H-4048              _______________________________________________

                                                   HOUSE BILL NO. 2995

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Brumsickle, Sayan, Holland and Basich

Read first time 1/31/90 and referred to Committee on Appropriations.

AN ACT Relating to retirement from public service; amending RCW 41.32.825 and 41.40.740; creating a new section; and declaring an emergency.

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

NEW SECTION. Sec. 1.     The legislature finds that in the past public employees under the public employees' retirement system plan II and teachers under the teachers' retirement system plan II who had terminated employment, withdrawn their retirement contributions, and subsequently returned to public employment or teaching either did not receive proper notification of the procedure to reinstate their withdrawn contributions or they did not fully understand the limitation on such reinstatement.  Therefore, it is the intent of this act to provide one last opportunity for reinstatement of withdrawn contributions to those who may have not been properly informed or misunderstood the reinstatement procedure.

        Sec. 2.  Section 16, chapter 293, Laws of 1977 ex. sess. as amended by section 2, chapter 117, Laws of 1988 and RCW 41.32.825 are each amended to read as follows:

(1) A member, who had left service and withdrawn the member's accumulated contributions, shall, upon reestablishment of membership under RCW 41.32.240, receive service credit for such prior service if the member restores all withdrawn accumulated contributions together with interest since the time of withdrawal as determined by the department.  The restoration of such funds must be completed within five years of the resumption of service or prior to retirement, whichever occurs first.

(2) Any member, except an elected official, who reentered service and who failed to restore withdrawn contributions, shall now have from the effective date of this 1990 act, through June 30, 1991, to restore the contributions, with interest as determined by the director.

        Sec. 3.  Section 15, chapter 295, Laws of 1977 ex. sess. and RCW 41.40.740 are each amended to read as follows:

(1) A member, who had left service and withdrawn the member's accumulated contributions, shall receive service credit for such prior service if the member restores all withdrawn accumulated contributions together with interest since the time of withdrawal as determined by the department.

          The restoration of such funds must be completed within five years of the resumption of service or prior to retirement, whichever occurs first.

(2) Any member, except an elected official, who reentered service and who failed to restore withdrawn contributions, shall now have from the effective date of this 1990 act, through June 30, 1991, to restore the contributions, with interest as determined by the director.

NEW SECTION. Sec. 4.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.