SENATE BILL REPORT

HB 406

BYRepresentatives Sayan, Patrick, H. Sommers, Holland, Grimm, Belcher, Wang and Hine

Revising provisions on retirement service credit for members of committees, boards and commissions.

House Committe on Ways & Means/Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):March 26, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Cantu, Craswell, Hayner, McDonald, Moore, Owen, Rasmussen, Saling, Talmadge, Vognild, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  March 27, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 26, 1987

BACKGROUND:

Members of Plan I of the Public Employees' Retirement System (PERS I) must work 70 hours in a month in order to receive service credit for that month.  However, prior to 1976 some persons appointed to various committees, boards, or commissions were granted PERS credit for such service even though they worked less than 70 hours a month.

In 1976 PERS was amended (RCW 41.40.165) to state that no member of PERS I appointed to a board, committee, or commission after July l, 1976 could receive service credit in any month the member was compensated for less than 10 days or 70 hours of service.  PERS II members do not receive service credit unless they are compensated at a rate at least equal to 90 hours times the state minimum hourly wage ($207 per month).

The 1976 change made no reference regarding persons who were serving on a board prior to July 1, 1976 who were later appointed to a different board.

SUMMARY:

Any Public Employees' Retirement System Plan I (PERS I) member serving on a committee, board, or commission on June 30, 1976, who continued such service until later appointed by the Governor to a different committee, board or commission may receive service credit in PERS even if the member works less than 10 days or 70 hours in a month.

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Representative Doug Sayan; Dr. Robert Hollister, Director, Department of Retirement Systems