SENATE BILL REPORT

SB 5696

BYSenators Johnson and Moore; by request of Department of Retirement Systems

Providing for disposition of excess retirement benefits upon death of the recipient.

Senate Committee on Ways & Means

Senate Hearing Date(s):

Senate Staff:Charles Langen (786-7715)

AS OF FEBRUARY 9, 1989

BACKGROUND:

An eligible member of the Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF II), Public Employees' Retirement System (PERS II) or Teachers' Retirement System (TRS II), first employed on or after October 1, 1977, who is totally incapacitated for further employment is provided with a disability retirement benefit.  If, however, such member dies prior to the full disbursement of the member's contributions, nothing is due the member's beneficiaries or estate.

SUMMARY:

If an eligible member of LEOFF II, PERS II or TRS II dies while on disability retirement before the total of the allowance paid to the recipient equals the amount of the accumulated contributions at the time of retirement, the balance shall be paid to the person or persons having an insurable interest who was previously designated by the member.  If there are no designated person or persons still living, the balance is paid to the surviving spouse, or, if no spouse, to the member's legal representative.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 6, 1989

Effective Date:The bill contains an emergency clause and takes effect immediately.