SENATE BILL REPORT

                            SB 5127

                    AS OF JANUARY 18, 1993

Brief Description:  Providing for leaves of absence by certain retirement system members.

SPONSORS: Senators Moore, Prentice, Roach, Bauer, West, Talmadge, Williams, Vognild, Sutherland, Pelz, Prince, McAuliffe, Wojahn, Jesernig and Erwin

SENATE COMMITTEE ON LABOR & COMMERCE

Staff:  Jonathan Seib (786‑7427)

Hearing Dates: January 20, 1993

BACKGROUND:

Public employee collective bargaining agreements typically contain provisions authorizing certain union members to take leave to engage in bargaining and other labor relations activities.  While on leave, the members retain their status as public employees, and continue to receive their full salary and benefits from their employer.  The employer, however, is reimbursed in full by the union.

Service credit under the Public Employee Retirement System (PERS) is one of the benefits those taking such leave have continued to receive.  There is some question, however, as to whether this was ever authorized under the PERS statute.  Service credit previously accrued by these persons could therefore be in jeopardy, and future accrual may not be allowed.

SUMMARY:

Public employees who take leave to engage in labor relations activities are explicitly authorized to receive service credit for purposes of the public employee retirement system.  To be eligible, the employee must be on leave authorized by a collective bargaining agreement, must have his or her compensation paid by or through the employer, must retain seniority with his or her employer, and must make both the employee and employer contributions.

The act applies retroactively, authorizing service credit for those who have taken leave prior to its effective date.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested January 12, 1993