Iowa Administrative Code › Agency 495 - Iowa Public Employees' Retirement System › Chapter 11 - Application For, Modification Of, and Termination of Benefits › Rule 495-11.3 - First Month of Entitlement (FME)

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General.
A member shall submit a written application to IPERS
			 setting forth the retirement date, provided the member has attained at least
			 age 55 by the retirement date and the retirement date is after the member's
			 last day of service. A member's first month of entitlement shall be no earlier
			 than the first day of the first month after the member's date of termination
			 from employment or, if later, the month provided for under subrule 11.3(2). No
			 payment shall be made for any month prior to the month the completed
			 application for benefits is received by IPERS.
If a member files a retirement application but fails to select
				a valid first month of entitlement, IPERS will select by default the earliest
				month possible. A member may appeal this default selection by sending written
				notice of the appeal postmarked on or before 30 days after a notice of the
				default selection was mailed to the member. Notice of the default selection is
				deemed sufficient if sent to the member at the member's address.
(2)
Additional FME
			 provisions.
Effective January 1, 2001, employees of a school
			 corporation who are permitted by the terms of their employment contracts to
			 receive their annual salaries in monthly installments over periods ranging from
			 9 to 12 months may retire at the end of a school year and receive trailing
			 wages through the end of the contract year if they have completely fulfilled
			 their contract obligations at the time of retirement. For purposes of this
			 paragraph, "school corporation" means body politic described in Iowa Code
			 sections
			 260C.16
			 (community colleges), 273.2 (area education agencies) and 273.1 (K-12 public
			 schools). For purposes of this paragraph, "trailing wages" means previously
			 earned wage payments made to such employees of a school corporation after the
			 first month of entitlement. This exception does not apply to hourly employees,
			 including those who make arrangements with their employers to hold back hourly
			 wages for payment at a later date, to employees who are placed on sick or
			 disability leave or leave of absence, or to employees who receive lump sum
			 leave, vacation leave, early retirement incentive pay or any other lump sum
			 payments in installments.
For all employees of all IPERS-covered employers who terminate
				employment in January 2003, or later, if the final paycheck is paid within the
				same quarter or within one quarter after termination and wages are reported
				under the normal pay schedule, the first month of entitlement shall be the
				month following termination. However, if the last paycheck is paid more than
				one quarter after the termination, the first month of entitlement shall be the
				first month after the employee is paid the last paycheck. Under no
				circumstances shall such trailing wages result in more than one quarter of
				service credit being added to retiring members' earning records.
(3)
Survival into
			 designated FME.
To be eligible for a monthly retirement benefit, the
			 member must survive into the designated first month of entitlement. If the
			 member dies prior to the first month of entitlement, the member's application
			 for monthly benefits is canceled and the distribution of the member's account
			 is made pursuant to Iowa Code section
			 97B.52.
			 Cancellation of the application shall not invalidate a beneficiary designation.
			 If the application is dated later in time than any other designations, IPERS
			 will accept the designation in a canceled application as binding until a
			 subsequent designation is filed.
(4)
Members retiring under the rule
			 of 88.
The first month of entitlement of a member qualifying under the
			 rule of 88 shall be the first of the month when the member's age as of the last
			 birthday and years of service equal 88. The fact that a member's birthday
			 allowing a member to qualify for the rule of 88 is the same month as the first
			 month of entitlement does not affect the retirement date.