All the assets of the retirement system created and established by this chapter shall be
credited to the fire and police retirement fund, which is hereby created. As used in this
section, “fund” means the fire and police retirement fund.
1. All moneys for the payment of all pensions and other benefits payable from
contributions made by the participating cities, the state, and the members shall be
accumulated in the fund. The refunds and benefits for all members and beneficiaries shall
be payable from the fund. Contributions to and payments from the fund shall be as follows:
a. On account of each member there shall be paid annually into the fund by the
participating cities an amount equal to a certain percentage of the earnable compensation of
the member to be known as the “normal contribution”. The rate percent of such contribution
shall be fixed on the basis of the liabilities of the retirement system as shown by annual
actuarial valuations.
b. (1) On the basis of the actuarial methods and assumptions, rate of interest, and of the
mortality, interest and other tables adopted by the system, the actuary engaged by the system
to make each valuation required by this chapter pursuant to the requirements of section
411.5,shallimmediatelyaftermakingsuchvaluation,determinethenormalcontributionrate.
Except as otherwise provided in this lettered paragraph, the “normal contribution rate” shall
be the rate percent of the earnable compensation of all members equal to the rate required by
the system to discharge its liabilities, stated as a percentage of the earnable compensation of
all members, and reduced by the employee contribution rate provided in paragraph “f” of this
subsection and the contribution rate representing any state appropriation made. However,
the normal contribution rate shall not be less than seventeen percent.
(2) The normal contribution rate shall be determined by the actuary after each valuation.
c. The total amount payable in each year to the fund shall be not less than the rate percent
known as the normal contribution rate of the total compensation earnable by all members
during the year, but the aggregate payment by the participating cities must be sufficient when
combined with the amount in the fund to provide the pensions and other benefits payable out
of the fund during the then current year.
d. All lump-sum death benefits on account of death in active service payable from
contributions of the said cities shall be paid from the fund.
e. Reserved.
f. Except as otherwise provided in paragraph “h”:
(1) An amount equal to three and one-tenth percent of each member’s compensation
from the earnable compensation of the member shall be paid to the fund for the fiscal year
beginning July 1, 1989.
(2) An amount equal to four and one-tenth percent of each member’s compensation
from the earnable compensation of the member shall be paid to the fund for the fiscal year
beginning July 1, 1990.
(3) An amount equal to five and one-tenth percent of each member’s compensation
from the earnable compensation of the member shall be paid to the fund for the fiscal year
beginning July 1, 1991.
(4) An amount equal to six and one-tenth percent of each member’s compensation
from the earnable compensation of the member shall be paid to the fund for the fiscal year
beginning July 1, 1992.
(5) An amount equal to seven and one-tenth percent of each member’s compensation
from the earnable compensation of the member shall be paid to the fund for the fiscal year
beginning July 1, 1993.
(6) An amount equal to eight and one-tenth percent of each member’s compensation
from the earnable compensation of the member shall be paid to the fund for the fiscal
period beginning July 1, 1994, through December 31, 1994, and an amount equal to eight
and thirty-five hundredths percent of each member’s compensation from the earnable
compensation of the member shall be paid to the fund for the fiscal period beginning January
1, 1995, through June 30, 1995.
(7) An amount equal to nine and thirty-five hundredths percent of each member’s
compensation from the earnable compensation of the member shall be paid to the fund for
the fiscal year beginning July 1, 1995.
(8) Beginning July 1, 1996, and each fiscal year thereafter, an amount equal to the
member’s contribution rate times each member’s compensation shall be paid to the fund
from the earnable compensation of the member. For the purposes of this subparagraph,
the member’s contribution rate shall be nine and thirty-five hundredths percent until June
30, 2009, nine and four-tenths percent until June 30, 2024, nine and fifty-five hundredths
percent until June 30, 2025, and, beginning July 1, 2025, nine and six hundred seventy-five
thousandths percent. However, the system shall increase the member’s contribution rate as
necessary to cover any increase in cost to the system resulting from statutory changes which
are enacted by any session of the general assembly meeting after January 1, 1991, if the
increase cannot be absorbed within the contribution rates otherwise established pursuant
to this paragraph, but subject to a maximum employee contribution rate of eleven and
three-tenths percent until June 30, 2009, eleven and thirty-five hundredths percent until June
30, 2025, and, beginning July 1, 2025, eleven and four hundred seventy-five thousandths
percent. The contribution rate increases specified in 1994 Iowa Acts, ch. 1183, pursuant to
this chapter and chapter 97A shall be the only member contribution rate increases for these
systems resulting from the statutory changes enacted in 1994 Iowa Acts, ch. 1183, and shall
apply only to the fiscal periods specified in 1994 Iowa Acts, ch. 1183. After the employee
contribution reaches the applicable maximum employee contribution rate, sixty percent of
the additional cost of such statutory changes shall be paid by employers under paragraph
“c” and forty percent of the additional cost shall be paid by employees under this paragraph.
g. (1) The system shall certify to the superintendent of public safety as defined in this
chapter and the superintendent of public safety as defined in this chapter shall cause to be
deducted from the earnable compensation of each member the contribution required under
thissubsectionandshallforwardthecontributionstothesystemforrecordingandfordeposit
in the fund.
(2) The deductions provided for under this paragraph shall be made notwithstanding that
the minimum compensation provided by law for any member is reduced. Every member is
deemed to consent to the deductions made under this paragraph.
h. Notwithstanding the provisions of paragraph “f”, the following transition percentages
apply to members’ contributions as specified:
(1) For members who on July 1, 1990, have attained the age of forty-nine years or more,
an amount equal to nine and one-tenth percent of each member’s compensation from the
earnablecompensationofthemembershallbepaidtothefundforthefiscalperiodbeginning
July 1, 1990, through October 15, 1992, and commencing October 16, 1992, and for each
subsequent fiscal period, the rates specified in paragraph “f”, subparagraphs (4) through (8),
shall apply.
(2) For members who on July 1, 1990, have attained the age of forty-eight years but have
not attained the age of forty-nine years, an amount equal to eight and one-tenth percent shall
be paid for the fiscal year beginning July 1, 1990, and an amount equal to nine and one-tenth
percent shall be paid for the fiscal period beginning July 1, 1991, through October 15, 1992,
and commencing October 16, 1992, and for each subsequent fiscal period, the rates specified
in paragraph “f”, subparagraphs (4) through (8), shall apply.
(3) For members who on July 1, 1990, have attained the age of forty-seven years but have
notattainedtheageofforty-eightyears, anamountequaltosevenandone-tenthpercentshall
be paid for the fiscal year beginning July 1, 1990, an amount equal to eight and one-tenth
percent shall be paid for the fiscal year beginning July 1, 1991, and an amount equal to nine
and one-tenth percent shall be paid for the fiscal period beginning July 1, 1992, through
October 15, 1992, and commencing October 16, 1992, and for each subsequent fiscal period,
the rates specified in paragraph “f”, subparagraphs (4) through (8), shall apply.
(4) For members who on July 1, 1990, have attained the age of forty-six years but have
not attained the age of forty-seven years, an amount equal to six and one-tenth percent shall
be paid for the fiscal year beginning July 1, 1990, an amount equal to seven and one-tenth
percent shall be paid for the fiscal year beginning July 1, 1991, an amount equal to eight and
one-tenth percent shall be paid for the fiscal period beginning July 1, 1992, through October
15, 1992, and commencing October 16, 1992, and for each subsequent fiscal period, the rates
specified in paragraph “f”, subparagraphs (4) through (8), shall apply.
(5) For members who on July 1, 1990, have attained the age of forty-five years but have
not attained the age of forty-six years, an amount equal to five and one-tenth percent shall be
paid for the fiscal year beginning July 1, 1990, an amount equal to six and one-tenth percent
shall be paid for the fiscal year beginning July 1, 1991, and an amount equal to seven and
one-tenth percent shall be paid for the fiscal period beginning July 1, 1992, through October
15, 1992. Commencing October 16, 1992, and for each subsequent fiscal period, the rates
specified in paragraph “f”, subparagraphs (4) through (8), shall apply.
i. (1) Notwithstanding paragraph “g” or other provisions of this chapter, beginning
January 1, 1995, for federal income tax purposes, and beginning January 1, 1999, for state
income tax purposes, member contributions required under paragraph “f” or “h” which
are picked up by the city shall be considered employer contributions for federal and state
income tax purposes, and each city shall pick up the member contributions to be made
under paragraph “f” or “h” by its employees. Each city shall pick up these contributions by
reducing the salary of each of its employees covered by this chapter by the amount which
each employee is required to contribute under paragraph “f” or “h” and shall pay the amount
picked up in lieu of the member contributions to the board of trustees for recording and
deposit in the fund.
(2) Member contributions picked up by each city under subparagraph (1) shall be treated
as employer contributions for federal and state income tax purposes only and for all other
purposes of this chapter shall be treated as employee contributions and deemed part of the
employee’s earnable compensation or salary.
2. Annually the board of trustees shall budget the amount of money necessary during the
ensuing year to provide for the expense of operation of the retirement system. The operating
expenses shall be financed from the income derived from the system’s investments.
Investment management expenses shall be charged directly to the investment income of the
system.