Iowa Administrative Code › Agency 495 - Iowa Public Employees' Retirement System › Chapter 11 - Application For, Modification Of, and Termination of Benefits › Rule 495-11.5 - Bona Fide Retirement and Bona Fide Refund

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Bona
			 fide retirement-general.
To receive retirement benefits, a member
			 under the age of 70 must officially leave employment with all IPERS-covered
			 employers, give up all rights as an employee, and complete a period of bona
			 fide retirement. A period of bona fide retirement means four or more
			 consecutive calendar months for which the member qualifies for monthly
			 retirement benefit payments. The qualification period begins with the member's
			 first month of entitlement for retirement benefits as approved by IPERS. A
			 member may not return to covered employment before filing a completed
			 application for benefits. Notwithstanding the foregoing, the continuation of
			 group insurance coverage at employee rates for the remainder of the school year
			 for a school employee who retires following completion of services by that
			 individual shall not cause that person to be in violation of IPERS' bona fide
			 retirement requirements.
A member will not be considered to have a bona fide retirement
				if the member is a school or university employee and returns to work with the
				employer after the normal summer vacation. In other positions, temporary or
				seasonal interruption of service which does not terminate the period of
				employment does not constitute a bona fide retirement. A member also will not
				be considered to have a bona fide retirement if the member has, prior to or
				during the member's first month of entitlement, entered into verbal or written
				arrangements with the member's former employer(s) to return to employment after
				the expiration of the four-month bona fide retirement period.
Effective July 1, 1990, a school employee will not be
				considered terminated if, while performing the normal duties, the employee
				performs for the same employer additional duties which take the employee beyond
				the expected termination date for the normal duties. Only when all the
				employee's compensated duties cease for that employer will that employee be
				considered terminated.
The bona fide retirement period shall be waived for an elected
				official covered under Iowa Code section
				97B.1A(8)
"a"
(1), and for a member of the general assembly covered under
				Iowa Code section 97B.1A(8)
"a"
(2), when the elected official
				or legislator notifies IPERS of the intent to terminate IPERS coverage for the
				elective office and, at the same time, terminates all other IPERS-covered
				employment prior to the issuance of the retirement benefit. Such an elected
				official or legislator may remain in the elective office and receive an IPERS
				retirement without violating IPERS' bona fide retirement rules. If such elected
				official or legislator terminates coverage for the elective office and also
				terminates all other IPERS-covered employment but is then reemployed in covered
				employment, and has not received a retirement as of the date of hire, the
				retirement shall not be made. Furthermore, if such elected official or
				legislator is reemployed in covered employment, the election to revoke IPERS
				coverage for the elective position shall remain in effect, and the elected
				official or legislator shall not be eligible for new IPERS coverage for such
				elected position. The prior election to revoke IPERS coverage for the elected
				position shall also remain in effect if such elected official or legislator is
				reelected to the same position without an intervening term out of
				office.
The bona fide retirement period will be waived if the member
				has been elected to public office as a part-time elected official or a member
				of the general assembly and the member's term begins during the normal
				four-month bona fide retirement period. This includes elected officials who
				shall be covered under this chapter as defined in Iowa Code section 97B.1A.
				This waiver does not apply if the member was an elected official who was
				reelected to the same position for another term.
Effective July 1, 2000, a member does not have a bona fide
				retirement until all employment with covered employers, including employment
				which is not covered under this chapter, is terminated for at least one month,
				and the member does not return to covered employment for an additional three
				months. In order to receive retirement benefits, the member must file a
				completed application for benefits before returning to any employment with a
				covered employer.
Effective July 1, 2023, a member will not have a bona fide
				retirement if the member enters into a verbal or written arrangement to perform
				duties for the member's former employer(s) as an independent contractor prior
				to or during the member's first month of entitlement, and the member shall not
				perform any duties for the member's former employer(s) as an independent
				contractor prior to receiving one month of retirement benefits.
(2)
Bona fide
			 refund.
For a member to be eligible for a lump sum refund, the member
			 must terminate the member's covered employment and incur a bona fide separation
			 from service and remain out of employment for at least 30 days with all covered
			 employers. The 30-day bona fide refund period shall be waived for an elected
			 official covered under Iowa Code section
			 97B.1A(8)
"a"
(1), and for a member of the general assembly covered under
			 Iowa Code section 97B.1A
			 (8)
"a"
(2), when the elected official or legislator notifies
			 IPERS of the intent to terminate IPERS coverage for the elective office and, at
			 the same time, terminates all other IPERS-covered employment prior to the
			 issuance of the refund. Such an official may remain in the elective office and
			 receive an IPERS refund without violating IPERS' bona fide refund rules. If
			 such elected official terminates coverage for the elective office and also
			 terminates all other IPERS-covered employment but is then reemployed in covered
			 employment, and has not received a refund as of the date of hire, the refund
			 shall not be made. Furthermore, if such elected official is reemployed in
			 covered employment, the election to revoke IPERS coverage for the elective
			 position shall remain in effect, and the public official shall not be eligible
			 for new IPERS coverage for such elected position.
The prior election to revoke IPERS coverage for the elected
				position shall also remain in effect if such elected official is reelected to
				the same position without an intervening term out of office. The waiver granted
				in this subrule shall be applicable to such elected officials who were in
				violation of the prior bona fide refund rules on and after November 1, 2002,
				when such individuals have not repaid the previously invalid refund.
If a member takes a refund in violation of the bona fide refund
				requirements of Iowa Code section
				97B.53(4), the
				member may return the refund during the bona fide retirement period and restore
				the member's account. If the repayment is not made, the member shall receive no
				credit for the period covered by the refund. At retirement, the member may
				purchase, at actuarial cost, the service credit covered by the
				refund.
(3)
Part-time appointed members of boards or commissions receiving minimal
			 noncovered wages.
Solely for purposes of determining whether a member
			 has severed all employment with all covered employers and has remained out of
			 employment as required under Iowa Code section
			 97B.52A, persons who have been
			 appointed as part-time members of boards or commissions prior to or during
			 their first month of entitlement and who receive only per diem and
			 reimbursements for reasonable business expenses for such positions will be
			 deemed not to be in employment prohibited under Iowa Code section
			 97B.52A.
For purposes of this subrule, per diem shall not exceed the
				amount authorized under Iowa Code section
				7E.6(1)
"a"
for members of boards, committees, commissions, and
				councils within the executive branch of state government. This limit shall
				apply regardless of whether or not the position in question is within the
				executive branch of state government.
Members of boards and commissions not exempted under this
				subrule include:
(a) those who are
			 entitled to the payment of per diem regardless of attendance at board or
			 commission meetings, and
(b) those
			 who would have received per diem in excess of the amount authorized under Iowa
			 Code section 7E.6(1)
"a"
were it not for an agreement by the member to waive such
			 compensation.
Persons appointed as part-time board or commission members who
				receive only per diem as set forth above and reimbursements of reasonable
				business expenses may continue in or accept appointments to such positions
				without violating the bona fide retirement rules under Iowa Code section
				97B.52A.