SENATE BILL REPORT

                   SB 6416

              As Passed Senate, February 7, 1996

Title:  An act relating to rescinding a retirement allowance agreement.

Brief Description:  Rescinding a retirement allowance agreement.

Sponsors:  Senators Wood, Long, Winsley, Bauer, Swecker, Deccio, Quigley, Moyer and Thibaudeau.

Brief History:

Committee Activity:  Ways & Means:  1/23/96, 1/24/96 [DP].

Passed Senate, 2/7/96, 47-0.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass.

  Signed by Senators Rinehart, Chair; Loveland, Vice Chair; Bauer, Cantu, Drew, Finkbeiner, Fraser, Hargrove, Hochstatter, Long, McDonald, Moyer, Roach, Sheldon, Spanel, Strannigan, West and Winsley.

Staff:  Denise Graham (786-7715)

Background:  At retirement, a Public Employees' Retirement System Plan I member can select a retirement benefit option that pays the retiree a reduced benefit during his or her lifetime and continues to pay the retiree's beneficiary a benefit after the retiree's death.  Once selected, the retiree may not change the retirement option or the beneficiary. 

In the process of granting dissolution petitions, the court makes an equitable distribution of the spouses' property.  A beneficiary's survivor benefit is part of the property taken into consideration by the court in the division of property.

Summary of Bill:  A Public Employees' Retirement System Plan I retiree may, with the permission of the court, rescind a beneficiary's entitlement to a survivor benefit when a restraining order is issued against the designated beneficiary and the court finds that the beneficiary violated the restraining order.  The retiree's benefit does not increase as a result of the rescission and the retiree cannot select another beneficiary.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  This bill will help retirees who find themselves faced with abusive, violent spouses who are motivated by money.

Testimony Against:  None.

Testified:  Senator Wood, prime sponsor; Alice Smith.