S-745                 _______________________________________________

                                                   SENATE BILL NO. 4148

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Owen, Warnke, Patterson and Barr

Read first time 2/8/85 and referred to Committee on Ways and Means.

AN ACT Relating to teachers' retirement; and adding a new section to chapter 41.32 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 41.32 RCW to read as follows:

          (1) The following definitions shall apply to this section only:

          (a) "Superintendent" means the chief academic and administrative official of a school district or educational service district in the state of Washington.

          (b) "Common schools" has the meaning defined in RCW 28A.01.060.

          (c) "Out-of-state service" means service recorded to one's individual state retirement account from one or more public retirement systems outside the state of Washington.

          (2) A superintendent, before retirement, may elect in writing to establish service credit in the retirement system for out-of-state service, subject to the following conditions:

          (a) Service credit may be established on a basis of one year of out-of-state credit for each year of in-state service credit as a superintendent.  Transfer of credit and agreement of payment shall be in writing and shall include an unconditional agreement to pay the cost of any benefit resulting from the additional service credit as determined by the department within thirty days of the receipt of the billing.  Accounts unsettled within thirty days of the receipt of the billing shall be assessed an interest penalty of one percent of the amount due for each month or fraction thereof beyond the original thirty-day period.

          (b) No out-of-state service shall be creditable if the same service is held for credit in any other retirement system.

          (c) Such credited service shall be included in the superintendent's pension benefit calculation as follows:

          (i) It shall be included in the benefit calculation on the same basis as in-state service.  It shall not be used to exceed any applicable maximum benefit limits.

          (ii) It shall be included in the benefit calculation only following payment to the retirement system of the actuarially determined present value of the increased benefit.  Such payment shall be made by the superintendent or by the local school district if agreed to in writing by the local district.  Before agreeing to pay any portion of the cost to establish this credit, a school district or educational service district shall obtain a fiscal note covering the cost from the state actuary as provided by chapter 44.44 RCW.

          (3) The cancellation of any service credit established under this section shall impose no liability on the retirement system, except to refund any moneys received pursuant to this section to the individual or school district that made the payment.