SENATE BILL REPORT

                  EHB 1934

              As Reported By Senate Committee On:

                  Ways & Means, April 3, 1995

Title:  An act relating to the Washington state patrol retirement system.

Brief Description:  Establishing benefits for state patrol retirement system members who serve as legislators.

Sponsors:  Representatives Mielke, Silver, Sommers, L. Thomas, Hankins, Blanton and Honeyford.

Brief History:

Committee Activity:  Ways & Means:  4/3/95 [DPA, DNPA].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass as amended.

  Signed by Senators Rinehart, Chair; Loveland, Vice Chair; Bauer, Fraser, Gaspard, Hargrove, McDonald, Pelz, Quigley, Sheldon, Snyder, West and Winsley.

Minority Report:  Do not pass as amended.

  Signed by Senator Hochstatter.

Staff:  Denise Graham (786-7715)

Background:  Members of the Public Employees' Retirement System (PERS), the Teachers' Retirement System (TRS), and the Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) can continue to receive membership credit while on leave of absence to serve in the state Legislature.  Members of the Washington State Patrol Retirement System (WSPRS) cannot continue to receive membership credit while on leave of absence to serve in the Legislature.  Members of institutions of higher education belonging to the Teachers Retirement and Annuities Association of America/College Retirement Equities Fund (TIAA/CREF) cannot continue to accumulate contributions while on leave of absence to serve in the Legislature.

Summary of Amended Bill:   A member of the WSPRS who is on unpaid leave of absence to serve in the Legislature may continue to receive service credit.  The Legislature pays employer contributions and the employee pays the employee contributions.  Contributions are based on the basic salary the member would have received  had the member not served in the Legislature. 

An employee of an institution of higher education may continue to participate in TIAA/CREF while on leave of absence to serve as a state legislator.  The institution pays the employee's legislative salary and pays employer contributions based on the salary for the period of leave.  The Legislature reimburses the institution for the salary and the employer contributions covering the leave period.

A member of the Public Employees' Retirement System Plan II may purchase service credit for prior periods of employment in the Department of Transportation if the employee worked at least 1200 hours in at least four calendar years between June 1, 1965 and September 30, 1973, by paying the employee contributions that would have been required had the position been an eligible position, plus interest.  The Department of Transportation must pay the employer contributions plus interest.  A member who establishes service credit under this provision becomes a member of Plan I.

Amended Bill Compared to Original Bill:  The engrossed House bill did not specify that the member of the WSPRS had to be on unpaid leave of absence to serve in the Legislature or that the employee would be responsible for paying employee contributions while serving in the Legislature.  The amended bill clarifies that contributions for the WSPRS member while serving in the Legislature will be based on the basic salary the member would have received had the member not served in the Legislature.

The engrossed House bill had no provisions relating to PERS.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.