BILL REQ. #:  Z-0270.3 

Read first time 01/21/2003.   Referred to Committee on Appropriations.

     AN ACT Relating to public employees', teachers', and school employees' retirement systems plan 3 member contribution rates; and amending RCW 41.34.040.

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

Sec. 1   RCW 41.34.040 and 2000 c 247 s 403 are each amended to read as follows:
     (1) A member shall contribute from his or her compensation according to one of the following rate structures in addition to the mandatory minimum five percent:

     Option A                         Contribution Rate
     All Ages                         ((5.0%)) 0.0% fixed
     Option B
     Up to Age 35                    ((5.0%)) 0.0%
     Age 35 to 44                    ((6.0%)) 1.0%
     Age 45 and above               ((7.5%)) 2.5%
     Option C
     Up to Age 35                    ((6.0%)) 1.0%
     Age 35 to 44                    ((7.5%)) 2.5%
     Age 45 and above               ((8.5%)) 3.5%
     Option D
     All Ages                         2.0%
     Option E
     All Ages                         5.0%
     Option F
     All Ages                         10.0%

     (2) The board shall have the right to offer contribution rate options in addition to those listed in subsection (1) of this section, provided that no significant additional administrative costs are created. All options offered by the board shall conform to the requirements stated in subsections (3) and (((4))) (5) of this section.
     (3)(a) For members of the teachers' retirement system entering plan 3 under RCW 41.32.835 or members of the school employees' retirement system entering plan 3 under RCW 41.35.610, within ninety days of becoming a member he or she has an ((irrevocable)) option to choose one of the above contribution rate structures. If the member does not select an option within the ninety-day period, he or she shall be assigned option A. ((Such assignment shall be irrevocable.))
     (b) For members of the public employees' retirement system entering plan 3 under RCW 41.40.785, within the ninety days described in RCW 41.40.785 an employee who irrevocably chooses plan 3 shall select one of the above contribution rate structures. If the member does not select an option within the ninety-day period, he or she shall be assigned option A. ((Such assignment shall be irrevocable.))
     (c) For members of the teachers' retirement system transferring to plan 3 under RCW 41.32.817, members of the school employees' retirement system transferring to plan 3 under RCW 41.35.510, or members of the public employees' retirement system transferring to plan 3 under RCW 41.40.795, upon election to plan 3 he or she must ((irrevocably)) choose one of the above contribution rate structures.
     (d) Within ninety days of the date that an employee changes employers, he or she has an ((irrevocable)) option to choose one of the above contribution rate structures. If the member does not select an option within this ninety-day period, he or she shall be assigned option A. ((Such assignment shall be irrevocable.))
     (4) Each year, members may change their contribution rate option by notifying their employer in writing during the month of January.
     (5) Contributions shall begin the first day of the pay cycle in which the rate option is made, or the first day of the pay cycle in which the end of the ninety-day period occurs.