1268-S AAS 4/16/91
SHB 1268 - S AMD
By Senators Gaspard and von Reichbauer
Adopted 4/16/91 - Voice Vote
On page 13, after line 11, insert the following:
"Sec. 5. RCW 41.32.260 and 1974 ex.s. c 199 s 2 are each amended to read as follows:
(1)(a)
Any member whose public school service is interrupted by active service to ((the
United States as a member of its military, naval or air service, or to))
the state of Washington, as a member of the legislature, may upon becoming
reemployed in the public schools, receive credit for such service upon
presenting satisfactory proof, and contributing to the annuity fund, either in
a lump sum or installments, such amounts as shall be determined by the ((board
of trustees: PROVIDED (1), That no such military service credit in excess of
five years shall be established or reestablished after July 1, 1961, unless the
service was actually rendered during time of war: PROVIDED FURTHER (2), That))
director.
(b)
A member of the retirement system who is a member of the state legislature
or a state official eligible for the combined pension and annuity provided by
RCW 41.32.497, or 41.32.498, as now or hereafter amended shall have deductions
taken from his or her salary in the amount of seven and one-half percent
of earnable compensation and that service credit shall be established with the
retirement system while such deductions are reported to the retirement system,
unless he or she has by reason of his or her employment become a
contributing member of another public retirement system in the state of
Washington((: AND PROVIDED FURTHER (3), That)).
(c)
Such elected official who has retired or otherwise terminated his or her
public school service may then elect to terminate his or her membership
in the retirement system and receive retirement benefits while continuing to
serve as an elected official((: AND, PROVIDED FURTHER (4), That)).
(d) A member of the retirement system who had previous service as an elected or appointed official, for which he or she did not contribute to the retirement system, may receive credit for such legislative service unless he or she has received credit for that service in another state retirement system, upon making contributions in such amounts as shall be determined by the board of trustees.
(2)(a) Any member whose public school service is interrupted by active service to the United States as a member of its military, naval, or air service, may upon becoming reemployed in the public schools, receive credit for such service upon presenting satisfactory proof: PROVIDED, That no such military service credit in excess of five years shall be established or reestablished after July 1, 1961, unless the service was actually rendered during time of war.
(b) After completing twenty-five years of creditable service, any member may have the member's service in the armed forces credited to the member if the service was prior to membership, but in no instance shall such military service in excess of five years be credited. This subsection (2)(b) does not apply to any individual who is not a veteran within the meaning of RCW 41.04.005. Military service shall not be credited to any member who is receiving full military retirement benefits pursuant to Title 10 of the United States Code."
Renumber the remaining sections consecutively and correct any internal references accordingly.
SHB 1268 - S AMD
By Senators Wojahn, Rasmussen and Roach
Adopted 4/16/91 - Voice Vote
On page 33, line 1, strike all of subsection (6) and insert the following:
"(6)(a)
"Surviving spouse" for persons who establish membership in the
retirement system on or before September 30, 1977, means the surviving
widow or widower of a member((. The word shall not include the divorced
spouse of a member)) or an ex-spouse who has been provided benefits
under any court decree of dissolution or legal separation or in any court order
or court approved property settlement agreement incident to any court decree of
dissolution or legal separation. In order to qualify as a surviving spouse
under this subsection: (i) A person shall have been married to the member for
at least one year prior to the member's retirement or separation from service
if a vested member; (ii) the decree or court order must be currently effective;
and (iii) the decree or court order must have been entered after the member's
retirement and prior to December 31, 1979. If two or more persons are eligible
as surviving spouses under this subsection, benefits shall be divided between
the surviving spouses based on the percentage of total service credit the
member accrued during each marriage. This definition shall apply retroactively.
(b) "Surviving spouse" for persons who establish membership in the retirement system on or after October 1, 1977, means the surviving widow or widower of a member and does not include the divorced spouse of a member."
SHB 1268 - S Amd
By Senators Rasmussen and Saling
Adopted 4/16/91 - Voice Vote
On page 46, after line 18, insert the following:
"Sec. 18. RCW 41.32.575 and 1989 c 272 s 3 are each amended to read as follows:
(1)
Beginning July 1, ((1989)) 1991, and every year thereafter, the
department shall determine the following information for each retired member or
beneficiary who is over the age of sixty-five:
(a) The
dollar amount of the retirement allowance received by the retiree at the
benefit age ((sixty-five)), to be known for the purposes of this
section as the "((age sixty-five)) benefit age retirement
allowance";
(b) The
index for the calendar year prior to the year that the retiree reached the
benefit age ((sixty-five)), to be known for purposes of this section
as "index A";
(c) The index for the calendar year prior to the date of determination, to be known for purposes of this section as "index B";
(d) The ratio obtained when index B is divided by index A, to be known for the purposes of this section as the "full purchasing power ratio"; and
(e) The
value obtained when the retiree's ((age sixty-five)) benefit age
retirement allowance is multiplied by ((sixty percent)) the
applicable percentage of the retiree's full purchasing power ratio, to be
known for the purposes of this section as the "target benefit."
(2)
Beginning with the July payment, the retiree's ((age sixty-five)) benefit
age retirement allowance shall be adjusted to be equal to the retiree's
target benefit. In no event, however, shall the adjusted allowance:
(a) Be
smaller than the retirement allowance received without the adjustment; ((nor))
(b) Differ from the previous year's allowance by more than three percent; or
(c) Be paid before the retiree is age sixty-six.
No adjustment shall be made if the benefit age retirement allowance is greater than three hundred percent of the poverty income level for a family of two as published annually by the United States department of health and human services.
(3) For
members who retire after the benefit age ((sixty-five)), the ((age
sixty-five)) benefit age retirement allowance shall be the initial
retirement allowance received by the member.
(4) For
beneficiaries of members who die prior to the benefit age ((sixty-five)):
(a) The ((age sixty-five)) benefit age retirement allowance shall
be the allowance received by the beneficiary on the date the member would have
turned the benefit age ((sixty-five)); and (b) index A shall be
the index for the calendar year prior to the year the member would have turned the
benefit age ((sixty-five)).
(5) Where the pension payable to a beneficiary was adjusted at the time the benefit commenced, the benefit provided by this section shall be adjusted in a manner consistent with the adjustment made to the beneficiary's pension.
(6) For the purposes of this section:
(a) "Index" means, for any calendar year, that year's average consumer price index‑-Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor;
(b) "Retired member" or "retiree" means any member who has retired for service or because of duty or nonduty disability, or the surviving beneficiary of such a member.
(7) The benefit age and the applicable percentage shall be determined by the state actuary using the funds appropriated for this purpose in each biennial omnibus appropriations act until the target levels established in this subsection are achieved. The benefit age shall be initially set at sixty-five, and the applicable percent shall be initially set at sixty percent. Each year, as available funds permit, the state actuary shall reduce the benefit age from age sixty-five to the age at retirement. After the benefit age has been adjusted to the age at retirement, the state actuary shall, as available funds permit, increase the applicable percentage on an incremental basis from sixty percent to seventy percent."
"Sec. 19. RCW 41.40.325 and 1989 c 272 s 2 are each amended to read as follows:
(1)
Beginning July 1, ((1989)) 1991, and every year thereafter, the
department shall determine the following information for each retired member or
beneficiary who is over the age of sixty-five:
(a)
The dollar amount of the retirement allowance received by the retiree at the
benefit age ((sixty-five)), to be known for the purposes of this
section as the "((age sixty-five)) benefit age retirement
allowance";
(b)
The index for the calendar year prior to the year that the retiree reached the
benefit age ((sixty-five)), to be known for purposes of this section
as "index A";
(c) The index for the calendar year prior to the date of determination, to be known for purposes of this section as "index B";
(d) The ratio obtained when index B is divided by index A, to be known for the purposes of this section as the "full purchasing power ratio"; and
(e)
The value obtained when the retiree's ((age sixty-five)) benefit age
retirement allowance is multiplied by ((sixty percent)) the
applicable percentage of the retiree's full purchasing power ratio, to be
known for the purposes of this section as the "target benefit."
(2)
Beginning with the July payment, the retiree's ((age sixty-five)) benefit
age retirement allowance shall be adjusted to be equal to the retiree's
target benefit. In no event, however, shall the adjusted allowance:
(a)
Be smaller than the retirement allowance received without the adjustment; ((nor))
(b) Differ from the previous year's allowance by more than three percent; or
(c) Be paid before the retiree is age sixty-six.
No adjustment shall be made if the benefit age retirement allowance is greater than three hundred percent of the poverty income level for a family of two as published annually by the United States department of health and human services.
(3)
For members who retire after the benefit age ((sixty-five)), the
((age sixty-five)) initial retirement allowance shall be the
initial retirement allowance received by the member.
(4)
For beneficiaries of members who die prior to the benefit age ((sixty-five)):
(a) The ((age sixty-five)) initial retirement allowance shall be
the allowance received by the beneficiary on the date the member would have
turned the benefit age ((sixty-five)); and (b) index A shall be
the index for the calendar year prior to the year the member would have turned the
benefit age ((sixty-five)).
(5) Where the pension payable to a beneficiary was adjusted at the time the benefit commenced, the benefit provided by this section shall be adjusted in a manner consistent with the adjustment made to the beneficiary's pension.
(6) For the purposes of this section:
(a) "Index" means, for any calendar year, that year's average consumer price index‑-Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor;
(b) "Retired member" or "retiree" means any member who has retired for service or because of duty or nonduty disability, or the surviving beneficiary of such a member.
(7) The benefit age and the applicable percentage shall be determined by the state actuary using the funds appropriated for this purpose in each biennial omnibus appropriations act until the target levels established in this subsection are achieved. The benefit age shall be initially set at sixty-five, and the applicable percent shall be initially set at sixty percent. Each year, as available funds permit, the state actuary shall reduce the benefit age from age sixty-five to the age at retirement. After the benefit age has been adjusted to the age at retirement, the state actuary shall, as available funds permit, increase the applicable percentage on an incremental basis from sixty percent to seventy percent."
Renumber remaining sections consecutively.
SHB 1268 - S AMD
By Senators Gaspard and von Reichbauer
Adopted 4/16/91 - Voice Vote
On page 1, line 2 of the title, after "41.32.013," insert "41.32.260,"
SHB 1268 - S Amd
By Senators Rasmussen and Saling
Adopted 4/16/91 - Voice Vote
On page 1, line 2 of the title, after "41.32.013," insert "41.32.575,"
On page 1, line 3 of the title, after "41.40.235," insert "41.40.325,"