AN
ACT Relating to creating new survivor benefit division options for divorced
members of the law enforcement officers' and fire fighters' retirement system,
the teachers' retirement system, the school employees' retirement system, the
public employees' retirement system, and the Washington state patrol retirement
system; amending RCW 41.26.160, 41.26.161, 41.26.162, 41.50.670, 41.50.700,
41.26.460, 41.32.530, 41.32.785, 41.32.851, 41.35.220, 41.40.188, 41.40.660,
41.40.845, 43.43.270, and 43.43.271; and adding a new section to chapter 41.26
RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
41.26.160 and 1999 c 134 s 2 are each amended to read as follows:
(1)
In the event of the duty connected death of any member who is in active
service, or who has vested under the provisions of RCW 41.26.090 with twenty or
more service credit years of service, or who is on duty connected disability
leave or retired for duty connected disability, the surviving spouse shall
become entitled, subject to RCW 41.26.162(2), to receive a monthly
allowance equal to fifty percent of the final average salary at the date of
death if active, or the amount of retirement allowance the vested member would
have received at age fifty, or the amount of the retirement allowance such
retired member was receiving at the time of death if retired for duty connected
disability. The amount of this allowance will be increased five percent of
final average salary for each child as defined in RCW 41.26.030(7), subject to
a maximum combined allowance of sixty percent of final average salary:
PROVIDED, That if the child or children is or are in the care of a legal
guardian, payment of the increase attributable to each child will be made to
the child's legal guardian or, in the absence of a legal guardian and if the
member has created a trust for the benefit of the child or children, payment of
the increase attributable to each child will be made to the trust.
(2)
If at the time of the duty connected death of a vested member with twenty or
more service credit years of service as provided in subsection (1) of this
section or a member retired for duty connected disability, the surviving spouse
has not been lawfully married to such member for one year prior to retirement
or separation from service if a vested member, the surviving spouse shall not
be eligible to receive the benefits under this section: PROVIDED, That if a
member dies as a result of a disability incurred in the line of duty, then if
he or she was married at the time he or she was disabled, the surviving spouse
shall be eligible to receive the benefits under this section.
(3)
If there be no surviving spouse eligible to receive benefits at the time of
such member's duty connected death, then the child or children of such member
shall receive a monthly allowance equal to thirty percent of final average
salary for one child and an additional ten percent for each additional child subject
to a maximum combined payment, under this subsection, of sixty percent of final
average salary. When there cease to be any eligible children as defined in RCW
41.26.030(7), there shall be paid to the legal heirs of the member the excess,
if any, of accumulated contributions of the member at the time of death over
all payments made to survivors on his or her behalf under this chapter:
PROVIDED, That payments under this subsection to children shall be prorated
equally among the children, if more than one. If the member has created a
trust for the benefit of the child or children, the payment shall be made to
the trust.
(4)
In the event that there is no surviving spouse eligible to receive benefits
under this section, and that there be no child or children eligible to receive
benefits under this section, then the accumulated contributions shall be paid
to the estate of the member.
(5)
If a surviving spouse receiving benefits under this section remarries after
the effective date of this act, the surviving spouse shall continue to receive
the benefits under this section.
(6)
If a surviving spouse receiving benefits under the provisions of this section
thereafter dies and there are children as defined in RCW 41.26.030(7), payment
to the spouse shall cease and the child or children shall receive the benefits
as provided in subsection (3) of this section.
(((6)))
(7) The payment provided by this section shall become due the day
following the date of death and payments shall be retroactive to that date.
Sec.
2. RCW
41.26.161 and 1999 c 134 s 3 are each amended to read as follows:
(1)
In the event of the nonduty connected death of any member who is in active
service, or who has vested under the provisions of RCW 41.26.090 with twenty or
more service credit years of service, or who is on disability leave or retired,
whether for nonduty connected disability or service, the surviving spouse shall
become entitled, subject to RCW 41.26.162(2), to receive a monthly
allowance equal to fifty percent of the final average salary at the date of
death if active, or the amount of retirement allowance the vested member would
have received at age fifty, or the amount of the retirement allowance such
retired member was receiving at the time of death if retired for service or
nonduty connected disability. The amount of this allowance will be increased
five percent of final average salary for each child as defined in RCW
41.26.030(7), subject to a maximum combined allowance of sixty percent of final
average salary: PROVIDED, That if the child or children is or are in the care
of a legal guardian, payment of the increase attributable to each child will be
made to the child's legal guardian or, in the absence of a legal guardian and
if the member has created a trust for the benefit of the child or children,
payment of the increase attributable to each child will be made to the trust.
(2)
If at the time of the death of a vested member with twenty or more service
credit years of service as provided in subsection (1) of this section or a
member retired for service or disability, the surviving spouse has not been
lawfully married to such member for one year prior to retirement or separation
from service if a vested member, the surviving spouse shall not be eligible to
receive the benefits under this section.
(3)
If there be no surviving spouse eligible to receive benefits at the time of
such member's death, then the child or children of such member shall receive a
monthly allowance equal to thirty percent of final average salary for one child
and an additional ten percent for each additional child subject to a maximum
combined payment, under this subsection, of sixty percent of final average
salary. When there cease to be any eligible children as defined in RCW
41.26.030(7), there shall be paid to the legal heirs of the member the excess,
if any, of accumulated contributions of the member at the time of death over
all payments made to survivors on his or her behalf under this chapter:
PROVIDED, That payments under this subsection to children shall be prorated
equally among the children, if more than one. If the member has created a
trust for the benefit of the child or children, the payment shall be made to
the trust.
(4)
In the event that there is no surviving spouse eligible to receive benefits
under this section, and that there be no child or children eligible to receive
benefits under this section, then the accumulated contributions shall be paid
to the estate of said member.
(5)
If a surviving spouse receiving benefits under this section remarries after
the effective date of this act, the surviving spouse shall continue to receive
the benefits under this section.
(6)
If a surviving spouse receiving benefits under the provisions of this section
thereafter dies and there are children as defined in RCW 41.26.030(7), payment
to the spouse shall cease and the child or children shall receive the benefits
as provided in subsection (3) of this section.
(((6)))
(7) The payment provided by this section shall become due the day
following the date of death and payments shall be retroactive to that date.
Sec.
3. RCW
41.26.162 and 1991 sp.s. c 12 s 2 are each amended to read as follows:
(1)(a)
An ex spouse of a law enforcement officers' and fire fighters' retirement
system retiree shall qualify as surviving spouse under RCW 41.26.160 if the ex
spouse:
(((a)))
(i) Has been provided benefits under any currently effective court
decree of dissolution or legal separation or in any court order or
court-approved property settlement agreement incident to any court decree of
dissolution or legal separation entered after the member's retirement and prior
to December 31, 1979; and
(((b)))
(ii) Was married to the retiree for at least thirty years, including at
least twenty years prior to the member's retirement or separation from service
if a vested member.
(((2)))
(b) If two or more persons are eligible for a surviving spouse benefit
under this subsection, benefits shall be divided between the surviving spouses
based on the percentage of total service credit the member accrued during each
marriage.
(((3)))
(c) This ((section)) subsection shall apply retroactively.
(2)(a)
An ex spouse of a law enforcement officers' and fire fighters' retirement
system plan 1 retiree who:
(i)
Divorces the member before separation from service; and
(ii)
Entered into the court order or court-approved property settlement agreement
incident to the divorce of the member and ex spouse after July 1, 2003;
may
be awarded a portion of the member's benefit and a portion of any spousal
survivor's benefit pursuant to RCW 41.26.160 or 41.26.161 after the member's
death if specified in the court order or court-approved property settlement.
(b)
This subsection shall not apply retroactively.
(3)(a)
An ex spouse of a law enforcement officers' and fire fighters' retirement
system plan 1 member with at least thirty years of service who:
(i)
Divorced the member after being married to the member for at least twenty-five
years; and
(ii)
Entered into a court order or court-approved property settlement agreement
incident to the divorce that awarded a portion of the member's benefits to the
ex spouse after the effective date of this act;
shall
continue to receive that portion of the member's benefit after the member's
death as if the member was still alive.
(b)
This subsection shall apply only to a divorce entered into after January 1,
1997. However, no payments shall be made to an ex spouse of a deceased member
qualifying under this subsection for any period prior to the effective date of
this section.
NEW
SECTION. Sec. 4. A
new section is added to chapter 41.26 RCW under subchapter heading "plan
1" to read as follows:
(1)
No later than July 1, 2003, the department shall adopt rules to allow a member
who meets the criteria set forth in subsection (2) of this section to choose an
actuarially equivalent benefit 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 a spouse ineligible for survivor benefits under RCW 41.26.160 or 41.26.161.
(2)
To choose an actuarially equivalent benefit according to subsection (1) of this
section, a member shall:
(a)
Have the retirement allowance payable to the retiree not subject to periodic
payments pursuant to a property division obligation as provided for in RCW
41.50.670;
(b)
Have no qualified ex spouse under RCW 41.26.162(1); and
(c)
Choose an actuarially reduced benefit during a one-year period beginning one
year after the date of marriage to the survivor benefit-ineligible spouse.
(3)
A member who married a spouse ineligible for survivor benefits under RCW
41.26.160 or 41.26.161 prior to the effective date of the rules adopted under
this section and satisfies the conditions of subsection (2)(a) and (b) of this
section has one year to designate their spouse as a survivor beneficiary
following the adoption of the rules.
(4)
No benefit provided to a child survivor beneficiary under RCW 41.26.160 or
41.26.161 is affected or reduced by the member's selection of the actuarially
reduced spousal survivor benefit provided by this section.
(5)(a)
Any member who chose to receive a reduced retirement allowance under subsection
(1) of this section is entitled to receive a retirement allowance adjusted in
accordance with (b) of this subsection if:
(i)
The retiree's survivor spouse designated in subsection (1) of this section
predeceases 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 from the beginning of the month
following the date of the beneficiaries death shall be increased by the
following:
(i)
One hundred percent multiplied by the result of (b)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor.
Sec.
5. RCW
41.50.670 and 1998 c 341 s 513 are each amended to read as follows:
(1)
Nothing in this chapter regarding mandatory assignment of benefits to enforce a
spousal maintenance obligation shall abridge the right of an obligee to direct
payments of retirement benefits to satisfy a property division obligation
ordered pursuant to a court decree of dissolution or legal separation or any
court order or court-approved property settlement agreement incident to any
court decree of dissolution or legal separation as provided in RCW 2.10.180,
2.12.090, 41.04.310, 41.04.320, 41.04.330, 41.26.053, 41.26.162,
41.32.052, 41.35.100, 41.34.070(((3))) (4), 41.40.052, 43.43.310,
or 26.09.138, as those statutes existed before July 1, 1987, and as those
statutes exist on and after July 28, 1991. The department shall pay benefits
under this chapter in a lump sum or as a portion of periodic retirement payments
as expressly provided by the dissolution order. A dissolution order may not
order the department to pay a periodic retirement payment or lump sum unless
that payment is specifically authorized under the provisions of chapter 2.10,
2.12, 41.26, 41.32, 41.35, 41.34, 41.40, or 43.43 RCW, as applicable.
(2)
The department shall pay directly to an obligee the amount of periodic
retirement payments or lump sum payment, as appropriate, specified in the
dissolution order if the dissolution order filed with the department pursuant
to subsection (1) of this section includes a provision that states in the
following form:
If
. . . . . . (the obligor) receives periodic retirement
payments as defined in RCW 41.50.500, the department of retirement systems
shall pay to . . . . . . (the obligee)
. . . . . . dollars from such payments or
. . . percent of such payments. If the obligor's debt is expressed
as a percentage of his or her periodic retirement payment and the obligee does
not have a survivorship interest in the obligor's benefit, the amount received
by the obligee shall be the percentage of the periodic retirement payment that
the obligor would have received had he or she selected a standard allowance.
If
. . . . . . (the obligor) requests or has requested a
withdrawal of accumulated contributions as defined in RCW 41.50.500, or becomes
eligible for a lump sum death benefit, the department of retirement systems
shall pay to . . . . . . (the obligee)
. . . . . . dollars plus interest at the rate paid by
the department of retirement systems on member contributions. Such interest to
accrue from the date of this order's entry with the court of record.
(3)
This section does not require a member to select a standard allowance upon
retirement nor does it require the department to recalculate the amount of a
retiree's periodic retirement payment based on a change in survivor option.
(4)
A court order under this section may not order the department to pay more than
seventy-five percent of an obligor's periodic retirement payment to an obligee.
(5)
Persons whose court decrees were entered between July 1, 1987, and July 28,
1991, shall also be entitled to receive direct payments of retirement benefits
to satisfy court-ordered property divisions if the dissolution orders comply or
are modified to comply with this section and RCW 41.50.680 through 41.50.720
and, as applicable, RCW 2.10.180, 2.12.090, 41.26.053, 41.32.052, 41.35.100,
41.34.070, 41.40.052, 43.43.310, and 26.09.138.
(6)
The obligee must file a copy of the dissolution order with the department
within ninety days of that order's entry with the court of record.
(7)
A division of benefits pursuant to a dissolution order under this section shall
be based upon the obligor's gross benefit prior to any deductions. If the
department is required to withhold a portion of the member's benefit pursuant
to 26 U.S.C. Sec. 3402 and the sum of that amount plus the amount owed to the
obligee exceeds the total benefit, the department shall satisfy the withholding
requirements under 26 U.S.C. Sec. 3402 and then pay the remainder to the
obligee. The provisions of this subsection do not apply to amounts withheld
pursuant to 26 U.S.C. Sec. 3402(i).
Sec.
6. RCW
41.50.700 and 1991 c 365 s 16 are each amended to read as follows:
(1)
Except under subsection (3) of this section, the department's obligation
to provide direct payment of a property division obligation to an obligee under
RCW 41.50.670 shall cease upon the death of the obligee or upon the death of
the obligor, whichever comes first. However, if an obligor dies and is
eligible for a lump sum death benefit, the department shall be obligated to
provide direct payment to the obligee of all or a portion of the withdrawal of
accumulated contributions pursuant to a court order that complies with RCW
41.50.670.
(2)
The direct payment of a property division obligation to an obligee under RCW
41.50.670 shall be paid as a deduction from the member's periodic retirement
payment. An obligee may not direct the department to withhold any funds from
such payment.
(3) The department's obligation to provide direct payment to a
nonmember ex spouse from a preretirement divorce meeting the criteria of RCW
41.26.162(2) or 43.43.270(2) may continue for the life of the member's
surviving spouse qualifying for benefits under RCW 41.26.160, 41.26.161, or
43.43.270(2). Upon the death of the member's surviving spouse qualifying for
benefits under RCW 41.26.160, 41.26.161, or 43.43.270(2), the department's
obligation under this subsection shall cease. The department's obligation to
provide direct payment to a nonmember ex spouse qualifying for a continued
split benefit payment under RCW 41.26.162(3) shall continue for the life of
that nonmember ex spouse.
Sec.
7. RCW
41.26.460 and 2000 c 186 s 1 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.26.430 or disability
retirement under RCW 41.26.470, a member 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 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)
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. Such 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)(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.
(5)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who meets
the length of service requirements of RCW 41.26.530(1) and the member's
divorcing spouse be divided into two separate benefits payable over the life of
each spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the ages provided in RCW 41.26.430 and after filing a
written application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (4) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
The department may make an additional charge or adjustment if necessary to
ensure that the separate benefits provided under this subsection are
actuarially equivalent to the benefits payable prior to the decree of
dissolution.
Sec.
8. RCW
41.32.530 and 2000 c 186 s 2 are each amended to read as follows:
(1)
Upon an application for retirement for service under RCW 41.32.480 or
retirement for disability under RCW 41.32.550, approved by the department,
every member shall receive the maximum retirement allowance available to him or
her throughout life unless prior to the time the first installment thereof
becomes due he or she has elected, by executing the proper application
therefor, to receive the actuarial equivalent of his or her retirement
allowance in reduced payments throughout his or her life with the following
options:
(a)
Standard allowance. If he or she dies before he or she has received the
present value of his or her accumulated contributions at the time of his or her
retirement in annuity payments, the unpaid balance shall be paid to his or her
estate or to such person, trust, or organization as he or she shall have
nominated by written designation executed and filed with the department.
(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 person who
has an insurable interest in the member's life. 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.
(c)
Such other benefits shall be paid to a member receiving a retirement allowance
under RCW 41.32.497 as the member may designate for himself, herself, or others
equal to the actuarial value of his or her retirement annuity at the time of
his retirement: PROVIDED, That the board of trustees shall limit withdrawals
of accumulated contributions to such sums as will not reduce the member's
retirement allowance below one hundred and twenty dollars per month.
(d)
A member whose retirement allowance is calculated under RCW 41.32.498 may also
elect to receive a retirement allowance based on options available under this
subsection that includes the benefit provided under RCW 41.32.770. This
retirement allowance option shall also be calculated so as to be actuarially
equivalent to the maximum retirement allowance and to the options available
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
will pay the member a joint and fifty percent survivor benefit and record the
member's spouse as the beneficiary. Such 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)(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.
(5)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who meets
the length of service requirements of RCW 41.32.470 and the member's divorcing
spouse be divided into two separate benefits payable over the life of each
spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the age provided in RCW 41.32.480(2) and after filing a
written application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (4) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
The separate single life benefits of the member and the nonmember ex spouse are
not (i) subject to the minimum benefit provisions of RCW 41.32.4851, or (ii)
the minimum benefit annual increase amount eligibility provisions of RCW
41.32.489 (2)(b) and (3)(a).
(d) The department may make an additional charge or adjustment
if necessary to ensure that the separate benefits provided under this
subsection are actuarially equivalent to the benefits payable prior to the
decree of dissolution.
Sec.
9. RCW
41.32.785 and 2000 c 186 s 4 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.32.765 or retirement for
disability under RCW 41.32.790, a member 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 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)
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. Such 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)(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.
(5)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who meets
the length of service requirements of RCW 41.32.815 and the member's divorcing
spouse be divided into two separate benefits payable over the life of each
spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the age provided in RCW 41.32.765(1) and after filing a
written application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (4) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
The department may make an additional charge or adjustment if necessary to
ensure that the separate benefits provided under this subsection are
actuarially equivalent to the benefits payable prior to the decree of dissolution.
Sec.
10. RCW
41.32.851 and 2000 c 186 s 5 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.32.875 or retirement for
disability under RCW 41.32.880, 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. Upon the death of the retired
member, all benefits shall cease.
(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 such person or
persons as the retiree shall have nominated 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 joint and fifty percent survivor option.
(2)
((A member, if married, must provide the written consent of his or her
spouse to the option selected under this section. 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)) (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)
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.
(4)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who meets
the length of service requirements of RCW 41.32.875(1) and the member's
divorcing spouse be divided into two separate benefits payable over the life of
each spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the age provided in RCW 41.32.875(1) and after filing a
written application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (3) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the dissolution
order with the department in accordance with RCW 41.50.670.
(c)
Any benefit distributed pursuant to chapter 41.31A RCW after the date of the
dissolution order creating separate benefits for a member and nonmember ex
spouse shall be paid solely to the member.
(d)
The department may make an additional charge or adjustment if necessary to
ensure that the separate benefits provided under this subsection are
actuarially equivalent to the benefits payable prior to the decree of
dissolution.
Sec.
11. RCW
41.35.220 and 2000 c 186 s 6 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.35.420 or 41.35.680 or
retirement for disability under RCW 41.35.440 or 41.35.690, 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,))
(i)
For members of plan 2, 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.
(ii)
For members of plan 3, upon the death of the retired member, the member's
benefits shall cease.
(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 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.
(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)
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.
(4)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member of plan 2
who meets the length of service requirements of RCW 41.35.420, or a member of
plan 3 who meets the length of service requirements of RCW 41.35.680(1), and the
member's divorcing spouse be divided into two separate benefits payable over
the life of each spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the ages provided in RCW 41.35.420(1) for members of plan
2, or RCW 41.35.680(1) for members of plan 3, and after filing a written
application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (3) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
Any benefit distributed pursuant to chapter 41.31A RCW after the date of the
dissolution order creating separate benefits for a member and nonmember ex
spouse shall be paid solely to the member.
(d)
The department may make an additional charge or adjustment if necessary to ensure
that the separate benefits provided under this subsection are actuarially
equivalent to the benefits payable prior to the decree of dissolution.
Sec.
12. 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)
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.
(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.
(5)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who meets
the length of service requirements of RCW 41.40.180(1) and the member's
divorcing spouse be divided into two separate benefits payable over the life of
each spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate benefit
upon reaching the age provided in RCW 41.40.180(1) and after filing a written
application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (4) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
The separate single life benefits of the member and the nonmember ex spouse are
not (i) subject to the minimum benefit provisions of RCW 41.40.1984, or (ii)
the minimum benefit annual increase amount eligibility provisions of RCW
41.40.197 (2)(b) and (3)(a).
(d) The department may make an additional charge or adjustment
if necessary to ensure that the separate benefits provided under this subsection
are actuarially equivalent to the benefits payable prior to the decree of
dissolution.
Sec.
13. RCW
41.40.660 and 2000 c 186 s 8 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.40.630 or retirement for
disability under RCW 41.40.670, 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)
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.
(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.
(5)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who meets
the length of service requirements of RCW 41.40.720 and the member's divorcing
spouse be divided into two separate benefits payable over the life of each
spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the age provided in RCW 41.40.630(1) and after filing a
written application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (4) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
Any benefit distributed pursuant to chapter 41.31A RCW after the date of the
dissolution order creating separate benefits for a member and nonmember ex
spouse shall be paid solely to the member.
(d)
The department may make an additional charge or adjustment if necessary to
ensure that the separate benefits provided under this subsection are
actuarially equivalent to the benefits payable prior to the decree of
dissolution.
Sec.
14. RCW
41.40.845 and 2000 c 247 s 314 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.40.820 or retirement for
disability under RCW 41.40.825, 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.)) Upon the death of
the member, the member's benefits shall cease.
(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 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.
(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)
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 under this section 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.
(4)
No later than July 1, 2002, 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 under this section 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.
(5)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who meets
the length of service requirements of RCW 41.40.820(1) and the member's
divorcing spouse be divided into two separate benefits payable over the life of
each spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two separate
benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the age provided in RCW 41.40.820(1) and after filing a
written application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (4) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
The department may make an additional charge or adjustment if necessary to
ensure that the separate benefits provided under this subsection are
actuarially equivalent to the benefits payable prior to the decree of
dissolution.
Sec.
15. RCW
43.43.270 and 2001 c 329 s 6 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. The
allowance paid to the lawful spouse may be divided with an ex spouse of the
member by a dissolution order as defined in RCW 41.50.500(3) incident to a
divorce occurring after July 1, 2002. The dissolution order must specifically
divide both the member's benefit and any spousal survivor benefit, and must
fully comply with RCW 41.50.670 and 41.50.700.
(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.
Sec.
16. RCW
43.43.271 and 2001 c 329 s 5 are each amended to read as follows:
(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.
(4)
No later than July 1, 2003, the department shall adopt rules to permit:
(a)
A court-approved property settlement incident to a court decree of dissolution
made before retirement to provide that benefits payable to a member who has
completed at least five years of service and the member's divorcing spouse be
divided into two separate benefits payable over the life of each spouse.
The
member shall have available the benefit options of subsection (1) of this
section upon retirement, and if remarried at the time of retirement remains
subject to the spousal consent requirements of subsection (2) of this section.
Any reductions of the member's benefit subsequent to the division into two
separate benefits shall be made solely to the separate benefit of the member.
The
nonmember ex spouse shall be eligible to commence receiving their separate
benefit upon reaching the ages provided in RCW 43.43.250(2) and after filing a
written application with the department.
(b)
A court-approved property settlement incident to a court decree of dissolution
made after retirement may only divide the benefit into two separate benefits
payable over the life of each spouse if the nonmember ex spouse was selected as
a survivor beneficiary at retirement.
The
retired member may later choose the survivor benefit options available in
subsection (3) of this section. Any actuarial reductions subsequent to the
division into two separate benefits shall be made solely to the separate
benefit of the member.
Both
the retired member and the nonmember divorced spouse shall be eligible to
commence receiving their separate benefits upon filing a copy of the
dissolution order with the department in accordance with RCW 41.50.670.
(c)
The department may make an additional charge or adjustment if necessary to
ensure that the separate benefits provided under this subsection are
actuarially equivalent to the benefits payable prior to the decree of
dissolution.
