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SUBSTITUTE SENATE BILL 5818
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AS AMENDED BY THE HOUSE
Passed Legislature - 1996 Regular Session
State of Washington 54th Legislature 1995
Regular Session
By
Read first time 03/06/95.
Paying benefits when a member dies
before retirement.
AN ACT Relating to
payment of benefits when a member dies before retirement; amending RCW
41.40.270; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. (1) If a member dies
following a period of sick leave without having applied for a disability
retirement under RCW 41.32.550, the member's surviving spouse is eligible to
receive, from the time of the member's death, a joint and one hundred percent
retirement allowance under RCW 41.32.530, without the actuarial reduction
otherwise required by RCW 41.32.520 (1)(b)(ii), if the following conditions are
met:
(a) The member had been
on sick leave due to an illness that would have qualified the member for
permanent disability under RCW 41.32.550; and
(b) The illness was the
cause of the member's death.
(2) This section
applies to members who died between July 1, 1994, and September 1, 1994.
Sec. 2. RCW 41.40.270 and 1995 c
144 s 5 are each amended to read as follows:
(1) Should a member die
before the date of retirement the amount of the accumulated contributions
standing to the member's credit in the employees' savings fund, less any amount
identified as owing to an obligee upon withdrawal of accumulated contributions
pursuant to a court order filed under RCW 41.50.670, at the time of death:
(a) Shall be paid to
the member's estate, or such person or persons, trust, or organization as the
member shall have nominated by written designation duly executed and filed with
the department; or
(b) If there be no such
designated person or persons still living at the time of the member's death, or
if a member fails to file a new beneficiary designation subsequent to marriage,
remarriage, dissolution of marriage, divorce, or reestablishment of membership
following termination by withdrawal or retirement, such accumulated contributions,
less any amount identified as owing to an obligee upon withdrawal of
accumulated contributions pursuant to a court order filed under RCW 41.50.670,
shall be paid to the surviving spouse as if in fact such spouse had been
nominated by written designation as aforesaid, or if there be no such surviving
spouse, then to the member's legal representatives.
(2) Upon the death in
service, or while on authorized leave of absence for a period not to exceed one
hundred and twenty days from the date of payroll separation, of any member who
is qualified but has not applied for a service retirement allowance or has
completed ten years of service at the time of death, the designated
beneficiary, or the surviving spouse as provided in subsection (1) of this
section, may elect to waive the payment provided by subsection (1) of this
section. Upon such an election, a joint and one hundred percent survivor
option under RCW 41.40.188, calculated under the retirement allowance described
in RCW 41.40.185 or 41.40.190, whichever is greater, actuarially reduced by the
amount of any lump sum benefit identified as owing to an obligee upon
withdrawal of accumulated contributions pursuant to a court order filed under
RCW 41.50.670 shall automatically be given effect as if selected for the
benefit of the designated beneficiary. If the member is not then qualified for
a service retirement allowance, such benefit shall be based upon the actuarial
equivalent of the sum necessary to pay the accrued regular retirement allowance
commencing when the deceased member would have first qualified for a service
retirement allowance.
(3) Subsection (1) of
this section, unless elected, shall not apply to any member who has applied for
service retirement in RCW 41.40.180, as now or hereafter amended, and
thereafter dies between the date of separation from service and the member's
effective retirement date, where the member has selected a survivorship option
under RCW 41.40.188. In those cases the beneficiary named in the member's
final application for service retirement may elect to receive either a cash
refund, less any amount identified as owing to an obligee upon withdrawal of
accumulated contributions pursuant to a court order filed under RCW 41.50.670,
or monthly payments according to the option selected by the member.
(4) For deaths
occurring between July 1, 1995, and June 30, 1997, if a member who: (a) Has
applied for nonduty disability under RCW 41.40.230; (b) has submitted adequate
evidence to support a disability determination; and (c) has selected a
retirement under RCW 41.40.188, dies before receiving the first retirement
payment, the beneficiary named in the member's final application for disability
retirement may elect to receive either a cash refund, less any amount
identified as owing to an obligee upon withdrawal of accumulated contributions
pursuant to a court order filed under RCW 41.50.670, or monthly payments
according to the option selected by the member.
