SENATE BILL REPORT

SB 6466

BYSenator Vognild

Revising retirement benefit calculation for certain county employees.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1988; February 8, 1988

Majority Report:  That Substitute Senate Bill No. 6466 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Bauer, Bluechel, Cantu, Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Smith, Talmadge, Vognild, Warnke, Williams, Wojahn.

Senate Staff:Charles Langen (786-7715)

                  February 8, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 8, 1988

BACKGROUND:

In the Public Employees' Retirement System-Plan I (PERS I), unless the employer has a clear and consistent definition of what dollar value is attached to sick leave (i.e., first in, first out; or last in, first out), the Department of Retirement Systems (DRS) will value the sick leave cashed out at retirement on the basis of first in, first out.  If the employer, in an inconsistent manner, values it differently, the employer is required to pay the full present value in retirement benefit of the excess compensation.

SUMMARY:

Employees of the Snohomish County Public Works Department who were retired on February 1, 1985, regardless of existing law, are to have their sick leave cash out valued in their average final compensation retroactively to February 1, 1985.

EFFECT OF PROPOSED SUBSTITUTE:

Employees of a class A county public works department who retired on February 1, 1985, regardless of existing law, are to have their sick leave cash out valued in their average final compensation calculation retroactively to February 1, 1985.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Jerry Allard, State Actuary; Sam Kinville, City and County Employees (for)