S-0570.1  _______________________________________________

 

                         SENATE BILL 5281

          _______________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Senators Shin, Costa, Prentice, Rasmussen, Kline and Kohl‑Welles

 

Read first time 01/17/2001.  Referred to Committee on Judiciary.

Rescinding retirement benefits for restraining order violations.


    AN ACT Relating to rescinding a retirement allowance agreement; amending RCW 41.40.188; and creating a new section.

 

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

 

    Sec. 1.  RCW 41.40.188 and 2000 c 186 s 7 are each amended to read as follows:

    (1) Upon retirement for service as prescribed in RCW 41.40.180 or retirement for disability under RCW 41.40.210 or 41.40.230, a member shall elect to have the retirement allowance paid pursuant to one of the following options calculated so as to be actuarially equivalent to each other.

    (a) Standard allowance.  A member electing this option shall receive a retirement allowance payable throughout such member's life.  However, if the retiree dies before the total of the retirement allowance paid to such retiree equals the amount of such retiree's accumulated contributions at the time of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the retiree shall have nominated by written designation duly executed and filed with the department; or if there be no such designated person or persons still living at the time of the retiree's death, then to the surviving spouse; or if there be neither such designated person or persons still living at the time of death nor a surviving spouse, then to the retiree's legal representative.

    (b)(i) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a person nominated by the member by written designation duly executed and filed with the department at the time of retirement.  The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.

    (ii) Where a restraining order has been issued on behalf of a retiree against the designated beneficiary of the survivor option, as selected by the retiree, and the court finds that the beneficiary has violated that restraining order, the retiree, with permission of the court, may rescind the beneficiary's entitlement to the survivor benefit.  The retiree is obligated to forward a certified copy of the court order to the department of retirement systems and the rescission is effective upon receipt.  The retiree's benefit will not increase by result of the rescission and the retiree may not select another beneficiary.

    (c) A member may elect to include the benefit provided under RCW 41.40.640 along with the retirement options available under this section.  This retirement allowance option shall be calculated so as to be actuarially equivalent to the options offered under this subsection.

    (2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection.  If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department shall pay a joint and fifty percent survivor benefit calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.

    (b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:

    (i) The department shall honor the designation as if made by the member under subsection (1) of this section; and

    (ii) The spousal consent provisions of (a) of this subsection do not apply.

    (3)(a) Any member who retired before January 1, 1996, and who elected to receive a reduced retirement allowance under subsection (1)(b) or (2) of this section is entitled to receive a retirement allowance adjusted in accordance with (b) of this subsection, if they meet the following conditions:

    (i) The retiree's designated beneficiary predeceases or has predeceased the retiree; and

    (ii) The retiree provides to the department proper proof of the designated beneficiary's death.

    (b) The retirement allowance payable to the retiree, as of July 1, 1998, or the date of the designated beneficiary's death, whichever comes last, shall be increased by the percentage derived in (c) of this subsection.

    (c) The percentage increase shall be derived by the following:

    (i) One hundred percent multiplied by the result of (c)(ii) of this subsection converted to a percent;

    (ii) Subtract one from the reciprocal of the appropriate joint and survivor option factor;

    (iii) The joint and survivor option factor shall be from the table in effect as of July 1, 1998.

    (d) The adjustment under (b) of this subsection shall accrue from the beginning of the month following the date of the designated beneficiary's death or from July 1, 1998, whichever comes last.

    (4) No later than July 1, 2001, the department shall adopt rules that allow a member additional actuarially equivalent survivor benefit options, and shall include, but are not limited to:

    (a)(i) A retired member who retired without designating a survivor beneficiary shall have the opportunity to designate their spouse from a postretirement marriage as a survivor during a one-year period beginning one year after the date of the postretirement marriage provided the retirement allowance payable to the retiree is not subject to periodic payments pursuant to a property division obligation as provided for in RCW 41.50.670.

    (ii) A member who entered into a postretirement marriage prior to the effective date of the rules adopted pursuant to this subsection and satisfies the conditions of (a)(i) of this subsection shall have one year to designate their spouse as a survivor beneficiary following the adoption of the rules.

    (b) A retired member who elected to receive a reduced retirement allowance under this section and designated a nonspouse as survivor beneficiary shall have the opportunity to remove the survivor designation and have their future benefit adjusted.

    (c) The department may make an additional charge, if necessary, to ensure that the benefits provided under this subsection remain actuarially equivalent.

 

    NEW SECTION.  Sec. 2.  Section 1 of this act is applicable to all current and future retirees.

 


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