BILL REQ. #: Z-0585.1
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SENATE BILL 6321
_____________________________________________| State of Washington | 63rd Legislature | 2014 Regular Session |
By Senators Bailey and Conway; by request of Select Committee on Pension PolicyRead first time 01/21/14. Referred to Committee on Ways & Means.
AN ACT Relating to removing the statutory provision that allows
members of plan 3 of the public employees' retirement system, school
employees' retirement system, and teachers' retirement system to select
a new contribution rate option each year; and amending RCW 41.34.040.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.34.040 and 2010 1st sp.s. c 7 s 32 are each amended
to read as follows:
(1) A member shall contribute from his or her compensation
according to one of the following rate structures in addition to the
mandatory minimum five percent:
| Option A | Contribution Rate |
| All Ages | 0.0% fixed |
| Option B | |
| Up to Age 35 | 0.0% |
| Age 35 to 44 | 1.0% |
| Age 45 and above | 2.5% |
| Option C | |
| Up to Age 35 | 1.0% |
| Age 35 to 44 | 2.5% |
| Age 45 and above | 3.5% |
| Option D | |
| All Ages | 2.0% |
| Option E | |
| All Ages | 5.0% |
| Option F | |
| All Ages | 10.0% |
(2) The department shall have the right to offer contribution rate
options in addition to those listed in subsection (1) of this section,
provided that no significant additional administrative costs are
created. All options offered by the department shall conform to the
requirements stated in subsections (3) and (5) of this section.
(3)(a) For members of the teachers' retirement system entering plan
3 under RCW 41.32.835 or members of the school employees' retirement
system entering plan 3 under RCW 41.35.610, within ninety days of
becoming a member he or she has an option to choose one of the above
contribution rate structures. If the member does not select an option
within the ninety-day period, he or she shall be assigned option A.
(b) For members of the public employees' retirement system entering
plan 3 under RCW 41.40.785, within the ninety days described in RCW
41.40.785 an employee who irrevocably chooses plan 3 shall select one
of the above contribution rate structures. If the member does not
select an option within the ninety-day period, he or she shall be
assigned option A.
(c) For members of the teachers' retirement system transferring to
plan 3 under RCW 41.32.817, members of the school employees' retirement
system transferring to plan 3 under RCW 41.35.510, or members of the
public employees' retirement system transferring to plan 3 under RCW
41.40.795, upon election to plan 3 he or she must choose one of the
above contribution rate structures.
(d) Within ninety days of the date that an employee changes
employers, he or she has an option to choose one of the above
contribution rate structures. If the member does not select an option
within this ninety-day period, he or she shall be assigned option A.
(4) Each year, through January of 2015, members of plan 3 of the
teachers' retirement system may change their contribution rate option
by notifying their employer in writing during the month of January.
After January of 2015, a member of plan 3 of the teachers' retirement
system may only change their contribution rate option under subsection
(3)(d) of this section. The termination of this annual contribution
rate change option in January 2015 is required to meet the plan
qualification requirements in section 401(a) of the internal revenue
code. Consistent with plan qualification requirements in the internal
revenue code, this annual contribution rate change has never been
available to plan 3 members of the public employees' retirement system
and the school employees' retirement system.
(5) Contributions shall begin the first day of the pay cycle in
which the rate option is made, or the first day of the pay cycle in
which the end of the ninety-day period occurs.
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