S-0500.1                   _______________________________________________

                                                     SENATE BILL 5510

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State of Washington                              53rd Legislature                             1993 Regular Session

By Senator Niemi

Read first time 02/01/93.  Referred to Committee on Ways & Means.

Notifying reentering state employees of their ability to restore previously withdrawn contributions.

          AN ACT Relating to the Washington public employees' retirement system; and amending RCW 41.32.762.

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

        Sec. 1.  RCW 41.32.762 and 1982 c 144 s 2 are each amended to read as follows:

          (1) On or after June 10, 1982, the director may pay a beneficiary, ((as defined in *RCW 41.04.040(3),)) subject to the provisions of subsection (4) of this section, a lump sum payment in lieu of a monthly benefit if the initial monthly benefit computed in accordance with RCW 41.32.760 would be less than fifty dollars.  The lump sum payment shall be the greater of the actuarial equivalent of such monthly benefits or an amount equal to the individual's accumulated contributions plus accrued interest.

          (2) A beneficiary, ((as defined in *RCW 41.04.040(3),)) subject to the provisions of subsection (4) of this section, who is receiving a regular monthly benefit of less than fifty dollars may request, in writing, to convert from a monthly benefit to a lump sum payment.  If the director approves the conversion, the calculation of the actuarial equivalent of the total estimated regular benefit will be computed based on the beneficiary's age at the time the benefit initially accrued.  The lump sum payment will be reduced to reflect any payments received on or after the initial benefit accrual date.

          (3) Persons covered under the provisions of subsection (1) of this section may upon returning to member status ((as defined in *RCW 41.04.040(2))) reinstate all previous service by depositing the lump sum payment received, with interest as computed by the director, within two years of returning to service or prior to re-retiring, whichever comes first.  In computing the amount due, the director shall exclude the accumulated value of the normal payments the member would have received while in beneficiary status if the lump sum payment had not occurred.

The department of retirement systems shall notify all public employees' retirement system plan II members, who reenter state service, of their ability to restore withdrawn contributions, and inform members of the amount due and the repayment schedule.

          (4) Only persons entitled to or receiving a service retirement allowance under RCW 41.32.760 or an earned disability allowance under RCW 41.32.790 qualify for participation under this section.

          (5) It is the intent of the legislature that any member who receives a settlement under this section shall be deemed to be retired from this system.

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