BILL REQ. #: H-1249.2
State of Washington | 58th Legislature | 2003 Regular Session |
Read first time 02/06/2003. Referred to Committee on Appropriations.
AN ACT Relating to hiring retired members of the public employees' retirement system plan 1 and the teachers' retirement system plan 1; amending RCW 41.32.570, 41.40.037, and 41.40.037; repealing 2001 c 317 s 1; providing an effective date; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.32.570 and 2001 2nd sp.s. c 10 s 3 are each amended
to read as follows:
(1)(a) If a retiree enters employment with an employer sooner than
one calendar month after his or her accrual date, the retiree's monthly
retirement allowance will be reduced by five and one-half percent for
every seven hours worked during that month. This reduction will be
applied each month until the retiree remains absent from employment
with an employer for one full calendar month.
(b) The benefit reduction provided in (a) of this subsection will
accrue for a maximum of one hundred forty hours per month. Any monthly
benefit reduction over one hundred percent will be applied to the
benefit the retiree is eligible to receive in subsequent months.
(2)(a) Between July 1, 2003, and June 30, 2004, any retired teacher
or retired administrator who enters service in any public educational
institution in Washington state and who has satisfied the break in
employment requirement of subsection (1) of this section and the
conditions of employment of (b) of this subsection shall cease to
receive pension payments while engaged in such service after the
retiree has rendered service for more than one thousand five hundred
hours in a school year. When a retired teacher or administrator
renders service beyond eight hundred sixty-seven hours, the department
shall collect from the employer the applicable employer retirement
contributions for the entire duration of the member's employment during
that fiscal year. A retired teacher or retired administrator who has
satisfied the break in employment requirement of subsection (1) of this
section but engages in service without satisfying the conditions of
employment of (b) of this subsection shall cease to receive pension
payments while engaged in such service after the retiree has rendered
service for more than eight hundred sixty-seven hours in a school year.
(b) To be eligible to receive pension payments for up to one
thousand five hundred hours in a school year under (a) of this
subsection, the school board of the prospective employer of a retired
teacher or retired administrator must approve the hiring of the retiree
in an open public meeting.
(3) On or after July 1, 2004, any retired teacher or retired
administrator who enters service in any public educational institution
in Washington state and who has satisfied the break in employment
requirement of subsection (1) of this section shall cease to receive
pension payments while engaged in such service, after the retiree has
rendered service for more than ((one thousand five hundred)) eight
hundred sixty-seven hours in a school year. ((When a retired teacher
or administrator renders service beyond eight hundred sixty-seven
hours, the department shall collect from the employer the applicable
employer retirement contributions for the entire duration of the
member's employment during that fiscal year.)) (4) The department shall collect and provide the state
actuary with information relevant to the use of this section for the
joint committee on pension policy.
(3)
(((4))) (5) The legislature reserves the right to amend or repeal
this section in the future and no member or beneficiary has a
contractual right to be employed for more than ((five)) eight hundred
((twenty-five)) forty hours per year without a reduction of his or her
pension.
Sec. 2 RCW 41.40.037 and 2001 2nd sp.s. c 10 s 4 are each amended
to read as follows:
(1)(a) If a retiree enters employment with an employer sooner than
one calendar month after his or her accrual date, the retiree's monthly
retirement allowance will be reduced by five and one-half percent for
every eight hours worked during that month. This reduction will be
applied each month until the retiree remains absent from employment
with an employer for one full calendar month.
(b) The benefit reduction provided in (a) of this subsection will
accrue for a maximum of one hundred sixty hours per month. Any benefit
reduction over one hundred percent will be applied to the benefit the
retiree is eligible to receive in subsequent months.
(2)(a) A retiree from plan 1 who has satisfied the break in
employment requirement of subsection (1) of this section and who enters
employment that satisfies the conditions of (b) of this subsection with
an employer may continue to receive pension payments while engaged in
such service for up to one thousand five hundred hours of service in a
calendar year without a reduction of pension. When a plan 1 member
renders service beyond eight hundred sixty-seven hours, the department
shall collect from the employer the applicable employer retirement
contributions for the entire duration of the member's employment during
that calendar year. A retiree from plan 1 who has satisfied the break
in employment requirement of subsection (1) of this section but enters
employment without satisfying the conditions of (b) of this subsection
may continue to receive pension payments while engaged in such service
for up to eight hundred sixty-seven hours in a calendar year.
(b) To employ a retiree from plan 1 for up to one thousand five
hundred hours of service in a calendar year without a reduction in
pension, the employment of the retiree must be approved by the chief
executive officer of a state agency employer, the secretary of the
senate and the chief clerk of the house of representatives for a
legislative agency employer, or according to rules adopted for the
rehiring of retired plan 1 members for a local government employer.
(((b))) (c) A retiree from plan 2 or plan 3 who has satisfied the
break in employment requirement of subsection (1) of this section may
work up to eight hundred sixty-seven hours in a calendar year in an
eligible position, as defined in RCW 41.32.010, 41.35.010, or
41.40.010, or as a fire fighter or law enforcement officer, as defined
in RCW 41.26.030, without suspension of his or her benefit.
(3) If the retiree opts to reestablish membership under RCW
41.40.023(12), he or she terminates his or her retirement status and
becomes a member. Retirement benefits shall not accrue during the
period of membership and the individual shall make contributions and
receive membership credit. Such a member shall have the right to again
retire if eligible in accordance with RCW 41.40.180. However, if the
right to retire is exercised to become effective before the member has
rendered two uninterrupted years of service, the retirement formula and
survivor options the member had at the time of the member's previous
retirement shall be reinstated.
(4) The department shall collect and provide the state actuary with
information relevant to the use of this section for the joint committee
on pension policy.
(5) The legislature reserves the right to amend or repeal this
section in the future and no member or beneficiary has a contractual
right to be employed for more than five months in a calendar year
without a reduction of his or her pension.
Sec. 3 RCW 41.40.037 and 2001 2nd sp.s. c 10 s 4 are each amended
to read as follows:
(1)(a) If a retiree enters employment with an employer sooner than
one calendar month after his or her accrual date, the retiree's monthly
retirement allowance will be reduced by five and one-half percent for
every eight hours worked during that month. This reduction will be
applied each month until the retiree remains absent from employment
with an employer for one full calendar month.
(b) The benefit reduction provided in (a) of this subsection will
accrue for a maximum of one hundred sixty hours per month. Any benefit
reduction over one hundred percent will be applied to the benefit the
retiree is eligible to receive in subsequent months.
(2)(a) A retiree from plan 1 who has satisfied the break in
employment requirement of subsection (1) of this section and who enters
employment with an employer may continue to receive pension payments
while engaged in such service for up to ((one thousand five hundred))
eight hundred sixty-seven hours of service in a calendar year without
a reduction of pension. ((When a plan 1 member renders service beyond
eight hundred sixty-seven hours, the department shall collect from the
employer the applicable employer retirement contributions for the
entire duration of the member's employment during that calendar year.))
(b) A retiree from plan 2 or plan 3 who has satisfied the break in
employment requirement of subsection (1) of this section may work up to
eight hundred sixty-seven hours in a calendar year in an eligible
position, as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as
a fire fighter or law enforcement officer, as defined in RCW 41.26.030,
without suspension of his or her benefit.
(3) If the retiree opts to reestablish membership under RCW
41.40.023(12), he or she terminates his or her retirement status and
becomes a member. Retirement benefits shall not accrue during the
period of membership and the individual shall make contributions and
receive membership credit. Such a member shall have the right to again
retire if eligible in accordance with RCW 41.40.180. However, if the
right to retire is exercised to become effective before the member has
rendered two uninterrupted years of service, the retirement formula and
survivor options the member had at the time of the member's previous
retirement shall be reinstated.
(4) The department shall collect and provide the state actuary with
information relevant to the use of this section for the joint committee
on pension policy.
(5) The legislature reserves the right to amend or repeal this
section in the future and no member or beneficiary has a contractual
right to be employed for more than five months in a calendar year
without a reduction of his or her pension.
NEW SECTION. Sec. 4 Section 2 of this act expires January 1,
2005.
NEW SECTION. Sec. 5 Section 3 of this act takes effect January
1, 2005.
NEW SECTION. Sec. 6 2001 c 317 s 1 is repealed.