HOUSE BILL REPORT

SSB 5512

As Amended by the House

BYSenate Committee on Ways & Means (originally sponsored by Senators Gaspard and Johnson; by request of Department of Retirement Systems)

Revising provisions relating to service credit under the public employees retirement system.

House Committe on Ways & Means/Appropriations

Majority Report:  Do pass with amendments.  (23)

      Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, L. Smith, H. Sommers, Sprenkle and B. Williams.

House Staff:Randy Acker (786-7153)

AS PASSED HOUSE APRIL 17, 1987

BACKGROUND:

In addition to other eligibility criteria, the Public Employees' Retirement System (PERS) provides that a retiree who returns to employment and membership in PERS, Tier I, must work two years before any service credit may be granted.

Elected officials have the option under RCW 41.40.120(3) to become a member of PERS.  A person elected to office prior to October 1, 1987 had the option of becoming a member of PERS, Plan I.  If such an individual waited until after October 1, 1977 to exercise the option, he or she would become a member of PERS, Plan II.

A member of the Teachers' Retirement System Plan I (TRS I) who was elected after 1973 and who is serving as an elected official under Articles II or III of the state constitution will receive a retirement benefit based on a 2 percent formula.  A member of PERS I in the same position will receive a retirement benefit based on a 3 percent formula.  Elected officials in both TRS I and PERS I make member contributions equal to 7.5 percent of their compensation; other PERS I and TRS I members contribute 6 percent of their compensation.

SUMMARY:

A retiree from the Public Employees' Retirement System (PERS) who returns to employment and membership in PERS, Tier I, shall be granted service credit immediately if all other eligibility criteria are met.

A technical amendment is made to ESSB 5150 regarding portability of service credit for elected officials who are members of the Teachers' Retirement System.

Fiscal Note:      Attached.

Effective Date:The bill contains an emergency clause and takes effect July 1, 1987.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.