IowaProtection workers follow revised retirement contribution and allowance formulas
Signed legislation sets contribution formulas and retirement allowance rules for Iowa public employees working in protection occupations, including service-based benefits and annual adjustments.
What it does
Protection-occupation employees and employers use set shares of the required retirement contribution rate, with yearly percentage adjustments beginning in fiscal year 2025.
Retirement allowances use different service-credit formulas based on when a vested member retires, including higher limits for retirements starting July 1, 2026.
Eligible protection-occupation retirees may receive a 1.5 percent yearly allowance adjustment, but recipients cannot also receive certain retirement dividends.
Argument forEligible long-service retirees could receive larger allowances through the service-credit formula and yearly 1.5 percent adjustments, subject to the stated requirements.
Argument againstProtection-occupation employees may pay a larger share of required contributions while employers pay less, potentially shifting retirement funding costs onto workers.
More detail
The retirement system calculates employee and employer contribution shares using specified percentages of the required contribution rate. The formulas apply to members described in Iowa Code section 97B.49B and the employers connected to those members. For fiscal years beginning July 1, 2026, the employee and employer percentages are each based on 50 percent of the required contribution rate. For fiscal year 2025 and later, the system adds 0.125 percentage points to the employee percentage and subtracts 0.125 percentage points from the employer percentage. The 50-percent formulas apply beginning with the fiscal year that starts July 1, 2026. The yearly percentage adjustments begin with the fiscal year that starts July 1, 2025.
The retirement system calculates allowances at 60 percent of the stated base, with an added amount for eligible service beyond 22 years. The formulas cover active or inactive vested members retiring under section 97B.49B. For retirements before July 1, 2026, the added amount is three-eighths of one percentage point for each extra calendar quarter, up to 12 percentage points. For retirements on or after July 1, 2026, the added amount is five-eighths of one percentage point for each extra calendar quarter, up to 20 percentage points. The first formula applies to retirements from July 1, 2003, through June 30, 2026. The second applies to retirements on or after July 1, 2026.
The retirement system adds 1.5 percent of the monthly allowance each July 1 for eligible recipients. The provision covers members who retire from a protection occupation on or after July 1, 2026, along with qualifying beneficiaries or contingent annuitants receiving the member’s allowance. The member must have at least 22 years of eligible service and must have reached age 55 before ending employment. Anyone receiving this annual adjustment cannot also receive retirement dividends under section 97B.49F. The adjustment applies on each July 1 to the monthly allowance payable on that date.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 2Signed by Governor Kim Reynolds.Became Law
- May 22Fiscal note.
- May 11Reported correctly enrolled, signed by Speaker and President, and sent to Governor.To Governor
- May 1Explanation of vote.
- Apr 27Message from House.
- Apr 23Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Lower
- Apr 23Passed House, yeas 88, nays 0.Major
- Apr 23House concurred in Senate amendment H-8393.
- Apr 23Amendment H-8400 withdrawn.
- Apr 22Fiscal note.
- Apr 22Amendment H-8400 filed.Minor
- Apr 21Senate amendment H-8393 filed.Minor
- Vote recorded Shall the bill pass? Result: pass.Upper
- Apr 21Message from Senate.
- Apr 21Immediate message.
- Apr 21Passed Senate, yeas 44, nays 0.Passed 2nd Chamber
- Apr 21Amendment S-5011 adopted.Major
- Feb 12Placed on Ways and Means calendar.
- Feb 12Amendment S-5011 filed.Minor
- Feb 12Committee report, recommending amendment and passage.Minor
- 2025
- May 12Subcommittee recommends passage.Minor
- May 9Subcommittee Meeting: 05/12/2025 8:30AM Senate Lounge.
- Apr 30Subcommittee: Dawson, Koelker, and Townsend.
- Apr 28Read first time, referred to Ways and Means.Minor
- Apr 28Message from House.
- Apr 24Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Lower
- Apr 24Passed House, yeas 89, nays 0.Passed 1st Chamber
- Apr 23Fiscal note.
- Apr 17Introduced, placed on Ways and Means calendar.Introduced
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