CERTIFICATION OF ENROLLMENT
SENATE BILL 5350
Chapter 189, Laws of 2019
66TH LEGISLATURE
2019 REGULAR SESSION
PUBLIC RETIREMENT SYSTEMS--OPTIONAL LIFE ANNUITY BENEFIT
EFFECTIVE DATE: January 1, 2020
Passed by the Senate March 7, 2019
  Yeas 48  Nays 0
KAREN KEISER

President of the Senate
Passed by the House April 17, 2019
  Yeas 89  Nays 9
FRANK CHOPP

Speaker of the House of Representatives
CERTIFICATE
I, Brad Hendrickson, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5350 as passed by Senate and the House of Representatives on the dates hereon set forth.
BRAD HENDRICKSON

Secretary
Secretary
Approved April 29, 2019 3:10 PM
FILED
April 30, 2019
JAY INSLEE

Governor of the State of Washington
Secretary of State
State of Washington

SENATE BILL 5350

Passed Legislature - 2019 Regular Session
State of Washington
66th Legislature
2019 Regular Session
BySenators Conway, Bailey, and Schoesler; by request of Select Committee on Pension Policy
AN ACT Relating to an optional life annuity benefit for members of the public employees' retirement system, school employees' retirement system, and public safety employees' retirement system; adding a new section to chapter 41.40 RCW; adding a new section to chapter 41.37 RCW; adding a new section to chapter 41.35 RCW; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION.  Sec. 1. A new section is added to chapter 41.40 RCW to read as follows:
(1) At the time of retirement, a plan 1 member may purchase an optional actuarially equivalent life annuity benefit from the public employees' retirement system plan 1 fund established in RCW 41.50.075. A minimum payment of five thousand dollars is required.
(2) At the time of retirement, a plan 2 or plan 3 member may purchase an optional actuarially equivalent life annuity benefit from the public employees' retirement system combined plan 2 and plan 3 fund established in RCW 41.50.075. A minimum payment of five thousand dollars is required.
(3) Subject to rules adopted by the department, a member purchasing an annuity under this section must pay all of the cost with an eligible rollover, direct rollover, or trustee-to-trustee transfer from an eligible retirement plan.
(a) The department shall adopt rules to ensure that all eligible rollovers and transfers comply with the requirements of the internal revenue code and regulations adopted by the internal revenue service. The rules adopted by the department may condition the acceptance of a rollover or transfer from another plan on the receipt of information necessary to enable the department to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.
(b) For the purposes of this subsection (3), "eligible retirement plan" means a tax qualified plan offered by a governmental employer.
(4) The legislature reserves the right to amend or repeal this section in the future.
NEW SECTION.  Sec. 2. A new section is added to chapter 41.37 RCW to read as follows:
(1) At the time of retirement, a plan 2 member may purchase an optional actuarially equivalent life annuity benefit from the public safety employees' retirement system plan 2 fund established in RCW 41.50.075. A minimum payment of five thousand dollars is required.
(2) Subject to rules adopted by the department, a member purchasing an annuity under this section must pay all of the cost with an eligible rollover, direct rollover, or trustee-to-trustee transfer from an eligible retirement plan.
(a) The department shall adopt rules to ensure that all eligible rollovers and transfers comply with the requirements of the internal revenue code and regulations adopted by the internal revenue service. The rules adopted by the department may condition the acceptance of a rollover or transfer from another plan on the receipt of information necessary to enable the department to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.
(b) For the purposes of this subsection (2), "eligible retirement plan" means a tax qualified plan offered by a governmental employer.
(3) The legislature reserves the right to amend or repeal this section in the future.
NEW SECTION.  Sec. 3. A new section is added to chapter 41.35 RCW to read as follows:
(1) At the time of retirement, a plan 2 or plan 3 member may purchase an optional actuarially equivalent life annuity benefit from the school employees' retirement system combined plan 2 and 3 fund established in RCW 41.50.075. A minimum payment of five thousand dollars is required.
(2) Subject to rules adopted by the department, a member purchasing an annuity under this section must pay all of the cost with an eligible rollover, direct rollover, or trustee-to-trustee transfer from an eligible retirement plan.
(a) The department shall adopt rules to ensure that all eligible rollovers and transfers comply with the requirements of the internal revenue code and regulations adopted by the internal revenue service. The rules adopted by the department may condition the acceptance of a rollover or transfer from another plan on the receipt of information necessary to enable the department to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.
(b) For the purposes of this subsection (2), "eligible retirement plan" means a tax qualified plan offered by a governmental employer.
(3) The legislature reserves the right to amend or repeal this section in the future.
NEW SECTION.  Sec. 4. This act takes effect January 1, 2020.
Passed by the Senate March 7, 2019.
Passed by the House April 17, 2019.
Approved by the Governor April 29, 2019.
Filed in Office of Secretary of State April 30, 2019.
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