HOUSE BILL REPORT

HB 1885

BYRepresentatives Hine, Silver, H. Sommers and Sayan

Making adjustments to the judicial retirement system.

House Committe on Appropriations

Majority Report:  Do pass.  (28)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Appelwick, Belcher, Bowman, Braddock, Brekke, Bristow, Brough, Dorn, Doty, Ebersole, Ferguson, Hine, May, McLean, Nealey, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:Randy Acker (786-7136)

AS PASSED HOUSE MARCH 15, 1989

BACKGROUND:

Prior to July 1, 1988 the Judicial Retirement System provided that:  1) the surviving spouse of a retired judge would lose his or her survivor benefits if he or she remarried, and 2) the benefits paid to retired judges and surviving spouses could, under some circumstances, be reduced by the amount of the earnings from private employment.  These provisions were repealed in SHB 1366, enacted by the 1988 Legislature.

The Department of Retirement Systems, based on a series of previous court cases, has removed the restrictions only for judges (and their surviving spouses) who retire after the effective date of the bill.  The general rule is that a retiree's rights and benefits are determined as of the day of retirement and are not affected by any subsequent statutory changes unless the Legislature expresses a clear intent to make a retroactive change.  Based on this, the above provisions still apply to judges and the surviving spouses of judges, who retired before July 1, 1988.

SHB 1366 also created the Judicial Retirement Account plan, under which, members contribute 2.5 percent of salary with an equal state match.  The State Investment Board is authorized to invest monies in the account.

SUMMARY:

Two provisions in the Judicial Retirement System that were repealed in 1988 shall apply on a retroactive basis.  These include:  1) the provision specifying that the surviving spouse of a retired judge would lose his or her survivor benefits if he or she remarries, and 2) the provision that benefits paid to retired judges and surviving spouses could be reduced by the amount of the earnings from private practice.

The Committee for Deferred Compensation is authorized to invest monies in the Judicial Retirement Accounts.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Mary McQueen, Administrator for the Courts.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This bill will clarify something that was intended when the legislation affecting the Judicial Retirement System was enacted in 1988.

House Committee - Testimony Against:      None Presented.