AN ACT Relating to post-retirement benefits; amending RCW 2.12.060, 41.40.330, 43.43.260, and 43.43.300; adding a new section to chapter 2.12 RCW; adding a new section to chapter 28B.10 RCW; adding a new section to chapter 41.32 RCW; adding a new section to chapter 41.40 RCW; adding a new section to chapter 41.50 RCW; adding a new section to chapter 43.43 RCW; providing an effective date; 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 2.12 RCW to read as follows:

Effective July 1, 1985, and each July 1 thereafter, which shall be known as the award date, the monthly benefit of each person who commenced receiving benefits for his or her service or disability at least one year before the award date, or began receiving monthly benefits under RCW 2.12.030, 2.12.035, or 2.12.037 at least one year before the award date, or who is receiving a survivor benefit based on a person who was receiving a benefit at least one year before the award date shall be permanently increased by a post-retirement adjustment. The adjustment shall be the factor determined according to section 5 of this act multiplied by the years of creditable service of the individual upon whose service the benefit is based. Any fraction of a year shall be counted in the computation of the post-retirement adjustment.

NEW SECTION. Sec. 2. A new section is added to chapter 28B.10 RCW to read as follows:

Effective July 1, 1985, and each July 1 thereafter, which shall be known as the award date, the monthly supplemental amount of each person who has been receiving a supplemental amount calculated under RCW 28B.10.400(3) for at least one year before the award date shall be permanently increased by a post-retirement adjustment calculated according to section 5 of this act, except that in the case of a designated beneficiary, the post-retirement adjustment shall be payable if the benefit of the retired person or the beneficiary had been payable for one year before the award date. The adjustment shall be the factor determined according to section 5 of this act multiplied by the years of creditable service of the individual upon whose service the benefit is based. Any fraction of a year shall be counted in the computation of the post-retirement adjustment.

NEW SECTION. Sec. 3. A new section is added to chapter 41.32 RCW to read as follows:

Effective July 1, 1985, and each July 1 thereafter, which shall be known as the award date, the monthly benefit of each person who began receiving benefits for his or her service under RCW 41.32.520 or 41.32.550 on or before July 1, 1984, or began receiving monthly benefits as a surviving beneficiary of a person who retired on or before July 1, 1984, shall be permanently increased by a post-retirement adjustment. The adjustment shall be the factor determined according to section 5 of this act multiplied by the years of creditable service of the individual upon whose service the benefit is based. Any fraction of a year shall be counted in the computation of the post-retirement adjustment. This adjustment shall be in lieu of any adjustment provided under RCW 41.32.499 as of July 1 of the year in which an award is made under this section for the affected persons. The adjustment authorized by this section shall not apply to any person authorized to receive the post-retirement adjustment provided by RCW 41.32.770.

NEW SECTION. Sec. 4. A new section is added to chapter 41.40 RCW to read as follows:

Effective July 1, 1985, and each July 1 thereafter, which shall be known as the award date, the monthly benefit of each person who began receiving benefits at least one year before the award date shall be permanently increased by a post-retirement adjustment except that in the case of a surviving beneficiary it shall also be payable if the retiree on whom the benefit is based began receiving benefits at least one year before the award date. The adjustment shall be the factor determined according to section 5 of this act multiplied by the years of creditable service of the individual upon whose service the benefit is based. Any fraction of a year shall be counted in the computation of the post-retirement adjustment. This adjustment shall be in lieu of any adjustment provided under RCW 41.40.195 as of July 1 of the year in which an award is made under this section for the affected persons. The adjustment authorized by this section shall not apply to any person authorized to receive the post-retirement adjustment provided by RCW 41.40.640.

NEW SECTION. Sec. 5. A new section is added to chapter 41.50 RCW to read as follows:

The department shall determine annually the monthly post-retirement increase factor to be used for section 1 of this act, section 2 of this act, section 3 of this act, section 4 of this act, and section 6 of this act. The factor shall be determined as follows:

(1) Determine the total years of creditable service and the total dollar amount of pensions being paid to the following beneficiaries:

(a) Those individuals receiving a benefit under chapter 41.40 RCW as of December 31 of the year preceding the year in which the increase will be paid;

(b) Those individuals receiving a benefit under chapter 41.32 RCW as of December 31 of the year preceding the year in which the increase will be paid except that those receiving a benefit under RCW 41.32.540 shall not be included;

(c) Those individuals authorized to receive a post-retirement adjustment under RCW 41.32.770 or 41.40.640 shall not be included in the calculations made under this section.

(2) The total dollar amount of pensions being paid monthly to the two groups described in subsection (1) (a) and (b) of this section shall be added together and multiplied by the increase in the average of the consumer price index, urban wage earner, for the Seattle-Everett area for the calendar year preceding the calculation over the average for the previous calendar year: PROVIDED, That the increase shall not exceed three percent. The amount so determined shall then be divided by the total years of creditable service earned by the individuals on whom the benefit is based for the two groups described in subsection (1) (a) and (b) of this section.

(3) The resulting factor shall be the increase to be applied to each eligible person's benefit.

NEW SECTION. Sec. 6. A new section is added to chapter 43.43 RCW to read as follows:

Effective July 1, 1985, and each July 1 thereafter, which shall be known as the award date, the monthly benefit of each person who began receiving retirement benefits for his or her service or based on a person who died before retirement at least one year before the award date or began receiving monthly benefits as a beneficiary of a person who began receiving monthly retirement benefits at least one year before the award date shall be permanently increased by a post-retirement adjustment. The adjustment shall be the factor determined according to section 5 of this act multiplied by the years of creditable service of the individual upon whose service the benefit is based. Any fraction of a year shall be counted in the computation of the post-retirement adjustment.

Sec. 7. Section 1, chapter 37, Laws of 1973 as amended by section 6, chapter 106, Laws of 1973 and RCW 2.12.060 are each amended to read as follows:

For the purpose of providing moneys in said judges' retirement fund, concurrent monthly deductions from judges' salaries and portions thereof payable from the state treasury and withdrawals from the general fund of the state treasury shall be made as follows: Six and one-half percent shall be deducted from the monthly salary of each justice of the supreme court, six and one-half percent shall be deducted from the monthly salary of each judge of the court of appeals, and six and one-half percent of the total salaries of each judge of the superior court shall be deducted from that portion of the salary of such justices or judges payable from the state treasury; and a sum equal to six and one-half percent of the combined salaries of the justices of the supreme court, the judges of the court of appeals, and the judges of the superior court shall be withdrawn from the general fund of the state treasury. On and after July 1, 1985, --- percent shall be deducted from the monthly salary of each justice of the supreme court, --- percent shall be deducted from the monthly salary of each judge of the court of appeals, and --- percent of the total salaries of each judge of the superior court shall be deducted from that portion of the salary of such justices or judges payable from the state treasury; and a sum equal to --- percent of the combined salaries of the justices of the supreme court, the judges of the court of appeals, and the judges of the superior court shall be withdrawn from the general fund of the state treasury. In consideration of the contributions made by the judges and justices to the judges' retirement fund, the state hereby undertakes to guarantee the solvency of said fund and the legislature shall make biennial appropriations from the general fund of amounts sufficient to guarantee the making of retirement payments as herein provided for if the money in the judges' retirement fund shall become insufficient for that purpose, but such biennial appropriation may be conditioned that sums appropriated may not be expended unless the money in the judges' retirement fund shall become insufficient to meet the retirement payments. The deductions and withdrawals herein directed shall be made on or before the tenth day of each month and shall be based on the salaries of the next preceding calendar month. The administrator for the courts shall issue warrants payable to the treasurer to accomplish the deductions and withdrawals herein directed, and shall issue the monthly salary warrants of the judges and justices for the amount of salary payable from the state treasury after such deductions have been made. The treasurer shall cash the warrants made payable to him hereunder and place the proceeds thereof in the judges' retirement fund for disbursement as authorized in this chapter.

Sec. 8. Section 34, chapter 274, Laws of 1947 as last amended by section 12, chapter 190, Laws of 1973 1st ex. sess. and RCW 41.40.330 are each amended to read as follows:

(1) Each employee who is a member of the retirement system shall contribute five percent of his total compensation earnable: PROVIDED, HOWEVER, That a department of retirement systems expense fund contribution of two dollars and fifty cents per annum shall be transferred in semiannual payments of one dollar and twenty-five cents from each employee account balance in the employees' savings fund to the retirement expense fund account, as set forth in this section. On and after July 1, 1973, each employee who is a member of the retirement system shall contribute six percent of his total compensation earnable. On and after July 1, 1985, each employee who is a member of the retirement system shall contribute --- percent of the employee's total compensation earnable. The officer responsible for making up the payroll shall deduct from the compensation of each member, on each and every payroll of such member for each and every payroll period subsequent to the date on which he became a member of the retirement system the contribution as provided by this section.

(2) Any member may, pursuant to regulations formulated from time to time by the board, provide for himself, by means of an increased rate of contribution to his account in the employees' savings fund, an increased prospective retirement allowance pursuant to RCW 41.40.190 and 41.40.185.

(3) The officer responsible for making up the payroll shall deduct from the compensation of each member covered by the provisions of RCW 41.40.190(5) and 41.40.185(4) on each and every payroll of such member for each and every payroll period subsequent to the date on which he thereafter becomes a member of the retirement system, an amount equal to seven and one-half percent of such member's compensation earnable.

Sec. 9. Section 43.43.260, chapter 8, Laws of 1965 as last amended by section 27, chapter 52, Laws of 1982 1st ex. sess. and RCW 43.43.260 are each amended to read as follows:

Upon retirement from service as provided in RCW 43.43.250, a member shall be granted a retirement allowance which shall consist of:

(1) A prior service allowance which shall be equal to two percent of the member's average final salary multiplied by the number of years of prior service rendered by the member.

(2) A current service allowance which shall be equal to two percent of the member's average final salary multiplied by the number of years of service rendered while a member of the retirement system.

(3) Any member with twenty-five years service in the Washington state patrol may have the member's service in the armed forces credited as a member whether or not the individual left the employ of the Washington state patrol to enter such armed forces: PROVIDED, That in no instance shall military service in excess of five years be credited: AND PROVIDED FURTHER, That in each instance, a member must restore all withdrawn accumulated contributions, which restoration must be completed on the date of the member's retirement, or within five years of membership service following the member's first resumption of employment, whichever occurs first: AND PROVIDED FURTHER, That this section shall not apply to any individual, not a veteran within the meaning of RCW 41.06.150, as now or hereafter amended: AND PROVIDED FURTHER, That in no instance shall military service be credited to any member who is receiving full military retirement benefits pursuant to Title 10 United States Code, as now or hereafter amended.

(4) In no event shall the total retirement benefits from subsections (1), (2), and (3) of this section, of any member exceed seventy-five percent of the member's average final salary.

(((5) A yearly increase in retirement allowance which shall amount to two percent of the retirement allowance computed at the time of retirement. This yearly increase shall be added to the retirement allowance on July 1st of each calendar year.

~~The provisions of this section shall apply to all members presently retired and to all members who shall retire in the future.~~))

Sec. 10. Section 43.43.300, chapter 8, Laws of 1965 and RCW 43.43.300 are each amended to read as follows:

Beginning on July 1, 1963, every Washington state patrol employee who is a member of the retirement fund shall contribute seven percent of his monthly salary, which shall be deducted from the compensation of each member on each and every payroll. On and after July 1, 1985, every Washington state patrol employee who is a member of the retirement fund shall contribute --- percent of the employee's monthly salary, which shall be deducted from the compensation of each member on each and every payroll.

In event a member severs his connection with the Washington state patrol or is dismissed, the amount paid by the state of Washington shall remain in the retirement fund.

NEW SECTION. Sec. 11. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985.