BILL REQ. #: S-0411.1
_____________________________________________
SENATE BILL 5512
_____________________________________________| State of Washington | 63rd Legislature | 2013 Regular Session |
By Senators Conway, Hobbs, Nelson, Delvin, Schlicher, McAuliffe, Hatfield, and ShinRead first time 02/01/13. Referred to Committee on Ways & Means.
AN ACT Relating to calculating service credit for school
administrators for alternate early retirement eligibility; and amending
RCW 41.32.765, 41.32.875, 41.35.420, and 41.35.680.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.32.765 and 2012 1st sp.s. c 7 s 1 are each amended
to read as follows:
(1) NORMAL RETIREMENT. Any member with at least five service
credit years of service who has attained at least age sixty-five shall
be eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.32.760.
(2) EARLY RETIREMENT. Any member who has completed at least twenty
service credit years of service who has attained at least age fifty-five shall be eligible to retire and to receive a retirement allowance
computed according to the provisions of RCW 41.32.760, except that a
member retiring pursuant to this subsection (2) 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 41.32.760, except that a member retiring pursuant to this
subsection (3)(a) 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 41.32.760, except that a member
retiring pursuant to this subsection (3)(b) 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% | |
(c)(i) An active school administrator is eligible to retire under
(a) or (b) of this subsection (3), subject to (e) of this subsection
(3), if the member meets the following requirements:
(A) Has completed twenty-nine service credit years, plus ten
additional service credit months through June 30th of the school
administrator's thirtieth service credit year; and
(B) Has attained age fifty-five.
(ii) For the purposes of this subsection (3)(c), "school
administrator" means a member who serves in a managerial role relating
to the administration of a public school or who is involved in the
exercise of direction over employees of the public school. This
includes, but is not limited to, service as: Principal, assistant
principal, superintendent, assistant superintendent, directors and
coordinators, such as those persons covered under RCW 28A.150.203(2)
and 28A.410.120; and both classified and certificated employees serving
in positions such as business manager and personnel manager.
(iii) The right to retire under this subsection (3)(c) is
noncontractual and the legislature reserves the right to amend or
repeal this subsection (3)(c).
(d) Any member who retires under the provisions of (b) or (c) of
this subsection (3) is ineligible for the postretirement employment
provisions of RCW 41.32.802(2) until the retired member has reached
sixty-five years of age. For purposes of (b) or (c) of this subsection
(3), employment with an employer also includes any personal service
contract, service by an employer as a temporary or project employee, or
any other similar compensated relationship with any employer included
under the provisions of RCW 41.32.800(1).
(e) Except for (a) of this subsection (3), the subsidized
reductions for alternate early retirement in (b) of this subsection (3)
as set forth in section 2, chapter 491, Laws of 2007 and (c) of this
subsection (3) as set forth in section 1, chapter . . . (this act),
Laws of 2013 were intended by the legislature as replacement benefits
for gain-sharing. Until there is legal certainty with respect to the
repeal of chapter 41.31A RCW, the right to retire under (b) or (c) of
this subsection (3) is noncontractual, and the legislature reserves the
right to amend or repeal (b) or (c) of this subsection (3). 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, eligible members may still retire under (b) or (c) of this
subsection (3), and upon receipt of the first installment of a
retirement allowance computed under (b) or (c) of this subsection (3),
the resulting benefit becomes contractual for the recipient. 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 retirement
benefits for any member who has completed at least thirty service
credit years and has attained age fifty-five but has not yet received
the first installment of a retirement allowance under (b) or (c) of
this subsection (3) shall be computed using the reductions in (a) of
this subsection (3).
(((c))) (f) Members who first become employed by an employer in an
eligible position on or after May 1, 2013, are not eligible for the
alternate early retirement provisions of (a) or (b) of this subsection
(3). Any member who first becomes employed by an employer in an
eligible position on or after May 1, 2013, and 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 41.32.760, except that a member
retiring pursuant to this subsection (3) shall have the retirement
allowance reduced by five percent per year to reflect the difference in
the number of years between age at retirement and the attainment of age
sixty-five.
Sec. 2 RCW 41.32.875 and 2012 1st sp.s. c 7 s 2 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 (2) 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 (3)(a) 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 (3)(b) 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% | |
(c)(i) An active school administrator is eligible to retire under
(a) or (b) of this subsection (3), subject to (e) of this subsection
(3), if the member meets the following requirements:
(A) Has completed twenty-nine service credit years, plus ten
additional service credit months through June 30th of the school
administrator's thirtieth service credit year; and
(B) Has attained age fifty-five.
(ii) For the purposes of this subsection (3)(c), "school
administrator" means a member who serves in a managerial role relating
to the administration of a public school or who is involved in the
exercise of direction over employees of the public school. This
includes, but is not limited to, service as: Principal, assistant
principal, superintendent, assistant superintendent, directors and
coordinators, such as those persons covered under RCW 28A.150.203(2)
and 28A.410.120; and both classified and certificated employees serving
in positions such as business manager and personnel manager.
(iii) The right to retire under this subsection (3)(c) is
noncontractual and the legislature reserves the right to amend or
repeal this subsection (3)(c).
(d) Any member who retires under the provisions of (b) or (c) of
this subsection (3) is ineligible for the postretirement employment
provisions of RCW 41.32.862(2) until the retired member has reached
sixty-five years of age. For purposes of (b) or (c) of this subsection
(3), employment with an employer also includes any personal service
contract, service by an employer as a temporary or project employee, or
any other similar compensated relationship with any employer included
under the provisions of RCW 41.32.860(1).
(e) Except for (a) of this subsection (3), the subsidized
reductions for alternate early retirement in (b) of this subsection (3)
as set forth in section 4, chapter 491, Laws of 2007 and (c) of this
subsection (3) as set forth in section 2, chapter . . . (this act),
Laws of 2013 were intended by the legislature as replacement benefits
for gain-sharing. Until there is legal certainty with respect to the
repeal of chapter 41.31A RCW, the right to retire under (b) or (c) of
this subsection (3) is noncontractual, and the legislature reserves the
right to amend or repeal (b) or (c) of this subsection (3). 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, eligible members may still retire under (b) or (c) of this
subsection (3), and upon receipt of the first installment of a
retirement allowance computed under (b) or (c) of this subsection (3),
the resulting benefit becomes contractual for the recipient. 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 retirement
benefits for any member who has completed at least thirty service
credit years and has attained age fifty-five but has not yet received
the first installment of a retirement allowance under (b) or (c) of
this subsection (3) shall be computed using the reductions in (a) of
this subsection (3).
(((c))) (f) Members who first become employed by an employer in an
eligible position on or after May 1, 2013, are not eligible for the
alternate early retirement provisions of (a) or (b) of this subsection
(3). Any member who first becomes employed by an employer in an
eligible position on or after May 1, 2013, and 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 (3) shall have the retirement
allowance reduced by five percent per year to reflect the difference in
the number of years between age at retirement and the attainment of age
sixty-five.
Sec. 3 RCW 41.35.420 and 2012 1st sp.s. c 7 s 3 are each amended
to read as follows:
(1) NORMAL RETIREMENT. Any member with at least five service
credit years who has attained at least age sixty-five shall be eligible
to retire and to receive a retirement allowance computed according to
the provisions of RCW 41.35.400.
(2) EARLY RETIREMENT. Any member who has completed at least twenty
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 41.35.400, except that a member retiring pursuant
to this subsection (2) 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 41.35.400, except that a member retiring pursuant to this
subsection (3)(a) 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 41.35.400, except that a member
retiring pursuant to this subsection (3)(b) 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% | |
(c)(i) An active school administrator is eligible to retire under
(a) or (b) of this subsection (3), subject to (e) of this subsection
(3), if the member meets the following requirements:
(A) Has completed twenty-nine service credit years, plus ten
additional service credit months through June 30th of the school
administrator's thirtieth service credit year; and
(B) Has attained age fifty-five.
(ii) For the purposes of this subsection (3)(c), "school
administrator" means a member who serves in a managerial role relating
to the administration of a public school or who is involved in the
exercise of direction over employees of the public school. This
includes, but is not limited to, service as: Principal, assistant
principal, superintendent, assistant superintendent, directors and
coordinators, such as those persons covered under RCW 28A.150.203(2)
and 28A.410.120; and both classified and certificated employees serving
in positions such as business manager and personnel manager.
(iii) The right to retire under this subsection (3)(c) is
noncontractual and the legislature reserves the right to amend or
repeal this subsection (3)(c).
(d) Any member who retires under the provisions of (b) or (c) of
this subsection (3) is ineligible for the postretirement employment
provisions of RCW 41.35.060(2) until the retired member has reached
sixty-five years of age. For purposes of (b) or (c) of this subsection
(3), employment with an employer also includes any personal service
contract, service by an employer as a temporary or project employee, or
any other similar compensated relationship with any employer included
under the provisions of RCW 41.35.230(1).
(e) Except for (a) of this subsection, the subsidized reductions
for alternate early retirement in (b) of this subsection (3) as set
forth in section 6, chapter 491, Laws of 2007 and (c) of this
subsection (3) as set forth in section 3, chapter . . . (this act),
Laws of 2013 were intended by the legislature as replacement benefits
for gain-sharing. Until there is legal certainty with respect to the
repeal of chapter 41.31A RCW, the right to retire under (b) or (c) of
this subsection (3) is noncontractual, and the legislature reserves the
right to amend or repeal (b) or (c) of this subsection (3). 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, eligible members may still retire under (b) or (c) of this
subsection (3), and upon receipt of the first installment of a
retirement allowance computed under (b) or (c) of this subsection (3),
the resulting benefit becomes contractual for the recipient. 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 retirement
benefits for any member who has completed at least thirty service
credit years and has attained age fifty-five but has not yet received
the first installment of a retirement allowance under (b) or (c) of
this subsection (3) shall be computed using the reductions in (a) of
this subsection (3).
(((c))) (f) Members who first become employed by an employer in an
eligible position on or after May 1, 2013, are not eligible for the
alternate early retirement provisions of (a) or (b) of this subsection
(3). Any member who first becomes employed by an employer in an
eligible position on or after May 1, 2013, and 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 41.35.400, except that a member
retiring pursuant to this subsection (3) shall have the retirement
allowance reduced by five percent per year to reflect the difference in
the number of years between age at retirement and the attainment of age
sixty-five.
Sec. 4 RCW 41.35.680 and 2012 1st sp.s. c 7 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 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 (2) 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 (3)(a) 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 (3)(b) 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% | |
(c)(i) An active school administrator is eligible to retire under
(a) or (b) of this subsection (3), subject to (e) of this subsection
(3), if the member meets the following requirements:
(A) Has completed twenty-nine service credit years, plus ten
additional service credit months through June 30th of the school
administrator's thirtieth service credit year; and
(B) Has attained age fifty-five.
(ii) For the purposes of this subsection (3)(c), "school
administrator" means a member who serves in a managerial role relating
to the administration of a public school or who is involved in the
exercise of direction over employees of the public school. This
includes, but is not limited to, service as: Principal, assistant
principal, superintendent, assistant superintendent, directors and
coordinators, such as those persons covered under RCW 28A.150.203(2)
and 28A.410.120; and both classified and certificated employees serving
in positions such as business manager and personnel manager.
(iii) The right to retire under this subsection (3)(c) is
noncontractual and the legislature reserves the right to amend or
repeal this subsection (3)(c).
(d) Any member who retires under the provisions of (b) or (c) of
this subsection (3) is ineligible for the postretirement employment
provisions of RCW 41.35.060(2) until the retired member has reached
sixty-five years of age. For purposes of (b) or (c) of this subsection
(3), employment with an employer also includes any personal service
contract, service by an employer as a temporary or project employee, or
any other similar compensated relationship with any employer included
under the provisions of RCW 41.35.230(1).
(e) Except for (a) of this subsection (3), the subsidized
reductions for alternate early retirement in (b) of this subsection (3)
as set forth in section 8, chapter 491, Laws of 2007 and (c) of this
subsection (3) as set forth in section 4, chapter . . . (this act),
Laws of 2013 were intended by the legislature as replacement benefits
for gain-sharing. Until there is legal certainty with respect to the
repeal of chapter 41.31A RCW, the right to retire under (b) or (c) of
this subsection (3) is noncontractual, and the legislature reserves the
right to amend or repeal (b) or (c) of this subsection (3). 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, eligible members may still retire under (b) or (c) of this
subsection (3), and upon receipt of the first installment of a
retirement allowance computed under (b) or (c) of this subsection (3),
the resulting benefit becomes contractual for the recipient. 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 retirement
benefits for any member who has completed at least thirty service
credit years and has attained age fifty-five but has not yet received
the first installment of a retirement allowance under (b) or (c) of
this subsection (3) shall be computed using the reductions in (a) of
this subsection (3).
(((c))) (f) Members who first become employed by an employer in an
eligible position on or after May 1, 2013, are not eligible for the
alternate early retirement provisions of (a) or (b) of this subsection
(3). Any member who first becomes employed by an employer in an
eligible position on or after May 1, 2013, and 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 (3) shall have the retirement
allowance reduced by five percent per year to reflect the difference in
the number of years between age at retirement and the attainment of age
sixty-five.
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