H-3540.2  _______________________________________________

 

                          HOUSE BILL 2727

          _______________________________________________

 

State of Washington      56th Legislature     2000 Regular Session

 

By Representatives Romero, Dickerson, McIntire, Fortunato, Veloria, Kenney and Santos

 

Read first time 01/19/2000.  Referred to Committee on Appropriations.

Pertaining to public employee benefits and work schedules.


    AN ACT Relating to public employee benefits and work schedules; amending RCW 41.40.180, 41.40.630, 41.26.190, 41.26.520, 41.32.260, 41.32.810, 41.32.865, 41.35.470, 41.35.650, 41.40.170, 41.40.710, 43.43.260, and 43.43.130; adding a new chapter to Title 41 RCW; creating new sections; and providing an effective date.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

                              PART I

                   RETIREMENT INCENTIVE PROGRAMS

 

    NEW SECTION.  Sec. 1.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Employer" means the state of Washington, counties, cities, towns, or any other political subdivision, whose employees are members of a retirement system enumerated under RCW 41.50.030.

    (2) "Early retirement" means the authorization under this chapter of temporary retirement eligibility under the retirement systems enumerated under RCW 41.50.030.

    (3) "Eligible position" means a position that conforms to the requirements for membership in a retirement system enumerated under RCW 41.50.030, or a retirement system provided by the cities of Seattle, Spokane, or Tacoma.

    (4) "Normal retirement" means that retirement, based on service or service and age, of a member of a retirement system where the full retirement allowance is provided.

 

    NEW SECTION.  Sec. 2.  An employer may temporarily utilize a retirement incentive program as provided in section 3(1) of this act if it has encountered or will be encountering one or more of the following emergent and compelling conditions:

    (1) A significant reduction in force due to either (a) budgetary or other fiscal adjustments or (b) significant personnel restructuring;

    (2) The closure of one or more of its facilities; and

    (3) The privatization of one or more of its agencies or services it provides.

 

    NEW SECTION.  Sec. 3.  (1)  An employer may offer, adhering to all laws or regulations of the state or federal government:

    (a) Retirement, without reduction in the retirement allowance, to those targeted employees who are within five years of normal retirement;

    (b) Retirement, with full actuarial reduction of the retirement allowance, to other targeted employees more distant to normal retirement eligibility; and

    (c) Other incentives the agency or political subdivision deems appropriate, including incentives to those already eligible to retire on normal retirement.

    (2) The employer providing early retirement as a part of a retirement incentive program under subsection (1)(a) or (b) of this section shall be required to pay the full actuarial present value of any increase in the cost to the respective retirement system or systems resulting from persons taking such early retirement.  Such payment must be made to the department of retirement systems within ninety calendar days after the closure of the early retirement program.

 

    NEW SECTION.  Sec. 4.  Upon notification by a political subdivision, the director of retirement systems shall, within fifteen calendar days of such receipt, inform the certified or requesting employer of the procedures and reporting necessary to carry out any retirement incentive program.

 

    Sec. 5.  RCW 41.40.180 and 1982 1st ex.s. c 52 s 21 are each amended to read as follows:

    (1) Any member with five years of creditable service who has attained age sixty and any original member who has attained age sixty may retire on written application to the director, setting forth at what time the member desires to be retired:  PROVIDED, That in the national interest, during time of war engaged in by the United States, the director may extend beyond age sixty, subject to the provisions of subsection (2) of this section, the age at which any member may be eligible to retire.

    (2) Any member who has completed thirty years of service may retire on written application to the director setting forth at what time the member desires to be retired, subject to war measures.

    (3) Any member who has completed twenty-five years of service and attained age fifty-five may retire on written application to the director setting forth at what time the member desires to be retired, subject to war measures.

    (4) Any individual who is eligible to retire pursuant to subsections (1) through (3) of this section shall be allowed to retire while on any authorized leave of absence not in excess of one hundred and twenty days.

    (5) Subsections (1) through (3) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

 

    Sec. 6.  RCW 41.40.630 and 1991 c 343 s 11 are each amended to read as follows:

    (1) NORMAL RETIREMENT.  Any member with at least five service credit years who has attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.620.

    (2) EARLY RETIREMENT.  Any member who has completed at least twenty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.620, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

    (3) Subsections (1) and (2) of this section may be temporarily superseded by the provisions of a certified retirement incentive program initiated under section 3 of this act.

 

                              PART II

                FLEXIBLE-TIME WORK SCHEDULES REVIEW

 

    NEW SECTION.  Sec. 7.  The legislature finds that flexible-time work schedules, which provide varying times for employees to arrive at and depart from work, tend to alleviate traffic congestion during peak rush hour periods and thereby reduce hazardous traffic conditions; provide more efficient use of highways and other transit facilities; and decrease fuel consumption.  In addition, the legislature finds that flexible-time work schedules provide families in which both parents work outside of the home with the flexibility necessary to provide for day care; provide employees with flexibility allowing them to spend more time with their families; and improve employee morale and, in so doing, improve productivity.

    Under RCW 41.04.390 each agency is to prepare a flexible-time work schedule or schedules and is to offer the schedule or schedules to employees as an option to the traditional workday.  Each agency shall review its flexible-time work schedule or schedules and shall submit to the office of financial management by September 1, 2000, their flexible-time work schedule or schedules.  In addition each agency shall report to the office the number of employees utilizing a flexible-time work schedule and what this represents as a percent of their total employees.  Each agency shall also report any difficulties in administering its flexible-time work schedule or schedules.  The office shall perform an analysis of flexible-time work schedules and report to the legislature by December 7, 2000, any agencies that do not offer a flexible-time work schedule.  In addition the office shall rank the agencies in the percent of their employees utilizing a flexible-time work schedule and categorize any reported difficulties in administering flexible-time work schedules.

 

                             PART III

                  CREDIT FOR PEACE CORPS SERVICE

 

    NEW SECTION.  Sec. 8.  For the purposes of sections 9 through 18 of this act, "americorps" means the service organization founded under the national and community service trust act of 1993, and includes volunteers in service to America.

 

    Sec. 9.  RCW 41.26.190 and 1991 c 35 s 26 are each amended to read as follows:

    Each person affected by this chapter who at the time of entering the armed services, peace corps, or americorps was a member of this system, and has honorably served in the armed services of the United States, peace corps, or americorps shall have added to the period of service as computed under this chapter, the period of service in the armed forces, peace corps, or americorps:  PROVIDED, That such credited service shall not exceed five years.

 

    Sec. 10.  RCW 41.26.520 and 1996 c 61 s 1 are each amended to read as follows:

    (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.26.410 through 41.26.550.

    (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The basic salary reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

    (3) Except as specified in subsection (6) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if the member makes the employer, member, and state contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner.

    (4) If a member fails to meet the time limitations of subsection (3) of this section, the member may receive a maximum of two years of service credit during a member's working career for those periods when a member is on unpaid leave of absence authorized by an employer.  This may be done by paying the amount required under RCW 41.50.165(2) prior to retirement.

    (5) For the purpose of subsection (3) of this section the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW 41.26.450.  The contributions required shall be based on the average of the member's basic salary at both the time the authorized leave of absence was granted and the time the member resumed employment.

    (6) A member who leaves the employ of an employer to enter the armed forces, peace corps, or americorps of the United States shall be entitled to retirement system service credit for up to five years of military, peace corps, or americorps service.  This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

    (a) The member qualifies for service credit under this subsection if:

    (i) Within ninety days of the member's honorable discharge from the United States armed forces or separation from the peace corps or americorps, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces, peace corps, or americorps; and

    (ii) The member makes the employee contributions required under RCW 41.26.450 within five years of resumption of service or prior to retirement, whichever comes sooner; or

    (iii) Prior to retirement and not within ninety days of the member's honorable discharge or separation from the peace corps or americorps or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

    (b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall establish the member's service credit and shall bill the employer and the state for their respective contributions required under RCW 41.26.450 for the period of military, peace corps, or americorps service, plus interest as determined by the department.

    (c) The contributions required under (a)(ii) of this subsection shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave or began service in the peace corps or americorps.

    (7) A member receiving benefits under Title 51 RCW who is not receiving benefits under this chapter shall be deemed to be on unpaid, authorized leave of absence.

 

    Sec. 11.  RCW 41.32.260 and 1992 c 212 s 8 are each amended to read as follows:

    Any member whose public school service is interrupted by active service to the United States as a member of its military, naval or air service, peace corps, or americorps, or to the state of Washington((,)) as a member of the legislature, may upon becoming reemployed in the public schools, receive credit for that service upon presenting satisfactory proof, and contributing to the member reserve, either in a lump sum or installments, amounts  determined by the director.  Except that no military, peace corps, or americorps service credit in excess of five years shall be established or reestablished after July 1, 1961, unless the service was actually rendered during time of war.

 

    Sec. 12.  RCW 41.32.810 and 1996 c 61 s 2 are each amended to read as follows:

    (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.32.755 through 41.32.825.

    (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

    (3) Except as specified in subsection (6) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if the member makes both the employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner.

    (4) If a member fails to meet the time limitations of subsection (3) of this section, the member may receive a maximum of two years of service credit during a member's working career for those periods when a member is on unpaid leave of absence authorized by an employer.  This may be done by paying the amount required under RCW 41.50.165(2) prior to retirement.

    (5) For the purpose of subsection (3) of this section, the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW 41.32.775.  The contributions required shall be based on the average of the member's earnable compensation at both the time the authorized leave of absence was granted and the time the member resumed employment.

    (6) A member who leaves the employ of an employer to enter the armed forces, peace corps, or americorps of the United States shall be entitled to retirement system service credit for up to five years of military, peace corps, or americorps service.  This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

    (a) The member qualifies for service credit under this subsection if:

    (i) Within ninety days of the member's honorable discharge from the United States armed forces or separation from the peace corps or americorps, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces, peace corps, or americorps; and

    (ii) The member makes the employee contributions required under RCW 41.32.775 within five years of resumption of service or prior to retirement, whichever comes sooner; or

    (iii) Prior to retirement and not within ninety days of the member's honorable discharge or separation from the peace corps or americorps or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

    (b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall establish the member's service credit and shall bill the employer for its contribution required under RCW 41.32.775 for the period of military, peace corps, or americorps service, plus interest as determined by the department.

    (c) The contributions required under (a)(ii) of this subsection shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave or began service in the peace corps or americorps.

 

    Sec. 13.  RCW 41.32.865 and 1996 c 61 s 3 are each amended to read as follows:

    (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit.

    (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

    (3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if:

    (a) The member makes the contribution on behalf of the employer, plus interest, as determined by the department; and

    (b) The member makes the employee contribution, plus interest, as determined by the department, to the defined contribution portion.

    The contributions required shall be based on the average of the member's earnable compensation at both the time the authorized leave of absence was granted and the time the member resumed employment.

    (4) A member who leaves the employ of an employer to enter the armed forces, peace corps, or americorps of the United States shall be entitled to retirement system service credit for up to five years of military, peace corps, or americorps service if within ninety days of the member's honorable discharge from the United States armed forces or separation from the peace corps or americorps, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces, peace corps, or americorps.  This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

    The department shall establish the member's service credit and shall bill the employer for its contribution required under chapter 239, Laws of 1995 for the period of military, peace corps, or americorps service, plus interest as determined by the department.  Service credit under this subsection may be obtained only if the member makes the employee contribution to the defined contribution portion as determined by the department.

    The contributions required shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave or began service in the peace corps or americorps.

 

    Sec. 14.  RCW 41.35.470 and 1998 c 341 s 108 are each amended to read as follows:

    (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.35.400 through 41.35.599.

    (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The compensation earnable reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

    (3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if:

    (a) The member makes both the plan II employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner; or

    (b) If not within five years of resumption of service but prior to retirement, pay the amount required under RCW 41.50.165(2).

    The contributions required under (a) of this subsection shall be based on the average of the member's compensation earnable at both the time the authorized leave of absence was granted and the time the member resumed employment.

    (4) A member who leaves the employ of an employer to enter the armed forces, peace corps, or americorps of the United States shall be entitled to retirement system service credit for up to five years of military,  peace corps, or americorps service.  This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

    (a) The member qualifies for service credit under this subsection if:

    (i) Within ninety days of the member's honorable discharge from the United States armed forces or separation from the peace corps or americorps, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces, peace corps, or americorps; and

    (ii) The member makes the employee contributions required under RCW 41.35.430 within five years of resumption of service or prior to retirement, whichever comes sooner; or

    (iii) Prior to retirement and not within ninety days of the member's honorable discharge or separation from the peace corps or americorps or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

    (b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall establish the member's service credit and shall bill the employer for its contribution required under RCW 41.35.430 for the period of military, peace corps, or americorps service, plus interest as determined by the department.

    (c) The contributions required under (a)(ii) of this subsection shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave or began service in the peace corps or americorps.

 

    Sec. 15.  RCW 41.35.650 and 1998 c 341 s 206 are each amended to read as follows:

    (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit.

    (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

    (3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if:

    (a) The member makes the contribution on behalf of the employer, plus interest, as determined by the department; and

    (b) The member makes the employee contribution, plus interest, as determined by the department, to the defined contribution portion.

    The contributions required shall be based on the average of the member's earnable compensation at both the time the authorized leave of absence was granted and the time the member resumed employment.

    (4) A member who leaves the employ of an employer to enter the armed forces, peace corps, or americorps of the United States shall be entitled to retirement system service credit for up to five years of military, peace corps, or americorps service if within ninety days of the member's honorable discharge from the United States armed forces or separation from the peace corps or americorps, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces, peace corps, or americorps.  This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

    The department shall establish the member's service credit and shall bill the employer for its contribution required under RCW 41.35.720 for the period of military, peace corps, or americorps service, plus interest as determined by the department.  Service credit under this subsection may be obtained only if the member makes the employee contribution to the defined contribution portion as determined by the department.

    The contributions required shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave or began service in the peace corps or americorps.

 

    Sec. 16.  RCW 41.40.170 and 1991 c 35 s 78 are each amended to read as follows:

    (1) A member who has served or shall serve on active federal service in the military ((or)), naval forces, peace corps, or americorps of the United States and who left or shall leave an employer to enter such service shall be deemed to be on military, peace corps, or americorps leave of absence if he or she has resumed or shall resume employment as an employee within one year from termination thereof.

    (2) If he or she has applied or shall apply for reinstatement of employment, within one year from termination of the military, peace corps, or americorps service, and is refused employment for reasons beyond his or her control, he or she shall, upon resumption of service within ten years have such service credited to him or her.

    (3) In any event, after completing twenty-five years of creditable service, any member may have service in the armed forces, peace corps, or americorps credited to him or her as a member whether or not he or she left the employ of an employer to enter the armed service:  PROVIDED, That in no instance, described in this section, shall military, peace corps, or americorps service in excess of five years be credited:  AND PROVIDED FURTHER, That in each instance the member must restore all withdrawn accumulated contributions, which restoration must be completed within five years of membership service following the first resumption of employment or complete twenty-five years of creditable service:  AND PROVIDED FURTHER, That this section will not apply to any individual, not a veteran within the meaning of RCW 41.04.005 or a former member of the peace corps or americorps as defined by federal regulation, as now or hereafter amended:  AND PROVIDED FURTHER, That in no instance, described in this section, shall military service be credited to any member who is receiving full military retirement benefits pursuant to Title 10 United States Code.

 

    Sec. 17.  RCW 41.40.710 and 1996 c 61 s 4 are each amended to read as follows:

    (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.40.610 through 41.40.740.

    (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence.  This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave.  The compensation earnable reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

    (3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer.  Such credit may be obtained only if:

    (a) The member makes both the plan II employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner; or

    (b) If not within five years of resumption of service but prior to retirement, pay the amount required under RCW 41.50.165(2).

    The contributions required under (a) of this subsection shall be based on the average of the member's compensation earnable at both the time the authorized leave of absence was granted and the time the member resumed employment.

    (4) A member who leaves the employ of an employer to enter the armed forces, peace corps, or americorps of the United States shall be entitled to retirement system service credit for up to five years of military, peace corps, or americorps service.  This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

    (a) The member qualifies for service credit under this subsection if:

    (i) Within ninety days of the member's honorable discharge from the United States armed forces or separation from the peace corps or americorps, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces, peace corps, or americorps; and

    (ii) The member makes the employee contributions required under RCW 41.40.650 within five years of resumption of service or prior to retirement, whichever comes sooner; or

    (iii) Prior to retirement and not within ninety days of the member's honorable discharge or separation from the peace corps or americorps or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

    (b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall establish the member's service credit and shall bill the employer for its contribution required under RCW 41.40.650 for the period of military, peace corps, or americorps service, plus interest as determined by the department.

    (c) The contributions required under (a)(ii) of this subsection shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave or began service in the peace corps or americorps.

 

    Sec. 18.  RCW 43.43.260 and 1994 c 197 s 34 are each amended to read as follows:

    Upon retirement from service as provided in RCW 43.43.250, a member shall be granted a retirement allowance which shall consist of:

    (1) A prior service allowance which shall be equal to two percent of the member's average final salary multiplied by the number of years of prior service rendered by the member.

    (2) A current service allowance which shall be equal to two percent of the member's average final salary multiplied by the number of years of service rendered while a member of the retirement system.

    (3) Any member with twenty-five years service in the Washington state patrol may have the member's service in the armed forces, peace corps, or americorps credited as a member whether or not the individual left the employ of the Washington state patrol to enter such armed forces, peace corps, or americorps:  PROVIDED, That in no instance shall military, peace corps, or americorps service in excess of five years be credited:  AND PROVIDED FURTHER, That in each instance, a member must restore all withdrawn accumulated contributions, which restoration must be completed on the date of the member's retirement, or as provided under RCW 43.43.130, whichever occurs first:  AND PROVIDED FURTHER, That this section shall not apply to any individual, not a veteran within the meaning of RCW 41.06.150 or a former member of the peace corps or americorps as defined by federal regulation, as now or hereafter amended:  AND PROVIDED FURTHER, That in no instance shall military, peace corps, or americorps service be credited to any member who is receiving full military retirement benefits pursuant to Title 10 United States Code, as now or hereafter amended.

    (4) In no event shall the total retirement benefits from subsections (1), (2), and (3) of this section, of any member exceed seventy-five percent of the member's average final salary.

    (5) A yearly increase in retirement allowance which shall amount to two percent of the retirement allowance computed at the time of retirement.  This yearly increase shall be added to the retirement allowance on July 1st of each calendar year.

    The provisions of this section shall apply to all members presently retired and to all members who shall retire in the future.

 

    Sec. 19.  RCW 43.43.130 and 1994 c 197 s 33 are each amended to read as follows:

    (1) A Washington state patrol retirement fund is hereby established for members of the Washington state patrol which shall include funds created and placed under the management of a retirement board for the payment of retirement allowances and other benefits under the provisions hereof.

    (2) Any employee of the Washington state patrol, upon date of commissioning, shall be eligible to participate in the retirement plan and shall start contributing to the fund immediately.  Any employee of the Washington state patrol employed by the state of Washington or any of its political subdivisions prior to August 1, 1947, unless such service has been credited in another public retirement or pension system operating in the state of Washington shall receive full credit for such prior service but after that date each new commissioned employee must automatically participate in the fund.  If a member shall terminate service in the patrol and later reenter, he shall be treated in all respects as a new employee.

    (3)(a) A member who reenters or has reentered service within ten years from the date of his termination, shall upon completion of six months of continuous service and upon the restoration of all withdrawn contributions, plus interest as determined by the director, which restoration must be completed within five years after resumption of service, be returned to the status of membership he earned at the time of termination.

    (b) A member who does not meet the time limitations for restoration under (a) of this subsection, may restore the service credit destroyed by the withdrawn contributions by paying the amount required under RCW 41.50.165(2) prior to retirement.

    (4)(a) An employee of the Washington state patrol who becomes a member of the retirement system after June 12, 1980, and who has service as a cadet in the patrol training program may make an irrevocable election to transfer the service to the retirement system.  Any member upon making such election shall have transferred all existing service credited in a prior public retirement system in this state for periods of employment as a cadet.  Transfer of credit under this subsection is contingent on completion of the transfer of funds specified in (b) of this subsection.

    (b) Within sixty days of notification of a member's cadet service transfer as provided in (a) of this subsection, the department of retirement systems shall transfer the employee's accumulated contributions attributable to the periods of service as a cadet, including accumulated interest.

    (5) A member of the retirement system who has served or shall serve on active federal service in the armed forces, peace corps, or americorps of the United States pursuant to and by reason of orders, or permission by competent federal authority, who left or shall leave the Washington state patrol to enter such service, and who within one year from termination of such active federal service, resumes employment as a state employee, shall have his or her service in such armed forces, peace corps, or americorps credited to him or her as a member of the retirement system:  PROVIDED, That no such service in excess of five years shall be credited unless such service was actually rendered during time of war or emergency.

    (6) An active employee of the Washington state patrol who either became a member of the retirement system prior to June 12, 1980, and who has prior service as a cadet in the public employees' retirement system may make an irrevocable election to transfer such service to the retirement system within a period ending June 30, 1985, or, if not an active employee on July 1, 1983, within one year of returning to commissioned service, whichever date is later.  Any member upon making such election shall have transferred all existing service credited in the public employees' retirement system which constituted service as a cadet together with the employee's contributions plus credited interest.  If the employee has withdrawn the employee's contributions, the contributions must be restored to the public employees' retirement system before the transfer of credit can occur and such restoration must be completed within the time limits specified in this subsection for making the elective transfer.

    (7) An active employee of the Washington state patrol who either became a member of the retirement system prior to June 12, 1980, or who has prior service as a cadet in the public employees' retirement system may make an irrevocable election to transfer such service to the retirement system if they have not met the time limitations of subsection (6) of this section by paying the amount required under RCW 41.50.165(2) less the contributions transferred.  Any member upon making such election shall have transferred all existing service credited in the public employees' retirement system that constituted service as a cadet together with the employee's contributions plus credited interest.  If the employee has withdrawn the employee's contributions, the contributions must be restored to the public employees' retirement system before the transfer of credit can occur and such restoration must be completed within the time limits specified in subsection (6) of this section for making the elective transfer.

    (8) An active employee of the Washington state patrol may establish up to six months' retirement service credit in the state patrol retirement system for any period of employment by the Washington state patrol as a cadet if service credit for such employment was not previously established in the public employees' retirement system, subject to the following:

    (a) Certification by the patrol that such employment as a cadet was for the express purpose of receiving on-the-job training required for attendance at the state patrol academy and for becoming a commissioned trooper.

    (b) Payment by the member of employee contributions in the amount of seven percent of the total salary paid for each month of service to be established, plus interest at seven percent from the date of the probationary service to the date of payment.  This payment shall be made by the member no later than July 1, 1988.

    (c) If the payment required under (b) of this subsection was not made by July 1, 1988, the member may establish the probationary service by paying the amount required under RCW 41.50.165(2).

    (d) A written waiver by the member of the member's right to ever establish the same service in the public employees' retirement system at any time in the future.

    (9) The department of retirement systems shall make the requested transfer subject to the conditions specified in subsections (6) and (7) of this section or establish additional credit as provided in subsection (8) of this section.  Employee contributions and credited interest transferred shall be credited to the employee's account in the Washington state patrol retirement system.

 

    NEW SECTION.  Sec. 20.  Sections 1 through 4 of this act constitute a new chapter in Title 41 RCW.

 

    NEW SECTION.  Sec. 21.  Sections 14 and 15 of this act take effect September 1, 2000.

 

    NEW SECTION.  Sec. 22.  Part headings as used in this act constitute no part of the law.

 


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