AN
ACT Relating to options for payment of retirement allowances; amending RCW
41.26.460, 41.32.530, 41.32.785, 41.32.851, 41.35.220, 41.40.188, 41.40.660,
and 43.43.278; creating a new section; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
41.26.460 and 1998 c 340 s 5 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.26.430 or disability
retirement under RCW 41.26.470, a member shall elect to have the retirement
allowance paid pursuant to the following options, calculated so as to be
actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a designated
person. Such person shall be nominated by the member by written designation
duly executed and filed with the department at the time of retirement. The
options adopted by the department shall include, but are not limited to, a
joint and one hundred percent survivor option and a joint and fifty percent
survivor option.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and member's spouse do
not give written consent to an option under this section, the department will
pay the member a joint and fifty percent survivor benefit and record the
member's spouse as the beneficiary. Such benefit shall be calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
(4)
No later than July 1, 2001, the department shall adopt rules that allow a
member additional actuarially equivalent survivor benefit options, and shall
include, but are not limited to:
(a)(i)
A retired member who retired without designating a survivor beneficiary shall
have the opportunity to designate their spouse from a postretirement marriage
as a survivor during a one-year period beginning one year after the date of the
postretirement marriage provided the retirement allowance payable to the
retiree is not subject to periodic payments pursuant to a property division
obligation as provided for in RCW 41.50.670.
(ii)
A member who entered into a postretirement marriage prior to the effective date
of the rules adopted pursuant to this subsection and satisfies the conditions
of (a)(i) of this subsection shall have one year to designate their spouse as a
survivor beneficiary following the adoption of the rules.
(b)
A retired member who elected to receive a reduced retirement allowance under
this section and designated a nonspouse as survivor beneficiary shall have the
opportunity to remove the survivor designation and have their future benefit
adjusted.
(c)
The department may make an additional charge, if necessary, to ensure that the
benefits provided under this subsection remain actuarially equivalent.
Sec.
2. RCW
41.32.530 and 1998 c 340 s 6 are each amended to read as follows:
(1)
Upon an application for retirement for service under RCW 41.32.480 or
retirement for disability under RCW 41.32.550, approved by the department,
every member shall receive the maximum retirement allowance available to him or
her throughout life unless prior to the time the first installment thereof
becomes due he or she has elected, by executing the proper application
therefor, to receive the actuarial equivalent of his or her retirement
allowance in reduced payments throughout his or her life with the following
options:
(a)
Standard allowance. If he or she dies before he or she has received the
present value of his or her accumulated contributions at the time of his or her
retirement in annuity payments, the unpaid balance shall be paid to his or her
estate or to such person, trust, or organization as he or she shall have
nominated by written designation executed and filed with the department.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a person who
has an insurable interest in the member's life. Such person shall be nominated
by the member by written designation duly executed and filed with the
department at the time of retirement. The options adopted by the department
shall include, but are not limited to, a joint and one hundred percent survivor
option and a joint and fifty percent survivor option.
(c)
Such other benefits shall be paid to a member receiving a retirement allowance
under RCW 41.32.497 as the member may designate for himself, herself, or others
equal to the actuarial value of his or her retirement annuity at the time of
his retirement: PROVIDED, That the board of trustees shall limit withdrawals
of accumulated contributions to such sums as will not reduce the member's
retirement allowance below one hundred and twenty dollars per month.
(d)
A member whose retirement allowance is calculated under RCW 41.32.498 may also
elect to receive a retirement allowance based on options available under this
subsection that includes the benefit provided under RCW 41.32.770. This
retirement allowance option shall also be calculated so as to be actuarially
equivalent to the maximum retirement allowance and to the options available
under this subsection.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and the member's spouse
do not give written consent to an option under this section, the department
will pay the member a joint and fifty percent survivor benefit and record the
member's spouse as the beneficiary. Such benefit shall be calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
(4)
No later than July 1, 2001, the department shall adopt rules that allow a
member additional actuarially equivalent survivor benefit options, and shall
include, but are not limited to:
(a)(i)
A retired member who retired without designating a survivor beneficiary shall
have the opportunity to designate their spouse from a postretirement marriage
as a survivor during a one-year period beginning one year after the date of the
postretirement marriage provided the retirement allowance payable to the
retiree is not subject to periodic payments pursuant to a property division
obligation as provided for in RCW 41.50.670.
(ii)
A member who entered into a postretirement marriage prior to the effective date
of the rules adopted pursuant to this subsection and satisfies the conditions
of (a)(i) of this subsection shall have one year to designate their spouse as a
survivor beneficiary following the adoption of the rules.
(b)
A retired member who elected to receive a reduced retirement allowance under
this section and designated a nonspouse as survivor beneficiary shall have the
opportunity to remove the survivor designation and have their future benefit
adjusted.
(c)
The department may make an additional charge, if necessary, to ensure that the
benefits provided under this subsection remain actuarially equivalent.
NEW SECTION. Sec. 3. No
later than July 1, 2000, the department of retirement systems shall allow a
member who: (1) Has attained ninety years of age, and (2) elected to receive a
reduced retirement allowance under RCW 41.32.530 and designated a nonspouse as
survivor beneficiary, the opportunity to remove the survivor designation and
have their future benefit adjusted.
Sec.
4. RCW
41.32.785 and 1998 c 340 s 7 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.32.765 or retirement for
disability under RCW 41.32.790, a member shall elect to have the retirement
allowance paid pursuant to the following options, calculated so as to be
actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a designated
person. Such person shall be nominated by the member by written designation
duly executed and filed with the department at the time of retirement. The
options adopted by the department shall include, but are not limited to, a
joint and one hundred percent survivor option and a joint and fifty percent
survivor option.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and member's spouse do
not give written consent to an option under this section, the department will
pay the member a joint and fifty percent survivor benefit and record the
member's spouse as the beneficiary. Such benefit shall be calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
(4)
No later than July 1, 2001, the department shall adopt rules that allow a
member additional actuarially equivalent survivor benefit options, and shall
include, but are not limited to:
(a)(i)
A retired member who retired without designating a survivor beneficiary shall
have the opportunity to designate their spouse from a postretirement marriage
as a survivor during a one-year period beginning one year after the date of the
postretirement marriage provided the retirement allowance payable to the
retiree is not subject to periodic payments pursuant to a property division
obligation as provided for in RCW 41.50.670.
(ii)
A member who entered into a postretirement marriage prior to the effective date
of the rules adopted pursuant to this subsection and satisfies the conditions
of (a)(i) of this subsection shall have one year to designate their spouse as a
survivor beneficiary following the adoption of the rules.
(b)
A retired member who elected to receive a reduced retirement allowance under
this section and designated a nonspouse as survivor beneficiary shall have the
opportunity to remove the survivor designation and have their future benefit
adjusted.
(c)
The department may make an additional charge, if necessary, to ensure that the
benefits provided under this subsection remain actuarially equivalent.
Sec.
5. RCW
41.32.851 and 1995 c 239 s 108 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.32.875 or retirement for
disability under RCW 41.32.880, a member shall elect to have the retirement
allowance paid pursuant to one of the following options, calculated so as to be
actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. Upon the death of the retired
member, all benefits shall cease.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to such person or
persons as the retiree shall have nominated by written designation duly
executed and filed with the department at the time of retirement. The options
adopted by the department shall include, but are not limited to, a joint and
one hundred percent survivor option and joint and fifty percent survivor
option.
(2)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section. If a member is married and both the
member and the member's spouse do not give written consent to an option under
this section, the department shall pay a joint and fifty percent survivor
benefit calculated to be actuarially equivalent to the benefit options
available under subsection (1) of this section.
(3)
No later than July 1, 2001, the department shall adopt rules that allow a
member additional actuarially equivalent survivor benefit options, and shall
include, but are not limited to:
(a)(i)
A retired member who retired without designating a survivor beneficiary shall
have the opportunity to designate their spouse from a postretirement marriage
as a survivor during a one-year period beginning one year after the date of the
postretirement marriage provided the retirement allowance payable to the
retiree is not subject to periodic payments pursuant to a property division
obligation as provided for in RCW 41.50.670.
(ii)
A member who entered into a postretirement marriage prior to the effective date
of the rules adopted pursuant to this subsection and satisfies the conditions
of (a)(i) of this subsection shall have one year to designate their spouse as a
survivor beneficiary following the adoption of the rules.
(b)
A retired member who elected to receive a reduced retirement allowance under
this section and designated a nonspouse as survivor beneficiary shall have the
opportunity to remove the survivor designation and have their future benefit
adjusted.
(c)
The department may make an additional charge, if necessary, to ensure that the
benefits provided under this subsection remain actuarially equivalent.
Sec.
6. RCW
41.35.220 and 1998 c 341 s 23 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.35.420 or 41.35.680 or
retirement for disability under RCW 41.35.440 or 41.35.690, a member shall
elect to have the retirement allowance paid pursuant to one of the following
options, calculated so as to be actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a person
nominated by the member by written designation duly executed and filed with the
department at the time of retirement. The options adopted by the department
shall include, but are not limited to, a joint and one hundred percent survivor
option and a joint and fifty percent survivor option.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and the member's spouse
do not give written consent to an option under this section, the department
shall pay a joint and fifty percent survivor benefit calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)
No later than July 1, 2001, the department shall adopt rules that allow a
member additional actuarially equivalent survivor benefit options, and shall
include, but are not limited to:
(a)(i)
A retired member who retired without designating a survivor beneficiary shall
have the opportunity to designate their spouse from a postretirement marriage
as a survivor during a one-year period beginning one year after the date of the
postretirement marriage provided the retirement allowance payable to the
retiree is not subject to periodic payments pursuant to a property division
obligation as provided for in RCW 41.50.670.
(ii)
A member who entered into a postretirement marriage prior to the effective date
of the rules adopted pursuant to this subsection and satisfies the conditions
of (a)(i) of this subsection shall have one year to designate their spouse as a
survivor beneficiary following the adoption of the rules.
(b)
A retired member who elected to receive a reduced retirement allowance under
this section and designated a nonspouse as survivor beneficiary shall have the
opportunity to remove the survivor designation and have their future benefit
adjusted.
(c)
The department may make an additional charge, if necessary, to ensure that the
benefits provided under this subsection remain actuarially equivalent.
Sec.
7. RCW
41.40.188 and 1998 c 340 s 8 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.40.180 or retirement for
disability under RCW 41.40.210 or 41.40.230, a member shall elect to have the
retirement allowance paid pursuant to one of the following options calculated
so as to be actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a person
nominated by the member by written designation duly executed and filed with the
department at the time of retirement. The options adopted by the department
shall include, but are not limited to, a joint and one hundred percent survivor
option and a joint and fifty percent survivor option.
(c)
A member may elect to include the benefit provided under RCW 41.40.640 along
with the retirement options available under this section. This retirement
allowance option shall be calculated so as to be actuarially equivalent to the
options offered under this subsection.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and the member's spouse
do not give written consent to an option under this section, the department
shall pay a joint and fifty percent survivor benefit calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
(4)
No later than July 1, 2001, the department shall adopt rules that allow a
member additional actuarially equivalent survivor benefit options, and shall
include, but are not limited to:
(a)(i)
A retired member who retired without designating a survivor beneficiary shall
have the opportunity to designate their spouse from a postretirement marriage
as a survivor during a one-year period beginning one year after the date of the
postretirement marriage provided the retirement allowance payable to the
retiree is not subject to periodic payments pursuant to a property division
obligation as provided for in RCW 41.50.670.
(ii)
A member who entered into a postretirement marriage prior to the effective date
of the rules adopted pursuant to this subsection and satisfies the conditions
of (a)(i) of this subsection shall have one year to designate their spouse as a
survivor beneficiary following the adoption of the rules.
(b)
A retired member who elected to receive a reduced retirement allowance under
this section and designated a nonspouse as survivor beneficiary shall have the
opportunity to remove the survivor designation and have their future benefit
adjusted.
(c) The department may make an additional charge, if necessary,
to ensure that the benefits provided under this subsection remain actuarially
equivalent.
Sec.
8. RCW
41.40.660 and 1998 c 340 s 9 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.40.630 or retirement for
disability under RCW 41.40.670, a member shall elect to have the retirement
allowance paid pursuant to one of the following options, calculated so as to be
actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a person
nominated by the member by written designation duly executed and filed with the
department at the time of retirement. The options adopted by the department
shall include, but are not limited to, a joint and one hundred percent survivor
option and a joint and fifty percent survivor option.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and the member's spouse
do not give written consent to an option under this section, the department
shall pay a joint and fifty percent survivor benefit calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
(4)
No later than July 1, 2001, the department shall adopt rules that allow a
member additional actuarially equivalent survivor benefit options, and shall
include, but are not limited to:
(a)(i)
A retired member who retired without designating a survivor beneficiary shall
have the opportunity to designate their spouse from a postretirement marriage
as a survivor during a one-year period beginning one year after the date of the
postretirement marriage provided the retirement allowance payable to the
retiree is not subject to periodic payments pursuant to a property division
obligation as provided for in RCW 41.50.670.
(ii)
A member who entered into a postretirement marriage prior to the effective date
of the rules adopted pursuant to this subsection and satisfies the conditions
of (a)(i) of this subsection shall have one year to designate their spouse as a
survivor beneficiary following the adoption of the rules.
(b)
A retired member who elected to receive a reduced retirement allowance under
this section and designated a nonspouse as survivor beneficiary shall have the
opportunity to remove the survivor designation and have their future benefit
adjusted.
(c)
The department may make an additional charge, if necessary, to ensure that the
benefits provided under this subsection remain actuarially equivalent.
Sec.
9. RCW
43.43.278 and 1999 c 74 s 4 are each amended to read as follows:
By
July 1, 2000, the department of retirement systems shall adopt rules that allow
a member to select((, in lieu of benefits under RCW 43.43.270,)) an
actuarially equivalent retirement option that pays the member a reduced
retirement allowance and upon death shall be continued throughout the life of a
lawful surviving spouse. The continuing allowance to the lawful surviving
spouse shall be subject to the yearly increase provided by RCW 43.43.260(5) in
lieu of the annual increase provided in RCW 43.43.272. The allowance to the
lawful surviving spouse under this section, and the allowance for an eligible
child or children under RCW 43.43.270, shall not be subject to the limit for
combined benefits under RCW 43.43.270.
NEW SECTION. Sec. 10.
Section 6 of this act takes effect September 1, 2000.
