SENATE BILL REPORT

ESSB 5027

BYSenate Committee on Ways & Means (originally sponsored by Senators Smith, Smitherman, Saling, Warnke and Sutherland)

Changing the definition of "service" for PERS.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 6, 1989

Majority Report:  That Substitute Senate Bill No. 5027 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Charles Langen (786-7715)

                  March 15, 1989

AS PASSED SENATE, MARCH 13, 1989

BACKGROUND:

A member of the Public Employees' Retirement System Plan I (PERS I) (first employed prior to October 1, 1977) earns a month of service when employed by an employer, as defined under PERS, for 70 or more hours per month in an eligible position (i.e., any position which normally requires five or more uninterrupted months of service a year for which regular compensation is paid).  A member of PERS II (first employed on or after October 1, 1977) earns a month of service when employed by an employer for 90 or more hours per month in an eligible position.

SUMMARY:

The term "eligible position" for the purpose of retirement shall include all work for an employer by an employee except that an employer is not to describe a position in which an employee's work is divided into more than one position.  A person employed by any labor guild, association or organization who had continuous employment from July 1979 through December 1988, and who had regular deductions taken as contribution to PERS for at least eight years for the same employer shall be allowed to establish membership retroactively to the first day of employment in an eligible position.  The person shall receive service credit for the period in which contributions were made.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested

Senate Committee - Testified: Jerry Allard, State Actuary; Karen Davis, Washington Education Association; Bob Randell, Public School Employees