S-2060.1 _______________________________________________
SUBSTITUTE SENATE BILL 5380
_______________________________________________
State of Washington 52nd Legislature 1991 Regular Session
By Senate Committee on Ways & Means (originally sponsored by Senators Saling, Bauer, Nelson, Moore, Rasmussen, Niemi, Bailey, Gaspard, West, Amondson, Owen, Talmadge, A. Smith, Snyder, McMullen, Wojahn, Vognild, Murray, Rinehart, Williams, L. Kreidler, Conner, Jesernig, Roach and L. Smith).
Read first time March 11, 1991.
AN ACT Relating to retirement allowances for members of the teachers' and public employees' retirement systems; amending RCW 41.32.575 and 41.40.325; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 41.32.575 and 1989 c 272 s 3 are each amended to read as follows:
(1)
Beginning July 1, ((1989)) 1991, 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.
(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 the 1991-93 omnibus appropriations act until the funds are exhausted as provided in this subsection. The applicable percent shall be initially set at sixty percent, and the benefit age shall be initially set at sixty-five. The state actuary shall alternately increase the applicable percentage by one percent and reduce the benefit age by one year, or as much of these as the available funds permit.
Sec. 2. RCW 41.40.325 and 1989 c 272 s 2 are each amended to read as follows:
(1)
Beginning July 1, ((1989)) 1991, 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.
(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 the 1991-93 omnibus appropriations act until the funds are exhausted as provided in this subsection. The applicable percent shall be initially set at sixty percent, and the benefit age shall be initially set at sixty-five. The state actuary shall alternately increase the applicable percentage by one percent and reduce the benefit age by one year, or as much of these as the available funds permit.
NEW SECTION. Sec. 3. If specific funding for the purposes of this act, referencing this act by bill number, is not provided by June 30, 1991, in the omnibus appropriations act, this act shall be null and void.