BILL REQ. #: Z-0576.1
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 03/01/11. Referred to Committee on Ways & Means.
AN ACT Relating to state government employee compensation; amending RCW 43.03.030, 41.60.150, 41.06.560, 41.26.030, 43.43.120, and 41.45.070; reenacting and amending RCW 41.06.070, 41.06.133, 41.06.500, 43.03.040, 41.32.010, 41.37.010, and 41.40.010; adding a new section to chapter 41.06 RCW; adding a new section to chapter 43.03 RCW; adding a new section to chapter 41.50 RCW; creating new sections; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 41.06 RCW
to read as follows:
(1) Except as provided in this section, from July 1, 2011, through
June 29, 2013, base salaries are reduced three percent for all state
employees of the executive, legislative, and judicial branches,
including those employees in the Washington management service, and
including exempt employees under this chapter.
(2) The following employees of the executive, legislative, and
judicial branches are not subject to subsection (1) of this section:
(a) Elected officials whose salaries are set by the commission on
salaries for elected officials;
(b) Employees at state institutions of higher education;
(c) Certificated employees of the state school for the blind and
the center for childhood deafness and hearing loss;
(d) Commissioned officers of the Washington state patrol
represented by the state patrol troopers association and the Washington
state patrol lieutenants association;
(e) Represented ferry workers of the Washington state department of
transportation; and
(f) Employees whose monthly full-time equivalent salary is less
than two thousand five hundred dollars per month.
(3) Except as provided in subsection (4) of this section, if an
employee subject to the three percent salary reduction under subsection
(1) of this section is entitled to leave, the employee will receive
temporary salary reduction leave of up to five and two-tenths hours per
month. The director of the department of personnel shall adopt rules
governing the accrual and use of temporary salary reduction leave for
nonrepresented employees. For represented employees, the accrual and
use of temporary salary reduction leave shall be in accordance with the
provisions of the collective bargaining agreements.
(4) If provisions of collective bargaining agreements prevent the
implementation of subsection (1) of this section, agencies of the
executive, legislative, and judicial branches shall achieve a three
percent salary reduction for each employee through employee leave
without pay, mandatory and voluntary temporary layoffs, reduced work
hours, or other actions consistent with collective bargaining
agreements. This subsection does not prohibit an agency from granting
temporary salary reduction leave for employees entitled to leave in
accordance with subsection (3) of this section.
(5) Subsection (2) of this section does not prohibit employers of
the executive, legislative, and judicial branches from implementing a
salary reduction for employees exempted under subsection (2) of this
section. Employers of the executive, legislative, and judicial
branches are encouraged to implement a salary reduction for employees
exempted under subsection (2) of this section, except for those
employees whose monthly full-time equivalent salary is less than two
thousand five hundred dollars per month.
(6) Subsection (2) of this section does not prohibit elected
officials whose salaries are set by the commission on salaries for
elected officials to voluntarily agree to a reduction in salary and
elected officials are encouraged to take such action.
(7) This section does not prohibit a state agency or institution
during the 2011-2013 fiscal biennium from instituting reduced work
hours, mandatory or voluntary leave without pay, reductions in
salaries, or temporary layoffs as an integral part of the employer's
expenditure reduction efforts, as certified by the employer. This
subsection must be implemented consistent with collective bargaining
agreements.
NEW SECTION. Sec. 2 A new section is added to chapter 43.03 RCW
to read as follows:
(1) From July 1, 2011, through June 29, 2013, any state elected
official of the executive branch may voluntarily reduce his or her
salary from that established pursuant to Article XXVIII, section 1 of
the state Constitution by three percent.
(2) The department of personnel and office of financial management
shall develop a form to be used by any state elected official of the
executive branch to execute the salary reduction under subsection (1)
of this section through the state's central personnel payroll system.
(3) A voluntary reduction in salary shall be effective and continue
through June 29, 2013, unless the state elected official of the
executive branch directs in writing that the department of personnel
discontinue the reduction.
NEW SECTION. Sec. 3 (1) Except as provided in this section,
institutions of higher education are to achieve compensation reductions
as specifically set forth in the 2011-2013 fiscal biennium omnibus
appropriations act. For classified employees, the three percent salary
reduction shall be implemented through a temporary salary reduction,
voluntary or mandatory leave without pay, temporary layoffs or
reduction in work hours, or a reduction in the percentage of an
employee's position. Institutions of higher education shall not
include reductions in the classified employee workforce to achieve the
compensation reductions specifically set forth in the 2011-2013 fiscal
biennium omnibus appropriations act.
(2) Student employees and employees whose monthly full-time
equivalent salary is less than two thousand five hundred dollars per
month are not subject to subsection (1) of this section.
(3) This section does not prohibit institutions of higher education
from implementing temporary salary reduction leave for employees who
are entitled to leave.
Sec. 4 RCW 41.06.070 and 2010 c 271 s 801, 2010 c 2 s 2, and 2010
c 1 s 1 are each reenacted and amended to read as follows:
(1) The provisions of this chapter do not apply to:
(a) The members of the legislature or to any employee of, or
position in, the legislative branch of the state government including
members, officers, and employees of the legislative council, joint
legislative audit and review committee, statute law committee, and any
interim committee of the legislature;
(b) The justices of the supreme court, judges of the court of
appeals, judges of the superior courts or of the inferior courts, or to
any employee of, or position in the judicial branch of state
government;
(c) Officers, academic personnel, and employees of technical
colleges;
(d) The officers of the Washington state patrol;
(e) Elective officers of the state;
(f) The chief executive officer of each agency;
(g) In the departments of employment security and social and health
services, the director and the director's confidential secretary; in
all other departments, the executive head of which is an individual
appointed by the governor, the director, his or her confidential
secretary, and his or her statutory assistant directors;
(h) In the case of a multimember board, commission, or committee,
whether the members thereof are elected, appointed by the governor or
other authority, serve ex officio, or are otherwise chosen:
(i) All members of such boards, commissions, or committees;
(ii) If the members of the board, commission, or committee serve on
a part-time basis and there is a statutory executive officer: The
secretary of the board, commission, or committee; the chief executive
officer of the board, commission, or committee; and the confidential
secretary of the chief executive officer of the board, commission, or
committee;
(iii) If the members of the board, commission, or committee serve
on a full-time basis: The chief executive officer or administrative
officer as designated by the board, commission, or committee; and a
confidential secretary to the chair of the board, commission, or
committee;
(iv) If all members of the board, commission, or committee serve ex
officio: The chief executive officer; and the confidential secretary
of such chief executive officer;
(i) The confidential secretaries and administrative assistants in
the immediate offices of the elective officers of the state;
(j) Assistant attorneys general;
(k) Commissioned and enlisted personnel in the military service of
the state;
(l) Inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the Washington personnel
resources board;
(m) The public printer or to any employees of or positions in the
state printing plant;
(n) Officers and employees of the Washington state fruit
commission;
(o) Officers and employees of the Washington apple commission;
(p) Officers and employees of the Washington state dairy products
commission;
(q) Officers and employees of the Washington tree fruit research
commission;
(r) Officers and employees of the Washington state beef commission;
(s) Officers and employees of the Washington grain commission;
(t) Officers and employees of any commission formed under chapter
15.66 RCW;
(u) Officers and employees of agricultural commissions formed under
chapter 15.65 RCW;
(v) ((Officers and employees of the nonprofit corporation formed
under chapter 67.40 RCW;)) Executive assistants for personnel administration and labor
relations in all state agencies employing such executive assistants
including but not limited to all departments, offices, commissions,
committees, boards, or other bodies subject to the provisions of this
chapter and this subsection shall prevail over any provision of law
inconsistent herewith unless specific exception is made in such law;
(w)
(((x))) (w) In each agency with fifty or more employees: Deputy
agency heads, assistant directors or division directors, and not more
than three principal policy assistants who report directly to the
agency head or deputy agency heads;
(((y))) (x) All employees of the marine employees' commission;
(((z))) (y) Staff employed by the department of commerce to
administer energy policy functions;
(((aa))) (z) The manager of the energy facility site evaluation
council;
(((bb))) (aa) A maximum of ten staff employed by the department of
commerce to administer innovation and policy functions, including the
three principal policy assistants exempted under (((x))) (w) of this
subsection;
(((cc))) (bb) Staff employed by Washington State University to
administer energy education, applied research, and technology transfer
programs under RCW 43.21F.045 as provided in RCW 28B.30.900(5).
(2) The following classifications, positions, and employees of
institutions of higher education and related boards are hereby exempted
from coverage of this chapter:
(a) Members of the governing board of each institution of higher
education and related boards, all presidents, vice presidents, and
their confidential secretaries, administrative, and personal
assistants; deans, directors, and chairs; academic personnel; and
executive heads of major administrative or academic divisions employed
by institutions of higher education; principal assistants to executive
heads of major administrative or academic divisions; other managerial
or professional employees in an institution or related board having
substantial responsibility for directing or controlling program
operations and accountable for allocation of resources and program
results, or for the formulation of institutional policy, or for
carrying out personnel administration or labor relations functions,
legislative relations, public information, development, senior computer
systems and network programming, or internal audits and investigations;
and any employee of a community college district whose place of work is
one which is physically located outside the state of Washington and who
is employed pursuant to RCW 28B.50.092 and assigned to an educational
program operating outside of the state of Washington;
(b) The governing board of each institution, and related boards,
may also exempt from this chapter classifications involving research
activities, counseling of students, extension or continuing education
activities, graphic arts or publications activities requiring
prescribed academic preparation or special training as determined by
the board: PROVIDED, That no nonacademic employee engaged in office,
clerical, maintenance, or food and trade services may be exempted by
the board under this provision;
(c) Printing craft employees in the department of printing at the
University of Washington.
(3) In addition to the exemptions specifically provided by this
chapter, the director of personnel may provide for further exemptions
pursuant to the following procedures. The governor or other
appropriate elected official may submit requests for exemption to the
director of personnel stating the reasons for requesting such
exemptions. The director of personnel shall hold a public hearing,
after proper notice, on requests submitted pursuant to this subsection.
If the director determines that the position for which exemption is
requested is one involving substantial responsibility for the
formulation of basic agency or executive policy or one involving
directing and controlling program operations of an agency or a major
administrative division thereof, the director of personnel shall grant
the request and such determination shall be final as to any decision
made before July 1, 1993. The total number of additional exemptions
permitted under this subsection shall not exceed one percent of the
number of employees in the classified service not including employees
of institutions of higher education and related boards for those
agencies not directly under the authority of any elected public
official other than the governor, and shall not exceed a total of
twenty-five for all agencies under the authority of elected public
officials other than the governor.
The salary and fringe benefits of all positions presently or
hereafter exempted except for the chief executive officer of each
agency, full-time members of boards and commissions, administrative
assistants and confidential secretaries in the immediate office of an
elected state official, and the personnel listed in subsections (1)(j)
through (((v))) (u) and (((y))) (x) and (2) of this section, shall be
determined by the director of personnel. Changes to the classification
plan affecting exempt salaries must meet the same provisions for
classified salary increases resulting from adjustments to the
classification plan as outlined in RCW 41.06.152.
From February 18, 2009, through June 30, ((2011)) 2013, a salary or
wage increase shall not be granted to any position exempt from
classification under this chapter, except that a salary or wage
increase may be granted to employees pursuant to collective bargaining
agreements negotiated under chapter 28B.52, 41.56, 47.64, or 41.76 RCW,
((or negotiated by the nonprofit corporation formed under chapter 67.40
RCW,)) and except that increases may be granted for positions for which
the employer has demonstrated difficulty retaining qualified employees
if the following conditions are met:
(a) The salary increase can be paid within existing resources; and
(b) The salary increase will not adversely impact the provision of
client services.
Any agency granting a salary increase from February 15, 2010,
through June 30, 2011, to a position exempt from classification under
this chapter shall submit a report to the fiscal committees of the
legislature no later than July 31, 2011, detailing the positions for
which salary increases were granted, the size of the increases, and the
reasons for giving the increases.
Any agency granting a salary increase from July 1, 2011, through
June 30, 2013, to a position exempt from classification under this
chapter shall submit a report to the fiscal committees of the
legislature by July 31, 2012, and July 31, 2013, detailing the
positions for which salary increases were granted during the preceding
fiscal year, the size of the increases, and the reasons for giving the
increases.
Any person holding a classified position subject to the provisions
of this chapter shall, when and if such position is subsequently
exempted from the application of this chapter, be afforded the
following rights: If such person previously held permanent status in
another classified position, such person shall have a right of
reversion to the highest class of position previously held, or to a
position of similar nature and salary.
Any classified employee having civil service status in a classified
position who accepts an appointment in an exempt position shall have
the right of reversion to the highest class of position previously
held, or to a position of similar nature and salary.
A person occupying an exempt position who is terminated from the
position for gross misconduct or malfeasance does not have the right of
reversion to a classified position as provided for in this section.
From February 15, 2010, until June 30, ((2011)) 2013, no monetary
performance-based awards or incentives may be granted by the director
or employers to employees covered by rules adopted under this section.
This subsection does not prohibit the payment of awards provided for in
chapter 41.60 RCW.
From July 1, 2011, until June 30, 2013, no performance-based awards
or incentives may be granted by the director or employers to employees
pursuant to a performance management confirmation granted by the
department of personnel under WAC 357-37-055.
Sec. 5 RCW 41.06.133 and 2010 c 2 s 3 and 2010 c 1 s 2 are each
reenacted and amended to read as follows:
(1) The director shall adopt rules, consistent with the purposes
and provisions of this chapter and with the best standards of personnel
administration, regarding the basis and procedures to be followed for:
(a) The reduction, dismissal, suspension, or demotion of an
employee;
(b) Training and career development;
(c) Probationary periods of six to twelve months and rejections of
probationary employees, depending on the job requirements of the class,
except that entry level state park rangers shall serve a probationary
period of twelve months;
(d) Transfers;
(e) Promotional preferences;
(f) Sick leaves and vacations;
(g) Hours of work;
(h) Layoffs when necessary and subsequent reemployment, except for
the financial basis for layoffs;
(i) The number of names to be certified for vacancies;
(j) Adoption and revision of a state salary schedule to reflect the
prevailing rates in Washington state private industries and other
governmental units. The rates in the salary schedules or plans shall
be increased if necessary to attain comparable worth under an
implementation plan under RCW 41.06.155 and, for institutions of higher
education and related boards, shall be competitive for positions of a
similar nature in the state or the locality in which an institution of
higher education or related board is located. Such adoption and
revision is subject to approval by the director of financial management
in accordance with chapter 43.88 RCW;
(k) Increment increases within the series of steps for each pay
grade based on length of service for all employees whose standards of
performance are such as to permit them to retain job status in the
classified service. From February 18, 2009, through June 30, ((2011))
2013, a salary or wage increase shall not be granted to any exempt
position under this chapter, except that a salary or wage increase may
be granted to employees pursuant to collective bargaining agreements
negotiated under chapter 28B.52, 41.56, 47.64, or 41.76 RCW, ((or
negotiated by the nonprofit corporation formed under chapter 67.40
RCW,)) and except that increases may be granted for positions for which
the employer has demonstrated difficulty retaining qualified employees
if the following conditions are met:
(i) The salary increase can be paid within existing resources; and
(ii) The salary increase will not adversely impact the provision of
client services;
Any agency granting a salary increase from February 15, 2010,
through June 30, 2011, to a position exempt under this chapter shall
submit a report to the fiscal committees of the legislature no later
than July 31, 2011, detailing the positions for which salary increases
were granted, the size of the increases, and the reasons for giving the
increases;
Any agency granting a salary increase from July 1, 2011, through
June 30, 2013, to a position exempt under this chapter shall submit a
report to the fiscal committees of the legislature by July 31, 2012,
and July 31, 2013, detailing the positions for which salary increases
were granted during the preceding fiscal year, the size of the
increases, and the reasons for giving the increases;
(l) Optional lump sum relocation compensation approved by the
agency director, whenever it is reasonably necessary that a person make
a domiciliary move in accepting a transfer or other employment with the
state. An agency must provide lump sum compensation within existing
resources. If the person receiving the relocation payment terminates
or causes termination with the state, for reasons other than layoff,
disability separation, or other good cause as determined by an agency
director, within one year of the date of the employment, the state is
entitled to reimbursement of the lump sum compensation from the person;
(m) Providing for veteran's preference as required by existing
statutes, with recognition of preference in regard to layoffs and
subsequent reemployment for veterans and their surviving spouses by
giving such eligible veterans and their surviving spouses additional
credit in computing their seniority by adding to their unbroken state
service, as defined by the director, the veteran's service in the
military not to exceed five years. For the purposes of this section,
"veteran" means any person who has one or more years of active military
service in any branch of the armed forces of the United States or who
has less than one year's service and is discharged with a disability
incurred in the line of duty or is discharged at the convenience of the
government and who, upon termination of such service, has received an
honorable discharge, a discharge for physical reasons with an honorable
record, or a release from active military service with evidence of
service other than that for which an undesirable, bad conduct, or
dishonorable discharge shall be given. However, the surviving spouse
of a veteran is entitled to the benefits of this section regardless of
the veteran's length of active military service. For the purposes of
this section, "veteran" does not include any person who has voluntarily
retired with twenty or more years of active military service and whose
military retirement pay is in excess of five hundred dollars per month.
(2) Rules adopted under this section by the director shall provide
for local administration and management by the institutions of higher
education and related boards, subject to periodic audit and review by
the director.
(3) Rules adopted by the director under this section may be
superseded by the provisions of a collective bargaining agreement
negotiated under RCW 41.80.001 and 41.80.010 through 41.80.130. The
supersession of such rules shall only affect employees in the
respective collective bargaining units.
(4)(a) The director shall require that each state agency report
annually the following data:
(i) The number of classified, Washington management service, and
exempt employees in the agency and the change compared to the previous
report;
(ii) The number of bonuses and performance-based incentives awarded
to agency staff and the base wages of such employees; and
(iii) The cost of each bonus or incentive awarded.
(b) A report that compiles the data in (a) of this subsection for
all agencies will be provided annually to the governor and the
appropriate committees of the legislature and must be posted for the
public on the department of personnel's agency web site.
(5) From February 15, 2010, until June 30, ((2011)) 2013, no
monetary performance-based awards or incentives may be granted by the
director or employers to employees covered by rules adopted under this
section. This subsection does not prohibit the payment of awards
provided for in chapter 41.60 RCW.
From July 1, 2011, until June 30, 2013, no performance-based awards
or incentives may be granted by the director or employers to employees
pursuant to a performance management confirmation granted by the
department of personnel under WAC 357-37-055.
Sec. 6 RCW 41.06.500 and 2010 c 2 s 4 and 2010 c 1 s 3 are each
reenacted and amended to read as follows:
(1) Except as provided in RCW 41.06.070, notwithstanding any other
provisions of this chapter, the director is authorized to adopt, after
consultation with state agencies and employee organizations, rules for
managers as defined in RCW 41.06.022. These rules shall not apply to
managers employed by institutions of higher education or related boards
or whose positions are exempt. The rules shall govern recruitment,
appointment, classification and allocation of positions, examination,
training and career development, hours of work, probation,
certification, compensation, transfer, affirmative action, promotion,
layoff, reemployment, performance appraisals, discipline, and any and
all other personnel practices for managers. These rules shall be
separate from rules adopted for other employees, and to the extent that
the rules adopted under this section apply only to managers shall take
precedence over rules adopted for other employees, and are not subject
to review by the board.
(2) In establishing rules for managers, the director shall adhere
to the following goals:
(a) Development of a simplified classification system that
facilitates movement of managers between agencies and promotes upward
mobility;
(b) Creation of a compensation system that provides flexibility in
setting and changing salaries, and shall require review and approval by
the director in the case of any salary changes greater than five
percent proposed for any group of employees;
(c) Establishment of a performance appraisal system that emphasizes
individual accountability for program results and efficient management
of resources; effective planning, organization, and communication
skills; valuing and managing workplace diversity; development of
leadership and interpersonal abilities; and employee development;
(d) Strengthening management training and career development
programs that build critical management knowledge, skills, and
abilities; focusing on managing and valuing workplace diversity;
empowering employees by enabling them to share in workplace decision
making and to be innovative, willing to take risks, and able to accept
and deal with change; promoting a workplace where the overall focus is
on the recipient of the government services and how these services can
be improved; and enhancing mobility and career advancement
opportunities;
(e) Permitting flexible recruitment and hiring procedures that
enable agencies to compete effectively with other employers, both
public and private, for managers with appropriate skills and training;
allowing consideration of all qualified candidates for positions as
managers; and achieving affirmative action goals and diversity in the
workplace;
(f) Providing that managers may only be reduced, dismissed,
suspended, or demoted for cause; and
(g) Facilitating decentralized and regional administration.
(3) From February 18, 2009, through June 30, ((2011)) 2013, a
salary or wage increase shall not be granted to any position under this
section, except that increases may be granted for positions for which
the employer has demonstrated difficulty retaining qualified employees
if the following conditions are met:
(a) The salary increase can be paid within existing resources; and
(b) The salary increase will not adversely impact the provision of
client services.
Any agency granting a salary increase from February 15, 2010,
through June 30, 2011, to a position under this section shall submit a
report to the fiscal committees of the legislature no later than July
31, 2011, detailing the positions for which salary increases were
granted, the size of the increases, and the reasons for giving the
increases.
Any agency granting a salary increase from July 1, 2011, through
June 30, 2013, to a position under this section shall submit a report
to the fiscal committees of the legislature by July 31, 2012, and July
31, 2013, detailing the positions for which salary increases were
granted during the preceding fiscal year, the size of the increases,
and the reasons for giving the increases.
(4) From February 15, 2010, until June 30, ((2011)) 2013, no
monetary performance-based awards or growth and development progression
adjustments may be granted by the director or employers to the
Washington management service employees covered by the rules adopted
under this section. This subsection does not prohibit the payment of
awards provided for in chapter 41.60 RCW.
From July 1, 2011, until June 30, 2013, no performance-based awards
or incentives may be granted by the director or employers to employees
pursuant to a performance management confirmation granted by the
department of personnel under WAC 357-37-055.
Sec. 7 RCW 43.03.030 and 2010 c 1 s 4 are each amended to read as
follows:
(1) Wherever the compensation of any appointive state officer or
employee is fixed by statute, it may be hereafter increased or
decreased in the manner provided by law for the fixing of compensation
of other appointive state officers or employees; but this subsection
shall not apply to the heads of state departments.
(2) Wherever the compensation of any state officer appointed by the
governor, or of any employee in any office or department under the
control of any such officer, is fixed by statute, such compensation may
hereafter, from time to time, be changed by the governor, and he or she
shall have power to fix such compensation at any amount not to exceed
the amount fixed by statute.
(3) From February 18, 2009, through June 30, ((2011)) 2013, a
salary or wage increase shall not be granted to any position under this
section, except that increases may be granted for positions for which
the employer has demonstrated difficulty retaining qualified employees
if the following conditions are met:
(a) The salary increase can be paid within existing resources; and
(b) The salary increase will not adversely impact the provision of
client services.
Any agency granting a salary increase from February 15, 2010,
through June 30, 2011, to a position exempt under this section shall
submit a report to the fiscal committees of the legislature no later
than July 31, 2011, detailing the positions for which salary increases
were granted, the size of the increases, and the reasons for giving the
increases.
Any agency granting a salary increase from July 1, 2011, through
June 30, 2013, to a position exempt under this section shall submit a
report to the fiscal committees of the legislature by July 31, 2012,
and July 31, 2013, detailing the positions for which salary increases
were granted during the preceding fiscal year, the size of the
increases, and the reasons for giving the increases.
Sec. 8 RCW 43.03.040 and 2010 1st sp.s. c 7 s 5 and 2010 c 1 s 5
are each reenacted and amended to read as follows:
The directors of the several departments and members of the several
boards and commissions, whose salaries are fixed by the governor and
the chief executive officers of the agencies named in RCW 43.03.028(1)
as now or hereafter amended shall each severally receive such salaries,
payable in monthly installments, as shall be fixed by the governor or
the appropriate salary fixing authority, in an amount not to exceed the
recommendations of the department of personnel. From February 18,
2009, through June 30, ((2011)) 2013, a salary or wage increase shall
not be granted to any position under this section, except that
increases may be granted for positions for which the employer has
demonstrated difficulty retaining qualified employees if the following
conditions are met:
(1) The salary increase can be paid within existing resources; and
(2) The salary increase will not adversely impact the provision
(([of])) of client services.
Any agency granting a salary increase from February 15, 2010,
through June 30, 2011, to a position under this section shall submit a
report to the fiscal committees of the legislature no later than July
31, 2011, detailing the positions for which salary increases were
granted, the size of the increases, and the reasons for giving the
increases.
Any agency granting a salary increase from July 1, 2011, through
June 30, 2013, to a position under this section shall submit a report
to the fiscal committees of the legislature by July 31, 2012, and July
31, 2013, detailing the positions for which salary increases were
granted during the preceding fiscal year, the size of the increases,
and the reasons for giving the increases.
Sec. 9 RCW 41.60.150 and 2010 c 1 s 6 are each amended to read as
follows:
Other than suggestion awards and incentive pay unit awards,
agencies shall have the authority to recognize employees, either
individually or as a class, for accomplishments including outstanding
achievements, safety performance, longevity, outstanding public
service, or service as employee suggestion evaluators and implementors.
Recognition awards may not exceed two hundred dollars in value per
award. Such awards may include, but not be limited to, cash or such
items as pen and desk sets, plaques, pins, framed certificates, clocks,
and calculators. Award costs shall be paid by the agency giving the
award. From February 15, 2010, through June 30, ((2011)) 2013,
recognition awards may not be given in the form of cash or cash
equivalents such as gift certificates or gift cards.
NEW SECTION. Sec. 10 (1) Notwithstanding sections 4 through 8 of
this act, during the 2011-2013 fiscal biennium institutions of higher
education may grant a wage or salary increase for additional academic
responsibilities during the summer quarter if the following conditions
are met:
(a) The salary increase can be paid within existing resources; and
(b) The salary increase will not adversely impact the provision of
client services.
(2) Any institution granting a wage or salary increase under this
section from July 1, 2011, through June 30, 2013, shall submit a report
to the fiscal committees of the legislature by July 31, 2012, and July
31, 2013, detailing the positions for which salary increases were
granted, the size of the increases, and the reasons for giving the
increases.
Sec. 11 RCW 41.06.560 and 2010 c 2 s 6 are each amended to read
as follows:
From February 15, 2010, until June 30, ((2011)) 2013, no monetary
performance-based awards or incentives may be granted by the director
or employers to employees covered by rules adopted under this section.
This section does not prohibit the payment of awards provided for in
chapter 41.60 RCW.
From July 1, 2011, until June 30, 2013, no performance-based awards
or incentives may be granted by the director or employers to employees
pursuant to a performance management confirmation granted by the
department of personnel under WAC 357-37-055.
Sec. 12 RCW 41.26.030 and 2010 2nd sp.s. c 1 s 903 are each
amended to read as follows:
As used in this chapter, unless a different meaning is plainly
required by the context:
(1) "Accumulated contributions" means the employee's contributions
made by a member, including any amount paid under RCW 41.50.165(2),
plus accrued interest credited thereon.
(2) "Actuarial reserve" means a method of financing a pension or
retirement plan wherein reserves are accumulated as the liabilities for
benefit payments are incurred in order that sufficient funds will be
available on the date of retirement of each member to pay the member's
future benefits during the period of retirement.
(3) "Actuarial valuation" means a mathematical determination of the
financial condition of a retirement plan. It includes the computation
of the present monetary value of benefits payable to present members,
and the present monetary value of future employer and employee
contributions, giving effect to mortality among active and retired
members and also to the rates of disability, retirement, withdrawal
from service, salary and interest earned on investments.
(4)(a) "Basic salary" for plan 1 members, means the basic monthly
rate of salary or wages, including longevity pay but not including
overtime earnings or special salary or wages, upon which pension or
retirement benefits will be computed and upon which employer
contributions and salary deductions will be based.
(b) "Basic salary" for plan 2 members, means salaries or wages
earned by a member during a payroll period for personal services,
including overtime payments, and shall include wages and salaries
deferred under provisions established pursuant to sections 403(b),
414(h), and 457 of the United States Internal Revenue Code, but shall
exclude lump sum payments for deferred annual sick leave, unused
accumulated vacation, unused accumulated annual leave, or any form of
severance pay. In any year in which a member serves in the legislature
the member shall have the option of having such member's basic salary
be the greater of:
(i) The basic salary the member would have received had such member
not served in the legislature; or
(ii) Such member's actual basic salary received for nonlegislative
public employment and legislative service combined. Any additional
contributions to the retirement system required because basic salary
under (b)(i) of this subsection is greater than basic salary under
(b)(ii) of this subsection shall be paid by the member for both member
and employer contributions.
(5)(a) "Beneficiary" for plan 1 members, means any person in
receipt of a retirement allowance, disability allowance, death benefit,
or any other benefit described herein.
(b) "Beneficiary" for plan 2 members, means any person in receipt
of a retirement allowance or other benefit provided by this chapter
resulting from service rendered to an employer by another person.
(6)(a) "Child" or "children" means an unmarried person who is under
the age of eighteen or mentally or physically disabled as determined by
the department, except a person who is disabled and in the full time
care of a state institution, who is:
(i) A natural born child;
(ii) A stepchild where that relationship was in existence prior to
the date benefits are payable under this chapter;
(iii) A posthumous child;
(iv) A child legally adopted or made a legal ward of a member prior
to the date benefits are payable under this chapter; or
(v) An illegitimate child legitimized prior to the date any
benefits are payable under this chapter.
(b) A person shall also be deemed to be a child up to and including
the age of twenty years and eleven months while attending any high
school, college, or vocational or other educational institution
accredited, licensed, or approved by the state, in which it is located,
including the summer vacation months and all other normal and regular
vacation periods at the particular educational institution after which
the child returns to school.
(7) "Department" means the department of retirement systems created
in chapter 41.50 RCW.
(8) "Director" means the director of the department.
(9) "Disability board" for plan 1 members means either the county
disability board or the city disability board established in RCW
41.26.110.
(10) "Disability leave" means the period of six months or any
portion thereof during which a member is on leave at an allowance equal
to the member's full salary prior to the commencement of disability
retirement. The definition contained in this subsection shall apply
only to plan 1 members.
(11) "Disability retirement" for plan 1 members, means the period
following termination of a member's disability leave, during which the
member is in receipt of a disability retirement allowance.
(12) "Domestic partners" means two adults who have registered as
domestic partners under RCW 26.60.020.
(13) "Employee" means any law enforcement officer or firefighter as
defined in subsections (16) and (18) of this section.
(14)(a) "Employer" for plan 1 members, means the legislative
authority of any city, town, county, or district or the elected
officials of any municipal corporation that employs any law enforcement
officer and/or firefighter, any authorized association of such
municipalities, and, except for the purposes of RCW 41.26.150, any
labor guild, association, or organization, which represents the
firefighters or law enforcement officers of at least seven cities of
over 20,000 population and the membership of each local lodge or
division of which is composed of at least sixty percent law enforcement
officers or firefighters as defined in this chapter.
(b) "Employer" for plan 2 members, means the following entities to
the extent that the entity employs any law enforcement officer and/or
firefighter:
(i) The legislative authority of any city, town, county, or
district;
(ii) The elected officials of any municipal corporation;
(iii) The governing body of any other general authority law
enforcement agency; or
(iv) A four-year institution of higher education having a fully
operational fire department as of January 1, 1996.
(15)(a) "Final average salary" for plan 1 members, means (i) for a
member holding the same position or rank for a minimum of twelve months
preceding the date of retirement, the basic salary attached to such
same position or rank at time of retirement; (ii) for any other member,
including a civil service member who has not served a minimum of twelve
months in the same position or rank preceding the date of retirement,
the average of the greatest basic salaries payable to such member
during any consecutive twenty-four month period within such member's
last ten years of service for which service credit is allowed, computed
by dividing the total basic salaries payable to such member during the
selected twenty-four month period by twenty-four; (iii) in the case of
disability of any member, the basic salary payable to such member at
the time of disability retirement; (iv) in the case of a member who
hereafter vests pursuant to RCW 41.26.090, the basic salary payable to
such member at the time of vesting.
(b) "Final average salary" for plan 2 members, means the monthly
average of the member's basic salary for the highest consecutive sixty
service credit months of service prior to such member's retirement,
termination, or death. Periods constituting authorized unpaid leaves
of absence may not be used in the calculation of final average salary.
(c) In calculating final average salary under (a) or (b) of this
subsection, the department of retirement systems shall include:
(i) Any compensation forgone by a member employed by a state agency
or institution during the 2009-2011 fiscal biennium as a result of
reduced work hours, mandatory or voluntary leave without pay, temporary
reduction in pay implemented prior to December 11, 2010, or temporary
layoffs if the reduced compensation is an integral part of the
employer's expenditure reduction efforts, as certified by the employer;
and
(ii) Any compensation forgone by a member employed by a state
agency or institution during the 2011-2013 fiscal biennium under
sections 1 through 3 of this act.
(16) "Firefighter" means:
(a) Any person who is serving on a full time, fully compensated
basis as a member of a fire department of an employer and who is
serving in a position which requires passing a civil service
examination for firefighter, and who is actively employed as such;
(b) Anyone who is actively employed as a full time firefighter
where the fire department does not have a civil service examination;
(c) Supervisory firefighter personnel;
(d) Any full time executive secretary of an association of fire
protection districts authorized under RCW 52.12.031. The provisions of
this subsection (16)(d) shall not apply to plan 2 members;
(e) The executive secretary of a labor guild, association or
organization (which is an employer under subsection (14) of this
section), if such individual has five years previous membership in a
retirement system established in chapter 41.16 or 41.18 RCW. The
provisions of this subsection (16)(e) shall not apply to plan 2
members;
(f) Any person who is serving on a full time, fully compensated
basis for an employer, as a fire dispatcher, in a department in which,
on March 1, 1970, a dispatcher was required to have passed a civil
service examination for firefighter;
(g) Any person who on March 1, 1970, was employed on a full time,
fully compensated basis by an employer, and who on May 21, 1971, was
making retirement contributions under the provisions of chapter 41.16
or 41.18 RCW; and
(h) Any person who is employed on a full-time, fully compensated
basis by an employer as an emergency medical technician.
(17) "General authority law enforcement agency" means any agency,
department, or division of a municipal corporation, political
subdivision, or other unit of local government of this state, and any
agency, department, or division of state government, having as its
primary function the detection and apprehension of persons committing
infractions or violating the traffic or criminal laws in general, but
not including the Washington state patrol. Such an agency, department,
or division is distinguished from a limited authority law enforcement
agency having as one of its functions the apprehension or detection of
persons committing infractions or violating the traffic or criminal
laws relating to limited subject areas, including but not limited to,
the state departments of natural resources and social and health
services, the state gambling commission, the state lottery commission,
the state parks and recreation commission, the state utilities and
transportation commission, the state liquor control board, and the
state department of corrections.
(18) "Law enforcement officer" beginning January 1, 1994, means any
person who is commissioned and employed by an employer on a full time,
fully compensated basis to enforce the criminal laws of the state of
Washington generally, with the following qualifications:
(a) No person who is serving in a position that is basically
clerical or secretarial in nature, and who is not commissioned shall be
considered a law enforcement officer;
(b) Only those deputy sheriffs, including those serving under a
different title pursuant to county charter, who have successfully
completed a civil service examination for deputy sheriff or the
equivalent position, where a different title is used, and those persons
serving in unclassified positions authorized by RCW 41.14.070 except a
private secretary will be considered law enforcement officers;
(c) Only such full time commissioned law enforcement personnel as
have been appointed to offices, positions, or ranks in the police
department which have been specifically created or otherwise expressly
provided for and designated by city charter provision or by ordinance
enacted by the legislative body of the city shall be considered city
police officers;
(d) The term "law enforcement officer" also includes the executive
secretary of a labor guild, association or organization (which is an
employer under subsection (14) of this section) if that individual has
five years previous membership in the retirement system established in
chapter 41.20 RCW. The provisions of this subsection (18)(d) shall not
apply to plan 2 members; and
(e) The term "law enforcement officer" also includes a person
employed on or after January 1, 1993, as a public safety officer or
director of public safety, so long as the job duties substantially
involve only either police or fire duties, or both, and no other duties
in a city or town with a population of less than ten thousand. The
provisions of this subsection (18)(e) shall not apply to any public
safety officer or director of public safety who is receiving a
retirement allowance under this chapter as of May 12, 1993.
(19) "Medical services" for plan 1 members, shall include the
following as minimum services to be provided. Reasonable charges for
these services shall be paid in accordance with RCW 41.26.150.
(a) Hospital expenses: These are the charges made by a hospital,
in its own behalf, for
(i) Board and room not to exceed semiprivate room rate unless
private room is required by the attending physician due to the
condition of the patient.
(ii) Necessary hospital services, other than board and room,
furnished by the hospital.
(b) Other medical expenses: The following charges are considered
"other medical expenses", provided that they have not been considered
as "hospital expenses".
(i) The fees of the following:
(A) A physician or surgeon licensed under the provisions of chapter
18.71 RCW;
(B) An osteopathic physician and surgeon licensed under the
provisions of chapter 18.57 RCW;
(C) A chiropractor licensed under the provisions of chapter 18.25
RCW.
(ii) The charges of a registered graduate nurse other than a nurse
who ordinarily resides in the member's home, or is a member of the
family of either the member or the member's spouse.
(iii) The charges for the following medical services and supplies:
(A) Drugs and medicines upon a physician's prescription;
(B) Diagnostic X-ray and laboratory examinations;
(C) X-ray, radium, and radioactive isotopes therapy;
(D) Anesthesia and oxygen;
(E) Rental of iron lung and other durable medical and surgical
equipment;
(F) Artificial limbs and eyes, and casts, splints, and trusses;
(G) Professional ambulance service when used to transport the
member to or from a hospital when injured by an accident or stricken by
a disease;
(H) Dental charges incurred by a member who sustains an accidental
injury to his or her teeth and who commences treatment by a legally
licensed dentist within ninety days after the accident;
(I) Nursing home confinement or hospital extended care facility;
(J) Physical therapy by a registered physical therapist;
(K) Blood transfusions, including the cost of blood and blood
plasma not replaced by voluntary donors;
(L) An optometrist licensed under the provisions of chapter 18.53
RCW.
(20) "Member" means any firefighter, law enforcement officer, or
other person as would apply under subsections (16) or (18) of this
section whose membership is transferred to the Washington law
enforcement officers' and firefighters' retirement system on or after
March 1, 1970, and every law enforcement officer and firefighter who is
employed in that capacity on or after such date.
(21) "Plan 1" means the law enforcement officers' and firefighters'
retirement system, plan 1 providing the benefits and funding provisions
covering persons who first became members of the system prior to
October 1, 1977.
(22) "Plan 2" means the law enforcement officers' and firefighters'
retirement system, plan 2 providing the benefits and funding provisions
covering persons who first became members of the system on and after
October 1, 1977.
(23) "Position" means the employment held at any particular time,
which may or may not be the same as civil service rank.
(24) "Regular interest" means such rate as the director may
determine.
(25) "Retiree" for persons who establish membership in the
retirement system on or after October 1, 1977, means any member in
receipt of a retirement allowance or other benefit provided by this
chapter resulting from service rendered to an employer by such member.
(26) "Retirement fund" means the "Washington law enforcement
officers' and firefighters' retirement system fund" as provided for
herein.
(27) "Retirement system" means the "Washington law enforcement
officers' and firefighters' retirement system" provided herein.
(28)(a) "Service" for plan 1 members, means all periods of
employment for an employer as a firefighter or law enforcement officer,
for which compensation is paid, together with periods of suspension not
exceeding thirty days in duration. For the purposes of this chapter
service shall also include service in the armed forces of the United
States as provided in RCW 41.26.190. Credit shall be allowed for all
service credit months of service rendered by a member from and after
the member's initial commencement of employment as a firefighter or law
enforcement officer, during which the member worked for seventy or more
hours, or was on disability leave or disability retirement. Only
service credit months of service shall be counted in the computation of
any retirement allowance or other benefit provided for in this chapter.
(i) For members retiring after May 21, 1971 who were employed under
the coverage of a prior pension act before March 1, 1970, "service"
shall also include (A) such military service not exceeding five years
as was creditable to the member as of March 1, 1970, under the member's
particular prior pension act, and (B) such other periods of service as
were then creditable to a particular member under the provisions of RCW
41.18.165, 41.20.160, or 41.20.170. However, in no event shall credit
be allowed for any service rendered prior to March 1, 1970, where the
member at the time of rendition of such service was employed in a
position covered by a prior pension act, unless such service, at the
time credit is claimed therefor, is also creditable under the
provisions of such prior act.
(ii) A member who is employed by two employers at the same time
shall only be credited with service to one such employer for any month
during which the member rendered such dual service.
(b) "Service" for plan 2 members, means periods of employment by a
member for one or more employers for which basic salary is earned for
ninety or more hours per calendar month which shall constitute a
service credit month. Periods of employment by a member for one or
more employers for which basic salary is earned for at least seventy
hours but less than ninety hours per calendar month shall constitute
one-half service credit month. Periods of employment by a member for
one or more employers for which basic salary is earned for less than
seventy hours shall constitute a one-quarter service credit month.
Members of the retirement system who are elected or appointed to a
state elective position may elect to continue to be members of this
retirement system.
Service credit years of service shall be determined by dividing the
total number of service credit months of service by twelve. Any
fraction of a service credit year of service as so determined shall be
taken into account in the computation of such retirement allowance or
benefits.
If a member receives basic salary from two or more employers during
any calendar month, the individual shall receive one service credit
month's service credit during any calendar month in which multiple
service for ninety or more hours is rendered; or one-half service
credit month's service credit during any calendar month in which
multiple service for at least seventy hours but less than ninety hours
is rendered; or one-quarter service credit month during any calendar
month in which multiple service for less than seventy hours is
rendered.
(29) "Service credit month" means a full service credit month or an
accumulation of partial service credit months that are equal to one.
(30) "Service credit year" means an accumulation of months of
service credit which is equal to one when divided by twelve.
(31) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(32) "State elective position" means any position held by any
person elected or appointed to statewide office or elected or appointed
as a member of the legislature.
(33) "Surviving spouse" means the surviving widow or widower of a
member. "Surviving spouse" shall not include the divorced spouse of a
member except as provided in RCW 41.26.162.
Sec. 13 RCW 41.32.010 and 2010 2nd sp.s. c 1 s 904 are each
reenacted and amended to read as follows:
As used in this chapter, unless a different meaning is plainly
required by the context:
(1)(a) "Accumulated contributions" for plan 1 members, means the
sum of all regular annuity contributions and, except for the purpose of
withdrawal at the time of retirement, any amount paid under RCW
41.50.165(2) with regular interest thereon.
(b) "Accumulated contributions" for plan 2 members, means the sum
of all contributions standing to the credit of a member in the member's
individual account, including any amount paid under RCW 41.50.165(2),
together with the regular interest thereon.
(2) "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such mortality tables and regulations as
shall be adopted by the director and regular interest.
(3) "Adjustment ratio" means the value of index A divided by index
B.
(4) "Annual increase" means, initially, fifty-nine cents per month
per year of service which amount shall be increased each July 1st by
three percent, rounded to the nearest cent.
(5) "Annuity" means the moneys payable per year during life by
reason of accumulated contributions of a member.
(6) "Average final compensation" for plan 2 and plan 3 members,
means the member's average earnable compensation of the highest
consecutive sixty service credit months prior to such member's
retirement, termination, or death. Periods constituting authorized
leaves of absence may not be used in the calculation of average final
compensation except under RCW 41.32.810(2).
(7)(a) "Beneficiary" for plan 1 members, means any person in
receipt of a retirement allowance or other benefit provided by this
chapter.
(b) "Beneficiary" for plan 2 and plan 3 members, means any person
in receipt of a retirement allowance or other benefit provided by this
chapter resulting from service rendered to an employer by another
person.
(8) "Contract" means any agreement for service and compensation
between a member and an employer.
(9) "Creditable service" means membership service plus prior
service for which credit is allowable. This subsection shall apply
only to plan 1 members.
(10) "Department" means the department of retirement systems
created in chapter 41.50 RCW.
(11) "Dependent" means receiving one-half or more of support from
a member.
(12) "Director" means the director of the department.
(13) "Disability allowance" means monthly payments during
disability. This subsection shall apply only to plan 1 members.
(14)(a) "Earnable compensation" for plan 1 members, means:
(i) All salaries and wages paid by an employer to an employee
member of the retirement system for personal services rendered during
a fiscal year. In all cases where compensation includes maintenance
the employer shall fix the value of that part of the compensation not
paid in money.
(ii) For an employee member of the retirement system teaching in an
extended school year program, two consecutive extended school years, as
defined by the employer school district, may be used as the annual
period for determining earnable compensation in lieu of the two fiscal
years.
(iii) "Earnable compensation" for plan 1 members also includes the
following actual or imputed payments, which are not paid for personal
services:
(A) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wages which the
individual would have earned during a payroll period shall be
considered earnable compensation and the individual shall receive the
equivalent service credit.
(B) If a leave of absence, without pay, is taken by a member for
the purpose of serving as a member of the state legislature, and such
member has served in the legislature five or more years, the salary
which would have been received for the position from which the leave of
absence was taken shall be considered as compensation earnable if the
employee's contribution thereon is paid by the employee. In addition,
where a member has been a member of the state legislature for five or
more years, earnable compensation for the member's two highest
compensated consecutive years of service shall include a sum not to
exceed thirty-six hundred dollars for each of such two consecutive
years, regardless of whether or not legislative service was rendered
during those two years.
(iv) For members employed less than full time under written
contract with a school district, or community college district, in an
instructional position, for which the member receives service credit of
less than one year in all of the years used to determine the earnable
compensation used for computing benefits due under RCW 41.32.497,
41.32.498, and 41.32.520, the member may elect to have earnable
compensation defined as provided in RCW 41.32.345. For the purposes of
this subsection, the term "instructional position" means a position in
which more than seventy-five percent of the member's time is spent as
a classroom instructor (including office hours), a librarian, a
psychologist, a social worker, a nurse, a physical therapist, an
occupational therapist, a speech language pathologist or audiologist,
or a counselor. Earnable compensation shall be so defined only for the
purpose of the calculation of retirement benefits and only as necessary
to insure that members who receive fractional service credit under RCW
41.32.270 receive benefits proportional to those received by members
who have received full-time service credit.
(v) "Earnable compensation" does not include:
(A) Remuneration for unused sick leave authorized under RCW
41.04.340, 28A.400.210, or 28A.310.490;
(B) Remuneration for unused annual leave in excess of thirty days
as authorized by RCW 43.01.044 and 43.01.041.
(b) "Earnable compensation" for plan 2 and plan 3 members, means
salaries or wages earned by a member during a payroll period for
personal services, including overtime payments, and shall include wages
and salaries deferred under provisions established pursuant to sections
403(b), 414(h), and 457 of the United States Internal Revenue Code, but
shall exclude lump sum payments for deferred annual sick leave, unused
accumulated vacation, unused accumulated annual leave, or any form of
severance pay.
"Earnable compensation" for plan 2 and plan 3 members also includes
the following actual or imputed payments which, except in the case of
(b)(ii)(B) of this subsection, are not paid for personal services:
(i) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wages which the
individual would have earned during a payroll period shall be
considered earnable compensation, to the extent provided above, and the
individual shall receive the equivalent service credit.
(ii) In any year in which a member serves in the legislature the
member shall have the option of having such member's earnable
compensation be the greater of:
(A) The earnable compensation the member would have received had
such member not served in the legislature; or
(B) Such member's actual earnable compensation received for
teaching and legislative service combined. Any additional
contributions to the retirement system required because compensation
earnable under (b)(ii)(A) of this subsection is greater than
compensation earnable under (b)(ii)(B) of this subsection shall be paid
by the member for both member and employer contributions.
(c) In calculating earnable compensation under (a) or (b) of this
subsection, the department of retirement systems shall include:
(i) Any compensation forgone by a member employed by a state agency
or institution during the 2009-2011 fiscal biennium as a result of
reduced work hours, mandatory or voluntary leave without pay, temporary
reduction in pay implemented prior to December 11, 2010, or temporary
layoffs if the reduced compensation is an integral part of the
employer's expenditure reduction efforts, as certified by the employer;
and
(ii) Any compensation forgone by a member employed by a state
agency or institution during the 2011-2013 fiscal biennium under
sections 1 through 3 of this act.
(15)(a) "Eligible position" for plan 2 members from June 7, 1990,
through September 1, 1991, means a position which normally requires two
or more uninterrupted months of creditable service during September
through August of the following year.
(b) "Eligible position" for plan 2 and plan 3 on and after
September 1, 1991, means a position that, as defined by the employer,
normally requires five or more months of at least seventy hours of
earnable compensation during September through August of the following
year.
(c) For purposes of this chapter an employer shall not define
"position" in such a manner that an employee's monthly work for that
employer is divided into more than one position.
(d) The elected position of the superintendent of public
instruction is an eligible position.
(16) "Employed" or "employee" means a person who is providing
services for compensation to an employer, unless the person is free
from the employer's direction and control over the performance of work.
The department shall adopt rules and interpret this subsection
consistent with common law.
(17) "Employer" means the state of Washington, the school district,
or any agency of the state of Washington by which the member is paid.
(18) "Fiscal year" means a year which begins July 1st and ends June
30th of the following year.
(19) "Former state fund" means the state retirement fund in
operation for teachers under chapter 187, Laws of 1923, as amended.
(20) "Index" means, for any calendar year, that year's annual
average consumer price index, Seattle, Washington area, for urban wage
earners and clerical workers, all items compiled by the bureau of labor
statistics, United States department of labor.
(21) "Index A" means the index for the year prior to the
determination of a postretirement adjustment.
(22) "Index B" means the index for the year prior to index A.
(23) "Index year" means the earliest calendar year in which the
index is more than sixty percent of index A.
(24) "Local fund" means any of the local retirement funds for
teachers operated in any school district in accordance with the
provisions of chapter 163, Laws of 1917 as amended.
(25) "Member" means any teacher included in the membership of the
retirement system who has not been removed from membership under RCW
41.32.878 or 41.32.768. Also, any other employee of the public schools
who, on July 1, 1947, had not elected to be exempt from membership and
who, prior to that date, had by an authorized payroll deduction,
contributed to the member reserve.
(26) "Member account" or "member's account" for purposes of plan 3
means the sum of the contributions and earnings on behalf of the member
in the defined contribution portion of plan 3.
(27) "Member reserve" means the fund in which all of the
accumulated contributions of members are held.
(28) "Membership service" means service rendered subsequent to the
first day of eligibility of a person to membership in the retirement
system: PROVIDED, That where a member is employed by two or more
employers the individual shall receive no more than one service credit
month during any calendar month in which multiple service is rendered.
The provisions of this subsection shall apply only to plan 1 members.
(29) "Pension" means the moneys payable per year during life from
the pension reserve.
(30) "Pension reserve" is a fund in which shall be accumulated an
actuarial reserve adequate to meet present and future pension
liabilities of the system and from which all pension obligations are to
be paid.
(31) "Plan 1" means the teachers' retirement system, plan 1
providing the benefits and funding provisions covering persons who
first became members of the system prior to October 1, 1977.
(32) "Plan 2" means the teachers' retirement system, plan 2
providing the benefits and funding provisions covering persons who
first became members of the system on and after October 1, 1977, and
prior to July 1, 1996.
(33) "Plan 3" means the teachers' retirement system, plan 3
providing the benefits and funding provisions covering persons who
first become members of the system on and after July 1, 1996, or who
transfer under RCW 41.32.817.
(34) "Prior service" means service rendered prior to the first date
of eligibility to membership in the retirement system for which credit
is allowable. The provisions of this subsection shall apply only to
plan 1 members.
(35) "Prior service contributions" means contributions made by a
member to secure credit for prior service. The provisions of this
subsection shall apply only to plan 1 members.
(36) "Public school" means any institution or activity operated by
the state of Washington or any instrumentality or political subdivision
thereof employing teachers, except the University of Washington and
Washington State University.
(37) "Regular contributions" means the amounts required to be
deducted from the compensation of a member and credited to the member's
individual account in the member reserve. This subsection shall apply
only to plan 1 members.
(38) "Regular interest" means such rate as the director may
determine.
(39) "Retiree" means any person who has begun accruing a retirement
allowance or other benefit provided by this chapter resulting from
service rendered to an employer while a member.
(40)(a) "Retirement allowance" for plan 1 members, means monthly
payments based on the sum of annuity and pension, or any optional
benefits payable in lieu thereof.
(b) "Retirement allowance" for plan 2 and plan 3 members, means
monthly payments to a retiree or beneficiary as provided in this
chapter.
(41) "Retirement system" means the Washington state teachers'
retirement system.
(42) "Separation from service or employment" occurs when a person
has terminated all employment with an employer. Separation from
service or employment does not occur, and if claimed by an employer or
employee may be a violation of RCW 41.32.055, when an employee and
employer have a written or oral agreement to resume employment with the
same employer following termination. Mere expressions or inquiries
about postretirement employment by an employer or employee that do not
constitute a commitment to reemploy the employee after retirement are
not an agreement under this section.
(43)(a) "Service" for plan 1 members means the time during which a
member has been employed by an employer for compensation.
(i) If a member is employed by two or more employers the individual
shall receive no more than one service credit month during any calendar
month in which multiple service is rendered.
(ii) As authorized by RCW 28A.400.300, up to forty-five days of
sick leave may be creditable as service solely for the purpose of
determining eligibility to retire under RCW 41.32.470.
(iii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be
applied solely for the purpose of determining eligibility to retire
under RCW 41.32.470.
(b) "Service" for plan 2 and plan 3 members, means periods of
employment by a member for one or more employers for which earnable
compensation is earned subject to the following conditions:
(i) A member employed in an eligible position or as a substitute
shall receive one service credit month for each month of September
through August of the following year if he or she earns earnable
compensation for eight hundred ten or more hours during that period and
is employed during nine of those months, except that a member may not
receive credit for any period prior to the member's employment in an
eligible position except as provided in RCW 41.32.812 and 41.50.132.
(ii) Any other member employed in an eligible position or as a
substitute who earns earnable compensation during the period from
September through August shall receive service credit according to one
of the following methods, whichever provides the most service credit to
the member:
(A) If a member is employed either in an eligible position or as a
substitute teacher for nine months of the twelve month period between
September through August of the following year but earns earnable
compensation for less than eight hundred ten hours but for at least six
hundred thirty hours, he or she will receive one-half of a service
credit month for each month of the twelve month period;
(B) If a member is employed in an eligible position or as a
substitute teacher for at least five months of a six-month period
between September through August of the following year and earns
earnable compensation for six hundred thirty or more hours within the
six-month period, he or she will receive a maximum of six service
credit months for the school year, which shall be recorded as one
service credit month for each month of the six-month period;
(C) All other members employed in an eligible position or as a
substitute teacher shall receive service credit as follows:
(I) A service credit month is earned in those calendar months where
earnable compensation is earned for ninety or more hours;
(II) A half-service credit month is earned in those calendar months
where earnable compensation is earned for at least seventy hours but
less than ninety hours; and
(III) A quarter-service credit month is earned in those calendar
months where earnable compensation is earned for less than seventy
hours.
(iii) Any person who is a member of the teachers' retirement system
and who is elected or appointed to a state elective position may
continue to be a member of the retirement system and continue to
receive a service credit month for each of the months in a state
elective position by making the required member contributions.
(iv) When an individual is employed by two or more employers the
individual shall only receive one month's service credit during any
calendar month in which multiple service for ninety or more hours is
rendered.
(v) As authorized by RCW 28A.400.300, up to forty-five days of sick
leave may be creditable as service solely for the purpose of
determining eligibility to retire under RCW 41.32.470. For purposes of
plan 2 and plan 3 "forty-five days" as used in RCW 28A.400.300 is equal
to two service credit months. Use of less than forty-five days of sick
leave is creditable as allowed under this subsection as follows:
(A) Less than eleven days equals one-quarter service credit month;
(B) Eleven or more days but less than twenty-two days equals one-half service credit month;
(C) Twenty-two days equals one service credit month;
(D) More than twenty-two days but less than thirty-three days
equals one and one-quarter service credit month;
(E) Thirty-three or more days but less than forty-five days equals
one and one-half service credit month.
(vi) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be
applied solely for the purpose of determining eligibility to retire
under RCW 41.32.470.
(vii) The department shall adopt rules implementing this
subsection.
(44) "Service credit month" means a full service credit month or an
accumulation of partial service credit months that are equal to one.
(45) "Service credit year" means an accumulation of months of
service credit which is equal to one when divided by twelve.
(46) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(47) "State elective position" means any position held by any
person elected or appointed to statewide office or elected or appointed
as a member of the legislature.
(48) "Substitute teacher" means:
(a) A teacher who is hired by an employer to work as a temporary
teacher, except for teachers who are annual contract employees of an
employer and are guaranteed a minimum number of hours; or
(b) Teachers who either (i) work in ineligible positions for more
than one employer or (ii) work in an ineligible position or positions
together with an eligible position.
(49) "Teacher" means any person qualified to teach who is engaged
by a public school in an instructional, administrative, or supervisory
capacity. The term includes state, educational service district, and
school district superintendents and their assistants and all employees
certificated by the superintendent of public instruction; and in
addition thereto any full time school doctor who is employed by a
public school and renders service of an instructional or educational
nature.
Sec. 14 RCW 41.37.010 and 2010 2nd sp.s. c 1 s 905 are each
reenacted and amended to read as follows:
The definitions in this section apply throughout this chapter,
unless the context clearly requires otherwise.
(1) "Accumulated contributions" means the sum of all contributions
standing to the credit of a member in the member's individual account,
including any amount paid under RCW 41.50.165(2), together with the
regular interest thereon.
(2) "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such mortality and other tables as may be
adopted by the director.
(3) "Adjustment ratio" means the value of index A divided by index
B.
(4) "Annuity" means payments for life derived from accumulated
contributions of a member. All annuities shall be paid in monthly
installments.
(5)(a) "Average final compensation" means the member's average
compensation earnable of the highest consecutive sixty months of
service credit months prior to such member's retirement, termination,
or death. Periods constituting authorized leaves of absence may not be
used in the calculation of average final compensation except under RCW
41.37.290.
(b) In calculating average final compensation under (a) of this
subsection, the department of retirement systems shall include:
(i) Any compensation forgone by a member employed by a state agency
or institution during the 2009-2011 fiscal biennium as a result of
reduced work hours, mandatory or voluntary leave without pay, temporary
reduction in pay implemented prior to December 11, 2010, or temporary
layoffs if the reduced compensation is an integral part of the
employer's expenditure reduction efforts, as certified by the employer;
and
(ii) Any compensation forgone by a member employed by a state
agency or institution during the 2011-2013 fiscal biennium under
sections 1 through 3 of this act.
(6) "Beneficiary" means any person in receipt of a retirement
allowance or other benefit provided by this chapter resulting from
service rendered to an employer by another person.
(7)(a) "Compensation earnable" for members, means salaries or wages
earned by a member during a payroll period for personal services,
including overtime payments, and shall include wages and salaries
deferred under provisions established pursuant to sections 403(b),
414(h), and 457 of the United States internal revenue code, but shall
exclude nonmoney maintenance compensation and lump sum or other
payments for deferred annual sick leave, unused accumulated vacation,
unused accumulated annual leave, or any form of severance pay.
(b) "Compensation earnable" for members also includes the following
actual or imputed payments, which are not paid for personal services:
(i) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement, which are awarded or granted
as the equivalent of the salary or wage which the individual would have
earned during a payroll period shall be considered compensation
earnable to the extent provided in this subsection, and the individual
shall receive the equivalent service credit;
(ii) In any year in which a member serves in the legislature, the
member shall have the option of having such member's compensation
earnable be the greater of:
(A) The compensation earnable the member would have received had
such member not served in the legislature; or
(B) Such member's actual compensation earnable received for
nonlegislative public employment and legislative service combined. Any
additional contributions to the retirement system required because
compensation earnable under (b)(ii)(A) of this subsection is greater
than compensation earnable under (b)(ii)(B) of this subsection shall be
paid by the member for both member and employer contributions;
(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045,
and 72.09.240;
(iv) Compensation that a member would have received but for a
disability occurring in the line of duty only as authorized by RCW
41.37.060;
(v) Compensation that a member receives due to participation in the
leave sharing program only as authorized by RCW 41.04.650 through
41.04.670; and
(vi) Compensation that a member receives for being in standby
status. For the purposes of this section, a member is in standby
status when not being paid for time actually worked and the employer
requires the member to be prepared to report immediately for work, if
the need arises, although the need may not arise.
(8) "Department" means the department of retirement systems created
in chapter 41.50 RCW.
(9) "Director" means the director of the department.
(10) "Eligible position" means any permanent, full-time position
included in subsection (19) of this section.
(11) "Employee" or "employed" means a person who is providing
services for compensation to an employer, unless the person is free
from the employer's direction and control over the performance of work.
The department shall adopt rules and interpret this subsection
consistent with common law.
(12) "Employer" means the Washington state department of
corrections, the Washington state parks and recreation commission, the
Washington state gambling commission, the Washington state patrol, the
Washington state department of natural resources, and the Washington
state liquor control board; any county corrections department; or any
city corrections department not covered under chapter 41.28 RCW.
(13) "Final compensation" means the annual rate of compensation
earnable by a member at the time of termination of employment.
(14) "Index" means, for any calendar year, that year's annual
average consumer price index, Seattle, Washington area, for urban wage
earners and clerical workers, all items, compiled by the bureau of
labor statistics, United States department of labor.
(15) "Index A" means the index for the year prior to the
determination of a postretirement adjustment.
(16) "Index B" means the index for the year prior to index A.
(17) "Ineligible position" means any position which does not
conform with the requirements set forth in subsection (10) of this
section.
(18) "Leave of absence" means the period of time a member is
authorized by the employer to be absent from service without being
separated from membership.
(19) "Member" means any employee employed by an employer on a full-time basis:
(a) Who is in a position that requires completion of a certified
criminal justice training course and is authorized by their employer to
arrest, conduct criminal investigations, enforce the criminal laws of
the state of Washington, and carry a firearm as part of the job;
(b) Whose primary responsibility is to ensure the custody and
security of incarcerated or probationary individuals as a corrections
officer, probation officer, or jailer;
(c) Who is a limited authority Washington peace officer, as defined
in RCW 10.93.020, for an employer; or
(d) Whose primary responsibility is to supervise members eligible
under this subsection.
(20) "Membership service" means all service rendered as a member.
(21) "Pension" means payments for life derived from contributions
made by the employer. All pensions shall be paid in monthly
installments.
(22) "Plan" means the Washington public safety employees'
retirement system plan 2.
(23) "Regular interest" means such rate as the director may
determine.
(24) "Retiree" means any person who has begun accruing a retirement
allowance or other benefit provided by this chapter resulting from
service rendered to an employer while a member.
(25) "Retirement" means withdrawal from active service with a
retirement allowance as provided by this chapter.
(26) "Retirement allowance" means monthly payments to a retiree or
beneficiary as provided in this chapter.
(27) "Retirement system" means the Washington public safety
employees' retirement system provided for in this chapter.
(28) "Separation from service" occurs when a person has terminated
all employment with an employer.
(29) "Service" means periods of employment by a member on or after
July 1, 2006, for one or more employers for which compensation earnable
is paid. Compensation earnable earned for ninety or more hours in any
calendar month shall constitute one service credit month. Compensation
earnable earned for at least seventy hours but less than ninety hours
in any calendar month shall constitute one-half service credit month of
service. Compensation earnable earned for less than seventy hours in
any calendar month shall constitute one-quarter service credit month of
service. Time spent in standby status, whether compensated or not, is
not service.
Any fraction of a year of service shall be taken into account in
the computation of such retirement allowance or benefits.
(a) Service in any state elective position shall be deemed to be
full-time service.
(b) A member shall receive a total of not more than twelve service
credit months of service for such calendar year. If an individual is
employed in an eligible position by one or more employers the
individual shall receive no more than one service credit month during
any calendar month in which multiple service for ninety or more hours
is rendered.
(30) "Service credit month" means a month or an accumulation of
months of service credit which is equal to one.
(31) "Service credit year" means an accumulation of months of
service credit which is equal to one when divided by twelve.
(32) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(33) "State elective position" means any position held by any
person elected or appointed to statewide office or elected or appointed
as a member of the legislature.
(34) "State treasurer" means the treasurer of the state of
Washington.
Sec. 15 RCW 41.40.010 and 2010 2nd sp.s. c 1 s 906 are each
reenacted and amended to read as follows:
As used in this chapter, unless a different meaning is plainly
required by the context:
(1) "Accumulated contributions" means the sum of all contributions
standing to the credit of a member in the member's individual account,
including any amount paid under RCW 41.50.165(2), together with the
regular interest thereon.
(2) "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of such mortality and other tables as may be
adopted by the director.
(3) "Adjustment ratio" means the value of index A divided by index
B.
(4) "Annual increase" means, initially, fifty-nine cents per month
per year of service which amount shall be increased each July 1st by
three percent, rounded to the nearest cent.
(5) "Annuity" means payments for life derived from accumulated
contributions of a member. All annuities shall be paid in monthly
installments.
(6)(a) "Average final compensation" for plan 1 members, means the
annual average of the greatest compensation earnable by a member during
any consecutive two year period of service credit months for which
service credit is allowed; or if the member has less than two years of
service credit months then the annual average compensation earnable
during the total years of service for which service credit is allowed.
(b) "Average final compensation" for plan 2 and plan 3 members,
means the member's average compensation earnable of the highest
consecutive sixty months of service credit months prior to such
member's retirement, termination, or death. Periods constituting
authorized leaves of absence may not be used in the calculation of
average final compensation except under RCW 41.40.710(2) or (c) of this
subsection.
(c) In calculating average final compensation under this subsection
for a member of plan 1, 2, or 3, the department of retirement systems
shall include:
(i) Any compensation forgone by the member during the 2009-2011
fiscal biennium as a result of reduced work hours, voluntary leave
without pay, temporary reduction in pay implemented prior to December
11, 2010, or temporary furloughs if the reduced compensation is an
integral part of the employer's expenditure reduction efforts, as
certified by the employer; and
(ii) Any compensation forgone by a member employed by a state
agency or institution during the 2011-2013 fiscal biennium under
sections 1 through 3 of this act.
(7)(a) "Beneficiary" for plan 1 members, means any person in
receipt of a retirement allowance, pension or other benefit provided by
this chapter.
(b) "Beneficiary" for plan 2 and plan 3 members, means any person
in receipt of a retirement allowance or other benefit provided by this
chapter resulting from service rendered to an employer by another
person.
(8)(a) "Compensation earnable" for plan 1 members, means salaries
or wages earned during a payroll period for personal services and where
the compensation is not all paid in money, maintenance compensation
shall be included upon the basis of the schedules established by the
member's employer.
(i) "Compensation earnable" for plan 1 members also includes the
following actual or imputed payments, which are not paid for personal
services:
(A) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wage which the
individual would have earned during a payroll period shall be
considered compensation earnable and the individual shall receive the
equivalent service credit;
(B) If a leave of absence is taken by an individual for the purpose
of serving in the state legislature, the salary which would have been
received for the position from which the leave of absence was taken,
shall be considered as compensation earnable if the employee's
contribution is paid by the employee and the employer's contribution is
paid by the employer or employee;
(C) Assault pay only as authorized by RCW 27.04.100, 72.01.045, and
72.09.240;
(D) Compensation that a member would have received but for a
disability occurring in the line of duty only as authorized by RCW
41.40.038;
(E) Compensation that a member receives due to participation in the
leave sharing program only as authorized by RCW 41.04.650 through
41.04.670; and
(F) Compensation that a member receives for being in standby
status. For the purposes of this section, a member is in standby
status when not being paid for time actually worked and the employer
requires the member to be prepared to report immediately for work, if
the need arises, although the need may not arise.
(ii) "Compensation earnable" does not include:
(A) Remuneration for unused sick leave authorized under RCW
41.04.340, 28A.400.210, or 28A.310.490;
(B) Remuneration for unused annual leave in excess of thirty days
as authorized by RCW 43.01.044 and 43.01.041.
(b) "Compensation earnable" for plan 2 and plan 3 members, means
salaries or wages earned by a member during a payroll period for
personal services, including overtime payments, and shall include wages
and salaries deferred under provisions established pursuant to sections
403(b), 414(h), and 457 of the United States Internal Revenue Code, but
shall exclude nonmoney maintenance compensation and lump sum or other
payments for deferred annual sick leave, unused accumulated vacation,
unused accumulated annual leave, or any form of severance pay.
"Compensation earnable" for plan 2 and plan 3 members also includes
the following actual or imputed payments, which are not paid for
personal services:
(i) Retroactive payments to an individual by an employer on
reinstatement of the employee in a position, or payments by an employer
to an individual in lieu of reinstatement in a position which are
awarded or granted as the equivalent of the salary or wage which the
individual would have earned during a payroll period shall be
considered compensation earnable to the extent provided above, and the
individual shall receive the equivalent service credit;
(ii) In any year in which a member serves in the legislature, the
member shall have the option of having such member's compensation
earnable be the greater of:
(A) The compensation earnable the member would have received had
such member not served in the legislature; or
(B) Such member's actual compensation earnable received for
nonlegislative public employment and legislative service combined. Any
additional contributions to the retirement system required because
compensation earnable under (b)(ii)(A) of this subsection is greater
than compensation earnable under (b)(ii)(B) of this subsection shall be
paid by the member for both member and employer contributions;
(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045,
and 72.09.240;
(iv) Compensation that a member would have received but for a
disability occurring in the line of duty only as authorized by RCW
41.40.038;
(v) Compensation that a member receives due to participation in the
leave sharing program only as authorized by RCW 41.04.650 through
41.04.670; and
(vi) Compensation that a member receives for being in standby
status. For the purposes of this section, a member is in standby
status when not being paid for time actually worked and the employer
requires the member to be prepared to report immediately for work, if
the need arises, although the need may not arise.
(9) "Department" means the department of retirement systems created
in chapter 41.50 RCW.
(10) "Director" means the director of the department.
(11) "Eligible position" means:
(a) Any position that, as defined by the employer, normally
requires five or more months of service a year for which regular
compensation for at least seventy hours is earned by the occupant
thereof. For purposes of this chapter an employer shall not define
"position" in such a manner that an employee's monthly work for that
employer is divided into more than one position;
(b) Any position occupied by an elected official or person
appointed directly by the governor, or appointed by the chief justice
of the supreme court under RCW 2.04.240(2) or 2.06.150(2), for which
compensation is paid.
(12) "Employee" or "employed" means a person who is providing
services for compensation to an employer, unless the person is free
from the employer's direction and control over the performance of work.
The department shall adopt rules and interpret this subsection
consistent with common law.
(13)(a) "Employer" for plan 1 members, means every branch,
department, agency, commission, board, and office of the state, any
political subdivision or association of political subdivisions of the
state admitted into the retirement system, and legal entities
authorized by RCW 35.63.070 and 36.70.060 or chapter 39.34 RCW; and the
term shall also include any labor guild, association, or organization
the membership of a local lodge or division of which is comprised of at
least forty percent employees of an employer (other than such labor
guild, association, or organization) within this chapter. The term may
also include any city of the first class that has its own retirement
system.
(b) "Employer" for plan 2 and plan 3 members, means every branch,
department, agency, commission, board, and office of the state, and any
political subdivision and municipal corporation of the state admitted
into the retirement system, including public agencies created pursuant
to RCW 35.63.070, 36.70.060, and 39.34.030; except that after August
31, 2000, school districts and educational service districts will no
longer be employers for the public employees' retirement system plan 2.
(14) "Final compensation" means the annual rate of compensation
earnable by a member at the time of termination of employment.
(15) "Index" means, for any calendar year, that year's annual
average consumer price index, Seattle, Washington area, for urban wage
earners and clerical workers, all items, compiled by the bureau of
labor statistics, United States department of labor.
(16) "Index A" means the index for the year prior to the
determination of a postretirement adjustment.
(17) "Index B" means the index for the year prior to index A.
(18) "Index year" means the earliest calendar year in which the
index is more than sixty percent of index A.
(19) "Ineligible position" means any position which does not
conform with the requirements set forth in subsection (11) of this
section.
(20) "Leave of absence" means the period of time a member is
authorized by the employer to be absent from service without being
separated from membership.
(21) "Member" means any employee included in the membership of the
retirement system, as provided for in RCW 41.40.023. RCW 41.26.045
does not prohibit a person otherwise eligible for membership in the
retirement system from establishing such membership effective when he
or she first entered an eligible position.
(22) "Member account" or "member's account" for purposes of plan 3
means the sum of the contributions and earnings on behalf of the member
in the defined contribution portion of plan 3.
(23) "Membership service" means:
(a) All service rendered, as a member, after October 1, 1947;
(b) All service after October 1, 1947, to any employer prior to the
time of its admission into the retirement system for which member and
employer contributions, plus interest as required by RCW 41.50.125,
have been paid under RCW 41.40.056 or 41.40.057;
(c) Service not to exceed six consecutive months of probationary
service rendered after April 1, 1949, and prior to becoming a member,
in the case of any member, upon payment in full by such member of the
total amount of the employer's contribution to the retirement fund
which would have been required under the law in effect when such
probationary service was rendered if the member had been a member
during such period, except that the amount of the employer's
contribution shall be calculated by the director based on the first
month's compensation earnable as a member;
(d) Service not to exceed six consecutive months of probationary
service, rendered after October 1, 1947, and before April 1, 1949, and
prior to becoming a member, in the case of any member, upon payment in
full by such member of five percent of such member's salary during said
period of probationary service, except that the amount of the
employer's contribution shall be calculated by the director based on
the first month's compensation earnable as a member.
(24) "New member" means a person who becomes a member on or after
April 1, 1949, except as otherwise provided in this section.
(25) "Original member" of this retirement system means:
(a) Any person who became a member of the system prior to April 1,
1949;
(b) Any person who becomes a member through the admission of an
employer into the retirement system on and after April 1, 1949, and
prior to April 1, 1951;
(c) Any person who first becomes a member by securing employment
with an employer prior to April 1, 1951, provided the member has
rendered at least one or more years of service to any employer prior to
October 1, 1947;
(d) Any person who first becomes a member through the admission of
an employer into the retirement system on or after April 1, 1951,
provided, such person has been in the regular employ of the employer
for at least six months of the twelve-month period preceding the said
admission date;
(e) Any member who has restored all contributions that may have
been withdrawn as provided by RCW 41.40.150 and who on the effective
date of the individual's retirement becomes entitled to be credited
with ten years or more of membership service except that the provisions
relating to the minimum amount of retirement allowance for the member
upon retirement at age seventy as found in RCW 41.40.190(4) shall not
apply to the member;
(f) Any member who has been a contributor under the system for two
or more years and who has restored all contributions that may have been
withdrawn as provided by RCW 41.40.150 and who on the effective date of
the individual's retirement has rendered five or more years of service
for the state or any political subdivision prior to the time of the
admission of the employer into the system; except that the provisions
relating to the minimum amount of retirement allowance for the member
upon retirement at age seventy as found in RCW 41.40.190(4) shall not
apply to the member.
(26) "Pension" means payments for life derived from contributions
made by the employer. All pensions shall be paid in monthly
installments.
(27) "Plan 1" means the public employees' retirement system, plan
1 providing the benefits and funding provisions covering persons who
first became members of the system prior to October 1, 1977.
(28) "Plan 2" means the public employees' retirement system, plan
2 providing the benefits and funding provisions covering persons who
first became members of the system on and after October 1, 1977, and
are not included in plan 3.
(29) "Plan 3" means the public employees' retirement system, plan
3 providing the benefits and funding provisions covering persons who:
(a) First become a member on or after:
(i) March 1, 2002, and are employed by a state agency or institute
of higher education and who did not choose to enter plan 2; or
(ii) September 1, 2002, and are employed by other than a state
agency or institute of higher education and who did not choose to enter
plan 2; or
(b) Transferred to plan 3 under RCW 41.40.795.
(30) "Prior service" means all service of an original member
rendered to any employer prior to October 1, 1947.
(31) "Regular interest" means such rate as the director may
determine.
(32) "Retiree" means any person who has begun accruing a retirement
allowance or other benefit provided by this chapter resulting from
service rendered to an employer while a member.
(33) "Retirement" means withdrawal from active service with a
retirement allowance as provided by this chapter.
(34) "Retirement allowance" means the sum of the annuity and the
pension.
(35) "Retirement system" means the public employees' retirement
system provided for in this chapter.
(36) "Separation from service" occurs when a person has terminated
all employment with an employer. Separation from service or employment
does not occur, and if claimed by an employer or employee may be a
violation of RCW 41.40.055, when an employee and employer have a
written or oral agreement to resume employment with the same employer
following termination. Mere expressions or inquiries about
postretirement employment by an employer or employee that do not
constitute a commitment to reemploy the employee after retirement are
not an agreement under this subsection.
(37)(a) "Service" for plan 1 members, except as provided in RCW
41.40.088, means periods of employment in an eligible position or
positions for one or more employers rendered to any employer for which
compensation is paid, and includes time spent in office as an elected
or appointed official of an employer. Compensation earnable earned in
full time work for seventy hours or more in any given calendar month
shall constitute one service credit month except as provided in RCW
41.40.088. Compensation earnable earned for less than seventy hours in
any calendar month shall constitute one-quarter service credit month of
service except as provided in RCW 41.40.088. Only service credit
months and one-quarter service credit months shall be counted in the
computation of any retirement allowance or other benefit provided for
in this chapter. Any fraction of a year of service shall be taken into
account in the computation of such retirement allowance or benefits.
Time spent in standby status, whether compensated or not, is not
service.
(i) Service by a state employee officially assigned by the state on
a temporary basis to assist another public agency, shall be considered
as service as a state employee: PROVIDED, That service to any other
public agency shall not be considered service as a state employee if
such service has been used to establish benefits in any other public
retirement system.
(ii) An individual shall receive no more than a total of twelve
service credit months of service during any calendar year. If an
individual is employed in an eligible position by one or more employers
the individual shall receive no more than one service credit month
during any calendar month in which multiple service for seventy or more
hours is rendered.
(iii) A school district employee may count up to forty-five days of
sick leave as creditable service solely for the purpose of determining
eligibility to retire under RCW 41.40.180 as authorized by RCW
28A.400.300. For purposes of plan 1 "forty-five days" as used in RCW
28A.400.300 is equal to two service credit months. Use of less than
forty-five days of sick leave is creditable as allowed under this
subsection as follows:
(A) Less than twenty-two days equals one-quarter service credit
month;
(B) Twenty-two days equals one service credit month;
(C) More than twenty-two days but less than forty-five days equals
one and one-quarter service credit month.
(b) "Service" for plan 2 and plan 3 members, means periods of
employment by a member in an eligible position or positions for one or
more employers for which compensation earnable is paid. Compensation
earnable earned for ninety or more hours in any calendar month shall
constitute one service credit month except as provided in RCW
41.40.088. Compensation earnable earned for at least seventy hours but
less than ninety hours in any calendar month shall constitute one-half
service credit month of service. Compensation earnable earned for less
than seventy hours in any calendar month shall constitute one-quarter
service credit month of service. Time spent in standby status, whether
compensated or not, is not service.
Any fraction of a year of service shall be taken into account in
the computation of such retirement allowance or benefits.
(i) Service in any state elective position shall be deemed to be
full time service, except that persons serving in state elective
positions who are members of the Washington school employees'
retirement system, teachers' retirement system, public safety
employees' retirement system, or law enforcement officers' and
firefighters' retirement system at the time of election or appointment
to such position may elect to continue membership in the Washington
school employees' retirement system, teachers' retirement system,
public safety employees' retirement system, or law enforcement
officers' and firefighters' retirement system.
(ii) A member shall receive a total of not more than twelve service
credit months of service for such calendar year. If an individual is
employed in an eligible position by one or more employers the
individual shall receive no more than one service credit month during
any calendar month in which multiple service for ninety or more hours
is rendered.
(iii) Up to forty-five days of sick leave may be creditable as
service solely for the purpose of determining eligibility to retire
under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of
plan 2 and plan 3 "forty-five days" as used in RCW 28A.400.300 is equal
to two service credit months. Use of less than forty-five days of sick
leave is creditable as allowed under this subsection as follows:
(A) Less than eleven days equals one-quarter service credit month;
(B) Eleven or more days but less than twenty-two days equals one-half service credit month;
(C) Twenty-two days equals one service credit month;
(D) More than twenty-two days but less than thirty-three days
equals one and one-quarter service credit month;
(E) Thirty-three or more days but less than forty-five days equals
one and one-half service credit month.
(38) "Service credit month" means a month or an accumulation of
months of service credit which is equal to one.
(39) "Service credit year" means an accumulation of months of
service credit which is equal to one when divided by twelve.
(40) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(41) "State elective position" means any position held by any
person elected or appointed to statewide office or elected or appointed
as a member of the legislature.
(42) "State treasurer" means the treasurer of the state of
Washington.
(43) "Totally incapacitated for duty" means total inability to
perform the duties of a member's employment or office or any other work
for which the member is qualified by training or experience.
Sec. 16 RCW 43.43.120 and 2010 2nd sp.s. c 1 s 907 are each
amended to read as follows:
As used in this section and RCW 43.43.130 through 43.43.320, unless
a different meaning is plainly required by the context:
(1) "Actuarial equivalent" shall mean a benefit of equal value when
computed upon the basis of such mortality table as may be adopted and
such interest rate as may be determined by the director.
(2) "Annual increase" means as of July 1, 1999, seventy-seven cents
per month per year of service which amount shall be increased each
subsequent July 1st by three percent, rounded to the nearest cent.
(3)(a) "Average final salary," for members commissioned prior to
January 1, 2003, shall mean the average monthly salary received by a
member during the member's last two years of service or any consecutive
two-year period of service, whichever is the greater, as an employee of
the Washington state patrol; or if the member has less than two years
of service, then the average monthly salary received by the member
during the member's total years of service.
(b) "Average final salary," for members commissioned on or after
January 1, 2003, shall mean the average monthly salary received by a
member for the highest consecutive sixty service credit months; or if
the member has less than sixty months of service, then the average
monthly salary received by the member during the member's total months
of service.
(c) In calculating average final salary under (a) or (b) of this
subsection, the department of retirement systems shall include:
(i) Any compensation forgone by the member during the 2009-2011
fiscal biennium as a result of reduced work hours, mandatory or
voluntary leave without pay, temporary reduction in pay implemented
prior to December 11, 2010, or temporary layoffs if the reduced
compensation is an integral part of the employer's expenditure
reduction efforts, as certified by the chief; and
(ii) Any compensation forgone by a member employed by a state
agency or institution during the 2011-2013 fiscal biennium under
sections 1 through 3 of this act.
(4) "Beneficiary" means any person in receipt of retirement
allowance or any other benefit allowed by this chapter.
(5)(a) "Cadet," for a person who became a member of the retirement
system after June 12, 1980, is a person who has passed the Washington
state patrol's entry-level oral, written, physical performance, and
background examinations and is, thereby, appointed by the chief as a
candidate to be a commissioned officer of the Washington state patrol.
(b) "Cadet," for a person who became a member of the retirement
system before June 12, 1980, is a trooper cadet, patrol cadet, or
employee of like classification, employed for the express purpose of
receiving the on-the-job training required for attendance at the state
patrol academy and for becoming a commissioned trooper. "Like
classification" includes: Radio operators or dispatchers; persons
providing security for the governor or legislature; patrol officers;
drivers' license examiners; weighmasters; vehicle safety inspectors;
central wireless operators; and warehouse workers.
(6) "Contributions" means the deduction from the compensation of
each member in accordance with the contribution rates established under
chapter 41.45 RCW.
(7) "Current service" shall mean all service as a member rendered
on or after August 1, 1947.
(8) "Department" means the department of retirement systems created
in chapter 41.50 RCW.
(9) "Director" means the director of the department of retirement
systems.
(10) "Domestic partners" means two adults who have registered as
domestic partners under RCW 26.60.040.
(11) "Employee" means any commissioned employee of the Washington
state patrol.
(12) "Insurance commissioner" means the insurance commissioner of
the state of Washington.
(13) "Lieutenant governor" means the lieutenant governor of the
state of Washington.
(14) "Member" means any person included in the membership of the
retirement fund.
(15) "Plan 2" means the Washington state patrol retirement system
plan 2, providing the benefits and funding provisions covering
commissioned employees who first become members of the system on or
after January 1, 2003.
(16) "Prior service" shall mean all services rendered by a member
to the state of Washington, or any of its political subdivisions prior
to August 1, 1947, unless such service has been credited in another
public retirement or pension system operating in the state of
Washington.
(17) "Regular interest" means interest compounded annually at such
rates as may be determined by the director.
(18) "Retirement board" means the board provided for in this
chapter.
(19) "Retirement fund" means the Washington state patrol retirement
fund.
(20) "Retirement system" means the Washington state patrol
retirement system.
(21)(a) "Salary," for members commissioned prior to July 1, 2001,
shall exclude any overtime earnings related to RCW 47.46.040, or any
voluntary overtime, earned on or after July 1, 2001.
(b) "Salary," for members commissioned on or after July 1, 2001,
shall exclude any overtime earnings related to RCW 47.46.040 or any
voluntary overtime, lump sum payments for deferred annual sick leave,
unused accumulated vacation, unused accumulated annual leave, holiday
pay, or any form of severance pay.
(22) "Service" shall mean services rendered to the state of
Washington or any political subdivisions thereof for which compensation
has been paid. Full time employment for seventy or more hours in any
given calendar month shall constitute one month of service. An
employee who is reinstated in accordance with RCW 43.43.110 shall
suffer no loss of service for the period reinstated subject to the
contribution requirements of this chapter. Only months of service
shall be counted in the computation of any retirement allowance or
other benefit provided for herein. Years of service shall be
determined by dividing the total number of months of service by twelve.
Any fraction of a year of service as so determined shall be taken into
account in the computation of such retirement allowance or benefit.
(23) "State actuary" or "actuary" means the person appointed
pursuant to RCW 44.44.010(2).
(24) "State treasurer" means the treasurer of the state of
Washington.
Unless the context expressly indicates otherwise, words importing
the masculine gender shall be extended to include the feminine gender
and words importing the feminine gender shall be extended to include
the masculine gender.
NEW SECTION. Sec. 17 A new section is added to chapter 41.50 RCW
to read as follows:
State agencies and institutions, as directed by the office of
financial management, shall remit amounts representing the employer
contributions related to compensation reductions under section 1 of
this act to the director of retirement systems for deposit in the
appropriate pension accounts.
Sec. 18 RCW 41.45.070 and 2009 c 561 s 4 are each amended to read
as follows:
(1) In addition to the basic employer contribution rate established
in RCW 41.45.060 or 41.45.054, the department shall also charge
employers of public employees' retirement system, teachers' retirement
system, school employees' retirement system, public safety employees'
retirement system, or Washington state patrol retirement system members
an additional supplemental rate to pay for the cost of additional
benefits, if any, granted to members of those systems. Except as
provided in subsections (6), (7), and (9) of this section, the
supplemental contribution rates required by this section shall be
calculated by the state actuary and shall be charged regardless of
language to the contrary contained in the statute which authorizes
additional benefits.
(2) In addition to the basic member, employer, and state
contribution rate established in RCW 41.45.0604 for the law enforcement
officers' and firefighters' retirement system plan 2, the department
shall also establish supplemental rates to pay for the cost of
additional benefits, if any, granted to members of the law enforcement
officers' and firefighters' retirement system plan 2. Except as
provided in subsection (6) of this section, these supplemental rates
shall be calculated by the actuary retained by the law enforcement
officers' and firefighters' board and the state actuary through the
process provided in RCW 41.26.720(1)(a) and the state treasurer shall
transfer the additional required contributions regardless of language
to the contrary contained in the statute which authorizes the
additional benefits.
(3) Beginning July 1, 2009, the supplemental rate charged under
this section to fund benefit increases provided to active members of
the public employees' retirement system plan 1 and the teachers'
retirement system plan 1 shall be calculated as the level percentage of
all system pay needed to fund the cost of the benefit over a fixed ten-year period, using projected future salary growth and growth in system
membership. The supplemental rate to fund benefit increases provided
to active members of the public employees' retirement system plan 1
shall be charged to all system employers in the public employees'
retirement system, the school employees' retirement system, and the
public safety employees' retirement system. The supplemental rate to
fund benefit increases provided to active members of the teachers'
retirement system plan 1 shall be charged to all system employers in
the teachers' retirement system.
(4) The supplemental rate charged under this section to fund
benefit increases provided to active and retired members of the public
employees' retirement system plan 2 and plan 3, the teachers'
retirement system plan 2 and plan 3, the public safety employees'
retirement system plan 2, the school employees' retirement system plan
2 and plan 3, or the Washington state patrol retirement system shall be
calculated as the level percentage of all members' pay needed to fund
the cost of the benefit, as calculated under RCW 41.45.060, 41.45.061,
41.45.0631, or 41.45.067.
(5) The supplemental rate charged under this section to fund
postretirement adjustments which are provided on a nonautomatic basis
to current retirees shall be calculated as the percentage of pay needed
to fund the adjustments as they are paid to the retirees. Beginning
July 1, 2009, the supplemental rate charged under this section to fund
increases in the automatic postretirement adjustments for active or
retired members of the public employees' retirement system plan 1 and
the teachers' retirement system plan 1 shall be calculated as the level
percentage of pay needed to fund the cost of the automatic adjustments
over a fixed ten-year period, using projected future salary growth and
growth in system membership. The supplemental rate to fund increases
in the automatic postretirement adjustments for active members or
retired members of the public employees' retirement system plan 1 shall
be charged to all system employers in the public employees' retirement
system, the school employees' retirement system, and the public safety
employees' retirement system. The supplemental rate to fund increases
in automatic postretirement adjustments for active members or retired
members of the teachers' retirement system plan 1 shall be charged to
all system employers in the teachers' retirement system.
(6) A supplemental rate shall not be charged to pay for the cost of
additional benefits granted to members pursuant to chapter 340, Laws of
1998.
(7) A supplemental rate shall not be charged to pay for the cost of
additional benefits granted to members pursuant to chapter 41.31A RCW;
section 309, chapter 341, Laws of 1998; or section 701, chapter 341,
Laws of 1998.
(8) A supplemental rate shall not be charged to pay for the cost of
additional benefits granted to members and survivors pursuant to
chapter 94, Laws of 2006.
(9) A supplemental rate shall not be charged to pay for the cost of
the additional benefits granted to members of the teachers' retirement
system and the school employees' retirement system plans 2 and 3 in
sections 2, 4, 6, and 8, chapter 491, Laws of 2007 until September 1,
2008. A supplemental rate shall not be charged to pay for the cost of
the additional benefits granted to members of the public employees'
retirement system plans 2 and 3 under sections 9 and 10, chapter 491,
Laws of 2007 until July 1, 2008.
(10) During the 2011-2013 fiscal biennium, a supplemental rate
shall not be charged to pay for the cost of including forgone
compensation in final average compensation for members employed by
state agencies and institutions due to salary reductions under section
1 of this act, in recognition of the remittances made by those agencies
and institutions to the director of retirement systems for deposit in
the appropriate pension accounts.
NEW SECTION. Sec. 19 The director of the department of personnel
and the director of the department of retirement systems shall adopt
rules as necessary to implement the salary reductions and pension
provisions of this act.
NEW SECTION. Sec. 20 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
July 1, 2011.