HOUSE BILL REPORT

                  SB 5987

             As Reported By House Committee On:

                       Appropriations

Title:  An act relating to the withdrawal of accumulated contributions under the law enforcement officers' and fire fighters' retirement system.

Brief Description:  Withdrawing accumulated contributions under the law enforcement officers' and fire fighters' retirement system.

Sponsors:  Senators Goings, Benton, Bauer, Hochstatter, Costa, Gardner and Rasmussen.

Brief History:

  Committee Activity:

Appropriations:  4/1/99, 4/5/99 [DP].

                 Brief Summary of Bill

$Changes provisions related to LEOFF 2 withdrawal of member contributions.

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass.  Signed by 31 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; 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:

Members of the Law Enforcement Officers' and Fire Fighters' Retirement System Plan 2 (LEOFF 2) who become totally incapacitated for continued employment are eligible to receive a disability retirement allowance.  The allowance is canceled if the member recovers from the disability and is no longer entitled to workers' compensation benefits.  The statute also provides that a member who has recovered from a disability shall be restored to duty.

LEOFF 2 members are entitled to a refund of their accumulated member contributions if they cease to be an employee of a LEOFF employer, except by service or disability retirement.  A LEOFF 2 member who leaves employment due to a disability retirement, but is not re-employed upon recovery from the disability, is not able to receive a refund of the difference between the disability payments received and the member's total accumulated contributions.

Summary of Bill:

If the disability retirement allowance of a LEOFF 2 member is canceled for any reason other than the member's re-entry into employment or retirement for service, the member must be paid the excess, if any, of the member's accumulated contributions over all previous LEOFF 2 payments.  The bill applies to any LEOFF 2 member who received a disability allowance after February 1, 1990.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  The need for this bill arose from circumstances of a fire fighter who received a disability allowance and then recovered.  His former employer would not rehire him, but he can't get his contributions back.

Testimony Against:  None.

Testified:  Jim Rudd, Washington State Council of Fire Fighters.