§ 294.12 — Pension fund held for survivors upon termination

Iowa § 294.12

• Jurisdiction: Iowa
• Title VII: EDUCATION, HISTORY, AND CULTURE
• Ch. 294: TEACHERS

Text

1. In the event of such termination, all assessments of teachers shall cease upon such date
of termination, or upon such earlier date as may be prescribed in such resolution, and no
additionaltaxesshallbeleviedorassessedfortheoperationofsuchsystem, saveasinsection
294.13. Allundisposedoffundsandaccumulationsderivedfromtheoperationofsaidsystem,
including the proceeds, when collected, of any annual tax heretofore levied for the operation
of said system, and including the proceeds of any annual tax levied hereafter pursuant to the
provisions of section 294.13, shall constitute a retirement liquidation fund. Such liquidation
fund shall be held for the benefit of those surviving beneficiaries under such system as of
said date of termination, and of members of such system as of the date of termination. There
shall be set aside from such retirement liquidation fund an amount sufficient to provide for
the payment of all surviving beneficiaries who shall be entitled to receive benefits under such
system as of said date of termination, providing an actuarial computation has been made of
the amount required to meet such benefit payments, providing the amount in the retirement
liquidation fund is sufficient for this purpose, and the amount set aside shall be used for no
other purpose than for the payment of claims to such beneficiaries. Any amount in excess of
theactuarialequivalentofthesumrequiredtopaysuchbenefitpaymentsshallbeapportioned
to persons who were as of the effective date of the termination of the system, members of
such system, in proportion to the amount which the accumulated contribution of each such
person bears to the total funds of such retirement system subject to such apportionment. Any
member of such system as of the date of termination thereof, may, in lieu of receiving the
cash refund of the member’s share of the liquidation fund, elect to come under the coverage
of any new pension and annuity retirement system established by the district, to which the
member is eligible, with credits toward future benefits in consideration of the member’s prior
contributions and length of service, and may direct the transfer of the amount payable to the
member to the assets of the new pension and annuity retirement system. In any case where
the board of directors of a school district including a teachers retirement system established
under the provisions of section 294.8, whose members were not under coverage of the Iowa
old-age and survivors’ insurance system prior to May 1, 1953, the board of directors may
authorize the payment from funds in excess of the actuarial amount estimated as required
for the payment of benefits to persons entitled to them, and for the purpose of obtaining
retroactive social security coverage from January 1, 1951, until the effective date of federal

coverage of Iowa public employees as provided by chapter 97C. Each surviving beneficiary
entitled to receive retirement benefits of the date of termination of the system will be entitled
to receive retirement benefits at the time and in the amount in effect with respect to such
beneficiary immediately prior to the date of termination.
2. In any school district which has pursuant to section 294.11 terminated a previously
existing pension and annuity retirement system and has after actuarial computation
established a retirement reserve fund pursuant to this section in order to pay to surviving
beneficiaries entitled to receive retirement benefits at the date of termination of said system
in the amount in effect with respect to such beneficiaries immediately prior to the date of
termination, the board of directors may authorize each and every payment to each surviving
beneficiary falling due subsequent to June 30, 1971, to be increased by an amount to be
determined by the board such increased payments to be paid from the retirement reserve
fund according to an actuarial computation thereof plus such additional amounts transferred
from the general fund as may be required. In order to provide the additional amounts
required from the general fund for such increased payments, the board of directors may
annually at the meeting at which it estimates the amount required for the general fund in
accordance with section 298.1 estimate such additional amount as an actuarial computation
shall show is necessary from the general fund for the payment of such increased benefits for
the current school year; provided the amount estimated and certified to be transferred from
the general fund to the retirement reserve fund shall not exceed one and four-tenths cents per
thousand dollars of the assessed valuation of the taxable property of the school corporation.
The board of supervisors shall in accordance with the provisions of section 298.8 levy the
taxes necessary to raise the amount estimated by the board of directors as above provided
and certified to the board of supervisors. Upon the death of the last beneficiary to survive,
any balance remaining in said retirement reserve fund shall be transferred to the general
fund of said school district.
3. Notwithstanding the provisions of this section, the plan provisions of a pension and
annuity retirement system of a school district established under this chapter regarding the
determination and distribution of benefits upon termination of the retirement system shall be
effective if the school district has received a favorable determination letter from the federal
internal revenue service as to the qualified status of such retirement system under applicable
provisions of the Internal Revenue Code.

Legislative History

[C50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §294.12]