Iowa Administrative Code › Agency 495 - Iowa Public Employees' Retirement System › Chapter 12 - Calculation of Monthly Retirement Benefits › Rule 495-12.7 - Reemployment of Retired Members

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Effective July
			 1, 1998, the monthly benefit payments for a member under the age of 65 who has
			 a bona fide retirement and is then reemployed in covered employment shall be
			 reduced by 50 cents for each dollar the member earns in excess of the annual
			 limit. Effective March 23, 2022, this reduction is not required until the
			 member earns the amount of remuneration permitted for a calendar year as
			 defined in Iowa Code section
			 97B.48A. The foregoing reduction
			 shall apply only to IPERS benefits payable for the applicable year that the
			 member has reemployment earnings and after the earnings limit has been reached.
			 Said reductions shall be applied as provided in subrule 12.7(2).
Effective January 1, 1991, this earnings limitation does not
				apply to covered employment as an elected official. A member aged 65 or older
				who has completed at least four full calendar months of bona fide retirement
				and is later reemployed in covered employment shall not be subject to any
				wage-earning disqualification.
(2) Beginning on or after July 1, 1996, the
			 retirement allowance of a member subject to reduction pursuant to subrule
			 12.7(1) shall be reduced as follows:
a. A
			 member's monthly retirement allowance in the following calendar year shall be
			 reduced by the excess benefit paid in the preceding year after the excess
			 benefit payment amount has been determined.
b. Employers shall be required to complete
			 IPERS wage reporting forms for reemployed individuals which shall reflect the
			 prior year's wage payments on a month-to-month basis. These reports shall be
			 used by IPERS to determine the amount which must be recovered to offset
			 overpayments in the prior calendar year due to reemployment wages.
c. The member's overpayment shall be
			 collected as follows:
(1) IPERS will reduce
			 the member's gross monthly benefit by 50 percent until the overpayment is
			 repaid. If the 50 percent reduction will not recover the overpayment by the end
			 of the current calendar year, IPERS will calculate the monthly reduction amount
			 so that the overpayment will be recovered within the current calendar year.
			 Other monthly reduction amounts may be made by an agreement in writing between
			 the member and IPERS; or
(2) A
			 member may elect to make repayments of the overpayment amounts out of pocket in
			 lieu of having the member's monthly benefit reduced. An out-of-pocket repayment
			 may be made in one check or in installments. However, an election to make
			 repayment in installments must be agreed to in writing between the member and
			 IPERS.
(3) If a member dies and the
			 full amount of overpayment determined under this subrule has not been repaid,
			 the remaining amounts shall be deducted from the payments to be made, if any,
			 to the member's designated beneficiary or contingent annuitant. If the member
			 has selected an option under which there are no remaining amounts to be paid,
			 or the remaining amounts are insufficient, the unrecovered amounts shall be a
			 charge on the member's estate.
(4)
			 A member may elect in writing to have the member's monthly retirement allowance
			 suspended in the month in which the member's remuneration exceeds the amount of
			 remuneration permitted under this subrule in lieu of receiving a reduced
			 retirement allowance under subparagraph (1). In order to become effective, the
			 member's written election must be delivered to IPERS in person, by regular
			 mail, email, facsimile or by private carrier. Oral elections shall not be
			 accepted. The member's election to suspend benefit payments in the month when
			 the member's remuneration exceeds the amount of reimbursement permitted under
			 this subrule shall remain in effect for all subsequent calendar years until
			 revoked by the member in writing. If the member's written election is not
			 received in time to avoid overpayment, the overpayment must be recovered, to
			 the extent possible, from monthly amounts beginning in January of the next
			 calendar year or under one of the alternate arrangements permitted under this
			 rule. Effective July 1, 2007, remuneration shall include those amounts as
			 described in 495-subrule 6.3(13).