Section 495.12.3. Minimum benefits.

Effective January 1, 1997, those members and beneficiaries of members who retired prior to July 1, 1990, and who upon retirement had years of service equal to or greater than 10, will receive a minimum benefit as follows.

       12.3(1) The minimum benefit is $200 per month for those members with 10 years of service who retired under Option 2. The minimum shall increase by $10 per year or $2.50 per each additional quarter of service to a maximum benefit of $400 per month for members with 30 years of service. No increase is payable for years in excess of 30. The minimum benefit will be adjusted by a percentage that reflects option choices other than Option 2, and a percentage that reflects any applicable early retirement penalty.

       12.3(2) In determining minimum benefits under this rule, IPERS shall use only the years of service the member had at first month of entitlement (FME). Reemployment periods and service purchases completed after FME shall not be used to determine eligibility.

       12.3(3) The adjusted minimum benefit amount shall be determined using the option and early retirement adjustment factors set forth below.

        a.           The option adjustment factor is determined as follows:

	Option 1	.94
	Option 2	1.00
	Option 3	1.00
	Option 4 (100%)	.87
	Option 4 (50%)	.93
	Option 4 (25%)	.97
	Option 5	.97

        b.           The early retirement adjustment factor is determined as follows:

       (1)             There is no early retirement adjustment if the member’s age at first month of entitlement equals or exceeds 65, or if the member’s age at first month of entitlement is at least 62 and the member had 30 or more years of service.

       (2)             The early retirement adjustment for a member having 30 years of service whose first month of entitlement occurred before the member attained age 62 is .25 percent per month for each month the first month of entitlement precedes the member’s sixty-second birthday.

       (3)             The early retirement adjustment for a member having less than 30 years of service whose first month of entitlement occurred before the member attained age 65 is .25 percent per month for each month the first month of entitlement precedes the member’s sixty-fifth birthday.

       (4)             IPERS shall calculate the early retirement adjustment factor to be used in subrule 12.3(4) as follows:

100%

–

early retirement adjustment percentage

=

early retirement adjustment factor

       (5)             The early retirement adjustment shall not be applied to situations in which the member’s retirement was due to a disability that qualifies under Iowa Code section 97B.50 or 97B.50(2).

       12.3(4) IPERS shall use the following formula to calculate the adjusted minimum benefit:

unadjusted minimum benefit

×

option adjustment factor

×

early retirement adjustment factor

=

adjusted minimum benefit

       12.3(5) IPERS shall compare the member’s current benefit to the adjusted benefit determined as provided in subrules 12.3(3) and 12.3(4). If the member’s current benefit is greater than or equal to the adjusted minimum benefit, no change shall be made. Otherwise, the member shall receive the adjusted minimum benefit.

       12.3(6) Effective January 1, 1999, the monthly allowance of certain retired members and their beneficiaries, including those whose monthly allowance was increased by the operation of subrules 12.3(3) to 12.3(5), shall be increased. If the member retired from the system before July 1, 1986, the monthly allowance currently being received by the member or the member’s beneficiary shall be increased by 15 percent. If the member retired from the system on or after July 1, 1986, and before July 1, 1990, the monthly allowance currently being received by the member or the member’s beneficiary shall be increased by 7 percent.