H-4392.2 _______________________________________________
HOUSE BILL 2956
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representatives Belcher, Fraser, R. Meyers, Beck, Jones, Bowman, Kremen, Zellinsky, Basich, Van Luven, Orr and Nelson
Read first time 02/05/92. Referred to Committee on Appropriations.
AN ACT Relating to providing cost-of-living increases to retirees of the public employees' retirement system and the teachers' retirement system; amending RCW 41.32.575 and 41.40.325; adding new sections to chapter 41.32 RCW; and adding new sections to chapter 41.40 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan I" to read as follows:
(1) The increase in benefits provided by this act applies to all persons who retire prior to September 1, 1992.
(2) Any member of the system who is employed in an eligible position after September 1, 1992, may elect to receive the increase for benefits provided by this act by making the election provided in subsection (3) of this section.
(3) A member who is employed in an eligible position after September 1, 1992, may elect to be eligible for the benefits provided by this act by indicating in writing, on a form provided by the department of retirement systems, the member's agreement to contribute an additional three percent of earnable compensation. Such agreement shall be irrevocable and must be submitted not later than December 31, 1992, or, for members who are not employed in an eligible position as of September 1, 1992, within sixty days of the member's return to employment in an eligible position.
NEW SECTION. Sec. 2. A new section is added to chapter 41.40 RCW under the subchapter heading "Plan I" to read as follows:
(1) The increase in benefits provided by this act applies to all persons who retire prior to September 1, 1992.
(2) Any member of the system who is employed in an eligible position after September 1, 1992, may elect to receive the increase for benefits provided by this act by making the election provided in subsection (3) of this section.
(3) A member who is employed in an eligible position after September 1, 1992, may elect to be eligible for the benefits provided by this act by indicating in writing, on a form provided by the department of retirement systems, the member's agreement to contribute an additional three percent of compensation earnable. Such agreement shall be irrevocable and must be submitted not later than December 31, 1992, or, for members who are not employed in an eligible position as of September 1, 1992, within sixty days of the member's return to employment in an eligible position.
Sec. 3. RCW 41.32.575 and 1989 c 272 s 3 are each amended to read as follows:
(1)
Beginning July 1, 1989, and every year thereafter, the department shall
determine the following information for each retired member or beneficiary who
is age sixty-six or over ((the age of sixty-five)):
(a)
The dollar amount of the retirement allowance received by the retiree at the
benefit age ((sixty-five)), to be known for the purposes of this
section as the "benefit age ((sixty-five)) retirement
allowance";
(b)
The index for the calendar year prior to the year that the retiree reached the
benefit age ((sixty-five)), to be known for purposes of this section
as "index A";
(c) The index for the calendar year prior to the date of determination, to be known for purposes of this section as "index B";
(d) The ratio obtained when index B is divided by index A, to be known for the purposes of this section as the "full purchasing power ratio"; and
(e)
The value obtained when the retiree's benefit age ((sixty-five)) retirement
allowance is multiplied by ((sixty percent)) the target percentage
of the retiree's full purchasing power ratio, to be known for the purposes of
this section as the "target benefit."
(2)
Beginning with the July 1993 payment, the ((retiree's)) benefit
age ((sixty-five)) retirement allowance for each retiree who
is age sixty-six or over shall be adjusted to be equal to the retiree's
target benefit. In no event, however, shall the adjusted allowance:
(a) Be smaller than the retirement allowance received without the adjustment; nor
(b) Differ from the previous year's allowance by more than three percent.
(3)
For members who retire after age sixty-five, ((the age sixty-five allowance))
index A shall be the ((initial retirement allowance received by the
member)) index for the calendar year prior to the year the retiree
reached age sixty-five.
(4)
For beneficiaries of members who die prior to ((age sixty-five)) retirement
or after retirement but before the age set in subsection (6) of this section:
(a) The benefit age ((sixty-five)) retirement allowance shall
be the allowance received by the beneficiary on the date the member would have
((turned age sixty-five)) been eligible to retire or the age set in
subsection (6) of this section, whichever is later; and (b) index A shall
be the index for the prior calendar year ((prior to the year the
member would have turned age sixty-five)).
(5) Where the pension payable to a beneficiary was adjusted at the time the benefit commenced, the benefit provided by this section shall be adjusted in a manner consistent with the adjustment made to the beneficiary's pension.
(6) For the purposes of this section:
(a) "Benefit age" means the later of either (i) the member's age at retirement or (ii) from July 1, 1993, through June 30, 1995, age sixty-three; from July 1, 1995, through June 30, 1997, age sixty-one; from July 1, 1997, through June 30, 1999, age fifty-nine; from July 1, 1999, through June 30, 2001, age fifty-seven; and from July 1, 2001, thereafter, the member's age at retirement;
(b) "Index" means, for any calendar year, that year's average consumer price index‑-Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor;
(((b)))
(c) "Retired member" or "retiree" means any member
who has retired for service or because of duty or nonduty disability, or the
surviving beneficiary of such a member;
(d) "Target percentage" means, from July 1, 1993, through June 30, 1995, sixty-two percent; from July 1, 1995, through June 30, 1997, sixty-four percent; from July 1, 1997, through June 30, 1999, sixty-six percent; from July 1, 1999, through June 30, 2001, sixty-eight percent; and from July 1, 2001, thereafter, seventy percent.
Sec. 4. RCW 41.40.325 and 1989 c 272 s 2 are each amended to read as follows:
(1)
Beginning July 1, 1989, and every year thereafter, the department shall
determine the following information for each retired member or beneficiary who
is age sixty-six or over ((the age of sixty-five)):
(a)
The dollar amount of the retirement allowance received by the retiree at the
benefit age ((sixty-five)), to be known for the purposes of this
section as the "benefit age ((sixty-five)) retirement
allowance";
(b)
The index for the calendar year prior to the year that the retiree reached the
benefit age ((sixty-five)), to be known for purposes of this section
as "index A";
(c) The index for the calendar year prior to the date of determination, to be known for purposes of this section as "index B";
(d) The ratio obtained when index B is divided by index A, to be known for the purposes of this section as the "full purchasing power ratio"; and
(e)
The value obtained when the retiree's benefit age ((sixty-five)) retirement
allowance is multiplied by ((sixty percent)) the target percentage
of the retiree's full purchasing power ratio, to be known for the purposes of
this section as the "target benefit."
(2)
Beginning with the July 1993 payment, the ((retiree's)) benefit
age ((sixty-five)) retirement allowance for each retiree who
is age sixty-six or over shall be adjusted to be equal to the retiree's
target benefit. In no event, however, shall the adjusted allowance:
(a) Be smaller than the retirement allowance received without the adjustment; nor
(b) Differ from the previous year's allowance by more than three percent.
(3)
For members who retire after age sixty-five, ((the age sixty-five allowance))
index A shall be the ((initial retirement allowance received by the
member)) index for the calendar year prior to the year the retiree
reached age sixty-five.
(4)
For beneficiaries of members who die prior to ((age sixty-five)) retirement
or after retirement but before the age set in subsection (6) of this section:
(a) The benefit age ((sixty-five)) retirement allowance shall
be the allowance received by the beneficiary on the date the member would have
((turned age sixty-five)) been eligible to retire or the age set in
subsection (6) of this section, whichever is later; and (b) index A shall
be the index for the prior calendar year ((prior to the year the
member would have turned age sixty-five)).
(5) Where the pension payable to a beneficiary was adjusted at the time the benefit commenced, the benefit provided by this section shall be adjusted in a manner consistent with the adjustment made to the beneficiary's pension.
(6) For the purposes of this section:
(a) "Benefit age" means the later of either (i) the member's age at retirement or (ii) from July 1, 1993, through June 30, 1995, age sixty-three; from July 1, 1995, through June 30, 1997, age sixty-one; from July 1, 1997, through June 30, 1999, age fifty-nine; from July 1, 1999, through June 30, 2001, age fifty-seven; and from July 1, 2001, thereafter, the member's age at retirement;
(b) "Index" means, for any calendar year, that year's average consumer price index‑-Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor;
(((b)))
(c) "Retired member" or "retiree" means any member
who has retired for service or because of duty or nonduty disability, or the
surviving beneficiary of such a member;
(d) "Target percentage" means, from July 1, 1993, through June 30, 1995, sixty-two percent; from July 1, 1995, through June 30, 1997, sixty-four percent; from July 1, 1997, through June 30, 1999, sixty-six percent; from July 1, 1999, through June 30, 2001, sixty-eight percent; and from July 1, 2001, thereafter, seventy percent.
NEW SECTION. Sec. 5. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan I" to read as follows:
In addition to any cost of living adjustments provided under RCW 41.32.575 or 41.32.487, on February 1, 1992, the department of retirement systems shall also pay an additional adjustment to any retiree of plan I of the teachers' retirement system whose state retirement benefit has a purchasing power of less than sixty percent of the purchasing power of the benefit the retiree received at age sixty-five. Each such retiree shall be given an increase on July 1 of any year sufficient, when combined with any other adjustment received, to restore the purchasing power of the retiree's state retirement benefit to sixty percent of the purchasing power of the benefit received by the retiree at age sixty-five. This increase shall be calculated using the formula contained in RCW 41.32.575 but without regard to RCW 41.32.575(2)(b).
NEW SECTION. Sec. 6. A new section is added to chapter 41.40 RCW under the subchapter heading "Plan I" to read as follows:
In addition to any cost of living adjustments provided under RCW 41.40.325 or 41.40.1981, on February 1, 1992, the department of retirement systems shall also pay an additional adjustment to any retiree of plan I of the public employees' retirement system whose state retirement benefit has a purchasing power of less than sixty percent of the purchasing power of the benefit the retiree received at age sixty-five. Each such retiree shall be given an increase on July 1 of any year sufficient, when combined with any other adjustment received, to restore the purchasing power of the retiree's state retirement benefit to sixty percent of the purchasing power of the benefit received by the retiree at age sixty-five. This increase shall be calculated using the formula contained in RCW 41.40.325 but without regard to RCW 41.40.325(2)(b).