HOUSE BILL REPORT

HB 1070

BYRepresentatives Unsoeld, Belcher, Jacobsen, Cole, Lux, Nelson, Hine, P. King, Sutherland, Walk, Zellinsky, Basich, Leonard, Cooper, Patrick, Holland, Miller, May, H. Sommers, R. King, Dellwo, Rasmussen and Brough

Increasing retirement benefits for teachers who are not receiving social security benefits.

House Committe on Ways & Means/Appropriations

Majority Report:  The substitute bill be substituted and the substitute bill do pass.  (23)

      Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, L. Smith, H. Sommers, Sprenkle and B. Williams.

House Staff:Randy Acker (786-7153)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 5, 1987

BACKGROUND:

Prior to 1957 teachers were not covered by Social Security. Approximately 210 members of the Teacher's Retirement System (TRS) retired prior to becoming eligible for Social Security.  Of these, approximately 170 members have obtained some type of social security benefits, primarily in the form of survivor benefits.  Approximately 40 retired teachers receive no social security benefits.  These retirees receive an additional special TRS pension of $3 per month per year of service.

In 1986 the legislature added a provision to law requiring that the omnibus biennial operating appropriations act include an appropriation for the full amount that will be paid out during the biennium under any future cost of living adjustment (COLA).

SUMMARY:

SUBSTITUTE BILL:  Retired teachers not eligible for coverage under social security receive an additional special pension of $10 per month per year of service.

One hundred thousand dollars are appropriated to be deposited in the Teacher's Retirement Fund.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The appropriation is changed from $100,000 to $200,000.

Appropriation:    $200,000 to the Teachers' Retirement Fund.

Fiscal Note:      Requested February 25, 1987.

Effective Date:The bill contains an emergency clause and takes effect July 1, 1987.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.