BILL REQ. #:  H-1171.1 

Read first time 01/28/09.   Referred to Committee on Ways & Means.

     AN ACT Relating to public retirement benefits for employees of the supreme court, court of appeals, or superior, district, or municipal courts; amending RCW 41.45.207; adding new sections to chapter 41.40 RCW; adding a new section 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 41.40 RCW under the subchapter heading "plan 1" to read as follows:
     (1) Any member, employed as a court commissioner on September 1, 2009, in the supreme court, court of appeals, or superior, district, or municipal court, 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 as a court commissioner from the date of the election. The court commissioner shall have from September 1, 2009, through January 31, 2010, to make this election. Any court commissioner who has not previously elected to accrue an additional benefit under this section may make this election during any subsequent month of January until the irrevocable election is made.
     (2) Any member hired after September 1, 2009, as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who has not previously elected to accrue an additional benefit under the provisions of this section, shall have ninety days from the date of hire to 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 as a court commissioner from the date of the election. A court commissioner who does not elect to accrue an additional benefit under this section may make this election during any subsequent month of January until the irrevocable election is made.
     (3)(a) A member who made the election under subsection (1) or (2) 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 court commissioner 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.
     (4) In lieu of the retirement allowance provided under RCW 41.40.185, the retirement allowance payable for service as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, for those members who elected to accrue an additional benefit under this section, shall be equal to three and one-half percent of average final compensation for each year of service after the election. The total retirement allowance under this system for members who elected to accrue an additional benefit while a court commissioner shall not exceed seventy-five percent of average final compensation.

NEW SECTION.  Sec. 2   A new section is added to chapter 41.40 RCW under the subchapter heading "plan 2" to read as follows:
     (1) Any member, employed as a court commissioner on September 1, 2009, in the supreme court, court of appeals, or superior, district, or municipal court, 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 as a court commissioner from the date of the election. The court commissioner shall have from September 1, 2009, through January 31, 2010, to make this election. Any court commissioner who has not previously elected to accrue an additional benefit under this section may make this election during any subsequent month of January until the irrevocable election is made.
     (2) Any member hired after September 1, 2009, as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who has not previously elected to accrue an additional benefit under the provisions of this section, shall have ninety days from the date of hire to 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 as a court commissioner from the date of the election. A court commissioner who does not elect to accrue an additional benefit under this section may make this election during any subsequent month of January until the irrevocable election is made.
     (3) Any employee hired after September 1, 2009, as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who has not previously established membership in this system, and who establishes membership in plan 2 under the provisions of RCW 41.40.785, shall have ninety days from the date of hire to 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 as a court commissioner from the date of the election. Any employee hired after September 1, 2009, as a court commissioner, who establishes membership in plan 2 under the provisions of RCW 41.40.785 and does not elect to accrue an additional benefit under this section may make this election during any subsequent month of January until the irrevocable election is made.
     (4)(a) A member who made the election under subsection (1), (2), or (3) 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 court commissioner 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.
     (5) In lieu of the retirement allowance provided under RCW 41.40.620, the retirement allowance payable for service as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, for those members who elected to accrue an additional benefit under the provisions of this section shall be equal to three and one-half percent of average final compensation for each year of such service after the election. The total retirement allowance under this system for those members who elected to accrue an additional benefit as a court commissioner shall not exceed seventy-five percent of average final compensation.

NEW SECTION.  Sec. 3   A new section is added to chapter 41.40 RCW under the subchapter heading "plan 3" to read as follows:
     (1) Any member, employed as a court commissioner on September 1, 2009, in the supreme court, court of appeals, or superior, district, or municipal court, 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 as a court commissioner from the date of the election. The court commissioner shall have from September 1, 2009, through January 31, 2010, to make this election. Any court commissioner who has not elected to accrue an additional benefit under this section may make this election during any subsequent month of January until the irrevocable election is made.
     (2) Any member hired after September 1, 2009, as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who has not previously elected to accrue an additional benefit under the provisions of this section, shall have ninety days from the date of hire to 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 six-tenths percent of average final compensation for each year of future service credit as a court commissioner from the date of the election. A court commissioner who does not elect to accrue an additional benefit under this section may make this election during any subsequent month of January until the irrevocable election is made.
     (3) A court commissioner who made the election under subsection (1) or (2) of this section shall contribute a minimum of seven and one-half percent of pay to the member's defined contribution account.
     (4)(a) A member who made the election under subsection (1) or (2) of this section may apply to the department to increase the member's benefit multiplier by an additional six-tenths percent per year of service for the period in which the member served as a court commissioner 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.
     (5) In lieu of the retirement allowance provided under RCW 41.40.790, the retirement allowance payable for service as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, for those members who elected to accrue an additional benefit under the provisions of this section shall be equal to one and six-tenths percent of average final compensation for each year of such service after the election. The total retirement allowance under this system for those members who elected to accrue an additional benefit while a court commissioner shall not exceed thirty-seven and one-half percent of average final compensation.

NEW SECTION.  Sec. 4   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 plan 1 or plan 2 members employed as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who have elected to accrue an additional benefit under the provisions of section 1 or 2 of this act, shall equal the public employees' retirement system employer contribution rate established under this chapter.
     (2) The required employer contribution rate in support of public employees' retirement system plan 3 members employed as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who have elected to accrue an additional benefit under the provisions of section 3 of this act, shall equal the public employees' retirement system employer contribution rate established under this chapter plus two and one-half percent of pay.
     (3) The required contribution rate for members of the public employees' retirement system plan 2 employed as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who have elected to accrue an additional benefit under the provisions of section 2 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.
     (4) The required contribution rate for members of the public employees' retirement system plan 1 employed as a court commissioner in the supreme court, court of appeals, or superior, district, or municipal court, who have elected to accrue an additional benefit under the provisions of section 1 of this act, shall be the contribution rate established under RCW 41.40.330 plus six and twenty-six one-hundredths percent of pay.

Sec. 5   RCW 41.45.207 and 2006 c 189 s 19 are each amended to read as follows:
     (1) The required employer contribution rate in support of public employees' retirement system plan 1 or plan 2 members employed as district court judges and municipal court judges who elect to participate under RCW 41.40.127(1) ((or 41.40.873(1))), or who are newly elected or appointed after January 1, 2007, shall equal the public employees' retirement system employer contribution rate established under this chapter.
     (2) The required employer contribution rate in support of public employees' retirement system plan 3 members employed as district court judges and municipal court judges who elect to participate under RCW 41.40.873(1), or who are newly elected or appointed after January 1, 2007, for service beginning September 1, 2009, shall equal the public employees' retirement system employer contribution rate established under this chapter plus two and one-half percent of pay.
     (3) 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 RCW 41.40.127(1) or 41.40.873(1), or who are newly elected or appointed after January 1, 2007, shall be two hundred fifty percent of the member contribution rate for the public employees' retirement system plan 2 established under this chapter.
     (((3))) (4) 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 RCW 41.40.124(1), or who are newly elected or appointed after January 1, 2007, shall be the contribution rate established under RCW 41.40.330 plus six and twenty-six one-hundredths percent of pay.

NEW SECTION.  Sec. 6   This act takes effect September 1, 2009.