S-0622.1                   _______________________________________________

                                                     SENATE BILL 5259

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Senators Niemi, Wojahn, Williams, Pelz, Prentice and Winsley

Read first time 01/20/93.  Referred to Committee on Ways & Means.

Regulating portability of retirement benefits.

          AN ACT Relating to portability of public retirement benefits; amending RCW 41.54.061 and 41.54.040; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  RCW 41.54.061 and 1990 c 192 s 3 are each amended to read as follows:

          (1) The cities of Seattle, Spokane, and Tacoma shall each have the option of making an irrevocable election to have its employee retirement system included in the coverage of this chapter by adopting a resolution transmitting it to the director and the joint committee on pension policy prior to December ((1, 1990)) 31, 1993.

          The resolution shall indicate the city's desire to be covered by this chapter and its willingness to pay for the additional cost it may incur as a result of the benefits provided by this chapter.

          (2) This chapter shall become effective on January 1, ((1991)) 1994, for each city which adopts a resolution pursuant to subsection (1) of this section.  ((However, if all three cities adopt such resolutions prior to June 1, 1990, the provisions of this chapter shall become effective for those systems on July 1, 1990.))

        Sec. 2.  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,)) The 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 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)) incurring the additional cost.

NEW SECTION. Sec. 3.  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.

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