S-0450.2/91       _______________________________________________

 

                                 SENATE BILL 5092

                  _______________________________________________

 

State of Washington              52nd Legislature             1991 Regular Session

 

By Senators Roach, Snyder, Stratton, Amondson, L. Kreidler, McCaslin, Erwin, Newhouse, Niemi, Sellar, Craswell, Gaspard, Hayner, Skratek, L. Smith, Talmadge, Oke, Bauer, Rasmussen, Thorsness, Johnson, Wojahn, Cantu and West.

 

Read first time January 18, 1991.  Referred to Committee on Ways & Means.Continuing retirement system membership while on active duty in operation Desert Shield.


     AN ACT Relating to employee benefits while on active duty during operation Desert Shield; amending RCW 28B.10.407, 41.26.190, 41.26.520, 41.32.260, 41.32.810, 41.40.170, and 41.40.710; adding a new section to chapter 28A.400 RCW; adding a new section to chapter 41.04 RCW; adding a new section to chapter 41.32 RCW; adding a new section to chapter 43.43 RCW; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     NEW SECTION.  Sec. 1.  A new section is added to chapter 28A.400 RCW to read as follows:

     (1) If an employee of a school district or an educational service district is activated from either federal military reserve service or state militia service and placed on active duty with the armed forces of the United States due to operation Desert Shield during the period from August 2, 1990, through a date specified by an agency of the federal government terminating operation Desert Shield, such employee's dependents shall be entitled to the same health care and other insurance in which such employee was enrolled immediately prior to being placed on active duty.  This continuation of coverage shall continue until either:

     (a) The employee is either released or discharged from active duty; or

     (b) Six months after the employee is killed in the line of duty unless the surviving spouse or dependent has a prior right to continue such coverage by law or contract.

     (2) The premium cost, if any, of such health care and other insurance programs to the spouse and/or dependents shall be the same as the premium that would have been required of the employee had he or she remained in the employ of the school or educational service district.

 

     NEW SECTION.  Sec. 2.  A new section is added to chapter 41.04 RCW to read as follows:

     (1) If an employee of the state, county, municipality, or other political subdivision is activated from either federal military reserve service or state militia service and placed on active duty with the armed forces of the United States due to operation Desert Shield during the period from August 2, 1990, through a date specified by an agency of the federal government terminating operation Desert Shield, such employee's dependents shall be entitled to the same health care and other insurance in which such employee was enrolled immediately prior to being placed on active duty.  This continuation of coverage shall continue until either:

     (a) The employee is either released or discharged from active duty; or

     (b) Six months after the employee is killed in the line of duty unless the surviving spouse or dependent has a prior right to continue such coverage by law or contract.

     (2) The premium cost, if any, of such health care and other insurance programs to the spouse and/or dependents shall be the same as the premium that would have been required of the employee had he or she remained in the employ of the employer.

 

     Sec. 3.  RCW 28B.10.407 and 1987 c 448 s 1 are each amended to read as follows:

     (1) A faculty member or other employee designated by the boards of regents of the state universities, the boards of trustees of the regional universities and The Evergreen State College, or the state board for community college education who is granted an authorized leave of absence without pay may apply the period of time while on the leave in the computation of benefits in any annuity and retirement plan authorized under RCW 28B.10.400 through 28B.10.430 only to the extent provided in subsection (2) of this section.

     (2) An employee who is eligible under subsection (1) of this section may receive a maximum of two years' credit during the employee's entire working career for periods of authorized leave without pay.  Such credit may be obtained only if the employee pays both the employer and employee contributions required under RCW 28B.10.405 and 28B.10.410 while on the authorized leave of absence and if the employee returns to employment with the university or college immediately following the leave of absence for a period of not less than two years.  The employee and employer contributions shall be based on the average of the employee's compensation at the time the leave of absence was authorized and the time the employee resumes employment. Any benefit under RCW 28B.10.400(3) shall be based only on the employee's compensation earned from employment with the university or college.

     (a) An employee, other than someone meeting the conditions of (b) of this subsection, who is inducted into the armed forces of the United States shall be deemed to be on an unpaid, authorized leave of absence.

     (b) During the period from August 2, 1990, to a date specified by an agency of the federal government as the end of the situation known as operation "Desert Shield," if an employee is activated from federal military reserve or state militia service to active duty in the armed forces of the United States due to operation Desert Shield, such employee shall continue membership in any annuity or retirement income plan established under the provisions of RCW 28B.10.400 as though employed for the period of active duty.  Such membership, however, shall terminate in the event of death.  The necessary retirement contributions for this period required by RCW 28B.10.405 and 28B.10.410 shall be paid by the board of regents of the state universities, boards of trustees of the regional universities and of The Evergreen State College, or the state board for community college education based on the salary being paid at the time of entering active duty incremented by any subsequent general salary increase upon the request of the employee when returning to employment after release from active duty.  Upon receipt of the contributions the appropriate service shall be granted.

 

     Sec. 4.  RCW 41.26.190 and 1970 ex.s. c 6 s 13 are each amended to read as follows:

     Each person affected by this chapter who either (1) at the time of entering the armed services or (2) at the time of being activated from federal military reserve or state militia service to active duty due to the situation known as operation "Desert Shield," during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, was a member of this system, and has honorably served in the armed services of the United States, shall have added to his or her period of service as computed under this chapter, his or her period of service in the armed forces:  PROVIDED, That such credited service shall not exceed five years.

 

     Sec. 5.  RCW 41.26.520 and 1989 c 88 s 2 are each amended to read as follows:

     (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.26.410 through 41.26.550.

     (2) A member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer except for such leave of absence where service credit is granted under subsection (3) of this section.  Such credit may be obtained only if the member makes the employer, member, and state contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner:  PROVIDED, That for the purpose of this subsection the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW 41.26.450.  The contributions required shall be based on the average of the member's basic salary at both the time the authorized leave of absence was granted and the time the member resumed employment.

     (3) A member who is inducted into the armed forces of the United States shall be deemed to be on an unpaid, authorized leave of absence.  If, however, the member is activated from federal military reserve or state militia service to active duty into the armed forces of the United States due to the situation known as operation "Desert Shield," during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, the member shall retain his or her membership as though the member were still in the employ of an employer, but this membership shall terminate in the event of death.  The contributions required by RCW 41.26.450 shall be based on the basic salary being received at the time of entering active duty, incremented by any general salary increase or negotiated increase which is implemented during such period upon the request of the member when returning to employment after release from active duty.  These contributions shall be paid as follows:

     Employee                   50%

     Employer                   30%

     State                            20%

Upon receipt of the contributions the appropriate service shall be granted.  When the member requests crediting of service after returning to employment from active military service, the employer shall pay the employee's assigned share of fifty percent.

     (4) A member receiving benefits under Title 51 RCW who is not receiving benefits under this chapter shall be deemed to be on unpaid, authorized leave of absence.

 

     Sec. 6.  RCW 41.32.260 and 1974 ex.s. c 199 s 2 are each amended to read as follows:

     (1) Any member whose public school service is interrupted by active service to the United States as a member of its military, naval or air service, other than as provided in subsection (2) of this section, or to the state of Washington, as a member of the legislature, may upon becoming reemployed in the public schools, receive credit for such service upon presenting satisfactory proof, and contributing to the annuity fund, either in a lump sum or installments, such amounts as shall be determined by the board of trustees((:  PROVIDED (1), That no such military service credit in excess of five years shall be established or reestablished after July 1, 1961, unless the service was actually rendered during time of war:  PROVIDED FURTHER (2), That a member of the retirement system who is a member of the state legislature or a state official eligible for the combined pension and annuity provided by RCW 41.32.497, or 41.32.498, as now or hereafter amended shall have deductions taken from his or her salary in the amount of seven and one-half percent of earnable compensation and that service credit shall be established with the retirement system while such deductions are reported to the retirement system, unless he or she has by reason of his or her employment become a contributing member of another public retirement system in the state of Washington:  AND PROVIDED FURTHER (3), That such elected official who has retired or otherwise terminated his or her public school service may then elect to terminate his or her membership in the retirement system and receive retirement benefits while continuing to serve as an elected official:  AND, PROVIDED FURTHER (4), That a member of the retirement system who had previous service as an elected or appointed official, for which he or she did not contribute to the retirement system, may receive credit for such legislative service unless he or she has received credit for that service in another state retirement system, upon making contributions in such amounts as shall be determined by the board of trustees)).

     (2) Any member whose public school service is interrupted by being activated from federal military reserve or state militia service to active service into the armed forces of the United States due to the situation known as operation "Desert Shield," during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, shall be considered as continuing his or her membership as though still in the employ of an employer.  This membership shall terminate in the event of death.  The necessary employee contributions as well as the employer contributions required under this chapter shall be paid by the employer based on the salary being paid at the time of entering active service incremented by either any subsequent general salary increase or negotiated salary increase upon the request of the member when returning to employment after release from active duty.  Upon receipt of the contributions the appropriate service shall be granted.

 

     NEW SECTION.  Sec. 7.  A new section is added to chapter 41.32 RCW to read as follows:

     A member of the retirement system who is a member of the state legislature or a state official eligible for the combined pension and annuity provided by RCW 41.32.497, or 41.32.498, as now or hereafter amended shall have deductions taken from his or her salary in the amount of seven and one-half percent of earnable compensation and that service credit shall be established with the retirement system while such deductions are reported to the retirement system, unless he or she has by reason of employment become a contributing member of another public retirement system in the state of Washington.  Such elected official who has retired or otherwise terminated public school service may then elect to terminate membership in the retirement system and receive retirement benefits while continuing to serve as an elected official.  A member of the retirement system who had previous service as an elected or appointed official, for which he or she did not contribute to the retirement system, may receive credit for such legislative service unless he or she has received credit for that service in another state retirement system, upon making contributions in such amounts as shall be determined by the board of trustees.

 

     Sec. 8.  RCW 41.32.810 and 1977 ex.s. c 293 s 13 are each amended to read as follows:

     A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.32.755 through 41.32.825.

     A member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer except for such leave of absence where service credit is granted under this section because of activation from federal military reserve or state militia service to active duty in the armed forces of the United States.  Such credit may be obtained only if the member makes both the employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner:  PROVIDED, That for the purpose of this ((subsection [section])) section the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW 41.32.775.  The contributions required shall be based on the average of the member's compensation earnable at both the time the authorized leave of absence was granted and the time the member resumed employment.

     A member who is inducted into the armed forces of the United States shall be deemed to be on an unpaid, authorized leave of absence.

     If, however, any member's public school service is interrupted by being activated from federal military reserve or state militia service to active service into the armed forces of the United States due to the situation known as operation "Desert Shield," during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, the member shall be considered as continuing his or her membership as though still in the employ of an employer.  This membership shall terminate in the event of death.  The necessary employee contributions as well as the employer contributions required under this chapter shall be paid by the employer based on the salary being paid at the time of entering active service incremented by either any subsequent general salary increase or negotiated salary increase upon the request of the member when returning to employment after release from active duty.  Upon receipt of the contributions the appropriate service shall be granted.

 

     Sec. 9.  RCW 41.40.170 and 1981 c 294 s 12 are each amended to read as follows:

     (1) A member, except members whose service is interrupted by being activated from federal military reserve or state militia service to active service into the armed forces of the United States due to the situation known as operation "Desert Shield," during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, who has served or shall serve on active federal service in the military or naval forces of the United States and who left or shall leave an employer to enter such service shall be deemed to be on military leave of absence if he or she has resumed or shall resume employment as an employee within one year from termination thereof.

     (2) If he or she has applied or shall apply for reinstatement of employment, within one year from termination of the military service, and is refused employment for reasons beyond his or her control, he or she shall, upon resumption of service within ten years have such service credited to him or her.

     (3) In any event, after completing twenty-five years of creditable service, any member may have his or her service in the armed forces credited to him or her as a member whether or not he or she left the employ of an employer to enter such armed service: PROVIDED, That in no instance, described in subsections (1), (2), and (3) of this section, shall military service in excess of five years be credited:  AND PROVIDED FURTHER, That in each instance the member must restore all withdrawn accumulated contributions, which restoration must be completed within five years of membership service following his or her first resumption of employment or complete twenty-five years of creditable service:  AND PROVIDED FURTHER, That this section will not apply to any individual, not a veteran within the meaning of RCW 41.04.005, as now or hereafter amended:  AND PROVIDED FURTHER, That in no instance, described in subsections (1), (2), and (3) of this section, shall military service be credited to any member who is receiving full military retirement benefits pursuant to Title 10 United States Code.

     (4) Members whose service is interrupted by being activated from federal military reserve or state militia service to active service into the armed forces of the United States due to the situation known as operation Desert Shield, during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, shall be considered as continuing his or her membership as though still in the employ of an employer.  This membership shall terminate in the event of death.  The necessary employee contributions as well as the employer contributions required under this chapter shall be paid by the employer based on the salary being paid at the time of entering active service incremented by either any subsequent general salary increase or, if appropriate, negotiated salary increase upon the request of the member when returning to employment after release from active duty.  Upon receipt of the contributions the appropriate service shall be granted.

 

     Sec. 10.  RCW 41.40.710 and 1977 ex.s. c 295 s 12 are each amended to read as follows:

     A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.40.610 through 41.40.740.

     A member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer except for such leave of absence where service credit is granted under this section because of activation from federal military reserve or state militia service to active duty in the armed forces of the United States.  Such credit may be obtained only if the member makes both the employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner:  PROVIDED, That for the purpose of this ((subsection [section])) section the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW 41.40.650.  The contributions required shall be based on the average of the member's compensation earnable at both the time the authorized leave of absence was granted and the time the member resumed employment.

     A member who is inducted into the armed forces of the United States shall be deemed to be on an unpaid, authorized leave of absence.

     Any member whose service is interrupted by being activated from federal military reserve or state militia service to active service into the armed forces of the United States due to the situation known as operation "Desert Shield," during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, shall be considered as continuing his or her membership as though still in the employ of an employer.  This membership shall terminate in the event of death.  The necessary employee contributions as well as the employer contributions required under this chapter shall be paid by the employer based on the salary being paid at the time of entering active service incremented by either any subsequent general salary increase or negotiated salary increase upon the request of the member when returning to employment after release from active duty.  Upon receipt of the contributions the appropriate service shall be granted.

 

     NEW SECTION.  Sec. 11.  A new section is added to chapter 43.43 RCW to read as follows:

     Members whose service is interrupted by being activated from federal military reserve or state militia service to active service into the armed forces of the United States due to the situation known as operation "Desert Shield," during the period from August 2, 1990, to a date specified by an agency of the federal government as the end of operation Desert Shield, shall be considered as continuing his or her membership as though still in the employ of an employer.  This membership shall terminate in the event of death.  The necessary employee contributions as well as the employer contributions required under this chapter shall be paid by the employer based on the salary being paid at the time of entering active service incremented by any subsequent general salary increase upon the request of the member when returning to employment after release from active duty.  Upon receipt of the contributions the appropriate service shall be granted.

 

     NEW SECTION.  Sec. 12.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.