SENATE BILL REPORT

                   SB 5225

              As Reported By Senate Committee On:

                Ways & Means, February 6, 1997

Title:  An act relating to retirement credit for leave for legislative service.

Brief Description:  Providing retirement credit for leave for legislative service.

Sponsors:  Senators Franklin, Winsley, Bauer, Long, Fraser 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. 5225 be substituted therefor, and the substitute bill do pass.

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

Staff:  Debrah Kime (786-7454)

Background:  Members of the Teachers Retirement System, Public Employees Retirement System, and Law Enforcement Officers and Fire Fighters Retirement Systems may earn service credit while serving as elected officials in the Washington State Legislature.  Members of the Washington State Patrol Retirement System (WSPRS) and participants in TIAA/CREF (Teachers Insurance and Annuity Association/College Retirement Equities Fund, a nonprofit retirement system for higher education faculty) do not have this option.

Summary of Substitute Bill:  Washington State Patrol members serving in the Legislature on or after January 1, 1995 may continue to earn service credit during the legislative session.  Member and employer contributions are based on the compensation the member would have earned.  No service is credited after a member separates from employment with the State Patrol.

TIAA/CREF members serving in the Legislature on or after January 1, 1997 may elect to continue their participation in that program during legislative service.  The employing institution of higher learning pays the employee=s salary attributable to legislative service and corresponding employer contributions on that salary.  The Legislature reimburses the institution for both the salary and the employer contributions.

Substitute Bill Compared to Original Bill:  The substitute bill clarifies that the employee=s retirement plan contribution shall be matched.

Appropriation:  None.

Fiscal Note:  Requested on January 30, 1997.

Effective Date:  Ninety days after adjournment in which the bill in passed.

Testimony For:  The bill may encourage others to work in the Legislature.

Testimony Against:  None.

Testified:  Senator Franklin, prime sponsor (pro); Mark Soper, Washington State Patrol Troopers Association (pro).