PERS/appeal commissioners

AN ACT Relating to participation in the public employees' 1
retirement system judicial benefit multiplier program by 2
commissioners of the supreme court and court of appeals; and amending 3
RCW 41.40.124, 41.40.767, 41.40.870, and 41.40.877.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 41.40.124 and 2008 c 300 s 1 are each amended to 6
read as follows: 7
(1) Between January 1, 2007, and December 31, 2007, a member of 8
plan 1 or plan 2 employed as a supreme court justice, court of 9
appeals judge, or superior court judge may make a one-time 10
irrevocable election, filed in writing with the member's employer, 11
the department, and the administrative office of the courts, to 12
accrue an additional benefit equal to ((one and one-half )) 1.5 13
percent of average final compensation for each year of future service 14
credit from the date of the election in lieu of future employee and 15
employer contributions to the judicial retirement account plan under 16
chapter 2.14 RCW. 17
(2) A member who made the election under subsection (1) of this 18
section may apply, at the time of filing a written application for 19
retirement with the department, to the department to increase the 20
member's benefit multiplier by an additional ((one and one-half)) 1.5 21
Z-0333.1
HOUSE BILL 1510
State of Washington 69th Legislature 2025 Regular Session
By Representatives Hill, Taylor, Davis, Peterson, Ormsby, Leavitt,
Farivar, Macri, Scott, and Ortiz-Self; by request of Administrative
Office of the Courts
Read first time 01/22/25. Referred to Committee on Appropriations.
p. 1 HB 1510
percent per year of service for the period in which the member served 1
as a justice or judge prior to the election. The member may purchase, 2
beginning with the most recent judicial service, the higher benefit 3
multiplier for that portion of the member's prior judicial service 4
for which the higher benefit multiplier was not previously purchased, 5
and that would ensure that the member has no more than a ((seventy-6
five)) 75 percent of average final compensation benefit. The member 7
shall pay five percent of the salary earned for each month of service 8
for which the higher benefit multiplier is being purchased, plus 9
((five and one-half )) 5.5 percent interest applied from the dates 10
that the service was earned. The purchase price shall not exceed the 11
actuarially equivalent value of the increase in the member's benefit 12
resulting from the increase in the benefit multiplier. This payment 13
must be made prior to retirement, subject to rules adopted by the 14
department. 15
(3) From January 1, 2009, through June 30, 2009, the following 16
members may apply to the department to increase their benefit 17
multiplier by an additional ((one and one-half)) 1.5 percent per year 18
of service for the period in which they served as a justice or judge:19
(a) Active members of plan 1 or plan 2 who are not currently 20
employed as a supreme court justice, court of appeals judge, or 21
superior court judge, and who have past service as a supreme court 22
justice, court of appeals judge, or superior court judge; and23
(b) Inactive vested members of plan 1 or plan 2 who have 24
separated, have not yet retired, and who have past service as a 25
supreme court justice, court of appeals judge, or superior court 26
judge. 27
A member eligible under this subsection may purchase the higher 28
benefit multiplier for all or part of the member's prior judicial 29
service beginning with the most recent judicial service. The member 30
shall pay, for the applicable period of service, the actuarially 31
equivalent value of the increase in the member's benefit resulting 32
from the increase in the benefit multiplier as determined by the 33
director. 34
(4) Subject to rules adopted by the department, a member applying 35
to increase the member's benefit multiplier under this section may 36
pay all or part of the cost with a lump sum payment, eligible 37
rollover, direct rollover, or trustee-to-trustee transfer from an 38
eligible retirement plan. The department shall adopt rules to ensure 39
that all lump sum payments, rollovers, and transfers comply with the 40
p. 2 HB 1510
requirements of the internal revenue code and regulations adopted by 1
the internal revenue service. The rules adopted by the department may 2
condition the acceptance of a rollover or transfer from another plan 3
on the receipt of information necessary to enable the department to 4
determine the eligibility of any transferred funds for tax-free 5
rollover treatment or other treatment under federal income tax law.6
(5) Between January 1, 2026, and April 1, 2026, a member of plan 7
1 or plan 2 employed as a supreme court commissioner or deputy 8
commissioner or court of appeals commissioner may make a one-time 9
irrevocable election, filed in writing with the member's employer, 10
the department, and the administrative office of the courts, to 11
accrue an additional benefit equal to 1.5 percent of average final 12
compensation for each year of future service credit from the date of 13
the election.14
(6) A member who made the election under subsection (5) of this 15
section may apply to the department, at the time of filing a written 16
application for retirement with the department, to increase the 17
member's benefit multiplier by an additional 1.5 percent per year of 18
service for the period in which the member served as a supreme court 19
commissioner or deputy commissioner, or court of appeals commissioner 20
prior to the election. The member may purchase, beginning with the 21
most recent judicial service, the higher benefit multiplier for that 22
portion of the member's prior judicial service for which the higher 23
benefit multiplier was not previously purchased, and that would 24
ensure that the member has no more than a 75 percent of average final 25
compensation benefit. The member shall pay five percent of the salary 26
earned for each month of service for which the higher benefit 27
multiplier is being purchased, plus 5.5 percent interest applied from 28
the dates that the service was earned. The purchase price shall not 29
exceed the actuarially equivalent value of the increase in the 30
member's benefit resulting from the increase in the benefit 31
multiplier. This payment must be made prior to retirement, subject to 32
rules adopted by the department.33
(7)(a) From January 1, 2028, through June 30, 2028, the following 34
members may apply to the department to increase their benefit 35
multiplier by an additional 1.5 percent per year of service for the 36
period in which they served as a supreme court commissioner or deputy 37
commissioner or court of appeals commissioner:38
(i) Active members of plan 1 or plan 2 who are not currently 39
employed as a supreme court commissioner or deputy commissioner or 40
p. 3 HB 1510
court of appeals commissioner, and who have past service as a supreme 1
court commissioner or deputy commissioner or court of appeals 2
commissioner; and 3
(ii) Inactive vested members of plan 1 or plan 2 who have 4
separated, have not yet retired, and who have past service as a 5
supreme court commissioner or deputy commissioner or court of appeals 6
commissioner.7
(b) A member eligible under this subsection may purchase the 8
higher benefit multiplier for all or part of the member's prior 9
judicial service beginning with the most recent judicial service. The 10
member shall pay, for the applicable period of service, the 11
actuarially equivalent value of the increase in the member's benefit 12
resulting from the increase in the benefit multiplier as determined 13
by the director.14
(8) Subject to rules adopted by the department, a member applying 15
to increase the member's benefit multiplier under this section may 16
pay all or part of the cost with a lump sum payment, eligible 17
rollover, direct rollover, or trustee-to-trustee transfer from an 18
eligible retirement plan. The department shall adopt rules to ensure 19
that all lump sum payments, rollovers, and transfers comply with the 20
requirements of the internal revenue code and regulations adopted by 21
the internal revenue service. The rules adopted by the department may 22
condition the acceptance of a rollover or transfer from another plan 23
on the receipt of information necessary to enable the department to 24
determine the eligibility of any transferred funds for tax-free 25
rollover treatment or other treatment under federal income tax law.26
Sec. 2. RCW 41.40.767 and 2006 c 189 s 13 are each amended to 27
read as follows: 28
(1) In lieu of the retirement allowance provided under RCW 29
41.40.620, the retirement allowance payable for service as a supreme 30
court justice, court of appeals judge, or superior court judge, for 31
those justices or judges who elected to participate under RCW 32
41.40.124(1), shall be equal to ((three and one-half)) 3.5 percent of 33
average final compensation for each year of service earned after the 34
election. The total retirement benefit accrued or purchased under 35
chapter 189, Laws of 2006 in combination with benefits accrued during 36
periods served prior to the election shall not exceed ((seventy-37
five)) 75 percent of average final compensation. 38
p. 4 HB 1510
(2) In lieu of the retirement allowance provided under RCW 1
41.40.620, the retirement allowance payable for service as a supreme 2
court justice, court of appeals judge, or superior court judge, for 3
those justices or judges newly elected or appointed after January 1, 4
2007, shall be equal to ((three and one-half)) 3.5 percent of average 5
final compensation for each year of service after January 1, 2007. 6
The total retirement benefits accrued under chapter 189, Laws of 2006 7
in combination with benefits accrued during periods served prior to 8
January 1, 2007, shall not exceed ((seventy-five)) 75 percent of 9
average final compensation. 10
(3) The retirement allowance payable for service as a supreme 11
court commissioner or deputy commissioner, or court of appeals 12
commissioner appointed after January 1, 2026, shall be equal to 3.5 13
percent of average final compensation for each year of service after 14
January 1, 2026. The total retirement benefits accrued under chapter 15
189, Laws of 2006 in combination with benefits accrued during periods 16
served prior to January 1, 2026, shall not exceed 75 percent of 17
average final compensation.18
Sec. 3. RCW 41.40.870 and 2008 c 300 s 3 are each amended to 19
read as follows: 20
(1) Between January 1, 2007, and December 31, 2007, a member of 21
plan 3 employed as a supreme court justice, court of appeals judge, 22
or superior court judge may make a one-time irrevocable election, 23
filed in writing with the member's employer, the department, and the 24
administrative office of the courts, to accrue an additional plan 3 25
defined benefit equal to ((six-tenths)) 0.6 percent of average final 26
compensation for each year of future service credit from the date of 27
the election in lieu of future employer contributions to the judicial 28
retirement account plan under chapter 2.14 RCW. 29
(2) A member who made the election under subsection (1) of this 30
section may apply, at the time of filing a written application for 31
retirement with the department, to the department to increase the 32
member's benefit multiplier by ((six-tenths)) 0.6 percent per year of 33
service for the period in which the member served as a justice or 34
judge prior to the election. The member may purchase, beginning with 35
the most recent judicial service, the higher benefit multiplier for 36
that portion of the member's prior judicial service for which the 37
higher benefit multiplier was not previously purchased, and that 38
would ensure that the member has no more than a ((thirty-seven and 39
p. 5 HB 1510
one-half)) 37.5 percent of average final compensation benefit. The 1
member shall pay ((two and one-half )) 2.5 percent of the salary 2
earned for each month of service for which the higher benefit 3
multiplier is being purchased, plus ((five and one-half)) 5.5 percent 4
interest applied from the dates that the service was earned. The 5
purchase price shall not exceed the actuarially equivalent value of 6
the increase in the member's benefit resulting from the increase in 7
the benefit multiplier. This payment must be made prior to 8
retirement, subject to rules adopted by the department.9
(3) From January 1, 2009, through June 30, 2009, the following 10
members may apply to the department to increase their benefit 11
multiplier by an additional ((six-tenths)) 0.6 percent per year of 12
service for the period in which they served as a justice or judge:13
(a) Active members of plan 3 who are not currently employed as a 14
supreme court justice, court of appeals judge, or superior court 15
judge, and who have past service as a supreme court justice, court of 16
appeals judge, or superior court judge; and 17
(b) Inactive vested members of plan 3 who have separated, have 18
not yet retired, and who have past service as a supreme court 19
justice, court of appeals judge, or superior court judge.20
A member eligible under this subsection may purchase the higher 21
benefit multiplier for all or part of the member's prior judicial 22
service beginning with the most recent judicial service. The member 23
shall pay, for the applicable period of service, the actuarially 24
equivalent value of the increase in the member's benefit resulting 25
from the increase in the benefit multiplier as determined by the 26
director. 27
(4) Between January 1, 2026, and April 1, 2026, a member of plan 28
3 employed as a supreme court commissioner or deputy commissioner, or 29
court of appeals commissioner may make a one-time irrevocable 30
election, filed in writing with the member's employer, the 31
department, and the administrative office of the courts, to accrue an 32
additional plan 3 defined benefit equal to 0.6 percent of average 33
final compensation for each year of future service credit from the 34
date of the election.35
(5) A member who made the election under subsection (4) of this 36
section may apply, at the time of filing a written application for 37
retirement with the department, to the department to increase the 38
member's benefit multiplier by 0.6 percent per year of service for 39
the period in which the member served as a supreme court commissioner 40
p. 6 HB 1510
or deputy commissioner, or court of appeals commissioner prior to the 1
election. The member may purchase, beginning with the most recent 2
judicial service, the higher benefit multiplier for that portion of 3
the member's prior judicial service for which the higher benefit 4
multiplier was not previously purchased, and that would ensure that 5
the member has no more than a 37.5 percent of average final 6
compensation benefit. The member shall pay 2.5 percent of the salary 7
earned for each month of service for which the higher benefit 8
multiplier is being purchased, plus 5.5 percent interest applied from 9
the dates that the service was earned. The purchase price shall not 10
exceed the actuarially equivalent value of the increase in the 11
member's benefit resulting from the increase in the benefit 12
multiplier. This payment must be made prior to retirement, subject to 13
rules adopted by the department. 14
(6)(a) From January 1, 2028, through June 30, 2028, the following 15
members may apply to the department to increase their benefit 16
multiplier by an additional 0.6 percent per year of service for the 17
period in which they served as a commissioner:18
(i) Active members of plan 3 who are not currently employed as a 19
supreme court commissioner or deputy commissioner, or court of 20
appeals commissioner, and who have past service as a supreme court 21
commissioner or deputy commissioner, or court of appeals 22
commissioner; and23
(ii) Inactive vested members of plan 3 who have separated, have 24
not yet retired, and who have past service as a supreme court 25
commissioner or deputy commissioner, or court of appeals 26
commissioner.27
(b) A member eligible under this subsection may purchase the 28
higher benefit multiplier for all or part of the member's prior 29
judicial service beginning with the most recent judicial service. The 30
member shall pay, for the applicable period of service, the 31
actuarially equivalent value of the increase in the member's benefit 32
resulting from the increase in the benefit multiplier as determined 33
by the director.34
(7) Subject to rules adopted by the department, a member applying 35
to increase the member's benefit multiplier under this section may 36
pay all or part of the cost with a lump sum payment, eligible 37
rollover, direct rollover, or trustee-to-trustee transfer from an 38
eligible retirement plan. The department shall adopt rules to ensure 39
that all lump sum payments, rollovers, and transfers comply with the 40
p. 7 HB 1510
requirements of the internal revenue code and regulations adopted by 1
the internal revenue service. The rules adopted by the department may 2
condition the acceptance of a rollover or transfer from another plan 3
on the receipt of information necessary to enable the department to 4
determine the eligibility of any transferred funds for tax-free 5
rollover treatment or other treatment under federal income tax law.6
(((5))) (8) A member who chooses to make the election under 7
subsection (1) or (4) of this section shall contribute a minimum of 8
((seven and one-half )) 7.5 percent of pay to the member's defined 9
contribution account. 10
Sec. 4. RCW 41.40.877 and 2006 c 189 s 15 are each amended to 11
read as follows: 12
In lieu of the retirement allowance provided under RCW 41.40.790, 13
the retirement allowance payable for service as a supreme court 14
justice, court of appeals judge, or superior court judge, or supreme 15
court commissioner or deputy commissioner or court of appeals 16
commissioner, for those justices ((or)), judges, or appellate court 17
commissioners who elected to participate under RCW 41.40.870(1), 18
shall be equal to ((one and six-tenths)) 1.6 percent of average final 19
compensation for each year of service earned after the election. The 20
total retirement benefit accrued or purchased under chapter 189, Laws 21
of 2006 in combination with benefits accrued during periods served 22
prior to the election shall not exceed ((thirty-seven and one-half )) 23
37.5 percent of average final compensation. 24
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