Notice of Intended Action

Contribution rates; SECURE 2.0 Act of 2022; paper warrant processing fee; alignment, 4.6, 5.2(6)“g,” 11.2(4)“a,” 11.6(1), 11.7(6)

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ARC 7648C

IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM[495]

Notice of Intended Action

Proposing rulemaking related to contribution rates, SECURE 2.0 Act of 2022, processing fee,

and alignment and providing an opportunity for public comment

The Iowa Public Employees' Retirement System (IPERS) hereby proposes to amend Chapter 4, "Employers," Chapter 5, "Employees," and Chapter 11, "Application for, Modification of, and Termination of Benefits," Iowa Administrative Code.

Legal Authority for Rulemaking

This rulemaking is proposed under the authority provided in Iowa Code sections 97B.4 and 97B.15.

State or Federal Law Implemented

This rulemaking implements, in whole or in part, Iowa Code chapter 97B.

Purpose and Summary

This proposed rulemaking is intended to conform rules with other rules and statutes or rescind rules that are outdated, redundant, inconsistent, or no longer in effect to meet the requirements of the statutory five-year review of rules for Chapters 6 through 10 and Executive Order 10 (January 10, 2023); implement contribution rates for employers, regular members, and special service members beginning July 1, 2024, to reflect FY 2025 rates; eliminate an invalid reference within a lettered paragraph as requested by the Legislative Services Agency (LSA); align an existing lettered paragraph with applicable provision(s) of the Federal SECURE 2.0 Act of 2022; add a dollar amount to an existing subrule establishing that IPERS will charge a processing fee for paper warrants, pursuant to new Iowa Code section 17A.6C, which requires any fee established by an agency be adopted by rule; and bring an existing subrule, pursuant to 2020 Iowa Acts, House File 2565, as amended by sections 72 through 74 of 2020 Iowa Acts, House File 2641, into compliance with the required transition from the Department of Administrative Services to the Department of Revenue.

Fiscal Impact

This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition IPERS for a waiver of the discretionary provisions, if any.

Public Comment

Any interested person may submit written or oral comments concerning this proposed rulemaking. Written or oral comments in response to this rulemaking must be received by IPERS no later than 4:30 p.m.on March 12, 2024. Comments should be directed to:

Cheryl Vander Hart

Iowa Public Employees' Retirement System

7401 Register Drive

Des Moines, Iowa 50321

Phone: 515.281.7623

Email: cheryl.vanderhart@ipers.org

Public Hearing

A public hearing at which persons may present their views orally or in writing will be held as follows:

March 12, 2024

10 to 11 a.m.

IPERS Boardroom

7401 Register Drive

Des Moines, Iowa

Via conference call:

teams.microsoft.com/l/meetup-join

Meeting ID: 227 084 262 326

Passcode: Rqm7hh

Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact IPERS and advise of specific needs.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rulemaking action is proposed:

Item 1. Amend subrules 4.6(1) to 4.6(3) as follows:

4.6(1) Contribution rates for regular class members.

a. No change.

b. Effective July 1, 2012, and every year thereafter, the contribution rates for regular members shall be publicly declared by IPERS staff no later than the preceding December as determined by the annual valuation of the preceding fiscal year. The public declaration of contribution rates will be followed by rule making rulemaking that will include a notice and comment period and that will become effective July 1 of the next fiscal year. Contribution rates for regular members are as follows.

Effective

July 1, 2019

Effective

July 1, 2020

Effective

July 1, 2021

Effective

July 1, 2022

Effective

July 1, 2023

Effective

July 1, 2024

Combined rate

15.73%

15.73%

15.73%

15.73%

15.73%

15.73%

Employer

9.44%

9.44%

9.44%

9.44%

9.44%

9.44%

Employee

6.29%

6.29%

6.29%

6.29%

6.29%

6.29%

4.6(2) Contribution rates for sheriffs and deputy sheriffs are as follows.

Effective

July 1, 2019

Effective

July 1, 2020

Effective

July 1, 2021

Effective

July 1, 2022

Effective

July 1, 2023

Effective

July 1, 2024

Combined rate

19.02%

18.52%

18.02%

17.52%

17.02%

17.02%

Employer

9.51%

9.26%

9.01%

8.76%

8.51%

8.51%

Employee

9.51%

9.26%

9.01%

8.76%

8.51%

8.51%

4.6(3) Contribution rates for protection occupations are as follows.

Effective

July 1, 2019

Effective

July 1, 2020

Effective

July 1, 2021

Effective

July 1, 2022

Effective

July 1, 2023

Effective

July 1, 2024

Combined rate

16.52%

16.02%

15.52%

15.52%

15.52%

15.52%

Employer

9.91%

9.61%

9.31%

9.31%

9.31%

9.31%

Employee

6.61%

6.41%

6.21%

6.21%

6.21%

6.21%

Item 2. Amend paragraph 5.2(6)"g" as follows:

g. An emergency medical care provider who provides emergency medical services, as defined in Iowa Code section 147A.1, and who is not a member of the retirement systems established in Iowa Code chapter 401 or 411 shall be covered.

Item 3. Amend paragraph 11.2(4)"a" as follows:

a. Notwithstanding the foregoing, IPERS shall commence payment of a member's retirement benefit under Iowa Code sections 97B.49A to 97B.49I (under Option 2) no later than the "required beginning date" specified under Internal Revenue Code Section 401(a)(9), even if the member has not submitted the application for benefits. If the lump sum actuarial equivalent could have been elected by the member, payments shall be made in such a lump sum rather than as a monthly allowance. The "required beginning date" is defined as the later of: (1) April 1 of the year following the year that the member attains the age of 72 (or the age of 70 ½ for that member who attains the age of 70 ½ on or before December 31, 2019), or (2) April 1 of the year following the year that the member actually terminates all employment with employers covered under Iowa Code chapter 97B.

(1)April 1 of the year following the year that the member attains the applicable age, determined as follows:

1.For members who turned age 72 before 2023, the applicable age is age 72 (or age 70 ½ if they were born before July 1, 1949), and

2.For members who will turn age 72 after 2022 and age 73 before 2033, the applicable age is age 73; or

(2)April 1 of the year following the year that the member actually terminates all employment with employers covered under Iowa Code chapter 97B.

Item 4. Amend subrule 11.6(1) as follows:

11.6(1) Monthly paper warrants processing fee. Effective July 1, 2005, IPERS shall charge a $1 per-warrant processing fee to members who choose to receive paper warrants in lieu of electronic deposits of their monthly retirement allowance. The fee may be waived if the person establishes that it would be an undue hardship for the person to do what is necessary to receive payment of the person's IPERS monthly retirement allowance by electronic deposit. The processing fee will be deducted from the member's retirement allowance on a posttax basis.

For purposes of this subrule, a member claiming undue hardship must establish that the cost normally assessed for the processing of paper warrants would be unduly burdensome because of the member's limited income, or is otherwise financially burdensome or physically impracticable.

Item 5. Amend subrule 11.7(6) as follows:

11.7(6) Offsets against amounts payable. IPERS may, in addition to other remedies and after notice to the recipient, request an offset against amounts owing to the recipient by the state according to the offset procedures pursuant to Iowa Code sections 8A.504 and 421.17, or section 421.65 as enacted by 2020 Iowa Acts, House File 2565, section 16, as applicable.

Iowa Public Employees’ Retirement System

Providing retirement security to Iowans who dedicate their careers to public service.

Closed For Comments

This notice is now closed for comments. Collection of comments closed on 3/12/2024.

Official Document

  • Contribution rates; SECURE 2.0 Act of 2022; paper warrant processing fee; alignment, 4.6, 5.2(6)“g,” 11.2(4)“a,” 11.6(1), 11.7(6)
  • Published on 2/21/2024
  • 183 Views , 0 Comments
  • Notice of Intended Action

The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.

View Official PDF

View the Iowa Administrative Bulletin for 2/21/2024.

View Bulletin

Administrative Rule References

The following administrative rule references were added to this document. You may click a reference to view related notices.

Rule 495-11.2(4)"a" Rule 495-11.6(1) Rule 495-11.7(6) Rule 495-4.6(1) Rule 495-4.6(3) Rule 495-5.2(6)"g"

Iowa Code References

The following Iowa code references were added to this document. You may click a reference to view related notices.

Iowa Code 147A.1 Iowa Code 401 Iowa Code 411 Iowa Code 421.17 Iowa Code 421.65 Iowa Code 8A.504 Iowa Code 97B Iowa Code 97B.49A Iowa Code 97B.49I

Keywords

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Monthly paper warrants processing fee Offsets against amounts payable
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