AN ACT Relating to the law enforcement
officers' and fire fighters' retirement system; amending RCW 41.26.420,
41.26.430, 41.26.470, 41.26.530, 41.26.540, 41.26.550, 41.54.010, 41.54.040,
and 41.56.460; adding a new section to chapter 41.26 RCW; and creating a new
section.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A
new section is added to chapter 41.26 RCW under the subchapter heading
"Plan II" to read as follows:
The legislature recognizes the demanding,
physical nature of law enforcement and fire fighting, and the resulting need to
allow law enforcement officers and fire fighters to make transitions into other
careers when these employees feel they can no longer pursue law enforcement or
fire fighting. The legislature also recognizes the challenge and cost of
maintaining the viability of a retired employee's benefit over longer periods
of retirement as longevity increases, and that this problem is compounded for
employees who leave a career before they retire from the work force.
Therefore, the purpose of this act is to: (1)
Provide full retirement benefits to law enforcement officers and fire fighters
at an appropriate age that reflects the unique and physically demanding nature
of their work; (2) provide a fair and reasonable value from the retirement
system for those who leave the law enforcement or fire fighting profession
before retirement; (3) increase flexibility for law enforcement officers and
fire fighters to make transitions into other public or private sector
employment; (4) increase employee options for addressing retirement needs,
personal financial planning, and career transitions; and (5) continue the
legislature's established policy of having employees pay a fifty percent share
of the contributions toward their retirement benefits and any enhancements.
Sec. 2.
RCW 41.26.420 and 1979 ex.s. c 249 s 4 are each amended to read as follows:
Except as provided in RCW 41.26.530, a
member of the retirement system shall receive a retirement allowance equal to
two percent of such member's final average salary for each year of service.
Sec. 3.
RCW 41.26.430 and 1991 c 343 s 18 are each amended to read as follows:
(1) NORMAL RETIREMENT. Any member with at
least five service credit years of service who has attained at least age ((fifty-eight))
fifty-five shall be eligible to retire and to receive a retirement
allowance computed according to the provisions of RCW 41.26.420.
(2) EARLY RETIREMENT. Any member who has
completed at least twenty service credit years of service and has attained age
fifty shall be eligible to retire and to receive a retirement allowance
computed according to the provisions of RCW 41.26.420, except that a member
retiring pursuant to this subsection shall have the retirement allowance
actuarially reduced to reflect the difference in the number of years between
age at retirement and the attainment of age ((fifty-eight)) fifty-five.
Sec. 4.
RCW 41.26.470 and 1990 c 249 s 19 are each amended to read as follows:
(1) A member of the retirement system who
becomes totally incapacitated for continued employment by an employer as
determined by the director shall be eligible to receive an allowance under the
provisions of RCW 41.26.410 through 41.26.550. Such member shall receive a
monthly disability allowance computed as provided for in RCW 41.26.420 and
shall have such allowance actuarially reduced to reflect the difference in the
number of years between age at disability and the attainment of age ((fifty-eight))
fifty-five.
(2) Any member who receives an allowance under
the provisions of this section shall be subject to such comprehensive medical
examinations as required by the department. If such medical examinations
reveal that such a member has recovered from the incapacitating disability and
the member is no longer entitled to benefits under Title 51 RCW, the retirement
allowance shall be canceled and the member shall be restored to duty in the
same civil service rank, if any, held by the member at the time of retirement
or, if unable to perform the duties of the rank, then, at the member's request,
in such other like or lesser rank as may be or become open and available, the
duties of which the member is then able to perform. In no event shall a member
previously drawing a disability allowance be returned or be restored to duty at
a salary or rate of pay less than the current salary attached to the rank or
position held by the member at the date of the retirement for disability. If
the department determines that the member is able to return to service, the
member is entitled to notice and a hearing. Both the notice and the hearing
shall comply with the requirements of chapter 34.05 RCW, the Administrative
Procedure Act.
(3) Those members subject to this chapter who
became disabled in the line of duty on or after July 23, 1989, and who receive
benefits under RCW 41.04.500 through 41.04.530 or similar benefits under RCW
41.04.535 shall receive or continue to receive service credit subject to the
following:
(a) No member may receive more than one month's
service credit in a calendar month.
(b) No service credit under this section may be
allowed after a member separates or is separated without leave of absence.
(c) Employer contributions shall be paid by the
employer at the rate in effect for the period of the service credited.
(d) Employee contributions shall be collected
by the employer and paid to the department at the rate in effect for the period
of service credited.
(e) State contributions shall be as provided in
RCW 41.26.450.
(f) Contributions shall be based on the regular
compensation which the member would have received had the disability not
occurred.
(g) The service and compensation credit under
this section shall be granted for a period not to exceed six consecutive
months.
(h) Should the legislature revoke the service
credit authorized under this section or repeal this section, no affected
employee is entitled to receive the credit as a matter of contractual right.
(4)(a) If the recipient of a monthly retirement
allowance under this section dies before the total of the retirement allowance
paid to the recipient equals the amount of the accumulated contributions at the
date of retirement, then the balance shall be paid to such person or persons
having an insurable interest in his or her life as the recipient has nominated
by written designation duly executed and filed with the director, or, if there
is no such designated person or persons still living at the time of the
recipient's death, then to the surviving spouse, or, if there is neither such
designated person or persons still living at the time of his or her death nor a
surviving spouse, then to his or her legal representative.
(b) If a recipient of a monthly retirement
allowance under this section died before April 27, 1989, and before the total
of the retirement allowance paid to the recipient equaled the amount of his or
her accumulated contributions at the date of retirement, then the department
shall pay the balance of the accumulated contributions to the member's
surviving spouse or, if there is no surviving spouse, then in equal shares to
the member's children. If there is no surviving spouse or children, the
department shall retain the contributions.
Sec. 5.
RCW 41.26.530 and 1977 ex.s. c 294 s 14 are each amended to read as follows:
(1) A member who separates or has
separated after having completed at least five years of service may remain a
member during the period of such member's absence from service for the
exclusive purpose only of receiving a retirement allowance under the provisions
of RCW 41.26.430 if such member maintains the member's accumulated
contributions intact.
(2) The retirement allowance payable under
the provisions of RCW 41.26.430 to a member who separates after having
completed at least twenty years of service, and remains a member during the
period of his or her absence from service by maintaining his or her accumulated
contributions intact, shall be increased by twenty-five one-hundredths of one
percent, compounded for each month from the date of separation to the date the
retirement allowance commences as provided in RCW 41.26.490.
Sec. 6.
RCW 41.26.540 and 1982 1st ex.s. c 52 s 5 are each amended to read as follows:
(1) A member who has completed less
than ten years of service, who ceases to be an employee of an employer
except by service or disability retirement, may request a refund of the
member's accumulated contributions. A member who has completed ten or more
years of service, who ceases to be an employee of an employer except by service
or disability retirement, may request a refund of one hundred fifty percent of
the member's accumulated contributions.
(2) The refund shall be made within
ninety days following the receipt of the request and notification of
termination through the contribution reporting system by the employer; except
that in the case of death, an initial payment shall be made within thirty days
of receipt of request for such payment and notification of termination through
the contribution reporting system by the employer. A member who files a
request for refund and subsequently enters into employment with another
employer prior to the refund being made shall not be eligible for a refund.
The refund of accumulated contributions shall terminate all rights to benefits
under RCW 41.26.410 through 41.26.550.
Sec. 7.
RCW 41.26.550 and 1977 ex.s. c 294 s 16 are each amended to read as follows:
A member, who had left service and withdrawn
the member's ((accumulated contributions)) funds pursuant to RCW
41.26.540, shall receive service credit for such prior service if the
member restores all withdrawn ((accumulated contributions)) funds
together with interest since the time of withdrawal as determined by the
department.
The restoration of such funds must be completed within
five years of the resumption of service or prior to retirement, whichever
occurs first.
Sec. 8.
RCW 41.54.010 and 1990 c 192 s 1 are each amended to read as follows:
The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Base salary" means salaries or
wages earned by a member of a system during a payroll period for personal
services and includes wages and salaries deferred under provisions of the
United States internal revenue code, but shall exclude overtime payments,
nonmoney maintenance compensation, and lump sum payments for deferred annual
sick leave, unused accumulated vacation, unused accumulated annual leave, any
form of severance pay, any bonus for voluntary retirement, any other form of
leave, or any similar lump sum payment.
(2) "Department" means the department
of retirement systems.
(3) "Director" means the director of
the department of retirement systems.
(4) "Dual member" means a person who
(a) is or becomes a member of a system on or after July 1, 1988, (b) has been a
member of one or more other systems, and (c) has never been retired for service
from a retirement system and is not receiving a disability retirement or
disability leave benefit from any retirement system listed in RCW 41.50.030 or
subsection (6) of this section.
(5) "Service" means the same as it
may be defined in each respective system. For the purposes of RCW 41.54.030,
military service granted under RCW 41.40.170(3) or 43.43.260 may only be based
on service accrued under chapter 41.40 or 43.43 RCW, respectively.
(6) "System" means the retirement
systems established under chapters 41.32, 41.40, 41.44, and 43.43 RCW; plan
II of the system established under chapter 41.26 RCW; and the city employee
retirement systems for Seattle, Tacoma, and Spokane. The inclusion of an
individual first class city system is subject to the procedure set forth in RCW
41.54.061.
Sec. 9.
RCW 41.54.040 and 1990 c 192 s 5 are each amended to read as follows:
(1) Except where subsection (4) of this section
applies, retirement allowances calculated under RCW 41.54.030 shall be paid
separately by each respective current and prior system. Any deductions from
such separate payments shall be according to the provisions of the respective
systems.
(2) Postretirement adjustments, if any, shall
be applied by the respective systems based on the payments made under
subsection (1) of this section.
(3) If a dual member dies in service in any
system, the surviving spouse shall receive the same benefit from each system
that would have been received if the member were active in the system at the
time of death based on service actually established in that system. However,
this subsection does not make a surviving spouse eligible for the survivor
benefits provided in RCW 43.43.270.
(4) The department shall adopt rules under
chapter 34.05 RCW to ensure that where a dual member has service in a system
established under chapter 41.32, 41.40, 41.44, or 43.43 RCW; service in plan
II of the system established under chapter 41.26 RCW; and service under the
city employee retirement system for Seattle, Tacoma, or Spokane, the entire
additional cost incurred as a result of the dual member receiving a benefit
under this chapter shall be borne by the city retirement system that the person
is a member of.
Sec. 10.
RCW 41.56.460 and 1988 c 110 s 1 are each amended to read as follows:
(1) In making its determination, the
panel shall be mindful of the legislative purpose enumerated in RCW 41.56.430
and as additional standards or guidelines to aid it in reaching a decision, it
shall take into consideration the following factors:
(a) The constitutional and statutory authority
of the employer;
(b) Stipulations of the parties;
(c)(i) For employees listed in RCW
41.56.030(7)(a) and 41.56.495, comparison of the wages, hours and conditions of
employment of personnel involved in the proceedings with the wages, hours, and
conditions of employment of like personnel of like employers of similar size on
the west coast of the United States;
(ii) For employees listed in RCW
41.56.030(7)(b), comparison of the wages, hours, and conditions of employment
of personnel involved in the proceedings with the wages, hours, and conditions
of employment of like personnel of public fire departments of similar size on
the west coast of the United States. However, when an adequate number of
comparable employers exists within the state of Washington, other west coast
employers shall not be considered;
(d) The average consumer prices for goods and
services, commonly known as the cost of living;
(e) Changes in any of the foregoing
circumstances during the pendency of the proceedings; and
(f) Such other factors, not confined to the
foregoing, which are normally or traditionally taken into consideration in the
determination of wages, hours and conditions of employment.
(2) Nothing in subsection (1)(c) of this
section shall be construed to authorize the panel to require the employer to
pay, directly or indirectly, the increased employee contributions resulting
from chapter . . ., Laws of 1993 (this act), as required under
chapter 41.26 RCW.
NEW SECTION. Sec. 11. If
specific funding for this act, referencing this act by bill number, is not
provided by June 30, 1993, in the biennial appropriations act, this act shall
be null and void.
