On Wednesday, August 6, the Iowa DOGE Task Force met to discuss dozens of proposals to present to Gov. Reynolds and lawmakers.

Among those proposals were recommendations to significantly change public employees’ pensions and retirement benefits.

Terry Lutz, a member of the task force and chair of one of the internal working groups, said, “We are recommending doing away with the current defined benefits program and going to a defined contribution program.”

What does that mean?

• Under a defined benefits plan, the employer manages the investments and is responsible for ensuring there are sufficient funds available to pay the guaranteed retirement benefits, which are calculated based on an employee’s salary and years of service.

• Under a defined contribution plan, like a 401(k), the employee manages the investments and is responsible for the risk. Defined contribution plans do not promise any specific amount of benefits at retirement.

In short, it means shifting the risk and management responsibility from the employer to the employee and eliminating the specific, promised retirement benefits.

This proposed change would threaten programs on which hundreds of thousands of Iowans rely, like Iowa Public Employees Retirement System (IPERS), Municipal Fire and Police Retirement System of Iowa (MFPRSI), Peace Officer Retirement, Accident, and Disability System (POR), and the Judicial Retirement System.

The Iowa Senate Democrats have put together a new Retirement Alerts newsletter to keep you informed and up to date on the proposed changes and to keep you in the loop on opportunities to make your voice heard at any town halls, public forums, informational sessions, or potential subcommittee meetings. Complete the form to the right to subscribe!