S-4384               _______________________________________________

                                                   SENATE BILL NO. 6646

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators West, Wojahn, Smith, Kreidler, Vognild, Warnke, Deccio, Talmadge and Halsan

Read first time 1/28/88 and referred to Committee on Ways & Means.

AN ACT Relating to the portability of public employment retirement benefits; amending RCW 41.54.010; and providing an effective date.

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

        Sec. 1.  Section 1, chapter 192, Laws of 1987 and RCW 41.54.010 are each amended to read as follows:

          The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

          (1)  "Actuary" means the state actuary as established under chapter 44.44 RCW.

          (2)  "Base salary" means salaries or wages earned by a member of a system during a payroll period for personal services and includes wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States internal revenue code, but shall exclude overtime payments, nonmoney maintenance compensation, and lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, any form of severance pay, any bonus for voluntary retirement, any other form of leave, or any similar lump sum payment.

          (3) "Average compensation" means, respectively, "final average salary" as defined in RCW 41.26.030, "final compensation" as defined in RCW 41.28.010 and 41.44.030(14), "average final compensation" as defined in RCW 41.32.010 and 41.40.010, "average earnable compensation" as used in RCW 41.32.498, and "average final salary" as defined in RCW 43.43.120.

          (4) "Service retirement allowance" means, respectively, "retirement allowance" as used or defined in RCW 41.26.430, 41.28.130, 41.32.010, 41.40.010, 41.44.030(22), and 43.43.260.

          (5) "Current system average final compensation" means that compensation or average compensation used in the service retirement benefit calculation of the current system with compensation being either that earned in the current system or the base salary earned in a prior system, whichever produces the greater benefit.

          (6) "Prior system average final compensation" means the compensation or average compensation used in the service retirement benefit calculation of the prior system,  with compensation being either that earned in the prior system or the base salary earned in any system in which dual membership is held, whichever produces the greater benefit.

          (7) "Compensation" means, respectively, "basic salary" as defined in RCW 41.26.030, "compensation earnable" as defined in RCW 41.28.010, "earnable compensation" as defined in RCW 41.32.010, "compensation earnable" as defined in RCW 41.40.010, "compensation earnable" as defined in RCW 41.44.030, and "average final salary" as used in RCW 43.43.120(15).

          (8) "Current system" means the system in which a member is currently making contributions and accruing service credit.

          (9) "Department" means the department of retirement systems.

          (10) "Director" means the director of retirement systems.

          (11) "Dual member" means a person who (a) is or becomes a member of a system on or after July 1, 1988, (b) has been a member of one or more other systems, and (c) has never been retired for service from a retirement system and is not receiving a disability retirement or disability leave benefit from a prior system.

          (12) "Prior system"  means a system in which a person had previous membership but is no longer making member contributions.

          (13) "Service" means the same as it may be defined in each respective system.  For the purposes of RCW 41.54.030, military service granted under RCW 41.40.170(3) or 43.43.260 may only be based on service accrued under chapter 41.40 or 43.43 RCW, respectively.

          (14) "System" means the retirement systems established pursuant to RCW 41.26.400 through 41.26.550 and under chapters 41.28, 41.32, 41.40, 41.44, and 43.43 RCW.  The inclusion of an individual first class city system is subject to the procedure set forth in RCW 41.54.060.

NEW SECTION. Sec. 2.     This act shall take effect July 1, 1988.