BILL REQ. #: H-3667.1
_____________________________________________
HOUSE BILL 2735
_____________________________________________| State of Washington | 63rd Legislature | 2014 Regular Session |
By Representatives Robinson, Sells, Green, Appleton, S. Hunt, Bergquist, Ryu, Gregerson, and OrmsbyRead first time 01/29/14. Referred to Committee on Appropriations.
AN ACT Relating to reducing the retirement or early retirement age
of members of the public employees' retirement systems plan 2 and plan
3; and amending RCW 41.40.630 and 41.40.820.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.40.630 and 2012 1st sp.s. c 7 s 5 are each amended
to read as follows:
(1) NORMAL RETIREMENT. Any member with at least five service
credit years who has attained at least age sixty-five shall be eligible
to retire and to receive a retirement allowance computed according to
the provisions of RCW 41.40.620.
(2) EARLY RETIREMENT. Any member who has completed at least twenty
service credit years and has attained age fifty-five shall be eligible
to retire and to receive a retirement allowance computed according to
the provisions of RCW 41.40.620, except that a member retiring pursuant
to this subsection shall have the retirement allowance actuarially
reduced to reflect the difference in the number of years between age at
retirement and the attainment of age sixty-five.
(3) ALTERNATE EARLY RETIREMENT.
(a) Any member who has completed at least thirty service credit
years and has attained age fifty-five shall be eligible to retire and
to receive a retirement allowance computed according to the provisions
of RCW 41.40.620, except that a member retiring pursuant to this
subsection shall have the retirement allowance reduced by three percent
per year to reflect the difference in the number of years between age
at retirement and the attainment of age sixty-five.
(b) On or after July 1, 2008, any member who has completed at least
thirty service credit years and has attained age fifty-five shall be
eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.40.620, except that a member
retiring pursuant to this subsection shall have the retirement
allowance reduced as follows:
Retirement
Age | Percent
Reduction |
| 55 | 20% | |
| 56 | 17% | |
| 57 | 14% | |
| 58 | 11% | |
| 59 | 8% | |
| 60 | 5% | |
| 61 | 2% | |
| 62 | 0% | |
| 63 | 0% | |
| 64 | 0% | |
Any member who retires under the provisions of this subsection is
ineligible for the postretirement employment provisions of RCW
41.40.037(2)(d) until the retired member has reached sixty-five years
of age. For purposes of this subsection, employment with an employer
also includes any personal service contract, service by an employer as
a temporary or project employee, or any other similar compensated
relationship with any employer included under the provisions of RCW
41.40.690(1).
The subsidized reductions for alternate early retirement in this
subsection as set forth in section 9, chapter 491, Laws of 2007 were
intended by the legislature as replacement benefits for gain-sharing.
Until there is legal certainty with respect to the repeal of chapter
41.31A RCW, the right to retire under this subsection is
noncontractual, and the legislature reserves the right to amend or
repeal this subsection. Legal certainty includes, but is not limited
to, the expiration of any: Applicable limitations on actions; and
periods of time for seeking appellate review, up to and including
reconsideration by the Washington supreme court and the supreme court
of the United States. Until that time, eligible members may still
retire under this subsection, and upon receipt of the first installment
of a retirement allowance computed under this subsection, the resulting
benefit becomes contractual for the recipient. If the repeal of
chapter 41.31A RCW is held to be invalid in a final determination of a
court of law, and the court orders reinstatement of gain-sharing or
other alternate benefits as a remedy, then retirement benefits for any
member who has completed at least thirty service credit years and has
attained age fifty-five but has not yet received the first installment
of a retirement allowance under this subsection shall be computed using
the reductions in (a) of this subsection.
(c) Members who first become employed by an employer in an eligible
position on or after May 1, 2013, are not eligible for the alternate
early retirement provisions of (a) or (b) of this subsection. Any
member who first becomes employed by an employer in an eligible
position on or after May 1, 2013, and has completed at least thirty
service credit years and has attained age fifty-five shall be eligible
to retire and to receive a retirement allowance computed according to
the provisions of RCW 41.40.620, except that a member retiring pursuant
to this subsection shall have the retirement allowance reduced by five
percent per year to reflect the difference in the number of years
between age at retirement and the attainment of age sixty-five.
(4) The retirement, early retirement, or alternate early retirement
age applied to a member retiring under this section shall be reduced by
up to two years for any period that a member served in the uniformed
service of the United States.
Sec. 2 RCW 41.40.820 and 2012 1st sp.s. c 7 s 6 are each amended
to read as follows:
(1) NORMAL RETIREMENT. Any member who is at least age sixty-five
and who has:
(a) Completed ten service credit years; or
(b) Completed five service credit years, including twelve service
credit months after attaining age forty-four; or
(c) Completed five service credit years by the transfer payment
date specified in RCW 41.40.795, under the public employees' retirement
system plan 2 and who transferred to plan 3 under RCW 41.40.795;
shall be eligible to retire and to receive a retirement allowance
computed according to the provisions of RCW 41.40.790.
(2) EARLY RETIREMENT. Any member who has attained at least age
fifty-five and has completed at least ten years of service shall be
eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.40.790, except that a member
retiring pursuant to this subsection shall have the retirement
allowance actuarially reduced to reflect the difference in the number
of years between age at retirement and the attainment of age sixty-five.
(3) ALTERNATE EARLY RETIREMENT.
(a) Any member who has completed at least thirty service credit
years and has attained age fifty-five shall be eligible to retire and
to receive a retirement allowance computed according to the provisions
of RCW 41.40.790, except that a member retiring pursuant to this
subsection shall have the retirement allowance reduced by three percent
per year to reflect the difference in the number of years between age
at retirement and the attainment of age sixty-five.
(b) On or after July 1, 2008, any member who has completed at least
thirty service credit years and has attained age fifty-five shall be
eligible to retire and to receive a retirement allowance computed
according to the provisions of RCW 41.40.790, except that a member
retiring pursuant to this subsection shall have the retirement
allowance reduced as follows:
Retirement
Age | Percent
Reduction |
| 55 | 20% | |
| 56 | 17% | |
| 57 | 14% | |
| 58 | 11% | |
| 59 | 8% | |
| 60 | 5% | |
| 61 | 2% | |
| 62 | 0% | |
| 63 | 0% | |
| 64 | 0% | |
Any member who retires under the provisions of this subsection is
ineligible for the postretirement employment provisions of RCW
41.40.037(2)(d) until the retired member has reached sixty-five years
of age. For purposes of this subsection, employment with an employer
also includes any personal service contract, service by an employer as
a temporary or project employee, or any other similar compensated
relationship with any employer included under the provisions of RCW
41.40.850(1).
The subsidized reductions for alternate early retirement in this
subsection as set forth in section 10, chapter 491, Laws of 2007 were
intended by the legislature as replacement benefits for gain-sharing.
Until there is legal certainty with respect to the repeal of chapter
41.31A RCW, the right to retire under this subsection is
noncontractual, and the legislature reserves the right to amend or
repeal this subsection. Legal certainty includes, but is not limited
to, the expiration of any: Applicable limitations on actions; and
periods of time for seeking appellate review, up to and including
reconsideration by the Washington supreme court and the supreme court
of the United States. Until that time, eligible members may still
retire under this subsection, and upon receipt of the first installment
of a retirement allowance computed under this subsection, the resulting
benefit becomes contractual for the recipient. If the repeal of
chapter 41.31A RCW is held to be invalid in a final determination of a
court of law, and the court orders reinstatement of gain-sharing or
other alternate benefits as a remedy, then retirement benefits for any
member who has completed at least thirty service credit years and has
attained age fifty-five but has not yet received the first installment
of a retirement allowance under this subsection shall be computed using
the reductions in (a) of this subsection.
(c) Members who first become employed by an employer in an eligible
position on or after May 1, 2013, are not eligible for the alternate
early retirement provisions of (a) or (b) of this subsection. Any
member who first becomes employed by an employer in an eligible
position on or after May 1, 2013, and has completed at least thirty
service credit years and has attained age fifty-five shall be eligible
to retire and to receive a retirement allowance computed according to
the provisions of RCW 41.40.790, except that a member retiring pursuant
to this subsection shall have the retirement allowance reduced by five
percent per year to reflect the difference in the number of years
between age at retirement and the attainment of age sixty-five.
(4) The retirement, early retirement, or alternate early retirement
age applied to a member retiring under this section shall be reduced by
up to two years for any period that a member served in the uniformed
service of the United States.
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