BILL REQ. #: S-0078.4
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/26/11. Referred to Committee on Early Learning & K-12 Education.
AN ACT Relating to teacher performance; amending RCW 28A.150.410, 28A.400.200, 28A.405.140, 28A.405.210, 28A.405.220, and 41.35.010; reenacting and amending RCW 41.32.010 and 41.40.010; adding a new section to chapter 28A.625 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 28A.625
RCW to read as follows:
(1) The top teacher recognition grant program is established to
encourage excellence in the classroom teaching ranks and to recognize
the most outstanding classroom teachers in Washington state.
(2) Subject to available funds provided specifically in the omnibus
appropriations act for this purpose, each educational service district
shall provide a grant to each individual teacher, up to the top two
percent of teachers who are teaching in a school district within the
educational service district, based on merit as determined by the
educational service district.
(3) Each grant recipient shall be chosen and certified by the
educational service district board of directors from a list of nominees
submitted by each school district's board of directors. The school
district board's nominees shall be selected from a list of candidates
submitted by the school principal using selection criteria and a
process developed by the board after receiving input from the
community.
(4) Each two-year grant shall be calculated as the amount of added
funds needed to provide each selected individual teacher a total
salary, consisting of state plus local funding, of an amount equal to
one hundred thousand dollars annually.
(5) The grants are not:
(a) Subject to the collective bargaining laws established in
chapter 41.59 RCW;
(b) Considered salary, compensation, or a supplemental contract for
the purposes of RCW 28A.150.410 and 28A.400.200, and chapter 41.59 RCW;
(c) Included for the purposes of computing a retirement allowance
under any public retirement system in this state; or
(d) Basic education funding.
Sec. 2 RCW 28A.150.410 and 2010 c 236 s 10 are each amended to
read as follows:
(1)(a) The legislature shall establish for each school year in the
appropriations act a statewide salary allocation schedule, for
allocation purposes only, to be used to distribute funds for basic
education certificated instructional staff salaries under RCW
28A.150.260.
(b) For the purposes of this section, the staff allocations for
classroom teachers, teacher librarians, guidance counselors, and
student health services staff under RCW 28A.150.260 are considered
allocations for certificated instructional staff.
(c) For purposes of this section, teacher recognition grants
authorized under section 1 of this act are not considered allocations
for certificated instructional staff.
(2) Salary allocations for state-funded basic education
certificated instructional staff shall be calculated by the
superintendent of public instruction by determining the district's
average salary for certificated instructional staff, using the
statewide salary allocation schedule and related documents, conditions,
and limitations established by the omnibus appropriations act.
(3) Beginning January 1, 1992, no more than ninety college quarter-hour credits received by any employee after the baccalaureate degree
may be used to determine compensation allocations under the state
salary allocation schedule and LEAP documents referenced in the omnibus
appropriations act, or any replacement schedules and documents, unless:
(a) The employee has a master's degree; or
(b) The credits were used in generating state salary allocations
before January 1, 1992.
(4) Beginning in the 2007-08 school year, the calculation of years
of service for occupational therapists, physical therapists, speech-language pathologists, audiologists, nurses, social workers,
counselors, and psychologists regulated under Title 18 RCW may include
experience in schools and other nonschool positions as occupational
therapists, physical therapists, speech-language pathologists,
audiologists, nurses, social workers, counselors, or psychologists.
The calculation shall be that one year of service in a nonschool
position counts as one year of service for purposes of this chapter, up
to a limit of two years of nonschool service. Nonschool years of
service included in calculations under this subsection shall not be
applied to service credit totals for purposes of any retirement benefit
under chapter 41.32, 41.35, or 41.40 RCW, or any other state retirement
system benefits.
Sec. 3 RCW 28A.400.200 and 2010 c 235 s 401 are each amended to
read as follows:
(1) Every school district board of directors shall fix, alter,
allow, and order paid salaries and compensation for all district
employees in conformance with this section.
(2)(a) Salaries for certificated instructional staff shall not be
less than the salary provided in the appropriations act in the
statewide salary allocation schedule for an employee with a
baccalaureate degree and zero years of service; and
(b) Salaries for certificated instructional staff with a master's
degree shall not be less than the salary provided in the appropriations
act in the statewide salary allocation schedule for an employee with a
master's degree and zero years of service.
(3)(a) The actual average salary paid to certificated instructional
staff shall not exceed the district's average certificated
instructional staff salary used for the state basic education
allocations for that school year as determined pursuant to RCW
28A.150.410.
(b) Fringe benefit contributions for certificated instructional
staff shall be included as salary under (a) of this subsection only to
the extent that the district's actual average benefit contribution
exceeds the amount of the insurance benefits allocation provided per
certificated instructional staff unit in the state operating
appropriations act in effect at the time the compensation is payable.
For purposes of this section, fringe benefits shall not include payment
for unused leave for illness or injury under RCW 28A.400.210; employer
contributions for old age survivors insurance, workers' compensation,
unemployment compensation, and retirement benefits under the Washington
state retirement system; or employer contributions for health benefits
in excess of the insurance benefits allocation provided per
certificated instructional staff unit in the state operating
appropriations act in effect at the time the compensation is payable.
A school district may not use state funds to provide employer
contributions for such excess health benefits.
(c) Salary and benefits for certificated instructional staff in
programs other than basic education shall be consistent with the salary
and benefits paid to certificated instructional staff in the basic
education program.
(4) Salaries and benefits for certificated instructional staff may
exceed the limitations in subsection (3) of this section only by
separate contract for additional time, for additional responsibilities,
for incentives, or for implementing specific measurable innovative
activities, including professional development, specified by the school
district to: (a) Close one or more achievement gaps, (b) focus on
development of science, technology, engineering, and mathematics (STEM)
learning opportunities, or (c) provide arts education. Beginning
September 1, 2011, school districts shall annually provide a brief
description of the innovative activities included in any supplemental
contract to the office of the superintendent of public instruction.
The office of the superintendent of public instruction shall summarize
the district information and submit an annual report to the education
committees of the house of representatives and the senate.
Supplemental contracts shall not cause the state to incur any present
or future funding obligation. Supplemental contracts shall be subject
to the collective bargaining provisions of chapter 41.59 RCW and the
provisions of RCW 28A.405.240, shall not exceed one year, and if not
renewed shall not constitute adverse change in accordance with RCW
28A.405.300 through 28A.405.380. No district may enter into a
supplemental contract under this subsection for the provision of
services which are a part of the basic education program required by
Article IX, section 3 of the state Constitution.
(5) Employee benefit plans offered by any district shall comply
with RCW 28A.400.350 ((and)), 28A.400.275, and 28A.400.280.
(6) Teacher recognition grants authorized in section 1 of this act
are not included as salary under this section and may not be included
in salary limitations.
Sec. 4 RCW 28A.405.140 and 1993 c 336 s 403 are each amended to
read as follows:
(1) After an evaluation conducted pursuant to RCW 28A.405.100, the
principal or the evaluator may require the teacher to take in-service
training provided by the district in the area of teaching skills
needing improvement, and may require the teacher to have a mentor for
purposes of achieving such improvement.
(2) Notwithstanding the provisions of RCW 28A.405.210 and
28A.405.220, if after three years of unsuccessful improvement based on
the in-service training and mentoring provided pursuant to subsection
(1) of this section and after a finding that the lack of a teacher's
progress in improving his or her teaching skills is detrimental to the
academic performance of the teacher's students, the principal may
initiate an action to dismiss the teacher. In the event the principal
makes this determination, the teacher shall be notified in writing.
The notification must include a detailed explanation of the reasons for
the principal making this determination.
(3) Within ten days of receiving notice pursuant to this section,
every teacher receiving such notice, at his or her request, shall be
provided an opportunity to meet informally with the principal for the
purpose of requesting that the principal reconsider his or her
decision. At the meeting, the teacher must be given the opportunity to
refute any facts upon which the principal's determination was made.
(4) Within ten days following the meeting with the teacher, the
principal shall either reinstate the teacher or shall submit to the
school district board of directors for consideration at its next
regular meeting a written report recommending that the employment
contract of the teacher be terminated. A copy of the report must be
delivered to the teacher at least ten days before the scheduled meeting
of the board of directors. At the board of directors' meeting, the
teacher must be given the opportunity to present information and
provide documentation refuting any facts upon which the principal's
determination was made.
(5) The board of directors shall notify the teacher in writing of
its final decision within ten days following the meeting at which the
principal's recommendation was considered. The decision of the board
of directors to terminate the contract of a teacher pursuant to this
section shall be final and not subject to appeal.
(6) All school district collective bargaining agreements signed,
adopted, or renewed after September 1, 2011, shall include provisions
consistent with this section.
Sec. 5 RCW 28A.405.210 and 2010 c 235 s 303 are each amended to
read as follows:
No teacher, principal, supervisor, superintendent, or other
certificated employee, holding a position as such with a school
district, hereinafter referred to as "employee", shall be employed
except by written order of a majority of the directors of the district
at a regular or special meeting thereof, nor unless he or she is the
holder of an effective teacher's certificate or other certificate
required by law or the Washington professional educator standards board
for the position for which the employee is employed.
Except as provided in RCW 28A.405.140, the board shall make with
each employee employed by it a written contract, which shall be in
conformity with the laws of this state, and except as otherwise
provided by law, limited to a term of not more than one year. Every
such contract shall be made in duplicate, one copy to be retained by
the school district superintendent or secretary and one copy to be
delivered to the employee. No contract shall be offered by any board
for the employment of any employee who has previously signed an
employment contract for that same term in another school district of
the state of Washington unless such employee shall have been released
from his or her obligations under such previous contract by the board
of directors of the school district to which he or she was obligated.
Any contract signed in violation of this provision shall be void.
In the event it is determined that there is probable cause or
causes that the employment contract of an employee should not be
renewed by the district for the next ensuing term such employee shall
be notified in writing on or before May 15th preceding the commencement
of such term of that determination, or if the omnibus appropriations
act has not passed the legislature by May 15th, then notification shall
be no later than June 15th, which notification shall specify the cause
or causes for nonrenewal of contract. Such determination of probable
cause for certificated employees, other than the superintendent, shall
be made by the superintendent. Such notice shall be served upon the
employee personally, or by certified or registered mail, or by leaving
a copy of the notice at the house of his or her usual abode with some
person of suitable age and discretion then resident therein. Every
such employee so notified, at his or her request made in writing and
filed with the president, chair or secretary of the board of directors
of the district within ten days after receiving such notice, shall be
granted opportunity for hearing pursuant to RCW 28A.405.310 to
determine whether there is sufficient cause or causes for nonrenewal of
contract: PROVIDED, That any employee receiving notice of nonrenewal
of contract due to an enrollment decline or loss of revenue may, in his
or her request for a hearing, stipulate that initiation of the
arrangements for a hearing officer as provided for by RCW
28A.405.310(4) shall occur within ten days following July 15th rather
than the day that the employee submits the request for a hearing. If
any such notification or opportunity for hearing is not timely given,
the employee entitled thereto shall be conclusively presumed to have
been reemployed by the district for the next ensuing term upon
contractual terms identical with those which would have prevailed if
his or her employment had actually been renewed by the board of
directors for such ensuing term.
This section shall not be applicable to "provisional employees" as
so designated in RCW 28A.405.220; transfer to a subordinate
certificated position as that procedure is set forth in RCW 28A.405.230
or 28A.405.245 shall not be construed as a nonrenewal of contract for
the purposes of this section.
Sec. 6 RCW 28A.405.220 and 2010 c 235 s 203 are each amended to
read as follows:
(1) Notwithstanding the provisions of RCW 28A.405.140 and
28A.405.210, every person employed by a school district in a teaching
or other nonsupervisory certificated position shall be subject to
nonrenewal of employment contract as provided in this section during
the first three years of employment by such district, unless: (a) The
employee has previously completed at least two years of certificated
employment in another school district in the state of Washington, in
which case the employee shall be subject to nonrenewal of employment
contract pursuant to this section during the first year of employment
with the new district; or (b) the school district superintendent may
make a determination to remove an employee from provisional status if
the employee has received one of the top two evaluation ratings during
the second year of employment by the district. Employees as defined in
this section shall hereinafter be referred to as "provisional
employees."
(2) In the event the superintendent of the school district
determines that the employment contract of any provisional employee
should not be renewed by the district for the next ensuing term such
provisional employee shall be notified thereof in writing on or before
May 15th preceding the commencement of such school term, or if the
omnibus appropriations act has not passed the legislature by May 15th,
then notification shall be no later than June 15th, which notification
shall state the reason or reasons for such determination. Such notice
shall be served upon the provisional employee personally, or by
certified or registered mail, or by leaving a copy of the notice at the
place of his or her usual abode with some person of suitable age and
discretion then resident therein. The determination of the
superintendent shall be subject to the evaluation requirements of RCW
28A.405.100.
(3) Every such provisional employee so notified, at his or her
request made in writing and filed with the superintendent of the
district within ten days after receiving such notice, shall be given
the opportunity to meet informally with the superintendent for the
purpose of requesting the superintendent to reconsider his or her
decision. Such meeting shall be held no later than ten days following
the receipt of such request, and the provisional employee shall be
given written notice of the date, time and place of meeting at least
three days prior thereto. At such meeting the provisional employee
shall be given the opportunity to refute any facts upon which the
superintendent's determination was based and to make any argument in
support of his or her request for reconsideration.
(4) Within ten days following the meeting with the provisional
employee, the superintendent shall either reinstate the provisional
employee or shall submit to the school district board of directors for
consideration at its next regular meeting a written report recommending
that the employment contract of the provisional employee be nonrenewed
and stating the reason or reasons therefor. A copy of such report
shall be delivered to the provisional employee at least three days
prior to the scheduled meeting of the board of directors. In taking
action upon the recommendation of the superintendent, the board of
directors shall consider any written communication which the
provisional employee may file with the secretary of the board at any
time prior to that meeting.
(5) The board of directors shall notify the provisional employee in
writing of its final decision within ten days following the meeting at
which the superintendent's recommendation was considered. The decision
of the board of directors to nonrenew the contract of a provisional
employee shall be final and not subject to appeal.
(6) This section applies to any person employed by a school
district in a teaching or other nonsupervisory certificated position
after June 25, 1976. This section provides the exclusive means for
nonrenewing the employment contract of a provisional employee and no
other provision of law shall be applicable thereto, including, without
limitation, RCW 28A.405.210 and chapter 28A.645 RCW.
Sec. 7 RCW 41.32.010 and 2010 1st sp.s. c 32 s 7 are each
reenacted and amended to read as follows:
As used in this chapter, unless a different meaning is plainly
required by the context:
(1)(a) "Accumulated contributions" for plan 1 members, means the
sum of all regular annuity contributions and, except for the purpose of
withdrawal at the time of retirement, any amount paid under RCW
41.50.165(2) with regular interest thereon.
(b) "Accumulated contributions" for plan 2 members, means the sum
of all contributions standing to the credit of a member in the member's
individual account, including any amount paid under RCW 41.50.165(2),
together with the regular interest thereon.
(2) "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such mortality tables and regulations as
shall be adopted by the director and regular interest.
(3) "Adjustment ratio" means the value of index A divided by index
B.
(4) "Annual increase" means, initially, fifty-nine cents per month
per year of service which amount shall be increased each July 1st by
three percent, rounded to the nearest cent.
(5) "Annuity" means the moneys payable per year during life by
reason of accumulated contributions of a member.
(6) "Average final compensation" for plan 2 and plan 3 members,
means the member's average earnable compensation of the highest
consecutive sixty service credit months prior to such member's
retirement, termination, or death. Periods constituting authorized
leaves of absence may not be used in the calculation of average final
compensation except under RCW 41.32.810(2).
(7)(a) "Beneficiary" for plan 1 members, means any person in
receipt of a retirement allowance or other benefit provided by this
chapter.
(b) "Beneficiary" for plan 2 and plan 3 members, means any person
in receipt of a retirement allowance or other benefit provided by this
chapter resulting from service rendered to an employer by another
person.
(8) "Contract" means any agreement for service and compensation
between a member and an employer.
(9) "Creditable service" means membership service plus prior
service for which credit is allowable. This subsection shall apply
only to plan 1 members.
(10) "Department" means the department of retirement systems
created in chapter 41.50 RCW.
(11) "Dependent" means receiving one-half or more of support from
a member.
(12) "Director" means the director of the department.
(13) "Disability allowance" means monthly payments during
disability. This subsection shall apply only to plan 1 members.
(14)(a) "Earnable compensation" for plan 1 members, means:
(i) All salaries and wages paid by an employer to an employee
member of the retirement system for personal services rendered during
a fiscal year. In all cases where compensation includes maintenance
the employer shall fix the value of that part of the compensation not
paid in money.
(ii) For an employee member of the retirement system teaching in an
extended school year program, two consecutive extended school years, as
defined by the employer school district, may be used as the annual
period for determining earnable compensation in lieu of the two fiscal
years.
(iii) "Earnable compensation" for plan 1 members also includes the
following actual or imputed payments, which are not paid for personal
services:
(A) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wages which the
individual would have earned during a payroll period shall be
considered earnable compensation and the individual shall receive the
equivalent service credit.
(B) If a leave of absence, without pay, is taken by a member for
the purpose of serving as a member of the state legislature, and such
member has served in the legislature five or more years, the salary
which would have been received for the position from which the leave of
absence was taken shall be considered as compensation earnable if the
employee's contribution thereon is paid by the employee. In addition,
where a member has been a member of the state legislature for five or
more years, earnable compensation for the member's two highest
compensated consecutive years of service shall include a sum not to
exceed thirty-six hundred dollars for each of such two consecutive
years, regardless of whether or not legislative service was rendered
during those two years.
(iv) For members employed less than full time under written
contract with a school district, or community college district, in an
instructional position, for which the member receives service credit of
less than one year in all of the years used to determine the earnable
compensation used for computing benefits due under RCW 41.32.497,
41.32.498, and 41.32.520, the member may elect to have earnable
compensation defined as provided in RCW 41.32.345. For the purposes of
this subsection, the term "instructional position" means a position in
which more than seventy-five percent of the member's time is spent as
a classroom instructor (including office hours), a librarian, a
psychologist, a social worker, a nurse, a physical therapist, an
occupational therapist, a speech language pathologist or audiologist,
or a counselor. Earnable compensation shall be so defined only for the
purpose of the calculation of retirement benefits and only as necessary
to insure that members who receive fractional service credit under RCW
41.32.270 receive benefits proportional to those received by members
who have received full-time service credit.
(v) "Earnable compensation" does not include:
(A) Remuneration for unused sick leave authorized under RCW
41.04.340, 28A.400.210, or 28A.310.490;
(B) Remuneration for unused annual leave in excess of thirty days
as authorized by RCW 43.01.044 and 43.01.041; or
(C) Teacher recognition grants authorized under section 1 of this
act.
(b) "Earnable compensation" for plan 2 and plan 3 members, means
salaries or wages earned by a member during a payroll period for
personal services, including overtime payments, and shall include wages
and salaries deferred under provisions established pursuant to sections
403(b), 414(h), and 457 of the United States Internal Revenue Code, but
shall exclude lump sum payments for deferred annual sick leave, unused
accumulated vacation, unused accumulated annual leave, or any form of
severance pay.
"Earnable compensation" for plan 2 and plan 3 members also includes
the following actual or imputed payments which, except in the case of
(b)(ii)(B) of this subsection, are not paid for personal services:
(i) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wages which the
individual would have earned during a payroll period shall be
considered earnable compensation, to the extent provided above, and the
individual shall receive the equivalent service credit.
(ii) In any year in which a member serves in the legislature the
member shall have the option of having such member's earnable
compensation be the greater of:
(A) The earnable compensation the member would have received had
such member not served in the legislature; or
(B) Such member's actual earnable compensation received for
teaching and legislative service combined. Any additional
contributions to the retirement system required because compensation
earnable under (b)(ii)(A) of this subsection is greater than
compensation earnable under (b)(ii)(B) of this subsection shall be paid
by the member for both member and employer contributions.
(c) In calculating earnable compensation under (a) or (b) of this
subsection, the department of retirement systems shall include any
compensation forgone by a member employed by a state agency or
institution during the 2009-2011 fiscal biennium as a result of reduced
work hours, mandatory or voluntary leave without pay, or temporary
layoffs if the reduced compensation is an integral part of the
employer's expenditure reduction efforts, as certified by the employer.
(15)(a) "Eligible position" for plan 2 members from June 7, 1990,
through September 1, 1991, means a position which normally requires two
or more uninterrupted months of creditable service during September
through August of the following year.
(b) "Eligible position" for plan 2 and plan 3 on and after
September 1, 1991, means a position that, as defined by the employer,
normally requires five or more months of at least seventy hours of
earnable compensation during September through August of the following
year.
(c) For purposes of this chapter an employer shall not define
"position" in such a manner that an employee's monthly work for that
employer is divided into more than one position.
(d) The elected position of the superintendent of public
instruction is an eligible position.
(16) "Employed" or "employee" means a person who is providing
services for compensation to an employer, unless the person is free
from the employer's direction and control over the performance of work.
The department shall adopt rules and interpret this subsection
consistent with common law.
(17) "Employer" means the state of Washington, the school district,
or any agency of the state of Washington by which the member is paid.
(18) "Fiscal year" means a year which begins July 1st and ends June
30th of the following year.
(19) "Former state fund" means the state retirement fund in
operation for teachers under chapter 187, Laws of 1923, as amended.
(20) "Index" means, for any calendar year, that year's annual
average consumer price index, Seattle, Washington area, for urban wage
earners and clerical workers, all items compiled by the bureau of labor
statistics, United States department of labor.
(21) "Index A" means the index for the year prior to the
determination of a postretirement adjustment.
(22) "Index B" means the index for the year prior to index A.
(23) "Index year" means the earliest calendar year in which the
index is more than sixty percent of index A.
(24) "Local fund" means any of the local retirement funds for
teachers operated in any school district in accordance with the
provisions of chapter 163, Laws of 1917 as amended.
(25) "Member" means any teacher included in the membership of the
retirement system who has not been removed from membership under RCW
41.32.878 or 41.32.768. Also, any other employee of the public schools
who, on July 1, 1947, had not elected to be exempt from membership and
who, prior to that date, had by an authorized payroll deduction,
contributed to the member reserve.
(26) "Member account" or "member's account" for purposes of plan 3
means the sum of the contributions and earnings on behalf of the member
in the defined contribution portion of plan 3.
(27) "Member reserve" means the fund in which all of the
accumulated contributions of members are held.
(28) "Membership service" means service rendered subsequent to the
first day of eligibility of a person to membership in the retirement
system: PROVIDED, That where a member is employed by two or more
employers the individual shall receive no more than one service credit
month during any calendar month in which multiple service is rendered.
The provisions of this subsection shall apply only to plan 1 members.
(29) "Pension" means the moneys payable per year during life from
the pension reserve.
(30) "Pension reserve" is a fund in which shall be accumulated an
actuarial reserve adequate to meet present and future pension
liabilities of the system and from which all pension obligations are to
be paid.
(31) "Plan 1" means the teachers' retirement system, plan 1
providing the benefits and funding provisions covering persons who
first became members of the system prior to October 1, 1977.
(32) "Plan 2" means the teachers' retirement system, plan 2
providing the benefits and funding provisions covering persons who
first became members of the system on and after October 1, 1977, and
prior to July 1, 1996.
(33) "Plan 3" means the teachers' retirement system, plan 3
providing the benefits and funding provisions covering persons who
first become members of the system on and after July 1, 1996, or who
transfer under RCW 41.32.817.
(34) "Prior service" means service rendered prior to the first date
of eligibility to membership in the retirement system for which credit
is allowable. The provisions of this subsection shall apply only to
plan 1 members.
(35) "Prior service contributions" means contributions made by a
member to secure credit for prior service. The provisions of this
subsection shall apply only to plan 1 members.
(36) "Public school" means any institution or activity operated by
the state of Washington or any instrumentality or political subdivision
thereof employing teachers, except the University of Washington and
Washington State University.
(37) "Regular contributions" means the amounts required to be
deducted from the compensation of a member and credited to the member's
individual account in the member reserve. This subsection shall apply
only to plan 1 members.
(38) "Regular interest" means such rate as the director may
determine.
(39) "Retiree" means any person who has begun accruing a retirement
allowance or other benefit provided by this chapter resulting from
service rendered to an employer while a member.
(40)(a) "Retirement allowance" for plan 1 members, means monthly
payments based on the sum of annuity and pension, or any optional
benefits payable in lieu thereof.
(b) "Retirement allowance" for plan 2 and plan 3 members, means
monthly payments to a retiree or beneficiary as provided in this
chapter.
(41) "Retirement system" means the Washington state teachers'
retirement system.
(42) "Separation from service or employment" occurs when a person
has terminated all employment with an employer. Separation from
service or employment does not occur, and if claimed by an employer or
employee may be a violation of RCW 41.32.055, when an employee and
employer have a written or oral agreement to resume employment with the
same employer following termination. Mere expressions or inquiries
about postretirement employment by an employer or employee that do not
constitute a commitment to reemploy the employee after retirement are
not an agreement under this section.
(43)(a) "Service" for plan 1 members means the time during which a
member has been employed by an employer for compensation.
(i) If a member is employed by two or more employers the individual
shall receive no more than one service credit month during any calendar
month in which multiple service is rendered.
(ii) As authorized by RCW 28A.400.300, up to forty-five days of
sick leave may be creditable as service solely for the purpose of
determining eligibility to retire under RCW 41.32.470.
(iii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be
applied solely for the purpose of determining eligibility to retire
under RCW 41.32.470.
(b) "Service" for plan 2 and plan 3 members, means periods of
employment by a member for one or more employers for which earnable
compensation is earned subject to the following conditions:
(i) A member employed in an eligible position or as a substitute
shall receive one service credit month for each month of September
through August of the following year if he or she earns earnable
compensation for eight hundred ten or more hours during that period and
is employed during nine of those months, except that a member may not
receive credit for any period prior to the member's employment in an
eligible position except as provided in RCW 41.32.812 and 41.50.132.
(ii) Any other member employed in an eligible position or as a
substitute who earns earnable compensation during the period from
September through August shall receive service credit according to one
of the following methods, whichever provides the most service credit to
the member:
(A) If a member is employed either in an eligible position or as a
substitute teacher for nine months of the twelve month period between
September through August of the following year but earns earnable
compensation for less than eight hundred ten hours but for at least six
hundred thirty hours, he or she will receive one-half of a service
credit month for each month of the twelve month period;
(B) If a member is employed in an eligible position or as a
substitute teacher for at least five months of a six-month period
between September through August of the following year and earns
earnable compensation for six hundred thirty or more hours within the
six-month period, he or she will receive a maximum of six service
credit months for the school year, which shall be recorded as one
service credit month for each month of the six-month period;
(C) All other members employed in an eligible position or as a
substitute teacher shall receive service credit as follows:
(I) A service credit month is earned in those calendar months where
earnable compensation is earned for ninety or more hours;
(II) A half-service credit month is earned in those calendar months
where earnable compensation is earned for at least seventy hours but
less than ninety hours; and
(III) A quarter-service credit month is earned in those calendar
months where earnable compensation is earned for less than seventy
hours.
(iii) Any person who is a member of the teachers' retirement system
and who is elected or appointed to a state elective position may
continue to be a member of the retirement system and continue to
receive a service credit month for each of the months in a state
elective position by making the required member contributions.
(iv) When an individual is employed by two or more employers the
individual shall only receive one month's service credit during any
calendar month in which multiple service for ninety or more hours is
rendered.
(v) As authorized by RCW 28A.400.300, up to forty-five days of sick
leave may be creditable as service solely for the purpose of
determining eligibility to retire under RCW 41.32.470. For purposes of
plan 2 and plan 3 "forty-five days" as used in RCW 28A.400.300 is equal
to two service credit months. Use of less than forty-five days of sick
leave is creditable as allowed under this subsection as follows:
(A) Less than eleven days equals one-quarter service credit month;
(B) Eleven or more days but less than twenty-two days equals one-half service credit month;
(C) Twenty-two days equals one service credit month;
(D) More than twenty-two days but less than thirty-three days
equals one and one-quarter service credit month;
(E) Thirty-three or more days but less than forty-five days equals
one and one-half service credit month.
(vi) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be
applied solely for the purpose of determining eligibility to retire
under RCW 41.32.470.
(vii) The department shall adopt rules implementing this
subsection.
(44) "Service credit month" means a full service credit month or an
accumulation of partial service credit months that are equal to one.
(45) "Service credit year" means an accumulation of months of
service credit which is equal to one when divided by twelve.
(46) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(47) "State elective position" means any position held by any
person elected or appointed to statewide office or elected or appointed
as a member of the legislature.
(48) "Substitute teacher" means:
(a) A teacher who is hired by an employer to work as a temporary
teacher, except for teachers who are annual contract employees of an
employer and are guaranteed a minimum number of hours; or
(b) Teachers who either (i) work in ineligible positions for more
than one employer or (ii) work in an ineligible position or positions
together with an eligible position.
(49) "Teacher" means any person qualified to teach who is engaged
by a public school in an instructional, administrative, or supervisory
capacity. The term includes state, educational service district, and
school district superintendents and their assistants and all employees
certificated by the superintendent of public instruction; and in
addition thereto any full time school doctor who is employed by a
public school and renders service of an instructional or educational
nature.
Sec. 8 RCW 41.35.010 and 2003 c 157 s 1 are each amended to read
as follows:
The definitions in this section apply throughout this chapter,
unless the context clearly requires otherwise.
(1) "Retirement system" means the Washington school employees'
retirement system provided for in this chapter.
(2) "Department" means the department of retirement systems created
in chapter 41.50 RCW.
(3) "State treasurer" means the treasurer of the state of
Washington.
(4) "Employer," for plan 2 and plan 3 members, means a school
district or an educational service district.
(5) "Member" means any employee included in the membership of the
retirement system, as provided for in RCW 41.35.030.
(6)(a) "Compensation earnable" for plan 2 and plan 3 members, means
salaries or wages earned by a member during a payroll period for
personal services, including overtime payments, and shall include wages
and salaries deferred under provisions established pursuant to sections
403(b), 414(h), and 457 of the United States internal revenue code((,
but shall)). "Compensation earnable" for plan 2 and plan 3 members
excludes nonmoney maintenance compensation and lump sum or other
payments for deferred annual sick leave((,)); unused accumulated
vacation((,)); unused accumulated annual leave((, or)); any form of
severance pay; or teacher recognition grants authorized under section
1 of this act.
(b) "Compensation earnable" for plan 2 and plan 3 members also
includes the following actual or imputed payments, which are not paid
for personal services:
(i) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement, which are awarded or granted
as the equivalent of the salary or wage which the individual would have
earned during a payroll period shall be considered compensation
earnable to the extent provided in this subsection, and the individual
shall receive the equivalent service credit;
(ii) In any year in which a member serves in the legislature, the
member shall have the option of having such member's compensation
earnable be the greater of:
(A) The compensation earnable the member would have received had
such member not served in the legislature; or
(B) Such member's actual compensation earnable received for
nonlegislative public employment and legislative service combined. Any
additional contributions to the retirement system required because
compensation earnable under (b)(ii)(A) of this subsection is greater
than compensation earnable under this (b)(ii)(B) of this subsection
shall be paid by the member for both member and employer contributions;
(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045,
and 72.09.240;
(iv) Compensation that a member would have received but for a
disability occurring in the line of duty only as authorized by RCW
41.40.038;
(v) Compensation that a member receives due to participation in the
leave sharing program only as authorized by RCW 41.04.650 through
41.04.670; and
(vi) Compensation that a member receives for being in standby
status. For the purposes of this section, a member is in standby
status when not being paid for time actually worked and the employer
requires the member to be prepared to report immediately for work, if
the need arises, although the need may not arise.
(7) "Service" for plan 2 and plan 3 members means periods of
employment by a member in an eligible position or positions for one or
more employers for which compensation earnable is paid. Compensation
earnable earned for ninety or more hours in any calendar month shall
constitute one service credit month except as provided in RCW
41.35.180. Compensation earnable earned for at least seventy hours but
less than ninety hours in any calendar month shall constitute one-half
service credit month of service. Compensation earnable earned for less
than seventy hours in any calendar month shall constitute one-quarter
service credit month of service. Time spent in standby status, whether
compensated or not, is not service.
Any fraction of a year of service shall be taken into account in
the computation of such retirement allowance or benefits.
(a) Service in any state elective position shall be deemed to be
full-time service.
(b) A member shall receive a total of not more than twelve service
credit months of service for such calendar year. If an individual is
employed in an eligible position by one or more employers the
individual shall receive no more than one service credit month during
any calendar month in which multiple service for ninety or more hours
is rendered.
(c) For purposes of plan 2 and 3 "forty-five days" as used in RCW
28A.400.300 is equal to two service credit months. Use of less than
forty-five days of sick leave is creditable as allowed under this
subsection as follows:
(i) Less than eleven days equals one-quarter service credit month;
(ii) Eleven or more days but less than twenty-two days equals one-half service credit month;
(iii) Twenty-two days equals one service credit month;
(iv) More than twenty-two days but less than thirty-three days
equals one and one-quarter service credit month; and
(v) Thirty-three or more days but less than forty-five days equals
one and one-half service credit month.
(8) "Service credit year" means an accumulation of months of
service credit which is equal to one when divided by twelve.
(9) "Service credit month" means a month or an accumulation of
months of service credit which is equal to one.
(10) "Membership service" means all service rendered as a member.
(11) "Beneficiary" for plan 2 and plan 3 members means any person
in receipt of a retirement allowance or other benefit provided by this
chapter resulting from service rendered to an employer by another
person.
(12) "Regular interest" means such rate as the director may
determine.
(13) "Accumulated contributions" means the sum of all contributions
standing to the credit of a member in the member's individual account,
including any amount paid under RCW 41.50.165(2), together with the
regular interest thereon.
(14) "Average final compensation" for plan 2 and plan 3 members
means the member's average compensation earnable of the highest
consecutive sixty months of service credit months prior to such
member's retirement, termination, or death. Periods constituting
authorized leaves of absence may not be used in the calculation of
average final compensation except under RCW 41.40.710(2).
(15) "Final compensation" means the annual rate of compensation
earnable by a member at the time of termination of employment.
(16) "Annuity" means payments for life derived from accumulated
contributions of a member. All annuities shall be paid in monthly
installments.
(17) "Pension" means payments for life derived from contributions
made by the employer. All pensions shall be paid in monthly
installments.
(18) "Retirement allowance" for plan 2 and plan 3 members means
monthly payments to a retiree or beneficiary as provided in this
chapter.
(19) "Employee" or "employed" means a person who is providing
services for compensation to an employer, unless the person is free
from the employer's direction and control over the performance of work.
The department shall adopt rules and interpret this subsection
consistent with common law.
(20) "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such mortality and other tables as may be
adopted by the director.
(21) "Retirement" means withdrawal from active service with a
retirement allowance as provided by this chapter.
(22) "Eligible position" means any position that, as defined by the
employer, normally requires five or more months of service a year for
which regular compensation for at least seventy hours is earned by the
occupant thereof. For purposes of this chapter an employer shall not
define "position" in such a manner that an employee's monthly work for
that employer is divided into more than one position.
(23) "Ineligible position" means any position which does not
conform with the requirements set forth in subsection (22) of this
section.
(24) "Leave of absence" means the period of time a member is
authorized by the employer to be absent from service without being
separated from membership.
(25) "Retiree" means any person who has begun accruing a retirement
allowance or other benefit provided by this chapter resulting from
service rendered to an employer while a member.
(26) "Director" means the director of the department.
(27) "State elective position" means any position held by any
person elected or appointed to statewide office or elected or appointed
as a member of the legislature.
(28) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(29) "Plan 2" means the Washington school employees' retirement
system plan 2 providing the benefits and funding provisions covering
persons who first became members of the public employees' retirement
system on and after October 1, 1977, and transferred to the Washington
school employees' retirement system under RCW 41.40.750.
(30) "Plan 3" means the Washington school employees' retirement
system plan 3 providing the benefits and funding provisions covering
persons who first became members of the system on and after September
1, 2000, or who transfer from plan 2 under RCW 41.35.510.
(31) "Index" means, for any calendar year, that year's annual
average consumer price index, Seattle, Washington area, for urban wage
earners and clerical workers, all items, compiled by the bureau of
labor statistics, United States department of labor.
(32) "Index A" means the index for the year prior to the
determination of a postretirement adjustment.
(33) "Index B" means the index for the year prior to index A.
(34) "Adjustment ratio" means the value of index A divided by index
B.
(35) "Separation from service" occurs when a person has terminated
all employment with an employer.
(36) "Member account" or "member's account" for purposes of plan 3
means the sum of the contributions and earnings on behalf of the member
in the defined contribution portion of plan 3.
(37) "Classified employee" means an employee of a school district
or an educational service district who is not eligible for membership
in the teachers' retirement system established under chapter 41.32 RCW.
(38) "Substitute employee" means a classified employee who is
employed by an employer exclusively as a substitute for an absent
employee.
Sec. 9 RCW 41.40.010 and 2009 c 430 s 1 are each reenacted and
amended to read as follows:
As used in this chapter, unless a different meaning is plainly
required by the context:
(1) "Accumulated contributions" means the sum of all contributions
standing to the credit of a member in the member's individual account,
including any amount paid under RCW 41.50.165(2), together with the
regular interest thereon.
(2) "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such mortality and other tables as may be
adopted by the director.
(3) "Adjustment ratio" means the value of index A divided by index
B.
(4) "Annual increase" means, initially, fifty-nine cents per month
per year of service which amount shall be increased each July 1st by
three percent, rounded to the nearest cent.
(5) "Annuity" means payments for life derived from accumulated
contributions of a member. All annuities shall be paid in monthly
installments.
(6)(a) "Average final compensation" for plan 1 members, means the
annual average of the greatest compensation earnable by a member during
any consecutive two year period of service credit months for which
service credit is allowed; or if the member has less than two years of
service credit months then the annual average compensation earnable
during the total years of service for which service credit is allowed.
(b) "Average final compensation" for plan 2 and plan 3 members,
means the member's average compensation earnable of the highest
consecutive sixty months of service credit months prior to such
member's retirement, termination, or death. Periods constituting
authorized leaves of absence may not be used in the calculation of
average final compensation except under RCW 41.40.710(2) or (c) of this
subsection.
(c) In calculating average final compensation under this subsection
for a member of plan 1, 2, or 3, the department of retirement systems
shall include any compensation forgone by the member during the 2009-2011 fiscal biennium as a result of reduced work hours, voluntary leave
without pay, or temporary furloughs if the reduced compensation is an
integral part of the employer's expenditure reduction efforts, as
certified by the employer.
(7)(a) "Beneficiary" for plan 1 members, means any person in
receipt of a retirement allowance, pension or other benefit provided by
this chapter.
(b) "Beneficiary" for plan 2 and plan 3 members, means any person
in receipt of a retirement allowance or other benefit provided by this
chapter resulting from service rendered to an employer by another
person.
(8)(a) "Compensation earnable" for plan 1 members, means salaries
or wages earned during a payroll period for personal services and where
the compensation is not all paid in money, maintenance compensation
shall be included upon the basis of the schedules established by the
member's employer.
(i) "Compensation earnable" for plan 1 members also includes the
following actual or imputed payments, which are not paid for personal
services:
(A) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wage which the
individual would have earned during a payroll period shall be
considered compensation earnable and the individual shall receive the
equivalent service credit;
(B) If a leave of absence is taken by an individual for the purpose
of serving in the state legislature, the salary which would have been
received for the position from which the leave of absence was taken,
shall be considered as compensation earnable if the employee's
contribution is paid by the employee and the employer's contribution is
paid by the employer or employee;
(C) Assault pay only as authorized by RCW 27.04.100, 72.01.045, and
72.09.240;
(D) Compensation that a member would have received but for a
disability occurring in the line of duty only as authorized by RCW
41.40.038;
(E) Compensation that a member receives due to participation in the
leave sharing program only as authorized by RCW 41.04.650 through
41.04.670; and
(F) Compensation that a member receives for being in standby
status. For the purposes of this section, a member is in standby
status when not being paid for time actually worked and the employer
requires the member to be prepared to report immediately for work, if
the need arises, although the need may not arise.
(ii) "Compensation earnable" does not include:
(A) Remuneration for unused sick leave authorized under RCW
41.04.340, 28A.400.210, or 28A.310.490;
(B) Remuneration for unused annual leave in excess of thirty days
as authorized by RCW 43.01.044 and 43.01.041; or
(C) Teacher recognition grants authorized under section 1 of this
act.
(b) "Compensation earnable" for plan 2 and plan 3 members, means
salaries or wages earned by a member during a payroll period for
personal services, including overtime payments, and shall include wages
and salaries deferred under provisions established pursuant to sections
403(b), 414(h), and 457 of the United States Internal Revenue Code, but
shall exclude nonmoney maintenance compensation and lump sum or other
payments for deferred annual sick leave, unused accumulated vacation,
unused accumulated annual leave, or any form of severance pay.
"Compensation earnable" for plan 2 and plan 3 members also includes
the following actual or imputed payments, which are not paid for
personal services:
(i) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wage which the
individual would have earned during a payroll period shall be
considered compensation earnable to the extent provided above, and the
individual shall receive the equivalent service credit;
(ii) In any year in which a member serves in the legislature, the
member shall have the option of having such member's compensation
earnable be the greater of:
(A) The compensation earnable the member would have received had
such member not served in the legislature; or
(B) Such member's actual compensation earnable received for
nonlegislative public employment and legislative service combined. Any
additional contributions to the retirement system required because
compensation earnable under (b)(ii)(A) of this subsection is greater
than compensation earnable under (b)(ii)(B) of this subsection shall be
paid by the member for both member and employer contributions;
(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045,
and 72.09.240;
(iv) Compensation that a member would have received but for a
disability occurring in the line of duty only as authorized by RCW
41.40.038;
(v) Compensation that a member receives due to participation in the
leave sharing program only as authorized by RCW 41.04.650 through
41.04.670; and
(vi) Compensation that a member receives for being in standby
status. For the purposes of this section, a member is in standby
status when not being paid for time actually worked and the employer
requires the member to be prepared to report immediately for work, if
the need arises, although the need may not arise.
(9) "Department" means the department of retirement systems created
in chapter 41.50 RCW.
(10) "Director" means the director of the department.
(11) "Eligible position" means:
(a) Any position that, as defined by the employer, normally
requires five or more months of service a year for which regular
compensation for at least seventy hours is earned by the occupant
thereof. For purposes of this chapter an employer shall not define
"position" in such a manner that an employee's monthly work for that
employer is divided into more than one position;
(b) Any position occupied by an elected official or person
appointed directly by the governor, or appointed by the chief justice
of the supreme court under RCW 2.04.240(2) or 2.06.150(2), for which
compensation is paid.
(12) "Employee" or "employed" means a person who is providing
services for compensation to an employer, unless the person is free
from the employer's direction and control over the performance of work.
The department shall adopt rules and interpret this subsection
consistent with common law.
(13)(a) "Employer" for plan 1 members, means every branch,
department, agency, commission, board, and office of the state, any
political subdivision or association of political subdivisions of the
state admitted into the retirement system, and legal entities
authorized by RCW 35.63.070 and 36.70.060 or chapter 39.34 RCW; and the
term shall also include any labor guild, association, or organization
the membership of a local lodge or division of which is comprised of at
least forty percent employees of an employer (other than such labor
guild, association, or organization) within this chapter. The term may
also include any city of the first class that has its own retirement
system.
(b) "Employer" for plan 2 and plan 3 members, means every branch,
department, agency, commission, board, and office of the state, and any
political subdivision and municipal corporation of the state admitted
into the retirement system, including public agencies created pursuant
to RCW 35.63.070, 36.70.060, and 39.34.030; except that after August
31, 2000, school districts and educational service districts will no
longer be employers for the public employees' retirement system plan 2.
(14) "Final compensation" means the annual rate of compensation
earnable by a member at the time of termination of employment.
(15) "Index" means, for any calendar year, that year's annual
average consumer price index, Seattle, Washington area, for urban wage
earners and clerical workers, all items, compiled by the bureau of
labor statistics, United States department of labor.
(16) "Index A" means the index for the year prior to the
determination of a postretirement adjustment.
(17) "Index B" means the index for the year prior to index A.
(18) "Index year" means the earliest calendar year in which the
index is more than sixty percent of index A.
(19) "Ineligible position" means any position which does not
conform with the requirements set forth in subsection (11) of this
section.
(20) "Leave of absence" means the period of time a member is
authorized by the employer to be absent from service without being
separated from membership.
(21) "Member" means any employee included in the membership of the
retirement system, as provided for in RCW 41.40.023. RCW 41.26.045
does not prohibit a person otherwise eligible for membership in the
retirement system from establishing such membership effective when he
or she first entered an eligible position.
(22) "Member account" or "member's account" for purposes of plan 3
means the sum of the contributions and earnings on behalf of the member
in the defined contribution portion of plan 3.
(23) "Membership service" means:
(a) All service rendered, as a member, after October 1, 1947;
(b) All service after October 1, 1947, to any employer prior to the
time of its admission into the retirement system for which member and
employer contributions, plus interest as required by RCW 41.50.125,
have been paid under RCW 41.40.056 or 41.40.057;
(c) Service not to exceed six consecutive months of probationary
service rendered after April 1, 1949, and prior to becoming a member,
in the case of any member, upon payment in full by such member of the
total amount of the employer's contribution to the retirement fund
which would have been required under the law in effect when such
probationary service was rendered if the member had been a member
during such period, except that the amount of the employer's
contribution shall be calculated by the director based on the first
month's compensation earnable as a member;
(d) Service not to exceed six consecutive months of probationary
service, rendered after October 1, 1947, and before April 1, 1949, and
prior to becoming a member, in the case of any member, upon payment in
full by such member of five percent of such member's salary during said
period of probationary service, except that the amount of the
employer's contribution shall be calculated by the director based on
the first month's compensation earnable as a member.
(24) "New member" means a person who becomes a member on or after
April 1, 1949, except as otherwise provided in this section.
(25) "Original member" of this retirement system means:
(a) Any person who became a member of the system prior to April 1,
1949;
(b) Any person who becomes a member through the admission of an
employer into the retirement system on and after April 1, 1949, and
prior to April 1, 1951;
(c) Any person who first becomes a member by securing employment
with an employer prior to April 1, 1951, provided the member has
rendered at least one or more years of service to any employer prior to
October 1, 1947;
(d) Any person who first becomes a member through the admission of
an employer into the retirement system on or after April 1, 1951,
provided, such person has been in the regular employ of the employer
for at least six months of the twelve-month period preceding the said
admission date;
(e) Any member who has restored all contributions that may have
been withdrawn as provided by RCW 41.40.150 and who on the effective
date of the individual's retirement becomes entitled to be credited
with ten years or more of membership service except that the provisions
relating to the minimum amount of retirement allowance for the member
upon retirement at age seventy as found in RCW 41.40.190(4) shall not
apply to the member;
(f) Any member who has been a contributor under the system for two
or more years and who has restored all contributions that may have been
withdrawn as provided by RCW 41.40.150 and who on the effective date of
the individual's retirement has rendered five or more years of service
for the state or any political subdivision prior to the time of the
admission of the employer into the system; except that the provisions
relating to the minimum amount of retirement allowance for the member
upon retirement at age seventy as found in RCW 41.40.190(4) shall not
apply to the member.
(26) "Pension" means payments for life derived from contributions
made by the employer. All pensions shall be paid in monthly
installments.
(27) "Plan 1" means the public employees' retirement system, plan
1 providing the benefits and funding provisions covering persons who
first became members of the system prior to October 1, 1977.
(28) "Plan 2" means the public employees' retirement system, plan
2 providing the benefits and funding provisions covering persons who
first became members of the system on and after October 1, 1977, and
are not included in plan 3.
(29) "Plan 3" means the public employees' retirement system, plan
3 providing the benefits and funding provisions covering persons who:
(a) First become a member on or after:
(i) March 1, 2002, and are employed by a state agency or institute
of higher education and who did not choose to enter plan 2; or
(ii) September 1, 2002, and are employed by other than a state
agency or institute of higher education and who did not choose to enter
plan 2; or
(b) Transferred to plan 3 under RCW 41.40.795.
(30) "Prior service" means all service of an original member
rendered to any employer prior to October 1, 1947.
(31) "Regular interest" means such rate as the director may
determine.
(32) "Retiree" means any person who has begun accruing a retirement
allowance or other benefit provided by this chapter resulting from
service rendered to an employer while a member.
(33) "Retirement" means withdrawal from active service with a
retirement allowance as provided by this chapter.
(34) "Retirement allowance" means the sum of the annuity and the
pension.
(35) "Retirement system" means the public employees' retirement
system provided for in this chapter.
(36) "Separation from service" occurs when a person has terminated
all employment with an employer. Separation from service or employment
does not occur, and if claimed by an employer or employee may be a
violation of RCW 41.40.055, when an employee and employer have a
written or oral agreement to resume employment with the same employer
following termination. Mere expressions or inquiries about
postretirement employment by an employer or employee that do not
constitute a commitment to reemploy the employee after retirement are
not an agreement under this subsection.
(37)(a) "Service" for plan 1 members, except as provided in RCW
41.40.088, means periods of employment in an eligible position or
positions for one or more employers rendered to any employer for which
compensation is paid, and includes time spent in office as an elected
or appointed official of an employer. Compensation earnable earned in
full time work for seventy hours or more in any given calendar month
shall constitute one service credit month except as provided in RCW
41.40.088. Compensation earnable earned for less than seventy hours in
any calendar month shall constitute one-quarter service credit month of
service except as provided in RCW 41.40.088. Only service credit
months and one-quarter service credit months shall be counted in the
computation of any retirement allowance or other benefit provided for
in this chapter. Any fraction of a year of service shall be taken into
account in the computation of such retirement allowance or benefits.
Time spent in standby status, whether compensated or not, is not
service.
(i) Service by a state employee officially assigned by the state on
a temporary basis to assist another public agency, shall be considered
as service as a state employee: PROVIDED, That service to any other
public agency shall not be considered service as a state employee if
such service has been used to establish benefits in any other public
retirement system.
(ii) An individual shall receive no more than a total of twelve
service credit months of service during any calendar year. If an
individual is employed in an eligible position by one or more employers
the individual shall receive no more than one service credit month
during any calendar month in which multiple service for seventy or more
hours is rendered.
(iii) A school district employee may count up to forty-five days of
sick leave as creditable service solely for the purpose of determining
eligibility to retire under RCW 41.40.180 as authorized by RCW
28A.400.300. For purposes of plan 1 "forty-five days" as used in RCW
28A.400.300 is equal to two service credit months. Use of less than
forty-five days of sick leave is creditable as allowed under this
subsection as follows:
(A) Less than twenty-two days equals one-quarter service credit
month;
(B) Twenty-two days equals one service credit month;
(C) More than twenty-two days but less than forty-five days equals
one and one-quarter service credit month.
(b) "Service" for plan 2 and plan 3 members, means periods of
employment by a member in an eligible position or positions for one or
more employers for which compensation earnable is paid. Compensation
earnable earned for ninety or more hours in any calendar month shall
constitute one service credit month except as provided in RCW
41.40.088. Compensation earnable earned for at least seventy hours but
less than ninety hours in any calendar month shall constitute one-half
service credit month of service. Compensation earnable earned for less
than seventy hours in any calendar month shall constitute one-quarter
service credit month of service. Time spent in standby status, whether
compensated or not, is not service.
Any fraction of a year of service shall be taken into account in
the computation of such retirement allowance or benefits.
(i) Service in any state elective position shall be deemed to be
full time service, except that persons serving in state elective
positions who are members of the Washington school employees'
retirement system, teachers' retirement system, public safety
employees' retirement system, or law enforcement officers' and
firefighters' retirement system at the time of election or appointment
to such position may elect to continue membership in the Washington
school employees' retirement system, teachers' retirement system,
public safety employees' retirement system, or law enforcement
officers' and firefighters' retirement system.
(ii) A member shall receive a total of not more than twelve service
credit months of service for such calendar year. If an individual is
employed in an eligible position by one or more employers the
individual shall receive no more than one service credit month during
any calendar month in which multiple service for ninety or more hours
is rendered.
(iii) Up to forty-five days of sick leave may be creditable as
service solely for the purpose of determining eligibility to retire
under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of
plan 2 and plan 3 "forty-five days" as used in RCW 28A.400.300 is equal
to two service credit months. Use of less than forty-five days of sick
leave is creditable as allowed under this subsection as follows:
(A) Less than eleven days equals one-quarter service credit month;
(B) Eleven or more days but less than twenty-two days equals one-half service credit month;
(C) Twenty-two days equals one service credit month;
(D) More than twenty-two days but less than thirty-three days
equals one and one-quarter service credit month;
(E) Thirty-three or more days but less than forty-five days equals
one and one-half service credit month.
(38) "Service credit month" means a month or an accumulation of
months of service credit which is equal to one.
(39) "Service credit year" means an accumulation of months of
service credit which is equal to one when divided by twelve.
(40) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(41) "State elective position" means any position held by any
person elected or appointed to statewide office or elected or appointed
as a member of the legislature.
(42) "State treasurer" means the treasurer of the state of
Washington.
(43) "Totally incapacitated for duty" means total inability to
perform the duties of a member's employment or office or any other work
for which the member is qualified by training or experience.
NEW SECTION. Sec. 10 This act takes effect September 1, 2011.