H.F. 2384 Section 1. Section 97B.1A, subsection 5, Code 2014, is 1 amended to read as follows: 2 5. “Beneficiary” means the person or persons who are 3 entitled to receive any benefits payable under this chapter 4 at the death of a member, if the person or persons have been 5 designated on a form provided by the system and filed with the 6 system or designated pursuant to a qualified domestic relations 7 order on file with the system . If no such designation is in 8 effect at the time of death of the member or if no person so 9 designated is living at that time, then the beneficiary is the 10 estate of the member. 11 Sec. 2. Section 97B.1A, subsection 8, paragraph b, 12 subparagraph (7), Code 2014, is amended to read as follows: 13 (7) Employees of an area agency on aging , if as of July 14 1, 1994, the agency provides for participation by all of its 15 employees who were participating in an alternative qualified 16 plan pursuant to the requirements of the federal Internal 17 Revenue Code on June 30, 2012, and who by September 1, 2013, 18 filed with the system a valid decision to elect out of coverage 19 under this chapter . 20 Sec. 3. Section 97B.1A, subsection 14A, Code 2014, is 21 amended to read as follows: 22 14A. “Member account” means the account established for each 23 member and includes the member’s accumulated contributions and 24 the member’s share of the accumulated employer contributions as 25 provided in section 97B.53 . “Member account” does not mean the 26 supplemental account for active members. 27 Sec. 4. Section 97B.1A, subsection 22A, Code 2014, is 28 amended by striking the subsection. 29 Sec. 5. Section 97B.7A, subsection 5, Code 2014, is amended 30 to read as follows: 31 5. Travel. In the administration of the investment of 32 moneys in the retirement fund, employees of the system and 33 members of the board may travel outside the state for the 34 purpose of meeting with investment firms and consultants and 35 -1- LSB 5224HV (2) 85 ec/sc 1/ 11

H.F. 2384 attending conferences and meetings to fulfill their fiduciary 1 responsibilities. This travel is not subject to section 2 8A.512, subsection 2 . 3 Sec. 6. Section 97B.44, Code 2014, is amended to read as 4 follows: 5 97B.44 Beneficiary. 6 1. Each member shall designate , on a form to be furnished 7 by the system or through a qualified domestic relations order 8 on file with the system, designate a beneficiary for death 9 benefits payable under this chapter on the death of the member. 10 The designation may be changed from time to time by the member 11 by filing a new designation with the system. A designation 12 or change in designation made by a member on or after July 13 1, 2000, shall contain the written consent of the member’s 14 spouse, if applicable. The designation of a beneficiary is not 15 applicable if the member receives a refund of all contributions 16 of the member. If a member who has received a refund of 17 contributions returns to employment, the member shall file a 18 new designation with the system. 19 2. If a member has not designated a beneficiary on a form 20 furnished by the system as provided by this section , or if 21 there are no surviving designated beneficiaries of a member, 22 death benefits payable under this chapter shall be paid to the 23 member’s estate. 24 3. However, the The system may accept a married member’s 25 designation or change in designation under this section without 26 the written consent of the member’s spouse if the member 27 submits a notarized statement indicating that the member has 28 been unable to locate the member’s spouse to obtain the written 29 consent of the spouse after reasonable diligent efforts. The 30 member’s designation or change in designation shall become 31 effective upon filing the necessary forms, including the 32 notarized statement, or orders, with the system. The system 33 shall not be liable to the member, the member’s spouse, or 34 to any other person affected by the member’s designation or 35 -2- LSB 5224HV (2) 85 ec/sc 2/ 11

H.F. 2384 change of designation, based upon a designation or change of 1 designation accomplished without the written consent of the 2 member’s spouse. 3 Sec. 7. Section 97B.46, subsection 2, Code 2014, is amended 4 to read as follows: 5 2. A member remaining in service after attaining the age 6 of seventy years is entitled to receive a retirement allowance 7 under sections 97B.49A through 97B.49H 97B.49G , as applicable, 8 without terminating employment. 9 Sec. 8. Section 97B.48, subsection 4, Code 2014, is amended 10 to read as follows: 11 4. Payment of a member’s retirement allowance pursuant to 12 sections 97B.49A through 97B.49H 97B.49G shall commence no 13 later than the required beginning date specified under section 14 401(a)(9) of the federal Internal Revenue Code regardless of 15 whether the member has submitted the appropriate notice to 16 receive an allowance. If the lump sum actuarial equivalent 17 under subsection 1 could have been selected by the member, 18 payments shall be made in a lump sum rather than as a monthly 19 allowance. 20 Sec. 9. Section 97B.49B, subsection 1, paragraph e, Code 21 2014, is amended by adding the following new subparagraph: 22 NEW SUBPARAGRAPH . (13) A person other than a deputy 23 sheriff, jailer, or detention officer who is employed by a 24 sheriff to provide courthouse security services or prisoner 25 transportation duties, is required as a condition of employment 26 to carry a firearm and has been professionally trained and 27 qualified in the use of any firearm in connection with the 28 individual’s duties, is required and authorized under limited 29 circumstances to perform law enforcement duties that may 30 include but are not limited to detaining persons, taking 31 persons into custody, making arrests, transporting or providing 32 custody and care for those persons under the sheriff’s control, 33 and is a certified Iowa peace officer, has Iowa reserve 34 peace officer certification, or has equivalent peace officer 35 -3- LSB 5224HV (2) 85 ec/sc 3/ 11

H.F. 2384 training. 1 Sec. 10. Section 97B.49F, subsection 2, Code 2014, is 2 amended by striking the subsection. 3 Sec. 11. Section 97B.50A, subsection 1, paragraph b, Code 4 2014, is amended to read as follows: 5 b. “Net disability retirement allowance” means the amount 6 determined by subtracting the amount paid during the previous 7 calendar year by the member for health insurance or similar 8 health care coverage for the member and the member’s dependents 9 from the amount of the member’s disability retirement 10 allowance, including any dividends and distributions from 11 supplemental accounts, paid for that year pursuant to this 12 section . 13 Sec. 12. Section 97B.50A, subsection 9, Code 2014, is 14 amended to read as follows: 15 9. Medical board. The system shall designate a medical 16 board to be composed of three a physician or physicians from 17 the university of Iowa hospitals and clinics who shall arrange 18 for and pass upon the medical examinations required under 19 this section and shall report in writing to the system the 20 conclusions and recommendations upon all matters duly referred 21 to the medical board. Each report of a medical examination 22 under this section shall include the medical board’s findings 23 as to the extent of the member’s physical or mental impairment. 24 Except as required by this section , each report shall be 25 confidential and shall be maintained in accordance with the 26 federal Americans With Disabilities Act, and any other state 27 or federal law containing requirements for confidentiality of 28 medical records. 29 Sec. 13. Section 97B.52A, subsection 1, paragraph c, 30 subparagraph (2), subparagraph division (b), Code 2014, is 31 amended to read as follows: 32 (b) For a member whose first month of entitlement is 33 July 2004 or later, but before July 2014 2016 , covered 34 employment does not include employment as a licensed health 35 -4- LSB 5224HV (2) 85 ec/sc 4/ 11

H.F. 2384 care professional by a public hospital. For the purposes of 1 this subparagraph, “public hospital” means a hospital licensed 2 pursuant to chapter 135B and governed pursuant to chapter 145A , 3 347 , 347A , or 392 . 4 Sec. 14. Section 97B.53, Code 2014, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 11. A request for a refund under this 7 section made by a member who is married requires the written 8 acknowledgment of the member’s spouse. However, the system 9 may accept a married member’s request for a refund under this 10 section without the written acknowledgment of the member’s 11 spouse if the member submits a statement affirming that after 12 reasonable diligent efforts the member has been unable to 13 locate the member’s spouse to obtain the written acknowledgment 14 of the spouse. A married member’s request for a refund under 15 this section shall become effective upon filing the necessary 16 forms, or including the affirmation if applicable, with the 17 system. The system shall not be liable to the member, the 18 member’s spouse, nor to any other person affected by the 19 member’s request for a refund based upon a request for a refund 20 accomplished without the written acknowledgment of the member’s 21 spouse. 22 Sec. 15. Section 97B.53A, Code 2014, is amended to read as 23 follows: 24 97B.53A Duty of system. 25 Upon a member’s termination of covered employment prior to 26 the member’s retirement, the system shall send the member by 27 first class mail, to the member’s last known mailing address, 28 a notice setting forth the balance and status of the member’s 29 account and supplemental account and an explanation of the 30 courses of action available to the member under this chapter . 31 Sec. 16. Section 97B.53B, subsection 1, paragraph d, 32 subparagraph (1), subparagraph division (a), Code 2014, is 33 amended to read as follows: 34 (a) All or any portion of a member’s account and 35 -5- LSB 5224HV (2) 85 ec/sc 5/ 11

H.F. 2384 supplemental account . 1 Sec. 17. Section 97B.70, subsection 3, Code 2014, is amended 2 to read as follows: 3 3. Interest shall be credited to the accumulated 4 contributions and accumulated employer contributions accounts , 5 and supplemental accounts of active members, inactive vested 6 members, and, effective January 1, 1999, to inactive nonvested 7 members, until the quarter prior to the quarter in which the 8 member’s first retirement allowance is paid or in which the 9 member is issued a refund under section 97B.53 , or in which a 10 death benefit is issued. 11 Sec. 18. Section 97B.80, subsection 1, Code 2014, is amended 12 to read as follows: 13 1. a. For purposes of this subsection, “eligible member” 14 means as follows: 15 (1) For the period beginning July 1, 1992, and ending June 16 30, 2014, a vested or retired member who has one or more full 17 calendar years of covered wages. 18 (2) Beginning on or after July 1, 2014, a member vested by 19 service or a retired member who is vested by service and who 20 is within six months of the retired member’s first month of 21 entitlement. 22 b. Effective July 1, 1992, a vested or retired An eligible 23 member who has one or more full calendar years of covered wages 24 and who at any time served on active duty in the armed forces of 25 the United States, upon submitting verification of the dates 26 of the active duty service, may make contributions to the 27 retirement system for all or a portion of the period of time of 28 the active duty service, in increments of one or more calendar 29 quarters, and receive credit for membership service and prior 30 service for the period of time for which the contributions are 31 made. 32 Sec. 19. Section 97B.80C, subsection 1, Code 2014, is 33 amended by adding the following new paragraph: 34 NEW PARAGRAPH . 0a. “Eligible member” means as follows: 35 -6- LSB 5224HV (2) 85 ec/sc 6/ 11

H.F. 2384 (1) Prior to July 1, 2014, a vested or retired member. 1 (2) Beginning on or after July 1, 2014, a member vested by 2 service or a retired member who is vested by service and who 3 is within six months of the retired member’s first month of 4 entitlement. 5 Sec. 20. Section 97B.80C, subsection 2, paragraphs a, b, and 6 c, Code 2014, are amended to read as follows: 7 a. A vested or retired An eligible member may make 8 contributions to the retirement system to purchase up to the 9 maximum amount of permissive service credit for qualified 10 service as determined by the system, pursuant to Internal 11 Revenue Code section 415(n), the requirements of this section , 12 and the system’s administrative rules. 13 b. A vested or retired An eligible member of the retirement 14 system may make contributions to the retirement system to 15 purchase up to a maximum of twenty quarters of permissive 16 service credit for nonqualified service as determined by the 17 system, pursuant to Internal Revenue Code section 415(n), the 18 requirements of this section , and the system’s administrative 19 rules. A vested or retired An eligible member must have at 20 least twenty quarters of covered wages in order to purchase 21 permissive service credit for nonqualified service. 22 c. A vested or retired An eligible member may convert 23 regular member service credit to special service credit by 24 payment of the amount actuarially determined as necessary to 25 fund the resulting increase in the member’s accrued benefit. 26 The conversion shall be treated as a purchase of qualified 27 service credit subject to the requirements of paragraph “a” 28 if the service credit to be converted was or would have been 29 for qualified service. The conversion shall be treated as 30 a purchase of nonqualified service credit subject to the 31 requirements of paragraph “b” if the service credit to be 32 converted was purchased as nonqualified service credit. 33 Sec. 21. Section 231.33, subsection 21, Code 2014, is 34 amended to read as follows: 35 -7- LSB 5224HV (2) 85 ec/sc 7/ 11

H.F. 2384 21. Comply with all applicable requirements of the Iowa 1 public employees’ retirement system established pursuant to 2 chapter 97B . Notwithstanding any provision to the contrary, 3 an employee of an area agency on aging that was enrolled in 4 an alternative qualified plan prior to July 1, 2012, may 5 continue participation in that alternative qualified plan in 6 lieu of mandatory participation in the Iowa public employees’ 7 retirement system. 8 Sec. 22. Section 602.11115, subsection 2, Code 2014, is 9 amended to read as follows: 10 2. To commence coverage under the judicial retirement 11 system pursuant to article 9 , part 1, effective July 1, 1984, 12 but to become an inactive member of the Iowa public employees’ 13 retirement system pursuant to chapter 97B and remain eligible 14 for benefits under sections 97B.49A through 97B.49H 97B.49G for 15 the period of membership service under chapter 97B . 16 Sec. 23. Section 602.11116, subsection 2, Code 2014, is 17 amended to read as follows: 18 2. To commence membership under the judicial retirement 19 system pursuant to article 9 , part 1, effective July 1, 1998, 20 but to become an inactive member of the Iowa public employees’ 21 retirement system pursuant to chapter 97B and remain eligible 22 for benefits under sections 97B.49A through 97B.49H 97B.49G , as 23 applicable, for the period of membership service under chapter 24 97B . 25 Sec. 24. REPEAL. Sections 97B.49H and 97B.49I, Code 2014, 26 are repealed. 27 Sec. 25. EFFECTIVE UPON ENACTMENT. The following 28 provision or provisions of this Act, being deemed of immediate 29 importance, take effect upon enactment: 30 1. The section of this Act amending section 97B.1A, 31 subsection 8, paragraph b, subparagraph (7). 32 Sec. 26. RETROACTIVE APPLICABILITY. The following 33 provision or provisions of this Act apply retroactively to June 34 30, 2012: 35 -8- LSB 5224HV (2) 85 ec/sc 8/ 11

H.F. 2384 1. The section of this Act amending section 97B.1A, 1 subsection 8, paragraph b, subparagraph (7). 2 2. The section of this Act amending section 231.33, 3 subsection 21. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill concerns the Iowa Public Employees’ Retirement 8 System (IPERS). 9 Code sections 97B.1A(5) and 97B.44, concerning beneficiaries 10 under IPERS, are amended to provide that beneficiaries can be 11 designated through a qualified domestic relations order. 12 Code section 97B.1A(8)(b), defining employees who are not 13 covered under IPERS, is amended to provide that employees of an 14 area agency on aging who were participating in an alternative 15 retirement plan on June 30, 2012, and who elected out of IPERS 16 coverage by September 1, 2013, are excluded from coverage under 17 IPERS. A corresponding amendment is made to Code section 18 231.33, concerning area agencies on aging. These provisions 19 take effect upon enactment and apply retroactively to June 30, 20 2012. 21 Code section 97B.49B, concerning members in a protection 22 occupation, is amended to provide that persons employed 23 by a sheriff to provide courthouse security or prisoner 24 transportation duties who are required to carry a firearm, have 25 peace officer training, and are required to perform certain 26 law enforcement duties, are included within the protection 27 occupation category of IPERS. 28 Code section 97B.49F(2), establishing the favorable 29 experience dividend program for IPERS members who retired on or 30 after July 1, 1990, is stricken. 31 Code section 97B.49H, establishing active member 32 supplemental accounts, is repealed. The bill includes 33 corresponding amendments related to the repeal. 34 Code section 97B.49I, providing for a qualified benefits 35 -9- LSB 5224HV (2) 85 ec/sc 9/ 11

H.F. 2384 arrangement, is repealed. 1 Code section 97B.50A(9), concerning the medical board 2 used for purposes of disability benefits for special service 3 IPERS members, is amended to allow IPERS to use one or more 4 physicians from the university of Iowa as the medical board. 5 Current law requires that the medical board consist of three 6 physicians from the university of Iowa. 7 Code section 97B.52A, concerning the determination of a 8 bona fide retirement under IPERS, is amended. Current law 9 allows, until July 2014, a person to retire, receive retirement 10 benefits, and to return to covered employment as a licensed 11 health care professional at a public hospital after one month 12 and still receive retirement benefits. Most retirees under 13 IPERS are not allowed to return to covered employment and 14 continue to receive retirement benefits until at least four 15 months after they retire. The bill extends the sunset of this 16 shortened period for licensed health care professionals from 17 July 2014 to July 2016. 18 Code section 97B.53, concerning refunds, is amended to 19 require a married IPERS member seeking a refund to submit 20 a written acknowledgment of the member’s spouse to IPERS. 21 The bill provides that a married member may still receive 22 a refund if the member is unable to locate the spouse and 23 IPERS shall not be liable based upon a refund made without the 24 acknowledgment of the member’s spouse. 25 Code section 97B.80, concerning the purchase of IPERS 26 service for military service, is amended to provide that only a 27 member vested by service or a retired member who is vested by 28 service and is within six months of the member’s first month 29 of entitlement may make a service purchase under this Code 30 section. Currently, any vested or retired member, regardless 31 of how the member became vested, who has at least one year of 32 IPERS wages may make a service purchase at any time. 33 Code section 97B.80C, concerning purchases of permissive 34 service credit, is amended to provide that only a member 35 -10- LSB 5224HV (2) 85 ec/sc 10/ 11