SENATE BILL REPORT
SB 5174


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.

As Reported By Senate Committee On:
Ways & Means, January 30, 2007

Title: An act relating to technical corrections in the public retirement systems.

Brief Description: Making technical corrections in the public retirement systems.

Sponsors: Senators Pridemore and Schoesler; by request of Select Committee on Pension Policy.

Brief History:

Committee Activity: Ways & Means: 1/18/07, 1/30/07 [DPS].


SENATE COMMITTEE ON WAYS & MEANS

Majority Report: That Substitute Senate Bill No. 5174 be substituted therefor, and the substitute bill do pass.Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Pridemore, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Carrell, Fairley, Hatfield, Hewitt, Hobbs, Honeyford, Keiser, Kohl-Welles, Oemig, Parlette, Rasmussen, Regala, Roach, Rockefeller, Schoesler and Tom.

Staff: Erik Sund (786-7454)

Background: The Public Employees', Teachers', School Employees', and Public Safety Employees' Retirement Systems (PERS, TRS, SERS, and PSERS) provide pension benefits for a variety of state and local government employees.

The vesting requirements in Plan 3 of PERS, TRS, and SERS were modified by Chapter 33, Laws of 2006.

An enhanced benefit program for judges and justices was created by Chapter 189, Laws of 2006.

Summary of Bill: Erroneously omitted references to PSERS and SERS are added to a number of related statutes. The sections governing gain-sharing benefits in Plan 3 of PERS, TRS, and SERS are updated to reflect the new vesting requirements. TRS Plan 1 contribution rates are specified for judges who opt into the enhanced benefit program.

EFFECT OF CHANGES MADE BY RECOMMENDED SUBSTITUTE AS PASSED COMMITTEE (Ways & Means): A section is added to the bill affirming the 2000 legislative act that suspended employer and member contributions of plan 1 of the Law Enforcement Officers' and Fire Fighters' (LEOFF) retirement system.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: None.

Persons Testifying: No one.