2391 AMH CHAS PRIN 058

HB 2391 - H AMD 869

By Representative Chase

WITHDRAWN 4/21/2007

   On page 9, after line 10, insert the following:

   "NEW SECTION. Sec. 6. A new section is added to chapter 41.34 RCW to read as follows:

   (1) On July 1 of 2008, and each year thereafter, the member account of each member or retiree of the public employees' retirement system plan 3, the school employees' retirement system plan 3, or the teachers' retirement system plan 3 who first became employed by an employer before July 1, 2007, shall be credited with an employer contribution equal to ten dollars for each year of service credit earned.

   (2) The amount credited to each school employees' retirement system plan 3 account in subsection (1) of this section shall be transferred from the school employees' retirement system plan 2 and 3 fund.

   (3) The additional contributions to member accounts in this section were intended by the legislature as replacement benefits for gain-sharing. Until there is legal certainty with respect to the repeal of chapter 41.31A RCW, the right to receive these additional contribution amounts is noncontractual, and the legislature reserves the right to amend or repeal this section. Legal certainty includes, but is not limited to, the expiration of any: Applicable limitations on actions; and periods of time for seeking appellate review, up to and including reconsideration by the Washington supreme court and the supreme court of the United States. Until that time, eligible members may still receive additional contributions under this section, and upon each receipt of a July 1 distribution under this section that distribution becomes contractual for the recipient. If the repeal of chapter 41.31A is held to be invalid in a final determination of a court of law, and the court orders reinstatement of gain-sharing or other alternative benefits as a remedy, then the additional contributions to member accounts under this section shall cease."

   Renumber the remaining sections, correct any internal cross-references accordingly, and correct the title

   On page 18, after line 10, insert the following:

   "Sec. 12. RCW 41.45.061 and 2004 c 242 s 40 are each amended to read as follows:

   (1) The required contribution rate for members of the plan 2 teachers' retirement system shall be fixed at the rates in effect on July 1, 1996, subject to the following:

   (a) Beginning September 1, 1997, except as provided in (b) of this subsection, the employee contribution rate shall not exceed the employer plan 2 and 3 rates adopted under RCW 41.45.060, *41.45.054, and 41.45.070 for the teachers' retirement system;

   (b) In addition, the employee contribution rate for plan 2 shall be increased by fifty percent of the contribution rate increase caused by any plan 2 benefit increase passed after July 1, 1996;

   (c) In addition, the employee contribution rate for plan 2 shall not be increased as a result of any distributions pursuant to section 309, chapter 341, Laws of 1998 and RCW 41.31A.020 or section 6 of this act.

   (2) The required contribution rate for members of the school employees' retirement system plan 2 shall equal the school employees' retirement system employer plan 2 and 3 contribution rate adopted under RCW 41.45.060, *41.45.054, and 41.45.070, except as provided in subsection (3) of this section.

   (3) The member contribution rate for the school employees' retirement system plan 2 shall be increased by fifty percent of the contribution rate increase caused by any plan 2 benefit increase passed after September 1, 2000.

   (4) The required contribution rate for members of the public employees' retirement system plan 2 shall be set at the same rate as the employer combined plan 2 and plan 3 rate.

   (5) The required contribution rate for members of the law enforcement officers' and fire fighters' retirement system plan 2 shall be set at fifty percent of the cost of the retirement system.

   (6) The employee contribution rates for plan 2 under subsections (3) and (4) of this section shall not include any increase as a result of any distributions pursuant to RCW 41.31A.020 ((and)), 41.31A.030, and section 6 of this act.

   (7) The required plan 2 and 3 contribution rates for employers shall be adopted in the manner described in RCW 41.45.060, *41.45.054, and 41.45.070.

   (8) The required contribution rate for members of the public safety employees' retirement system plan 2 shall be set at fifty percent of the cost of the retirement system."

   Renumber the remaining sections, correct any internal cross-references accordingly, and correct the title.

EFFECT: Provides that members and retirees of the Public Employees', School Employees', or Teachers' Retirement System Plans 3 that joined the plan before July 1, 2007 will receive a $10 per year of service distribution from the Plan 2/3 retirement fund to their member account on July 1, 2008, and each year thereafter. In the event that the repeal of gain-sharing is invalidated by the courts, distributions of the $10 per year of service benefits will cease, and prior to the expiration of periods of limitations on actions and appeals, the benefits are not a contractual right. These distributions shall not increase the employee contribution rates in the School Employees' Retirement System Plan 2.