SENATE BILL REPORT

HB 1718

BYRepresentatives Hine, Silver, Baugher and D. Sommers; by request of  Department of Retirement Systems

Changing provisions relating to disability retirement for Washington state patrol.

House Committe on Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):March 29, 1989; March 30, 1989

Majority Report:  Do pass.

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

Senate Staff:Charles Langen (786-7715)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 30, 1989

BACKGROUND:

Members of the Washington State Patrol Retirement System (WSPRS) who become disabled while actively employed receive a disability allowance paid directly by the Washington State Patrol.  The contributions which they have made to the WSPRS remain on deposit with the retirement system during their disability since there is no statutory authority for refunding contributions.  Upon the death of a disabled WSPRS member, a survivor allowance is paid to the surviving spouse from the WSPRS.  There is currently ambiguous language in statute which can be interpreted as authorizing a refund in the case of a disability.  There have been two recent appeals filed in which the plaintiff argued that the language authorized a refund.

SUMMARY:

Members of the Washington State Patrol Retirement System who receive a disability allowance are not authorized to receive a refund of their contributions.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Jerry Allard, State Actuary; Sheryl Wilson, Acting Director, Department of Retirement Systems