S-449                 _______________________________________________

                                                   SENATE BILL NO. 5261

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Saling, Rasmussen, Bailey, Gaspard, Rinehart, Wojahn, Conner, Nelson, von Reichbauer, Benitz, Kreidler, Moore, Bauer, Murray, Talmadge, Stratton, Anderson and Vognild

Read first time 1/20/89 and referred to Committee on Ways & Means.

AN ACT Relating to the teachers' retirement system; adding a new section to chapter 41.32 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 41.32 RCW to read as follows:

          (1) Beginning July 1, 1989, and every year thereafter, the department shall determine the following information for the retirement allowance received by each person who established membership in the retirement system on or before September 30, 1977, and who has been retired for at least five years:

          (a) The dollar amount of the minimum retirement allowance as of July 1, 1989;

          (b) The index for the 1987 calendar year, to be known as "index A";

          (c) The index for the calendar year prior to the date of determination, to be known as "index B"; and

          (d) The ratio obtained when index B is divided by index A.

          (2) The value of the ratio obtained shall be the annual adjustment to the retirement allowance and shall be applied beginning with the July payment.  In no event, however, shall the annual adjustment:

          (a) Produce a retirement allowance which is lower than the minimum retirement allowance as of July 1, 1989, or that amount upon retirement after July 1, 1989;

          (b) Exceed three percent in the initial annual adjustment; or

          (c) Differ from the previous year's annual adjustment by more than three percent.

          (3) For the purposes of this section, "index" means, for any calendar year, that year's average consumer price index‑-Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

NEW SECTION. Sec. 2.     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.