Service Retirement Information
Eligibility
Member shall be age 55 or over with at least 22 years of service at termination of employment.
Basic Benefit Description
A pension equal to 66% of the average final compensation. In addition, there are formula credits for service beyond 22 years but not to exceed 30 years. The additional credit is 2.0% per year with a maximum benefit multiplier of 82% of average final compensation. This pension is eligible for the annual escalator. For a surviving spouse and/or child, a basic death benefit is available as outlined under the section entitled “Death Benefits After Retirement located in the following:
Optional Forms of Benefits
Members retiring on service retirements have the opportunity to select either the “basic benefit” as provided by Iowa Code Chapter 411, or one of several optional forms of benefit. Upon selection of an option, the spousal benefit provided under the basic plan is replaced by the chosen option. The options are calculated using actuarial tables which were developed to consider the age of the member at retirement, the age of the member’s designated beneficiary, and the assumed life expectancy of both. The optional forms of benefits for service and vested retirements are:
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Joint and 75% Survivor Annuity: The member receives an actuarially adjusted benefit for their lifetime. Upon the member’s death, the named beneficiary receives 75% of the gross amount of the member’s payment at the time of the member’s death. The beneficiary receives this amount for their lifetime. Upon the death of the beneficiary, the benefit ends. If the beneficiary dies before the member, the benefit ends with the death of the member.
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Joint and 75% Survivor Annuity with Pop-up: An actuarial adjusted retirement allowance based upon the basic benefit. Following the member's death, the designated beneficiary of the member will receive for their lifetime 75% of the member's retirement allowance at the time of the member's death. If the designated beneficiary predeceases the member, the member's retirement allowance shall be increased to the amount of the service retirement allowance under the basic benefit and no survivor benefit is payable following the death of the member.
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Joint and 100% Survivor Annuity: The member receives an actuarially adjusted benefit for their lifetime. Upon the member’s death, the named beneficiary receives 100% of the gross amount of the member’s payment at the time of the member’s death. The beneficiary receives this amount for their lifetime. Upon the death of the beneficiary, the benefit ends. If the beneficiary dies before the member, the benefit ends with the death of the member.
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Joint and 100% Survivor Annuity with Pop-up: An actuarial adjusted retirement allowance based upon the basic benefit. Following the member's death, the designated beneficiary of the member will receive for their lifetime 100% of the member's retirement allowance at the time fo the member's death. If the designated beneficiary predeceases the member, the member's retirement allowance shall be increased to the amount of the survice retirement allowance under the basic benefit and no survivor benefit is payable following the death of the member.
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Single Life Annuity with Designated Lump Sum: The member receives an actuarially adjusted benefit for their lifetime. Upon the death of the member, a pre-designated lump sum is paid to the named beneficiary or beneficiaries, and the benefit ends. If the beneficiary dies before the member, the lump sum is paid to the member’s estate.
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Straight Life Annuity: An actuarially adjusted benefit is payable to the member for their lifetime. Under this option, no further benefits are payable upon the member’s death.
For each of the optional forms of benefits, a member may designate any individual as the named beneficiary. If a member is married and selects someone other than his or her spouse, the spouse must file a consent form before the election is valid. All beneficiary elections are considered final once the first benefit payment has been cashed and no changes can occur after that time.
Those members within six months of retirement who desire further information on the optional forms of benefits may request, in writing, an estimate from the System. All requests must include the member’s name, social security number, date of birth, date of hire, anticipated date of retirement, address, marital status, beneficiary name, beneficiary date of birth, relationship to beneficiary, and a phone number.