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                                                   HOUSE BILL NO. 1093

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State of Washington                               51st Legislature                              1989 Regular Session

By Representative Day

Read first time 1/16/89 and referred to Committee on Appropriations.

AN ACT Relating to employer-paid employee contributions; and amending RCW 41.50.140.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 33, chapter 52, Laws of 1982 1st ex. sess. and RCW 41.50.140 are each amended to read as follows:

          (1) Every employer participating in one or more of the retirement systems listed in RCW 41.50.030 shall fully cooperate in the administration of the systems in which its employees participate, including the distribution of information to employees, and shall accept and carry out all other duties as required by law, regulation, or administrative instruction.

          (2) If an employee is entitled to retroactive service credit which was not previously established through no fault of the employee, or through an employer error which has caused a member's compensation or contributions to be understated or overstated so as to cause a loss to the retirement funds, the director may bill the employer for the loss, to include interest, if applicable.  The employer contributions, with interest thereon, will be treated as if in fact the interest was part of the normal employer contribution and no distribution of interest received shall be required.

          (3) Employer-paid employee contributions will not be credited to a member's account until the employer notifies the director in writing that the employer has been reimbursed by the employee or beneficiary for the payment, unless the underpayment was the result of employer error.  The employer shall have the right to collect from the employee the amount of the employee's obligation, unless the underpayment was the result of employer error.  Failure on the part of the employer to collect all or any part of the sums which may be due from the employee or beneficiary shall in no way cause the employer obligation for the total liability to be lessened.