S-1838.1  _______________________________________________

                    SUBSTITUTE SENATE BILL 5031

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Long, Fraser, Winsley, Franklin, Bauer, Jacobsen, Roach, Johnson, Kline and Rasmussen; by request of Joint Committee on Pension Policy)

Read first time 02/25/1999.

Sharing extraordinary investment gains in the teachers' retirement system plan 3.

    AN ACT Relating to the sharing of extraordinary investment gains in the teachers' retirement system plan 3; amending RCW 41.50.145; creating new sections; and declaring an emergency.

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

NEW SECTION. Sec. 1.  (1) On or before July 1, 1999, the member account of a person meeting the requirements of this section shall be credited by the 1999 retroactive extraordinary investment gain amount.

    (2) The following persons are eligible for the benefit provided in subsection (1) of this section:

    (a) Any member of the teachers' retirement system plan 3 who transferred to plan 3 pursuant to RCW 41.32.817 on or after September 1, 1997, and before February 1, 1998; and

    (b) Had a balance of at least one thousand dollars in contributions and interest credited to their member's individual account pursuant to chapter 41.32 RCW by August 31, 1997; and

    (i) Who earned service credit during the twelve-month period from September 1, 1996, to August 31, 1997; or

    (ii) Who:

    (A) Completed ten service credit years; or

    (B) Completed five service credit years, including twelve service months after attaining age fifty-four; or

    (C) Completed five service credit years by July 1, 1996, under plan 2.

    (3) The 1999 retroactive extraordinary investment gain amount shall be calculated as follows:

    (a) An amount equal to the average benefit per year of service paid to members of the teachers' retirement system plan 3 in 1998, pursuant to section 309, chapter 341, Laws of 1998.

    (b) Distributed to persons eligible for the benefit provided in subsection (1) of this section on the basis of their service credit total on August 31, 1997.

    Sec. 2.  RCW 41.50.145 and 1998 c 341 s 515 are each amended to read as follows:

    (1) If the department determines that due to employer error a member of plan 3 has suffered a loss of investment return, the employer shall pay the department for credit to the member's account the amount determined by the department as necessary to correct the error.

    (2) If the department determines that due to departmental error a member of plan 3 has suffered a loss of investment return, the department shall credit to the member's account from the ((school employees')) appropriate retirement system combined plan 2 and 3 fund the amount determined by the department as necessary to correct the error.

NEW SECTION. Sec. 3.  Section 1 of this act is added to chapter 41.34 RCW, but because of its temporary nature, shall not be codified.

NEW SECTION. Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

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