Iowa Administrative Code › Agency 495 - Iowa Public Employees' Retirement System › Chapter 15 - Dividends › Rule 495-15.1 - Dividend Payments for Beneficiaries of Members Retiring Prior to July 1, 1990, Who Chose Joint and Survivor Annuity Options

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
November dividend
			 adjustment.
Effective July 1, 2008, in order to determine whether the
			 adjustment to dividend payments is payable under Iowa Code section
			 97B.49F(1)
"b, "
an IPERS actuary
			 shall compare the actuarially required contribution rate for the fiscal year of
			 the dividend adjustment to the statutory contribution rate for that same fiscal
			 year and certify the results to IPERS. If the actuarially required contribution
			 rate exceeds the statutory contribution rate for that same fiscal year, the
			 applicable percentage used to calculate dividend adjustments shall be
			 zero.
(2)
General.
The dividend payable to the beneficiary of a pre-July 1,1990, retired member
			 who selected a joint and survivor annuity option, except for the year of the
			 member's death and the next year, is calculated in the same manner as for
			 retired members.
For a member who lives into November of the year in which the
				member dies, the dividend will be payable to the member's account.
(3)
Dividend for the years
			 in which member's death occurs.
For a member who does not live into
			 November of the year in which the member dies, the dividend payable for the
			 year in which the member dies is calculated the same as it would have been
			 calculated for the deceased retired member The dividend amount that would have
			 been payable to the deceased retired member is then multiplied by the survivor
			 annuity percentage selected for the contingent annuitant (CA) in the member's
			 retirement application.
(4)
Dividend for the year following the year of the retired member's
			 death.
For a member who does not live into November of the year in
			 which the member dies, the dividend payable in the year following the year of
			 the member's death is calculated as follows. The sum of the survivor's monthly
			 benefit payments received for the year in which the member's death occurs is
			 divided by the number of survivor benefit payments for that year, and that
			 amount is multiplied by 12. That amount plus the member's survivor's prior
			 dividend is then multiplied by the dividend rate for the year following the
			 year of the member's death, which equals the dividend adjustment for the year
			 following the year of the member's death. This dividend adjustment plus the
			 prior year's dividend produces the dividend amount for the year following the
			 year of the member's death.
(5)
Examples.
a.
Dividend for the year of the member's death.
The following assumptions
			 are made. The member retired in 1989 and selected a joint and 50 percent to
			 survivor annuity. The retired member received a monthly payment of $ 1,000, and
			 died in June 2002. The member received $ 12,000 in monthly benefits for January
			 through December 2001. The member received a dividend of $500 in 2001, and the
			 dividend rate is 3 percent for 2002.
2001 total monthly benefits
2001 dividend amount
2002 dividend rate
2002 dividend adjustment
2001 dividend amount
Dividend payable amount
CA%
CA 2002 dividend
$12,000.00 +
$500.00 >
< 3%
$375.00 + $500.00 =
= $875.00 :
< 50% =
= $437.50
b.
Dividend for the year following the year of the member's
			 death.
The following assumptions are made. The member retired in 1989
			 and selected a joint and 50 percent to survivor annuity. The retired member
			 received a monthly payment of $1,000, and died in June 2002. The survivor
			 received $500 each month for July through December of 2002 for a total of
			 $3,000. The survivor received a dividend of $437.50 in 2002, and the dividend
			 rate is 3 percent for 2003.
2002 total monthly benefits forCA
Total of payments for CA 2002
Twelve months for 2002
2002 dividend amount
2003 dividend rate
2003 dividend adjustment
2002 dividend amount
Dividend payable to CA for 2003
$3,000.00
Ã· 6 months
Ã— 12 months
+ $437.50
Ã— 3%
= $193.13
+ $437.50
= $630.63