SENATE BILL REPORT

SB 5684

BYSenator Conner

Transferring retirement credits from out-of-state teacher retirement plans.

Senate Committee on Ways & Means

Senate Hearing Date(s):

Senate Staff:Charles Langen (786-7715)

AS OF FEBRUARY 9, 1989

BACKGROUND:

Members of the Teachers' Retirement System (TRS I) first employed prior to October 1, 1977, may be allowed service credit for out-of-state service as follows:  (1) up to the years earned under TRS I if out-of-state service was established prior to July 1, 1947; (2) not more than four years for a member who establishes or reestablishes out-of-state service subsequent to July 1, 1961; or (3) out-of-state service if earned while the member was on official leave of absence subsequent to July 1, 1964.  Members of the Teachers' Retirement System (TRS II) first employed on or after October 1, 1977, do not receive any out-of- state service credit.

SUMMARY:

Any active member of TRS I or TRS II who has qualified for credit in any out-of-state teacher retirement plan may petition to have out-of-state service credit apply toward membership service.  Teachers must:  (1) agree in writing to pay administration costs and the annuity fund contribution based on the present value of the out-of-state service as determined by the actuary; and (2) submit the petition within two years of the effective date, for members of TRS, or within two years of becoming a member, for teachers not currently members of TRS.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 6, 1989