CERTIFICATION OF ENROLLMENT

 

                   ENGROSSED SENATE BILL 5143

 

 

                   Chapter 329, Laws of 2001

 

                         (partial veto)

 

                        57th Legislature

                      2001 Regular Session

 

 

STATE PATROL RETIREMENT SYSTEM

 

 

 

                    EFFECTIVE DATE:  7/1/01

Passed by the Senate April 16, 2001

  YEAS 47   NAYS 0

 

 

               BRAD OWEN

President of the Senate

 

Passed by the House April 10, 2001

  YEAS 92   NAYS 0

             CERTIFICATE

 

I, Tony M. Cook, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  ENGROSSED SENATE BILL 5143 as passed by the Senate and the House of Representatives on the dates hereon set forth.

 

 

              FRANK CHOPP

Speaker of the

      House of Representatives

            TONY M. COOK

                            Secretary

 

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

 

 

Approved May 15, 2001, with the exception of sections 1 and 2, which are vetoed.Place Style On Codes above, and Style Off Codes below.   

                                FILED          

 

 

             May 15, 2001 - 3:19 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                 Secretary of State

                 State of Washington


          _______________________________________________

 

                    ENGROSSED SENATE BILL 5143

          _______________________________________________

 

                      AS AMENDED BY THE HOUSE

 

             Passed Legislature - 2001 Regular Session

 

State of Washington      57th Legislature     2001 Regular Session

 

By Senators Long, Honeyford, Carlson, Franklin, Winsley, Fraser and Haugen; by request of Joint Committee on Pension Policy

 

Read first time 01/12/2001.  Referred to Committee on Ways & Means.

Modifying the Washington state patrol retirement system retirement and survivor benefits.     


    AN ACT Relating to the Washington state patrol retirement system retirement and survivor benefits; amending RCW 43.43.040, 43.43.120, 43.43.260, 43.43.270, 43.43.274, 43.43.278, and 41.45.060; adding new sections to chapter 43.43 RCW; adding a new section to chapter 41.45 RCW; repealing RCW 43.43.272, 43.43.276, and 43.43.300; providing an effective date; and declaring an emergency.

 

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

 

    *Sec. 1.  RCW 43.43.040 and 1998 c 194 s 1 are each amended to read as follows:

    (1) The chief of the Washington state patrol shall relieve from active duty Washington state patrol officers who, while in the performance of their official duties, or while on standby or available for duty, have been or hereafter may be injured or incapacitated to such an extent as to be mentally or physically incapable of active service:  PROVIDED, That:

    (a) Any officer disabled while performing line duty who is found by the chief to be physically incapacitated shall be placed on disability leave for a period not to exceed six months from the date of injury or the date incapacitated.  During this period, the officer shall be entitled to all pay, benefits, insurance, leave, and retirement contributions awarded to an officer on active status, less any compensation received through the department of labor and industries.  No such disability leave shall be approved until an officer has been unavailable for duty for more than forty consecutive work hours.  Prior to the end of the six-month period, the chief shall either place the officer on disability status or return the officer to active status.

    For the purposes of this section, "line duty" is active service which encompasses the traffic law enforcement duties and/or other law enforcement responsibilities of the state patrol.  These activities encompass all enforcement practices of the laws, accident and criminal investigations, or actions requiring physical exertion or exposure to hazardous elements.

    The chief shall define by rule the situations where a disability has occurred during line duty;

    (b) Benefits under this section for a disability that is incurred while in other employment will be reduced by any amount the officer receives or is entitled to receive from workers' compensation, social security, group insurance, other pension plan, or any other similar source provided by another employer on account of the same disability;

    (c) An officer injured while engaged in willfully tortious or criminal conduct shall not be entitled to disability benefits under this section; and

    (d) For members commissioned prior to January 1, 2003, should a disability beneficiary whose disability was not incurred in line of duty, prior to attaining age fifty, engage in a gainful occupation, the chief shall reduce the amount of his retirement allowance to an amount which when added to the compensation earned by him in such occupation shall not exceed the basic salary currently being paid for the rank the retired officer held at the time he was disabled.  All such disability beneficiaries under age fifty shall file with the chief every six months a signed and sworn statement of earnings and any person who shall knowingly swear falsely on such statement shall be subject to prosecution for perjury.  Should the earning capacity of such beneficiary be further altered, the chief may further alter his disability retirement allowance as indicated above.  The failure of any officer to file the required statement of earnings shall be cause for cancellation of retirement benefits.

    (2) ((Officers)) (a) Members commissioned prior to January 1, 2003, on disability status shall receive one-half of their compensation at the existing wage, during the time the disability continues in effect, less any compensation received through the department of labor and industries.  They shall be subject to mental or physical examination at any state institution or otherwise under the direction of the chief of the patrol at any time during such relief from duty to ascertain whether or not they are able to resume active duty.

    (b) Members commissioned on or after January 1, 2003, on disability status as a result of a line duty disability shall receive a line duty disability allowance of one-half of their compensation at the existing wage, during the time the disability continues in effect, less any compensation received through the department of labor and industries, and any retirement allowance under section 2 of this act.  They shall be subject to such comprehensive medical examinations as required by the chief of the patrol at any time during such relief from duty.  If these medical examinations reveal that a member has recovered from the incapacitating disability and the member is offered reemployment by the chief at a comparable compensation, the member shall cease to be eligible for this line duty disability allowance.

*Sec. 1 was vetoed.  See message at end of chapter.

 

    *NEW SECTION.  Sec. 2.  (1) A member of the retirement system commissioned on or after January 1, 2003, who becomes totally incapacitated for continued employment by an employer as determined by the department upon recommendation of the department shall be eligible to receive an allowance under RCW 43.43.260.  The member shall receive a monthly disability allowance computed as provided for in RCW 43.43.260 and shall have this allowance actuarially reduced to reflect the difference in the number of years between age at disability and the attainment of age fifty-five or from when the member could have attained twenty-five years of service, whichever is less.

    Any member who receives an allowance under the provisions of this section shall be subject to comprehensive medical examinations as required by the department.  If these medical examinations reveal that a member has recovered from the incapacitating disability and the member is offered reemployment by the chief at a comparable compensation, the member shall cease to be eligible for the allowance.

    (2) 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 the 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 designated person or persons still living at the time of the recipient's death, then to the surviving spouse, or if there is no 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.

*Sec. 2 was vetoed.  See message at end of chapter.

 

    Sec. 3.  RCW 43.43.120 and 1999 c 74 s 1 are each amended to read as follows:

    As used in the following sections, unless a different meaning is plainly required by the context:

    (1) "Retirement system" means the Washington state patrol retirement system.

    (2) "Retirement fund" means the Washington state patrol retirement fund.

    (3) "State treasurer" means the treasurer of the state of Washington.

    (4) "Member" means any person included in the membership of the retirement fund.

    (5) "Employee" means any commissioned employee of the Washington state patrol.

    (6)(a) "Cadet," for a person who became a member of the retirement system after June 12, 1980, is a person who has passed the Washington state patrol's entry-level oral, written, physical performance, and background examinations and is, thereby, appointed by the chief as a candidate to be a commissioned officer of the Washington state patrol.

    (b) "Cadet," for a person who became a member of the retirement system before June 12, 1980, is a trooper cadet, patrol cadet, or employee of like classification, employed for the express purpose of receiving the on-the-job training required for attendance at the state patrol academy and for becoming a commissioned trooper.  "Like classification" includes:  Radio operators or dispatchers; persons providing security for the governor or legislature; patrolmen; drivers' license examiners; weighmasters; vehicle safety inspectors; central wireless operators; and warehousemen.

    (7) "Beneficiary" means any person in receipt of retirement allowance or any other benefit allowed by this chapter.

    (8) "Regular interest" means interest compounded annually at such rates as may be determined by the director.

    (9) "Retirement board" means the board provided for in this chapter.

    (10) "Insurance commissioner" means the insurance commissioner of the state of Washington.

    (11) "Lieutenant governor" means the lieutenant governor of the state of Washington.

    (12) "Service" shall mean services rendered to the state of Washington or any political subdivisions thereof for which compensation has been paid.  Full time employment for seventy or more hours in any given calendar month shall constitute one month of service.  An employee who is reinstated in accordance with RCW 43.43.110 shall suffer no loss of service for the period reinstated subject to the contribution requirements of this chapter.  Only months of service shall be counted in the computation of any retirement allowance or other benefit provided for herein.  Years of service shall be determined by dividing the total number of months of service by twelve.  Any fraction of a year of service as so determined shall be taken into account in the computation of such retirement allowance or benefit.

    (13) "Prior service" shall mean all services rendered by a member to the state of Washington, or any of its political subdivisions prior to August 1, 1947, unless such service has been credited in another public retirement or pension system operating in the state of Washington.

    (14) "Current service" shall mean all service as a member rendered on or after August 1, 1947.

    (15)(a) "Average final salary," for members commissioned prior to January 1, 2003, shall mean the average monthly salary received by a member during the member's last two years of service or any consecutive two-year period of service, whichever is the greater, as an employee of the Washington state patrol; or if the member has less than two years of service, then the average monthly salary received by the member during the member's total years of service.

    (b) "Average final salary," for members commissioned on or after January 1, 2003, shall mean the average monthly salary received by a member for the highest consecutive sixty service credit months; or if the member has less than sixty months of service, then the average monthly salary received by the member during the member's total months of service.

    (16) "Actuarial equivalent" shall mean a benefit of equal value when computed upon the basis of such mortality table as may be adopted and such interest rate as may be determined by the director.

    (17) Unless the context expressly indicates otherwise, words importing the masculine gender shall be extended to include the feminine gender and words importing the feminine gender shall be extended to include the masculine gender.

    (18) "Director" means the director of the department of retirement systems.

    (19) "Department" means the department of retirement systems created in chapter 41.50 RCW.

    (20) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

    (21) "Contributions" means the deduction from the compensation of each member in accordance with the contribution rates established under ((RCW 43.43.300)) chapter 41.45 RCW.

    (22) "Annual increase" means as of July 1, 1999, seventy-seven cents per month per year of service which amount shall be increased each subsequent July 1st by three percent, rounded to the nearest cent.

    (23)(a) "Salary," for members commissioned prior to July 1, 2001, shall exclude any overtime earnings related to RCW 47.46.040, or any voluntary overtime, earned on or after July 1, 2001.

    (b) "Salary," for members commissioned on or after July 1, 2001, shall exclude any overtime earnings related to RCW 47.46.040 or any voluntary overtime, lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, holiday pay, or any form of severance pay.

    (24) "Plan 2" means the Washington state patrol retirement system plan 2, providing the benefits and funding provisions covering commissioned employees who first become members of the system on or after January 1, 2003.

 

    Sec. 4.  RCW 43.43.260 and 1994 c 197 s 34 are each amended to read as follows:

    Upon retirement from service as provided in RCW 43.43.250, a member shall be granted a retirement allowance which shall consist of:

    (1) A prior service allowance which shall be equal to two percent of the member's average final salary multiplied by the number of years of prior service rendered by the member.

    (2) A current service allowance which shall be equal to two percent of the member's average final salary multiplied by the number of years of service rendered while a member of the retirement system.

    (3)(a) Any member commissioned prior to January 1, 2003, with twenty-five years service in the Washington state patrol may have the member's service in the armed forces credited as a member whether or not the individual left the employ of the Washington state patrol to enter such armed forces:  PROVIDED, That in no instance shall military service in excess of five years be credited:  AND PROVIDED FURTHER, That in each instance, a member must restore all withdrawn accumulated contributions, which restoration must be completed on the date of the member's retirement, or as provided under RCW 43.43.130, whichever occurs first:  AND PROVIDED FURTHER, That this section shall not apply to any individual, not a veteran within the meaning of RCW 41.06.150, as now or hereafter amended:  AND PROVIDED FURTHER, That in no instance shall military service be credited to any member who is receiving full military retirement benefits pursuant to Title 10 United States Code, as now or hereafter amended.

    (b) A member who leaves the Washington state patrol to enter the armed forces of the United States shall be entitled to retirement system service credit for up to five years of military service.  This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

    (i) The member qualifies for service credit under this subsection if:

    (A) Within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces; and

    (B) The member makes the employee contributions required under section 11 of this act and RCW 41.45.067 within five years of resumption of service or prior to retirement, whichever comes sooner; or

    (C) Prior to retirement and not within ninety days of the member's honorable discharge or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

    (ii) Upon receipt of member contributions under (b)(i)(B) of this subsection, the department shall establish the member's service credit and shall bill the employer for its contribution required under RCW 41.45.060 for the period of military service, plus interest as determined by the department.

    (iii) The contributions required under (b)(i)(B) of this subsection shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave.

    (4) In no event shall the total retirement benefits from subsections (1), (2), and (3) of this section, of any member exceed seventy-five percent of the member's average final salary.

    (5) ((A yearly increase in retirement allowance which shall amount to two percent of the retirement allowance computed at the time of retirement.  This yearly increase shall be added to the retirement allowance on July 1st of each calendar year.)) Beginning July 1, 2001, and every year thereafter, the department shall determine the following information for each retired member or beneficiary whose retirement allowance has been in effect for at least one year:

    (a) The original dollar amount of the retirement allowance;

    (b) The index for the calendar year prior to the effective date of the retirement allowance, to be known as "index A";

    (c) The index for the calendar year prior to the date of determination, to be known as "index B"; and

    (d) The ratio obtained when index B is divided by index A.

    The value of the ratio obtained shall be the annual adjustment to the original retirement allowance and shall be applied beginning with the July payment.  In no event, however, shall the annual adjustment:

    (i) Produce a retirement allowance which is lower than the original retirement allowance;

    (ii) Exceed three percent in the initial annual adjustment; or

    (iii) Differ from the previous year's annual adjustment by more than three percent.

    For the purposes of this section, "index" means, for any calendar year, that year's average consumer price index for the Seattle-Tacoma-Bremerton Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

    The provisions of this section shall apply to all members presently retired and to all members who shall retire in the future.

 

    NEW SECTION.  Sec. 5.  (1) A member commissioned on or after January 1, 2003, upon retirement for service as prescribed in RCW 43.43.250 or disability retirement under RCW 43.43.040, shall elect to have the retirement allowance paid pursuant to 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 the member's life.  However, if the retiree dies before the total of the retirement allowance paid to the retiree equals the amount of the 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) 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 designated person.  Such person shall be 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.

    (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 member's spouse do not give written consent to an option under this section, the department will pay the member a joint and fifty percent survivor benefit and record the member's spouse as the beneficiary.  This benefit shall be 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) No later than January 1, 2003, 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.

 

    Sec. 6.  RCW 43.43.270 and 1989 c 108 s 1 are each amended to read as follows:

    For members commissioned prior to January 1, 2003:

    (1) The normal form of retirement allowance shall be an allowance which shall continue as long as the member lives.

    (2) If a member should die while in service the member's lawful spouse shall be paid an allowance which shall be equal to fifty percent of the average final salary of the member.  If the member should die after retirement the member's lawful spouse shall be paid an allowance which shall be equal to the retirement allowance then payable to the member or fifty percent of the final average salary used in computing the member's retirement allowance, whichever is less.  The allowance paid to the lawful spouse shall continue as long as the spouse lives:  PROVIDED, That if a surviving spouse who is receiving benefits under this subsection marries another member of this retirement system who subsequently predeceases such spouse, the spouse shall then be entitled to receive the higher of the two survivors' allowances for which eligibility requirements were met, but a surviving spouse shall not receive more than one survivor's allowance from this system at the same time under this subsection.  To be eligible for an allowance the lawful surviving spouse of a retired member shall have been married to the member prior to the member's retirement and continuously thereafter until the date of the member's death or shall have been married to the retired member at least two years prior to the member's death.

    (3) If a member should die, either while in service or after retirement, the member's surviving unmarried children under the age of eighteen years shall be provided for in the following manner:

    (a) If there is a surviving spouse, each child shall be entitled to a benefit equal to five percent of the final average salary of the member or retired member.  The combined benefits to the surviving spouse and all children shall not exceed sixty percent of the final average salary of the member or retired member; and

    (b) If there is no surviving spouse or the spouse should die, the child or children shall be entitled to a benefit equal to thirty percent of the final average salary of the member or retired member for one child and an additional ten percent for each additional child.  The combined benefits to the children under this subsection shall not exceed sixty percent of the final average salary of the member or retired member.  Payments under this subsection shall be prorated equally among the children, if more than one.

    (4) If a member should die in the line of duty while employed by the Washington state patrol, the member's surviving children under the age of twenty years and eleven months if attending any high school, college, university, or vocational or other educational institution accredited or approved by the state of Washington shall be provided for in the following manner:

    (a) If there is a surviving spouse, each child shall be entitled to a benefit equal to five percent of the final average salary of the member.  The combined benefits to the surviving spouse and all children shall not exceed sixty percent of the final average salary of the member;

    (b) If there is no surviving spouse or the spouse should die, the unmarried child or children shall be entitled to receive a benefit equal to thirty percent of the final average salary of the member or retired member for one child and an additional ten percent for each additional child.  The combined benefits to the children under this subsection shall not exceed sixty percent of the final average salary.  Payments under this subsection shall be prorated equally among the children, if more than one; and

    (c) If a beneficiary under this subsection reaches the age of twenty-one years during the middle of a term of enrollment the benefit shall continue until the end of that term.

    (5) The provisions of this section shall apply to members who have been retired on disability as provided in RCW 43.43.040 if the officer was a member of the Washington state patrol retirement system at the time of such disability retirement.

 

    NEW SECTION.  Sec. 7.  (1) For members commissioned on or after January 1, 2003, except as provided in RCW 11.07.010, if a member or a vested member who has not completed at least ten years of service dies, the amount of the accumulated contributions standing to such member's credit in the retirement system at the time of such member's death, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's estate, or such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department.  If there be no such designated person or persons still living at the time of the member's death, such member's accumulated contributions standing to such member's credit in the retirement system, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's estate, or such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department.  If there be no such designated person or persons still living at the time of the member's death, such member's accumulated contributions standing to such member's credit in the retirement system, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's surviving spouse as if in fact such spouse had been nominated by written designation, or if there be no such surviving spouse, then to such member's legal representatives.

    (2) If a member who is eligible for retirement or a member who has completed at least ten years of service dies, the surviving spouse or eligible child or children shall elect to receive either:

    (a) A retirement allowance computed as provided for in RCW 43.43.260, actuarially reduced by the amount of any lump sum benefit identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670 and actuarially adjusted to reflect a joint and one hundred percent survivor option under RCW 43.43.278 and if the member was not eligible for normal retirement at the date of death a further reduction from age fifty-five or when the member could have attained twenty-five years of service, whichever is less; if a surviving spouse who is receiving a retirement allowance dies leaving a child or children of the member under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority; if there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance share and share alike calculated under this section making the assumption that the ages of the spouse and member were equal at the time of the member's death; or

    (b)(i) The member's accumulated contributions, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670; or

    (ii) If the member dies, one hundred fifty percent of the member's accumulated contributions, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670.  Any accumulated contributions attributable to restorations made under RCW 41.50.165(2) shall be refunded at one hundred percent.

    (3) If a member who is eligible for retirement or a member who has completed at least ten years of service dies, and is not survived by a spouse or an eligible child, then the accumulated contributions standing to the member's credit, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid:

    (a) To an estate, a person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department; or

    (b) If there is no such designated person or persons still living at the time of the member's death, then to the member's legal representatives.

 

    Sec. 8.  RCW 43.43.274 and 1999 c 74 s 3 are each amended to read as follows:

    Effective ((July 1, 1997)) January 1, 2003, the minimum retirement allowance under RCW 43.43.260 and 43.43.270(2) in effect on January 1, 2002, shall ((not be less than twenty dollars per month for each year of service.  Effective July 1, 1999, and annually thereafter, the retirement allowance provided under this section shall be adjusted by the annual increase amount.  If the member has elected to receive a reduced retirement allowance under RCW 43.43.280(2), the minimum retirement allowance under this section shall be reduced accordingly)) be increased by three percent.  Each January 1st thereafter, the minimum retirement allowance of the preceding year shall be increased by three percent.

 

    Sec. 9.  RCW 43.43.278 and 2000 c 186 s 9 are each amended to read as follows:

    By July 1, 2000, the department of retirement systems shall adopt rules that allow a member to select an actuarially equivalent retirement option that pays the member a reduced retirement allowance and upon death shall be continued throughout the life of a lawful surviving spouse.  The continuing allowance to the lawful surviving spouse shall be subject to the yearly increase provided by RCW 43.43.260(5) ((in lieu of the annual increase provided in RCW 43.43.272)).  The allowance to the lawful surviving spouse under this section, and the allowance for an eligible child or children under RCW 43.43.270, shall not be subject to the limit for combined benefits under RCW 43.43.270.

 

    Sec. 10.  RCW 41.45.060 and 2000 2nd sp.s. c 1 s 905 are each amended to read as follows:

    (1) The state actuary shall provide actuarial valuation results based on the assumptions adopted under RCW 41.45.030.

    (2) Not later than September 30, 1998, and every two years thereafter, consistent with the assumptions adopted under RCW 41.45.030, the council shall adopt and may make changes to:

    (a) A basic state contribution rate for the law enforcement officers' and fire fighters' retirement system;

    (b) Basic employer contribution rates for the public employees' retirement system, the teachers' retirement system, and the Washington state patrol retirement system to be used in the ensuing biennial period; and

    (c) A basic employer contribution rate for the school employees' retirement system for funding the public employees' retirement system plan 1.

    For the 1999-2001 fiscal biennium, the rates adopted by the council shall be effective for the period designated in section 902, chapter 1, Laws of 2000 2nd sp. sess. and RCW 41.45.0602.

    (3) The employer and state contribution rates adopted by the council shall be the level percentages of pay that are needed:

    (a) To fully amortize the total costs of the public employees' retirement system plan 1, the teachers' retirement system plan 1, and the law enforcement officers' and fire fighters' retirement system plan 1((, and the unfunded liability of the Washington state patrol retirement system)) not later than June 30, 2024, except as provided in subsection (5) of this section;

    (b) To also continue to fully fund the public employees' retirement system plans 2 and 3, the teachers' retirement system plans 2 and 3, the school employees' retirement system plans 2 and 3, and the law enforcement officers' and fire fighters' retirement system plan 2 in accordance with RCW 41.45.061, 41.45.067, and this section; and

    (c) For the law enforcement officers' and fire fighters' system plan 2 the rate charged to employers, except as provided in RCW 41.26.450, shall be thirty percent of the cost of the retirement system and the rate charged to the state shall be twenty percent of the cost of the retirement system.

    (4) The aggregate actuarial cost method shall be used to calculate a combined plan 2 and 3 employer contribution rate and a Washington state patrol retirement system contribution rate.

    (5) An amount equal to the amount of extraordinary investment gains as defined in RCW 41.31.020 shall be used to shorten the amortization period for the public employees' retirement system plan 1 and the teachers' retirement system plan 1.

    (6) The council shall immediately notify the directors of the office of financial management and department of retirement systems of the state and employer contribution rates adopted.

    (7) The director of the department of retirement systems shall collect those rates adopted by the council.

 

    NEW SECTION.  Sec. 11.  Beginning July 1, 2001, the required contribution rate for members of the Washington state patrol retirement system shall be two percent or equal to the employer rate adopted under RCW 41.45.060 and 41.45.070 for the Washington state patrol retirement system, whichever is greater.

 

    NEW SECTION.  Sec. 12.  The following acts or parts of acts are each repealed:

    (1) RCW 43.43.272 (Surviving spouse allowance--Annual adjustment) and 1999 c 74 s 2;

    (2) RCW 43.43.276 (Retirement and beneficiary allowances--Post-retirement adjustment--Minimum adjustment) and 1983 1st ex.s. c 56 s 5; and

    (3) RCW 43.43.300 (Contributions by members--State contributions remain in fund if member leaves patrol) and 2000 c 17 s 1 & 1965 c 8 s 43.43.300.

 

    NEW SECTION.  Sec. 13.  (1) Sections 2, 5, and 7 of this act are each added to chapter 43.43 RCW.

    (2) Section 11 of this act is added to chapter 41.45 RCW.

 

    NEW SECTION.  Sec. 14.  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 July 1, 2001.


    Passed the Senate April 16, 2001.

    Passed the House April 10, 2001.

Approved by the Governor May 15, 2001, with the exception of certain items that were vetoed.

    Filed in Office of Secretary of State May 15, 2001.


 

    Note:  Governor's explanation of partial veto is as follows:

 

    "I am returning herewith, without my approval as to sections 1 and 2, Engrossed Senate Bill No. 5143 entitled:

 

"AN ACT Relating to the Washington state patrol retirement system retirement and survivor benefits;"

 

    Engrossed Senate Bill No. 5143 restructures the Washington State Patrol retirement plan.  It increases cost-of-living adjustments, reduces contribution rates and makes several other worthwhile changes.

 

    Sections 1 and 2 of the bill would have created a new "Plan II" that would have greatly reduced non-duty disability benefits for newly hired Washington State Patrol officers. While I understand the legislature's desire for uniformity among public pension systems, I think these changes require further consideration.

 

    While similar benefit provisions exist for other state employees who are members of Plan II retirement systems, those employees are also eligible for disability coverage through the social security system.  State Patrol officers are not covered by social security, and the new provisions proposed in this bill would have left them and their families vulnerable.  All State Patrol officers should be assured of benefits that are at least equal to those of other state employees.

 

    People who serve the state deserve fair and equitable protection against loss of their ability to work.  This gap could be addressed in a number of ways, and I am willing to consider alternative approaches to meeting this need.  I would be happy to work with the legislature in developing a revised plan.

 

    In the meantime, however, drastically reducing the disability coverage for the newest members of the Washington State Patrol without due consideration of how it will be replaced is too great a risk.

 

    For these reasons, I have vetoed sections 1 and 2 of Engrossed Senate Bill No. 5143.

 

    With the exception of sections 1 and 2, Engrossed Senate Bill No. 5143 is approved."