H-4794

AN ACT Relating to early retirement under the public employees' and teachers' retirement systems; amending RCW 28A.400.210; creating new sections; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. In addition to members who are eligible to retire under RCW 41.40.180, any member of the public employees' retirement system plan I who meets the following criteria may retire on written notification to the member's employer and written application to the director no later than June 15, 1992, setting forth that the member will be retired no later than August 31, 1992:

(1) The member is employed by an employer in an eligible position on the effective date of this act; and

(2) The member has: (a) Attained the age of fifty-five years and completed five service credit years of service; (b) completed twenty-five service credit years of service; or (c) attained the age of fifty years and completed twenty service credit years of service.

NEW SECTION. Sec. 2. Section 1 of this act is added to chapter 41.40 RCW, but because of its temporary nature, shall not be codified.

NEW SECTION. Sec. 3. In addition to members who are eligible to retire under RCW 41.32.480, any member of the teachers' retirement system plan I who meets the following criteria may retire on written notification to the member's employer and written application to the director no later than June 15, 1992, setting forth that the member will be retired no later than August 31, 1992:

(1) The member is employed by an employer on the effective date of this act and is not a substitute teacher; and

NEW SECTION. Sec. 4. Section 3 of this act is added to chapter 41.32 RCW, but because of its temporary nature, shall not be codified.

NEW SECTION. Sec. 5. The office of the state actuary shall study the actual utilization of the early retirement offered by this act, the replacement of persons who utilized the early retirement, and the fiscal and programmatic impact of early retirement on the state, local governments, and school districts. The office of financial management and the office of the superintendent of public instruction shall provide technical assistance and information to the office of the state actuary for the study required in this section. The study shall be submitted to the joint committee on pension policy and the fiscal committees of the legislature by December 31, 1993.

NEW SECTION. Sec. 6. In order to ensure that the state derives the expected benefits from the early retirement provisions of this act, no state agency may engage through personal service contracts persons who retire from state service under the provisions of this act. Exceptions to this section may be granted by written approval from the director of the office of financial management if the director finds that the proposed contract is necessary to protect the public safety, protect against the loss of federal certification or loss of critical federal funds, or carry out functions so essential to the agency that even temporary suspension or delay of services would have a significant negative impact on the public. The director shall forward a copy of any approvals, together with justification for the exceptions, to the fiscal committees of the legislature. Each forwarded approval shall include the name of the proposed contractor, the agency and division or department requesting the contract, duration and cost of the proposed contract, and specific functions and duties to be carried out under the contract. This section shall expire June 30, 1995.

NEW SECTION. Sec. 7. Section 6 of this act is added to chapter 39.29 RCW, but because of its temporary nature, shall not be codified.

NEW SECTION. Sec. 8. In order to ensure that the state derives the expected benefits from the early retirement provisions of this act, no board of directors of a school district or educational service district may engage through personal service contracts persons who retire from state service under the provisions of this act. Exceptions to this section may be granted by written approval from the superintendent of public instruction if the superintendent finds that the proposed contract is necessary to protect student safety, protect against the loss of school district certification or loss of federal funds, or carry out functions so essential to the district that even temporary suspension or delay of services would have a significant negative impact on students. The superintendent shall forward a copy of any approvals, together with justification for the exceptions, to the office of financial management and the fiscal committees of the legislature. Each forwarded approval shall include the name of the proposed contractor, the district requesting the contract, duration and cost of the proposed contract, and specific functions and duties to be carried out under the contract. This section shall expire August 31, 1995.

NEW SECTION. Sec. 9. Section 8 of this act is added to chapter 28A.400 RCW, but because of its temporary nature, shall not be codified.

NEW SECTION. Sec. 10. The department of personnel, through the combined benefits communication project, shall prepare information encouraging individual financial planning for retirement and describing the potential consequences of early retirement, including members' assumption of health insurance costs, members' receipt of reduced retirement benefits, and the increased period of time before members will become eligible for cost-of-living adjustments. The department of retirement systems shall distribute the information to members who are eligible to retire under the provisions of this act. Prior to retiring, such members who elect to retire shall sign a statement acknowledging their receipt and understanding of the information.

NEW SECTION. Sec. 11. In order to ensure that the state derives the expected benefits from the early retirement provisions of this act, no state agency may hire persons who retire from state service under the provisions of this act as temporary or project employees, as defined by the state personnel board for employees covered under chapter 41.06 RCW and by the higher education personnel board for employees covered under chapter 28B.16 RCW. Exceptions to this section may be granted by written approval from the director of the office of financial management if the director finds that the temporary or project employment of a retiree is necessary to protect the public safety, protect against the loss of federal certification or loss of critical federal funds, or carry out functions so essential to the agency that even temporary suspension or delay or services would have a significant negative impact on the public. The director shall forward a copy of any approvals, together with justification for the exceptions, to the fiscal committees of the legislature. Each forwarded approval shall include the name of the temporary or project employee, the agency and division or department requesting the employment, duration and cost of the proposed employment, and specific functions and duties to be carried out during the employment. This section shall expire June 30, 1995.

Sec. 12. RCW 28A.400.210 and 1991 c 92 s 2 are each amended to read as follows:

Every school district board of directors may, in accordance with chapters 41.56 and 41.59 RCW, establish an attendance incentive program for all certificated and noncertificated employees in the following manner, including covering persons who were employed during the 1982‑'83 school year:

(1) In January of the year following any year in which a minimum of sixty days of leave for illness or injury is accrued, and each January thereafter, any eligible employee may exercise an option to receive remuneration for unused leave for illness or injury accumulated in the previous year at a rate equal to one day's monetary compensation of the employee for each four full days of accrued leave for illness or injury in excess of sixty days. Leave for illness or injury for which compensation has been received shall be deducted from accrued leave for illness or injury at the rate of four days for every one day's monetary compensation. No employee may receive compensation under this section for any portion of leave for illness or injury accumulated at a rate in excess of one day per month.

(2) Except as provided in section 13 of this act, at the time of separation from school district employment due to retirement or death an eligible employee or the employee's estate shall receive remuneration at a rate equal to one day's current monetary compensation of the employee for each four full days accrued leave for illness or injury.

(3) In lieu of remuneration for unused leave for illness or injury as provided in subsections (1) and (2) of this section, a school district board of directors may, with equivalent funds, provide eligible employees a benefit plan that provides reimbursement for medical expenses. Any benefit plan adopted after July 28, 1991, shall require, as a condition of participation under the plan, that the employee sign an agreement with the district to hold the district harmless should the United States government find that the district or the employee is in debt to the United States as a result of the employee not paying income taxes due on the equivalent funds placed into the plan, or as a result of the district not withholding or deducting any tax, assessment, or other payment on such funds as required under federal law.

Moneys or benefits received under this section shall not be included for the purposes of computing a retirement allowance under any public retirement system in this state.

The superintendent of public instruction in its administration hereof, shall promulgate uniform rules and regulations to carry out the purposes of this section.

Should the legislature revoke any benefits granted under this section, no affected employee shall be entitled thereafter to receive such benefits as a matter of contractual right.

NEW SECTION. Sec. 13. An employee of a school district that has established an attendance incentive program under RCW 28A.400.210 who retires under section 1 or 3 of this act shall receive, at the time of his or her separation from school district employment, not less than one-half of the remuneration for accrued leave for illness or injury payable to him or her under the district's incentive program. The school district board of directors may, at its discretion, pay the remainder of such an employee's remuneration for accrued leave for illness or injury within two years following the employee's separation from school district employment, but the employee or the employee's estate is entitled to receive the remainder of the remuneration no later than two years following the date of the employee's separation from school district employment. Any remuneration paid shall be based on the number of days of leave the employee had accrued and the compensation the employee received at the time he or she retired under section 1 or 3 of this act.

NEW SECTION. Sec. 14. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.