BILL REQ. #: S-3923.1
State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 01/19/12. Referred to Committee on Ways & Means.
AN ACT Relating to the state retirement plans; and amending RCW 41.32.835, 41.32.875, 41.35.610, 41.35.680, 41.40.785, 41.40.820, and 41.45.150.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.32.835 and 2007 c 491 s 3 are each amended to read
as follows:
(1) All teachers who first become employed by an employer in an
eligible position on or after July 1, 2007, but before July 1, 2012,
shall have a period of ninety days to make an irrevocable choice to
become a member of plan 2 or plan 3. At the end of ninety days, if the
member has not made a choice to become a member of plan 2, he or she
becomes a member of plan 3. All teachers who first become employed by
an employer in an eligible position on or after July 1, 2012, shall
become members of plan 3.
(2) For administrative efficiency, until a member elects to become
a member of plan 3, or becomes a member of plan 3 by default under
subsection (1) of this section, the member shall be reported to the
department in plan 2, with member and employer contributions. Upon
becoming a member of plan 3 by election or by default, all service
credit shall be transferred to the member's plan 3 defined benefit, and
all employee accumulated contributions shall be transferred to the
member's plan 3 defined contribution account.
(((3) The plan choice provision as set forth in section 3, chapter
491, Laws of 2007 was intended by the legislature as a replacement
benefit for gain-sharing. Until there is legal certainty with respect
to the repeal of chapter 41.31A RCW, the right to plan choice under
this section is noncontractual, and the legislature reserves the right
to amend or repeal this section. Legal certainty includes, but is not
limited to, the expiration of any: Applicable limitations on actions;
and periods of time for seeking appellate review, up to and including
reconsideration by the Washington supreme court and the supreme court
of the United States. Until that time, all teachers who first become
employed by an employer in an eligible position on or after July 1,
2007, may choose either plan 2 or plan 3 under this section. If the
repeal of chapter 41.31A RCW is held to be invalid in a final
determination of a court of law, and the court orders reinstatement of
gain-sharing or other alternate benefits as a remedy, then all teachers
who first become employed by an employer in an eligible position on or
after the date of such reinstatement shall be members of plan 3.))
Sec. 2 RCW 41.32.875 and 2007 c 491 s 4 are each amended to read
as follows:
(1) NORMAL RETIREMENT. Any member who is at least age sixty-five
and who has:
(a) Completed ten service credit years; or
(b) Completed five service credit years, including twelve service
credit months after attaining age forty-four; or
(c) Completed five service credit years by July 1, 1996, under plan
2 and who transferred to plan 3 under RCW 41.32.817;
shall be eligible to retire and to receive a retirement allowance
computed according to the provisions of RCW 41.32.840.
(2) EARLY RETIREMENT. Any member who has attained at least age
fifty-five and has completed at least ten years of service shall be
eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.32.840, except that a member
retiring pursuant to this subsection shall have the retirement
allowance actuarially reduced to reflect the difference in the number
of years between age at retirement and the attainment of age sixty-five.
(3) ALTERNATE EARLY RETIREMENT.
(a) Any member who has completed at least thirty service credit
years and has attained age fifty-five shall be eligible to retire and
to receive a retirement allowance computed according to the provisions
of RCW 41.32.840, except that a member retiring pursuant to this
subsection shall have the retirement allowance reduced by three percent
per year to reflect the difference in the number of years between age
at retirement and the attainment of age sixty-five.
(b) On or after September 1, 2008, any member who has completed at
least thirty service credit years and has attained age fifty-five shall
be eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.32.840, except that a member
retiring pursuant to this subsection shall have the retirement
allowance reduced as follows:
Retirement Age | Percent Reduction | |
55 | 20% | |
56 | 17% | |
57 | 14% | |
58 | 11% | |
59 | 8% | |
60 | 5% | |
61 | 2% | |
62 | 0% | |
63 | 0% | |
64 | 0% |
Sec. 3 RCW 41.35.610 and 2007 c 491 s 7 are each amended to read
as follows:
(1) All classified employees who first become employed by an
employer in an eligible position on or after July 1, 2007, but before
July 1, 2012, shall have a period of ninety days to make an irrevocable
choice to become a member of plan 2 or plan 3. At the end of ninety
days, if the member has not made a choice to become a member of plan 2,
he or she becomes a member of plan 3. All classified employees who
first become employed by an employer in an eligible position on or
after July 1, 2012, shall become members of plan 3.
(2) For administrative efficiency, until a member elects to become
a member of plan 3, or becomes a member of plan 3 by default under
subsection (1) of this section, the member shall be reported to the
department in plan 2, with member and employer contributions. Upon
becoming a member of plan 3 by election or by default, all service
credit shall be transferred to the member's plan 3 defined benefit, and
all employee accumulated contributions shall be transferred to the
member's plan 3 defined contribution account.
(((3) The plan choice provision as set forth in section 7, chapter
491, Laws of 2007 was intended by the legislature as a replacement
benefit for gain-sharing. Until there is legal certainty with respect
to the repeal of chapter 41.31A RCW, the right to plan choice under
this section is noncontractual, and the legislature reserves the right
to amend or repeal this section. Legal certainty includes, but is not
limited to, the expiration of any: Applicable limitations on actions;
and periods of time for seeking appellate review, up to and including
reconsideration by the Washington supreme court and the supreme court
of the United States. Until that time, all classified employees who
first become employed by an employer in an eligible position on or
after July 1, 2007, may choose either plan 2 or plan 3 under this
section. If the repeal of chapter 41.31A RCW is held to be invalid in
a final determination of a court of law, and the court orders
reinstatement of gain-sharing or other alternate benefits as a remedy,
then all classified employees who first become employed by an employer
in an eligible position on or after the date of such reinstatement
shall be members of plan 3.))
Sec. 4 RCW 41.35.680 and 2007 c 491 s 8 are each amended to read
as follows:
(1) NORMAL RETIREMENT. Any member who is at least age sixty-five
and who has:
(a) Completed ten service credit years; or
(b) Completed five service credit years, including twelve service
credit months after attaining age forty-four; or
(c) Completed five service credit years by September 1, 2000, under
the public employees' retirement system plan 2 and who transferred to
plan 3 under RCW 41.35.510;
shall be eligible to retire and to receive a retirement allowance
computed according to the provisions of RCW 41.35.620.
(2) EARLY RETIREMENT. Any member who has attained at least age
fifty-five and has completed at least ten years of service shall be
eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.35.620, except that a member
retiring pursuant to this subsection shall have the retirement
allowance actuarially reduced to reflect the difference in the number
of years between age at retirement and the attainment of age sixty-five.
(3) ALTERNATE EARLY RETIREMENT.
(a) Any member who has completed at least thirty service credit
years and has attained age fifty-five shall be eligible to retire and
to receive a retirement allowance computed according to the provisions
of RCW 41.35.620, except that a member retiring pursuant to this
subsection shall have the retirement allowance reduced by three percent
per year to reflect the difference in the number of years between age
at retirement and the attainment of age sixty-five.
(b) On or after September 1, 2008, any member who has completed at
least thirty service credit years and has attained age fifty-five shall
be eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.35.620, except that a member
retiring pursuant to this subsection shall have the retirement
allowance reduced as follows:
Retirement Age | Percent Reduction | |
55 | 20% | |
56 | 17% | |
57 | 14% | |
58 | 11% | |
59 | 8% | |
60 | 5% | |
61 | 2% | |
62 | 0% | |
63 | 0% | |
64 | 0% |
Sec. 5 RCW 41.40.785 and 2000 c 247 s 302 are each amended to
read as follows:
(1) All employees who first become employed by an employer in an
eligible position on or after March 1, 2002, for state agencies or
institutes of higher education, or September 1, 2002, for other
employers, and who first become employed by an employer in an eligible
position before July 1, 2102, shall have a period of ninety days to
make an irrevocable choice to become a member of plan 2 or plan 3. At
the end of ninety days, if the member has not made a choice to become
a member of plan 2, he or she becomes a member of plan 3. All
employees who first become employed by an employer in an eligible
position on or after July 1, 2012, shall become members of plan 3.
(2) For administrative efficiency, until a member elects to become
a member of plan 3, or becomes a member of plan 3 by default pursuant
to subsection (1) of this section, the member shall be reported to the
department in plan 2, with member and employer contributions. Upon
becoming a member of plan 3 by election or by default, all service
credit shall be transferred to the member's plan 3 defined benefit, and
all employee accumulated contributions shall be transferred to the
member's plan 3 defined contribution account.
Sec. 6 RCW 41.40.820 and 2007 c 491 s 10 are each amended to read
as follows:
(1) NORMAL RETIREMENT. Any member who is at least age sixty-five
and who has:
(a) Completed ten service credit years; or
(b) Completed five service credit years, including twelve service
credit months after attaining age forty-four; or
(c) Completed five service credit years by the transfer payment
date specified in RCW 41.40.795, under the public employees' retirement
system plan 2 and who transferred to plan 3 under RCW 41.40.795;
shall be eligible to retire and to receive a retirement allowance
computed according to the provisions of RCW 41.40.790.
(2) EARLY RETIREMENT. Any member who has attained at least age
fifty-five and has completed at least ten years of service shall be
eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.40.790, except that a member
retiring pursuant to this subsection shall have the retirement
allowance actuarially reduced to reflect the difference in the number
of years between age at retirement and the attainment of age sixty-five.
(3) ALTERNATE EARLY RETIREMENT.
(a) Any member who has completed at least thirty service credit
years and has attained age fifty-five shall be eligible to retire and
to receive a retirement allowance computed according to the provisions
of RCW 41.40.790, except that a member retiring pursuant to this
subsection shall have the retirement allowance reduced by three percent
per year to reflect the difference in the number of years between age
at retirement and the attainment of age sixty-five.
(b) On or after July 1, 2008, any member who has completed at least
thirty service credit years and has attained age fifty-five shall be
eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.40.790, except that a member
retiring pursuant to this subsection shall have the retirement
allowance reduced as follows:
Retirement Age | Percent Reduction | |
55 | 20% | |
56 | 17% | |
57 | 14% | |
58 | 11% | |
59 | 8% | |
60 | 5% | |
61 | 2% | |
62 | 0% | |
63 | 0% | |
64 | 0% |
Sec. 7 RCW 41.45.150 and 2011 c 362 s 8 are each amended to read
as follows:
(1) Beginning July 1, 2009, and ending June 30, 2015, maximum
annual contribution rates are established for the portion of the
employer contribution rate for the public employees' retirement system
and the public safety employees' retirement system that is used for the
sole purpose of amortizing that portion of the unfunded actuarial
accrued liability in the public employees' retirement system plan 1
that excludes any amounts required to amortize plan 1 benefit
improvements effective after June 30, 2009. The maximum rates are:
Fiscal Year ending: | |||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
1.25% | 1.25% | 3.75% | (( | 5.25% | 6.00% |
Fiscal Year ending: | |||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
1.25% | 1.25% | 3.75% | (( | 5.25% | 6.00% |
Fiscal Year ending: | |||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
2.04% | 2.04% | 6.50% | (( | 8.50% | 9.50% |