_______________________________________________
SUBSTITUTE
HOUSE BILL 1024
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AS
AMENDED BY THE SENATE
Passed
Legislature - 1999 Regular Session
State of Washington 56th
Legislature 1999 Regular Session
By
Read first time 02/18/1999.
Providing
a retirement option for certain retirement system members.
AN
ACT Relating to certain retirement system members with more than thirty years
of service; adding a new section to chapter 41.32 RCW; adding new sections to
chapter 41.40 RCW; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 41.32 RCW under the subchapter heading
"Plan 1" to read as follows:
A
member may make the irrevocable election under this section no later than six
months after attaining thirty years of service. The election shall become
effective at the beginning of the calendar month following department receipt
of employee notification.
(1)
The sum of member contributions made for periods of service after the effective
date of the election plus seven and one-half percent interest shall be paid to
the member at retirement without a reduction in the member's monthly retirement
benefit as determined under RCW 41.32.498.
(2)
Upon retirement, the member's benefit shall be calculated using only the
earnable compensation credited prior to the effective date of the member's
election. Calculation of the member's average earnable compensation shall
include eligible cash outs of annual leave based on the member's salary and
leave accumulations at the time of retirement, except that the amount of a
member's average earnable compensation cannot be higher than if the member had
not taken advantage of the election offered under this section.
(3)
Members who have already earned thirty years of service credit prior to the
effective date of this act may participate in the election by notifying the department
in writing of their intention by December 31, 1999.
The
department shall continue to collect employer contributions as required in RCW
41.45.060.
NEW
SECTION. Sec. 2. A
new section is added to chapter 41.40 RCW under the subchapter heading
"Plan 1" to read as follows:
A
member may make the irrevocable election under this section no later than six
months after attaining thirty years of service. The election shall become
effective at the beginning of the calendar month following department receipt
of employee notification.
(1)
The sum of member contributions made for periods of service after the effective
date of the election plus seven and one-half percent interest shall be paid to
the member at retirement without a reduction in the member's monthly retirement
benefit as determined under RCW 41.40.185.
(2)
Upon retirement, the member's benefit shall be calculated using only the
compensation earnable credited prior to the effective date of the member's
election. Calculation of the member's average final compensation shall include
eligible cash outs of sick and annual leave based on the member's salary and
leave accumulations at the time of retirement, except that the amount of a
member's average final compensation cannot be higher than if the member had not
taken advantage of the election offered under this section.
(3)
Members who have already earned thirty years of service credit prior to the
effective date of this act may participate in the election by notifying the
department in writing of their intention by December 31, 1999.
The
department shall continue to collect employer contributions as required in RCW
41.45.060.
NEW
SECTION. Sec. 3. A new
section is added to chapter 41.40 RCW under the subchapter heading "Plan
1" to read as follows:
(1)
A retiree who receives state-funded long-term care services on or after June 1,
1998, is not eligible for the increase provided by section 8, chapter 340, Laws
of 1998, if the increase would make the retiree ineligible for state-funded
long-term care services. For the purposes of this section "state-funded
long-term care services" means a state-funded adult family home, adult
residential care, assisted living, enhanced adult residential care, in-home
care, or nursing home service, as defined in RCW 74.39A.009, for which the
retiree is required to contribute all income other than a specified amount
reserved for the retiree's personal maintenance needs. Retirees who are
subject to this section shall notify the department in writing. The department
has no affirmative duty to identify retirees who are subject to this
subsection.
(2)
This section applies to all payments under section 8, chapter 340, Laws of
1998, made on or after the effective date of this act, regardless of the date
of retirement.
NEW SECTION. Sec. 4.
Section 3 of this act is necessary for the immediate preservation of the public
peace, health, or safety, or support of the state government and its existing
public institutions, and takes effect immediately.
