State Retiree Benefits Fact Sheet – Iowa

  • December 18, 2007
Iowa's pension system is in good shape—the state has set aside about 88% of the funds needed to cover its long-term pension promises. Iowa generally keeps up with the annual payment amount identified by its own actuaries, although it has contributed a bit less than usual in the last three years. Iowa's retiree health and other non-pension benefits are modest, reflecting the “implicit subsidy” that comes from having retirees participate in the same health plan as typically healthier active employees. Iowa has a long-term bill coming due of about $220 million for nonpension benefits.