" means any of the following:
(a) Service with the United States government or any state or
local government, including any agency or instrumentality thereof,
regardless of whether that government, agency, or instrumentality was
a covered employer at the time of the service.
(b) Service with an association representing employees of the
United States government or any state or local government, including
any agency or instrumentality thereof, regardless of whether that
government, agency, or instrumentality was a covered employer at the
time of the service.
(c) Service with an educational organization which normally
maintains a regular faculty and curriculum, normally has a regularly
enrolled body of pupils or students in attendance at the place where
its educational activities are regularly carried on, and is a public,
private, or sectarian school which provides elementary education or
secondary education through grade twelve.
(d) Military service other than military service required to be
recognized under Internal Revenue Code section 414(u) or under the
federal Uniformed Services Employment and Reemployment Rights Act.
(e) Service as a member of the general assembly.
(f) Previous service as a county attorney by a part-time county
attorney.
(g) Service in public employment comparable to employment covered
under this chapter in another state or in the federal government, or
service as a member of another public retirement system in this
state, including but not limited to the teachers insurance and
annuity association-college retirement equities fund (TIAA-CREF), if
the member was not retired under that system and has no further claim
upon a retirement benefit from that other public system.
(h) Service as a member of the retirement system at any time on
or after July 4, 1953, if the member received a refund of the
member's accumulated contributions for that period of membership
service.
(i) An approved leave of absence which does not constitute
service as defined in section 97B.1A, which is granted on or after
July 1, 1998.
(j) Employment of a person who at the time of the employment was
not covered by this chapter, was employed by a covered employer under
this chapter, and did not opt out of coverage under this chapter.
(k) Employment of a person as an adjunct instructor as defined in
section 97B.1A, subsection 8.
(2) "Qualified service" does not include service as described
in subparagraph (1) if the receipt of credit for such service would
result in the member receiving a retirement benefit under more than
one retirement plan for the same period of service.
2. a. A vested or retired member may make contributions to
the retirement system to purchase up to the maximum amount of
permissive service credit for qualified service as determined by the
system, pursuant to Internal Revenue Code section 415(n), the
requirements of this section, and the system's administrative rules.
b. A vested or retired member of the retirement system may
make contributions to the retirement system to purchase up to a
maximum of twenty quarters of permissive service credit for
nonqualified service as determined by the system, pursuant to
Internal Revenue Code section 415(n), the requirements of this
section, and the system's administrative rules. A vested or retired
member must have at least twenty quarters of covered wages in order
to purchase permissive service credit for nonqualified service.
c. A vested or retired member may convert regular member
service credit to special service credit by payment of the amount
actuarially determined as necessary to fund the resulting increase in
the member's accrued benefit. The conversion shall be treated as a
purchase of qualified service credit subject to the requirements of
paragraph "a" if the service credit to be converted was or would
have been for qualified service. The conversion shall be treated as
a purchase of nonqualified service credit subject to the requirements
of paragraph "b" if the service credit to be converted was
purchased as nonqualified service credit.
3. a. A member making contributions for a purchase of
permissive service credit under this section, except as otherwise
provided by this subsection, shall make contributions in an amount
equal to the actuarial cost of the permissive service credit
purchase.
b. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (e), under this section, the member shall make contributions
in an amount equal to forty percent of the actuarial cost of the
service purchase. There is appropriated from the general fund of the
state to the system an amount sufficient to pay sixty percent of the
actuarial cost of the service purchase by a member pursuant to this
paragraph.
c. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (f), under this section, the member shall make contributions
in an amount equal to forty percent of the actuarial cost of the
service purchase. Upon notification of the applicable county board
of supervisors of the member's election, the county board of
supervisors shall pay to the system an amount sufficient to pay sixty
percent of the actuarial cost of the service purchase by a member
pursuant to this paragraph.
d. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (h), in which, prior to July 1, 1998, the member received a
refund of the member's accumulated contributions and subsequently
returned to covered employment as a full-time employee for whom
coverage under this chapter was mandatory the member shall receive a
credit against the actuarial cost of the service purchase equal to
the amount of the member's employer's accumulated contributions which
were not paid to the member as a refund pursuant to section 97B.53
plus interest as calculated pursuant to section 97B.70.
e. For purposes of this subsection, the actuarial cost of the
service purchase is an amount determined by the system in accordance
with actuarial tables, as reported to the system by the system's
actuary, which reflects the actuarial cost necessary to fund an
increased retirement allowance resulting from the purchase of
permissive service credit.
4. Effective July 1, 2004, a member eligible for an increased
retirement allowance because of the payment of contributions under
this or any other section providing for the purchase of service
credit is entitled to adjusted payments beginning with the month in
which the member pays contributions under the applicable section.
5. Effective July 1, 2004, a purchase of service made in
accordance with this or any other section providing for the purchase
of service credit by a retired reemployed member shall be applied to
the member's original retirement allowance. The member is eligible
to receive adjustment payments beginning with the month of the
purchase.
6. A member who is entitled to a benefit from another public
retirement system and wishes to purchase the service covered by that
public retirement system must waive, on a form provided by the Iowa
public employees' retirement system, all rights to a retirement
benefit under that other public system before purchasing credit in
this system for the period of service covered by that other public
system. The waiver must be accepted by the other public system. If
the waiver is not obtained, a member may buy up to twenty quarters of
such service credit. In no event can a member receive more than one
service credit for any given calendar quarter.
7. The system shall ensure that the member, in exercising an
option provided in this section, does not exceed the amount of annual
additions to a member's account permitted pursuant to section 415 of
the federal Internal Revenue Code.
Section History: Recent Form
2002 Acts, ch 1135, §33; 2003 Acts, ch 145, §286; 2004 Acts, ch
1103, §53--56; 2008 Acts, ch 1171, §41--43, 48, 49; 2009 Acts, ch 41,
§263
Referred to in § 97B.43, 97B.50, 97B.82
Payment of applicable contribution amount to replace contributions
not made because of employer-mandated reductions in hours during the
time period beginning on or after January 1, 2009, and ending June
30, 2010; 2009 Acts, ch 170, §51, 55
97B.80C PURCHASES OF PERMISSIVE SERVICE CREDIT.
1. Definitions. For purposes of this section:
a. "Nonqualified service" means any of the following:
(1) Service that is not qualified service.
(2) Any period of time for which there was no performance of
services.
(3) Service as described in subsection 1, paragraph "c",
subparagraph (2).
b. "Permissive service credit" means credit that will be
recognized by the retirement system for purposes of calculating a
member's benefit, for which the member did not previously receive
service credit in the retirement system, and for which the member
voluntarily contributes to the retirement system the amount required
by the retirement system, not in excess of the amount necessary to
fund the benefit attributable to such service.
c. (1) "Qualified service" means any of the following:
(a) Service with the United States government or any state or
local government, including any agency or instrumentality thereof,
regardless of whether that government, agency, or instrumentality was
a covered employer at the time of the service.
(b) Service with an association representing employees of the
United States government or any state or local government, including
any agency or instrumentality thereof, regardless of whether that
government, agency, or instrumentality was a covered employer at the
time of the service.
(c) Service with an educational organization which normally
maintains a regular faculty and curriculum, normally has a regularly
enrolled body of pupils or students in attendance at the place where
its educational activities are regularly carried on, and is a public,
private, or sectarian school which provides elementary education or
secondary education through grade twelve.
(d) Military service other than military service required to be
recognized under Internal Revenue Code section 414(u) or under the
federal Uniformed Services Employment and Reemployment Rights Act.
(e) Service as a member of the general assembly.
(f) Previous service as a county attorney by a part-time county
attorney.
(g) Service in public employment comparable to employment covered
under this chapter in another state or in the federal government, or
service as a member of another public retirement system in this
state, including but not limited to the teachers insurance and
annuity association-college retirement equities fund (TIAA-CREF), if
the member was not retired under that system and has no further claim
upon a retirement benefit from that other public system.
(h) Service as a member of the retirement system at any time on
or after July 4, 1953, if the member received a refund of the
member's accumulated contributions for that period of membership
service.
(i) An approved leave of absence which does not constitute
service as defined in section 97B.1A, which is granted on or after
July 1, 1998.
(j) Employment of a person who at the time of the employment was
not covered by this chapter, was employed by a covered employer under
this chapter, and did not opt out of coverage under this chapter.
(k) Employment of a person as an adjunct instructor as defined in
section 97B.1A, subsection 8.
(2) "Qualified service" does not include service as described
in subparagraph (1) if the receipt of credit for such service would
result in the member receiving a retirement benefit under more than
one retirement plan for the same period of service.
2. a. A vested or retired member may make contributions to
the retirement system to purchase up to the maximum amount of
permissive service credit for qualified service as determined by the
system, pursuant to Internal Revenue Code section 415(n), the
requirements of this section, and the system's administrative rules.
b. A vested or retired member of the retirement system may
make contributions to the retirement system to purchase up to a
maximum of twenty quarters of permissive service credit for
nonqualified service as determined by the system, pursuant to
Internal Revenue Code section 415(n), the requirements of this
section, and the system's administrative rules. A vested or retired
member must have at least twenty quarters of covered wages in order
to purchase permissive service credit for nonqualified service.
c. A vested or retired member may convert regular member
service credit to special service credit by payment of the amount
actuarially determined as necessary to fund the resulting increase in
the member's accrued benefit. The conversion shall be treated as a
purchase of qualified service credit subject to the requirements of
paragraph "a" if the service credit to be converted was or would
have been for qualified service. The conversion shall be treated as
a purchase of nonqualified service credit subject to the requirements
of paragraph "b" if the service credit to be converted was
purchased as nonqualified service credit.
3. a. A member making contributions for a purchase of
permissive service credit under this section, except as otherwise
provided by this subsection, shall make contributions in an amount
equal to the actuarial cost of the permissive service credit
purchase.
b. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (e), under this section, the member shall make contributions
in an amount equal to forty percent of the actuarial cost of the
service purchase. There is appropriated from the general fund of the
state to the system an amount sufficient to pay sixty percent of the
actuarial cost of the service purchase by a member pursuant to this
paragraph.
c. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (f), under this section, the member shall make contributions
in an amount equal to forty percent of the actuarial cost of the
service purchase. Upon notification of the applicable county board
of supervisors of the member's election, the county board of
supervisors shall pay to the system an amount sufficient to pay sixty
percent of the actuarial cost of the service purchase by a member
pursuant to this paragraph.
d. For a member making contributions for a purchase of
permissive service credit for qualified service as described in
subsection 1, paragraph "c", subparagraph (1), subparagraph
division (h), in which, prior to July 1, 1998, the member received a
refund of the member's accumulated contributions and subsequently
returned to covered employment as a full-time employee for whom
coverage under this chapter was mandatory the member shall receive a
credit against the actuarial cost of the service purchase equal to
the amount of the member's employer's accumulated contributions which
were not paid to the member as a refund pursuant to section 97B.53
plus interest as calculated pursuant to section 97B.70.
e. For purposes of this subsection, the actuarial cost of the
service purchase is an amount determined by the system in accordance
with actuarial tables, as reported to the system by the system's
actuary, which reflects the actuarial cost necessary to fund an
increased retirement allowance resulting from the purchase of
permissive service credit.
4. Effective July 1, 2004, a member eligible for an increased
retirement allowance because of the payment of contributions under
this or any other section providing for the purchase of service
credit is entitled to adjusted payments beginning with the month in
which the member pays contributions under the applicable section.
5. Effective July 1, 2004, a purchase of service made in
accordance with this or any other section providing for the purchase
of service credit by a retired reemployed member shall be applied to
the member's original retirement allowance. The member is eligible
to receive adjustment payments beginning with the month of the
purchase.
6. A member who is entitled to a benefit from another public
retirement system and wishes to purchase the service covered by that
public retirement system must waive, on a form provided by the Iowa
public employees' retirement system, all rights to a retirement
benefit under that other public system before purchasing credit in
this system for the period of service covered by that other public
system. The waiver must be accepted by the other public system. If
the waiver is not obtained, a member may buy up to twenty quarters of
such service credit. In no event can a member receive more than one
service credit for any given calendar quarter.
7. The system shall ensure that the member, in exercising an
option provided in this section, does not exceed the amount of annual
additions to a member's account permitted pursuant to section 415 of
the federal Internal Revenue Code.
Section History: Recent Form
2002 Acts, ch 1135, §33; 2003 Acts, ch 145, §286; 2004 Acts, ch
1103, §53--56; 2008 Acts, ch 1171, §41--43, 48, 49; 2009 Acts, ch 41,
§263
Referred to in § 97B.43, 97B.50, 97B.82
Payment of applicable contribution amount to replace contributions
not made because of employer-mandated reductions in hours during the
time period beginning on or after January 1, 2009, and ending June
30, 2010; 2009 Acts, ch 170, §51, 55
