HOUSE BILL REPORT

                  HB 2603

             As Reported By House Committee On:

                       Appropriations

Title:  An act relating to allowance on retirement for disability.

Brief Description:  Restricting the allowance on retirement for disability.

Sponsors:  Representatives Brough and Sommers.

Brief History:

  Reported by House Committee on:

Appropriations, February 1, 1994, DPA.

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass as amended.  Signed by 25 members:  Representatives Sommers, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dellwo; Dunshee; G. Fisher; Foreman; Jacobsen; Lemmon; Leonard; Linville; H. Myers; Peery; Rust; Sehlin; Sheahan; Stevens; Talcott; Wang and Wolfe.

Staff:  Jennifer Priddy (786-7118).

Background:  Law Enforcement Officers and Fire Fighters (LEOFF) Retirement Plan I provides disability benefits to qualifying members at a rate of 50 percent of the final average salary.  An additional monthly benefit of 5 percent is provided for each minor child and child attending college, up to age 21, up to a total monthly benefit of 60 percent of the final average salary.  Currently there are no requirements that the retiree provide support to a child attending college in order to receive the extra disability payment.

Summary of Amended Bill:  The LEOFF Plan I is amended to restrict extra disability payments for retirees with children in college to instances where the retiree is contributing to the support or education of the child.  Specifically, the retiree must provide cash support to the child totalling at least 75 percent of the extra disability payments annually.

Amended Bill Compared to Original Bill:  The amended bill clarifies that the bill will apply to members who retired before July 1, 1994, but only for benefits distributed prospectively.  Retirees receiving the extra disability benefit for a child in college must comply with the legislation only for benefits distributed after September 15, 1994.

Fiscal Note:  Available.

Effective Date of Amended Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The extra disability benefit is provided to a retiree in order to support a child's college education efforts.  The extra benefit should go to the support of the child, not as an extra bonus for retirees.

Testimony Against:  The number of retirees who do not support their child's education is negligible.  Legislation should not be based on an isolated case.

Witnesses:  Representative Jean Marie Brough, prime sponsor (pro); Ralph Munro, Secretary of State (pro); and Howard Vitske (opposed).