AN
ACT Relating to the transfer of seasonal and military leave of absence
employees to the public employees' retirement system plan 3; and amending RCW
41.40.795.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
41.40.795 and 2000 c 247 s 304 are each amended to read as follows:
(1)
As used in this section, unless the context clearly requires otherwise:
(a)
"Transfer period" means the time during which a member of one of the
groups of plan 2 members identified in subsection (2) of this section may
choose to irrevocably transfer from plan 2 to plan 3.
(b)
"Transfer basis" means the accumulated contributions present in a
member's savings fund on March 1, 2002, less fifty percent of any contributions
made pursuant to RCW 41.50.165(2), which is the basis for calculation of the
plan 2 to plan 3 additional transfer payment.
(c)
"Additional transfer payment date" means June 1, 2003, the date of
the additional transfer payment made according to subsection (6) of this
section.
(2)
Every plan 2 member employed by an employer in an eligible position has the
option during their transfer period to make an irrevocable transfer to plan 3
according to the following schedule:
(a)
For those members employed by state agencies and institutes of higher education
the transfer period means the period between March 1, 2002, and September 1,
2002.
(b)
For those members employed by other organizations the transfer period means the
period between September 1, 2002, and June 1, 2003.
(c)
For those members employed by more than one employer within the retirement
system, and whose transfer period is different between one employer and
another, the member's transfer period is the last period that is available from
any of that member's employers within the retirement system.
(3)
All service credit in plan 2 shall be transferred to the defined benefit
portion of plan 3.
(4)(a)
Anyone who first became a state or higher education member of plan 2 before
March 1, 2002, or a local government member of plan 2 before September 1, 2002,
who wishes to transfer to plan 3 after their transfer period may transfer
during the month of January in any following year, provided that the member
earns service credit for that month.
(b)
Anyone who chose to become a state or higher education member of plan 2 on or
after March 1, 2002, or a local government member of plan 2 on or after
September 1, 2002, is prohibited from transferring to plan 3 under (a) of this
subsection.
(5)
The accumulated contributions in plan 2, less fifty percent of any
contributions made pursuant to RCW 41.50.165(2) shall be transferred to the
member's account in the defined contribution portion established in chapter
41.34 RCW, pursuant to procedures developed by the department and subject to
RCW 41.34.090. Contributions made pursuant to RCW 41.50.165(2) that are not
transferred to the member's account shall be transferred to the fund created in
RCW 41.50.075(3), except that interest earned on all such contributions shall
be transferred to the member's account.
(6)
((Anyone who requests to transfer under this section during their transfer
period, and establishes)) Those members employed by state agencies and
institutions of higher education who request to transfer under this section
during their transfer period and establish service credit for June 2002, and
those members employed by other organizations and who establish service
credit for either June 2002 or February 2003, shall have their member
account:
(a)
If a member's transfer period is that described in subsection (2)(a) of this
section, increased by one hundred ten percent of the transfer basis;
(b)
If a member's transfer period is that described in subsection (2)(b) of this
section, increased by one hundred eleven percent of the transfer basis; and
(c)
Deposited into the member's individual account on the additional transfer
payment date.
(7)
If a member who requests to transfer dies before June 1, 2003, the additional
payment provided by this section shall be paid to the member's estate, or the
person or persons, trust, or organization the member nominated by written designation
duly executed and filed with the department.
(8)
Anyone previously retired from plan 2 is prohibited from transferring to plan
3.
(9) The legislature reserves the right to discontinue the right to
transfer under this section and to modify and to discontinue the right to an
additional payment under this section for any plan 2 members who have not
previously transferred to plan 3.
