Bill Summary – FastDemocracy

S-3544.1
                                 SENATE BILL 6247
     State of Washington         68th Legislature      2024 Regular Session
     By Senators Hunt, Randall, Kuderer, Nobles, Saldaña, Valdez, and C.
     Wilson
     Read first time 01/16/24.   Referred to Committee on Ways & Means.
      AN ACT Relating to public employees' retirement system plan 2
  service credit for officers of labor organizations; and amending RCW
  41.40.710.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1.   RCW 41.40.710 and 2009 c 205 s 1 are each amended to
 read as follows:
     (1) A member who is on a paid leave of absence authorized by a
 member's employer shall continue to receive service credit as
 provided for under the provisions of RCW 41.40.610 through 41.40.740.
     (2)(a) A member who receives compensation from an employer while
 on an authorized leave of absence to serve as an elected official of
 a labor organization, and whose employer is reimbursed by the labor
 organization for the compensation paid to the member during the
 period of absence, may also be considered to be on a paid leave of
 absence. This subsection shall only apply if the member's leave of
 absence is authorized by a collective bargaining agreement that
 provides that the member retains seniority rights with the employer
 during the period of leave. The compensation earnable reported for a
 member who establishes service credit under this subsection may not
 be greater than the salary paid to the highest paid job class covered
 by the collective bargaining agreement.
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     (b) As an alternative to (a) of this subsection, a member on an
 authorized unpaid leave of absence to serve as an elected official of
 a labor organization may receive service credit for the duration of
 the leave if the member, or labor organization on the member's
 behalf, makes both the employer and employee monthly contributions
 for the period of the authorized unpaid leave of absence. This
 subsection shall only apply if the member's leave of absence is
 authorized by a collective bargaining agreement that provides that
 the member retains seniority rights with the employer during the
 period of leave.
     (3) Except as specified in subsection (4) of this section, a
 member shall be eligible to receive a maximum of two years service
 credit during a member's entire working career for those periods when
 a member is on an unpaid leave of absence authorized by an employer.
 Such credit may be obtained only if:
     (a) The member makes both the plan 2 employer and member
 contributions plus interest as determined by the department for the
 period of the authorized leave of absence within five years of
 resumption of service or prior to retirement whichever comes sooner;
 or
     (b) If not within five years of resumption of service but prior
 to retirement, pay the amount required under RCW 41.50.165(2).
     The contributions required under (a) of this subsection shall be
 based on the average of the member's compensation earnable at both
 the time the authorized leave of absence was granted and the time the
 member resumed employment.
     (4) A member who leaves the employ of an employer to enter the
 uniformed services of the United States shall be entitled to
 retirement system service credit for up to five years of military
 service. This subsection shall be administered in a manner consistent
 with the requirements of the federal uniformed services employment
 and reemployment rights act.
     (a) The member qualifies for service credit under this subsection
 if:
     (i) Within ninety days of the member's honorable discharge from
 the uniformed services of the United States, the member applies for
 reemployment with the employer who employed the member immediately
 prior to the member entering the uniformed services; and
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     (ii) The member makes the employee contributions required under
 RCW 41.45.061 and 41.45.067 within five years of resumption of
 service or prior to retirement, whichever comes sooner; or
     (iii) Prior to retirement and not within ninety days of the
 member's honorable discharge or five years of resumption of service
 the member pays the amount required under RCW 41.50.165(2); or
     (iv) Prior to retirement the member provides to the director
 proof that the member's interruptive military service was during a
 period of war as defined in RCW 41.04.005. Any member who made
 payments for service credit for interruptive military service in a
 period of war as defined in RCW 41.04.005 may, prior to retirement
 and on a form provided by the department, request a refund of the
 funds standing to his or her credit for up to five years of such
 service, and this amount shall be paid to him or her. Members with
 one or more periods of interruptive military service during a period
 of war may receive no more than five years of free retirement system
 service credit under this subsection.
     (b) Upon receipt of member contributions under (a)(ii), (d)(iii),
 or (e)(iii) of this subsection, or adequate proof under (a)(iv),
 (d)(iv), or (e)(iv) of this subsection, the department shall
 establish the member's service credit and shall bill the employer for
 its contribution required under RCW 41.45.060, 41.45.061, and
 41.45.067 for the period of military service, plus interest as
 determined by the department.
     (c) The contributions required under (a)(ii), (d)(iii), or
 (e)(iii) of this subsection shall be based on the compensation the
 member would have earned if not on leave, or if that cannot be
 estimated with reasonable certainty, the compensation reported for
 the member in the year prior to when the member went on military
 leave.
     (d) The surviving spouse or eligible child or children of a
 member who left the employ of an employer to enter the uniformed
 services of the United States and died while serving in the uniformed
 services may, on behalf of the deceased member, apply for retirement
 system service credit under this subsection up to the date of the
 member's death in the uniformed services. The department shall
 establish the deceased member's service credit if the surviving
 spouse or eligible child or children:
     (i) Provides to the director proof of the member's death while
 serving in the uniformed services;
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     (ii) Provides to the director proof of the member's honorable
 service in the uniformed services prior to the date of death; and
     (iii) Pays the employee contributions required under chapter
 41.45 RCW within five years of the date of death or prior to the
 distribution of any benefit, whichever comes first; or
     (iv) Prior to the distribution of any benefit, provides to the
 director proof that the member's interruptive military service was
 during a period of war as defined in RCW 41.04.005. If the deceased
 member made payments for service credit for interruptive military
 service during a period of war as defined in RCW 41.04.005, the
 surviving spouse or eligible child or children may, prior to the
 distribution of any benefit and on a form provided by the department,
 request a refund of the funds standing to the deceased member's
 credit for up to five years of such service, and this amount shall be
 paid to the surviving spouse or eligible child or children. Members
 with one or more periods of interruptive military service during a
 period of war may receive no more than five years of free retirement
 system service credit under this subsection.
     (e) A member who leaves the employ of an employer to enter the
 uniformed services of the United States and becomes totally
 incapacitated for continued employment by an employer while serving
 in the uniformed services is entitled to retirement system service
 credit under this subsection up to the date of discharge from the
 uniformed services if:
     (i) The member obtains a determination from the director that he
 or she is totally incapacitated for continued employment due to
 conditions or events that occurred while serving in the uniformed
 services;
     (ii) The member provides to the director proof of honorable
 discharge from the uniformed services; and
     (iii) The member pays the employee contributions required under
 chapter 41.45 RCW within five years of the director's determination
 of total disability or prior to the distribution of any benefit,
 whichever comes first; or
     (iv) Prior to retirement the member provides to the director
 proof that the member's interruptive military service was during a
 period of war as defined in RCW 41.04.005. Any member who made
 payments for service credit for interruptive military service during
 a period of war as defined in RCW 41.04.005 may, prior to retirement
 and on a form provided by the department, request a refund of the
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 funds standing to his or her credit for up to five years of such
 service, and this amount shall be paid to him or her. Members with
 one or more periods of interruptive military service credit during a
 period of war may receive no more than five years of free retirement
 system service credit under this subsection.
                                --- END ---
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Statutes affected: 
Original Bill: 41.40.710