HOUSE BILL REPORT
HB 3137
As Reported by House Committee On:
Appropriations
Title: An act relating to benefits for surviving spouses of disabled Washington state patrol officers.
Brief Description: Determining benefits for surviving spouses of disabled Washington state patrol officers.
Sponsors: Representatives Lovick, Curtis, Clements, Hunt, Grant, Ericks, Conway, Morrell, Simpson and Kenney; by request of Department of Retirement Systems.
Brief History:
Appropriations: 1/30/06, 1/31/06 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: Do pass. Signed by 31 members: Representatives Sommers, Chair; Fromhold, Vice Chair; Alexander, Ranking Minority Member; Anderson, Assistant Ranking Minority Member; McDonald, Assistant Ranking Minority Member; Armstrong, Bailey, Buri, Chandler, Clements, Cody, Conway, Darneille, Dunshee, Grant, Haigh, Hinkle, Hunter, Kagi, Kenney, Kessler, Linville, McDermott, McIntire, Miloscia, Pearson, Priest, Schual-Berke, P. Sullivan, Talcott and Walsh.
Staff: David Pringle (786-7310).
Background:
The Washington State Patrol Retirement System (WSPRS) covers all commissioned officers
of the Washington State Patrol (WSP). The WSPRS was created in 1947, and until January 1,
2003, was the only state administered retirement system that still contained many of the plan
provisions that were altered or eliminated for new members in the creation of plans 2 or 3 in
other retirement systems.
Members of WSPRS may retire at age 55 or after 25 years of service at any age. It is also the
only plan operated by Washington with mandatory retirement at age 60.
The contribution rates for the members and employers of the WSPRS are equal, however the
member rate may be no less than 2 percent of pay. For the 2005-07 biennium, the
contribution rate for both members and employers is 4.51 percent of pay.
For members who joined the WSPRS prior to January 1, 2003, the survivor allowance for
post-retirement deaths is the lesser of 50 percent of the member's average final salary, or the
member's retirement allowance. In many cases, the survivor benefit will be less than the
member's benefit at time of death, because it is based on a salary that may be 20 or more
years old, and the members' benefit has been annually increased many times since. This basic
survivor benefit for retired members does not require members to reduce their benefit;
however, a member has the option of taking an actuarial reduction, and having the survivor
receive full continuation of that reduced benefit when the member dies.
Members of the WSPRS judged by the Chief to be disabled while performing line duty may
be placed on disability leave for up to six months, and then are placed on disability retirement
status. A member on disability retirement status is entitled to receive a benefit of one-half of
the existing wage during the time the disability continues in effect. When the existing wage
for a position is increased during a disabled member's disability retirement, the disability
benefit correspondingly increases.
The surviving spouse of a disabled member of WSPRS is eligible, similar to the surviving
spouse of a retiree, for a benefit equal to the lesser of 50 percent of the member's average
final salary, or the member's earned retirement allowance. Similarly to the survivor benefit
for members that retire, average final salary has been interpreted to mean the member's
average salary at the time the member left active duty, so the salary may be 20 or more years
old by the time the disability survivor benefit is calculated. Because a disabled member may
not have earned a retirement benefit based on an entire career of employment, it is more
likely that their survivor would receive a benefit based on 50 percent of the member's average
final salary.
In civil court actions claiming a breach of pension-related benefits, such as improper
calculation of benefits, a three-year statute of limitations applies. The statute of limitations
bars actions against the state for failure to pay pension benefits if the beneficiary fails to
begin a legal challenge within three years.
The Department of Retirement Systems (DRS) is empowered at any time to correct
administrative errors in retirement system member files to ensure that determinations, such as
plan eligibility and benefit calculations, made for members and beneficiaries are correct.
In June of 2005, DRS settled an individual lawsuit by increasing the monthly survivor
allowance of a survivor of a disabled WSPRS member from 50 percent of the disabled
member's average final salary at time of disablement, to 50 percent of the equivalent current
salary over the two years prior to the disabled member's death.
Summary of Bill:
The average final salary, for purposes of calculating the survivor benefit for a member who
entered WSPRS prior to January 1, 2003, and became disabled, is the average monthly salary
received by active members of the WSP during the two years prior to the death of the
disabled member.
The average final salary, for purposes of calculating the survivor benefit for a member who
entered WSPRS on or after January 1, 2003, and became disabled, is the average monthly
salary received by active members of the WSP during the five years prior to the death of the
disabled member.
The cost of the increased contribution rates necessary to pay for the increased survivor
benefits resulting from the change in definition of average final salary is, for members
disabled prior to July 1, 2006, paid for solely by the employer.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Testimony For: I know about the situation of disabled troopers and their survivors. The "Truman" case requires this change to be made in the case of that plaintiff. The trooper in the Truman case was disabled when he was earning about $800, and his surviving spouse was only going to get a benefit of about $400, as compared to the $2,500 per month that he was receiving as a disability benefit. We would be taking better care of these surviving spouses.
Testimony Against: None.
Persons Testifying: Representative Lovick, prime sponsor; Jeff DeVere, Washington State Patrol; and Adisa Muse and Dave Nelsen, Department of Retirement Systems.