HOUSE BILL REPORT

SHB 424

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Jacobsen, Appelwick, Allen, Cole, P. King, Ebersole, Valle, Hine, Belcher and Rayburn)

Providing for service credit for school district employees under the public employees' retirement system.

House Committe on Ways & Means/Appropriations

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (23)

     Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, L. Smith, H. Sommers, Sprenkle and B. Williams.

House Staff:Randy Acker (786-7153)

AS PASSED HOUSE MARCH 13, 1987

BACKGROUND:

Classified employees of school districts (i.e., bus drivers, cafeteria staff, etc.) are members of the Public Employees Retirement System (PERS).  Members of PERS Plan I (PERS I) must generally work 70 or more hours in a month to earn service credit for that month; members of PERS, Plan II (PERS II) must work 90 or more hours.

In 1973 PERS was amended (RCW 41.40.450) to allow a member who is employed by a school district on a continuing nine month basis and who earns nine months of credit in a fiscal year to receive twelve months of credit for that year.  The change applies to both PERS I and PERS II, but it was not made effective for years of employment prior to 1973.  Members of the Teachers' Retirement System, Plans I and II, have received a full year of service credit for nine months employment since 1947.

SUMMARY:

Persons employed by a school district after the effective date of the bill shall receive twelve months credit for nine months service pursuant to RCW 41.40.450 for all prior years of service with a school district.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Dorothy Wickland, Seattle School District employee.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Cafeteria employees and other classified staff are not highly paid and ought to be able to receive retirement credit for the summer months like other K-12 employees.

House Committee - Testimony Against: None Presented.