CERTIFICATION OF ENROLLMENT

SENATE BILL 6321

Chapter 95, Laws of 2014

63rd Legislature
2014 Regular Session



PUBLIC EMPLOYEES--RETIREMENT--CONTRIBUTION RATE OPTIONS



EFFECTIVE DATE: 06/12/14

Passed by the Senate February 13, 2014
  YEAS 49   NAYS 0

BRAD OWEN
________________________________________    
President of the Senate
Passed by the House March 7, 2014
  YEAS 95   NAYS 3

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


 
CERTIFICATE

I, Hunter G. Goodman, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 6321 as passed by the Senate and the House of Representatives on the dates hereon set forth.

HUNTER G. GOODMAN
________________________________________    
Secretary
Approved March 27, 2014, 10:54 a.m.








JAY INSLEE
________________________________________    
Governor of the State of Washington		 
FILED
March 27, 2014







Secretary of State
State of Washington


_____________________________________________ 

SENATE BILL 6321
_____________________________________________

Passed Legislature - 2014 Regular Session
State of Washington63rd Legislature2014 Regular Session

By Senators Bailey and Conway; by request of Select Committee on Pension Policy

Read first time 01/21/14.   Referred to Committee on Ways & Means.



     AN ACT Relating to removing the statutory provision that allows members of plan 3 of the public employees' retirement system, school employees' retirement system, and teachers' retirement system to select a new contribution rate option each year; and amending RCW 41.34.040.

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

Sec. 1   RCW 41.34.040 and 2010 1st sp.s. c 7 s 32 are each amended to read as follows:
     (1) A member shall contribute from his or her compensation according to one of the following rate structures in addition to the mandatory minimum five percent:

Option AContribution Rate
All Ages0.0% fixed
Option B
Up to Age 350.0%
Age 35 to 441.0%
Age 45 and above 2.5%
Option C
Up to Age 351.0%
Age 35 to 442.5%
Age 45 and above3.5%
Option D
All Ages2.0%
Option E
All Ages5.0%
Option F
All Ages10.0%


     (2) The department shall have the right to offer contribution rate options in addition to those listed in subsection (1) of this section, provided that no significant additional administrative costs are created. All options offered by the department shall conform to the requirements stated in subsections (3) and (5) of this section.
     (3)(a) For members of the teachers' retirement system entering plan 3 under RCW 41.32.835 or members of the school employees' retirement system entering plan 3 under RCW 41.35.610, within ninety days of becoming a member he or she has an option to choose one of the above contribution rate structures. If the member does not select an option within the ninety-day period, he or she shall be assigned option A.
     (b) For members of the public employees' retirement system entering plan 3 under RCW 41.40.785, within the ninety days described in RCW 41.40.785 an employee who irrevocably chooses plan 3 shall select one of the above contribution rate structures. If the member does not select an option within the ninety-day period, he or she shall be assigned option A.
     (c) For members of the teachers' retirement system transferring to plan 3 under RCW 41.32.817, members of the school employees' retirement system transferring to plan 3 under RCW 41.35.510, or members of the public employees' retirement system transferring to plan 3 under RCW 41.40.795, upon election to plan 3 he or she must choose one of the above contribution rate structures.
     (d) Within ninety days of the date that an employee changes employers, he or she has an option to choose one of the above contribution rate structures. If the member does not select an option within this ninety-day period, he or she shall be assigned option A.
     (4) Each year, through January of 2015, members of plan 3 of the teachers' retirement system may change their contribution rate option by notifying their employer in writing during the month of January. After January of 2015, a member of plan 3 of the teachers' retirement system may only change their contribution rate option under subsection (3)(d) of this section. The termination of this annual contribution rate change option in January 2015 is required to meet the plan qualification requirements in section 401(a) of the internal revenue code. Consistent with plan qualification requirements in the internal revenue code, this annual contribution rate change has never been available to plan 3 members of the public employees' retirement system and the school employees' retirement system.
     (5) Contributions shall begin the first day of the pay cycle in which the rate option is made, or the first day of the pay cycle in which the end of the ninety-day period occurs.


         Passed by the Senate February 13, 2014.
         Passed by the House March 7, 2014.
         Approved by the Governor March 27, 2014.
         Filed in Office of Secretary of State March 27, 2014.