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
(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. 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.
At the end of each three-month period in which exceptions are approved, 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. At the end of
each three-month period in which exceptions are approved, 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 of services
would have a significant negative impact on the public. At the end of each
three-month period in which exceptions are approved, 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 after the time of 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 the date the employee would have
been eligible to retire under the provisions of RCW 41.40.180 or 41.32.480 had
the employee continued to work for the district until eligible to retire, or
three years following the date of the employee's separation from school
district employment, whichever occurs first. A district exercising its
discretion under this section to pay the remainder of the remuneration after
the time of the employee's separation from school district employment shall
establish a policy and procedure for paying the remaining remuneration that
applies to all affected employees equally and without discrimination. 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.
