Welcome to IPERS
For New IPERS Members and Those Considering IPERS Membership
Iowa Public Employees’ Retirement System
2 WELCOME TO IPERS
YOUR GUIDE TO IPERS MEMBERSHIP BENEFITS
Regardless of your retirement plans or anticipated retirement age, you want a financially secure
retirement. IPERS helps provide the security you need through guaranteed benefits.
Unlike benefits from other retirement plans, IPERS benefits aren’t tied to the performance of the
stock market. With IPERS, you don’t need to make complicated investment decisions for your
retirement dreams to become a reality.
Your IPERS benefits are only one part of your overall
retirement savings. Your total retirement income will
come from a combination of your IPERS benefits,
Social Security and personal savings.
For New IPERS Members and Those Considering IPERS Membership
Welcome to IPERS
This booklet briefly explains certain rights and benefits of IPERS membership. It is not a substitute for federal and state laws
governing IPERS, which provide complete information and are subject to change. Although IPERS makes every attempt to ensure its
materials are accurate and up to date, any conflict between the contents of the booklet and law must be resolved in favor of the law.
The Member Handbook provides a more detailed description of IPERS benefits. It is available at www.ipers.org.
3
For New Members and Those Considering Membership
For New IPERS Members and Those Considering IPERS Membership
A Plan Designed for You
SECURE AND
DEPENDABLE
RETIREMENT BENEFITS
No hassle, no risk —
guaranteed! IPERS uses a
formula to calculate your
benefits, providing you
with guaranteed lifetime
retirement benefits. Your
benefits aren’t tied to the
performance of the stock
market, so you don’t have
to worry about riding out
bumps in the market.
IPERS takes on all the
investment risk, providing
you retirement benefits you
can depend on.
The IPERS plan is a dened benet pension plan. The lifetime monthly
benet you receive is predictable and stable because it is calculated using
a formula. Your benets grow with you throughout your IPERS-covered
employment. As your years of service and salary increase, your IPERS
benets grow too.
IPERS, a public agency, was established for the purpose of providing
a retirement plan to public employees throughout Iowa. As a public
agency, IPERS’ goals are aligned with members’ goals.
IPERS benets are designed to supplement personal savings and Social
Security benets in retirement. IPERS benets also offer nancial
protection for families in the event of death or disability. Enrolling in
IPERS is easy—coverage is automatic for most employees.
4 WELCOME TO IPERS
IPERS Membership
Strength in Numbers:
Our Membership
IPERS covers most Iowa public
employees. With more than 360,000
members and approximately 2,000
employers, IPERS is the largest
public retirement system in Iowa.
IPERS offers retirement benet
stability and security members can
count on.
Most public employees in Iowa
automatically become members of
IPERS when they start employment
with an IPERS-covered employer.
Covered employers include:
• Schools
• Counties
• State agencies
• Cities
• Townships
• Other public employers
A list of positions eligible to choose not to
participate in IPERS is on page 11.
Membership Groups
IPERS has three membership
groups:
• Regular membership group
(which makes up about 95%
of the membership)
• Sheriff/Deputy membership
group
• Protection Occupation
membership group
Members of the Sheriffs/Deputies
and Protection Occupations group
are known as Special Service
members. These members work
in public safety occupations. Their
careers tend to be shorter because of
the physical demands of their jobs.
The retirement benets offered to
each membership group have some
differences. The IPERS Member
Handbook provides a more detailed
description of benets.
Did you know? One in 10
Iowans is an IPERS member.
5
For New Members and Those Considering Membership
Both you and your employer
contribute to IPERS. IPERS invests
the contributions and holds the
investment income in a Trust
Fund for the exclusive purpose
of paying benets to members
and their beneciaries. Seventy
percent of benets paid come
directly from investments.
The Iowa Legislature and
Governor determine the
covered positions in each
membership group and
the benets provided.
IPERS sets contribution rates
as part of its annual actuarial
valuation, which applies actuarial
assumptions and IPERS’ funding
policy. The rate for Regular members
can increase or decrease by no more
than 1.0 percentage point each year.
Rates for all membership groups are
released and posted on www.ipers.org
in November. New rates take effect the
following July 1.
Contributing to IPERS
IPERS is a prefunded
retirement plan. That
means the money
employees contribute
today is pooled and
invested so it can grow
and pay for their own
future benefits.
Benets of Contributing to IPERS
• Automatic retirement savings.
Automatic deductions from your
paycheck ensure you set aside
retirment savings.
• Guranteed Lifetime Benefit. The
lifetime monthly benefit you receive is
predictable and stable.
• Pretax deductions. Your contributions
reduce your taxable income.
• It’s easy. IPERS takes on all the
investment risk. You don’t have to
worry about stock market fluctuations.
6 WELCOME TO IPERS
Membership Rewards
Saving for retirement is important.
IPERS benets are designed to
supplement personal savings and
Social Security benets. Consider these
rewards of IPERS membership.
Security
IPERS is a well-funded retirement
plan. IPERS’ administration and an
independent actuary scrutinize IPERS’
nancial statements yearly. IPERS’
administrators evaluate the retirement
plan’s sustainability and request
changes when appropriate.
Accountability
The Iowa Legislature and Governor
are the plan sponsors for IPERS. The
Legislature authorizes spending from the
Trust Fund for administrative expenses.
IPERS closely monitors and negotiates
investment management expenses and
operates with a small and efcient staff.
Annual nancial statements on the Trust
Fund are available at www.ipers.org.
Worry-Free Benets
As a dened benet plan, IPERS
provides lifetime benets. IPERS
cannot lower benets members have
already earned. The amount of your
benet is based on a formula that
includes your years of service, age,
and average salary. With a dened
contribution plan, such as a 401(k)
or 403(b) plan, you take on the
investment risk. Benet amounts are
not guaranteed or easy to predict.
A Safety Net
IPERS provides death and disability
benets. These benets protect you
and your family.
Portability
You are always entitled to 100% of
your IPERS contributions and interest
earnings. If you change jobs to another
IPERS-covered position, you can keep
your IPERS coverage. If you start
working for a non IPERS-covered
employer, you may leave your money
in IPERS or take a refund. You can roll
over your IPERS refund to another
qualied retirement plan.
If you are vested and decide not to
leave your money in IPERS, you will
receive a portion of your employer’s
contribution (based on your years
of service) along with your own
contribution. You become a vested
IPERS member when you have seven
years of service or when you reach
age 65 while in covered employment,
whichever occurs rst.
Members vested with seven years of
service can purchase IPERS service at
retirement using personal funds or by
rolling over money from a qualied
retirement plan.
Resources
IPERS helps you plan for a secure
retirement. You can speak one-on-
one with a representative — either in
person or over the phone and internet
— who can answer your questions and
address your individual situation.
“ The IPERS plan works for me.
Making contributions is effortless, and I
know I’ll get a benet for the rest of my life.”
— IPERS MEMBER, AGE 22, STARTING PUBLIC SERVICE CAREER
7
For New Members and Those Considering Membership
The formula used to calculate
the annual IPERS benet for all
members, except Special Service
members, includes:
• YOUR AVERAGE SALARY
• A MULTIPLIER
• AN EARLY-RETIREMENT REDUCTION
only if you don’t meet normal retirement
age when you start receiving benefits.
Your average salary is the average of
your highest ve years’ salaries. IPERS
tests your earnings for wage spiking
to prevent overpaying your benets.
Your average salary will be decreased
if wage spiking has occurred.
Normal retirement age is one of the
following (whichever comes rst):
• Age 65
• Age 62 if you have 20 or more years
of service (Rule of 62/20)
• When your years of service plus your
age equals or exceeds 88 (Rule of 88)
If you choose to begin receiving
benets before normal retirement
age, a permanent early retirement
reduction will apply to your benet.
The reduction is 0.5% for each month
(or 6% a year) you receive benets
before age 65.
Your multiplier increases with every
year you work in IPERS-covered
employment. Purchasing IPERS service
also increases your multiplier. The
maximum multiplier is 65%.
The Bottom Line:
What’s the Payout?
Average Salary
× Multiplier
– Reduction, If Any
––––––––––––––––––––––––
Your Annual IPERS Benet
MULTIPLIER FOR
REGULAR MEMBERS
60%
61%
62%
63%
64%
65%
14%
16%
18%
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
40%
42%
44%
46%
48%
50%
52%
54%
56%
58%
YEARS OF
SERVICE
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35+
YOUR IPERS BENEFIT
AMOUNT IS:
• Based on your
individual factors.
• Affected by early
retirement.
• Guaranteed for life.
IPERS Benet
Calculation
8 WELCOME TO IPERS
ACCESS YOUR
BENEFIT
INFORMATION 24/7
WITH MY ACCOUNT
With My Account, you
can explore the value
of your IPERS account
and see estimates of
your future benefits.
In addition, you
can update your
beneficiary or contact
information and much
more. To access your
account, visit
www.ipers.org/
myaccount or call
800-622-3849.
Member Resources
• Knowledgeable representatives are here to help you. Call IPERS at 515-281-0020
or 800-622-3849. Or you can schedule an appointment to meet with an IPERS
representative face-to-face.
• Annual benefits statements provide personal benefit information. Each year, you will
receive a benefits statement that summarizes your service credits, reported wages,
contributions, estimated amount of benefits and beneficiary information. You may also
request a more detailed benefit estimate of your retirement benefits.
• Educational sessions allow you to learn more about IPERS. Our schedule of online and
face-to-face presentations is available at www.ipers.org.
• Retirement planning tools and resources available at www.ipers.org. Our website provides
retirement planning tools and calculators, downloadable forms and various IPERS benefit
publications. You can also access your personalized benefit information at www.ipers.org/
myaccount.
IPERS exists exclusively to provide retirement security for you. We strongly
encourage you to take advantage of our resources:
9
For New Members and Those Considering Membership
IPERS
(Dened Benet Pension Plan)
401(k)s, 403(b)s and Others
(Dened Contribution Plans)
Guaranteed
Benet
YES. Your benefit is guaranteed for life, no matter how
long you live and no matter how the investments perform.
NO. Your benefit fluctuates depending on the amount
in your account and how your investments perform.
Monthly
Benet
STABLE. Your benefit amount is determined by a
formula based on years of service and your average
salary. Once determined, your amount will not change.
UNPREDICTABLE. Your benefit is based on your
contributions, any employer contributions and
any investment earnings or losses (minus any
withdrawals or loans received).
Investment
Risk
IPERS takes on all the investment risk. Your benefit
amount is not affected by stock market fluctuations.
YOU take on all the investment risk. You are
responsible for investment decisions and
monitoring.
Vesting
100% in your contributions. Once you become
vested, you gain access to a greater percentage
of your employer’s contributions with each year
you contribute to IPERS. You become vested after
seven years of service, or when you reach age 65
while in IPERS-covered employment.
100% in your contributions. Vesting in your
employer’s contributions varies by the employer
(plan sponsor). For example, some plans allow
a gradually increasing percentage of vesting
for several years before you reach 100%.
Withdrawals
& Loans
NOT AVAILABLE. Your IPERS funds are not available
to withdraw or borrow against. Only when you leave
covered employment may you withdraw your money.
This is an important difference between IPERS and
defined contribution plans.
TYPICALLY AVAILABLE. Most defined contribution
plans allow for withdrawals and loans. However,
withdrawals and loans will significantly reduce
future benefits that will be needed in retirement.
Portability
YES. If you leave IPERS-covered employment, you can roll
over your money to another qualified retirement plan, take
a refund or leave it with IPERS until a later date.
YES. Your vested funds may be rolled over to
another qualified retirement plan.
Death
Benets
YES. IPERS provides pre and postretirement death
benefits. Beneficiaries can roll over IPERS death
benefits to qualified retirement plans.
YES. Your account balance will transfer to your
beneficiary(ies) when you die.
Disability
Benets
YES. IPERS provides disability benefits if you meet
certain qualifications.
NO. Defined contribution plans do not usually
provide disability benefits.
Fees &
Expenses
INCLUDED. All fees and expenses are paid by the
IPERS Trust Fund and do not affect the amount of your
benefit payment.
TYPICALLY HIGH. All fees and expenses are
distributed across accounts or taken directly from
individual balances.
Dened Benet & Dened
Contribution Plans:
What’s the Difference?
Pension benefits
promote a high level
of public service
through the recruitment
and retention of a
professional workforce;
disability benefits
provide retirement
income security to
public employees who
are unable to work for
an extended period.
— NATIONAL ASSOCIATION
OF STATE RETIREMENT
ADMINISTRATORS
IPERS is committed to helping our
members make sense of retirement
planning. The chart below is
designed to help you sort out
the differences between IPERS (a
dened benet pension plan) and
dened contribution retirement
funds — most common are 401(k)
and 403(b) plans.
If your employer allows you to
choose between IPERS and a dened
contribution plan, use this tool to
determine the best choice for you.
IPERS benet counselors are
available to help you understand
your options. You will also nd a
great deal of information at
www.ipers.org.
10 WELCOME TO IPERS
CALL US WITH
YOUR QUESTIONS
It’s not easy to make
decisions about
something that
may not happen for
decades. Our benefits
counselors can help.
Call, click or come in
for an appointment.
800-622-3849
www.ipers.org
Optional Membership
Alternative Retirement
Plan Coverage
Iowa state law provides that employees
of certain employers are IPERS-covered
unless they decide to participate in an
authorized alternative retirement plan
sponsored by the their employer.
Eligible employees of the following employers
may make an alternative retirement plan election
as follows:
• Community Colleges. Eligible employees are IPERS-
covered unless they elect to participate in an eligible
alternative retirement plan.
• State Board of Regents. Eligible employees are IPERS-covered unless they elect
to participate in a retirement system qualified by the Board that meets the criteria
of Iowa Code section 97B.2. Many positions at the Regents institutions are not
immediately eligible for the alternative plan coverage.
• Water Utilities. Eligible municipal water utility employees are IPERS-covered
unless they elect to participate in an alternative plan authorized under Iowa Code
chapter 412.
Each IPERS-covered employer that offers alternative plan coverage denes
their own retirement plan election process. Regardless of your organization’s
process, you will be IPERS-covered if you do not choose another plan within
60 days from the date of hire (or initial eligibility, if later).
Positions Eligible to Decline IPERS Coverage
Some specic positions may choose not to participate in IPERS, regardless
of whether their employer offers an alternative plan. A full list of these
positions is on the following page.
11
For New Members and Those Considering Membership
WEIGH YOUR
OPTIONS CAREFULLY
If you opt out of IPERS
coverage, your decision
cannot be reversed.
You may only adjust
your election if you:
• Have an eligible
break in service,
such as a bona
fide retirement,
and return to the
same employer at
a later date. This
reemployment
cannot be
prearranged.
• Are elected to a
different position with
the same covered
employer.
• Accept a different
eligible position with
a different covered
employer.
Positions Eligible to Decline
IPERS Coverage
• Employees hired by the Board of Regents, including state universities
• Employees of community colleges
• City managers
• City administrators performing the duties of city managers
• Legislators
• Temporary legislative employees
• Magistrates
• Part-time elected officials
• Elected officials paid on a fee basis
• Elected officials of school districts
• Elected officials of townships
• Nonvested employees of levee and drainage districts
• Employees of community action agencies
• Members of the ministry, rabbinate or other religious orders who have taken a vow
of poverty
• Members of the Iowa Transportation Commission
• Members of the Iowa Board of Parole
• Members of the Iowa Health Facilities Council
• Employees of the Board of Trustees of the Municipal Fire and Police Retirement
System of Iowa
• Employees of a municipal water utility or waterworks
The following employees may decline IPERS coverage within the rst 60 days
of employment. For many people, however, IPERS coverage may be the best
alternative.
If you decline IPERS coverage, your decision cannot be reversed.
424.009 9/19
©2019 Iowa Public Employees’ Retirement System
Alternative formats of this publication are available on request.
Questions? Contact us.
www.ipers.org
Iowa Public Employees’
Retirement System
P.O. Box 9117
Des Moines, Iowa 50306-9117
PRSRT STD
U.S. POSTAGE
PAID
DES MOINES, IOWA
PERMIT NO. 5819
[email protected]
515-281-0020
800-622-3849
7:30 a.m. – 5 p.m. Central Time
Monday – Friday
Fax: 515-281-0053
MAILING ADDRESS
Iowa Public Employees’
Retirement System
P.O. Box 9117
Des Moines, IA 50306-9117
OFFICE HOURS
8 a.m. – 4:30 p.m. Central Time
Monday – Friday
7401 Register Drive
Des Moines, IA 50321