_______________________________________________
HOUSE
BILL 1102
_______________________________________________
Passed
Legislature - 1997 Regular Session
State
of Washington 55th Legislature 1997 Regular Session
By
Read
first time 01/14/97. Referred to Committee on Appropriations.
Retirement benefits based on excess compensation.
AN
ACT Relating to retirement benefits based on the definition of excess
compensation; and amending RCW 41.50.150.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
41.50.150 and 1995 c 244 s 1 are each amended to read as follows:
(1)
The employer of any employee whose retirement benefits are based in part on
excess compensation, as defined in this section, shall, upon receipt of a billing
from the department, pay into the appropriate retirement system the present
value at the time of the employee's retirement of the total estimated cost of
all present and future benefits from the retirement system attributable to the
excess compensation. The state actuary shall determine the estimated cost
using the same method and procedure as is used in preparing fiscal note costs
for the legislature. However, the director may in the director's discretion
decline to bill the employer if the amount due is less than fifty dollars.
Accounts unsettled within thirty days of the receipt of the billing shall be
assessed an interest penalty of one percent of the amount due for each month or
fraction thereof beyond the original thirty-day period.
(2)
"Excess compensation," as used in this section, includes ((any
payment that was)) the following payments, if used in the
calculation of the employee's retirement allowance((, except regular salary
and overtime compensated at up to twice the regular rate of pay. Excess
compensation includes but is not limited to)):
(a)
A cash out of unused annual leave in excess of two hundred forty hours of such
leave. "Cash out" for purposes of this subsection means:
(i)
Any payment in lieu of an accrual of annual leave; or
(ii)
Any payment added to salary or wages, concurrent with a reduction of annual
leave;
(b)
A cash out of any other form of leave;
(c)
A payment for, or in lieu of, any personal expense or transportation allowance to
the extent that payment qualifies as reportable compensation in the member's
retirement system;
(d)
The portion of any payment, including overtime payments, that exceeds twice the
regular daily or hourly rate of pay; and
(e)
Any ((other)) termination or severance payment.
(3)
This section applies to the retirement systems listed in RCW 41.50.030 and to
retirements occurring on or after March 15, 1984. Nothing in this section is
intended to amend or determine the meaning of any definition in chapter 2.10,
2.12, 41.26, 41.32, 41.40, or 43.43 RCW or to determine in any manner what
payments are includable in the calculation of a retirement allowance under such
chapters.
(4)
An employer is not relieved of liability under this section because of the
death of any person either before or after the billing from the department.
Passed the House February 28, 1997.
Passed the Senate April 17, 1997.
Approved by the Governor
April 26, 1997.
Filed
in Office of Secretary of State April 26, 1997.
