1269-S AAS 4/10/91

1269-S AAS 4/10/91

SHB 1269 - S COMM AMD

By Committee on Ways & Means

Adopted 4/10/91 - Voice Vote

On page 12, after line 9, insert the following:

"Sec. 11. RCW 41.50.130 and 1987 c 490 s 1 are each amended to read as follows:

(1) The director may at any time correct errors appearing in the records of the retirement systems listed in RCW 41.50.030. Should any error in such records result in any member or beneficiary receiving more or less than he or she would have been entitled to had the records been correct, the director, subject to the conditions set forth in this section, shall adjust the payment in such a manner that the benefit to which such member or beneficiary was correctly entitled shall be paid in accordance with the following:

(a) In the case of underpayments to a member or beneficiary, the retirement system shall correct all future payments from the point of error detection, and shall compute the additional payment due for the allowable prior period which shall be paid in a lump sum by the appropriate retirement system.

(b) In the case of overpayments to a member or beneficiary, the retirement system shall adjust the payment in such a manner that the benefit to which such member or beneficiary was correctly entitled shall be reduced by an amount equal to the actuarial equivalent of the amount of overpayment. Alternatively the member shall have the option of repaying the overpayment in a lump sum within ninety days of notification and receive the proper benefit in the future. In the case of overpayments to a member or beneficiary resulting from actual fraud on the part of the member or beneficiary, the benefits shall be adjusted to reflect the full amount of such overpayment, plus interest at the maximum rate allowed under RCW 19.52.020(1) as it was in effect the first month the overpayment occurred.

(2) Except in the case of actual fraud, in the case of overpayments to a member or beneficiary, the benefits shall be adjusted to reflect only the amount of overpayments made within three years of discovery of the error, notwithstanding any provision to the contrary in chapter 4.16 RCW.

(3) Except in the case of actual fraud, the director, pursuant to rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise his or her discretion to waive, in whole or in part, the amount of any overpayment where the member or beneficiary through no fault of his or her own receives an overpayment and the amount of the overpayment is not such as to put a reasonable person on notice that an overpayment had occurred.

(4)(a) The employer shall elicit on a written form from all new employees as to their having been retired from a retirement system listed in RCW 41.50.030.

(b) In the case of overpayments which result from the failure of an employer to report properly to the department the employment of a retiree from information received in subparagraph (a), the employer shall, upon receipt of a billing from the department, pay into the appropriate retirement system the amount of the overpayment plus interest as determined by the director. However, except in the case of actual employer fraud, the overpayments charged to the employer under this subsection shall not exceed five thousand dollars for each year of overpayments received by a retiree. The retiree's benefits upon reretirement shall not be reduced because of such overpayment except as necessary to recapture contributions required for periods of employment.

(c) The provision of this subsection regarding the reduction of retirees' benefits shall apply to recovery actions commenced on or after January 1, 1986, even though the overpayments resulting from retiree employment were discovered by the department prior to that date. The provisions of this subsection regarding the billing of employers for overpayments shall apply to overpayments made after January 1, 1986.

((~~(4)~~)) (5) Except in the case of actual fraud, no monthly benefit shall be reduced by more than fifty percent of the member's or beneficiary's corrected benefit.

((~~(5)~~)) (6) Except as provided in subsection (2) of this section, obligations of employers or members until paid to the department shall constitute a debt from the employer or member to the department, recovery of which shall not be barred by laches or statutes of limitation."

Renumber the remaining sections consecutively and correct any internal references accordingly.

SHB 1269 - S COMM AMD

By Committee on Ways & Means

Adopted 4/10/91 -Voice Vote

On page 1, line 2 of the title, after "41.32.550," strike "and 41.18.015" and insert "41.18.015, and 41.50.130"

SHB 1269 - S AMD

By Senators Rasmussen, Niemi and McDonald

Adopted 4/10/91 - Voice Vote

On page 12, after line 9, insert the following:

"Sec. 11. RCW 41.40.150 and 1990 c 249 s 17 are each amended to read as follows:

Should any member die, or should the individual separate or be separated from service without leave of absence before attaining age sixty years, or should the individual become a beneficiary, except a beneficiary of an optional retirement allowance as provided by RCW 41.40.188, the individual shall thereupon cease to be a member except;

(1) As provided in RCW 41.40.170.

(2) An employee not previously retired who reenters service shall upon completion of six months of continuous service and upon the restoration, in one lump sum or in annual installments, of all withdrawn contributions with interest as computed by the director, which restoration must be completed within a total period of five years of membership service following the member's first resumption of employment, be returned to the status, either as an original member or new member which the member held at time of separation.

(3) Within the ninety days following the employee's resumption of employment, the employer shall notify the department of the resumption and the department shall then return to the employer a statement of the potential service credit to be restored, the amount of funds required for restoration, and the date when the restoration must be accomplished. The employee shall be given a copy of the statement and shall sign a copy of the statement which signed copy shall be placed in the employee's personnel file.

(4) A member who separates or has separated after having completed at least five years of service shall remain a member during the period of absence from service for the exclusive purpose of receiving a retirement allowance to begin at attainment of age sixty-five, however, such a member may on written notice to the director elect to receive a reduced retirement allowance on or after age sixty which allowance shall be the actuarial equivalent of the sum necessary to pay regular retirement benefits as of age sixty-five: PROVIDED, That if such member should withdraw all or part of the member's accumulated contributions except those additional contributions made pursuant to RCW 41.40.330(2), the individual shall thereupon cease to be a member and this section shall not apply.

(5)(a) The recipient of a retirement allowance who is employed in an eligible position other than under RCW 41.40.120(12) shall be considered to have terminated his or her retirement status and shall immediately become a member of the retirement system with the status of membership the member held as of the date of retirement. Retirement benefits shall be suspended during the period of eligible employment and the individual shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible in accordance with RCW 41.40.180: PROVIDED, That where any such right to retire is exercised to become effective before the member has rendered two uninterrupted years of service the type of retirement allowance the member had at the time of the member's previous retirement shall be reinstated;

(b) The recipient of a retirement allowance elected to office or appointed to office directly by the governor, and who shall apply for and be accepted in membership as provided in RCW 41.40.120(3) shall be considered to have terminated his or her retirement status and shall become a member of the retirement system with the status of membership the member held as of the date of retirement. Retirement benefits shall be suspended from the date of return to membership until the date when the member again retires and the member shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible in accordance with RCW 41.40.180: PROVIDED, That where any such right to retire is exercised to become effective before the member has rendered six uninterrupted months of service the type of retirement allowance the member had at the time of the member's previous retirement shall be reinstated, but no additional service credit shall be allowed: AND PROVIDED FURTHER, That if such a recipient of a retirement allowance does not elect to apply for reentry into membership as provided in RCW 41.40.120(3), the member shall be considered to remain in a retirement status and the individual's retirement benefits shall continue without interruption.

(6) Any member who leaves the employment of an employer and enters the employ of a public agency or agencies of the state of Washington, other than those within the jurisdiction of the Washington public employees' retirement system, and who establishes membership in a retirement system or a pension fund operated by such agency or agencies and who shall continue membership therein until attaining age sixty, shall remain a member for the exclusive purpose of receiving a retirement allowance without the limitation found in RCW 41.40.180(1) to begin on attainment of age sixty-five; however, such a member may on written notice to the director elect to receive a reduced retirement allowance on or after age sixty which allowance shall be the actuarial equivalent of the sum necessary to pay regular retirement benefits commencing at age sixty-five: PROVIDED, That if such member should withdraw all or part of the member's accumulated contributions except those additional contributions made pursuant to RCW 41.40.330(2), the individual shall thereupon cease to be a member and this section shall not apply."

Renumber the remaining sections consecutively and correct any internal references accordingly.

SHB 1269 - S AMD

By Senators Rasmussen, Niemi and McDonald

Adopted 4/10/91 - Voice Vote

On page 1, line 2 of the title, after "41.32.550," strike "and 41.18.015" and insert "41.18.015, and 41.40.150"

SHB 1269 - S AMD

By Senators Roach, Sutherland, Owen, Oke and Metcalf

Adopted 4/10/91 - Voice Vote

On page 12, after line 9, insert the following:

"NEW SECTION. Sec. 11. A new section is added to chapter 28A.400 RCW to read as follows:

(1) If an employee of a school district or an educational service district is activated from either federal military reserve service or state militia service to active military service due to the situation known as "Desert Shield," "Desert Storm," or any operation following from these, from August 2, 1990, to a date specified by an agency of the federal government as the end of such operation, such employee's dependents shall be entitled to the same health care and other insurance in which such employee was enrolled immediately prior to being placed on active duty. This continuation of coverage shall continue until either:

(a) The employee is either released or discharged from active duty; or

(b) Six months after the employee is killed in the line of duty unless the surviving spouse or dependent has a prior right to continue such coverage by law or contract.

(2) The premium cost, if any, of such health care and other insurance programs to the spouse and/or dependents shall be the same as the premium that would have been required of the employee had he or she remained in the employ of the school or educational service district."

"NEW SECTION. Sec. 12. A new section is added to chapter 41.04 RCW to read as follows:

(1) If an employee of the state, county, municipality, or other political subdivision is activated from either federal military reserve service or state militia service to active military service due to the situation known as "Desert Shield," "Desert Storm," or any operation following from these, from August 2, 1990, to a date specified by an agency of the federal government as the end of such operation, such employee's dependents shall be entitled to the same health care and other insurance in which such employee was enrolled immediately prior to being placed on active duty. This continuation of coverage shall continue until either:

(a) The employee is either released or discharged from active duty; or

(b) Six months after the employee is killed in the line of duty unless the surviving spouse or dependent has a prior right to continue such coverage by law or contract.

"NEW SECTION. Sec. 13. A new section is added to chapter 41.04 RCW to read as follows:

(1) A member of any of the retirement systems listed in RCW 41.50.030 or those authorized under RCW 28B.10.400 whose public service is interrupted by activation from federal military reserve or state militia service to active military service due to the situation known as "Desert Shield," "Desert Storm," or any operation following from these, from August 2, 1990, to a date specified by an agency of the federal government as the end of such operation, shall be considered as continuing his or her membership as though still in the employ of the employer.

(2) A member who qualifies under subsection (1) of this section shall receive service credit from the retirement system that he or she was a member of prior to military activation for the period of such activation if he or she:

(a) Enters employment by an employer, as defined by the respective retirement system, within one year of discharge from active service as described in subsection (1) of this section; and

(b) Applies to such employer for payment of retirement contributions to the department of retirement systems or the institution of higher education or community college under subsection (4) of this section within one year of such entering employment or one year of the effective date of this act.

(3) The employer required to pay the contributions specified in subsection (4) of this section shall be the employer of the member prior to activation.

(4) Upon receipt of an employee application under subsection (2) of this section or notification by the current employer, the responsible employer shall pay the necessary required retirement contributions to the department of retirement systems or the institution of higher education or community college. The necessary required contributions include the employee contribution as well as the employer contributions. The contributions shall be based on the salary being paid to the member at the time of entering active service incremented by either:

(a) Any subsequent general salary increase; or

(b) A negotiated salary increase.

(5) The department of retirement systems or the institution of higher education or community college shall treat the salary that the contributions are based on as compensation utilized in determining the final average salary, however it may be defined, in the normal retirement benefit or supplemental amount.

(6) Service shall be credited to the appropriate retirement system upon payment of the contributions to the member's account by the employer under this section."

Renumber the remaining sections consecutively.

SHB 1269 - S AMD

By Senators Roach, Sutherland, Owen, Oke and Metcalf

Adopted 4/10/91 - Voice Vote

On page 1, line 4 of the title, after "43.43 RCW;" insert "adding a new section to chapter 28A.400 RCW; adding new sections to chapter 41.04 RCW;"

SHB 1269 - S AMD

By Senators Saling, Bauer, Gaspard, Stratton, McDonald, Williams and Nelson

Adopted 4/10/91 - Voice Vote

On page 12, after line 9, insert the following:

"Sec. 11. 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

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-six~~)).

(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. 12. 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:

(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

(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

(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~~)).

(6) For the purposes of this section:

(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.

"NEW SECTION. Sec. 13. If specific funding for the purposes of sections 11 and 12 of this act, referencing sections 11 and 12 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 11 and 12 of this act shall be null and void."

Renumber the remaining section consecutively.

On page 12, line 10, after "Sec. 11." strike "This act is" and insert "Sections 1 through 10 of this act are"

SHB 1269 - S AMD

By Senators Saling, Bauer, Gaspard, Stratton, McDonald, Williams and Nelson

Adopted 4/10/91 - Voice Vote

On page 1, line 2 of the title, after "41.32.550," strike "and" and after "41.18.015" insert ", 41.32.575, and 41.40.325"