97B.82 Purchase of service credit — direct rollovers — direct transfers.
1. Effective July 1, 2002, a member may, to the extent permitted by the internal revenue service, purchase any service credit permitted under this chapter by means of a direct rollover or a direct transfer as provided in this section pursuant to rules adopted by the system and consistent with applicable requirements of the federal Internal Revenue Code. Purchases of service credit by means of a direct rollover or direct transfer under this section shall not exceed the amounts permitted under section 415(n) of the federal Internal Revenue Code and section 97B.80C as determined by the system.
2. a. A member may purchase service credit as authorized by this section through a direct rollover to the retirement system of an eligible rollover distribution from an eligible retirement plan as permitted by the internal revenue service under the federal Internal Revenue Code. The amount of the direct rollover into the retirement system cannot exceed the cost of the service purchase by a member under this chapter. Once a direct rollover is made, the member must forfeit the applicable service credit from the eligible retirement plan from which the eligible rollover distribution is received.
b. (1) For purposes of this subsection, “an eligible rollover distribution from an eligible retirement plan” includes distributions from any of the following:
(a) Qualified plans described in federal Internal Revenue Code sections 401(a) and 403(a).
(b) Annuity contracts described in federal Internal Revenue Code section 403(b).
(c) Eligible plans described under federal Internal Revenue Code section 457(b) which are maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.
(d) Individual retirement accounts described in federal Internal Revenue Code section 408(a) or 408(b).
(2) An eligible rollover distribution from an eligible retirement plan does not include any of the following:
(a) A distribution that is one of a series of substantially equal periodic payments, which occur annually or more frequently, made for the life or life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee’s designated beneficiary, or made for a specified period of ten years or more.
(b) A distribution to the extent that the distribution is required pursuant to section 401(a)(9) of the federal Internal Revenue Code.
(c) (i) For rollover service purchases prior to January 1, 2007, the portion of any distribution that is not includible in the gross income of the distributee, determined without regard to the exclusion for net unrealized appreciation with respect to employer securities.
(ii) For rollover service purchases on or after January 1, 2007, the portion of any distribution that is not includible in the gross income of the distributee, determined without regard to the exclusion for net unrealized appreciation with respect to employer securities, shall be treated as an eligible rollover distribution only when such portion is received from a qualified plan under section 401(a) or 403(a) of the federal Internal Revenue Code.
(d) Any amounts that are not permitted to be treated as eligible rollover distributions by the internal revenue service under the federal Internal Revenue Code.
3. A member may purchase any service credit as authorized by this section, to the extent permitted by the internal revenue service, by means of a direct transfer of pretax amounts, and effective January 1, 2007, any after-tax contributions, from an annuity contract qualified under federal Internal Revenue Code section 403(b), or an eligible plan described in federal Internal Revenue Code section 457(b), maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. A direct transfer is a trustee-to-trustee transfer to the retirement system of contributions made to annuity contracts qualified under federal Internal Revenue Code section 403(b) and eligible governmental plans qualified under federal Internal Revenue Code section 457(b) for purposes of purchasing service credit in the retirement system.
2000 Acts, ch 1077, §72; 2002 Acts, ch 1135, §34; 2003 Acts, ch 145, §286; 2008 Acts, ch 1171, §44, 45, 48, 49
Structure Iowa Code
Title III - PUBLIC SERVICES AND REGULATION
Chapter 97B - IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (IPERS)
Section 97B.1 - System created — organizational definitions.
Section 97B.2 - Purpose of chapter.
Section 97B.3 - Chief executive officer — appointment and qualifications.
Section 97B.4 - Administration of chapter — powers and duties of system — immunity.
Section 97B.7 - Fund created — exclusive benefit — standing appropriations.
Section 97B.7A - Investment and management of retirement fund — standards — immunity.
Section 97B.8A - Investment board.
Section 97B.8B - Benefits advisory committee.
Section 97B.9 - Contributions — payment and interest.
Section 97B.9A - Collections — waiver.
Section 97B.10 - Crediting of erroneous contributions.
Section 97B.11 - Contributions by employer and employee.
Section 97B.11A - Pickup of employee contributions.
Section 97B.14 - Contributions forwarded.
Section 97B.14A - Wage reporting.
Section 97B.15 - Rules, policies, and procedures.
Section 97B.16 - Procedure of system.
Section 97B.17 - Records maintained.
Section 97B.18 - Statement of accumulated credit.
Section 97B.19 - Revision for error.
Section 97B.20A - Appeal procedure.
Section 97B.20B - Hearing by administrative law judge.
Section 97B.22 - Witnesses and evidence.
Section 97B.23 - Penalty for noncompliance.
Section 97B.24 - Production of books and papers.
Section 97B.25 - Applications for benefits.
Section 97B.27 - Review of decision.
Section 97B.28 - System deemed party to action.
Section 97B.29 - Judicial review.
Section 97B.32 - Appeal to supreme court.
Section 97B.33 - Payment to individuals.
Section 97B.34 - Payment to representatives.
Section 97B.34A - Payment to minors.
Section 97B.35 - Finality of such payments.
Section 97B.36 - Representatives of system.
Section 97B.37 - Recognition of agents.
Section 97B.38 - Fees for services.
Section 97B.39 - Rights not transferable or subject to legal process — exceptions.
Section 97B.42 - Mandatory membership — membership in other systems.
Section 97B.42A - Optional exclusion from membership.
Section 97B.42B - Transfer to chapter 97A — options for certain public safety employees.
Section 97B.42C - Retirement system merger.
Section 97B.43 - Prior service credit.
Section 97B.45 - Normal retirement date.
Section 97B.46 - Service after age sixty-five.
Section 97B.47 - Early retirement date.
Section 97B.48 - Payment of allowances.
Section 97B.48A - Reemployment.
Section 97B.49 - Dormant accounts.
Section 97B.49A - Monthly payments of allowance — general calculation.
Section 97B.49B - Protection occupation.
Section 97B.49C - Sheriffs and deputy sheriffs.
Section 97B.49D - Hybrid formula.
Section 97B.49E - Minimum benefits.
Section 97B.49F - Retirement dividends.
Section 97B.49G - Monthly payments of allowance — miscellaneous provisions.
Section 97B.49H - Active member supplemental accounts.
Section 97B.49I - Qualified benefits arrangement.
Section 97B.50 - Early retirement.
Section 97B.50A - Disability benefits for special service members.
Section 97B.51 - Allowance upon retirement.
Section 97B.52 - Payment to beneficiary.
Section 97B.52A - Eligibility for benefits — bona fide retirement.
Section 97B.53 - Termination of employment — refund options.
Section 97B.53A - Duty of system.
Section 97B.53B - Rollovers of members’ accounts.
Section 97B.56 - Abolished system — liquidation fund.
Section 97B.58 - Information furnished by employer.
Section 97B.62 - Accepting employment deemed consent.
Section 97B.64 - Insurance laws not applicable.
Section 97B.66 - Former members.
Section 97B.68 - Employees under federal civil service.
Section 97B.70 - Interest and dividends to members.
Section 97B.73B - Patient advocates — unpaid contributions — service purchase.
Section 97B.74 - Reinstatement as a vested member (buy-back).
Section 97B.75 - Prior service credit before January 1, 1946.
Section 97B.80 - Veteran’s credit.
Section 97B.80C - Purchases of permissive service credit.
Section 97B.81 - Leaves of absence.
Section 97B.82 - Purchase of service credit — direct rollovers — direct transfers.