SENATE BILL REPORT

SB 5513

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

Revising provisions relating to withdrawal, restoration, and interest on state patrol retirement contributions.

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, Kreidler, McDonald, Owen, Saling, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  February 26, 1987

AS PASSED SENATE, FEBRUARY 25, 1987

BACKGROUND:

The Washington State Patrol Retirement System (WSPRS) provides that restoration of withdrawn contributions be done within four years of reentry into WSPRS, and that such restoration does not require interest payment; and that 2.5 percent interest be credited annually to the member's account.  The other retirement systems of the state provide a five-year restoration period and that interest, determined by the Director, Department of Retirement Systems (DRS), be paid from the date of withdrawal.  The interest credited to the member accounts of the other systems of the state is determined by the Director, DRS.

SUMMARY:

The period for a member of WSPRS to restore withdrawn contributions is extended from four years to five years.  Interest is to be paid on such restored contributions from the date of withdrawal at a rate determined by the Director, DRS.

Interest credited to the WSPRS member's account is revised from 2.5 percent to a rate determined by the Director, DRS.

Fiscal Note:      requested

Effective Date:July 1, 1987

Senate Committee - Testified: Dr. Robert Hollister, Director, DRS; Joey Allard, Acting State Actuary