HOUSE BILL REPORT

                  SB 5432

             As Reported By House Committee On:

                       Appropriations

Title:  An act relating to authorizing deductions from retirement allowances for charitable purposes.

Brief Description:  Authorizing charitable deductions from retirement allowances.

Sponsors:  Senators Fraser, Winsley, Fairley, Hale, Long, Heavey, Franklin, Rasmussen, Prentice, Costa, Jacobsen, Bauer and Kohl‑Welles.

Brief History:

  Committee Activity:

Appropriations:  3/29/99, 4/5/99 [DP].

                 Brief Summary of Bill

$Permits PERS retirees to authorize charitable deductions from their retirement allowances.

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass.  Signed by 32 members:  Representatives Huff, Republican Co-Chair; H. Sommers, Democratic Co-Chair; Alexander, Republican Vice Chair; Doumit, Democratic Vice Chair; D. Schmidt, Republican Vice Chair; Barlean; Benson; Boldt; Carlson; Clements; Cody; Crouse; Gombosky; Grant; Kagi; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McIntire; McMorris; Mulliken; Parlette; Regala; Rockefeller; Ruderman; Sullivan; Tokuda and Wensman.

Staff:  Denise Graham (786-7137).

Background:

Under current law, state employees may arrange through the annual state Combined Fund Drive to have payments deducted from their pay for contributions to various charitable organizations.  However, the retirement allowances paid by the Public Employees' Retirement System (PERS) may not be assigned by the retiree, except pursuant to certain specific statutory exceptions.  This general restriction prevents PERS retirees from being able to authorize automatic deductions to charitable organizations.

Summary of Bill:

A PERS retiree or beneficiary is permitted to authorize deductions for charitable purposes on the same terms as employees who participate in the state Combined Fund Drive.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Currently, when state employees retire, they cannot have charitable contributions deducted directly from their retirement checks.  This bill would allow them to continue to contribute to the state's Combined Fund Drive.

Testimony Against:  None.

Testified:  Chris Loftis, United Way; and Joe Beck, Retired Public Employees.