SENATE BILL REPORT

SB 6457

BYSenators Johnson, Gaspard, McDonald and von Reichbauer; by request of Department of Retirement Systems

Revising provisions relating to teachers' retirement options.

Senate Committee on Ways & Means

Senate Hearing Date(s):

Senate Staff:Charles Langen (786-7715)

AS OF JANUARY 25, 1988

BACKGROUND:

In 1988 the Legislature adopted an option in which retiring members of the plan I systems of the Public Employees' Retirement System (PERS) and Teachers' Retirement System (TRS) might choose to have their retirement allowance actuarially reduced so that they could receive the same cost-of-living adjustment offered by the plan II systems.  In the adopted language the actuarially equivalency to the existing benefit options are stated but a necessary reference to the maximum allowance was inadvertently omitted.

SUMMARY:

The omitted reference to the maximum retirement allowance is corrected.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 21, 1988

Effective Date:June 30, 1988