SENATE BILL REPORT

HB 2110

BYRepresentative Appelwick

Reducing elected officials' contributions to the teachers' retirement system to six percent.

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, Bluechel, Cantu, Gaspard, Johnson, Lee, Newhouse, Niemi, Owen, Smith, Talmadge.

Senate Staff:Charles Langen (786-7715)

                  March 31, 1989

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

BACKGROUND:

Elected officials who are members of the Public Employee's Retirement System, Plan I (PERS I) pay 7 1/2 percent of salary for retirement contributions.  Their benefit at retirement is based on a formula that provides 3 percent of average final compensation (AFC) for every year of service credit.  AFC is calculated over the two highest consecutive years of salary.

Elected officials who are members of the Teachers' Retirement System, Plan I (TRS I) also pay 7 1/2 percent of salary for retirement contributions but their benefit is based on a 2 percent formula.

Other members of TRS I, who are not elected officials, pay 6 percent of salary for retirement contributions and receive a benefit based on a 2 percent formula.

SUMMARY:

Retirement contributions for elected officials who are members of Teachers' Retirement System Plan I are reduced from 7 1/2 percent of salary to 6 percent.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 24, 1989

Senate Committee - Testified: No one