Volunteer firefighters/DCP

AN ACT Relating to volunteer firefighter participation in the 1
state deferred compensation program; and amending RCW 41.50.770.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 41.50.770 and 2022 c 72 s 1 are each amended to read 4
as follows: 5
(1) "Employee" as used in this section and RCW 41.50.780 includes 6
all full-time, part-time, and career seasonal employees of the state, 7
a county, a municipality, or other political subdivision of the 8
state, whether or not covered by civil service; elected and appointed 9
officials of the executive branch of the government, including full-10
time members of boards, commissions, or committees; justices of the 11
supreme court and judges of the court of appeals and of the superior 12
and district courts; volunteer firefighter participants under RCW 13
41.24.010(8)(a); and members of the state legislature or of the 14
legislative authority of any county, city, or town.15
(2) The state, through the department, and any county, 16
municipality, or other political subdivision of the state acting 17
through its principal supervising official or governing body is 18
authorized to contract with an employee to defer a portion of that 19
employee's income, which deferred portion shall in no event exceed 20
the amount allowable under 26 U.S.C. Sec. 401 (a) or 457, and deposit 21
H-0096.1
HOUSE BILL 1156
State of Washington 69th Legislature 2025 Regular Session
By Representatives Steele, Ormsby, and Hill
Prefiled 01/03/25. Read first time 01/13/25. Referred to Committee
on Appropriations.
p. 1 HB 1156
or invest such deferred portion in a credit union, savings and loan 1
association, bank, or mutual savings bank or purchase life insurance, 2
shares of an investment company, individual securities, or fixed 3
and/or variable annuity contracts from any insurance company or any 4
investment company licensed to contract business in this state.5
(3) Beginning no later than January 1, 2017, all persons newly 6
employed by the state on a full-time basis who are eligible to 7
participate in a deferred compensation plan under 26 U.S.C. Sec. 457 8
shall be enrolled in the state deferred compensation plan unless the 9
employee affirmatively elects to waive participation in the plan. 10
Persons who participate in the plan without having selected a 11
deferral amount or investment option shall contribute three percent 12
of taxable compensation to their plan account which shall be invested 13
in a default option selected by the state investment board in 14
consultation with the director. This subsection does not apply to 15
higher education undergraduate and graduate student employees and 16
shall be administered consistent with the requirements of the federal 17
internal revenue code. 18
(4) Beginning no later than January 1, 2017, any county, 19
municipality, or other political subdivision offering the state 20
deferred compensation plan authorized under this section, may choose 21
to administer the plan with an opt-out feature for new employees as 22
described in subsection (3) of this section. 23
(5) Beginning no later than December 1, 2023, the department must 24
offer employees a Roth option in the deferred compensation plan under 25
26 U.S.C. Sec. 457. 26
(6) Employees participating in the state deferred compensation 27
plan under 26 U.S.C. Sec. 457 or money-purchase retirement savings 28
plan under 26 U.S.C. Sec. 401 (a) administered by the department shall 29
self-direct the investment of the deferred portion of their income 30
through the selection of investment options as set forth in 31
subsection (7) of this section. 32
(7) The department can provide such plans as it deems are in the 33
interests of state employees. In addition to the types of investments 34
described in this section, the state investment board, with respect 35
to the state deferred compensation plan under 26 U.S.C. Sec. 457 or 36
money-purchase retirement savings plan under 26 U.S.C. Sec. 401 (a), 37
shall invest the deferred portion of an employee's income, without 38
limitation as to amount, in accordance with RCW 43.84.150, 39
43.33A.140, and 41.50.780, and pursuant to investment policy 40
p. 2 HB 1156
established by the state investment board for the state deferred 1
compensation plan under 26 U.S.C. Sec. 457 or money-purchase 2
retirement savings plan under 26 U.S.C. Sec. 401 (a). The state 3
investment board, after consultation with the director regarding any 4
recommendations made pursuant to RCW 41.50.088(2), shall provide a 5
set of options for participants to choose from for investment of the 6
deferred portion of their income. Any income deferred under these 7
plans shall continue to be included as regular compensation, for the 8
purpose of computing the state or local retirement and pension 9
benefits earned by any employee. 10
(8) Any retirement strategy fund asset mix may include investment 11
in a state investment board commingled fund. Retirement strategy fund 12
means one of several diversified asset allocation portfolios managed 13
by investment advisors under contract to the state investment board. 14
The state investment board shall declare unit values for its 15
commingled funds no less than monthly for the funds or portions 16
thereof requiring valuation. The declared values shall be an 17
approximation of portfolio or fund values, and both the values and 18
the frequency of the valuation shall be based on internal procedures 19
of the state investment board. Such declared unit values, the 20
frequency of their valuation, and internal procedures shall be in the 21
sole discretion of the state investment board. The state investment 22
board may delegate any of the powers and duties under this 23
subsection, including discretion, pursuant to RCW 43.33A.030.24
(9) Coverage of an employee or volunteer firefighter under 25
optional salary deferral programs under this section shall not render 26
such employee ineligible for simultaneous membership and 27
participation in any pension system for public employees.28
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p. 3 HB 1156