On December 11, 2019 the interim Public Retirement Systems Committee met to receive an update from IPERS, 411 system for police and firefighters, Judicial Branch, Department of Administrative Services-Retirement Investors Club, and Peace Officers’ Retirement System. The state of these pension systems continues to be strong. House Republicans continue to be strong supporters and advocates for the current retirement system.
IPERS currently has 368,292 members. 112,973 of these members are currently retired and additional 10,808 members are retried and reemployed. 172,304 members are actively participating in the system and 72,207 are inactive. The membership is broken down into the following employment categories: 90,955 education, 27,166 county, 24,964 state, 23,578 city, and 5,641. The current investment return assumption 7.0%. The required employee contribution rate is 6.29% and the employer contribution rate is 9.44%. The ratio of actuarial assets to actuarial liabilities increased from 82.4% funded to 83.7% and has over $38 billion in assets.
The Peace Officers’ Retirement, Accident and Disability System (POR) covers sworn peace officers from the Department of Public Safety which includes the Division of Criminal Investigation, Division of Narcotics Enforcement, Division of Intelligence, Iowa State Patrol Division, and State Fire Marshal Division. There are 551 active members, 629 retirees/beneficiaries, and 48 inactives. The system currently has $539.4 million in assets and has a funded ratio of 78%, which is up from 75% last year. The investment return assumption is currently 7.5%. The current contribution rate is $5.5 million by members (11.4% employee contribution rate), $16.8 million by the state (37% employer contribution rate), and a supplemental appropriation by the state of $5 million until the system reaches 85% funded.
The Municipal Fire & Police Retirement System of Iowa (also known as the 411 system) provides retirement for local police and firefighters. There are 4,086 active members, 4,148 non-active members in pay status, and 374 non-active members with deferred benefits. The current funded ratio is 81.04%, which is slightly down from last year’s 82%. Employees currently contribute 9.4% and the employer contributes 25.31%. The actuarial value of investment assets is $2,649,186,492.
The Judicial Retirement System currently has 205 active members, 4 inactive vested members, 171 retirees, and 49 beneficiaries. The system has a funded value of $216, 405,241. The investment return assumption is 6.75%. The current statutory contribution rates are 9.35% for employee and 30.60% for employer. The funded ratio is 89%.
The Department of Administrative Services – Retirement Investors’ Club is a supplemental retirement savings program that provides 457, 401a, and 403b plan administration, compliance, investment options to Iowa public sector and education-related employers and employees. There are currently 12,687 active members of the 403b plan that contribute $14,214,176 quarterly and have assets of $766,073,122. The 457 programs have 14,804 active participants that contribute $12,550,659 and have assets of $936,704,174. The 401a program has 13,620 active assets with quarterly contributions of $5,019,291 with assets of $284,400,611.
