H-931                _______________________________________________

                                                    HOUSE BILL NO. 584

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Holland, P. King, Lewis, Gallagher, Leonard, Belcher, Rayburn, Winsley, Hankins, Lux, Unsoeld, Pruitt, Brough, Ferguson, Betrozoff, Doty, May, Jesernig and Miller

Read first time 2/4/87 and referred to Committee on Ways & Means.

AN ACT Relating to teachers' service retirement allowance adjustments; and amending RCW 41.32.499.

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

        Sec. 1.  Section 9, chapter 189, Laws of 1973 1st ex. sess. as amended by section 1, chapter 32, Laws of 1973 2nd ex. sess. and RCW 41.32.499 are each amended to read as follows:

          (1) "Index" for the purposes of this section shall mean, for any calendar year, that year's annual average consumer price index for urban wage earners and clerical workers, all items (1957-1959 equal one hundred)‑-compiled by the Bureau of Labor Statistics, United States Department of Labor;

          (2) "Cost-of-living factor" for the purposes of this section for any year shall mean the ratio of the index for the previous year to the index for the year preceding the initial date of payment of the retirement allowance, except that, in no event, shall the cost-of-living factor, for any year subsequent to 1971, be

          (a) less than 1.000;

          (b) more than one hundred three percent or less than ninety-seven percent of the previous year's cost-of-living factor; or

          (c) such as to yield a retirement allowance, for any individual, less than that which was in effect July 1, 1972;

          (3) The "initial date of payment" for the purposes of adjusting the annuity portion of a retirement allowance for the purposes of this section shall mean the date of retirement of a member.

          (4) The "initial date of payment" for the purposes of adjusting the pension portion of a retirement allowance for the purposes of this section shall mean the date of retirement of a member or July 1, 1972, whichever is later:  PROVIDED, That this 1973 amendment to this subsection shall be retroactive to July 1, 1973.

          (5) Each service retirement allowance payable from July 1, 1973, until any subsequent adjustment pursuant to subsection (6) of this section shall be adjusted so as to equal the product of the cost-of-living factor for 1973 and the amount of said retirement allowance on the initial date of payment.

          (6) Each service retirement allowance payable from July 1st of any year after 1973 until any subsequent adjustment pursuant to this subsection shall be adjusted so as to equal the product of the cost-of-living factor for such year and the amount of said retirement allowance on the initial date of payment((:  PROVIDED, That the board finds, at its sole discretion, that the cost of such adjustments shall have been met by the excess of the growth in the assets of the system over that required for meeting the actuarial liabilities of the system at that time)).