SENATE BILL REPORT

SB 5137

BYSenators Johnson, Rasmussen, Smitherman, Nelson, von Reichbauer, Saling, Niemi, Moore, Hayner, Vognild, Warnke and Lee; by request of Joint Committee on Pension Policy

Allowing school nurses to transfer their retirement accounts from city retirement systems to the state teachers' retirement system.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 20, 1989; February 23, 1989

Majority Report:  Do pass.

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

Senate Staff:Charles Langen (786-7715)

                  March 3, 1989

AS PASSED SENATE, MARCH 3, 1989

BACKGROUND:

Prior to the mid-1970s, school nurses in the cities of Seattle, Spokane and Tacoma were members of the respective retirement systems of those cities.  In the mid-70's, these nurses were made members of the Teachers' Retirement System (TRS) but they had the option of keeping their contributions in these city systems.

SUMMARY:

A school nurse who (1) is employed as a school nurse after the effective date; (2) has previously held a position with the public health department in the city of Seattle, Spokane or Tacoma; and (3) has received service credit in the retirement system of one of these cities shall have two options.  First, the nurse may transfer his or her service from the city system to TRS.  Second, if the nurse has withdrawn his or her contributions from the city system, he or she may restore such contributions with interest payable from the date of withdrawal.  Restoration must take place by December 31, 1990.

A specified procedure for making the transfer is outlined, including a requirement for a written declaration of intent by December 31, 1990, and the required actions of the city system and the Department of Retirement Systems (DRS).  If service credit for a period of employment that would have been granted under the provisions of TRS was not given to a member under the city system, the nurse may receive service credit by making both the employer and employee contributions, plus interest, by December 31, 1990.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Karen Davis, WEA; Jerry Allard, State Actuary; Charlene Bonnelycke; Georgie Nupen