SENATE BILL REPORT

                   SB 6037

              As Passed Senate, February 9, 2000

Title:  An act relating to rescinding a retirement allowance agreement.

Brief Description:  Rescinding a retirement allowance agreement.

Sponsors:  Senators Shin and Prentice.

Brief History:

Committee Activity:  Ways & Means:  3/3/99, 3/4/99 [DP]; 1/26/00 [DP].

Passed Senate, 3/12/99, 44-0; 2/9/00, 47-0.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass.

  Signed by Senators Loveland, Chair; Brown, Vice Chair; Fairley, Fraser, Honeyford, Kline, Kohl-Welles, Long, McDonald, Rasmussen, Rossi, B. Sheldon, Snyder, Spanel, Thibaudeau, Winsley and Zarelli.

Staff:  Pete Cutler (786-7454)

Background:  Upon retirement, a member of the Public Employees Retirement System, Plan 1 (PERS 1) may choose a joint and survivor retirement allowance option.  The joint and survivor option provides a reduced allowance to the retiree and, upon the death of the retiree, a continuing allowance to the beneficiary of the survivor option.  The survivor option and beneficiary are selected at retirement and neither may be changed thereafter.

Summary of Bill:   If the beneficiary of a PERS 1 joint and survivor option violates a restraining order issued on behalf of the PERS 1 retiree, the retiree may rescind the beneficiary's entitlement to the joint and survivor option.  The retiree must first obtain permission of a court, and must forward a certified copy of the court order to the Department of Retirement Systems.  The retiree's benefit will not increase by result of the rescission and the retiree may not select another beneficiary.  The change applies to all current and future PERS 1 retirees.

Appropriation:  None.

Fiscal Note:  Requested on March 1, 1999.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.