S-0731.1 _______________________________________________
SENATE BILL 5655
_______________________________________________
State of Washington 55th Legislature 1997 Regular Session
By Senators Winsley, Bauer, Swecker and Jacobsen
Read first time 02/05/97. Referred to Committee on Ways & Means.
AN ACT Relating to conversion to the standard retirement allowance when spouse beneficiaries of the reduced retirement allowance have died; and amending RCW 41.26.460, 41.32.530, 41.32.785, 41.40.188, and 41.40.660.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 41.26.460 and 1996 c 175 s 3 are each amended to read as follows:
(1) Upon retirement for service as prescribed in RCW 41.26.430 or disability retirement under RCW 41.26.470, a member shall elect to have the retirement allowance paid pursuant to the following options, calculated so as to be actuarially equivalent to each other.
(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. However, if the retiree dies before the total of the retirement allowance paid to such retiree equals the amount of such retiree's accumulated contributions at the time of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the retiree shall have nominated by written designation duly executed and filed with the department; or if there be no such designated person or persons still living at the time of the retiree's death, then to the surviving spouse; or if there be neither such designated person or persons still living at the time of death nor a surviving spouse, then to the retiree's legal representative.
(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a designated person. Such person shall be nominated by the member by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.
(2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection. If a member is married and both the member and member's spouse do not give written consent to an option under this section, the department will pay the member a joint and fifty percent survivor benefit and record the member's spouse as the beneficiary. Such benefit shall be calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.
(b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:
(i) The department shall honor the designation as if made by the member under subsection (1) of this section; and
(ii) The spousal consent provisions of (a) of this subsection do not apply.
(3)(a) Any member who retired before January 1, 1996, and who elected to receive a reduced retirement allowance under subsection (1)(b) of this section is entitled to receive a retirement allowance equal to the standard allowance, adjusted for any cost-of-living or other postretirement adjustments made to the original allowance since the effective date of retirement, if:
(i) The retiree designated the retiree's spouse as beneficiary under the reduced retirement allowance option;
(ii) The retiree's spouse has predeceased the retiree; and
(iii) The retiree gives written notice to the department of the retiree's election to convert to the standard allowance under this subsection.
(b) Any retiree eligible for a conversion to the standard benefit payment level under (a) of this subsection on the effective date of this act, based on the death of a spouse prior to the effective date of this act, may file a notice with the department requesting payment of the standard allowance that is effective beginning the first full month after the effective date of this act.
Sec. 2. RCW 41.32.530 and 1996 c 175 s 4 are each amended to read as follows:
(1) Upon an application for retirement for service under RCW 41.32.480 or retirement for disability under RCW 41.32.550, approved by the department, every member shall receive the maximum retirement allowance available to him or her throughout life unless prior to the time the first installment thereof becomes due he or she has elected, by executing the proper application therefor, to receive the actuarial equivalent of his or her retirement allowance in reduced payments throughout his or her life with the following options:
(a) Standard allowance. If he or she dies before he or she has received the present value of his or her accumulated contributions at the time of his or her retirement in annuity payments, the unpaid balance shall be paid to his or her estate or to such person, trust, or organization as he or she shall have nominated by written designation executed and filed with the department.
(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a person who has an insurable interest in the member's life. Such person shall be nominated by the member by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.
(c)
Such other benefits shall be paid to a member receiving a retirement allowance
under RCW 41.32.497 as the member may designate for himself, herself, or others
equal to the actuarial value of his or her retirement annuity at the time of
his or her retirement: PROVIDED, That the ((board of trustees)) department
shall limit withdrawals of accumulated contributions to such sums as will not
reduce the member's retirement allowance below one hundred and twenty dollars
per month.
(d) A member whose retirement allowance is calculated under RCW 41.32.498 may also elect to receive a retirement allowance based on options available under this subsection that includes the benefit provided under RCW 41.32.770. This retirement allowance option shall also be calculated so as to be actuarially equivalent to the maximum retirement allowance and to the options available under this subsection.
(2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection. If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department will pay the member a joint and fifty percent survivor benefit and record the member's spouse as the beneficiary. Such benefit shall be calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.
(b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:
(i) The department shall honor the designation as if made by the member under subsection (1) of this section; and
(ii) The spousal consent provisions of (a) of this subsection do not apply.
(3)(a) Any member who retired before January 1, 1996, and who elected to receive a reduced retirement allowance under subsection (1)(b) of this section is entitled to receive a retirement allowance equal to the standard allowance, adjusted for any cost-of-living or other postretirement adjustments made to the original allowance since the effective date of retirement, if:
(i) The retiree designated the retiree's spouse as beneficiary under the reduced retirement allowance option;
(ii) The retiree's spouse has predeceased the retiree; and
(iii) The retiree gives written notice to the department of the retiree's election to convert to the standard allowance under this subsection.
(b) Any retiree eligible for a conversion to the standard benefit payment level under (a) of this subsection on the effective date of this act, based on the death of a spouse prior to the effective date of this act, may file a notice with the department requesting payment of the standard allowance that is effective beginning the first full month after the effective date of this act.
Sec. 3. RCW 41.32.785 and 1996 c 175 s 5 are each amended to read as follows:
(1) Upon retirement for service as prescribed in RCW 41.32.765 or retirement for disability under RCW 41.32.790, a member shall elect to have the retirement allowance paid pursuant to the following options, calculated so as to be actuarially equivalent to each other.
(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. However, if the retiree dies before the total of the retirement allowance paid to such retiree equals the amount of such retiree's accumulated contributions at the time of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the retiree shall have nominated by written designation duly executed and filed with the department; or if there be no such designated person or persons still living at the time of the retiree's death, then to the surviving spouse; or if there be neither such designated person or persons still living at the time of death nor a surviving spouse, then to the retiree's legal representative.
(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a designated person. Such person shall be nominated by the member by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.
(2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection. If a member is married and both the member and member's spouse do not give written consent to an option under this section, the department will pay the member a joint and fifty percent survivor benefit and record the member's spouse as the beneficiary. Such benefit shall be calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.
(b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:
(i) The department shall honor the designation as if made by the member under subsection (1) of this section; and
(ii) The spousal consent provisions of (a) of this subsection do not apply.
(3)(a) Any member who retired before January 1, 1996, and who elected to receive a reduced retirement allowance under subsection (1)(b) of this section is entitled to receive a retirement allowance equal to the standard allowance, adjusted for any cost-of-living or other postretirement adjustments made to the original allowance since the effective date of retirement, if:
(i) The retiree designated the retiree's spouse as beneficiary under the reduced retirement allowance option;
(ii) The retiree's spouse has predeceased the retiree; and
(iii) The retiree gives written notice to the department of the retiree's election to convert to the standard allowance under this subsection.
(b) Any retiree eligible for a conversion to the standard benefit payment level under (a) of this subsection on the effective date of this act, based on the death of a spouse prior to the effective date of this act, may file a notice with the department requesting payment of the standard allowance that is effective beginning the first full month after the effective date of this act.
Sec. 4. RCW 41.40.188 and 1996 c 175 s 6 are each amended to read as follows:
(1) Upon retirement for service as prescribed in RCW 41.40.180 or retirement for disability under RCW 41.40.210 or 41.40.230, a member shall elect to have the retirement allowance paid pursuant to one of the following options calculated so as to be actuarially equivalent to each other.
(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. However, if the retiree dies before the total of the retirement allowance paid to such retiree equals the amount of such retiree's accumulated contributions at the time of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the retiree shall have nominated by written designation duly executed and filed with the department; or if there be no such designated person or persons still living at the time of the retiree's death, then to the surviving spouse; or if there be neither such designated person or persons still living at the time of death nor a surviving spouse, then to the retiree's legal representative.
(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a person nominated by the member by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.
(c) A member may elect to include the benefit provided under RCW 41.40.640 along with the retirement options available under this section. This retirement allowance option shall be calculated so as to be actuarially equivalent to the options offered under this subsection.
(2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection. If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department shall pay a joint and fifty percent survivor benefit calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.
(b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:
(i) The department shall honor the designation as if made by the member under subsection (1) of this section; and
(ii) The spousal consent provisions of (a) of this subsection do not apply.
(3)(a) Any member who retired before January 1, 1996, and who elected to receive a reduced retirement allowance under subsection (1)(b) of this section is entitled to receive a retirement allowance equal to the standard allowance, adjusted for any cost-of-living or other postretirement adjustments made to the original allowance since the effective date of retirement, if:
(i) The retiree designated the retiree's spouse as beneficiary under the reduced retirement allowance option;
(ii) The retiree's spouse has predeceased the retiree; and
(iii) The retiree gives written notice to the department of the retiree's election to convert to the standard allowance under this subsection.
(b) Any retiree eligible for a conversion to the standard benefit payment level under (a) of this subsection on the effective date of this act, based on the death of a spouse prior to the effective date of this act, may file a notice with the department requesting payment of the standard allowance that is effective beginning the first full month after the effective date of this act.
Sec. 5. RCW 41.40.660 and 1996 c 175 s 7 are each amended to read as follows:
(1) Upon retirement for service as prescribed in RCW 41.40.630 or retirement for disability under RCW 41.40.670, a member shall elect to have the retirement allowance paid pursuant to one of the following options, calculated so as to be actuarially equivalent to each other.
(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. However, if the retiree dies before the total of the retirement allowance paid to such retiree equals the amount of such retiree's accumulated contributions at the time of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the retiree shall have nominated by written designation duly executed and filed with the department; or if there be no such designated person or persons still living at the time of the retiree's death, then to the surviving spouse; or if there be neither such designated person or persons still living at the time of death nor a surviving spouse, then to the retiree's legal representative.
(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a person nominated by the member by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.
(2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection. If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department shall pay a joint and fifty percent survivor benefit calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.
(b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:
(i) The department shall honor the designation as if made by the member under subsection (1) of this section; and
(ii) The spousal consent provisions of (a) of this subsection do not apply.
(3)(a) Any member who retired before January 1, 1996, and who elected to receive a reduced retirement allowance under subsection (1)(b) of this section is entitled to receive a retirement allowance equal to the standard allowance, adjusted for any cost-of-living or other postretirement adjustments made to the original allowance since the effective date of retirement, if:
(i) The retiree designated the retiree's spouse as beneficiary under the reduced retirement allowance option;
(ii) The retiree's spouse has predeceased the retiree; and
(iii) The retiree gives written notice to the department of the retiree's election to convert to the standard allowance under this subsection.
(b) Any retiree eligible for a conversion to the standard benefit payment level under (a) of this subsection on the effective date of this act, based on the death of a spouse prior to the effective date of this act, may file a notice with the department requesting payment of the standard allowance that is effective beginning the first full month after the effective date of this act.
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