Z-0765.1  _______________________________________________

                         SENATE BILL 5711

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Senators Cantu and Bauer; by request of Department of Retirement Systems

Read first time 02/02/95.  Referred to Committee on Ways & Means.

Calculating retiree benefits.

    AN ACT Relating to complying with federal limits on the maximum compensation used to calculate state retirement system benefits; adding a new section to chapter 41.26 RCW; adding a new section to chapter 41.32 RCW; adding a new section to chapter 41.40 RCW; and adding a new section to chapter 43.43 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 41.26 RCW under the subchapter heading "provisions applicable to plan I and plan II" to read as follows:

    (1) The annual compensation taken into account in calculating retiree benefits under this system shall not exceed the limits imposed by section 401(a)(17) of the federal internal revenue code for qualified trusts.

    (2) The department shall adopt rules as necessary to implement this section.

NEW SECTION. Sec. 2.  A new section is added to chapter 41.32 RCW under the subchapter heading "provisions applicable to plan I and plan II" to read as follows:

    (1) The annual compensation taken into account in calculating retiree benefits under this system shall not exceed the limits imposed by section 401(a)(17) of the federal internal revenue code for qualified trusts.

    (2) The department shall adopt rules as necessary to implement this section.

NEW SECTION. Sec. 3.  A new section is added to chapter 41.40 RCW under the subchapter heading "provisions applicable to plan I and plan II" to read as follows:

    (1) The annual compensation taken into account in calculating retiree benefits under this system shall not exceed the limits imposed by section 401(a)(17) of the federal internal revenue code for qualified trusts.

    (2) The department shall adopt rules as necessary to implement this section.

NEW SECTION. Sec. 4.  A new section is added to chapter 43.43 RCW to read as follows:

    (1) The annual compensation taken into account in calculating retiree benefits under this system shall not exceed the limits imposed by section 401(a)(17) of the federal internal revenue code for qualified trusts.

    (2) The department shall adopt rules as necessary to implement this section.

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