AN ACT Relating to early retirement under the public employees' retirement system for affected employees of specific state agencies specifically designated for a reduction in staffing; adding a new chapter to Title 41 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature declares that if it becomes necessary for significant downsizing in a state facility, whether for fiscal reasons, obsolescence, or other extraordinary reasons, the state has a responsibility to provide certain benefits to affected employees.

It is the purpose of this chapter to establish an economic impact act for the state of Washington to meet the emergency situation in existence for state employees affected by the significant downsizing of state facilities.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Significant downsizing of a state facility" means those state agencies, or divisions or programs within an agency, specifically designated by the legislature for a reduction in staffing under section 3 of this act.

(2) "Affected employees" includes those persons who are members of the public employees' retirement system performing services for the state on a salaried or hourly basis including, but not limited to, persons in classified service as defined in RCW 41.06.020(3) and those persons defined as exempt from the state civil service laws under RCW 41.06.070 employed by the agencies, or divisions of agencies, under section 3 of this act on the effective date of this act.

NEW SECTION. Sec. 3. For the period ending June 30, 2001, those agencies designated for a reduction in staffing include:

(1) The department of transportation, limited to affected employees working in programs I, P, Q, W, and X; and

(2) The department of social and health services, limited to affected employees working within the economic services administration, the developmental disabilities division of the health and rehabilitative services administration, and the juvenile rehabilitation administration.

NEW SECTION. Sec. 4. In order to carry out the purposes of this chapter, the state shall take every reasonable step at its disposal to provide alternative employment and to minimize the economic loss of state employees affected by the significant downsizing of a state facility. Affected state employees shall be provided benefits as specified in this section.

As an option for leaving state employment an affected employee may elect early retirement under the following conditions:

(1) Notwithstanding the age requirements of RCW 41.40.180, any affected employee under this chapter who is a member of the public employees' retirement system, plan 1 and has: (a) Attained the age of fifty-five years, and completed five service credit years of service; (b) completed twenty-five service credit years; or (c) attained the age of fifty years and completed twenty service credit years of service is immediately eligible to retire, with no actuarial reduction in the amount of the member's pension benefit.

(2) Notwithstanding the age requirements of RCW 41.40.630, any affected employee under this chapter who is a member of the public employees' retirement system, plan 2 and has attained the age of fifty-five years, with at least fifteen years creditable service, is immediately eligible to retire with an actuarial reduction in the amount of the member's pension benefit of two percent for each complete year that the employee is under sixty-five years of age.

NEW SECTION. Sec. 5. For the period ending December 31, 2000, members of the public employees retirement system who are employed by a transit district, and were employed by the district on November 1, 1999, shall be eligible for the early retirement options provided by section 4 of this act. A member wishing to retire pursuant to this section must provide written notification to the member's employer, and submit the required application form to the department of retirement systems, no later than August 31, 2000, setting forth that the member shall be retired no later than December 31, 2000.

NEW SECTION. Sec. 6. In order to assure that the state derives the expected benefits from the early retirement provisions of this chapter, no state agency may engage through personal service contracts persons who retire from state service under the provisions of this chapter. Exceptions to this section may be granted by written approval from the director of financial management, if the director finds that the temporary or project employment of a retiree is necessary to protect the public safety, protect against the loss of federal certification or loss of critical federal funds, or carry out functions so essential to the agency that even temporary suspension or delay of services would have a significant impact on the public. At the end of each three-month period in which exceptions are approved, the director shall forward a copy of any approvals, together with justification for the exceptions, to the fiscal committees of the legislature. Each forwarded approval shall include the name of the temporary or project employee, the agency and division or department requesting the employment, duration and cost of the proposed employment, and specific functions and duties to be carried out during the employment.

NEW SECTION. Sec. 7. In order to assure that the state derives the expected benefits from the early retirement provisions of this chapter, no state agency may hire persons who retire from state service under the provisions of this chapter as temporary or project employees, as defined by the state personnel board for employees covered under chapter 41.06 RCW. Exceptions to this section may be granted by written approval from the director of financial management, if the director finds that the temporary or project employment of a retiree is necessary to protect the public safety, protect against the loss of federal certification or loss of critical federal funds, or carry out functions so essential to the agency that even temporary suspension or delay of services would have a significant impact on the public. At the end of each three-month period in which exceptions are approved, the director shall forward a copy of any approvals, together with justification for the exceptions, to the fiscal committees of the legislature. Each forwarded approval shall include the name of the temporary or project employee, the agency and division or department requesting the employment, duration and cost of the proposed employment, and specific functions and duties to be carried out during the employment.

NEW SECTION. Sec. 8. 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.

NEW SECTION. Sec. 9. Sections 1 through 8 of this act constitute a new chapter in Title 41 RCW.