BILL REQ. #:  S-1155.1 

Read first time 02/10/2005.   Referred to Committee on Ways & Means.

     AN ACT Relating to retirement allowances under the public employees' and teachers' retirement systems; amending RCW 41.40.191 and 41.32.4986; and declaring an emergency.

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

Sec. 1   RCW 41.40.191 and 1999 c 362 s 2 are each amended to read as follows:
     A member may make the irrevocable election under this section no later than ((six)) twelve months after attaining thirty years of service. The election shall become effective at the beginning of the calendar month following department receipt of employee notification.
     (1) The sum of member contributions made for periods of service after the effective date of the election plus seven and one-half percent interest shall be paid to the member at retirement without a reduction in the member's monthly retirement benefit as determined under RCW 41.40.185.
     (2) Upon retirement, the member's benefit shall be calculated using only the compensation earnable credited prior to the effective date of the member's election. Calculation of the member's average final compensation shall include eligible cash outs of sick and annual leave based on the member's salary and leave accumulations at the time of retirement, except that the amount of a member's average final compensation cannot be higher than if the member had not taken advantage of the election offered under this section.
     (3) Members who have already earned thirty years of service credit prior to July 25, 1999, may participate in the election by notifying the department in writing of their intention by December 31, 1999.
     The department shall continue to collect employer contributions as required in RCW 41.45.060.

Sec. 2   RCW 41.32.4986 and 1999 c 362 s 1 are each amended to read as follows:
     A member may make the irrevocable election under this section no later than ((six)) twelve months after attaining thirty years of service. The election shall become effective at the beginning of the calendar month following department receipt of employee notification.
     (1) The sum of member contributions made for periods of service after the effective date of the election plus seven and one-half percent interest shall be paid to the member at retirement without a reduction in the member's monthly retirement benefit as determined under RCW 41.32.498.
     (2) Upon retirement, the member's benefit shall be calculated using only the earnable compensation credited prior to the effective date of the member's election. Calculation of the member's average earnable compensation shall include eligible cash outs of annual leave based on the member's salary and leave accumulations at the time of retirement, except that the amount of a member's average earnable compensation cannot be higher than if the member had not taken advantage of the election offered under this section.
     (3) Members who have already earned thirty years of service credit prior to July 25, 1999, may participate in the election by notifying the department in writing of their intention by December 31, 1999.
     The department shall continue to collect employer contributions as required in RCW 41.45.060.

NEW SECTION.  Sec. 3   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.