6286-S AMS SALI S4702.1

SSB 6286 - S AMD TO S AMD (S-4703.1/92)

By Senators Saling and Bauer

                               RULED BEYOND SCOPE & OBJECT 3/12/92

    On page 1, after line 20, insert the following:

    "Sec. 2  RCW 41.32.575 and 1989 c 272 s 3 are each amended to read as follows:

    (1) Beginning July 1, ((1989)) 1992, 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-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, but no lower than age fifty-five.  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. 2  RCW 41.40.325 and 1989 c 272 s 2 are each amended to read as follows:

    (1) Beginning July 1, ((1989)) 1992, 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, but no lower than age fifty-five.  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."

    "NEW SECTION. Sec. ....       The sum of twenty million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of retirement systems for the purposes of sections 2 and 3 of this act."

SSB 6286 - S AMD TO S AMD (S-4703.1/92)

By Senators Saling and Bauer

                             RULED BEYOND SCOPE AND OBJECT 3/12/92

    On page 1, line 2, after "RCW" insert "41.32.575, 41.40.325, and"