HOUSE BILL REPORT

SHB 632

BYHouse Committee on Constitution, Elections & Ethics (originally sponsored by Representatives Fisch, Winsley, Day, R. King, Fisher, Baugher, Lux and Crane)

Authorizing retirement allowance deductions for political committee dues.

House Committe on Constitution, Elections & Ethics

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (6)

     Signed by Representatives Fisher, Chair; Pruitt, Vice Chair; Amondson, Fisch, Leonard and Sanders.

Minority Report:     Do not pass.  (1)

     Signed by Representative Barnes.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE MARCH 18, 1987

BACKGROUND:

With certain exceptions, the right of a person to a pension, annuity, or retirement allowance under the state's Public Employees' Retirement System is unassignable.  This prohibition of state law does not prohibit a beneficiary of a retirement allowance from authorizing deductions for payment of: (1) premiums due for certain group insurance policies or plans issued for the benefit of public employees and approved by the State Employees' Insurance Board or the Department of Retirement Systems; or (2) dues and other membership fees to any retirement association or organization composed of retired public employees and satisfying certain requirements.

SUMMARY:

A provision of state law is amended which declares that the right of a person to a retirement allowance under the state's Public Employees' Retirement System is, with certain exceptions, unassignable.  This prohibition against assigning such an allowance does not prohibit a beneficiary from authorizing voluntary deductions for a political committee of an association or organization of retired public employees which is qualified to receive such deductions itself or to voluntary deductions for a political committee of a national affiliate of such an association or organization.  Such a political committee must be registered with the Public Disclosure Commission and/or the Federal Election Commission.  The name and address of such a political committee shall be submitted to the Department of Retirement Systems by the governing body of a qualifying retirement association or organization.  Verification that the political committee is registered and remains designated by such a governing body shall be submitted to the department annually.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Richard Bever, Retired Public Employees' Council.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     The bill would permit retired employees to authorize deductions for a national political committee to represent their interests on social security, medicare, and similar subjects.

House Committee - Testimony Against: The bill will encourage people to give up personal choices by encouraging them to give money to a political committee.