This bill amends the Iowa Public Employees Retirement System (IPERS) to adjust benefits and contributions for members employed in protection occupations. It specifies that from July 1, 2011, until June 30, 2025, the contribution rates for employees and employers will be set at 40% and 60%, respectively. However, starting July 1, 2025, the employee contribution rate will increase to 50%, while the employer contribution rate will decrease to 50% for members in protection occupations. Additionally, the bill modifies the calculation of monthly retirement benefits for these members, increasing the applicable percentage for service beyond 22 years from 0.375% to 0.625%, allowing for a maximum of 20 additional percentage points.

Furthermore, the bill allows members of protection occupations to retire at 50 years of age with at least 22 years of service, rather than the previous requirement of 55 years of age. It also introduces a cost-of-living adjustment (COLA) for monthly retirement allowances starting July 1, 2025, which will increase by 1.5% annually for eligible retirees, beneficiaries, and contingent annuitants. However, eligibility for the COLA requires the member to have 22 years of eligible service and to be at least 50 years old at retirement. Members receiving the COLA will not be eligible for retirement dividends under existing law.

Statutes affected:
Introduced: 97B.11, 97B.49B, 97B.49A