Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Appropriations Committee

HB 1976

Brief Description:  Allowing additional service credit for employees under the teachers' retirement system plan 1 who reach thirty years of service.

Sponsors:  Representatives Jackley, Cox, Quall, Esser, D. Schmidt, Darneille, O'Brien, Lantz, Gombosky, Eickmeyer, Bush, Ruderman, Simpson, Ogden, Santos, Keiser, Hurst and McIntire.

Brief Summary of Bill

$Allows members of the Teachers Retirement System plan 1(TRS 1) to earn additional service credit above the 30‑year cap, under certain conditions.

Hearing Date:  2/20/01

Staff:  Andrea Hardy (786‑7349).

Background: 

Benefits earned by members of the Teacher Retirement System plan 1 (TRS 1) are statutorily limited to 60 percent of their average final compensation.  This limit is often called the "30‑Year Cap" because the 2 percent per year benefit accrual formula reaches a maximum at 60 percent of average final compensation (which equates to thirty years of member service).

Summary of Bill: 

TRS 1 members are permitted to earn service credit beyond 30 years, subject to three conditions: that the school board enter into a special one‑year contract with the member; that the contract last for no more than one year (though it is renewable); and that the policy on additional service credit is agreed upon either in the district's collective bargaining agreement or by the board and the certificated employee's bargaining representative.

Appropriation:  None.

Fiscal Note:  Requested on February 16, 2001.

Effective Date:  Ninety days after adjournment of session in which bill is passed.