5569 AMS HONE SUND 002

SB 5569 - S AMD 109

By Senator Honeyford

NOT CONSIDERED 05/25/2011

    Strike everything after the enacting clause and insert the following:

"   Sec. 1. RCW 41.32.570 and 2007 c 50 s 3 are each amended to read as follows:

    (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every seven hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

    (b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred forty hours per month.  Any monthly benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

    (2) Except under subsection (3) of this section, any retired teacher or retired administrator who enters service in any public ((educational institution)) school, educational service district, state institution of higher education in an instructional capacity, or, after the effective date of this act, state institution of higher education in a non-instructional capacity, in Washington state at least one calendar month after his or her accrual date shall cease to receive pension payments while engaged in such service, after the retiree has rendered service for more than eight hundred sixty-seven hours in a school year.

    (3) Any retired teacher or retired administrator who enters service in any public ((educational institution)) school, educational service district, state institution of higher education in an instructional capacity, or, after the effective date of this act, state institution of higher education in a non-instructional capacity, in Washington state one and one-half calendar months or more after his or her accrual date and:

    (a) Is hired pursuant to a written policy into a position for which the school board has documented a justifiable need to hire a retiree into the position;

    (b) Is hired through the established process for the position with the approval of the school board or other highest decision-making authority of the prospective employer;

    (c) Whose employer retains records of the procedures followed and the decisions made in hiring the retired teacher or retired administrator and provides those records in the event of an audit; and

    (d) The employee has not already rendered a cumulative total of more than one thousand nine hundred hours of service while in receipt of pension payments beyond an annual threshold of eight hundred sixty-seven hours;

shall cease to receive pension payments while engaged in that service after the retiree has rendered service for more than one thousand five hundred hours in a school year.  The one thousand nine hundred hour cumulative total limitation under this section applies prospectively after July 22, 2007.

    (4) When a retired teacher or administrator renders service beyond eight hundred sixty-seven hours, the department shall collect from the employer the applicable employer retirement contributions for the entire duration of the member's employment during that fiscal year.

    (5) The department shall collect and provide the state actuary with information relevant to the use of this section for the select committee on pension policy.

    (6) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to be employed for more than five hundred twenty-five hours per year without a reduction of his or her pension.

NEW SECTION. Sec. 2.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

EFFECT:   Revises the exemption from post-retirement employment restrictions for TRS 1 members employed with a state institution of higher education in a non-instructional capacity to apply only to members to reenter service before the effective date of this act.

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