S-1837.1 _______________________________________________
SUBSTITUTE SENATE BILL 5032 - CC
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State of Washington 56th Legislature 1999 Regular Session
By Senate Committee on Ways & Means (originally sponsored by Senators Fraser, Winsley, Long, Jacobsen, Bauer, Franklin, Roach, Kline and Rasmussen; by request of Joint Committee on Pension Policy)
Read first time 02/25/1999.
AN ACT Relating to certain retirement system members with more than thirty years of service; adding a new section to chapter 41.32 RCW; and adding a new section to chapter 41.40 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan 1" to read as follows:
A member may make the irrevocable election under this section no later than six months after attaining thirty years of service. The election shall become effective at the beginning of the calendar month following department receipt of employee notification.
(1) The sum of future member contributions plus seven and one-half percent interest shall be paid to the member at retirement without a reduction in the member's monthly retirement benefit as determined under RCW 41.32.498. The level of interest credited to member contributions is not provided as a matter of contractual right and may be changed by the legislature.
(2) Upon retirement, the member's benefit shall be calculated using only the earnable compensation credited prior to the effective date of the member's election. Calculation of the member's average earnable compensation shall include eligible cash-outs of annual leave based on the member's salary and leave accumulations at the time of retirement, except that the amount of a member's average earnable compensation cannot be higher than if the member had not taken advantage of the election offered under this section.
(3) Members who have already earned thirty years of service credit prior to the effective date of this act may participate in the election by notifying the department in writing of their intention by December 31, 1999.
The department shall continue to collect employer contributions as required in RCW 41.45.060.
NEW SECTION. Sec. 2. A new section is added to chapter 41.40 RCW under the subchapter heading "Plan 1" to read as follows:
A member may make the irrevocable election under this section no later than six months after attaining thirty years of service. The election shall become effective at the beginning of the calendar month following department receipt of employee notification.
(1) The sum of future member contributions plus seven and one-half percent interest shall be paid to the member at retirement without a reduction in the member's monthly retirement benefit as determined under RCW 41.40.185. The level of interest credited to member contributions is not provided as a matter of contractual right and may be changed by the legislature.
(2) Upon retirement, the member's benefit shall be calculated using only the earnable compensation credited prior to the effective date of the member's election. Calculation of the member's average final compensation shall include eligible cash-outs of sick and annual leave based on the member's salary and leave accumulations at the time of retirement, except that the amount of a member's average final compensation cannot be higher than if the member had not taken advantage of the election offered under this section.
(3) Members who have already earned thirty years of service credit prior to the effective date of this act may participate in the election by notifying the department in writing of their intention by December 31, 1999.
The department shall continue to collect employer contributions as required in RCW 41.45.060.
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