FINAL BILL REPORT

SB 5094

C 157 L 03

Synopsis as Enacted

Brief Description: Providing optional service credit for substitute service to members of the school employees' retirement system.

Sponsors: Senators Carlson, Jacobsen, Spanel, Fraser, B. Sheldon and Rasmussen; by request of Joint Committee on Pension Policy.

Senate Committee on Ways & Means

House Committee on Appropriations

Background: Substitute employees of school districts who work at least 70 hours per month for at least five months in each of two successive years are eligible for service credit in the School Employees' Retirement System (SERS). When an employee becomes eligible for credit in this manner, both the employee and the employer are billed retrospectively for the contributions that would have been made during that period. Contributions made in this way may be withdrawn at the time of the employee's termination if the employee chooses not to retain the service credit.

Summary: Substitute employees of school districts who become eligible for service credit in SERS may choose not to apply for the credit, in which case neither the employees nor the employer make contributions.

Votes on Final Passage:

Senate       49  0

House       89  0

Effective: July 27, 2003