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Some township trustees and township clerks are elected while others are appointed. Additionally, sometimes cities must appoint a mayor or council person outside a normal election.
As of January 1, 2023, all newly appointed part-time officials are covered for IPERS and Social Security. They do not have optional coverage. Use occupation code 01 to report wages for these individuals.
Please note: Any part-time officials appointed prior to January 1, 2023, will retain their optional coverage as previously submitted to IPERS. Use occupation code 01 with Social Security withheld when reporting wages for any current part-time appointed official with IPERS coverage.
At retirement, part-time appointed officials, under the age of 70, are required to leave office and terminate all IPERS-covered employment to satisfy the bona fide retirement rules.
IPERS has created resources to answer your questions. The table below will help you determine IPERS' coverage rules for elected and appointed employees. The FAQ section below provides additional clarification.
IPERS will honor any elections for appointed members made prior to January 1, 2023. Use occupation class code 01 to report appointed members; these members may not opt out of IPERS. You should deduct Social Security, Medicare and IPERS contributions for these members, as well.
Additionally, the Election for Termination of IPERS' Coverage form is updated to reflect these changes. Appointed members are not allowed to opt out of IPERS; their coverage is mandatory except where noted on the table below.
IPERS has not changed any coverage rules for elected members. Continue to report these members using Occupation Class Code 17. Deduct IPERS and Medicare if they have chosen to participate in IPERS. Deduct Social Security and Medicare if they have opted out of IPERS coverage. These employees cannot have both IPERS and Social Security deducted from their pay.
FAQ Accordion Title
Frequently Asked Questions
No. Although elected positions are IPERS-covered, the law allows some elected officials to elect out of coverage, including:
- Full- or part-time elected officials in positions for which the compensation is on a fee basis.
- Full- or part-time elected officials of school districts.
- Full- or part-time elected officials of townships.
- Part-time elected officials of other political subdivisions such as township clerks and city council members.
- Iowa legislators.
For IPERS’ purposes, “elected officials” are people elected by the public. Those who are appointed for an interim period to fill a vacant position or appointed to fill a position are not considered “elected”. Appointed part-time officials do not have optional coverage.
Yes. Elected officials who do not have IPERS coverage for their elected positions, either because the positions are exempt from coverage or because they elected out of IPERS, may receive retirement benefits earned through other employment while in office.
An IPERS-covered elected official may choose to receive IPERS retirement benefits and still hold their elected position. They should end coverage with IPERS prior to collecting retirement benefits so they do not violate IPERS bona fide retirement requirements. All other bona fide retirements must be met including termination of all employment with an IPERS-covered employer other than their elected official position. Appointed part-time officials must terminate all positions that are IPERS-covered in order to begin receiving IPERS retirement benefits and are subject to all bona fide retirement requirements.
To end IPERS coverage for the elected position, the member (elected official) must write a letter to the employer informing them of the decision to end IPERS membership in order to begin drawing IPERS retirement benefits. The member must submit a copy of this letter to IPERS with a completed application for retirement benefits. After the first 60 days of taking office, this is the only way for elected officials to end IPERS coverage.
Elected means any person elected by vote in a general or special election to fill any executive, legislative or judicial office. Appointed means any person who is appointed (usually by the board or council) to fill an elective office or interim office position.
The decision to elect out of IPERS coverage is a one-time irrevocable decision for this employment with this employer. The decision does not affect IPERS eligibility for separate current or future employment, whether the separate employment has mandatory or optional coverage. Also, if the official is elected to a different position, or leaves office and is later reelected, the individual would again be eligible for IPERS coverage. Remember to notify newly elected officials who take office in January of their optional coverage rights. Appointed part-time officials do not have optional coverage. The Election for Termination of IPERS Coverage form lists all positions with optional coverage. Additional information in available in IPERS’ Employer Handbook.
An elected official who does not want IPERS coverage must complete and Election for Termination of IPERS Coverage form, obtain employer verification on the form and submit it to IPERS within 60 days of taking office. If IPERS does not receive a properly completed form within 60 days, the elected official becomes IPERS-covered.
No. The $50,000 earnings limitation does not apply to covered employment as an elected official. Appointed part-time officials are subject to IPERS’ reemployment earnings limitation after retirement.
Yes. Those elected to a board may or may not have optional coverage depending on how they are paid and whether the board members serve in full-or part-time positions (Iowa’s township trustees are considered board members.):
- Full-time elected board members who are paid a salary must be IPERS-covered.
- Part-time elected board members who are paid a salary are IPERS-covered unless they elect out of coverage.
- Elected board members who are paid only per diem/per meeting and/or expenses are not IPERS-covered.
Although county attorneys are elected, they may not elect out of IPERS coverage regardless of whether they are full- or part-time. Appointed part-time officials do not have optional coverage.
Yes. The Iowa code has an exception for retirees elected to public offices if the first term begins during the four-month bona fide retirement period. Although retirees must have ended other IPERS-covered employment to qualify for retirement benefits, they may accept pay and have IPERS coverage for the elected position without putting their IPERS benefits at risk. If an elected official has IPERS coverage for the elected position and is reelected to the same position for another term, the elected official must end IPERS coverage to receive retirement benefits. Appointed part-time officials must terminate all positions that are IPERS covered to begin receiving IPERS retirement benefits. They are subject to all bona fide retirement requirements.