Iowa DOGE-Inspired Unit Decides Against Eliminating Public Employee Pension Plan

In February, Iowa Gov. Kim Reynolds announced that the state was forming its own Department of Government Efficiency-inspired task force, ostensibly focused on making Iowa’s government leaner at the local level.

The unit convened in August to share a list of 45 recommendations—to be finalized at a later date—designed to help reach that goal. Among their suggestions was eliminating Iowa’s public employee pension plan, known as IPERS, and replacing it with a defined contribution program.

Groups representing Iowa public employees immediately pushed back against the idea of eradicating IPERS.

As the Iowa Capital Dispatch reported at the time, organizations including the Iowa chapters of the AFL-CIO and the American Federation of State, County and Municipal Employees (AFSCME) quickly launched “hands off IPERS” efforts, asking Iowans to contact Reynolds and lawmakers to share their opposition to the proposal.

The task force recently issued its final report, which indicates the group has changed course with regard to IPERs, as it ultimately suggested that the pension plan remain intact. Rather, the report advised conducting a study on public employee benefits, while recommending that “all pension and benefit commitments made to existing employees” be honored.

In addition, the unit recommended that any new defined-contribution retirement options be strictly voluntary for current staff, “and structured to protect the solvency of the traditional pension system.”

The report also urged giving employees a choice among benefit plans when feasible to do so, offering the option to select a defined-contribution retirement plan as opposed to a pension for new hires, for instance.

On the heels of the report’s arrival, Reynolds said she plans to use the task force’s report to make recommendations to the Iowa state legislature in 2026. According to the Iowa Capital Dispatch, many of the state’s Republican lawmakers have said there is no meaningful interest in making any adjustments to IPERS during the 2026 legislative session.

As the publication noted, Democratic legislators and organizations representing public sector employees in Iowa have reiterated their objections to making changes to the plan.

State Rep. Larry McBurney, for example, said in an Oct. 21 statement that “any changes to IPERS and other public pensions would be a devastating blow to Iowa’s workforce and economy.”

“For decades, these pensions have provided a secure retirement for public servants, including teachers, police officers, firefighters, nurses and social workers, who dedicate their lives to serving our communities,” McBurney continued.

“Any changes to this system would break yet another promise to workers and further damage Iowa’s already struggling economy, which is ranked dead last in the nation. Instead of the Governor’s DOGE task force threatening retirement security, we should be taking steps to strengthen Iowa’s workers.”