SENATE BILL REPORT

                   SB 5358

                    As of February 1, 1995

Title:  An act relating to transferring retirement system plan membership.

Brief Description:  Transferring retirement system plan membership.

Sponsors:  Senators Bauer, Newhouse, Rinehart and Winsley.

Brief History:

Committee Activity:  Ways & Means:  2/2/95.

SENATE COMMITTEE ON WAYS & MEANS

Staff:  Denise Graham (786-7715)

Background:  An elected official has the option of becoming a member of the Public Employees' Retirement System (PERS).  If the elected official is an active member of the Teachers' Retirement System, the Law Enforcement Officers' and Fire Fighters' Retirement System or the Washington State Patrol Retirement System, he or she cannot become a member of PERS.

Those establishing membership prior to October 1977 become members of PERS Plan I; thereafter, membership is established in PERS Plan II.

Members of PERS Plan I may retire after 30 years of service at any age, or at age 55 with 25 years of service or at age 60 with 5 years of service.  Members of PERS Plan II may retire after attaining age 65.

Summary of Bill:  A member of the Public Employees' Retirement System (PERS) Plan II may transfer his or her membership to PERS Plan I if the member (1) was elected to public office prior to October 1, 1977, and (2) was, at the time he or she was elected to public office, a member of the Teachers' Retirement System Plan I, the Law Enforcement Officers' and Fire Fighters' Retirement System Plan I, the Washington State Patrol Retirement System, the Judicial Retirement System or the Judges Retirement System.

In order to transfer membership, the member must pay (1) the difference in the employee and employer contributions paid under Plan II and those employee and employer contributions which would have been required under Plan I, and (2) the employer and employee contributions which would have been required at the time the member served in public office, plus interest.

Appropriation:  None.

Fiscal Note:  Available.

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