Fiscal Note
Fiscal Services Division
HF 2374 – IPERS, Protection Occupations (LSB5411HV)
Staff Contact: Jennifer Acton (515.281.7846) jennifer.acton@legis.iowa.gov
Fiscal Note Version – New
Requester: Representative Brent Siegrist
Description
House File 2374 broadens the definition of an Iowa Public Employees’ Retirement System
(IPERS) member eligible for the Protection Occupation membership group to include fire
fighters and police officers employed by a covered employer, which includes the State Fair
police. The Bill prohibits IPERS from collecting any additional contributions to pay the actuarial
cost of the membership reclassification. The Bill takes effect upon enactment and is retroactive
to July 1, 2017.
Background
Under current law, only members who are employed by a city are eligible for membership in the
Protection Occupation membership group. The Iowa State Fair police are members of IPERS
Regular membership group. The Iowa State Fair Authority has reported wages to IPERS for 29
police officers since 2017.
For FY 2022 and for FY 2023, the annual contribution rate for Regular Membership is 15.73%,
of which 9.44% is paid by the employer and 6.29% is paid by the employee. The
FY 2022 and FY 2023 annual contribution rate is 15.52%, of which 9.31% is paid by the
employer and 6.21% is paid by the employee. As of June 30, 2021, the IPERS Trust Fund had
a balance of $42.850 billion. The aggregate funded ratio was 88.34%.
Assumptions
• Fire fighters and police officers who are currently employed by an employer other than a city
will be reclassified from the Regular membership group to the Protection Occupation
membership group, retroactive to July 1, 2017.
• Protection Occupation members and Regular members pay a similar annual rate
contribution. The difference in contributions between July 1, 2017, and December 31, 2021,
is approximately $15,000.
Fiscal Impact
The fiscal impact is anticipated to be minimal, and any costs will be absorbed within the IPERS
Trust Fund.
Source
Iowa Public Employees’ Retirement System (IPERS)
/s/ Holly M. Lyons
February 16, 2022
Doc ID 1287251
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The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 97B.49B