Offer teacher bonuses for student achievement, opt-out option for public workers’ retirement program, Iowa DOGE task force says

DES MOINES — New public employees would be given the opportunity to opt out of the state retirement program, and teachers would receive financial bonuses for student achievement under recommendations being put forward by Iowa Gov. Kim Reynolds’ citizen-run task force on government efficiency.

Reynolds’ DOGE Task Force — so named after the new federal Department of Government Efficiency created by President Donald Trump and formerly run by billionaire Elon Musk — met for the fourth and final time Monday at a state office building in Des Moines.

At the meeting, the task force’s three subcommittees — on workforce, technology and return on taxpayer investment, as directed by Reynolds — presented their final recommendations, which must be compiled in a report and delivered for their consideration to Reynolds and state lawmakers by Sept. 29.

The task force’s recommendations on teacher pay being tied to student outcomes and the state’s public employee retirement program are among those that received the greatest amount of public attention — along with a previously floated recommendation to consolidate some Iowa counties.

While previous discussions on the topics were just that while the task force conducted its work, those presented during Monday’s meeting will be the formal recommendations put forth by the task force to the governor and state lawmakers.

“It’s up to the elected officials and the governor to take these (task force recommendations) and put together what they think is right for Iowa,” Emily Schmitt, the task force’s chairwoman and the chief administrative officer and general counsel for Sukup Manufacturing, said during the meeting.

Task force leader clarifies teacher pay, retirement proposals

The recommendations on teacher pay and public employee retirement benefits came from the task force’s subcommittee on return on taxpayer investment. Terry Lutz, the subcommittee’s chairman and the chairman of McClure Engineering, said during Monday’s meeting that he was sorry that previous discussion about the proposals was “misrepresented and misunderstood,” and apologized if his comments contributed to any confusion.

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Lutz said the subcommittee will not recommend any reductions in Iowa teacher pay nor any changes to benefits for current public employees.

“I’d like to apologize to my work group and all the members of the committee, as it seems some of my comments from the last time we met were not clear and have led to misinterpretation and undue concern from our valued educators and other public sector employees,” Lutz said.

“No one on our committee has ever suggested cutting teacher pay,” Lutz added. “In fact, we were focused on increasing teacher pay, and on top of regular pay, providing incentives in the form of bonuses up to 10 percent of base pay for those educators that can be measured and rewarded for increasing student achievements.

“The goal is straightforward: to increase our student achievements and reward those who are making it happen. Other states are figuring out how to do this, and it is improving their student outcomes.”

Lutz also expounded on the subcommittee’s recommendations for IPERS, the state’s public employee retirement program. He said the group’s focus has been on helping Iowa’s public sector be more competitive with the private sector and praised the state’s public workers.

The subcommittee will recommend a study on Iowa’s total benefits package for public employees that also could examine a defined contribution plan and present that as an optional alternative for future public workers in Iowa.

A defined contribution plan, like a 401(k), depends in part on market performance. A defined benefit plan, like IPERS, guarantees a certain level of income in a worker’s retirement.

IPERS pays more than $2.6 billion in annual benefits, and its trust fund is at roughly $45 billion, according to the state. The trust fund’s solvency — its projected ability to pay out future benefits — is among the healthiest in the nation, according to multiple reports and analyses by financial institutions.

“No one on our committee has ever suggested taking away IPERS from our current public employees. No one on our committee has ever suggested reducing public employee pay or the health care benefits for our public employees. Those benefits that have been promised to our current employees must remain. We would never recommend anything that would jeopardize the solvency of our pension benefits,” Lutz said.

“Our recommendation is to commit a recurring comprehensive study to benchmark and optimize the total rewards package for public sector employees,” Lutz added. “It would give policymakers a reliable, data-driven basis for decisions, while preserving commitments to current employees.

“The study could examine a defined contribution plan like many other states have moved to, and if viable, we are recommending giving employees a choice. Employees could decide if they want to stay on the current plan or move to a different one if it’s better for them and their families.”

Gov. Reynolds, teachers union leader comment on task force

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The statewide teacher’s union pushed back at Lutz’s comments Monday, casting continued concerns on both proposals.

“The Task Force continues to recommend weakening IPERS by reducing future contributions,” Iowa State Education Association President Joshua Brown said in a statement. “IPERS is a proven driver of local economies, with one in 10 Iowans benefiting from their contributions to the system. It is a fair and equitable system that has proven to be a powerful tool for attracting new employees. …

“The Task Force’s message on merit pay did not change either. Their recommendation is to move forward with a scheme that ties a student’s performance on a standardized test to teacher pay, which has proven unsuccessful,” Brown’s statement also said. “Students come to school with factors beyond their control, which can negatively impact testing, while some metrics are biased in favor of high-performing students and proficient test takers. Students are worth more than a test score.”

Reynolds, who created the task force as an extension of her redesign of state government — which started with her executive branch reorganization in 2019 — issued a statement thanking the task force for its work.

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Reynolds said she looks forward to reviewing the report and considering its recommendations, and will share “in the coming weeks” her plans “for the next phase of government alignment.”

“Private sector businesses often lead innovation, and we can learn from their example,” Reynolds said in the statement. “When government adopts a similar mindset, it can better adapt to changing needs. Iowa can’t continue doing business the same way it has for decades and expect to meet modern-day demands.

“Our taxpayers deserve a better return on their investment and, by operating more effectively and efficiently, our state will be even better positioned to attract business, grow our workforce, expand our economy, and sustain the quality of life we all value.”

Other recommendations and about the task force

The task force’s report also will include recommendations to:

The complete list of recommendations will be published in the task force’s report to Reynolds and state lawmakers.

Reynolds’ Iowa DOGE Task force was comprised of 15 members representing private business and local government. The group met four times, starting in April. Reynolds created the task force by executive order and charged it with maximizing Iowa taxpayers’ return on investment in their government, advancing job training to feed Iowa’s workforce, and leveraging new technologies like artificial intelligence.

Of the task force’ 15 members, 10 are elected Republicans or have donated thousands of dollars to Iowa Republicans, including Reynolds. The two task force members who serve in the Iowa Legislature are non-voting members.

Iowa DOGE Task Force members:

Comments: (515) 355-1300, erin.murphy@thegazette.com

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