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SUBSTITUTE HOUSE BILL NO. 378
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C 306 L 86
State of Washington 49th Legislature 1985 Regular Session
By House Committee on Ways & Means (originally sponsored by Representatives Sommers, Tilly, Wang, B. Williams, Grimm, Braddock, Patrick, Silver, Winsley, Basich, Miller, Isaacson and Brekke)
Read first time 3/4/85 and passed to Committee on Rules.
AN ACT Relating to postretirement cost of living adjustments; amending RCW 41.32.485 and 41.40.198; adding a new section to chapter 43.88 RCW; making an appropriation; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 43.88 RCW to read as follows:
The omnibus biennial operating appropriations act shall include an appropriation for the full amount that will be paid out during the biennium under any postretirement cost-of-living adjustment adopted after the effective date of this act.
Sec. 2. Section 2, chapter 96, Laws of 1979 ex. sess. and RCW 41.32.485 are each amended to read as follows:
(1)
Notwithstanding any provision of law to the contrary, effective July 1, ((1979))
1986, as a cost-of-living adjustment, no beneficiary receiving a
retirement allowance pursuant to this chapter shall receive, as the pension
portion of that retirement allowance, less than ((ten)) thirteen
dollars per month for each year of service creditable to the person whose
service is the basis of the pension. Portions of a year shall be treated as fractions
of a year and the decimal equivalent shall be multiplied by ((ten)) thirteen
dollars. Where the pension payable was adjusted at the time benefit payments
to the beneficiary commenced, the minimum pension provided in this section
shall be adjusted in a manner consistent with that adjustment.
(2) Notwithstanding any provision of law to the contrary, effective July 1, 1979, the retirement allowance of each beneficiary who either is receiving benefits pursuant to RCW 41.32.520 or 41.32.550 as of December 31, 1978, or commenced receiving a monthly retirement allowance under this chapter as of a date no later than July 1, 1974, shall be permanently increased by a post-retirement adjustment. This adjustment shall be in lieu of any adjustments provided under RCW 41.32.499(6) as of July 1, 1979, or July 1, 1980, for the affected beneficiaries. Such adjustment shall be calculated as follows:
(a) Retirement allowances to which this subsection and subsection (1) of this section are both applicable shall be determined by first applying subsection (1) and then applying this subsection. The department shall determine the total years of creditable service and the total dollar benefit base accrued as of December 31, 1978, except that this determination shall take into account only those beneficiaries to whom this subsection applies;
(b) The department shall multiply the total benefits determined in (a) of this subsection by six percent and divide the dollar value thus determined by the total service determined in (a) of this subsection. The resultant figure shall then be a post-retirement increase factor which shall be applied as specified in (c) of this subsection;
(c) Each beneficiary to whom this subsection applies shall receive an increase which is the product of the factor determined in (b) of this subsection multiplied by the years of creditable service.
(3) The provisions of subsections (1) and (2) of this section shall not be applicable to those receiving benefits pursuant to RCW 41.32.540 or 41.32.760 through 41.32.825.
Sec. 3. Section 1, chapter 96, Laws of 1979 ex. sess. and RCW 41.40.198 are each amended to read as follows:
(1)
Notwithstanding any provision of law to the contrary, effective July 1, ((1979))
1986, as a cost-of-living adjustment, no beneficiary receiving a retirement
allowance pursuant to this chapter shall receive, as the pension portion of
that retirement allowance, less than ((ten)) thirteen dollars per
month for each year of service creditable to the person whose service is the
basis of the pension. Portions of a year shall be treated as fractions of a
year and the decimal equivalent shall be multiplied by ((ten)) thirteen
dollars. Where the pension payable was adjusted at the time benefit payments
to the beneficiary commenced, the minimum pension provided in this section
shall be adjusted in a manner consistent with that adjustment.
(2) The provisions of subsection (1) of this section shall not be applicable to those receiving benefits pursuant to RCW 41.40.220(1), 41.44.170(5), or 41.40.610 through 41.40.740. For persons who served as elected officials and whose accumulated employee contributions and credited interest was less than seven hundred fifty dollars at the time of retirement, the minimum benefit under subsection (1) of this section shall be ten dollars per month for each year of creditable service.
NEW SECTION. Sec. 4. There is appropriated five million three hundred thousand dollars, or so much thereof as may be necessary, from the general fund for the purposes of paying the cost-of-living adjustments provided in sections 2 and 3 of this 1986 act. Of this amount, two million dollars shall be deposited in the teachers' retirement fund and three million three hundred thousand dollars shall be deposited in the public employees' retirement fund.
NEW SECTION. Sec. 5. This act shall take effect on July 1, 1986.