BILL REQ. #:  Z-0834.4 

Read first time 01/29/2004.   Referred to Committee on Commerce & Trade.

     AN ACT Relating to conforming the social security offset provisions of Title 51 RCW to the modified federal social security retirement age; and amending RCW 51.32.220.

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

Sec. 1   RCW 51.32.220 and 1982 c 63 s 19 are each amended to read as follows:
     (1) For persons ((under the age of sixty-five)) receiving compensation for temporary or permanent total disability pursuant to the provisions of this chapter ((51.32 RCW)), such compensation shall be reduced by an amount equal to the benefits payable under the federal old-age, survivors, and disability insurance act as now or hereafter amended not to exceed the amount of the reduction established pursuant to 42 U.S.C. Sec. 424a. However, such reduction shall not apply when the combined compensation provided pursuant to this chapter ((51.32 RCW)) and the federal old-age, survivors, and disability insurance act is less than the total benefits to which the federal reduction would apply, pursuant to 42 USC 424a. Where any person described in this section refuses to authorize the release of information concerning the amount of benefits payable under said federal act the department's estimate of said amount shall be deemed to be correct unless and until the actual amount is established and no adjustment shall be made for any period of time covered by any such refusal.
     (2) Any reduction under subsection (1) of this section shall be effective the month following the month in which the department or self-insurer is notified by the federal social security administration that the person is receiving disability benefits under the federal old-age, survivors, and disability insurance act: PROVIDED, That in the event of an overpayment of benefits the department or self-insurer may not recover more than the overpayments for the six months immediately preceding the date the department or self-insurer notifies the worker that an overpayment has occurred: PROVIDED FURTHER, That upon determining that there has been an overpayment, the department or self-insurer shall immediately notify the person who received the overpayment that he or she shall be required to make repayment pursuant to this section and RCW 51.32.230.
     (3) Recovery of any overpayment must be taken from future temporary or permanent total disability benefits or permanent partial disability benefits provided by this title. In the case of temporary or permanent total disability benefits, the recovery shall not exceed twenty-five percent of the monthly amount due from the department or self-insurer or one-sixth of the total overpayment, whichever is the lesser.
     (4) No reduction may be made unless the worker receives notice of the reduction prior to the month in which the reduction is made.
     (5) In no event shall the reduction reduce total benefits to less than the greater amount the worker may be entitled to under this title or the federal old-age, survivors, and disability insurance act.
     (6) The director, pursuant to rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise his or her discretion to waive, in whole or in part, the amount of any overpayment where the recovery would be against equity and good conscience.
     (7) ((The amendment in)) Subsection (1) of this section ((by chapter 63, Laws of 1982 raising the age limit during which the reduction shall be made from age sixty-two to age sixty-five shall apply with respect)) applies to:
     (a) Workers under the age of sixty-two whose effective entitlement to total disability compensation begins before January 2, 1983;
     (b) Workers under the age of sixty-five whose effective entitlement to total disability compensation begins after January 1, 1983, and before the effective date of this section; and
     (c) Workers who will become sixty-five years of age on or after the effective date of this section.