H-3125.1          _______________________________________________

                         HOUSE CONCURRENT RESOLUTION 4422

                  _______________________________________________

State of Washington              52nd Legislature         1991 1st Special Session

By Representatives Hine, McLean, Spanel, Sheldon, H. Myers, Pruitt, Kremen, Jones, Franklin, Ludwig, Bray, Cole, Rayburn, Valle, Wynne, Neher, D. Sommers, Fraser, Leonard, Basich, Rasmussen and Anderson.

Read first time June 21, 1991.  Resolving that the joint committee on pension policy continue to review pension options.

     WHEREAS, The Teachers Retirement System, Plan I, and the Public Employees Retirement System, Plan I, were not designed nor funded to provide postretirement cost of living adjustments; and

     WHEREAS, The Teachers Retirement System, Plan I, and the Public Employees Retirement System, Plan I, were designed so that members who have thirty years of service may retire at any age, but may not include any additional years of service to increase the size of their retirement benefit; and

     WHEREAS, Persons who retire in their fiftys may receive benefits for over thirty years, and inflation can greatly reduce the purchasing power of the initial benefit over that length of time; and

     WHEREAS, Many Teachers Retirement System, Plan I, and the Public Employees Retirement System, Plan I, members retire as soon as they have earned thirty years of service, and some would be willing to work longer if the additional years of service would earn them a larger retirement benefit; and

     WHEREAS, Many teachers and public employees want to plan ahead and are willing to take personal responsibility for ensuring that they will have a financially secure retirement;

     NOW, THEREFORE, BE IT RESOLVED, By the House of Representatives of the State of Washington, the Senate concurring, That the Joint Committee on Pension Policy continue its review of the various options that may be available for active members of the Teachers Retirement System, Plan I, and the Public Employees Retirement System, Plan I, to help provide themselves with postretirement cost of living adjustments.  The Joint Committee on Pension Policy is requested to include a review of options that allow members to:

     (1) Credit their member contributions to a "COLA Fund" for all years worked in excess of thirty;

     (2) Transfer, subject to reasonable conditions, to either the Teachers Retirement System, Plan I, and the Public Employees Retirement System, Plan I, (except Plan II); and

     (3) Fund a cost of living adjustment by delaying the receipt of the initial retirement allowance.