SENATE BILL REPORT

SB 5095

As Passed Senate, February 18, 2003

Title: An act relating to allowing a member holding state elective office the option during each term of office of membership or retirement and beginning their retirement allowance in the law enforcement officers' and fire fighters' retirement system, the teachers' retirement system, the school employees' retirement system, and the public employees' retirement system.

Brief Description: Allowing a member holding state elective office the option during each term of office of membership or retirement and beginning their retirement allowance in the law enforcement officers' and fire fighters' retirement system, the teachers' retirement system, the school employees' retirement system, and the public employees' retirement system.

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

Brief History:

Committee Activity: Ways & Means: 1/28/03, 2/3/03 [DP].

Passed Senate: 2/18/03, 45-4.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: Do pass.

      Signed by Senators Rossi, Chair; Hewitt, Vice Chair; Zarelli, Vice Chair; Brown, Doumit, Fairley, Fraser, Hale, Honeyford, Johnson, Poulsen, Regala, Sheahan, B. Sheldon and Winsley.

Staff: Erik Sund (786-7454)

Background: State elected officials who are members of the Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plan 2, the Public Employees' Retirement System (PERS), the Teachers' Retirement System (TRS) Plans 2 and 3, or the School Employees' Retirement System (SERS), must resign from office in order to retire from their plan and begin to collect benefits, regardless of their age.

Summary of Bill: Elected officials who are members of LEOFF Plan 2, PERS, TRS Plans 2 and 3, or SERS, are permitted to retire from their plans during a 90-day window at the beginning of each term of office without having to leave their office, provided that they are eligible under the requirements of their individual plans. Officials may choose instead to continue as active members of their plans, making contributions and accumulating service credit in the regular fashion.

Appropriation: None.

Fiscal Note: Available.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This bill would treat retired employees who are later elected to office more fairly; however, it would be more equitable if the judicial retirement plans were included.

Testimony Against: None.

Testified: Senator Harriet Spanel, 40th District; Robert Harris, Superior Court Judges' Association and Board of Judicial Administrators.