H-4252              _______________________________________________

 

                                                   HOUSE BILL NO. 1639

                        _______________________________________________

 

State of Washington                              50th Legislature                              1988 Regular Session

 

By Representatives H. Sommers, Silver, Hine, McLean and Bristow

 

 

Read first time 1/20/88 and referred to Committee on Ways & Means.

 

 


AN ACT Relating to public employment retirement portability benefits; amending RCW 41.54.010, 41.54.030, 41.54.040, 41.54.070, 41.04.270, 41.40.120, and 41.32.010; adding a new section to chapter 41.54 RCW; adding a new section to chapter 41.32 RCW; and providing an effective date.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

        Sec. 1.  Section 1, chapter 192, Laws of 1987 and RCW 41.54.010 are each amended to read as follows:

          The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

          (1) (("Actuary" means the state actuary as established under chapter 44.44 RCW.

          (2))) "Base salary" means salaries or wages earned by a member of a system during a payroll period for personal services and includes wages and salaries deferred under provisions ((established pursuant to sections 403(b), 414(h), and 457)) of the United States internal revenue code, but shall exclude overtime payments, nonmoney maintenance compensation, and lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, any form of severance pay, any bonus for voluntary retirement, any other form of leave, or any similar lump sum payment.

          (((3) "Average compensation" means, respectively,  "final compensation" as defined in RCW 41.28.010 and 41.44.030(14), "average final compensation" as defined in RCW 41.32.010 and 41.40.010, "average earnable compensation" as used in RCW 41.32.498, and "average final salary" as defined in RCW 43.43.120.

          (4) "Service retirement allowance" means, respectively, "retirement allowance" as used or defined in RCW 41.28.130, 41.32.010, 41.40.010, 41.44.030(22), and 43.43.260.

          (5) "Current system average final compensation" means that compensation or average compensation used in the service retirement benefit calculation of the current system with compensation being either that earned in the current system or the base salary earned in a prior system, whichever produces the greater benefit.

          (6) "Prior system average final compensation" means the compensation or average compensation used in the service retirement benefit calculation of the prior system,  with compensation being either that earned in the prior system or the base salary earned in any system in which dual membership is held, whichever produces the greater benefit.

          (7) "Compensation" means, respectively, "compensation earnable" as defined in RCW 41.28.010, "earnable compensation" as defined in RCW 41.32.010, "compensation earnable" as defined in RCW 41.40.010, "compensation earnable" as defined in RCW 41.44.030, and "average final salary" as used in RCW 43.43.120(15).

          (8) "Current system" means the system in which a member is currently making contributions and accruing service credit.

          (9))) (2) "Department" means the department of retirement systems.

          (((10))) (3) "Director" means the director of the department of retirement systems.

          (((11))) (4) "Dual member" means a person who (a) is or becomes a member of a system on or after July 1, 1988, (b) has been a member of one or more other systems, and (c) has never been retired for service from a retirement system and is not receiving a disability retirement or disability leave benefit from ((a prior)) any retirement system listed in RCW 41.50.030 or subsection (6) of this section.

          (((12) "Prior system"  means a system in which a person had previous membership but is no longer making member contributions.

          (13))) (5) "Service" means the same as it may be defined in each respective system.  For the purposes of RCW 41.54.030, military service granted under RCW 41.40.170(3) or 43.43.260 may only be based on service accrued under chapter 41.40 or 43.43 RCW, respectively.

          (((14))) (6) "System" means the retirement systems established under chapters ((41.28,)) 41.32, 41.40, ((41.44,)) and 43.43 RCW and the city employee retirement systems for Seattle, Tacoma, and Spokane.  The inclusion of an individual first class city system is subject to the procedure set forth in RCW 41.54.060.

 

        Sec. 2.  Section 3, chapter 192, Laws of 1987 and RCW 41.54.030 are each amended to read as follows:

          (1) ((As used in this section, the percentage factor to be used in calculating a benefit under chapter 41.28 RCW shall be determined using only the service earned in a retirement system created under that chapter.

          (2) The service retirement allowances to be paid to a dual member upon retiring from the current system because of service shall be the sum of:

          (a) The service retirement allowance received under the current system as a result of multiplying the current system average final compensation by the percentage factor of the current system and the service earned under the current system; and

          (b) The sum of the respective service retirement allowances received under prior systems as a result of multiplying each prior system's average final compensation by the percentage factor of that prior system and the service earned under that prior system.

          (3) Eligibility to receive a service benefit under this chapter shall be based on (a) the criteria of any system in which dual membership is held, and (b) the dual member's combined systems' service.)) A dual member's service in all systems may be combined for the sole purpose of determining the member's eligibility to receive a service retirement allowance.  This subsection does not, however, permit a member to combine service for the purpose of determining the percentage factor to be used in calculating a service retirement allowance in the city employee retirement systems for Seattle and Tacoma.

          (2) A dual member who is eligible to retire under any system may elect to retire from all the member's systems and to receive service retirement allowances calculated as provided in this section.  Each system shall calculate the allowance using its own criteria except that the member shall be allowed to substitute the member's base salary from any system as the compensation used in calculating the allowance.

          (3)  The service retirement allowances from a system which, but for this ((chapter)) section, would not be allowed to be paid at this date based on the dual member's age shall be either actuarially adjusted from the earliest age upon which the combined service would have made such dual member eligible in that system, or the dual member may choose to defer the benefit until fully eligible.

 

        Sec. 3.  Section 4, chapter 192, Laws of 1987 and RCW 41.54.040 are each amended to read as follows:

          (1) The retirement allowances calculated under RCW 41.54.030 shall be paid separately by each respective current and prior system.  Any deductions from such separate payments shall be according to the provisions of the respective systems.

          (2) Postretirement adjustments, if any, shall be applied by the respective systems based on the payments made under subsection (1) of this section.

          (3) If a dual member dies in service in any system, the surviving spouse shall receive the same benefit from each system that would have been received if the member were active in the system at the time of death based on service actually established in that system.  However, this subsection does not make a surviving spouse eligible for the survivor benefits provided in RCW 43.43.270.

 

        Sec. 4.  Section 7, chapter 192, Laws of 1987 and RCW 41.54.070 are each amended to read as follows:

          The benefit granted by this chapter shall not result in a total benefit less than would have been received absent such benefit.  The total sum of the retirement allowances received under this chapter shall not exceed the smallest amount the dual member would receive if all the service had been rendered in any one system.  When calculating the maximum benefit a dual member would receive:  (1) Military service granted under RCW 41.40.170(3) or 43.43.260 shall be based only on service accrued under chapter 41.40 or 43.43 RCW, respectively; and (2) the calculation shall be made assuming that the dual member did not defer any allowances pursuant to RCW 41.54.030(3).  When a dual member's combined retirement allowances would exceed the limitation imposed by this section, the allowances shall be reduced by the systems on a proportional basis, according to service.

 

        Sec. 5.  Section 1, chapter 105, Laws of 1975-'76 2nd ex. sess. as last amended by section 9, chapter 192, Laws of 1987 and RCW 41.04.270 are each amended to read as follows:

          (1) Notwithstanding any provision of chapter 2.10, 2.12, 41.26, 41.28, 41.32, 41.40, or 43.43 RCW to the contrary, on and after March 19, 1976, any member or former member who (a) receives a retirement allowance earned by said former member as deferred compensation from any public retirement system authorized by the general laws of this state, or (b) is eligible to receive a retirement allowance from any public retirement system listed in RCW 41.50.030, but chooses not to apply, or (c) is the beneficiary of a disability allowance from any public retirement system listed in RCW 41.50.030 shall be estopped from becoming a member of or accruing any contractual rights whatsoever in any other public retirement system listed in RCW 41.50.030:  PROVIDED, That (a) and (b) of this subsection shall not apply to persons who have accumulated less than fifteen years service credit in any such system.

          (2) Nothing in this section is intended to apply to (((a))) any retirement system except those listed in RCW 41.50.030 ((and chapter 41.28 RCW, or (b))) and the city employee retirement systems for Seattle, Tacoma, and Spokane.  Subsection (1)(b) of this section does not apply to a dual member as defined in RCW 41.54.010.

 

          NEW SECTION.  Sec. 6.  A new section is added to chapter 41.54 RCW to read as follows:

          (1) The systems may pay a dual member a lump sum payment in lieu of a monthly benefit if the initial monthly benefit computed in accordance with RCW 41.54.030 would be less than fifty dollars.  The lump sum payment shall be the greater of the actuarial equivalent of such monthly benefits or an amount equal to the individual's accumulated contributions plus accrued interest.

          (2) It is the intent of the legislature that any member who receives a settlement under this section shall be deemed to be retired from the system making the lump sum payment.

 

        Sec. 7.  Section 13, chapter 274, Laws of 1947 as last amended by section 1, chapter 379, Laws of 1987 and RCW 41.40.120 are each amended to read as follows:

          Membership in the retirement system shall consist of all regularly compensated employees and appointive and elective officials of employers, as defined in this chapter, with the following exceptions:

          (1) Persons in ineligible positions;

          (2) Employees of the legislature except the officers thereof elected by the members of the senate and the house and legislative committees, unless membership of such employees be authorized by the said committee;

          (3) (a) Persons holding elective offices or persons appointed directly by the governor:  PROVIDED, That such persons shall have the option of applying for membership during such periods of employment:  AND PROVIDED FURTHER, That any persons holding or who have held elective offices or persons appointed by the governor who are members in the retirement system and who have, prior to becoming such members, previously held an elective office, and did not at the start of such initial or successive terms of office exercise their option to become members, may apply for membership to be effective during such term or terms of office, and shall be allowed to establish the service credit applicable to such term or terms of office upon payment of the employee contributions therefor by the employee with interest as determined by the director and employer contributions therefor by the employer or employee with interest as determined by the director:  AND PROVIDED FURTHER, That all contributions with interest submitted by the employee under this subsection shall be placed in the employee's individual account in the employee's savings fund and be treated as any other contribution made by the employee, with the exception that any contributions submitted by the employee in payment of the employer's obligation, together with the interest the director may apply to the employer's contribution, shall not be considered part of the member's annuity for any purpose except withdrawal of contributions;

          (b) A member holding elective office in a town or city who has elected to apply for membership pursuant to (a) of this subsection and who later wishes to be eligible for a retirement allowance shall have the option of ending his or her membership in the retirement system.  A member wishing to end his or her membership under this subsection must file, on a form supplied by the department, a statement indicating that the member agrees to irrevocably abandon any claim for service for future periods served as an elected official of a town or city.  A member who receives more than ten thousand dollars per year in compensation for his or her elective service is not eligible for the option provided by this subsection (3)(b);

          (4) Employees holding membership in, or receiving pension benefits under, any retirement plan operated wholly or in part by an agency of the state or political subdivision thereof, or who are by reason of their current employment contributing to or otherwise establishing the right to receive benefits from any such retirement plan:  PROVIDED, HOWEVER, In any case where the retirement system has in existence an agreement with another retirement system in connection with exchange of service credit or an agreement whereby members can retain service credit in more than one system, such an employee shall be allowed membership rights should the agreement so provide:  AND PROVIDED FURTHER, That an employee shall be allowed membership if otherwise eligible while receiving survivor's benefits:  AND PROVIDED FURTHER, That an employee shall not either before or after June 7, 1984, be excluded from membership or denied service credit pursuant to this subsection solely on account of enrollment under the relief and compensation provisions or the pension provisions of the volunteer firemen's relief and pension fund under chapter 41.24 RCW;

          (5) Patient and inmate help in state charitable, penal, and correctional institutions;

          (6) "Members" of a state veterans' home or state soldiers' home;

          (7) Persons employed by an institution of higher learning or community college, primarily as an incident to and in furtherance of their education or training, or the education or training of a spouse;

          (8) Employees of an institution of higher learning or community college during the period of service necessary to establish eligibility for membership in the retirement plans operated by such institutions;

          (9) Persons rendering professional services to an employer on a fee, retainer, or contract basis or when the income from these services is less than fifty percent of the gross income received from the person's practice of a profession;

          (10) Persons appointed after April 1, 1963, by the liquor control board as agency vendors;

          (11) Employees of a labor guild, association, or organization:  PROVIDED, That elective officials and employees of a labor guild, association, or organization which qualifies as an employer within this chapter shall have the option of applying for membership;

          (12) Persons hired in eligible positions on a temporary basis for a period not to exceed six months:  PROVIDED, That if such employees are employed for more than six months in an eligible position they shall become members of the system;

          (13) Persons employed by or appointed or elected as an official of a first class city that has its own retirement system:  PROVIDED, That any member elected or appointed to an elective office on or after April 1, 1971, shall have the option of continuing as a member of this system in lieu of becoming a member of the city system.  A member employed, other than as an official, after July 1, 1988, shall also have the option of continuing as a member of this system in lieu of becoming a member of the city system.   A member who elects to continue as a member of this system shall pay the appropriate member contributions and the city shall pay the employer contributions at the rates prescribed by this chapter.  The city shall also transfer to this system all of such member's accumulated contributions together with such further amounts as necessary to equal all employee and employer contributions which would have been paid into this system on account of such service with the city and thereupon the member shall be granted credit for all such service.  Any city that becomes an employer as defined in RCW 41.40.010(4) as the result of an individual's election under the first proviso of this subsection shall not be required to have all employees covered for retirement under the provisions of this chapter.  Nothing in this subsection shall prohibit a city of the first class with its own retirement system from transferring all of its current employees to the retirement system established under this chapter.  Notwithstanding any other provision of this chapter, persons transferring from employment with a first class city of over  four hundred thousand population that has its own retirement system to employment with the state department of agriculture may elect to remain within the retirement system of such city and the state shall pay the employer contributions for such persons at like rates as prescribed for employers of other members of such system;

          (14) Employees who (a) are not citizens of the United States, (b) do not reside in the United States, and (c) perform duties outside of the United States;

          (15) Employees who (a) are not citizens of the United States, (b) are not covered by chapter 41.48 RCW, (c) are not excluded from membership under this chapter or chapter 41.04 RCW, (d) are residents of this state, and (e) make an irrevocable election to be excluded from membership, in writing, which is submitted to the director within thirty days after employment in an eligible position;

          (16) Employees who are citizens of the United States and who reside and perform duties for an employer outside of the United States:  PROVIDED, That unless otherwise excluded under this chapter or chapter 41.04 RCW, the employee may apply for membership (a) within thirty days after employment in an eligible position and membership service credit shall be granted from the first day of membership service, and (b) after this thirty-day period, but membership service credit shall be granted only from the date of application;

          (17) The city manager or chief administrative officer of a city or town who serves at the pleasure of an appointing authority:  PROVIDED, That such persons shall have the option of applying for membership within thirty days from date of their appointment to such positions.  Persons serving in such positions as of April 4, 1986, shall continue to be members in the retirement system unless they notify the director in writing prior to December 31, 1986, of their desire to withdraw from membership in the retirement system.  A member who withdraws from membership in the system under this section shall receive a refund of the member's accumulated contributions.

 

          NEW SECTION.  Sec. 8.  A new section is added to chapter 41.32 RCW to read as follows:

          A member of the retirement system who is first employed after July 1, 1988, by a first class city that has its own retirement system shall have the option of continuing as a member of this system in lieu of becoming a member of the city system. A member who elects to continue as a member of this system shall pay the appropriate member contributions and the city shall pay the employer contributions at the rates prescribed by this chapter.  The city shall also transfer to this system all of such member's accumulated contributions together with such further amounts as necessary to equal all employee and employer contributions which would have been paid into this system on account of such service with the city and thereupon the member shall be granted credit for all such service.

 

        Sec. 9.  Section 6, chapter 13, Laws of 1985 as amended by section 1, chapter 265, Laws of 1987 and RCW 41.32.010 are each amended to read as follows:

          As used in this chapter, unless a different meaning is plainly required by the context:

          (1) (a) "Accumulated contributions" for persons who establish membership in the retirement system on or before September 30, 1977, means the sum of all regular annuity contributions with regular interest thereon.

          (b) "Accumulated contributions" for persons who establish membership in the retirement system on or after October 1, 1977, means the sum of all contributions standing to the credit of a member in the member's individual account together with the regular interest thereon.

          (2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality tables and regulations as shall be adopted by the director and regular interest.

          (3) "Annuity" means the moneys payable per year during life by reason of accumulated contributions of a member.

          (4) "Annuity fund" means the fund in which all of the accumulated contributions of members are held.

          (5) "Annuity reserve fund" means the fund to which all accumulated contributions are transferred upon retirement.

          (6) (a) "Beneficiary" for persons who establish membership in the retirement system on or before September 30, 1977, means any person in receipt of a retirement allowance or other benefit provided by this chapter.

          (b) "Beneficiary" for persons who establish membership in the retirement system on or after October 1, 1977, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

          (7) "Contract" means any agreement for service and compensation between a member and an employer.

          (8) "Creditable service" means membership service plus prior service for which credit is allowable.  This subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

          (9) "Dependent" means receiving one-half or more of support from a member.

          (10) "Disability allowance" means monthly payments during disability.  This subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

          (11) (a) (i) "Earnable compensation" for persons who establish membership in the retirement system on or before September 30, 1977, means all salaries and wages paid by an employer to an employee member of the retirement system for personal services rendered during a fiscal year.  In all cases where compensation includes maintenance the employer shall fix the value of that part of the compensation not paid in money:  PROVIDED, That retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation and the individual shall receive the equivalent service credit:  PROVIDED FURTHER, That if a leave of absence, without pay, is taken by a member for the purpose of serving as a member of the state legislature, and such member has served in the legislature five or more years, the salary which would have been received for the position from which the leave of absence was taken shall be considered as compensation earnable if the employee's contribution thereon is paid by the employee.  In addition, where a member has been a member of the state legislature for five or more years, earnable compensation for the member's two highest compensated consecutive years of service shall include a sum not to exceed thirty-six hundred dollars for each of such two consecutive years, regardless of whether or not legislative service was rendered during those two years.

          (ii) For members employed less than full time under written contract with a school district, or community college district, in an instructional position, for which the member receives service credit of less than one year in all of the years used to determine the earnable compensation used for computing benefits due under RCW 41.32.497, 41.32.498, and 41.32.520, the member may elect to have earnable compensation defined as provided in RCW 41.32.011.  For the purposes of this subsection, the term "instructional position" means a position in which more than seventy-five percent of the member's time is spent as a classroom instructor (including office hours), a librarian, or a counselor.  Earnable compensation shall be so defined only for the purpose of the calculation of retirement benefits and only as necessary to insure that members who receive fractional service credit under RCW 41.32.270 receive benefits proportional to those received by members who have received full-time service credit.

          (b) "Earnable compensation" for persons who establish membership in the retirement system on or after October 1, 1977, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay:  PROVIDED, That retroactive payments to an individual by an employer on reinstatement of the employee in a position or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation, to the extent provided above, and the individual shall receive the equivalent service credit:  PROVIDED FURTHER, That in any year in which a member serves in the legislature the member shall have the option of having such member's earnable compensation be the greater of:

          (i) the earnable compensation the member would have received had such member not served in the legislature; or

          (ii) such member's actual earnable compensation received for teaching and legislative service combined.  Any additional contributions to the retirement system required because compensation earnable under subparagraph (i) of this subsection is greater than compensation earnable under subparagraph (ii) of this subsection shall be paid by the member for both member and employer contributions.

          (12) "Employer" means the state of Washington, the school district, or any agency of the state of Washington by which the member is paid.  For the purposes of section 8 of this 1988 act, "employer" includes a first class city that has its own retirement system.

          (13) "Fiscal year" means a year which begins July 1st and ends June 30th of the following year.

          (14) "Former state fund" means the state retirement fund in operation for teachers under chapter 187, Laws of 1923, as amended.

          (15) "Local fund" means any of the local retirement funds for teachers operated in any school district in accordance with the provisions of chapter 163, Laws of 1917 as amended.

          (16) "Member" means any teacher included in the membership of the retirement system.  Also, any other employee of the public schools who, on July 1, 1947, had not elected to be exempt from membership and who, prior to that date, had by an authorized payroll deduction, contributed to the annuity fund.

          (17) "Membership service" means service rendered subsequent to the first day of eligibility of a person to membership in the retirement system:  PROVIDED, That where a member is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service is rendered.  The provisions of this subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

          (18) "Pension" means the moneys payable per year during life from the pension reserve fund.

          (19) "Pension reserve fund" is a fund in which shall be accumulated an actuarial reserve adequate to meet present and future pension liabilities of the system and from which all pension obligations are to be paid.

          (20) "Prior service" means service rendered prior to the first date of eligibility to membership in the retirement system for which credit is allowable.  The provisions of this subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

          (21) "Prior service contributions" means contributions made by a member to secure credit for prior service.  The provisions of this subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

          (22) "Public school" means any institution or activity operated by the state of Washington or any instrumentality or political subdivision thereof  employing teachers, except the University of Washington and Washington State University.

          (23) "Regular contributions" means the amounts required to be deducted from the compensation of a member and credited to the member's individual account in the annuity fund.  This subsection shall apply only to persons establishing membership in the retirement system on or before September 30, 1977.

          (24) "Regular interest" means such rate as the director may determine.

          (25) (a) "Retirement allowance" for persons who establish membership in the retirement system on or before September 30, 1977, means the sum of annuity and pension or any optional benefits payable in lieu thereof.

          (b) "Retirement allowance" for persons who establish membership in the retirement system on or after October 1, 1977, means monthly payments to a retiree or beneficiary as provided in this chapter.

          (26) "Retirement system" means the Washington state teachers' retirement system.

          (27) (a) "Service" means the time during which a member has been employed by an employer for compensation:  PROVIDED, That where a member is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service is rendered.

          (b) "Service" for persons who establish membership in the retirement system on or after October 1, 1977, means periods of employment by a member for one or more employers for which earnable compensation is earned for ninety or more hours per calendar month.  Members shall receive twelve months of service for each contract year or school year of employment.

          Any person who is a member of the teachers' retirement system and who is elected or appointed to a state elective position may continue to be a member of the retirement system and continue to receive service credit for the time spent in a state elective position by making the required member contributions.

         

          When an individual is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service for ninety or more hours is rendered.

          Notwithstanding RCW 41.32.240, teachers covered by RCW 41.32.755 through 41.32.825, who render service need not serve for ninety days to obtain membership so long as the required contribution is submitted for such ninety-day period.  Where a member did not receive service credit under RCW 41.32.775 through 41.32.825 due to the ninety-day period in RCW 41.32.240 the member may receive service credit for that period so long as the required contribution is submitted for the period.  Anyone entering membership on or after October 1, 1977, and prior to July 1, 1979, shall have until June 30, 1980, to make the required contribution in one lump sum.

          (28) "Survivors' benefit fund" means the fund from which survivor benefits are paid to dependents of deceased members.  This subsection shall apply only to persons establishing membership in the retirement system on or before September 30, 1977.

          (29) "Teacher" means any person qualified to teach who is engaged by a public school in an instructional, administrative, or supervisory capacity.  The term includes state, educational service district, and school district superintendents and their assistants and all employees certificated by the superintendent of public instruction; and in addition thereto any full time school doctor who is employed by a public school and renders service of an instructional or educational nature.

          (30) "Average final compensation" for persons who establish membership in the retirement system on or after October 1, 1977, means the member's average earnable compensation of the highest consecutive sixty months of service prior to such member's retirement, termination, or death.  Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation.

          (31) "Retiree" for persons who establish membership in the retirement system on or after October 1, 1977, means any member in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.

          (32) "Department" means the department of retirement systems created in chapter 41.50 RCW.

          (33) "Director" means the director of the department.

          (34) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

          (35) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

          (36) "Retirement board" means the director of retirement systems.

 

          NEW SECTION.  Sec. 10.    This act shall take effect July 1, 1988.