SENATE BILL REPORT

SB 5745

BYSenator Johnson

Providing for early retirement for state employees who work in state-operated institutions.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 26, 1987

Senate Staff:Sam Thompson (786-7754); Barbara Howard (786-7410)

AS OF FEBRUARY 25, 1987

BACKGROUND:

Washington has two retirement systems applying to most state employees.  Under Public Employees Retirement System (PERS) I, applying to employees who entered state service prior to October 1, 1977, employees may retire after 30 years of service.  If, however, they are at least 55 years old, they may retire after 25 years of service; if they are at least 60 years old, they may retire after five years of creditable service.

Under PERS II, applying to employees who entered state service on October 1, 1977 or later, employees who are at least 65 years old may retire after five years of service.  Early retirement at a reduced pension rate may be taken by state employees after 20 years of service if they are at least 55 years old.

It is suggested that employees who provide hands-on care to residents of state institutions be allowed to retire under these retirement systems after shorter periods of service.

SUMMARY:

Under PERS I and II, state employees who provide hands-on care in state-owned and operated institutions under the control of the Departments of Social and Health Services, Veterans Affairs, or Corrections may retire after shorter periods of service.

With regard to PERS I, any of these employees who have 20 years of creditable service may retire.  They may also retire if they have five years of creditable service, or if they are original members of the retirement system, provided that they are at least 55 years old.

With regard to PERS II, these employees may retire after 20 years of service, or five years of service if they are at least 60 years old.

Fiscal Note:      requested