SENATE BILL REPORT

SB 5483

BYSenators Patterson and Metcalf

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

Senate Committee on Ways & Means

Senate Hearing Date(s):February 9, 1987; February 10, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Bluechel, Owen, Rasmussen, Saling, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  April 18, 1987

AS PASSED SENATE, MARCH 2, 1987

BACKGROUND:

Faculty members of institutions of higher education occasionally take leaves of absence without pay to work with the United State 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 not contribute to the institutional retirement system on the basis of external service and salary.

SUMMARY:

A faculty member who takes a 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.

Fiscal Note:      requested

Senate Committee - Testified: No one

HOUSE AMENDMENT:

The House amendment provides clarification on the compensation upon which the contribution is to be made by the returning faculty member.