Governor Kim Reynolds’ DOGE Taskforce is approaching the final phase of its work, with a wide-ranging agenda aimed at making Iowa’s government more efficient, accountable, and responsive. While the taskforce was initially formed to help identify opportunities to ease the burden of property taxes, its recommendations extend far beyond that, also addressing education, regulatory reform, the structure of state and local government, and pension reforms.
The taskforce’s stated mission is to “continue reducing the cost of government, maximizing the return on taxpayer investment, and leveraging new technology at all levels—federal, state, and local.” Over the past several months, the 15-member panel has been developing bold, forward-looking reforms across a variety of policy areas.
In its most recent meeting, the taskforce reviewed 45 preliminary recommendations, which are expected to be finalized in September before being submitted to Governor Reynolds by the September 29 deadline.
In a new series of articles, ITR Foundation will spotlight several of the taskforce’s most significant reform ideas—focusing on proposals related to education, local government, regulations, and public pensions.
Reforming public pensions isn’t easy. Whether it’s Social Security at the federal level or Iowa’s IPERS program, these systems come with deep political roots—and big financial consequences. But as the cost of benefits grows, so does the need to keep promises without overburdening taxpayers.
That’s why Iowa’s DOGE Taskforce is weighing a reform that could affect future public employees. The Taskforce’s Return on Investment Committee, chaired by the former mayor of Fort Dodge, Terry Lutz, has suggested Iowa consider shifting new public workers into a retirement model that resembles a 401(k). In other words, future employees—not current ones—would participate in a system based on contributions and investment performance, similar to what most private sector workers use.
Even those who see merit in transitioning future public employees to a defined-contribution retirement system acknowledge that IPERS is currently in strong financial shape—over 90% funded and ranked among the most stable public pension systems in the nation. Given that stability, lawmakers will weigh whether tackling such a politically charged issue now is the best use of limited time and political capital.
In this light, the question is not simply whether pension reform could save money in the long run, but whether it is the right fight at the right time. When state resources—both fiscal and political—are finite, legislators must set priorities that deliver the greatest return for taxpayers. For many, that means keeping an eye on long-term pension sustainability while focusing today’s efforts on reforms that have a clearer path to passage and an immediate impact on Iowa families.
Other states have made similar moves. In 2011, Utah faced an alarming pension shortfall. By offering new hires a choice between a 401(k)-style plan or a hybrid option, Utah cut its risk of insolvency from 50% to just 10%. Today, it ranks alongside Iowa in having one of the healthiest public pension systems in the country.
If Iowa pursues a similar reform, it won’t affect current retirees or workers. But it could give future public employees more control over their retirement, while helping taxpayers avoid unsustainable costs down the road.
The Taskforce is also considering a broader review of public compensation, including wages, time off, and benefits. The goal isn’t to punish workers—it’s to make sure public compensation keeps pace with what’s reasonable and fair in the private sector. As Lutz put it, some roles have “compensation packages that far exceed the private sector.”
These are conversations worth having—at the Capitol, and around every kitchen table in Iowa.
Beyond any of the specific proposals emerging from the DOGE Taskforce, Iowans should be encouraged by the broader effort to identify areas where government can be more efficient, accountable, and effective. Whether or not each idea becomes law, the real value lies in highlighting opportunities for reform and sparking conversations that can lead to meaningful change. Combined with Governor Reynolds’ commitment to limiting the size and scope of government, this work lays a strong foundation for thoughtful policymaking in the 2026 legislative session and beyond.
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