SENATE BILL REPORT

                   SB 5987

               As Passed Senate, March 12, 1999

Title:  An act relating to the withdrawal of accumulated contributions under the law enforcement officers' and fire fighters' retirement system.

Brief Description:  Withdrawing accumulated contributions under the law enforcement officers' and fire fighters' retirement system.

Sponsors:  Senators Goings, Benton, Bauer, Hochstatter, Costa, Gardner and Rasmussen.

Brief History:

Committee Activity:  Ways & Means:  2/23/99, 2/25/99 [DP].

Passed Senate, 3/12/99, 46-0.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass.

  Signed by Senators Loveland, Chair; Bauer, Vice Chair; Brown, Vice Chair; Fairley, Honeyford, Kline, Kohl-Welles, Rasmussen, Rossi, B. Sheldon, Snyder, Spanel, Thibaudeau, Winsley, Wojahn, Zarelli.

Staff:  Pete Cutler (786-7454)

Background:  Members of the Law Enforcement Officers and Fire Fighters= Retirement System, Plan 2 (LEOFF 2) who become totally incapacitated for continued employment are eligible to receive a disability retirement allowance.  The allowance is canceled if the member recovers from the disability and is no longer entitled to workers= compensation benefits.  The statute also provides that a member who has recovered from a disability shall be restored to duty.

LEOFF 2 members are entitled to a refund of their accumulated member contributions if they cease to be an employee of a LEOFF employer, except by service or disability retirement.  A LEOFF 2 member who leaves employment due to a disability retirement, but is not re-employed upon recovery from the disability, is not able to receive a refund of the difference between the disability payments received and the member=s total accumulated contributions.

Summary of Bill:  If the disability retirement allowance of a LEOFF 2 member is canceled for any reason other than the member=s re-entry into employment or retirement for service, the member must be paid the excess, if any, of the member=s accumulated contributions over all previous LEOFF 2 payments.  The bill applies to any LEOFF 2 member who received a disability allowance after February 1, 1990.

Appropriation:  None.

Fiscal Note:  Requested on February 22, 1999.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  LEOFF 2 members who recover from a disability but do not return to LEOFF employment should be able to withdraw their member contributions, reduced by whatever disability payments they received.

Testimony Against:  None.

Testified:  Jim Rudd, WSCFF (pro).