| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Appropriations Committee | |
HB 1067
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Authorizing certain members of the teachers' retirement system plan 1 to join the public employees' retirement system plan 1.
Sponsors: Representatives Haigh, Priest, Conway, Fromhold, Green, Ericks, Simpson, Kenney and B. Sullivan.
Brief Summary of Bill |
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Hearing Date: 1/22/07
Staff: David Pringle (786-7310).
Background:
The Public Employees' Retirement System (PERS) provides retirement benefits for most
regularly compensated employees in ongoing positions who work for most public employers in
Washington, except for employees covered by one of the other state or first class cities'
retirement plans. The Teachers Retirement System (TRS) provides retirement benefits to
individuals qualified to teach (certificated) and employed by a public school, educational service
district, or the state in an instructional, administrative, or supervisory capacity. As one of the
other state retirement systems, members of TRS are excluded from membership in PERS.
PERS Plan 1 and TRS Plan 1 were both closed to individuals who first became members on or
after October 1, 1977. Between October 1, 1977 and June 30, 1996, members eligible for TRS
entered TRS Plan 2, and on or after July 1, 1996, entered TRS Plan 3. Between October 1, 1977
and 2002, new members of PERS entered Plan 2, and beginning in March of 2002 for state
agencies or September 2002 for other PERS employers, new member of PERS could choose to
enter either PERS 2 or 3.
PERS Plan 1 is unique among the PERS and TRS Plans in that it offers membership to
individuals employed by any labor guild, association, or organization of which the local division
of which is composed of at least forty percent of employees who work for an employer that is
covered by the PERS definition of employer. Because PERS 1 was closed to new members from
any type of employer on October 1, 1977, no new members have generally been eligible to join
PERS 1 since that date, regardless of employer type.
Summary of Bill:
A member of TRS 1 employed by the School Employees of Washington may transfer to PERS 1
for future years of service if (1) the member has between 10 and 20 years of service in TRS 1,
and (2) the member chooses to between July 1, 2007 and September 30, 2007, irrevocably
transfer to PERS 1 for future years of service.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill contains an emergency clause and takes effect on July 1, 2007.