HOUSE BILL REPORT

SB 5513

BYSenators Gaspard and Johnson; by request of Department of Retirement Systems

Revising provisions relating to withdrawal, restoration, and interest on state patrol retirement contributions.

House Committe on Transportation

Majority Report:  Do pass.  (19)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Cantwell, Dellwo, Doty, Fisch, Fisher, Gallagher, Hankins, Haugen, Heavey, Kremen, Meyers, Patrick, Schmidt, D. Sommers, Spanel, Todd and Zellinsky.

House Staff:Larry Plummer (786-7321)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:  Do pass.  (14)

      Signed by Representatives Locke, Chair; Allen, Belcher, Brekke, Grant, Grimm, McLean, Nealey, Sayan, Silver, L. Smith, H. Sommers, Sprenkle and B. Williams.

House Staff:      Randy Acker (786-7153)

AS PASSED HOUSE APRIL 17, 1987

BACKGROUND:

Current statute regarding the Washington State Patrol Retirement System (WSPRS) provides that restoration of withdrawn contributions must be done within four years of reentry into WSPRS to include earned interest, and that 2.5 percent interest be credited annually to the member's account.  The other retirement systems of the state provide a five-year restoration period and that interest, determined by the director, Department of Retirement Systems (DRS), be paid from the date of withdrawal.  The interest credited to the member accounts of the other systems of the state is determined by the director, DRS, and is currently set at 5.5 percent.

SUMMARY:

The period for a member of Washington State Patrol Retirement System (WSPRS) to restore withdrawn contributions is extended from four years to five years.  Interest is to be paid on such restored contributions from the date of withdrawal at a rate determined by the director, Department of Retirement Systems (DRS).

Interest credited to the WSPRS member's account is revised from 2.5 percent to a rate determined by the director, Department of Retirement Systems.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    (Transportation)  Dr. Robert Hollister, Director, Department of Retirement Systems.

(Ways & Means/Appropriations)  Sheryl Wilson, Department of Retirement Systems.

House Committee - Testified Against:      (Transportation)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:    (Transportation)  This bill will allow Washington State Patrol employees' retirement accounts to be treated in the same manner as other state employees' retirement accounts with regard to the interest rate credited and the requirements for restoring withdrawn contributions.

(Ways & Means/Appropriations)  This bill will bring the WSP retirement system into conformity with the other state retirement systems with regard to interest credited to member accounts and restoration of withdrawn contributions.

House Committee - Testimony Against:      (Transportation)  None Presented.

(Ways & Means/Appropriations)  None Presented.