S-1210.1                   _______________________________________________

 

                                                     SENATE BILL 5590

                              _______________________________________________

 

State of Washington                              53rd Legislature                             1993 Regular Session

 

By Senators Moore, Newhouse, Talmadge, Spanel, West, Roach, Prentice, Prince, Vognild and Bauer

 

Read first time 02/04/93.  Referred to Committee on Labor & Commerce.

 

Providing service credit for periods of paid leave.


          AN ACT Relating to providing service credit for periods of paid leave; amending RCW 41.40.710, 41.26.520, and 41.32.810; adding a new section to chapter 41.40 RCW; adding a new section to chapter 41.26 RCW; adding a new section to chapter 41.32 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 41.40 RCW under the subchapter heading "Plan I" to read as follows:

          (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided under the provisions of RCW 41.40.145 through 41.40.363.

          (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization may be considered to be on a paid leave of absence if the member's employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The compensation earnable reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

 

        Sec. 2.  RCW 41.40.710 and 1992 c 119 s 3 are each amended to read as follows:

          (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.40.610 through 41.40.740.

          (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization may be considered to be on a paid leave of absence if the member's employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The compensation earnable reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

          (3) Except as specified in subsection (((3))) (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if the member makes both the plan II employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner.  The contributions required shall be based on the average of the member's compensation earnable at both the time the authorized leave of absence was granted and the time the member resumed employment.

          (((3))) (4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to four years of military service.

          (a) The member qualifies for service credit under this subsection if:

          (i) Within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces; and

          (ii) The member makes the employee contributions required under RCW 41.40.650 plus interest as determined by the department within five years of resumption of service or prior to retirement, whichever comes sooner.

          (b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall bill the employer for its contribution required under RCW 41.40.650 for the period of military service, plus interest as determined by the department.

          (c) The contributions required shall be based on the average of the member's compensation earnable at both the time the member left the employ of the employer to enter the armed forces and the time the member resumed employment.

 

          NEW SECTION.  Sec. 3.  A new section is added to chapter 41.26 RCW under the subchapter heading "Plan I" to read as follows:

          (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided under the provisions of RCW 41.26.080 through 41.26.3903.

          (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization may be considered to be on a paid leave of absence if the member's employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The basic salary reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

 

        Sec. 4.  RCW 41.26.520 and 1992 c 119 s 1 are each amended to read as follows:

          (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.26.410 through 41.26.550.

          (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization may be considered to be on a paid leave of absence if the member's employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The basic salary reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

          (3) Except as specified in subsection (((3))) (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if the member makes the employer, member, and state contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner:  PROVIDED, That for the purpose of this subsection the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW 41.26.450.  The contributions required shall be based on the average of the member's basic salary at both the time the authorized leave of absence was granted and the time the member resumed employment.

          (((3))) (4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to four years of military service.

          (a) The member qualifies for service credit under this subsection if:

          (i) Within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces; and

          (ii) The member makes the employee contributions required under RCW 41.26.450 plus interest as determined by the department within five years of resumption of service or prior to retirement, whichever comes sooner.

          (b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall bill the employer and the state for their respective contributions required under RCW 41.26.450 for the period of military service, plus interest as determined by the department.

          (c) The contributions required shall be based on the average of the member's basic salary at both the time the member left the employ of the employer to enter the armed forces and the time the member resumed employment.

          (((4))) (5) A member receiving benefits under Title 51 RCW who is not receiving benefits under this chapter shall be deemed to be on unpaid, authorized leave of absence.

 

          NEW SECTION.  Sec. 5.  A new section is added to chapter 41.32 RCW under the subchapter heading "Plan I" to read as follows:

          (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided under the provisions of RCW 41.32.240 through 41.32.575.

          (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization may be considered to be on a paid leave of absence if the member's employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The earnable compensation allowable for calculation of the member's average final compensa­tion under this subsection may not be greater than the salary the member would have been paid by the district for the position the member occupied immediately prior to taking leave, as established in the district's collective bargaining agreement for nonsupervisory certificated employees.

 

        Sec. 6.  RCW 41.32.810 and 1992 c 119 s 2 are each amended to read as follows:

          (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.32.755 through 41.32.825.

          (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization may be considered to be on a paid leave of absence if the member's employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The earnable compensation allowable for calculation of the member's average final compensation under this subsection may not be greater than the salary the member would have been paid by the district for the position the member occupied immediately prior to taking leave, as established in the district's collective bargaining agreement for nonsupervisory certificated employees.

          (3) Except as specified in subsection (((3))) (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if the member makes both the employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner:  PROVIDED, That for the purpose of this subsection the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW 41.32.775.  The contributions required shall be based on the average of the member's earnable compensa­tion at both the time the authorized leave of absence was granted and the time the member resumed employment.

          (((3))) (4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to four years of military service.

          (a) The member qualifies for service credit under this subsection if:

          (i) Within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces; and

          (ii) The member makes the employee contributions required under RCW 41.32.775 plus interest as determined by the department within five years of resumption of service or prior to retirement, whichever comes sooner.

          (b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall bill the employer for its contribution required under RCW 41.32.775 for the period of military service, plus interest as determined by the department.

          (c) The contributions required shall be based on the average of the member's earnable compensation at both the time the member left the employ of the employer to enter the armed forces and the time the member resumed employment.

 

          NEW SECTION.  Sec. 7.  Sections 1 through 4 of this act apply retroactively.  Sections 5 and 6 of this act apply prospectively only and not retroactively.

 


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