City Employers

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This information applies to City IPERS-covered employers. 

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Occupation Class Codes Description
01 Regular Employees
06 City Marshals/Police Officers
08 Airport Safety Officers
13 Firefighters (in cities excluded from Chapter 410 or 411)
17 Elected Officials
19 Licensed Health Care Professionals
20 Emergency Medial Service Providers
29 Full-time Elected Official


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Common Questions/Issues for City Employers

Election for Termination of IPERS Coverage

Only newly elected part-time officials may choose to opt out of IPERS coverage, but this choice must be made within the first 60 days of taking office. If an official would like to opt out of IPERS coverage please submit a completed Election for Termination of IPERS Coverage form. Visit the Appointed vs. Elected Officials page for guidance on how IPERS coverage works for these officials.

Please note: People employed as city managers, or as city administrators performing the duties of city managers, are also eligible to elect out of IPERS coverage.

If an employee who is eligible to elect out of IPERS coverage does not elect out within the initial 60-day election window, the employee will default automatically to IPERS coverage. You (the IPERS reporting official) are responsible for telling employees of their right to this important election.

Payroll Taxes for Part-time Elected Officials

Part-time elected officials cannot qualify as independent contractors. For tax reporting purposes, elected officials are employees because they receive wages, not fees. This does not change based on Social Security or Medicare determinations. No matter how much an elected official receives, employers should pay: federal and state income taxes and Medicare taxes, pay Social Security or IPERS (see Social Security Coverage), and issue a W-2 (for more information, consult the IRS website). 

Social Security Coverage

If a part-time elected official’s wages are IPERS-covered, then that person’s wages cannot also be covered under Social Security. This exclusion is part of (1) the Social Security Act and (2) the Section 218 Agreement between the State of Iowa and the Social Security Administration. This means that part-time elected officials who are contributing to IPERS cannot also contribute to Social Security. If an elected official’s wages have been covered for both, the Social Security withholding must stop immediately. In addition, adjustments to previously reported Social Security contributions may be necessary.

Requirements for Part-Time Elected Officials who end IPERS Coverage at Retirement

Part-time elected officials may stay in office and begin receiving retirement benefits if they end IPERS coverage for the part-time elected position and leave all other IPERS covered employment.

It is the part-time elected official’s responsibility to write a letter to the employer informing the organization of the intent to retire and end IPERS coverage as a part-time elected official. The part-time elected official must submit a copy of this letter to IPERS along with a completed Application for Retirement Benefits. A part-time elected official should not submit the Election for Termination of IPERS Coverage form to elect out of coverage at retirement. This form is used only to elect out of IPERS coverage as an active employee. 

Boards/Commission Members

IPERS coverage varies for members of certain boards, such as utility boards or hospital boards and Township Trustee. 

Board members:

  • Have mandatory IPERS coverage when they are elected, are full-time and receive a set salary. 
  • Have mandatory IPERS coverage when they are appointed, are full-time or part-time, and receive a set salary.
  • Have the option to elect out of IPERS coverage when they are elected, are part-time and receive a set salary. 
  • Are excluded from IPERS coverage when they are appointed or elected, and are paid only on a per-diem basis.