Z-0375.1 _______________________________________________
SENATE BILL 5146
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State of Washington 57th Legislature 2001 Regular Session
By Senators Franklin, Winsley, Honeyford, Carlson, Long, Fraser, Kohl‑Welles, Rasmussen and Haugen; by request of Joint Committee on Pension Policy
Read first time 01/12/2001. Referred to Committee on Ways & Means.
AN ACT Relating to reducing the law enforcement officers' and fire fighters' retirement system plan 2 disability actuarial reduction age from fifty-five to fifty-three; amending RCW 41.26.470 and 41.26.470; creating a new section; providing an effective date; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 41.26.470 and 1999 c 135 s 1 are each amended to read as follows:
(1) A member of the
retirement system who becomes totally incapacitated for continued employment by
an employer as determined by the director shall be eligible to receive an
allowance under the provisions of RCW 41.26.410 through 41.26.550. Such member
shall receive a monthly disability allowance computed as provided for in RCW
41.26.420 and shall have such allowance actuarially reduced to reflect the
difference in the number of years between age at disability and the attainment
of age ((fifty-five)) fifty-three.
(2) Any member who receives an allowance under the provisions of this section shall be subject to such comprehensive medical examinations as required by the department. If such medical examinations reveal that such a member has recovered from the incapacitating disability and the member is no longer entitled to benefits under Title 51 RCW, the retirement allowance shall be canceled and the member shall be restored to duty in the same civil service rank, if any, held by the member at the time of retirement or, if unable to perform the duties of the rank, then, at the member's request, in such other like or lesser rank as may be or become open and available, the duties of which the member is then able to perform. In no event shall a member previously drawing a disability allowance be returned or be restored to duty at a salary or rate of pay less than the current salary attached to the rank or position held by the member at the date of the retirement for disability. If the department determines that the member is able to return to service, the member is entitled to notice and a hearing. Both the notice and the hearing shall comply with the requirements of chapter 34.05 RCW, the Administrative Procedure Act.
(3) Those members subject to this chapter who became disabled in the line of duty on or after July 23, 1989, and who receive benefits under RCW 41.04.500 through 41.04.530 or similar benefits under RCW 41.04.535 shall receive or continue to receive service credit subject to the following:
(a) No member may receive more than one month's service credit in a calendar month.
(b) No service credit under this section may be allowed after a member separates or is separated without leave of absence.
(c) Employer contributions shall be paid by the employer at the rate in effect for the period of the service credited.
(d) Employee contributions shall be collected by the employer and paid to the department at the rate in effect for the period of service credited.
(e) State contributions shall be as provided in RCW 41.26.450.
(f) Contributions shall be based on the regular compensation which the member would have received had the disability not occurred.
(g) The service and compensation credit under this section shall be granted for a period not to exceed six consecutive months.
(h) Should the legislature revoke the service credit authorized under this section or repeal this section, no affected employee is entitled to receive the credit as a matter of contractual right.
(4)(a) If the recipient of a monthly retirement allowance under this section dies before the total of the retirement allowance paid to the recipient equals the amount of the accumulated contributions at the date of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the recipient has nominated by written designation duly executed and filed with the director, or, if there is no such designated person or persons still living at the time of the recipient's death, then to the surviving spouse, or, if there is neither such designated person or persons still living at the time of his or her death nor a surviving spouse, then to his or her legal representative.
(b) If a recipient of a monthly retirement allowance under this section died before April 27, 1989, and before the total of the retirement allowance paid to the recipient equaled the amount of his or her accumulated contributions at the date of retirement, then the department shall pay the balance of the accumulated contributions to the member's surviving spouse or, if there is no surviving spouse, then in equal shares to the member's children. If there is no surviving spouse or children, the department shall retain the contributions.
(5) Should the disability retirement allowance of any disability beneficiary be canceled for any cause other than reentrance into service or retirement for service, he or she shall be paid the excess, if any, of the accumulated contributions at the time of retirement over all payments made on his or her behalf under this chapter.
Sec. 2. RCW 41.26.470 and 2000 c 247 s 1104 are each amended to read as follows:
(1) A member of the
retirement system who becomes totally incapacitated for continued employment by
an employer as determined by the director shall be eligible to receive an
allowance under the provisions of RCW 41.26.410 through 41.26.550. Such member
shall receive a monthly disability allowance computed as provided for in RCW
41.26.420 and shall have such allowance actuarially reduced to reflect the
difference in the number of years between age at disability and the attainment
of age ((fifty-five)) fifty-three.
(2) Any member who receives an allowance under the provisions of this section shall be subject to such comprehensive medical examinations as required by the department. If such medical examinations reveal that such a member has recovered from the incapacitating disability and the member is no longer entitled to benefits under Title 51 RCW, the retirement allowance shall be canceled and the member shall be restored to duty in the same civil service rank, if any, held by the member at the time of retirement or, if unable to perform the duties of the rank, then, at the member's request, in such other like or lesser rank as may be or become open and available, the duties of which the member is then able to perform. In no event shall a member previously drawing a disability allowance be returned or be restored to duty at a salary or rate of pay less than the current salary attached to the rank or position held by the member at the date of the retirement for disability. If the department determines that the member is able to return to service, the member is entitled to notice and a hearing. Both the notice and the hearing shall comply with the requirements of chapter 34.05 RCW, the Administrative Procedure Act.
(3) Those members subject to this chapter who became disabled in the line of duty on or after July 23, 1989, and who receive benefits under RCW 41.04.500 through 41.04.530 or similar benefits under RCW 41.04.535 shall receive or continue to receive service credit subject to the following:
(a) No member may receive more than one month's service credit in a calendar month.
(b) No service credit under this section may be allowed after a member separates or is separated without leave of absence.
(c) Employer contributions shall be paid by the employer at the rate in effect for the period of the service credited.
(d) Employee contributions shall be collected by the employer and paid to the department at the rate in effect for the period of service credited.
(e) State contributions shall be as provided in RCW 41.45.060 and 41.45.067.
(f) Contributions shall be based on the regular compensation which the member would have received had the disability not occurred.
(g) The service and compensation credit under this section shall be granted for a period not to exceed six consecutive months.
(h) Should the legislature revoke the service credit authorized under this section or repeal this section, no affected employee is entitled to receive the credit as a matter of contractual right.
(4)(a) If the recipient of a monthly retirement allowance under this section dies before the total of the retirement allowance paid to the recipient equals the amount of the accumulated contributions at the date of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the recipient has nominated by written designation duly executed and filed with the director, or, if there is no such designated person or persons still living at the time of the recipient's death, then to the surviving spouse, or, if there is neither such designated person or persons still living at the time of his or her death nor a surviving spouse, then to his or her legal representative.
(b) If a recipient of a monthly retirement allowance under this section died before April 27, 1989, and before the total of the retirement allowance paid to the recipient equaled the amount of his or her accumulated contributions at the date of retirement, then the department shall pay the balance of the accumulated contributions to the member's surviving spouse or, if there is no surviving spouse, then in equal shares to the member's children. If there is no surviving spouse or children, the department shall retain the contributions.
(5) Should the disability retirement allowance of any disability beneficiary be canceled for any cause other than reentrance into service or retirement for service, he or she shall be paid the excess, if any, of the accumulated contributions at the time of retirement over all payments made on his or her behalf under this chapter.
NEW SECTION. Sec. 3. Any member of the retirement system that first received an allowance under RCW 41.26.470 after September 1, 2000, that was actuarially reduced from age fifty-five shall have their allowance recalculated to reflect an actuarial reduction from age fifty-three.
NEW SECTION. Sec. 4. Section 1 of this act expires March 1, 2002.
NEW SECTION. Sec. 5. Section 2 of this act takes effect March 1, 2002.
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