Current through Register Vol. 47, No. 6, September 18, 2024
(1)
Eligibility. Effective July 1, 1996, members having both
regular and special service (as defined in Iowa Code section
97B.1A(22)
) shall receive the greater of the benefit amount calculated under this subrule
or the benefit amount calculated under the applicable nonhybrid benefit
formula.
a. Members who are vested by service
as defined in Iowa Code section 97B. 1 A(25)"d" may utilize
the hybrid formula.
b. The
following classes of members are not eligible for the hybrid formula:
(1) Members who have only regular service
credit.
(2) Members who have 22
years of special service credit.
(3) Members who have 30 years of regular
service.
(4) Members who are not
vested by service as defined in Iowa Code section
97B.1A(25)
"d."
(2)
Assumptions. IPERS shall
utilize the following assumptions in calculating benefits under this rule.
a. The member's average covered wage shall be
determined in the same manner as it is determined for the nonhybrid
formula.
b. Increases in the
benefit formula under this rule shall be determined as provided under Iowa Code
section
97B.49D. The
percentage multiplier shall only be increased for total years of service over
30.
c. Years of service shall be
utilized as follows:
(1) Quarters which have
two or more occupation class codes shall be credited as the class that has the
highest reported wage for said quarter. A member shall not receive more than
one quarter of credit for any calendar quarter, even though more than one type
of service credit is recorded for that quarter.
(2) Quarters shall not be treated as special
service quarters unless the applicable employer and employee contributions have
been made.
(3)
Years of service fraction not to exceed one.
a. In no event shall a member's years of
service fraction under the hybrid formula exceed, in the aggregate,
one.
b. If the years of service
fraction does, in the aggregate, exceed one, the member's quarters of service
credit shall be reduced until the member's years of service fraction equals, in
the aggregate, one.
c. Service
credit shall first be subtracted from the member's regular service credit and,
if necessary, shall next be subtracted from the member's special service
credit.
(4)
Age
reduction. The portion of the member's benefit calculated under this
rule that is based on the member's regular service shall be subject to a
reduction for early retirement. In calculating the age reduction to be applied
to the portion of the member's benefit based on the member's regular service,
the system shall use all quarters of service credit, including both regular and
special service quarters.
(5)
Calculations. A member's benefit under the hybrid formula
shall be the sum of the following:
a. The
applicable percentage multiplier divided by 22 times the years of special
service credit times the member's high three-year average covered wage,
plus
b. The applicable percentage
multiplier divided by 30 times the years of regular service credit (if any)
times the member's high three-year average prior to July 1, 2012, or the
member's high five-year average after June 30, 2012, covered wage minus the
applicable wage reduction (if any).
c. If the sum of the percentages obtained
exceeds the applicable percentage multiplier for that member, the percentage
obtained above for each class of service shall be subject to reduction so that
the total shall not exceed the member's applicable percentage multiplier in the
order specified in paragraph 12.3(3)"c."
