SENATE BILL REPORT

SB 5430

BYSenator Kreidler

Adding provisions regarding the state retirement systems.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 3, 1989; March 6, 1989

Majority Report:  That Substitute Senate Bill No. 5430 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Matson, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Charles Langen (786-7715)

                  March 8, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 6, 1989

BACKGROUND:

A member of the Public Employees' Retirement System (PERS), first employed prior to October 1, 1977, who becomes totally and permanently incapacitated due to a non-duty related cause may retire.  Either the member or the member's employer must make application for such non-duty disability retirement.  The disability retirement is not effective until the medical advisor to the Department of Retirement Systems (DRS) and the director, DRS, concur in the incapacity.  Similar provisions are made for those members of PERS who were first employed on or after October 1, 1977.

When an employee first becomes a member of PERS, a formal statement of the provisions of the retirement system are given together with other orientational material.  Following a budgetary mandate and appropriation by the Legislature, the department distributes a quarterly publication for both active and retired members of PERS and other retirement systems of the state.

SUMMARY:

If a member of PERS, such member's employer or a representative of the member applies to DRS for the forms necessary to initiate the application process for non-duty disability retirement and the member dies prior to the completion of the determination process, such process shall be deemed to be complete and approved prior to the death of the member.

The department is to prepare publication of clear and easily understood descriptions of the individual retirement system benefits, procedural steps necessary in obtaining benefits, and funding, including the member's accrual of interest, for PERS, Teachers' Retirement System, Law Enforcement Officers' and Fire Fighters' Retirement System, Washington State Patrol Retirement System, the Judicial Retirement System and the Judges' Retirement System.  These publications shall be distributed to each member with the cooperation of the employer.  The first publication is to address disability benefits.

EFFECT OF PROPOSED SUBSTITUTE:

The revision to the disability process shall apply to PERS II only.  Also, provision is made for the inclusion of the Statewide City Employees' Retirement Systems under the portability benefit and for a member of the Seattle Police Relief and Pension System to transfer service credit to PERS if the member has never belonged to LEOFF and requests transfer of the service prior to October 1, 1989.

Appropriation:    $50,000 from the retirement systems' expense fund.

Revenue:    none

Fiscal Note:      requested January 27, 1989

Senate Committee - Testified: George Volker (pro); Jerry Allard, State Actuary