HOUSE BILL REPORT

                  SB 5510

             As Reported By House Committee on:

                       Appropriations

Title:  An act relating to Washington public employees' retirement system.

Brief Description:  Allowing for restoration of withdrawn contributions in annual installments to the Washington public employees' retirement system.

Sponsor(s):  Senators Rasmussen, Moore, Nelson, Bauer, Saling and L. Smith.

Brief History:

  Reported by House Committee on:

Appropriations, April 8, 1991, DP.

HOUSE COMMITTEE ON

APPROPRIATIONS

Majority Report: Do pass.  Signed by 25 members:  Representatives Locke, Chair; Inslee, Vice Chair; Spanel, Vice Chair; Silver, Ranking Minority Member; Morton, Assistant Ranking Minority Member; Appelwick; Belcher; Bowman; Braddock; Brekke; Dorn; Ebersole; Fuhrman; Holland; Lisk; May; Mielke; Peery; Pruitt; Rust; H. Sommers; Valle; Vance; Wang; and Wineberry.

Staff:  Karl Herzog (786-7271).

Background:  Upon cessation of service from Plan I or Plan II of the Public Employees' Retirement System, a member may withdraw his or her retirement contributions.  Withdrawal waives any right to a service or disability allowance and terminates membership in the system.

Upon resumption of employment covered by Plan I or Plan II of the Public Employees' Retirement System, a person may receive credit for past service and be returned to his or her previous status in the system upon restoration of all withdrawn contributions with interest.  The restoration must be made within five years of resumption of employment.

Summary of Bill:  Upon resumption of employment, members of Plan I of the Public Employees' Retirement System may restore previously withdrawn contributions in one lump sum or in annual installments.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill would correct an inequity in the current system.

Testimony Against:  None.

Witnesses:  David Westberg, Stationary Engineers (pro); and Paul Neal, Department of Retirement Systems (no position).