Read first time 01/23/09.   Referred to Committee on Ways & Means.

     AN ACT Relating to granting half-time service credit for half-time educational employment prior to January 1, 1987, in plans 2 and 3 of the school employees' retirement system and the public employees' retirement system; adding a new section to chapter 41.35 RCW; and adding a new section to chapter 41.40 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 41.35 RCW under the subchapter heading "provisions applicable to plan 2 and plan 3" to read as follows:
     (1) By no later than December 31, 2010, the department shall recalculate service credit for periods of qualifying prior service by an eligible member, as provided for in this section.
     (2) An eligible member is a member who is active in the retirement system and who earns service credit after the effective date of this section and before September 1, 2010.
     (3) A qualifying period of prior service is a school year prior to January 1, 1987, in which the member:
     (a) Was employed in an eligible position by a school district or districts, educational service district, the state school for the deaf, the state school for the blind, an institution of higher education, or a community college;
     (b) Earned earnable compensation for at least six hundred thirty hours as determined by the department;
     (c) Received less than six months of service credit; and
     (d) Has not withdrawn service credit for the school year or has restored any withdrawn service credit for the school year.
     (4) The department shall recalculate service credit for qualifying periods of prior service for an eligible member as follows:
     (a) The member shall receive one-half service credit month for each month of the period from September through August of the following year if he or she earned earnable compensation during that period for at least six hundred thirty hours as determined by the department, and was employed nine months of that period; and
     (b) A member's service credit shall not be reduced under this section for a qualifying period of prior service.

NEW SECTION.  Sec. 2   A new section is added to chapter 41.40 RCW under the subchapter heading "provisions applicable to plan 2 and plan 3" to read as follows:
     (1) By no later than December 31, 2010, the department shall recalculate service credit for periods of qualifying prior service by an eligible member, as provided for in this section.
     (2) An eligible member is a member of plan 2 or 3 who is active in the retirement system and who earns service credit after the effective date of this section and before September 1, 2010.
     (3) A qualifying period of prior service is a school year prior to January 1, 1987, in which the member:
     (a) Was employed in an eligible position by a school district or districts, educational service district, the state school for the deaf, the state school for the blind, an institution of higher education, or a community college;
     (b) Earned earnable compensation for at least six hundred thirty hours as determined by the department;
     (c) Received less than six months of service credit; and
     (d) Has not withdrawn service credit for the school year or has restored any withdrawn service credit for the school year.
     (4) The department shall recalculate service credit for qualifying periods of prior service for an eligible member as follows:
     (a) The member shall receive one-half service credit month for each month of the period from September through August of the following year if he or she earned earnable compensation during that period for at least six hundred thirty hours as determined by the department, and was employed nine months of that period; and
     (b) A member's service credit shall not be reduced under this section for a qualifying period of prior service.