1270 AMS WM SUND 001

HB 1270 - S COMM AMD

By Committee on Ways & Means

ADOPTED 4/13/05

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 41.26.500 and 1998 c 341 s 604 are each amended to read as follows:

(1) ((No)) Except as provided under subsection (3) or (4) of this section, a retiree under the provisions of plan 2 shall not be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, or 41.35.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030. If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

(2) The department shall adopt rules implementing this section.

(3) Except as provided under subsection (4) of this section, a member or retiree who becomes employed in an eligible position as defined in RCW 41.40.010, 41.32.010, or 41.35.010 shall have the option to enter into membership in the corresponding retirement system for that position. A retiree who elects to enter into plan membership under the provisions of this subsection shall have his or her benefits suspended as provided in subsection (1) of this section. A retiree who does not elect to enter into plan membership under the provisions of this subsection shall continue to receive his or her benefits without interruption until the retiree has rendered service for more than one thousand five hundred hours in a calendar year.

(4) A member or retiree who is elected or appointed to the legislature pursuant to Article II of the state Constitution shall have the option to enter into membership in the public employees' retirement system as outlined in chapter 41.40 RCW. A retiree who elects to enter into public employees' retirement system membership under the provisions of this subsection shall have his or her benefits suspended as provided in subsection (1) of this section. A retiree who does not elect to enter into public employees' retirement system membership under the provisions of this subsection shall continue to receive his or her benefits without interruption for the duration of his or her legislative service.

(5) The legislature reserves the right to amend or appeal subsections (3) and (4) of this section in the future and no member or beneficiary has a contractual right to collect his or her monthly retirement allowance while working in an eligible position as defined in RCW 41.40.010, 41.32.010, or 41.35.010

Sec. 2. RCW 41.26.500 and 2004 c 242 s 54 are each amended to read as follows:

(1) ((No)) Except as provided under subsection (3) or (4) of this section, a retiree under the provisions of plan 2 shall not be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, 41.37.010, or 41.35.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030. If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

(2) The department shall adopt rules implementing this section.

(3) Except as provided under subsection (4) of this section, a member or retiree who becomes employed in an eligible position as defined in RCW 41.40.010, 41.32.010, 41.35.010, or 41.37.010 shall have the option to enter into membership in the corresponding retirement system for that position. A retiree who elects to enter into plan membership under the provisions of this subsection shall have his or her benefits suspended as provided in subsection (1) of this section. A retiree who does not elect to enter into plan membership under the provisions of this subsection shall continue to receive his or her benefits without interruption until the retiree has rendered service for more than one thousand five hundred hours in a calendar year.

Sec. 3. RCW 41.04.270 and 2001 c 180 s 4 are each amended to read as follows:

(1) ((Notwithstanding any provision of)) Except as provided in chapter 2.10, 2.12, 41.26, 41.28, 41.32, 41.35, 41.40, or 43.43 RCW ((to the contrary)), on and after March 19, 1976, any member or former member who (a) receives a retirement allowance earned by said former member as deferred compensation from any public retirement system authorized by the general laws of this state, or (b) is eligible to receive a retirement allowance from any public retirement system listed in RCW 41.50.030, but chooses not to apply, or (c) is the beneficiary of a disability allowance from any public retirement system listed in RCW 41.50.030 shall be estopped from becoming a member of or accruing any contractual rights whatsoever in any other public retirement system listed in RCW 41.50.030: PROVIDED, That (a) and (b) of this subsection shall not apply to persons who have accumulated less than fifteen years service credit in any such system or to persons receiving a retirement allowance under RCW 41.26.430 or 41.26.470.

(2) Nothing in this section is intended to apply to any retirement system except those listed in RCW 41.50.030 and the city employee retirement systems for Seattle, Tacoma, and Spokane. Subsection (1)(b) of this section does not apply to a dual member as defined in RCW 41.54.010.

NEW SECTION. Sec. 4. Section 1 of this act expires July 1, 2006.

NEW SECTION. Sec. 5. Section 1 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.

NEW SECTION. Sec. 6. Section 2 of this act takes effect July 1, 2006."

HB 1270 - S AMD

By Committee on Ways & Means

On page 1, on line 1 of the title, after "ACT", strike everything through line 3 of the title and insert "Relating to suspending a retirement allowance upon reemployment; amending RCW 41.04.270, 41.26.500 and 41.26.500; providing an effective date; providing an expiration date; and declaring an emergency."

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EFFECT: Allows retired members of the Law Enforcement Officers' and Fire Fighters' Retirement System, Plan 2 (LEOFF 2), including members who received a disability retirement to work up to 1,500 hours per year in a position eligible for membership in another state retirement system while receiving LEOFF 2 retirement benefits, provided that they do not choose to enroll in the retirement system for which the new position is eligible. State legislators are exempt from the 1,500 hour limit. The Legislature reserves the right to amend or repeal the new benefits in the future.