July 1 Contribution Rate Changes
Effective July 1, 2025, the participating city’s contribution rate for the Iowa Code Chapter 411 retirement plan will be 22.555% of earnable compensation and the member contribution rate will be 9.675% of earnable compensation.
Previously, the rate of contribution for participating cities starting July 1, 2025, was reported to be 22.68%. The new contribution rate is established by the passage of House File 969 (HF 969) by the Iowa General Assembly and signing by Governor Kim Reynolds. HF 969 expands the definition of cancer from 14 presumed cancers to all types of cancer. This means that all cancers are now covered under Iowa Code Chapter 411 for accidental disability and accidental death benefits for members of MFPRSI.
Pursuant to the new law, the contribution rate for members will increase by 0.125%, from 9.55% to 9.675% of earnable compensation effective for all pay dates after July 1, 2025. For the participating cities, the increase in the member contribution rate decreases the city contribution rate by 0.125%, from 22.68% to 22.555% effective July 1, 2025.
HF 969 can be reviewed at the Iowa Legislature’s website, https://www.legis.iowa.gov/.
If you have any questions, please contact us at 515.254.9200.