Z-1402 _______________________________________________
HOUSE BILL NO. 1560
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C 059 L 88
State of Washington 50th Legislature 1988 Regular Session
By Representatives Sayan and Grimm; by request of Department of Retirement Systems
Read first time 1/20/88 and referred to Committee on Ways & Means.
AN ACT Relating to retirement benefits for persons who have attained age seventy and one-half and are still employed; adding a new section to chapter 41.04 RCW; creating a new section; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The sole purpose of section 2 of this act is to provide members of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, and 43.43 RCW with temporary relief from the provisions of the 1986 federal tax reform act which impose a substantial penalty on persons who do not begin receiving their retirement benefits following the year in which they reach age seventy and one-half.
No member shall have any contractual rights to the benefits provided by section 2 of this act, and the legislature at its discretion may modify or eliminate such benefits in the future. Should the congress repeal the penalty provision, retirement payments under section 2 of this act will cease and any such payments made will be actuarially considered in determining the retirement benefit when the member separates and requests retirement.
NEW SECTION. Sec. 2. A new section is added tochapter 41.04 RCW to read as follows:
(1) For the purposes of this section, "system" means any of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, and 43.43 RCW. The provisions of this section shall be given effect notwithstanding any provisions to the contrary contained in any such system.
(2) Upon attainment of age seventy and one-half, an employed member of a system may, subject to the provisions of this section, apply for the retirement benefit the member is eligible to receive. The benefit shall be calculated in accordance with the rules of the system to which the member belongs, except that the member may continue to be employed. While employed, the member shall continue to make contributions to the system and receive service credit according to the rules of the system as though the member were not retired and receiving benefits.
(3) When a member who retires pursuant to this section separates from service or dies while still employed, the department shall recalculate the retirement benefit for the sole purpose of taking into consideration the additional service credit and compensation history. No change in the survivor option and related beneficiary designation originally selected by the member shall be allowed except as otherwise authorized by the member's system.
(4) This section applies only to persons who attain age seventy and one-half years on or after January 1, 1988.
NEW SECTION. Sec. 3. This act shall take effect January 1, 1989.