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Chet Culver on Social Security

Democrat

 


More employee & employer contributions to public retirement

Bill HF 2518 will increase contribution rates for employees and employers for the Peace Officers Retirement System (PORS) and the Iowa Public Employees Retirement System (IPERS).

For PORS, the current contribution rates are 27% for the employer and 9.35% for the employee. This act will increase the employee contribution by 0.5% a year for to 11.35% in FY 2013 and will increase the employer's rate by 2% a year to 37%. The act also calls for an annual general fund contribution (in addition to the employers' contributions) of $5,000,000 until the fund reaches a funding ratio of at least 85%.

For regular members of IPERS, contributions will increase from a total of 11.95% (with members paying 4.7% of salary and employers paying 7.25%) to a total contribution to 13.45%. Employees will continue to pay about 40% of the total; employers, 60%.

Legislative record:Bill Passed House, 53-43-6; Passed Senate, 31-16-3, March 18, 2010; signed by Governor April 23.

Source: NCSL Pension Report: 2010 Iowa voting records for HF 2518 , Apr 23, 2010

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