S-0491.1  _______________________________________________

 

                         SENATE BILL 5474

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Senators Fraser and Hargrove

 

Read first time 01/24/95.  Referred to Committee on Ways & Means.

 

Restoring service credit.



    AN ACT Relating to benefits under prior retirement systems; and amending RCW 41.54.020.

 

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

 

    Sec. 1.  RCW 41.54.020 and 1994 c 197 s 32 are each amended to read as follows:

    (1) Those persons who are dual members on or after July 1, 1988, shall not receive a retirement benefit from any prior system while dual members without the loss of all benefits under this chapter.  Retroactive retirement in any prior system will cancel membership in any subsequent systems except as allowed under RCW 41.04.270 and will result in the refund of all employee and employer contributions made to such systems.

    (2) If a member has withdrawn contributions from a prior system, the member may restore the contributions, together with interest since the date of withdrawal as determined by the system, and recover the service represented by the contributions.  Such restoration must be completed within two years of establishing dual membership or prior to retirement, whichever occurs first.

    (3) If a member does not meet the time limitation under subsection (2) of this section, the member, prior to retirement, may restore the service credit destroyed by the withdrawn contributions by paying the amount required under RCW 41.50.165(2).  However, if a member failed to meet the applicable statutory deadline and filed a petition with the director of the department of retirement systems prior to January 1, 1995, requesting an extension of the applicable period; and if the director's findings in denying the petition affirmatively show that the failure was due to the fact that the department's customary bulletins and other notifications that were furnished to the member's employer for distribution were not furnished to the member by the employer, and that the member did not otherwise receive notice through other channels of communication and was not at fault, the member may elect to restore the required contributions and interest and regain service credit under subsection (2) of this section under the same terms and conditions and without further liability as if the election had been made on a timely basis.  The election must be made not later than July 1, 1995, or prior to retirement, whichever comes first.  The department shall provide written notice and an application directly to the affected members, and any further assistance as may be necessary to implement this section.

    (4) Any service accrued in one system by the member shall not accrue in any other system.

 


                            --- END ---