Iowa lawmakers say ‘double dipping’ not a problem

DES MOINES - Lawmakers said a report by the Iowa Public Employees Retirement System should lessen concerns about public workers who “double-dip” by collecting retirement benefits and then taking other government jobs.

The report presented to lawmakers Monday shows a peak of 8,501 re-employed IPERS members in 2008. Three-quarters of them had gone back to work for the same employer.

However, re-employment wages rarely rose above $30,000 a year - the level at which employees see a 50 percent monthly reduction in retirement benefits.

Senate President Jack Kibbie, an Emmetsburg Democrat and co-chairman of the Public Retirement Systems Committee, said many rehired employees are serving as substitute teachers or filling high-need positions, such as nursing.

He said he hopes the report will convince legislators that “double dipping” isn't a problem.

“There are some what people might call abuses, but they're very minimal,” Kibbie said.

The practice has become a hot topic nationwide as government budgets tighten. In Iowa, concerns were raised last year over Gov. Terry Branstad drawing a pension from his previous time in office while collecting his current salary.

Iowa lawmakers also have asked whether a 2010 program that provided benefits for state employees who retire early has properly protected against the practice.

The report found the re-employed workers' impact is about $7.3 million in fiscal 2013. The pension fund, meanwhile, had a total value of $23.2 billion at the end of fiscal 2011.

Rep. Mark Lofgren, R-Muscatine, agreed that the report shows re-employment is not as serious a problem as lawmakers thought.

Sen. Matt McCoy, a Des Moines Democrat, said the new information should put the issue to rest.

“This has been one of those issues where we've never really had the hard data, and now we can move on,” McCoy said.