HOUSE BILL ANALYSIS
HB 2608
Title: An act relating to the employee attendance incentive program.
Brief Description: Establishing eligibility for the employee attendance incentive program.
Sponsors: Representatives Alexander, Carlson, H. Sommers, Doumit, Delvin, Lambert, Conway, Schoesler, Pflug, Talcott, Clements, Bush and Eickmeyer; by request of Joint Committee on Pension Policy.
Background: School districts may establish, through the collective bargaining process, an attendance incentive program for certificated and classified employees. Although program implementation is optional, certain statutory provisions must be met if such a program is established. Eligible employees may receive one day=s compensation for each four full days of sick leave accrued in the previous year in excess of 60 days. Upon separation from employment due to retirement or death, an employee may also receive one day=s compensation for each four full days of accrued sick leave. In lieu of remuneration for unused sick leave, a school district may provide eligible employees a benefit plan that provides reimbursement for retirees= medical expenses on a pre-tax basis.
Certificated school district employees are members of the Teachers= Retirement System (TRS) Plans 1, 2 and 3. Classified school district employees are members of the Public Employees= Retirement System (PERS) Plans 1 and 2. Beginning September 1, 2000, school district classified employees will be members of PERS Plan 1 and the newly created School Employees= Retirement System (SERS) Plans 2 and 3. Plans 1 and 2 are defined benefit plans. Plan 3 is both a defined benefit and defined contribution plan designed to provide employees greater flexibility to determine retirement age, make career changes, and leave the workforce before retirement.
Members of PERS Plan 1 and TRS Plan 1 may retire with 30 years of service at any age; with 25 years of service at age 55; and with five years of service at age 65. Members of PERS Plan 2, TRS Plan 2, TRS Plan 3, SERS Plan 2 and SERS Plan 3 may receive an unreduced retirement benefit at age 65. Plan 2 members may receive an actuarially reduced benefit if they are at least age 55 and have at least 20 years of service credit. Plan 3 members may receive an actuarially reduced benefit if they are at least age 55 and have at least 10 years of service credit.
State and school district employees who are members of Plans 1 and 2 of PERS and TRS may purchase health benefits from the state Health Care Authority (HCA) upon retirement. Members of Plan 3 of TRS and SERS may purchase health benefits from the HCA if they leave school district employment with at least 10 years of credit and have attained age 55.