FINAL BILL REPORT

SB 5483

                                  C 448 L 87

BYSenators Patterson and Metcalf

Authorizing certain leaves of absence to be credited toward higher education retirement benefits.

Senate Committee on Ways & Means

House Committe on Ways & Means/Appropriations

SYNOPSIS AS ENACTED

BACKGROUND:

Faculty members of institutions of higher education occasionally take leaves of absence without pay to work with the United States government as well as other foreign and domestic governmental and non-governmental entities.  In many instances, the salaries received for this work do not flow through institutional channels.  This has the effect of interrupting service for the purpose of retirement as neither the faculty member nor the institution may contribute to the institutional retirement system on the basis of external service and salary.

SUMMARY:

A faculty member who takes an authorized leave of absence without pay to enter into a personal service contract with an agency of the United States government, an agency of a foreign power, the United Nations or a nonprofit organization, may pay both the member's and employer's contribution to the retirement system established by the institution of higher education and thereby receive credited service.  The contribution is to be based on the average of the employee's compensation at the time the leave was taken and the time the member returns to employment.  The supplemental amount, paid upon retirement, if any, may be based on up to two years of leave from the institution of higher education.

VOTES ON FINAL PASSAGE:

      Senate    48     0

      House 92   4 (House amended)

      Senate    45     0 (Senate concurred)

EFFECTIVE:July 26, 1987