S-791                 _______________________________________________

                                                   SENATE BILL NO. 4279

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Metcalf and Vognild

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

AN ACT Relating to labor; and adding a new section to chapter 49.64 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 49.64 RCW to read as follows:

          Upon termination of employment of any employee before retirement, the employee's accumulated contributions to a retirement or pension plan shall:

          (1) Be transferred to the retirement or pension plan of the new employer, if any;

          (2) Be deposited in an individual retirement account by the employee; or

          (3) Be deposited by the director of retirement systems in a retirement account in the name of the employee in a special state fund hereby created in the custody of the state treasurer for the segregation of individual retirement accounts established under this section.  These accounts shall be managed in accordance with the laws regulating the administration and investment of individual retirement accounts.  Disbursements from the fund shall be on authorization of the director of retirement systems.  No appropriation is required for disbursements from the fund.

NEW SECTION. Sec. 2.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.