BILL REQ. #:  H-1243.1 

Read first time 02/01/2007.   Referred to Committee on Appropriations.

     AN ACT Relating to vesting after five years of service in the defined benefit portion of the public employees' retirement system, the school employees' retirement system, and the teachers' retirement system plan 3; and amending RCW 41.32.875, 41.35.680, and 41.40.820.

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

Sec. 1   RCW 41.32.875 and 2006 c 33 s 1 are each amended to read as follows:
     (1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has((:
     (a))) completed ((ten)) five service credit years((; or
     (b) Completed five service credit years, including twelve service credit months after attaining age forty-four; or
     (c))) or completed five service credit years by July 1, 1996, under plan 2 and who transferred to plan 3 under RCW 41.32.817((;)), shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840.
     (2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.
     (3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

Sec. 2   RCW 41.35.680 and 2006 c 33 s 2 are each amended to read as follows:
     (1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has((:
     (a))) completed ((ten)) five service credit years((; or
     (b) Completed five service credit years, including twelve service credit months after attaining age forty-four; or
     (c))) or completed five service credit years by September 1, 2000, under the public employees' retirement system plan 2 and who transferred to plan 3 under RCW 41.35.510((;)), shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620.
     (2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.
     (3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

Sec. 3   RCW 41.40.820 and 2006 c 33 s 3 are each amended to read as follows:
     (1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has((:
     (a))) completed ((ten)) five service credit years((; or
     (b) Completed five service credit years, including twelve service credit months after attaining age forty-four; or
     (c))) or completed five service credit years by the transfer payment date specified in RCW 41.40.795, under the public employees' retirement system plan 2 and who transferred to plan 3 under RCW 41.40.795((;)), shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.790.
     (2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.790, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.
     (3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.790, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.