_______________________________________________
HOUSE
BILL 2371
_______________________________________________
Passed
Legislature - 1998 Regular Session
State
of Washington 55th Legislature 1998 Regular Session
By
Read
first time 01/12/98. Referred to Committee on Appropriations.
Creating a medical expense plan for certain retirees.
AN
ACT Relating to a medical expense plan for certain retirees; amending RCW
41.04.340; and creating a new section.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
41.04.340 and 1997 c 232 s 2 are each amended to read as follows:
(1)
An attendance incentive program is established for all eligible employees. As
used in this section the term "eligible employee" means any employee
of the state, other than eligible employees of the community and technical
colleges and the state board for community and technical colleges identified in
RCW 28B.50.553, and teaching and research faculty at the state and regional
universities and The Evergreen State College, entitled to accumulate sick leave
and for whom accurate sick leave records have been maintained. No employee may
receive compensation under this section for any portion of sick leave
accumulated at a rate in excess of one day per month. The state and regional
universities and The Evergreen State College shall maintain complete and
accurate sick leave records for all teaching and research faculty.
(2)
In January of the year following any year in which a minimum of sixty days of
sick leave is accrued, and each January thereafter, any eligible employee may
receive remuneration for unused sick leave accumulated in the previous year at
a rate equal to one day's monetary compensation of the employee for each four
full days of accrued sick leave in excess of sixty days. Sick leave for which
compensation has been received shall be deducted from accrued sick leave at the
rate of four days for every one day's monetary compensation.
(3)
At the time of separation from state service due to retirement or death, an
eligible employee or the employee's estate may elect to receive remuneration at
a rate equal to one day's current monetary compensation of the employee for
each four full days of accrued sick leave.
(4)
((Pursuant to this subsection, in lieu of cash remuneration the state may,
with equivalent funds, provide eligible employees with a benefit plan providing
for reimbursement of medical expenses. The committee for deferred compensation
shall develop any benefit plan established under this subsection, but may offer
and administer the plan only if (a) each eligible employee has the option of
whether to receive cash remuneration or to have his or her employer transfer
equivalent funds to the plan; and (b) the committee has received an opinion
from the United States internal revenue service stating that participating
employees, prior to the time of receiving reimbursement for expenses, will
incur no United States income tax liability on the amount of the equivalent
funds transferred to the plan.
(5)))
Remuneration or benefits received under this section shall not be included for
the purpose of computing a retirement allowance under any public retirement
system in this state.
(((6)
With the exception of subsection (4) of this section)) (5) Except as
provided in subsections (7) through (9) of this section for employees not
covered by chapter 41.06 RCW, this section shall be administered, and rules
shall be adopted to carry out its purposes, by the Washington personnel
resources board for persons subject to chapter 41.06 RCW: PROVIDED, That
determination of classes of eligible employees shall be subject to approval by
the office of financial management.
(((7)))
(6) Should the legislature revoke any remuneration or benefits granted
under this section, no affected employee shall be entitled thereafter to
receive such benefits as a matter of contractual right.
(7)
In lieu of remuneration for unused sick leave at retirement as provided in
subsection (3) of this section, an agency head or designee may with equivalent
funds, provide eligible employees with a benefit plan that provides for
reimbursement for medical expenses. This plan shall be implemented only after
consultation with affected groups of employees. For eligible employees covered
by chapter 41.06 RCW, procedures for the implementation of these plans shall be
adopted by the Washington personnel resources board. For eligible employees
exempt from chapter 41.06 RCW, and classified employees who have opted out of
coverage of chapter 41.06 RCW as provided in RCW 41.56.201, implementation
procedures shall be adopted by an agency head having jurisdiction over the
employees.
(8)
Implementing procedures adopted by the Washington personnel resources board or
agency heads shall require that each medical expense plan authorized by
subsection (7) of this section apply to all eligible employees in any one of
the following groups: (a) Employees in an agency; (b) employees in a major
organizational subdivision of an agency; (c) employees at a major operating
location of an agency; (d) exempt employees under the jurisdiction of an
elected or appointed Washington state executive; (e) Employees of the
Washington state senate; (f) employees of the Washington state house of
representatives; (g) classified employees in a bargaining unit established by
the Washington personnel resources board; or (h) other group of employees
defined by an agency head that is not designed to provide an individual-employee
choice regarding participation in a medical expense plan. However, medical
expense plans for eligible employees in any of the groups under (a) through (h)
of this subsection who are covered by a collective bargaining agreement shall
be implemented only by written agreement with the bargaining unit's exclusive
representative and a separate medical expense plan may be provided for
unrepresented employees.
(9)
Medical expense plans authorized by subsection (7) of this section must require
as a condition of participation in the plan that employees in the group
affected by the plan sign an agreement with the employer. The agreement must
include a provision to hold the employer harmless should the United States
government find that the employer or the employee is in debt to the United
States as a result of the employee not paying income taxes due on the
equivalent funds placed into the plan, or as a result of the employer not
withholding or deducting a tax, assessment, or other payment on the funds as
required by federal law. The agreement must also include a provision that
requires an eligible employee to forfeit remuneration under subsection (3) of
this section if the employee belongs to a group that has been designated to
participate in the medical expense plan permitted under this section and the
employee refuses to execute the required agreement.
NEW
SECTION. Sec. 2. If
any part of RCW 41.04.340 (7) through (9) is found to be in conflict with
federal tax laws or rulings or regulations of the federal internal revenue
service, the conflicting part is inoperative solely to the extent of the
conflict and such a finding shall not affect the remainder of section 1,
chapter . . ., Laws of 1998 (section 1 of this act).
