Iowa Administrative Code › Agency 495 - Iowa Public Employees' Retirement System › Chapter 14 - Death Benefits and Beneficiaries › Rule 495-14.1 - Internal Revenue Code Limitations

Current through Register Vol. 47, No. 3, July 24, 2024
The death benefits payable under Iowa Code sections
				97B.51
				and 97B.52 shall not exceed the maximum amount possible under Internal Revenue
				Code Section 401(a)(9).
To ensure that the limit is not exceeded, a member's combined
				lump sum death benefit under Iowa Code sections
				97B.52(1)
				 and
				97B.52(2)
				 shall not exceed 100 times the Option 2
				amount that would have been payable to the member at the member's earliest
				normal retirement age. If a beneficiary of a special service member is eligible
				for an in-the-line-of-duty death benefit, any reduction required under this
				rule shall be taken first from a death benefit payable under Iowa Code section
				97B.52(1).
				The "100 times" limit shall apply to active and inactive members. The death
				benefits payable under this chapter for a period of reemployment for a retired
				reemployed member who dies during the period of reemployment shall also be
				subject to the limits described in this rule.
The maximum claims period for IPERS lump sum death benefits
				shall not exceed the period required under Internal Revenue Code Section
				401(a)(9), which may be less than five years for a member who dies after the
				member's required beginning date, unless the beneficiary is a spouse. The
				claims period for all cases in which the member's death occurs during the same
				calendar year in which a claim must be filed under this rule shall end April 1
				of the year following the year of the member's death.
A member's beneficiary or heir may file a claim for previously
				forfeited death benefits. Interest, if any, for periods prior to the date of
				the claim will only be credited through the quarter that the death benefit was
				required to be forfeited by law. Interest for periods following the quarter of
				forfeiture will accrue beginning with the quarter that the claim for
				reinstatement is received by IPERS. For death benefits required to be forfeited
				in order to satisfy Section 401(a)(9) of the federal Internal Revenue Code, in
				no event will the forfeiture date precede January 1, 1988. IPERS shall not be
				liable for any excise taxes imposed by the Internal Revenue Service on
				reinstated death benefits.
Effective January 14, 2004, all claims for a previously
				forfeited death benefit shall be processed under the procedure set forth at
				rule 495-14.6 (97B).
The system recognizes the validity of same gender marriages
				executed in Iowa on or after April 27, 2009, if the domestic relations order or
				other assignment otherwise meets the system's minimum requirements for such
				orders; the system shall modify the tax treatment of distributions under such
				orders as required by the federal laws governing such distributions. IPERS
				shall adopt such rules and procedures as are deemed necessary to fully
				implement the provisions of this rule. The Iowa Supreme Court decision
				recognizing same gender marriages in Iowa specifically states that this
				recognition does not extend to same gender marriages of other states. The
				system recognizes the validity of same gender marriages based on the U.S.
				Supreme Court's decision in
United States v. Windsor,
133
				S.Ct. 2675 (2013) and the direction of Rev. Rul. 2013-17 and IRS Notice
				2014-19. IPERS shall recognize the federal tax treatment of distributions as
				required by the sources listed in this paragraph.