BILL REQ. #: S-4774.1
| State of Washington | 59th Legislature | 2006 Regular Session |
READ FIRST TIME 01/30/06.
AN ACT Relating to public retirement benefits for justices and judges; adding a new section to chapter 2.14 RCW; adding new sections to chapter 41.40 RCW; adding new sections to chapter 41.32 RCW; adding new sections to chapter 41.45 RCW; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 2.14 RCW
to read as follows:
Beginning January 1, 2007, through December 31, 2007, any member of
the public employees' retirement system eligible to participate in the
judicial retirement account plan under this chapter may make a one-time
irrevocable election, filed in writing with the member's employer, the
department of retirement systems, and the administrative office of the
courts, to discontinue future contributions to the judicial retirement
account plan in lieu of prospective contribution and benefit provisions
under this act.
NEW SECTION. Sec. 2 A new section is added to chapter 41.40 RCW
to read as follows:
(1) Beginning January 1, 2007, any newly elected or appointed
supreme court justice, court of appeals judge, or superior court judge
shall not participate in the judicial retirement account plan under
chapter 2.14 RCW and shall be subject to the benefit and contribution
provisions under this act.
(2) Beginning January 1, 2007, any newly elected or appointed
supreme court justice, court of appeals judge, or superior court judge,
who has not previously established membership in this system, shall
become a member of plan 2 and shall be subject to the benefit and
contribution provisions under this act.
NEW SECTION. Sec. 3 A new section is added to chapter 41.32 RCW
to read as follows:
Beginning January 1, 2007, any newly elected or appointed supreme
court justice, court of appeals judge, or superior court judge, who is
a member of plan 1, shall not participate in the judicial retirement
account plan under chapter 2.14 RCW in lieu of prospective contribution
and benefit provisions under this act.
NEW SECTION. Sec. 4 A new section is added to chapter 41.40 RCW
to read as follows:
(1) Beginning January 1, 2007, any newly elected or appointed
district court judge or municipal court judge, who is not eligible for
membership under chapter 41.28 RCW, shall be subject to the benefit and
contribution provisions under this act.
(2) Beginning January 1, 2007, any newly elected or appointed
district court judge, or municipal court judge, who has not previously
established membership in this system, and who is not eligible for
membership under chapter 41.28 RCW, shall become a member of plan 2 and
shall be subject to the benefit and contribution provisions under this
act.
NEW SECTION. Sec. 5 A new section is added to chapter 41.40 RCW
to read as follows:
(1) Between January 1, 2007, and December 31, 2007, a member of
plan 1 or plan 2 employed as a supreme court justice, court of appeals
judge, or superior court judge may make a one-time irrevocable
election, filed in writing with the member's employer, the department,
and the administrative office of the courts, to accrue an additional
benefit equal to one and one-half percent of average final compensation
for each year of future service credit from the date of the election in
lieu of future employee and employer contributions to the judicial
retirement account plan under chapter 2.14 RCW.
(2)(a) A member who chooses to make the election under subsection
(1) of this section may apply to the department to increase the
member's benefit multiplier by an additional one and one-half percent
per year of service for the period in which the member served as a
justice or judge prior to the election. The member shall pay, for the
applicable period of service, the actuarially equivalent value of the
increase in the member's benefit resulting from the increase in the
benefit multiplier as determined by the director. This payment must be
made prior to retirement.
(b) Subject to rules adopted by the department, a member applying
to increase the member's benefit multiplier under this section may pay
all or part of the cost with a lump sum payment, eligible rollover,
direct rollover, or trustee-to-trustee transfer from an eligible
retirement plan. The department shall adopt rules to ensure that all
lump sum payments, rollovers, and transfers comply with the
requirements of the internal revenue code and regulations adopted by
the internal revenue service. The rules adopted by the department may
condition the acceptance of a rollover or transfer from another plan on
the receipt of information necessary to enable the department to
determine the eligibility of any transferred funds for tax-free
rollover treatment or other treatment under federal income tax law.
NEW SECTION. Sec. 6 A new section is added to chapter 41.40 RCW
to read as follows:
(1) Between January 1, 2007, and December 31, 2007, a member of
plan 1 or plan 2 employed as a district court judge or municipal court
judge may make a one-time irrevocable election, filed in writing with
the member's employer and the department, to accrue an additional
benefit equal to one and one-half percent of average final compensation
for each year of future service credit from the date of the election.
(2)(a) A member who chooses to make the election under subsection
(1) of this section may apply to the department to increase the
member's benefit multiplier by one and one-half percent per year of
service for the period in which the member served as a judge prior to
the election. The member shall pay, for the applicable period of
service, the actuarially equivalent value of the increase in the
member's benefit resulting from the increase in the benefit multiplier
as determined by the director. This payment must be made prior to
retirement.
(b) Subject to rules adopted by the department, a member applying
to increase the member's benefit multiplier under this section may pay
all or part of the cost with a lump sum payment, eligible rollover,
direct rollover, or trustee-to-trustee transfer from an eligible
retirement plan. The department shall adopt rules to ensure that all
lump sum payments, rollovers, and transfers comply with the
requirements of the internal revenue code and regulations adopted by
the internal revenue service. The rules adopted by the department may
condition the acceptance of a rollover or transfer from another plan on
the receipt of information necessary to enable the department to
determine the eligibility of any transferred funds for tax-free
rollover treatment or other treatment under federal income tax law.
NEW SECTION. Sec. 7 A new section is added to chapter 41.32 RCW
to read as follows:
(1) Between January 1, 2007, and December 31, 2007, a member of
plan 1 employed as a supreme court justice, court of appeals judge, or
superior court judge may make a one-time irrevocable election, filed in
writing with the member's employer, the department, and the
administrative office of the courts, to accrue an additional benefit
equal to one and one-half percent of average final compensation for
each year of future service credit from the date of the election.
(2)(a) A member who chooses to make the election under subsection
(1) of this section may apply to the department to increase the
member's benefit multiplier by one and one-half percent per year of
service for the period in which the member served as a justice or judge
prior to the election. The member shall pay, for the applicable period
of service, the actuarially equivalent value of the increase in the
member's benefit resulting from the increase in the benefit multiplier
as determined by the director. This payment must be made prior to
retirement.
(b) Subject to rules adopted by the department, a member applying
to increase the member's benefit multiplier under this section may pay
all or part of the cost with a lump sum payment, eligible rollover,
direct rollover, or trustee-to-trustee transfer from an eligible
retirement plan. The department shall adopt rules to ensure that all
lump sum payments, rollovers, and transfers comply with the
requirements of the internal revenue code and regulations adopted by
the internal revenue service. The rules adopted by the department may
condition the acceptance of a rollover or transfer from another plan on
the receipt of information necessary to enable the department to
determine the eligibility of any transferred funds for tax-free
rollover treatment or other treatment under federal income tax law.
NEW SECTION. Sec. 8 A new section is added to chapter 41.40 RCW
to read as follows:
(1) Between January 1, 2007, and December 31, 2007, a member of
plan 3 employed as a supreme court justice, court of appeals judge, or
superior court judge may make a one-time irrevocable election, filed in
writing with the member's employer, the department, and the
administrative office of the courts, to accrue an additional plan 3
defined benefit equal to six-tenths percent of average final
compensation for each year of future service credit from the date of
the election in lieu of future employer contributions to the judicial
retirement account plan under chapter 2.14 RCW.
(2)(a) A member who chooses to make the election under subsection
(1) of this section may apply to the department to increase the
member's benefit multiplier by six-tenths percent per year of service
for the period in which the member served as a justice or judge prior
to the election. The member shall pay, for the applicable period of
service, the actuarially equivalent value of the increase in the
member's benefit resulting from the increase in the benefit multiplier
as determined by the director. This payment must be made prior to
retirement.
(b) Subject to rules adopted by the department, a member applying
to increase the member's benefit multiplier under this section may pay
all or part of the cost with a lump sum payment, eligible rollover,
direct rollover, or trustee-to-trustee transfer from an eligible
retirement plan. The department shall adopt rules to ensure that all
lump sum payments, rollovers, and transfers comply with the
requirements of the internal revenue code and regulations adopted by
the internal revenue service. The rules adopted by the department may
condition the acceptance of a rollover or transfer from another plan on
the receipt of information necessary to enable the department to
determine the eligibility of any transferred funds for tax-free
rollover treatment or other treatment under federal income tax law.
(3) A member who chooses to make the election under subsection (1)
of this section shall contribute a minimum of seven and one-half
percent of pay to the member's defined contribution account.
NEW SECTION. Sec. 9 A new section is added to chapter 41.40 RCW
to read as follows:
(1) Between January 1, 2007, and December 31, 2007, a member of
plan 3 employed as a district court judge or municipal court judge may
make a one-time irrevocable election, filed in writing with the
member's employer and the department, to accrue an additional plan 3
defined benefit equal to six-tenths percent of average final
compensation for each year of future service credit from the date of
the election.
(2)(a) A member who chooses to make the election under subsection
(1) of this section may apply to the department to increase the
member's benefit multiplier by six-tenths percent per year of service
for the period in which the member served as a judge prior to the
election. The member shall pay, for the applicable period of service,
the actuarially equivalent value of the increase in the member's
benefit resulting from the increase in the benefit multiplier as
determined by the director. This payment must be made prior to
retirement.
(b) Subject to rules adopted by the department, a member applying
to increase the member's benefit multiplier under this section may pay
all or part of the cost with a lump sum payment, eligible rollover,
direct rollover, or trustee-to-trustee transfer from an eligible
retirement plan. The department shall adopt rules to ensure that all
lump sum payments, rollovers, and transfers comply with the
requirements of the internal revenue code and regulations adopted by
the internal revenue service. The rules adopted by the department may
condition the acceptance of a rollover or transfer from another plan on
the receipt of information necessary to enable the department to
determine the eligibility of any transferred funds for tax-free
rollover treatment or other treatment under federal income tax law.
(3) A member who chooses to make the election under subsection (1)
of this section shall contribute a minimum of seven and one-half
percent of pay to the member's defined contribution account.
NEW SECTION. Sec. 10 A new section is added to chapter 41.40 RCW
under the subchapter heading "plan 1" to read as follows:
(1) In lieu of the retirement allowance provided under RCW
41.40.185, the retirement allowance payable for service as a supreme
court justice, court of appeals judge, or superior court judge, for a
member who elects to participate under section 5(1) of this act, shall
be equal to three and one-half percent of average final compensation
for each year of service earned after the date of the election. The
total retirement benefit accrued or purchased under this act in
combination with benefits accrued during periods served prior to the
election shall not exceed seventy-five percent of average final
compensation.
(2) In lieu of the retirement allowance provided under RCW
41.40.185, the retirement allowance payable for service as a supreme
court justice, court of appeals judge, or superior court judge, for
those justices or judges newly elected or appointed after the effective
date of this act, shall be equal to three and one-half percent of
average final compensation for each year of service after the effective
date of this act. The total retirement benefits accrued under this act
in combination with benefits accrued during periods served prior to the
effective date of this act shall not exceed seventy-five percent of
average final compensation.
NEW SECTION. Sec. 11 A new section is added to chapter 41.32 RCW
under the subchapter heading "plan 1" to read as follows:
(1) In lieu of the retirement allowance provided under RCW
41.32.498, the retirement allowance payable for service as a supreme
court justice, court of appeals judge, or superior court judge, for
those justices or judges who elected to participate under section 7(1)
of this act, shall be equal to three and one-half percent of average
final compensation for each year of service earned after the date of
the election. The total retirement benefit accrued or purchased under
this act in combination with benefits accrued during periods served
prior to the election shall not exceed seventy-five percent of average
final compensation.
(2) In lieu of the retirement allowance provided under RCW
41.32.498, the retirement allowance payable for service as a supreme
court justice, court of appeals judge, or superior court judge, for
those justices or judges newly elected or appointed after the effective
date of this act, shall be equal to three and one-half percent of
average final compensation for each year of service after the effective
date of this act. The total retirement benefits accrued under this act
in combination with benefits accrued during periods served prior to the
effective date of this act shall not exceed seventy-five percent of
average final compensation.
NEW SECTION. Sec. 12 A new section is added to chapter 41.40 RCW
under the subchapter heading "plan 1" to read as follows:
(1) In lieu of the retirement allowance provided under RCW
41.40.185, the retirement allowance payable for service as a district
court judge or municipal court judge, for those judges who elected to
participate under section 6(1) of this act, shall be equal to three and
one-half percent of average final compensation for each year of service
earned after the election. The total retirement benefit accrued or
purchased under this act in combination with benefits accrued during
periods served prior to the election shall not exceed seventy-five
percent of average final compensation.
(2) In lieu of the retirement allowance provided under RCW
41.40.185, the retirement allowance payable for service as a district
court judge, or municipal court judge, for those judges newly elected
or appointed after the effective date of this act, and who are not
eligible for membership under chapter 41.28 RCW, shall be equal to
three and one-half percent of average final compensation for each year
of service after the effective date of this act. The total retirement
benefits accrued under this act in combination with benefits accrued
during periods served prior to the effective date of this act shall not
exceed seventy-five percent of average final compensation.
NEW SECTION. Sec. 13 A new section is added to chapter 41.40 RCW
under the subchapter heading "plan 2" to read as follows:
(1) In lieu of the retirement allowance provided under RCW
41.40.620, the retirement allowance payable for service as a supreme
court justice, court of appeals judge, or superior court judge, for
those justices or judges who elected to participate under section 5(1)
of this act, shall be equal to three and one-half percent of average
final compensation for each year of service earned after the election.
The total retirement benefit accrued or purchased under this act in
combination with benefits accrued during periods served prior to the
election shall not exceed seventy-five percent of average final
compensation.
(2) In lieu of the retirement allowance provided under RCW
41.40.620, the retirement allowance payable for service as a supreme
court justice, court of appeals judge, or superior court judge, for
those justices or judges newly elected or appointed after the effective
date of this act, shall be equal to three and one-half percent of
average final compensation for each year of service after the effective
date of this act. The total retirement benefits accrued under this act
in combination with benefits accrued during periods served prior to the
effective date of this act shall not exceed seventy-five percent of
average final compensation.
NEW SECTION. Sec. 14 A new section is added to chapter 41.40 RCW
under the subchapter heading "plan 2" to read as follows:
(1) In lieu of the retirement allowance provided under RCW
41.40.620, the retirement allowance payable for service as a district
court judge or municipal court judge for those judges who elected to
participate under section 6(1) of this act shall be equal to three and
one-half percent of the average final compensation for each year of
such service earned after the election. The total retirement benefit
accrued or purchased under this act in combination with benefits
accrued during periods served prior to the election shall not exceed
seventy-five percent of average final compensation.
(2) In lieu of the retirement allowance provided under RCW
41.40.620, the retirement allowance payable for service as a district
court judge, or municipal court judge, for those judges newly elected
or appointed after the effective date of this act, and who are not
eligible for membership under chapter 41.28 RCW, shall be equal to
three and one-half percent of average final compensation for each year
of service after the effective date of this act. The total retirement
benefits accrued under this act in combination with benefits accrued
during periods served prior to the effective date of this act shall not
exceed seventy-five percent of average final compensation.
NEW SECTION. Sec. 15 A new section is added to chapter 41.40 RCW
under the subchapter heading "plan 3" to read as follows:
In lieu of the retirement allowance provided under RCW 41.40.790,
the retirement allowance payable for service as a supreme court
justice, court of appeals judge, or superior court judge, for those
justices or judges who elected to participate under section 8(1) of
this act, shall be equal to one and six-tenths percent of average final
compensation for each year of service earned after the election. The
total retirement benefit accrued or purchased under this act in
combination with benefits accrued during periods served prior to the
election shall not exceed thirty-seven and one-half percent of average
final compensation.
NEW SECTION. Sec. 16 A new section is added to chapter 41.40 RCW
under the subchapter heading "plan 3" to read as follows:
In lieu of the retirement allowance provided under RCW 41.40.790,
the retirement allowance payable for service as a district court judge
or municipal court judge, for those judges who elected to participate
under section 9(1) of this act, shall be equal to one and six-tenths
percent of average final compensation for each year of service earned
after the election. The total retirement benefit accrued or purchased
under this act in combination with benefits accrued during periods
served prior to the election shall not exceed thirty-seven and one-half
percent of average final compensation.
NEW SECTION. Sec. 17 A new section is added to chapter 41.45 RCW
to read as follows:
(1) The required employer contribution rate in support of public
employees' retirement system members employed as supreme court
justices, court of appeals judges, and superior court judges who elect
to participate under section 5(1) or 8(1) of this act, or who are newly
elected or appointed after the effective date of this act, shall
consist of the public employees' retirement system employer
contribution rate established under this chapter plus two and one-half
percent of pay.
(2) The required contribution rate for members of the public
employees' retirement system plan 2 employed as supreme court justices,
court of appeals judges, and superior court judges who elect to
participate under section 5(1) or 8(1) of this act, or who are newly
elected or appointed after the effective date of this act, shall be two
hundred fifty percent of the member contribution rate for the public
employees' retirement system plan 2 established under this chapter less
two and one-half percent of pay.
(3) The required contribution rate for members of the public
employees' retirement system plan 1 employed as supreme court justices,
court of appeals judges, and superior court judges who elect to
participate under section 5(1) of this act, or who are newly elected or
appointed after the effective date of this act, shall be the
contribution rate established under RCW 41.40.330 plus three and
seventy-six one-hundredths percent of pay.
NEW SECTION. Sec. 18 A new section is added to chapter 41.45 RCW
to read as follows:
(1) The required employer contribution rate in support of teachers'
retirement system members employed as supreme court justices, court of
appeals judges, and superior court judges who elect to participate
under section 7(1) of this act, or who are newly elected or appointed
after the effective date of this act, shall consist of the following:
(a) The teachers' retirement system employer contribution rate
established under this chapter; plus
(b) An optional amount that shall not exceed two and one-half
percent of pay.
(2) The required contribution rate for members of the teachers'
retirement system plan 1 employed as supreme court justices, court of
appeals judges, and superior court judges who elect to participate
under section 7(1) of this act, or who are newly elected or appointed
after the effective date of this act, shall be the deductions
established under RCW 41.50.235 plus six and twenty-six one-hundredths
percent of pay less any optional employer contribution made under
subsection (1)(b) of this section.
NEW SECTION. Sec. 19 A new section is added to chapter 41.45 RCW
to read as follows:
(1) The required employer contribution rate in support of public
employees' retirement system members employed as district court judges
and municipal court judges who elect to participate under section 6(1)
or 9(1) of this act, or who are newly elected or appointed after the
effective date of this act, shall consist of the public employees'
retirement system employer contribution rate established under this
chapter.
(2) The required contribution rate for members of the public
employees' retirement system plan 2 employed as district court judges
or municipal court judges who elect to participate under section 6(1)
or 9(1) of this act, or who are newly elected or appointed after the
effective date of this act, shall be two hundred fifty percent of the
member contribution rate for the public employees' retirement system
plan 2 established under this chapter.
(3) The required contribution rate for members of the public
employees' retirement system plan 1 employed as district court judges
or municipal court judges who elect to participate under section 5(1)
of this act, or who are newly elected or appointed after the effective
date of this act, shall be the contribution rate established under RCW
41.40.330 plus six and twenty-six one-hundredths percent of pay less
any optional employer contribution made under subsection (1)(b) of this
section.
NEW SECTION. Sec. 20 This act takes effect January 1, 2007.