BILL REQ. #: H-3142.1
State of Washington | 63rd Legislature | 2014 Regular Session |
Read first time 01/20/14. Referred to Committee on Appropriations.
AN ACT Relating to survivor benefits from the public employees' retirement system for survivors of members in registered domestic partnerships prior to December 2012; and amending RCW 41.40.660 and 41.40.845.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.40.660 and 2003 c 294 s 6 are each amended to read
as follows:
(1) Upon retirement for service as prescribed in RCW 41.40.630 or
retirement for disability under RCW 41.40.670, a member shall elect to
have the retirement allowance paid pursuant to one of the following
options, calculated so as to be actuarially equivalent to each other.
(a) Standard allowance. A member electing this option shall
receive a retirement allowance payable throughout such member's life.
However, if the retiree dies before the total of the retirement
allowance paid to such retiree equals the amount of such retiree's
accumulated contributions at the time of retirement, then the balance
shall be paid to the member's estate, or such person or persons, trust,
or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be
no such designated person or persons still living at the time of the
retiree's death, then to the surviving spouse; or if there be neither
such designated person or persons still living at the time of death nor
a surviving spouse, then to the retiree's legal representative.
(b) The department shall adopt rules that allow a member to select
a retirement option that pays the member a reduced retirement allowance
and upon death, such portion of the member's reduced retirement
allowance as the department by rule designates shall be continued
throughout the life of and paid to a person nominated by the member by
written designation duly executed and filed with the department at the
time of retirement. The options adopted by the department shall
include, but are not limited to, a joint and one hundred percent
survivor option and a joint and fifty percent survivor option.
(2)(a) A member, if married, must provide the written consent of
his or her spouse to the option selected under this section, except as
provided in (b) of this subsection. If a member is married and both
the member and the member's spouse do not give written consent to an
option under this section, the department shall pay a joint and fifty
percent survivor benefit calculated to be actuarially equivalent to the
benefit options available under subsection (1) of this section unless
spousal consent is not required as provided in (b) of this subsection.
(b) If a copy of a dissolution order designating a survivor
beneficiary under RCW 41.50.790 has been filed with the department at
least thirty days prior to a member's retirement:
(i) The department shall honor the designation as if made by the
member under subsection (1) of this section; and
(ii) The spousal consent provisions of (a) of this subsection do
not apply.
(3)(a) Any member who retired before January 1, 1996, and who
elected to receive a reduced retirement allowance under subsection
(1)(b) or (2) of this section is entitled to receive a retirement
allowance adjusted in accordance with (b) of this subsection, if they
meet the following conditions:
(i) The retiree's designated beneficiary predeceases or has
predeceased the retiree; and
(ii) The retiree provides to the department proper proof of the
designated beneficiary's death.
(b) The retirement allowance payable to the retiree, as of July 1,
1998, or the date of the designated beneficiary's death, whichever
comes last, shall be increased by the percentage derived in (c) of this
subsection.
(c) The percentage increase shall be derived by the following:
(i) One hundred percent multiplied by the result of (c)(ii) of this
subsection converted to a percent;
(ii) Subtract one from the reciprocal of the appropriate joint and
survivor option factor;
(iii) The joint and survivor option factor shall be from the table
in effect as of July 1, 1998.
(d) The adjustment under (b) of this subsection shall accrue from
the beginning of the month following the date of the designated
beneficiary's death or from July 1, 1998, whichever comes last.
(4) No later than July 1, 2001, the department shall adopt rules
that allow a member additional actuarially equivalent survivor benefit
options, and shall include, but are not limited to:
(a)(i) A retired member who retired without designating a survivor
beneficiary shall have the opportunity to designate their spouse from
a postretirement marriage as a survivor during a one-year period
beginning one year after the date of the postretirement marriage
provided the retirement allowance payable to the retiree is not subject
to periodic payments pursuant to a property division obligation as
provided for in RCW 41.50.670.
(ii) A member who entered into a postretirement marriage prior to
the effective date of the rules adopted pursuant to this subsection and
satisfies the conditions of (a)(i) of this subsection shall have one
year to designate their spouse as a survivor beneficiary following the
adoption of the rules.
(b) A retired member who elected to receive a reduced retirement
allowance under this section and designated a nonspouse as survivor
beneficiary shall have the opportunity to remove the survivor
designation and have their future benefit adjusted.
(c) The department may make an additional charge, if necessary, to
ensure that the benefits provided under this subsection remain
actuarially equivalent.
(5) No later than July 1, 2003, the department shall adopt rules to
permit:
(a) A court-approved property settlement incident to a court decree
of dissolution made before retirement to provide that benefits payable
to a member who meets the length of service requirements of RCW
41.40.720 and the member's divorcing spouse be divided into two
separate benefits payable over the life of each spouse.
The member shall have available the benefit options of subsection
(1) of this section upon retirement, and if remarried at the time of
retirement remains subject to the spousal consent requirements of
subsection (2) of this section. Any reductions of the member's benefit
subsequent to the division into two separate benefits shall be made
solely to the separate benefit of the member.
The nonmember ex spouse shall be eligible to commence receiving
their separate benefit upon reaching the age provided in RCW
41.40.630(1) and after filing a written application with the
department.
(b) A court-approved property settlement incident to a court decree
of dissolution made after retirement may only divide the benefit into
two separate benefits payable over the life of each spouse if the
nonmember ex spouse was selected as a survivor beneficiary at
retirement.
The retired member may later choose the survivor benefit options
available in subsection (4) of this section. Any actuarial reductions
subsequent to the division into two separate benefits shall be made
solely to the separate benefit of the member.
Both the retired member and the nonmember divorced spouse shall be
eligible to commence receiving their separate benefits upon filing a
copy of the dissolution order with the department in accordance with
RCW 41.50.670.
(c) The department may make an additional charge or adjustment if
necessary to ensure that the separate benefits provided under this
subsection are actuarially equivalent to the benefits payable prior to
the decree of dissolution.
(6)(a) No later than July 1, 2014, the department shall adopt rules
to permit the spouse of a member who: (i) Was a registered domestic
partner of the member prior to December 1, 2008; (ii) was married to
the deceased member prior to January 1, 2013; (iii) was the designated
beneficiary of the member; and (iv) was predeceased by the member prior
to January 1, 2014, the opportunity to designate themselves as a
postretirement marriage survivor between July 1, 2014, and December 31,
2014, provided the retirement allowance payable to the retiree is not
subject to periodic payments pursuant to a property division obligation
as provided for in RCW 41.50.670.
(b) The survivor benefit payable to a member meeting the
requirements of (a) of this subsection is the equivalent of a joint and
fifty percent survivor option, and is not payable until the surviving
spouse reimburses the department for any accumulated contributions
previously paid to the surviving spouse as the designated beneficiary
of the member.
Sec. 2 RCW 41.40.845 and 2003 c 294 s 9 are each amended to read
as follows:
(1) Upon retirement for service as prescribed in RCW 41.40.820 or
retirement for disability under RCW 41.40.825, a member shall elect to
have the retirement allowance paid pursuant to one of the following
options, calculated so as to be actuarially equivalent to each other.
(a) Standard allowance. A member electing this option shall
receive a retirement allowance payable throughout such member's life.
Upon the death of the member, the member's benefits shall cease.
(b) The department shall adopt rules that allow a member to select
a retirement option that pays the member a reduced retirement allowance
and upon death, such portion of the member's reduced retirement
allowance as the department by rule designates shall be continued
throughout the life of and paid to a person nominated by the member by
written designation duly executed and filed with the department at the
time of retirement. The options adopted by the department shall
include, but are not limited to, a joint and one hundred percent
survivor option and a joint and fifty percent survivor option.
(2)(a) A member, if married, must provide the written consent of
his or her spouse to the option selected under this section, except as
provided in (b) of this subsection. If a member is married and both
the member and the member's spouse do not give written consent to an
option under this section, the department shall pay a joint and fifty
percent survivor benefit calculated to be actuarially equivalent to the
benefit options available under subsection (1) of this section unless
spousal consent is not required as provided in (b) of this subsection.
(b) If a copy of a dissolution order designating a survivor
beneficiary under RCW 41.50.790 has been filed with the department at
least thirty days prior to a member's retirement:
(i) The department shall honor the designation as if made by the
member under subsection (1) of this section; and
(ii) The spousal consent provisions of (a) of this subsection do
not apply.
(3) No later than July 1, 2002, the department shall adopt rules
that allow a member additional actuarially equivalent survivor benefit
options, and shall include, but are not limited to:
(a)(i) A retired member who retired without designating a survivor
beneficiary shall have the opportunity to designate their spouse from
a postretirement marriage as a survivor during a one-year period
beginning one year after the date of the postretirement marriage
provided the retirement allowance payable to the retiree is not subject
to periodic payments pursuant to a property division obligation as
provided for in RCW 41.50.670.
(ii) A member who entered into a postretirement marriage prior to
the effective date of the rules adopted under this section and
satisfies the conditions of (a)(i) of this subsection shall have one
year to designate their spouse as a survivor beneficiary following the
adoption of the rules.
(b) A retired member who elected to receive a reduced retirement
allowance under this section and designated a nonspouse as survivor
beneficiary shall have the opportunity to remove the survivor
designation and have their future benefit adjusted.
(c) The department may make an additional charge, if necessary, to
ensure that the benefits provided under this subsection remain
actuarially equivalent.
(4) No later than July 1, 2003, the department shall adopt rules to
permit:
(a) A court-approved property settlement incident to a court decree
of dissolution made before retirement to provide that benefits payable
to a member who meets the length of service requirements of RCW
41.40.820(1) and the member's divorcing spouse be divided into two
separate benefits payable over the life of each spouse.
The member shall have available the benefit options of subsection
(1) of this section upon retirement, and if remarried at the time of
retirement remains subject to the spousal consent requirements of
subsection (2) of this section. Any reductions of the member's benefit
subsequent to the division into two separate benefits shall be made
solely to the separate benefit of the member.
The nonmember ex spouse shall be eligible to commence receiving
their separate benefit upon reaching the age provided in RCW
41.40.820(1) and after filing a written application with the
department.
(b) A court-approved property settlement incident to a court decree
of dissolution made after retirement may only divide the benefit into
two separate benefits payable over the life of each spouse if the
nonmember ex spouse was selected as a survivor beneficiary at
retirement.
The retired member may later choose the survivor benefit options
available in subsection (3) of this section. Any actuarial reductions
subsequent to the division into two separate benefits shall be made
solely to the separate benefit of the member.
Both the retired member and the nonmember divorced spouse shall be
eligible to commence receiving their separate benefits upon filing a
copy of the dissolution order with the department in accordance with
RCW 41.50.670.
(c) Any benefit distributed under chapter 41.31A RCW after the date
of the dissolution order creating separate benefits for a member and
nonmember ex spouse shall be paid solely to the member.
(d) The department may make an additional charge or adjustment if
necessary to ensure that the separate benefits provided under this
subsection are actuarially equivalent to the benefits payable prior to
the decree of dissolution.
(5)(a) No later than July 1, 2014, the department shall adopt rules
to permit the spouse of a member who: (i) Was a registered domestic
partner of the member prior to December 1, 2008; (ii) was married to
the deceased member prior to January 1, 2013; (iii) was the designated
beneficiary of the member; and (iv) was predeceased by the member prior
to January 1, 2014, the opportunity to designate themselves as a
postretirement marriage survivor between July 1, 2014, and December 31,
2014, provided the retirement allowance payable to the retiree is not
subject to periodic payments pursuant to a property division obligation
as provided for in RCW 41.50.670.
(b) The survivor benefit payable to a member meeting the
requirements of (a) of this subsection is the equivalent of a joint and
fifty percent survivor option, and is not payable until the surviving
spouse reimburses the department for any accumulated contributions
previously paid to the surviving spouse as the designated beneficiary
of the member.