SENATE BILL REPORT

SB 5511

BYSenators Gaspard and Johnson;by request of Department of Retirement Systems

Establishing a mechanism for mandatory assignment of divided retirement benefit payments.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 9, 1987

Majority Report:  That Substitute Senate Bill No. 5511 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Cantu, Craswell, Hayner, Kreidler, Lee, McDonald, Moore, Owen, Rasmussen, Talmadge, Warnke, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  February 10, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 9, 1987

BACKGROUND:

The mandatory division of retirement benefits by courts is contained in statutes governing the Department of Retirement Systems (DRS) and the Department of Social and Health Services.  In some instances the statutes are ambiguous, leaving these agencies vulnerable to making illegal payments.

SUMMARY:

The bill establishes a mechanism called a "mandatory benefits assignment order" which enables recipients of a spousal maintenance or property division payment under a decree of separate maintenance or dissolution to obtain a court order requiring such payments be made by DRS from benefits due the obligor.

The mandatory benefits assignment order may either be included in a decree when entered or added after the fact.  The order does not trigger unless a payment is more than 15 days overdue and the total past due payment is equal to or greater than $100.

DRS may divide the payment of a withdrawal of contributions when such division is ordered by the court and the order is received by DRS at least 30 days in advance of the payment.

The bill does not impact on a mandatory wage assignment order for child support or an order to withhold or deliver in connection with child support enforcement proceedings.

EFFECT OF PROPOSED SUBSTITUTE:

Same as above, except the bill does not authorize the award of attorneys' fees against the Department of Retirement Systems.

Fiscal Note:      requested

Effective Date:July 1, 1987

Senate Committee - Testified: Dr. Robert Hollister, Director, Department of Retirement Systems