AN ACT Relating to
portable benefits for dual members; amending RCW 41.54.030, 41.54.030, and
41.54.070; reenacting and amending RCW 41.54.040; and adding new sections to
chapter 41.54 RCW.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec.
1. A new section is added
to chapter 41.54 RCW to read as follows:
(1) If a dual member
becomes disabled, the member's service in all systems may be combined for the
sole purpose of determining the member's eligibility to receive a disability
retirement allowance from the member's current system.
(2) The member's
current system shall use its own criteria to:
(a) Determine the
member's eligibility for a disability retirement allowance; and
(b) Calculate the
disability retirement allowance based on service actually established in the
current system. The member shall be allowed to substitute the member's base
salary from any system as the compensation used in calculating the allowance.
(3) Subsections (1) and
(2) of this section shall not apply to the member's prior system.
(4) A dual member who
is eligible to receive a disability retirement under the current system may
elect to receive a service retirement from all prior systems and to receive
service retirement allowances calculated as provided in this section. Each
system shall calculate the service retirement allowance using its own criteria
except that the member shall be allowed to substitute the member's base salary
from any system as the compensation used in calculating the service retirement
allowance.
(5) The service
retirement allowances from a system which, but for this section, would not be
allowed to be paid at this date based on the dual member's age, may be received
immediately or deferred to a later date. The allowances shall be actuarially
adjusted from the earliest age upon which the combined service would have made
such dual member eligible in that system.
(6) This section shall
not apply to any disability benefit under:
(a) RCW 41.40.220; or
(b) The Washington
state patrol retirement system established under chapter 43.43 RCW.
NEW SECTION. Sec.
2. A new section is added
to chapter 41.54 RCW to read as follows:
(1) If a dual member
dies in service in any system, the member's service in all systems may be
combined for the sole purpose of determining the surviving spouse's eligibility
to receive a death benefit from each of the member's current and prior systems.
(2) Each system shall
use its own criteria to:
(a) Determine the
surviving spouse's eligibility for a death benefit; and
(b) Calculate the death
benefit based on service actually established in that system.
(3) The surviving
spouse shall receive the same benefit from each system that would have been
received if the member were active in the system at the time of death. The
spouse shall be allowed to substitute the member's base salary from any system
as the compensation used in calculating the allowance.
(4) This section shall
not apply to the Washington state patrol retirement system established under
chapter 43.43 RCW.
Sec. 3. RCW 41.54.030 and 1990 c
192 s 2 are each amended to read as follows:
(1) A dual member's
service in all systems may be combined for the sole purpose of determining the
member's eligibility to receive a service retirement allowance.
(2) A dual member who
is eligible to retire under any system may elect to retire from all the
member's systems and to receive service retirement allowances calculated as
provided in this section. Each system shall calculate the allowance using its
own criteria except that the member shall be allowed to substitute the member's
base salary from any system as the compensation used in calculating the
allowance.
(3) The service
retirement allowances from a system which, but for this section, would not be
allowed to be paid at this date based on the dual member's age ((shall))
may be ((either)) received immediately or deferred to a later
date. The allowances shall be actuarially adjusted from the earliest age
upon which the combined service would have made such dual member eligible in
that system((, or the dual member may choose to defer the benefit until
fully eligible)).
(4) The service
retirement eligibility requirements of RCW 41.40.180 shall apply to any dual
member whose prior system is plan I of the public employee's retirement system
established under chapter 41.40 RCW.
Sec. 4. RCW 41.54.030 and 1995 c
239 s 319 are each amended to read as follows:
(1) A dual member may
combine service in all systems for the purpose of:
(a) Determining the
member's eligibility to receive a service retirement allowance; and
(b) Qualifying for a
benefit under RCW 41.32.885(3).
(2) A dual member who
is eligible to retire under any system may elect to retire from all the
member's systems and to receive service retirement allowances calculated as
provided in this section. Each system shall calculate the allowance using its
own criteria except that the member shall be allowed to substitute the member's
base salary from any system as the compensation used in calculating the
allowance.
(3) The service
retirement allowances from a system which, but for this section, would not be
allowed to be paid at this date based on the dual member's age ((shall))
may be ((either)) received immediately or deferred to a later
date. The allowances shall be actuarially adjusted from the earliest age
upon which the combined service would have made such dual member eligible in
that system((, or the dual member may choose to defer the benefit until
fully eligible)).
(4) The service
retirement eligibility requirements of RCW 41.40.180 shall apply to any dual
member whose prior system is plan I of the public employee's retirement system
established under chapter 41.40 RCW.
Sec. 5. RCW 41.54.040 and 1993 c
519 s 16 and 1993 c 517 c 9 are each reenacted and amended to read as follows:
(1) The ((retirement))
allowances calculated under RCW 41.54.030 and sections 1 and 2 of this act
shall be paid separately by each respective current and prior system. Any
deductions from such separate payments shall be according to the provisions of
the respective systems.
(2) Postretirement
adjustments, if any, shall be applied by the respective systems based on the
payments made under subsection (1) of this section.
(3) ((If a dual
member dies in service in any system, the surviving spouse shall receive the
same benefit from each system that would have been received if the member were
active in the system at the time of death based on service actually established
in that system. However, this subsection does not make a surviving spouse
eligible for the survivor benefits provided in RCW 43.43.270.
(4))) The department shall adopt rules under chapter
34.05 RCW to ensure that where a dual member has service in a system
established under chapter 41.32, 41.40, 41.44, or 43.43 RCW; service in plan II
of the system established under chapter 41.26 RCW; and service under the city
employee retirement system for Seattle, Tacoma, or Spokane, the additional cost
incurred as a result of the dual member receiving a benefit under this chapter
shall be borne by the retirement system incurring the additional cost.
Sec. 6. RCW 41.54.070 and 1988 c
195 s 4 are each amended to read as follows:
The benefit granted by
this chapter shall not result in a total benefit less than would have been
received absent such benefit. The total sum of the retirement allowances
received under this chapter shall not exceed the ((smallest)) largest
amount the dual member would receive if all the service had been rendered in
any one system. When calculating the maximum benefit a dual member would
receive: (1) Military service granted under RCW 41.40.170(3) or 43.43.260
shall be based only on service accrued under chapter 41.40 or 43.43 RCW,
respectively; and (2) the calculation shall be made assuming that the dual
member did not defer any allowances pursuant to RCW 41.54.030(3). When a dual
member's combined retirement allowances would exceed the limitation imposed by
this section, the allowances shall be reduced by the systems on a proportional
basis, according to service.
