SENATE BILL REPORT

SHB 1408

BYHouse Committee on Appropriations (originally sponsored by Representatives Dorn, Pruitt, G. Fisher, Sayan, P. King, Holland, R. Meyers, Leonard, Patrick, Winsley, Van Luven, Cooper, Walk, Scott and Morris)

Requiring that hours worked in all eligible positions be combined to determine service credit for the public employees' retirement system.

House Committe on Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):March 29, 1989

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bauer, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Matson, Moore, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Wojahn.

Senate Staff:Charles Langen (786-7715)

                  March 30, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 29, 1989

BACKGROUND:

In order for an employee to be a member of the Public Employees Retirement System (PERS) Plan I or Plan II the individual must be employed in an eligible position.  Eligible positions are those which normally require five or more uninterrupted months of service in a year for which regular compensation is paid.  Under PERS I an employee must work at least 70 hours per month in a position in order for that position to be eligible.  PERS II requires that an employee work 90 hours per month in a position.  If an employee works less than the specified threshold in a position, the position is considered "ineligible," and therefore the employee does not qualify for membership in PERS based on employment in that position.

Currently, employees who work part-time in more than one position may work more than the specified threshold when all of the hours worked in all positions are added together, but because none of the positions are eligible positions, based on the number of hours worked, the employee does not qualify for membership.

In school districts, this can be a problem for persons working in two part-time positions, i.e. both as a bus driver and food service employee.  If neither position alone provides sufficient hours for it to qualify as an "eligible position," the employee never becomes a member of PERS and receives no service credit, even though the total hours worked in both positions exceed the minimum threshold.  Because neither of the positions are eligible positions, school districts are not required to make retirement contributions for persons holding the positions.

SUMMARY:

The definition of eligible position is changed to specify that employers shall not define position in such a way that an employee's work for that employer is divided into more than one position.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested March 3, 1989

Senate Committee - Testified: No one