H-3447              _______________________________________________

                                                   HOUSE BILL NO. 1426

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Walker, Sommers, Ebersole, Taylor, Fisher, Betrozoff and Tilly

Read first time 1/14/86 and referred to Committee on Ways & Means.

AN ACT Relating to retirement systems contributions; amending RCW 41.32.775; and creating a new section.

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

NEW SECTION. Sec. 1.     It is the state's policy that public retirement for educational system employees fairly benefit those who made significant contributions.

        Sec. 2.  Section 6, chapter 293, Laws of 1977 ex. sess. as amended by section 11, chapter 184, Laws of 1984 and RCW 41.32.775 are each amended to read as follows:

          The required contribution rates to the retirement system for both members and employers shall be established by the director from time to time as may be necessary upon the advice of the state actuary:   PROVIDED, That the employer contribution shall be contributed as provided in RCW 41.32.401.

          Contribution rates required to fund the costs of the retirement system shall always be equal for members and employers, except as herein provided.  Any adjustments in contribution rates required from time to time for future costs shall likewise be shared equally by the members and employers:  PROVIDED, That the costs of amortizing the unfunded supplemental present value of the retirement system, in existence on September 30, 1977, shall be borne in full by the employers.

          Any increase in the contribution rate required as the result of a failure of an employer to make any contribution required by this section shall be borne in full by the employer not making the contribution.

          The director shall notify all employers of any pending adjustment in the required contribution rate and such increase shall be announced at least thirty days prior to the effective date of the change.

          Members contributions required by this section shall be deducted from the members earnable compensation each payroll period.  Members not receiving service credit in a given month are not required to contribute for that month.  The members contribution shall be remitted directly to the department within fifteen days following the end of the calendar month during which the payroll period ends and the employers contribution shall be remitted as provided by law.

          Until such time as the director shall establish other rates, members and employers of such members shall each contribute 5.66% of earnable compensation:  PROVIDED, That employers shall initially contribute an additional 5.80% of earnable compensation per member to amortize the unfunded supplemental present value of the retirement system in effect on September 30, 1977.