SENATE BILL REPORT

                   HB 1099

              As Reported By Senate Committee On:

                  Ways & Means, April 2, 1997

Title:  An act relating to transferring prior service in the law enforcement officers' and fire fighters' pension system plan I.

Brief Description:  Transferring law enforcement officers' and fire fighters' retirement system plan I service.

Sponsors:  Representatives Cooke, Ogden, Sehlin, Carlson, Wolfe, H. Sommers, Dyer, Cairnes, Murray and Mason; by request of Joint Committee on Pension Policy.

Brief History:

Committee Activity:  Ways & Means:  4/2/97 [DP].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass.

  Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Bauer, Brown, Fraser, Kohl, Long, Loveland, Rossi, Schow, Sheldon, Snyder, Swecker, Thibaudeau, Winsley and Zarelli.

Staff:  Debrah Kime (786-7454)

Background: Current law regarding portability provisions does not cover Law Enforcement Officers and Fire Fighters Retirement System (LEOFF) Plan I members.  If a former LEOFF I member receives a pension from LEOFF I and from another state retirement system, then each pension will be based on the service credit and salary earned in each system separately.

Summary of Bill:  Former LEOFF I members who are now active members of PERS, TRS or WSPRS are given the option to transfer their prior LEOFF I service credit to their current retirement system and plan.  Members who have withdrawn contributions from LEOFF I are given an opportunity to restore their contributions prior to transfer.  All ties with LEOFF I are severed, including post-retirement medical benefits, upon transfer.

If the individual seeking transfer is in an eligible TRS, PERS or WSPRS position as of July 1, 1997, the individual must file the decision to transfer in writing with the Department of Retirement Systems (DRS) no later than July 1, 1998.  If the individual is not in an eligible position as of July 1, 1998, he or she must file their decision to transfer with the DRS no later than one year from the date they are employed in an eligible position.

Member contributions are transferred to member's current retirement system and plan.  An additional transfer is made from LEOFF I to offset all increased costs in the member's current system and plan due to the transfer.

Transferred service credit does not count toward eligibility for PERS I or WSP military service credit.  After the transfer window closes, the member must pay the full cost of the increased benefit if he or she elects to transfer.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.