S-1985.1  _______________________________________________

 

                         SENATE BILL 6013

          _______________________________________________

 

State of Washington      55th Legislature     1997 Regular Session

 

By Senator Prince

 

Read first time 02/26/97.  Referred to Committee on Ways & Means.

Regulating retirement benefit plans of colleges and universities.


    AN ACT Relating to retirement benefit plans of colleges and universities; and amending RCW 28B.10.400 and 28B.10.420.

 

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

 

    Sec. 1.  RCW 28B.10.400 and 1979 ex.s. c 259 s 1 are each amended to read as follows:

    The boards of regents of the state universities, the boards of trustees of the regional universities and of The Evergreen State College, and the state board for community and technical colleges ((education)) are authorized and empowered:

    (1) To assist the faculties and such other employees as any such board may designate in the purchase of ((old age annuities or retirement income plans)) retirement benefits under such rules and regulations as any such board may prescribe.  County agricultural agents, home demonstration agents, 4-H club agents, and assistant county agricultural agents paid jointly by the Washington State University and the several counties shall be deemed to be full time employees of the Washington State University for the purposes hereof;

    (2) To provide, under such rules and regulations as any such board may prescribe for the faculty members or other employees under its supervision, for the retirement of any such faculty member or other employee ((on account of age or condition of health, retirement on account of age to be not earlier than the sixty-fifth birthday)):  PROVIDED, That ((such faculty member or such other employee may elect to retire at the earliest age specified for retirement by federal social security law:  PROVIDED FURTHER, That)) any supplemental payment authorized by subsection (3) of this section ((and paid as a result of retirement)) shall not be available before age sixty-two and that the supplemental payment paid to a retiree who retires before earlier than age sixty-five shall be at an actuarially reduced rate;

    (3) To pay to any such retired person or to ((his)) the retired person's designated beneficiary(s), each year after ((his)) the retired person's retirement, a supplemental amount which, when added to the amount of ((such annuity or)) the retirement ((income plan, or retirement income)) benefit pursuant to RCW 28B.10.415, received by him or his designated beneficiary(s) in such year, will not exceed fifty percent of the average annual salary paid to such retired person for his highest two consecutive years of full time service under ((an annuity or)) a retirement ((income)) benefit plan established pursuant to subsection (1) of this section at an institution of higher education:  PROVIDED, HOWEVER, That if such retired person prior to his retirement elected a supplemental payment survivors option, any such supplemental payments to such retired person or his designated beneficiary(s) shall be at actuarially reduced rates:  PROVIDED FURTHER, That if a faculty member or other employee of an institution of higher education who is a participant in a retirement benefit plan authorized by this section dies, or has died before retirement but after becoming eligible for retirement ((on account of age)), the designated beneficiary(s) shall be entitled to receive the supplemental payment authorized by this subsection (3) of this section to which such designated beneficiary(s) would have been entitled had ((said)) the deceased faculty member or other employee retired on the date of death after electing a supplemental payment survivors option:  PROVIDED FURTHER, That for the purpose of this subsection, the designated beneficiary(s) shall be (a) the surviving spouse of the retiree; or, (b) with the written consent of such spouse, if any, such other person or persons as shall have an insurable interest in the retiree's life and shall have been nominated by written designation duly executed and filed with the retiree's institution of higher education.

 

    Sec. 2.  RCW 28B.10.420 and 1979 c 14 s 1 are each amended to read as follows:

    (1) ((Except as provided otherwise in subsection (2) of this section, faculty members or other employees designated by the boards of regents of the state universities, the boards of trustees of the regional universities or of The Evergreen State College, or the state board for community college education pursuant to RCW 28B.10.400 through 28B.10.420 as now or hereafter amended shall be retired from their employment with their institutions of higher education not later than the end of the academic year next following their seventieth birthday.

    (2) As provided in this subsection,)) The board of regents of a state university, the board of trustees of a regional university or The Evergreen State College, or the state board for community and technical colleges education may reemploy any person who is "retired" ((pursuant to subsection (1) of this section, who applies for reemployment and who has reached seventy years of age on or after July 1, 1970)) under RCW 28B.10.400(2).  The following provisions shall govern such reemployment:

    (a) ((Prior to the reemployment, the board of regents, board of trustees, or state board shall have found that the person possesses outstanding qualifications which in the judgment of the board would permit the person to continue valuable service to the institution.

    (b))) The period of reemployment shall not be counted as service under, or result in any eligibility for benefits or increased benefits under, any state authorized or supported ((annuity or)) retirement ((income)) benefits plan.  Reemployment shall not result in the reemployed person or employer making any contributions to any such plan.

    (((c))) (b) No person may be reemployed on a full time basis if such person is receiving benefits under any state authorized or supported annuity or retirement income plan.  The reemployment of any person on a full time basis shall be immediately terminated upon the person's obtaining of any such benefits.

    (((d))) (c) A person may be reemployed on a part time basis and receive or continue to receive any benefits for which such person is eligible under any state authorized or supported ((annuity or)) retirement ((income)) benefits plan.  Such part time work, however, shall not exceed forty percent of full time employment during any year.

    (((e))) (d) A person reemployed pursuant to this section shall comply with all conditions of reemployment and all rules providing for the administration of this subsection which are prescribed or adopted by the board of regents, or board of trustees, or by the state board for community and technical colleges ((education)).

 


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