"What the heck is IPERS, and why is Winneshiek Medical Center sending him $920,000?"

Mr. Answer Person says: "IPERS is a "what," not a "who."  The initials stand for 'Iowa Public Employees' Retirement System.'  Membership in this statewide pension plan is mandatory for all employees of Winneshiek Medical Center, except for those covered by another retirement system.  Winneshiek Medical Center is charged an IPERS rate that will allow the statewide plan to be able to make retirement benefit payments to all retirees who qualify for such payments.  The rate charged to WMC is a percentage of the covered wages of all WMC employees.

However, in the 2000s new mortality tables were created to account for the fact that people were living longer in retirement.  That coincided with the 2007 recession.  A contribution rate change was needed to keep IPERS healthy, but the Iowa Legislature instead chose to delay a contribution increase. As a result, a shortfall was created in IPERS, which means that if ALL future retirement benefits had to be paid TODAY, there wouldn't be enough money. 

Of course, not all retirement benefits are due immediately, so IPERS is still solvent.  But IPERS wanted to make sure it avoided budget problems, so it has increased the contributions it is requiring from organizations like Winneshiek Medical Center which are participating in the state retirement fund.