BP BHEAD INT H [atlas:bill]

AN ACT Relating to establishing a contribution rate and a postretirement cost-of-living allowance for Washington state patrol retirement system members; and amending RCW 43.43.260 and 43.43.300.

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

Sec. 1. 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 credited as a member whether or not the individual left the employ of the Washington state patrol to enter such armed forces: PROVIDED, That in no instance shall military service in excess of five years be credited: AND PROVIDED FURTHER, That in each instance, a member must restore all withdrawn accumulated contributions, which restoration must be completed on the date of the member's retirement, or as provided under RCW 43.43.130, whichever occurs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, as now or hereafter amended: AND PROVIDED FURTHER, That in no instance shall military 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. Beginning July 1, 2000, and every year thereafter, the department shall determine the following information for each retired member or beneficiary whose retirement allowance has been in effect for at least one year:

(a)(i) The original dollar amount of the retirement allowance; or

(ii) For a retired member or beneficiary whose retirement allowance is in effect on the effective date of this act, the dollar amount on July 1, 2000;

(b) The index for the calendar year prior to the effective date of the retirement allowance, to be known as "index A";

(d) The ratio obtained when index B is divided by index A.

The value of the ratio obtained shall be the annual adjustment to the original retirement allowance and shall be applied beginning with the July payment. In no event, however, shall the annual adjustment:

(i) Produce a retirement allowance which is lower than the original retirement allowance;

(ii) Exceed three percent in the initial annual adjustment; or

(iii) Differ from the previous year's annual adjustment by more than three percent.

For the purposes of this section, "index" means, for any calendar year, that year's average consumer price index‑-Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

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

Sec. 2. RCW 43.43.300 and 1965 c 8 s 43.43.300 are each amended to read as follows:

Beginning on ((~~July 1, 1963~~)) the effective date of this act, every Washington state patrol employee who is a member of the retirement fund shall contribute ((~~seven percent~~)) a percentage of his or her monthly salary that is the same percentage contributed by the employer as determined under chapter 41.45 RCW, with a maximum of seven percent, which shall be deducted from the compensation of each member on each and every payroll.

In event a member severs his or her connection with the Washington state patrol or is dismissed, the amount paid by the state of Washington shall remain in the retirement fund.