Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Ways & Means Committee

HB 2196

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 Summary of Bill

Permits service credit transferred from the Law Enforcement Officers' and Firefighters' Retirement System Plan 1 to the Public Employees' Retirement System Plan 1 or the Washington State Patrol Retirement System Plan 1 between July 1, 1997, and July 1, 1998, to apply to a member's eligibility for non-interruptive military service credit.

Background:

The Law Enforcement Officers' and Fire Fighters' Retirement System, Plan 1 (LEOFF Plan 1) provides retirement and disability benefits to law enforcement officers and fire fighters who entered eligible employment between 1969 and 1977. Since 1977, eligible law enforcement officers and fire fighters have entered LEOFF Plan 2. 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. Since 1977, eligible PERS members have enter PERS Plans 2 and 3. The Washington State Patrol Retirement System (WSPRS) provides retirement and disability benefits to fully commissioned officers of the Washington State Patrol. The WSPRS Plan 1 was closed to new members on December 31, 2002.

Only two plans in the Washington state retirement systems allow for the inclusion of up to five years of prior, or non-interruptive, military service when determining a member's total service credit for calculating their retirement allowance -- PERS Plan 1 and WSPRS Plan 1. Members of PERS Plan 1 and WSPRS Plan 1 must have at least 25 years of member service before the prior military service can be included. No other of the remaining plans, including LEOFF Plan 1, allow for the inclusion of prior military service. All systems and plans allow for the inclusion of up to five years of interruptive military service, as long as the member makes the necessary member contributions.

Service credit that has been transferred from LEOFF Plan 1 does not apply to the eligibility requirements for inclusion of prior military service in either PERS 1 or WSPRS 1.

Summary of Bill:

Members that transferred service credit to from LEOFF Plan 1 to PERS Plans 1 or the WSPRS Plan 1 between July 1, 1997, and July 1, 1998, are permitted to include the years of transferred service in meeting the 25 years of member service requirement to qualify for up to five years of prior, or non-interruptive, military service credit.