Z-0660.1  _______________________________________________

                          HOUSE BILL 1793

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representative Sheahan; by request of Washington State University

Read first time 02/10/97.  Referred to Committee on Appropriations.

Restoring service credit.

    AN ACT Relating to service credit; and amending RCW 41.50.165.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 41.50.165 and 1994 c 197 s 2 are each amended to read as follows:

    (1) Except for those affected by subsection (4) of this section, a member of a retirement system specified by RCW 41.50.030 and 28B.10.400 or((,)) one previously established by the state but closed to new membership, may, as provided in each retirement system:

    (a) Establish allowable membership service not previously credited;

    (b) Restore all or a part of that previously credited membership service represented by withdrawn contributions; or

    (c) Restore service credit represented by a lump sum payment in lieu of benefits.

    (2) Persons who previously have failed to:

    (a) Establish service credit for service previously earned; or

    (b) Reestablish service credit by the restoration of withdrawn contributions or repayment of a lump sum payment in lieu of a benefit, may now establish or reestablish such service credit by paying the actuarial value of the resulting increase in their benefit in a manner defined by the department.  However, service performed under the provisions of RCW 28B.10.400 and not transferred to chapter 41.40 RCW under the provisions of RCW 41.40.501, decodified by section 4, chapter 35, Laws of 1991, are eligible to be reestablished by this section.  In addition, service performed and eligible for service credit under chapter 41.40 RCW, but not eligible for service credit authorized by the provision of RCW 28B.10.400, are eligible to be established by this section.

    (3) Any establishment of service credit for service previously rendered, restoration of service credit destroyed, or repayment of a lump sum received in lieu of benefit must be completed prior to retirement.

    (4) Service credit is established for or restored to the period in which the service credit is earned.

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