SENATE BILL REPORT

SB 5027

BYSenators 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 7, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 6, 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:

In both PERS I and PERS II, the necessary hours per month to earn service may be achieved by combining the hours worked for an employer in one or more eligible or ineligible positions.

EFFECT OF PROPOSED SUBSTITUTE:

Clarifying language is added.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested

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