[atlas:bill]

AN ACT Relating to authorizing retirement incentive programs; amending RCW 41.32.480, 41.32.765, 41.32.875, 41.35.420, 41.35.680, 41.40.180, 41.40.630, 41.40.820, and 43.43.250; adding a new chapter to Title 41 RCW; and providing an expiration date.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Employer" means the state of Washington, counties, cities, towns, or any other political subdivision, whose employees are members of a retirement system under RCW 41.50.030 (1) (a) through (d) and (4).

(2) "Early retirement" means the authorization under this chapter of temporary retirement eligibility for the retirement systems under RCW 41.50.030 (1) (a) through (d) and (4).

(3) "Eligible position" means a position that conforms to the requirements for membership in a retirement system under RCW 41.50.030 (1) (a) through (d) and (4).

(4) "Normal retirement" means that retirement, based on service or service and age, of a member of a retirement system when the full retirement allowance is provided.

NEW SECTION. Sec. 2. An employer may temporarily utilize a retirement incentive program as provided in section 3(1) of this act if it has encountered or will be encountering one or more of the following emergent and compelling conditions:

(1) A significant reduction in force due to either (a) budgetary or other fiscal adjustments or (b) significant personnel restructuring;

(2) The closure of one or more of its facilities; and

(3) The privatization of one or more of its agencies or services it provides.

NEW SECTION. Sec. 3. (1) An employer may offer, adhering to all laws or regulations of the state or federal government:

(a) Retirement, with a reduction in the retirement allowance of three percent per year for each year of difference between the employee's age and the full retirement age for the employee's plan, to those targeted employees who are within five years of normal retirement;

(b) Retirement, with full actuarial reduction of the retirement allowance, to other targeted employees who are not within five years of normal retirement; and

(c) Other incentives the agency or political subdivision declares appropriate, including incentives to those already eligible to retire on normal retirement.

(2) The employer providing early retirement as a part of a retirement incentive program under subsection (1)(a) or (b) of this section is required to pay the full actuarial present value of any increase in the cost to the respective retirement system or systems resulting from persons taking the early retirement. This payment may be made during a five-year period beginning on the date of retirement. Interest shall be charged on payments made by the employer after the date of the employees' retirement at a rate determined by the director.

(3) An employee who accepts an employer's offer to retire under this section shall have their retirement allowance suspended immediately upon reemployment with that employer, and the retired employee's retirement allowance shall remain suspended until the retired employee remains absent from employment with that employer for one full calendar month.

(4) An employee who accepts an employer's offer to retire under this section who works more than eight hundred sixty-seven hours of postretirement employment with any employer participating in any of the Washington state retirement systems shall have their monthly retirement allowance suspended until the retiree remains absent from employment with an employer for one full calendar month.

NEW SECTION. Sec. 4. Upon notification by a political subdivision, the director of retirement systems shall, within fifteen calendar days of receipt, inform the certified or requesting employer of the procedures and reporting necessary to carry out any retirement incentive program.

Sec. 5. RCW 41.32.480 and 1997 c 254 s 4 are each amended to read as follows:

(1) Any member who separates from service after having completed thirty years of creditable service may retire upon the approval by the department of an application for retirement filed on the prescribed form. Upon retirement the member shall receive a retirement allowance consisting of an annuity which shall be the actuarial equivalent of his or her accumulated contributions at his or her age of retirement and a pension as provided in RCW 41.32.497. Effective July 1, 1967, anyone then receiving a retirement allowance or a survivor retirement allowance under this chapter, based on thirty-five years of creditable service, and who has established more than thirty-five years of service credit with the retirement system, shall thereafter receive a retirement allowance based on the total years of service credit established.

(2) Any member who has attained age sixty years, but who has completed less than thirty years of creditable service, upon separation from service, may retire upon the approval by the department of an application for retirement filed on the prescribed form. Upon retirement the member shall receive a retirement allowance consisting of an annuity which shall be the actuarial equivalent of his or her accumulated contributions at his or her age of retirement and a pension as provided in RCW 41.32.497.

(3) Any member who has attained age fifty-five years and who has completed not less than twenty-five years of creditable service, upon separation from service, may retire upon the approval by the department of an application for retirement filed on the prescribed form. Upon retirement the member shall receive a retirement allowance which shall be the actuarial equivalent of his or her accumulated contributions at his or her age of retirement and a pension as provided in RCW 41.32.497. An individual who has retired pursuant to this subsection, on or after July 1, 1969, shall not suffer an actuarial reduction in his or her retirement allowance, except as the allowance may be actuarially reduced pursuant to the options contained in RCW 41.32.530. The chapter 193, Laws of 1974 ex. sess. amendment to this section shall be retroactive to July 1, 1969.

(4) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 6. RCW 41.32.765 and 2000 c 247 s 902 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member with at least five service credit years of service who has attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.760.

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years of service who has attained at least age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.760, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.760, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(4) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 7. RCW 41.32.875 and 2000 c 247 s 903 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has:

(a) Completed ten service credit years; or

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

shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(4) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 8. RCW 41.35.420 and 2000 c 247 s 905 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member with at least five service credit years who has attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.400.

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.400, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.400, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(4) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 9. RCW 41.35.680 and 2000 c 247 s 906 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has:

(a) Completed ten service credit years; or

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

(c) Completed five service credit years by September 1, 2000, under the public employees' retirement system plan 2 and who transferred to plan 3 under RCW 41.35.510;

shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(4) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 10. RCW 41.40.180 and 1982 1st ex.s. c 52 s 21 are each amended to read as follows:

(1) Any member with five years of creditable service who has attained age sixty and any original member who has attained age sixty may retire on written application to the director, setting forth at what time the member desires to be retired: PROVIDED, That in the national interest, during time of war engaged in by the United States, the director may extend beyond age sixty, subject to the provisions of subsection (2) of this section, the age at which any member may be eligible to retire.

(2) Any member who has completed thirty years of service may retire on written application to the director setting forth at what time the member desires to be retired, subject to war measures.

(3) Any member who has completed twenty-five years of service and attained age fifty-five may retire on written application to the director setting forth at what time the member desires to be retired, subject to war measures.

(4) Any individual who is eligible to retire pursuant to subsections (1) through (3) of this section shall be allowed to retire while on any authorized leave of absence not in excess of one hundred and twenty days.

(5) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 11. RCW 41.40.630 and 2000 c 247 s 901 are each amended to read as follows:

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.620, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.620, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(4) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 12. RCW 41.40.820 and 2000 c 247 s 309 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has:

(a) Completed ten service credit years; or

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

(c) Completed five service credit years by the transfer payment date specified in RCW 41.40.795, under the public employees' retirement system plan 2 and who transferred to plan 3 under RCW 41.40.795;

shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.790.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.790, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.790, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(4) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

Sec. 13. RCW 43.43.250 and 1982 1st ex.s. c 52 s 26 are each amended to read as follows:

(1) Any member who has attained the age of sixty years shall be retired on the first day of the calendar month next succeeding that in which said member shall have attained the age of sixty: PROVIDED, That the requirement to retire at age sixty shall not apply to a member serving as chief of the Washington state patrol.

(2) Any member who has completed twenty-five years of credited service or has attained the age of fifty-five may apply to retire as provided in RCW 43.43.260, by completing and submitting an application form to the department, setting forth at what time the member desires to be retired.

(3) Subsections (1) and (2) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

NEW SECTION. Sec. 14. Sections 1 through 4 of this act constitute a new chapter in Title 41 RCW.

NEW SECTION. Sec. 15. This act expires June 30, 2003.