SENATE BILL REPORT

                   SB 5218

              As Reported by Senate Committee On:

                Ways & Means, February 6, 1997

Title:  An act relating to restrictions on postretirement employment.

Brief Description:  Placing restrictions on postretirement employment.

Sponsors:  Senators Fraser, Winsley, Long, Bauer, Franklin, Roach and Loveland; by request of Joint Committee on Pension Policy.

Brief History:

Committee Activity:  Ways & Means:  2/5/97, 2/6/97 [DPS].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 5218 be substituted therefor, and the substitute bill do pass.

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

Staff:  Debrah Kime (786-7454)

Background:  An active member in the Public Employees Retirement System Plan I and II, Teachers Retirement System Plan I, II, and III, and Law Enforcement Officers and Fire Fighters Retirement System Plan II may retire and subsequently return to work.     

Summary of Substitute Bill: ASeparation from service@ is defined as the date the member=s employer reports to Department of Retirement System that the person has terminated all employment.

If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree=s monthly retirement allowance is reduced by 52 percent for every seven hours worked by a TRS retiree during that month and for every eight hours worked by a PERS member during that month.  The reduction is applied each month until the retiree remains absent from employment with an employer for one full calendar month.

The definition of an employee is clarified.

Substitute Bill Compared to Original Bill:  The substitute makes technical amendments to further clarify points made in the bill.

Appropriation:  None.

Fiscal Note:  Requested on January 20, 1997.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.