HOUSE BILL REPORT

                     ESHB 2985

                           As Passed Legislature

Title:  An act relating to establishing pension credit for law enforcement officers and fire fighters who qualified under a prior pension system.

Brief Description:  Allowing certain law enforcement officers and fire fighters pension credit for past service.

Sponsor(s):  By House Committee on Appropriations (originally sponsored by Representatives Basich, Jones, Hargrove, Sheldon, Riley and Paris).

Brief History:

   Reported by House Committee on:

Appropriations, February 10, 1992, DPS;

Passed House, February 18, 1992, 98-0;

Amended by Senate;

Passed Legislature.

HOUSE COMMITTEE ON

APPROPRIATIONS

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 28 members:  Representatives Locke, Chair; Inslee, Vice Chair; Spanel, Vice Chair; Silver, Ranking Minority Member; Morton, Assistant Ranking Minority Member; Appelwick; Belcher; Bowman; Braddock; Brekke; Carlson; Dorn; Ebersole; Fuhrman; Hine; Lisk; May; Mielke; Nealey; Peery; Pruitt; Rust; D. Sommers; H. Sommers; Sprenkle; Valle; Vance; and Wang.

Staff:  Barbara McLain (786-7153).

Background:  When the Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) was created in 1970, members' employment service under prior retirement systems was transferred to the LEOFF system.  In addition, a five-year window, to March 1975, was created for members to restore contributions that they had withdrawn from the prior retirement system so they could receive service credit for that prior service.  A similar window was created for members who had been employed as police officers or fire fighters under a prior system, but were not yet members of the system when LEOFF was created and therefore never had the opportunity to receive credit for that service.  There has never been an additional open window period to restore contributions in LEOFF.

Summary of Bill:  Members of Plan I of the Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) who cannot receive service credit for service under a pre-LEOFF retirement system because they withdrew their contributions under the pre-LEOFF system, have until June 30, 1993, to restore the contributions, with interest, and receive service credit under LEOFF I.

Members of LEOFF I whose pre-LEOFF service is not creditable because at the time of the service, the members employed as law enforcement officers or fire fighters but were not yet members of the pre-LEOFF system, have until June 30, 1993, to pay the employer and employee contributions, with interest, for the prior service in order to receive service credit under LEOFF I.

Any PERS member who: (a) has at least 10 years of previous service in the City of Seattle Police Relief and Pension Fund System, (b) withdrew his or her contributions to the system prior to July 1, 1961, and (c) was never a member of the LEOFF system, is eligible for service credit under PERS for the previous service.

Such a member must declare intent by September 30, 1992, to restore the withdrawn contributions to the Seattle Police Relief and Pension Fund, and do so by December 31, 1992.  The fund will transfer to the Department of Retirement Systems the full amount of the member's contributions, plus an equal amount to be considered employer contributions, plus compound interest, within 90 days of the member's declaration of intent.

Fiscal Note:  Not requested.

Effective Date:  The provisions dealing with transfer of credit from the Seattle Police Relief and Pension Fund are subject to an emergency clause, and take effect immediately.  The remainder of the bill takes effect ninety days after adjournment of the session in which the bill is passed.

Testimony For:  None.

Testimony Against:  None.

Witnesses:  None.