BILL REQ. #: H-1034.1
State of Washington | 63rd Legislature | 2013 Regular Session |
Read first time 02/18/13. Referred to Committee on Appropriations.
AN ACT Relating to the inclusion of qualified trades people at public utility districts in the Washington public safety employees' retirement system; amending RCW 41.37.010; and adding a new section to chapter 41.37 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.37.010 and 2012 c 236 s 5 are each 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 the state or
a local government employer during the 2011-2013 fiscal biennium as a
result of reduced work hours, mandatory leave without pay, temporary
layoffs, or reductions to current pay if the reduced compensation is an
integral part of the employer's expenditure reduction efforts, as
certified by the employer. Reductions to current pay shall not include
elimination of previously agreed upon future salary increases.
(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, and any public utility district
covered under chapter 54.04 RCW that provides electrical services; any
county corrections department; any city corrections department not
covered under chapter 41.28 RCW; and any public corrections entity
created under RCW 39.34.030 by counties, cities not covered under
chapter 41.28 RCW, or both. Except as otherwise specifically provided
in this chapter, "employer" does not include a government contractor.
For purposes of this subsection, a "government contractor" is any
entity, including a partnership, limited liability company, for-profit
or nonprofit corporation, or person, that provides services pursuant to
a contract with an employer. The determination whether an employer-employee relationship has been established is not based on the
relationship between a government contractor and an employer, but is
based solely on the relationship between a government contractor's
employee and an employer under this chapter.
(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) Who is a qualified trades person and whose primary
responsibility is to:
(i) Construct and maintain electrical transmission lines and
transformers, and restore electricity in the event of an emergency; or
(ii) Provide direct support at a worksite for members as defined in
(d)(i) of this subsection including but not limited to ground workers,
journey level tree trimmers, substation wire workers, and equipment
operators; or
(e) 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.
NEW SECTION. Sec. 2 A new section is added to chapter 41.37 RCW
to read as follows:
(1) An employee of a public utility district who was a member of
the public employees' retirement system plan 2 or plan 3 before January
1, 2014, and on January 1, 2014, is performing the duties as defined in
RCW 41.37.010(19), has the following options during the election period
defined in subsection (2) of this section:
(a) Remain in the public employees' retirement system; or
(b) Become a member of the public safety employees' retirement
system plan 2 and be a dual member as provided in chapter 41.54 RCW,
and public employees' retirement system service credit may not be
transferred to the public safety employees' retirement system.
(2) The "election period" is the period between January 1, 2014,
and March 1, 2014.
(3) During the election period, public utility district employees
remain members of the public employees' retirement system plan 2 or
plan 3 until they elect to join the public safety employees' retirement
system. Members who elect to join the public safety employees'
retirement system as described in subsection (1) of this section will
have their membership begin prospectively from the date of their
election.
(4) If after March 1, 2014, the member has not made an election to
join the public safety employees' retirement system he or she will
remain in the public employees' retirement system plan 2 or plan 3.
(5) An employee who was a member of the public employees'
retirement system plan 1 on or before January 1, 2014, and on or after
January 1, 2014, is employed by an employer as defined in RCW
41.37.010(12) as an employee whose job duties meet the requirements
included in RCW 41.37.010(19), shall remain a member of the public
employees' retirement system plan 1.
(6) All new employees hired on or after January 1, 2014, who become
employed by an employer as defined in RCW 41.37.010(12) as an employee
whose job duties meet the requirements included in RCW 41.37.010(19)
will become members of the public safety employees' retirement system.