LEOFF 1 restatement

AN ACT Relating to termination and restatement of plan 1 of the 1
law enforcement officers' and firefighters' retirement system; 2
amending RCW 41.26.010, 41.26.040, 41.26.061, 2.10.155, 6.15.020, 3
26.09.138, 28B.15.380, 28B.15.520, 35.21.935, 35A.21.380, 36.28A.010, 4
41.04.205, 41.04.270, 41.04.350, 41.04.393, 41.04.400, 41.04.440, 5
41.04.450, 41.04.803, 41.05.320, 41.16.020, 41.16.060, 41.16.145, 6
41.18.015, 41.18.104, 41.18.210, 41.20.010, 41.20.170, 41.20.175, 7
41.24.400, 41.32.800, 41.32.802, 41.32.860, 41.32.862, 41.35.060, 8
41.35.230, 41.37.050, 41.37.180, 41.40.010, 41.40.037, 41.40.059, 9
41.40.690, 41.40.850, 41.45.010, 41.45.020, 41.45.050, 41.45.060, 10
41.48.030, 41.48.050, 41.50.030, 41.50.033, 41.50.055, 41.50.075, 11
41.50.080, 41.50.090, 41.50.110, 41.50.112, 41.50.150, 41.50.255, 12
41.50.500, 41.50.650, 41.50.670, 41.50.700, 41.56.030, 46.52.130, 13
49.44.160, 51.08.142, 51.32.050, 51.32.185, 72.72.060, and 41.45.230; 14
reenacting and amending RCW 41.26.030, 41.05.011, 43.79A.040, 15
43.79A.040, 43.84.092, and 43.84.092; adding a new section to chapter 16
41.26 RCW; adding a new chapter to Title 41 RCW; creating new 17
sections; repealing RCW 41.26.005, 41.26.035, 41.26.045, 41.26.046, 18
41.26.047, 41.26.075, 41.26.080, 41.26.090, 41.26.100, 41.26.105, 19
41.26.110, 41.26.115, 41.26.120, 41.26.125, 41.26.130, 41.26.135, 20
41.26.140, 41.26.150, 41.26.160, 41.26.161, 41.26.162, 41.26.164, 21
41.26.170, 41.26.190, 41.26.192, 41.26.194, 41.26.195, 41.26.197, 22
41.26.199, 41.26.200, 41.26.211, 41.26.221, 41.26.240, 41.26.250, 23
H-0175.6
HOUSE BILL 2034
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ormsby, Fitzgibbon, Gregerson, and Macri
Read first time 03/07/25. Referred to Committee on Appropriations.
p. 1 HB 2034
41.26.260, 41.26.270, 41.26.281, 41.26.291, 41.26.3901, 41.26.3902, 1
41.26.3903, and 41.26.410; prescribing penalties; providing effective 2
dates; and providing an expiration date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
PART I5
GENERALLY6
NEW SECTION. Sec. 101. LEGISLATIVE FINDINGS AND DECLARATION. 7
The legislature finds that plan 1 of the Washington law enforcement 8
officers' and firefighters' retirement system (LEOFF plan 1) has been 9
closed to new members for nearly a quarter of a century and is now 10
comprised almost entirely of retirees and survivor beneficiaries. 11
Similarly, employers and employees have made no contributions to the 12
plan for nearly a quarter of a century, and over the life of the 13
plan, over 80 percent of all funds contributed have been from the 14
state through general fund—state appropriations.15
As of January 2025, only four active members remain in the plan, 16
as compared to 6,000 annuitants. LEOFF plan 1 has far exceeded full 17
funding and has assets which exceed all projected future liabilities, 18
has a surplus of more than $3,300,000,000 today, and no significant 19
amount of additional benefits can be earned in the plan. By the date 20
most of this act is effective, June 30, 2029, LEOFF plan 1 is 21
projected to reach more than 200 percent of full funding.22
The supreme court of the state of Washington, in the 1972 23
decision Weaver v. Evans , established that the firefighters and 24
police officers, active and retired, have a constitutionally 25
protected contractual right to a secure retirement benefit, funded on 26
a systematic basis. The legislature recognizes that the state of 27
Washington is the ultimate guarantor of the LEOFF plan 1 retirement 28
benefits. While members have a constitutionally protected right to 29
the pension benefits that are provided as part of their contract of 30
employment, there is no such right in surplus assets which are 31
unnecessary to the actuarial soundness of the retirement plan.32
The state retains the inherent power to terminate a retirement 33
plan and, upon the dedication of sufficient resources to ensure the 34
actuarial soundness of the benefits promised, is entitled to a 35
reversion of the surplus assets upon termination of the plan.36
p. 2 HB 2034
The legislature has determined that, in order to accomplish the 1
foregoing goals and objectives, it is in the best interest of the 2
members and beneficiaries of LEOFF plan 1 that the plan be terminated 3
and that a restated retirement plan created. It is further determined 4
to be in the best interest of the health, safety, and welfare of the 5
citizens of the state that surplus assets remaining after adequate 6
actuarial provision for the obligated retirement benefits revert to 7
the state. 8
It is the intent of the legislature that the LEOFF plan 1 9
termination be performed in accordance with the provisions of the 10
federal internal revenue code that apply to state government pension 11
plans and in recognition of the contract rights of the members and 12
beneficiaries of the plan to an actuarially sound retirement program. 13
Between the enactment of this law and the termination and restatement 14
of LEOFF plan 1, the legislature intends to make any changes 15
necessary to conform with federal requirements following receipt of 16
formal guidance from the federal internal revenue service.17
NEW SECTION. Sec. 102. TERMINATION OF LEOFF PLAN 1. Plan 1 of 18
the Washington law enforcement officers' and firefighters' retirement 19
system (LEOFF plan 1) is hereby terminated, effective June 30, 2029. 20
During the transition between the termination of LEOFF plan 1 and the 21
establishment of the restated law enforcement officers' and 22
firefighters' retirement system, all LEOFF plan 1 benefits, as they 23
existed prior to termination and restatement, shall continue without 24
interruption.25
NEW SECTION. Sec. 103. RESTATED LAW ENFORCEMENT OFFICERS' AND 26
FIREFIGHTERS' RETIREMENT SYSTEM ESTABLISHED. The restated law 27
enforcement officers' and firefighters' retirement system is hereby 28
established as provided in this chapter. The restated law enforcement 29
officers' and firefighters' retirement system established by this 30
chapter may also be referred to by statute and rule as the law 31
enforcement officers' and firefighters' retirement system plan 1. The 32
restated law enforcement plan does not create benefits for members 33
and beneficiaries different than, nor in addition to, those that 34
existed prior to termination and restatement, with the exception of 35
vesting benefits for nonvested members upon the creation of the 36
restated plan in section 318 of this act.37
p. 3 HB 2034
NEW SECTION. Sec. 104. RESTATED LAW ENFORCEMENT OFFICERS' AND 1
FIREFIGHTERS' DEFINED BENEFIT RETIREMENT FUND ESTABLISHED. (1) The 2
restated law enforcement officers' and firefighters' defined benefit 3
retirement fund is created in the custody of the state treasurer. The 4
fund shall consist of assets transferred from the Washington law 5
enforcement officers' and firefighters' system plan 1 retirement 6
fund, investment earnings, and other amounts deposited to the fund. 7
At direction of the director of retirement systems, the state 8
treasurer shall transfer to the restated law enforcement officers' 9
and firefighters' defined benefit retirement fund an amount equal to 10
120 percent of the actuarial present value of the fully projected 11
benefits of plan 1 of the Washington law enforcement officers' and 12
firefighters' retirement system based on the most recent actuarial 13
valuation projected to a measurement date of the effective date of 14
this section. On direction of the director of retirement systems, the 15
state treasurer shall transfer this amount, to the restated law 16
enforcement officers' and firefighters' defined benefit retirement 17
fund.18
(2) The pension funding council shall conduct an independent 19
audit of the calculation of the present value amount determined by 20
the state actuary. The transfer of these assets to the restated law 21
enforcement officers' and firefighters' defined benefit retirement 22
fund shall occur on the effective date of this section. The remaining 23
assets in the Washington law enforcement officers' and firefighters' 24
system plan 1 retirement fund shall be deposited in the pension 25
funding stabilization account and continue to be invested by the 26
state investment board until otherwise directed by law.27
(3) Expenditures from the restated law enforcement officers' and 28
firefighters' defined benefit retirement fund may be used only for 29
the purposes of this chapter. Only the director of retirement systems 30
or the director's designee may authorize expenditures from the fund. 31
No appropriation is required for expenditures. 32
(4) The director of retirement systems may direct the state 33
treasurer, subsequent to the transfer of assets under sections 101 34
through 105 of this act, to make such additional transfers as are 35
necessary to reconcile the amounts transferred and the requirements 36
of sections 101 through 105 of this act. 37
NEW SECTION. Sec. 105. INVESTMENT OF FUNDS. (1) The state 38
investment board has the full power to invest, reinvest, manage, 39
p. 4 HB 2034
contract, sell, or exchange investment money in (a) the restated law 1
enforcement officers' and firefighters' defined benefit retirement 2
fund and (b) the pension funding stabilization account. All 3
investment and operating costs of the state investment board and the 4
state treasurer associated with these funds shall be paid under RCW 5
43.08.190, 43.33A.160, 43.79A.040, and 43.84.160. With the exception 6
of these expenses, the earnings from the investment of the funds 7
shall be retained by the funds. 8
(2) All investments made by the state investment board shall be 9
made with the exercise of that degree of judgment and care under RCW 10
43.33A.140 and the investment policy established by the state 11
investment board. 12
(3) As deemed appropriate by the state investment board, money in 13
the funds may be commingled for investment with other funds under the 14
investment authority of the board. 15
NEW SECTION. Sec. 106. RESERVATION OF RIGHTS. The legislature 16
reserves the right to make such amendments and modifications as may 17
be necessary in the future to accomplish the goals of sections 101 18
through 108 of this act, without any diminution of the rights and 19
benefits of the LEOFF plan 1 members, retirees, and surviving 20
spouses, as they existed prior to the effective date of this section.21
NEW SECTION. Sec. 107. STATUTE OF LIMITATIONS. Any claim filed 22
challenging the validity of sections 101 through 108 of this act not 23
filed before June 30, 2027, is forever barred, if not already barred 24
by an otherwise applicable statute of limitations. As an urgent issue 25
of broad public importance that requires prompt and ultimate 26
determination, any such claim is subject to direct review by the 27
supreme court of Washington. By the effective date of this section, 28
the department of retirement systems shall send notification of the 29
provisions of this act and specifically of the limitations of this 30
section, by first-class mail, to the last known address of each plan 31
1 active member, retiree, and spousal survivor.32
NEW SECTION. Sec. 108. A new section is added to chapter 41.26 33
RCW to be codified under the subchapter heading "PLAN 1" to read as 34
follows: 35
The remaining active members have all achieved the normal 36
retirement age for a public safety employees' plan under federal law. 37
p. 5 HB 2034
This means that, if authorized by state law, benefit distributions 1
may begin even if the member continues employment with an employer. 2
In order to facilitate the prompt and orderly transition of LEOFF 3
plan 1 to a fully retired plan, a member of the law enforcement 4
officers' and firefighters' retirement that: 5
(1) Was employed as an active member of the law enforcement 6
officers' and firefighters' retirement system plan 1 on February 1, 7
2025, and has remained continuously employed in a LEOFF plan 1 8
position since that time; and 9
(2) No later than January 1, 2026, notifies the department of 10
retirement systems in writing that they elect to immediately and 11
irrevocably enter annuitant status and commence payment of benefits;12
Shall receive, in addition to a retirement benefit calculated under 13
the provisions of RCW 41.26.090 and 41.26.100: An additional five 14
years of service credit for purposes of calculating his or her 15
service retirement allowance; and a one-time lump sum benefit of 16
$25,000. 17
NEW SECTION. Sec. 109. The department of retirement systems, 18
following the obligation to administer the retirement plans 19
consistent with the requirements of the federal internal revenue 20
code, shall seek appropriate guidance to ensure the continuous 21
compliance of the LEOFF plan 1 and the restated law enforcement 22
officers' and firefighters' retirement system. In the event that the 23
federal internal revenue service formally concludes that legislative 24
changes are needed for the orderly termination and restatement of the 25
LEOFF plan 1 by June 30, 2029, those findings and recommendations for 26
responding to those findings shall be promptly submitted to the 27
governor and the appropriate committees of the house of 28
representatives and the senate.29
PART II30
AMENDMENTS TO CHAPTER 41.26 RCW31
Sec. 201. RCW 41.26.010 and 1969 ex.s. c 209 s 1 are each 32
amended to read as follows: 33
This chapter shall be known and cited as the "Washington Law 34
Enforcement Officers' and Firefighters' Retirement System —Plan 2 35
Act." 36
p. 6 HB 2034
Sec. 202. RCW 41.26.030 and 2024 c 319 s 4 and 2024 c 304 s 202 1
are each reenacted and amended to read as follows: 2
As used in this chapter, unless a different meaning is plainly 3
required by the context: 4
(1) "Accumulated contributions" means the employee's 5
contributions made by a member, including any amount paid under RCW 6
41.50.165(2), plus accrued interest credited thereon.7
(2) "Actuarial reserve" means a method of financing a pension or 8
retirement plan wherein reserves are accumulated as the liabilities 9
for benefit payments are incurred in order that sufficient funds will 10
be available on the date of retirement of each member to pay the 11
member's future benefits during the period of retirement.12
(3) "Actuarial valuation" means a mathematical determination of 13
the financial condition of a retirement plan. It includes the 14
computation of the present monetary value of benefits payable to 15
present members, and the present monetary value of future employer 16
and employee contributions, giving effect to mortality among active 17
and retired members and also to the rates of disability, retirement, 18
withdrawal from service, salary and interest earned on investments.19
(4)(((a) "Basic salary" for plan 1 members, means the basic 20
monthly rate of salary or wages, including longevity pay but not 21
including overtime earnings or special salary or wages, upon which 22
pension or retirement benefits will be computed and upon which 23
employer contributions and salary deductions will be based.24
(b))) "Basic salary" ((for plan 2 members, )) means salaries or 25
wages earned by a member during a payroll period for personal 26
services, including overtime payments, and shall include wages and 27
salaries deferred under provisions established pursuant to sections 28
403(b), 414 (h), and 457 of the United States Internal Revenue Code, 29
but shall exclude lump sum payments for deferred annual sick leave, 30
unused accumulated vacation, unused accumulated annual leave, or any 31
form of severance pay. In any year in which a member serves in the 32
legislature the member shall have the option of having such member's 33
basic salary be the greater of: 34
(((i))) (a) The basic salary the member would have received had 35
such member not served in the legislature; or 36
(((ii))) (b) Such member's actual basic salary received for 37
nonlegislative public employment and legislative service combined. 38
Any additional contributions to the retirement system required 39
because basic salary under (((b)(i))) (a) of this subsection is 40
p. 7 HB 2034
greater than basic salary under (((b)(ii) of)) this subsection (4)(b) 1
shall be paid by the member for both member and employer 2
contributions. 3
(5)(((a) "Beneficiary" for plan 1 members, means any person in 4
receipt of a retirement allowance, disability allowance, death 5
benefit, or any other benefit described herein.6
(b))) "Beneficiary" ((for plan 2 members, )) means any person in 7
receipt of a retirement allowance or other benefit provided by this 8
chapter resulting from service rendered to an employer by another 9
person. 10
(6)(a) "Child" or "children" means an unmarried person who is 11
under the age of eighteen or mentally or physically disabled as 12
determined by the department, except a person who is disabled and in 13
the full time care of a state institution, who is:14
(i) A natural born child; 15
(ii) A stepchild where that relationship was in existence prior 16
to the date benefits are payable under this chapter;17
(iii) A posthumous child; 18
(iv) A child legally adopted or made a legal ward of a member 19
prior to the date benefits are payable under this chapter; or20
(v) An illegitimate child legitimized prior to the date any 21
benefits are payable under this chapter. 22
(b) A person shall also be deemed to be a child up to and 23
including the age of twenty years and eleven months while attending 24
any high school, college, or vocational or other educational 25
institution accredited, licensed, or approved by the state, in which 26
it is located, including the summer vacation months and all other 27
normal and regular vacation periods at the particular educational 28
institution after which the child returns to school.29
(7) "Department" means the department of retirement systems 30
created in chapter 41.50 RCW. 31
(8) "Director" means the director of the department.32
(9) (("Disability board" for plan 1 members means either the 33
county disability board or the city disability board established in 34
RCW 41.26.110.35
(10) "Disability leave" means the period of six months or any 36
portion thereof during which a member is on leave at an allowance 37
equal to the member's full salary prior to the commencement of 38
disability retirement. The definition contained in this subsection 39
shall apply only to plan 1 members.40
p. 8 HB 2034
(11) "Disability retirement" for plan 1 members, means the period 1
following termination of a member's disability leave, during which 2
the member is in receipt of a disability retirement allowance.3
(12))) "Domestic partners" means two adults who have registered 4
as domestic partners under RCW 26.60.020. 5
(((13))) (10) "Employee" means any law enforcement officer or 6
firefighter as defined in subsections (((17) and (19))) (14) and (16) 7
of this section. 8
(((14)(a) "Employer" for plan 1 members, means the legislative 9
authority of any city, town, county, district, or regional fire 10
protection service authority or the elected officials of any 11
municipal corporation that employs any law enforcement officer and/or 12
firefighter, any authorized association of such municipalities, and, 13
except for the purposes of RCW 41.26.150, any labor guild, 14
association, or organization, which represents the firefighters or 15
law enforcement officers of at least seven cities of over 20,000 16
population and the membership of each local lodge or division of 17
which is composed of at least sixty percent law enforcement officers 18
or firefighters as defined in this chapter.19
(b))) (11)(a) "Employer" ((for plan 2 members, )) means the 20
following entities to the extent that the entity employs any law 21
enforcement officer and/or firefighter: 22
(i) The legislative authority of any city, town, county, 23
district, public corporation, or regional fire protection service 24
authority established under RCW 35.21.730 to provide emergency 25
medical services as defined in RCW 18.73.030; 26
(ii) The elected officials of any municipal corporation;27
(iii) The governing body of any other general authority law 28
enforcement agency; 29
(iv) A four-year institution of higher education having a fully 30
operational fire department as of January 1, 1996; or31
(v) The department of social and health services or the 32
department of corrections when employing firefighters serving at a 33
prison or civil commitment center on an island. 34
(((c))) (b) Except as otherwise specifically provided in this 35
chapter, "employer" does not include a government contractor. For 36
purposes of this subsection, a "government contractor" is any entity, 37
including a partnership, limited liability company, for-profit or 38
nonprofit corporation, or person, that provides services pursuant to 39
a contract with an "employer." The determination whether an employer-40
p. 9 HB 2034
employee relationship has been established is not based on the 1
relationship between a government contractor and an "employer," but 2
is based solely on the relationship between a government contractor's 3
employee and an "employer" under this chapter. 4
(((15)(a) "Final average salary" for plan 1 members, means (i) 5
for a member holding the same position or rank for a minimum of 6
twelve months preceding the date of retirement, the basic salary 7
attached to such same position or rank at time of retirement; (ii) 8
for any other member, including a civil service member who has not 9
served a minimum of twelve months in the same position or rank 10
preceding the date of retirement, the average of the greatest basic 11
salaries payable to such member during any consecutive twenty-four 12
month period within such member's last ten years of service for which 13
service credit is allowed, computed by dividing the total basic 14
salaries payable to such member during the selected twenty-four month 15
period by twenty-four; (iii) in the case of disability of any member, 16
the basic salary payable to such member at the time of disability 17
retirement; (iv) in the case of a member who hereafter vests pursuant 18
to RCW 41.26.090, the basic salary payable to such member at the time 19
of vesting.20
(b))) (12)(a) "Final average salary" ((for plan 2 members, )) 21
means the monthly average of the member's basic salary for the 22
highest consecutive sixty service credit months of service prior to 23
such member's retirement, termination, or death. Periods constituting 24
authorized unpaid leaves of absence may not be used in the 25
calculation of final average salary. 26
(((c))) (b) In calculating final average salary under (a) ((or 27
(b))) of this subsection, the department of retirement systems shall 28
include: 29
(i) Any compensation forgone by a member employed by a state 30
agency or institution during the 2009-2011 fiscal biennium as a 31
result of reduced work hours, mandatory or voluntary leave without 32
pay, temporary reduction in pay implemented prior to December 11, 33
2010, or temporary layoffs if the reduced compensation is an integral 34
part of the employer's expenditure reduction efforts, as certified by 35
the employer; 36
(ii) Any compensation forgone by a member employed by the state 37
or a local government employer during the 2011-2013 fiscal biennium 38
as a result of reduced work hours, mandatory leave without pay, 39
temporary layoffs, or reductions to current pay if the reduced 40
p. 10 HB 2034
compensation is an integral part of the employer's expenditure 1
reduction efforts, as certified by the employer. Reductions to 2
current pay shall not include elimination of previously agreed upon 3
future salary increases; and 4
(iii) Any compensation forgone by a member employed by the state 5
or a local government employer during the 2019-2021 and 2021-2023 6
fiscal biennia as a result of reduced work hours, mandatory leave 7
without pay, temporary layoffs, furloughs, reductions to current pay, 8
or other similar measures resulting from the COVID-19 budgetary 9
crisis, if the reduced compensation is an integral part of the 10
employer's expenditure reduction efforts, as certified by the 11
employer. Reductions to current pay shall not include elimination of 12
previously agreed upon future salary increases. 13
(((16))) (13) "Fire department" includes a fire station operated 14
by the department of social and health services or the department of 15
corrections when employing firefighters serving a prison or civil 16
commitment center on an island. 17
(((17))) (14) "Firefighter" means: 18
(a) Any person who is serving on a full time, fully compensated 19
basis as a member of a fire department of an employer and who is 20
serving in a position which requires passing a civil service 21
examination for firefighter, and who is actively employed as such;22
(b) Anyone who is actively employed as a full time firefighter 23
where the fire department does not have a civil service examination;24
(c) Supervisory firefighter personnel; 25
(d) ((Any full time executive secretary of an association of fire 26
protection districts authorized under RCW 52.12.031. The provisions 27
of this subsection (17)(d) shall not apply to plan 2 members;28
(e) The executive secretary of a labor guild, association or 29
organization (which is an employer under subsection (14) of this 30
section), if such individual has five years previous membership in a 31
retirement system established in chapter 41.16 or 41.18 RCW. The 32
provisions of this subsection (17)(e) shall not apply to plan 2 33
members;34
(f))) Any person who is serving on a full time, fully compensated 35
basis for an employer, as a fire dispatcher, in a department in 36
which, on March 1, 1970, a dispatcher was required to have passed a 37
civil service examination for firefighter; 38
(((g) Any person who on March 1, 1970, was employed on a full 39
time, fully compensated basis by an employer, and who on May 21, 40
p. 11 HB 2034
1971, was making retirement contributions under the provisions of 1
chapter 41.16 or 41.18 RCW; 2
(h))) (e) Any person who is employed on a full-time, fully 3
compensated basis by an employer as an emergency medical technician 4
that meets the requirements of RCW 18.71.200 or 18.73.030(13), and 5
whose duties include providing emergency medical services as defined 6
in RCW 18.73.030; and 7
(((i))) (f) Personnel serving on a full-time, fully compensated 8
basis as an employee of a fire department in positions that 9
necessitate experience as a firefighter to perform the essential 10
functions of those positions. 11
(((18))) (15) "General authority law enforcement agency" means 12
any agency, department, or division of a municipal corporation, 13
political subdivision, or other unit of local government of this 14
state, the government of a federally recognized tribe, and any 15
agency, department, or division of state government, having as its 16
primary function the detection and apprehension of persons committing 17
infractions or violating the traffic or criminal laws in general, but 18
not including the Washington state patrol. Such an agency, 19
department, or division is distinguished from a limited authority law 20
enforcement agency having as one of its functions the apprehension or 21
detection of persons committing infractions or violating the traffic 22
or criminal laws relating to limited subject areas, including but not 23
limited to, the state departments of natural resources and social and 24
health services, the state gambling commission, the state lottery 25
commission, the state parks and recreation commission, the state 26
utilities and transportation commission, the state liquor and 27
cannabis board, and the state department of corrections. A general 28
authority law enforcement agency under this chapter does not include 29
a government contractor. 30
(((19))) (16) "Law enforcement officer" beginning January 1, 31
1994, means any person who is commissioned and employed by an 32
employer on a full time, fully compensated basis to enforce the 33
criminal laws of the state of Washington generally, with the 34
following qualifications: 35
(a) No person who is serving in a position that is basically 36
clerical or secretarial in nature, and who is not commissioned shall 37
be considered a law enforcement officer; 38
(b) Only those deputy sheriffs, including those serving under a 39
different title pursuant to county charter, who have successfully 40
p. 12 HB 2034
completed a civil service examination for deputy sheriff or the 1
equivalent position, where a different title is used, and those 2
persons serving in unclassified positions authorized by RCW 41.14.070 3
except a private secretary will be considered law enforcement 4
officers; 5
(c) Only such full time commissioned law enforcement personnel as 6
have been appointed to offices, positions, or ranks in the police 7
department which have been specifically created or otherwise 8
expressly provided for and designated by city charter provision or by 9
ordinance enacted by the legislative body of the city shall be 10
considered city police officers; 11
(d) ((The term "law enforcement officer" also includes the 12
executive secretary of a labor guild, association or organization 13
(which is an employer under subsection (14) of this section) if that 14
individual has five years previous membership in the retirement 15
system established in chapter 41.20 RCW. The provisions of this 16
subsection (19)(d) shall not apply to plan 2 members;17
(e))) The term "law enforcement officer" also includes a person 18
employed on or after January 1, 1993, as a public safety officer or 19
director of public safety, so long as the job duties substantially 20
involve only either police or fire duties, or both, and no other 21
duties in a city or town with a population of less than ten thousand. 22
The provisions of this subsection (((19)(e))) (16)(d) shall not apply 23
to any public safety officer or director of public safety who is 24
receiving a retirement allowance under this chapter as of May 12, 25
1993; 26
(((f))) (e) The term "law enforcement officer" also includes a 27
person who is employed on or after January 1, 2024, on a full-time 28
basis by the government of a federally recognized tribe within the 29
state of Washington that meets the terms and conditions of RCW 30
41.26.565, is employed in a police department maintained by that 31
tribe, and who is currently certified as a general authority peace 32
officer under chapter 43.101 RCW; and 33
(((g))) (f) Beginning July 1, 2024, the term "law enforcement 34
officer" also includes any person who is commissioned and employed by 35
an employer on a fully compensated basis to enforce the criminal laws 36
of the state of Washington generally, on a less than full-time basis, 37
with the qualifications in (a) through (((e))) (d) of this 38
subsection. 39
p. 13 HB 2034
(((20) "Medical services" for plan 1 members, shall include the 1
following as minimum services to be provided. Reasonable charges for 2
these services shall be paid in accordance with RCW 41.26.150.3
(a) Hospital expenses: These are the charges made by a hospital, 4
in its own behalf, for5
(i) Board and room not to exceed semiprivate room rate unless 6
private room is required by the attending physician due to the 7
condition of the patient.8
(ii) Necessary hospital services, other than board and room, 9
furnished by the hospital.10
(b) Other medical expenses: The following charges are considered 11
"other medical expenses," provided that they have not been considered 12
as "hospital expenses."13
(i) The fees of the following:14
(A) A physician or surgeon licensed under the provisions of 15
chapter 18.71 RCW;16
(B) An osteopathic physician and surgeon licensed under the 17
provisions of chapter 18.57 RCW;18
(C) A chiropractor licensed under the provisions of chapter 18.25 19
RCW.20
(ii) The charges of a registered graduate nurse other than a 21
nurse who ordinarily resides in the member's home, or is a member of 22
the family of either the member or the member's spouse.23
(iii) The charges for the following medical services and 24
supplies:25
(A) Drugs and medicines upon a physician's prescription;26
(B) Diagnostic X-ray and laboratory examinations;27
(C) X-ray, radium, and radioactive isotopes therapy;28
(D) Anesthesia and oxygen;29
(E) Rental of iron lung and other durable medical and surgical 30
equipment;31
(F) Artificial limbs and eyes, and casts, splints, and trusses;32
(G) Professional ambulance service when used to transport the 33
member to or from a hospital when injured by an accident or stricken 34
by a disease;35
(H) Dental charges incurred by a member who sustains an 36
accidental injury to his or her teeth and who commences treatment by 37
a legally licensed dentist within ninety days after the accident;38
(I) Nursing home confinement or hospital extended care facility;39
(J) Physical therapy by a registered physical therapist;40
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(K) Blood transfusions, including the cost of blood and blood 1
plasma not replaced by voluntary donors;2
(L) An optometrist licensed under the provisions of chapter 18.53 3
RCW.4
(21))) (17) "Member" means any firefighter, law enforcement 5
officer, or other person as would apply under subsection (((17) or 6
(19))) (14) or (16) of this section ((whose membership is transferred 7
to the Washington law enforcement officers' and firefighters' 8
retirement system on or after March 1, 1970, and every law 9
enforcement officer and firefighter )) who is employed in that 10
capacity on or after ((such date)) October 1, 1977.11
(((22))) (18) "Plan 1" means the law enforcement officers' and 12
firefighters' retirement system, plan 1 providing the benefits and 13
funding provisions covering persons who first became members of the 14
system prior to October 1, 1977 , which plan was terminated effective 15
the effective date of this section, and members transferred to the 16
retirement system established by chapter 41.--- RCW (the new chapter 17
created in section 504 of this act). 18
(((23))) (19) "Plan 2" means the law enforcement officers' and 19
firefighters' retirement system, plan 2 providing the benefits and 20
funding provisions covering persons who first became members of the 21
system on and after October 1, 1977. 22
(((24))) (20) "Position" means the employment held at any 23
particular time, which may or may not be the same as civil service 24
rank. 25
(((25))) (21) "Regular interest" means such rate as the director 26
may determine. 27
(((26))) (22) "Retiree" ((for persons who establish membership in 28
the retirement system on or after October 1, 1977, )) means any member 29
in receipt of a retirement allowance or other benefit provided by 30
this chapter resulting from service rendered to an employer by such 31
member. 32
(((27))) (23) "Retirement fund" means the "Washington law 33
enforcement officers' and firefighters' ((retirement)) system plan 2 34
retirement fund" as provided for ((herein)) in RCW 41.50.075.35
(((28))) (24) "Retirement system" means the "Washington law 36
enforcement officers' and firefighters' retirement system plan 2 " 37
provided herein. 38
(((29)(a) "Service" for plan 1 members, means all periods of 39
employment for an employer as a firefighter or law enforcement 40
p. 15 HB 2034
officer, for which compensation is paid, together with periods of 1
suspension not exceeding thirty days in duration. For the purposes of 2
this chapter service shall also include service in the armed forces 3
of the United States as provided in RCW 41.26.190. Credit shall be 4
allowed for all service credit months of service rendered by a member 5
from and after the member's initial commencement of employment as a 6
firefighter or law enforcement officer, during which the member 7
worked for seventy or more hours, or was on disability leave or 8
disability retirement. Only service credit months of service shall be 9
counted in the computation of any retirement allowance or other 10
benefit provided for in this chapter. 11
(i) For members retiring after May 21, 1971, who were employed 12
under the coverage of a prior pension act before March 1, 1970, 13
"service" shall also include (A) such military service not exceeding 14
five years as was creditable to the member as of March 1, 1970, under 15
the member's particular prior pension act, and (B) such other periods 16
of service as were then creditable to a particular member under the 17
provisions of RCW 41.18.165, 41.20.160, or 41.20.170. However, in no 18
event shall credit be allowed for any service rendered prior to March 19
1, 1970, where the member at the time of rendition of such service 20
was employed in a position covered by a prior pension act, unless 21
such service, at the time credit is claimed therefor, is also 22
creditable under the provisions of such prior act.23
(ii) A member who is employed by two employers at the same time 24
shall only be credited with service to one such employer for any 25
month during which the member rendered such dual service.26
(iii) Reduction efforts such as furloughs, reduced work hours, 27
mandatory leave without pay, temporary layoffs, or other similar 28
situations as contemplated by subsection (15)(c)(iii) of this section 29
do not result in a reduction in service credit that otherwise would 30
have been earned for that month of work, and the member shall receive 31
the full service credit for the hours that were scheduled to be 32
worked before the reduction.33
(b)(i))) (25)(a) "Service" ((for plan 2 members, )) means periods 34
of employment by a member for one or more employers for which basic 35
salary is earned for ninety or more hours per calendar month which 36
shall constitute a service credit month. Periods of employment by a 37
member for one or more employers for which basic salary is earned for 38
at least seventy hours but less than ninety hours per calendar month 39
shall constitute one-half service credit month. Periods of employment 40
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by a member for one or more employers for which basic salary is 1
earned for less than seventy hours shall constitute a one-quarter 2
service credit month. 3
(((ii))) (b) Members of the retirement system who are elected or 4
appointed to a state elective position may elect to continue to be 5
members of this retirement system. 6
(((iii))) (c) Service credit years of service shall be determined 7
by dividing the total number of service credit months of service by 8
twelve. Any fraction of a service credit year of service as so 9
determined shall be taken into account in the computation of such 10
retirement allowance or benefits. 11
(((iv))) (d) If a member receives basic salary from two or more 12
employers during any calendar month, the individual shall receive one 13
service credit month's service credit during any calendar month in 14
which multiple service for ninety or more hours is rendered; or one-15
half service credit month's service credit during any calendar month 16
in which multiple service for at least seventy hours but less than 17
ninety hours is rendered; or one-quarter service credit month during 18
any calendar month in which multiple service for less than seventy 19
hours is rendered. 20
(((v))) (e) Reduction efforts such as furloughs, reduced work 21
hours, mandatory leave without pay, temporary layoffs, or other 22
similar situations as contemplated by subsection (((15)(c))) (12)(b)23
(iii) of this section do not result in a reduction in service credit 24
that otherwise would have been earned for that month of work, and the 25
member shall receive the full service credit for the hours that were 26
scheduled to be worked before the reduction. 27
(((30))) (26) "Service credit month" means a full service credit 28
month or an accumulation of partial service credit months that are 29
equal to one. 30
(((31))) (27) "Service credit year" means an accumulation of 31
months of service credit which is equal to one when divided by 32
twelve. 33
(((32))) (28) "State actuary" or "actuary" means the person 34
appointed pursuant to RCW 44.44.010(2). 35
(((33))) (29) "State elective position" means any position held 36
by any person elected or appointed to statewide office or elected or 37
appointed as a member of the legislature. 38
p. 17 HB 2034
(((34))) (30) "Surviving spouse" means the surviving widow or 1
widower of a member. (("Surviving spouse" shall not include the 2
divorced spouse of a member except as provided in RCW 41.26.162.))3
Sec. 203. RCW 41.26.040 and 2012 c 117 s 39 are each amended to 4
read as follows: 5
The Washington law enforcement officers' and firefighters' 6
retirement system plan 2 is hereby created for firefighters and law 7
enforcement officers. 8
(1) ((Notwithstanding RCW 41.26.030(20), all )) All firefighters 9
and law enforcement officers employed as such on or after ((March 1, 10
1970)) October 1, 1977 , on a full time fully compensated basis in 11
this state shall be members of the retirement system established by 12
this chapter with respect to all periods of service as such, to the 13
exclusion of any pension system existing under any prior act.14
(2) ((Any employee serving as a law enforcement officer or 15
firefighter on March 1, 1970, who is then making retirement 16
contributions under any prior act shall have his or her membership 17
transferred to the system established by this chapter as of such 18
date. Upon retirement for service or for disability, or death, of any 19
such employee, his or her retirement benefits earned under this 20
chapter shall be computed and paid. In addition, his or her benefits 21
under the prior retirement act to which he or she was making 22
contributions at the time of this transfer shall be computed as if he 23
or she had not transferred. For the purpose of such computations, the 24
employee's creditability of service and eligibility for service or 25
disability retirement and survivor and all other benefits shall 26
continue to be as provided in such prior retirement act, as if 27
transfer of membership had not occurred. The excess, if any, of the 28
benefits so computed, giving full value to survivor benefits, over 29
the benefits payable under this chapter shall be paid whether or not 30
the employee has made application under the prior act. If the 31
employee's prior retirement system was the Washington public 32
employees' retirement system, payment of such excess shall be made by 33
that system; if the employee's prior retirement system was the 34
statewide city employees' retirement system, payment of such excess 35
shall be made by the employer which was the member's employer when 36
his or her transfer of membership occurred: PROVIDED, That any death 37
in line of duty lump sum benefit payment shall continue to be the 38
obligation of that system as provided in RCW 41.44.210; in the case 39
p. 18 HB 2034
of all other prior retirement systems, payment of such excess shall 1
be made by the employer which was the member's employer when his or 2
her transfer of membership occurred. 3
(3))) All funds held by any firefighters' or police officers' 4
relief and pension fund shall remain in that fund for the purpose of 5
paying the obligations of the fund. The municipality shall continue 6
to levy the dollar rate as provided in RCW 41.16.060, and this dollar 7
rate shall be used for the purpose of paying the benefits provided in 8
chapters 41.16 and 41.18 RCW. The obligations of chapter 41.20 RCW 9
shall continue to be paid from whatever financial sources the city 10
has been using for this purpose. 11
Sec. 204. RCW 41.26.061 and 1997 c 103 s 1 are each amended to 12
read as follows: 13
A member shall not receive a disability retirement benefit under 14
RCW ((41.26.120, 41.26.125, 41.26.130, or )) 41.26.470 if the 15
disability is the result of criminal conduct by the member committed 16
after April 21, 1997. 17
PART III18
RESTATED LEOFF RETIREMENT SYSTEM19
NEW SECTION. Sec. 301. APPLICATION OF CHAPTER. This chapter 20
applies to members of the restated law enforcement officers' and 21
firefighters' retirement system. Membership in the system is limited 22
to those persons who were members of plan 1 of the law enforcement 23
officers' and firefighters' retirement system under chapter 41.26 RCW 24
prior to the effective date of this section.25
NEW SECTION. Sec. 302. This chapter shall be known and cited as 26
the "restated law enforcement officers' and firefighters' retirement 27
system act."28
NEW SECTION. Sec. 303. As used in this chapter, unless a 29
different meaning is plainly required by the context:30
(1) "Accumulated contributions" means the employee's 31
contributions made by a member, including any amount paid under RCW 32
41.50.165(2), plus accrued interest credited thereon.33
(2) "Actuarial reserve" means a method of financing a pension or 34
retirement plan wherein reserves are accumulated as the liabilities 35
p. 19 HB 2034
for benefit payments are incurred in order that sufficient funds will 1
be available on the date of retirement of each member to pay the 2
member's future benefits during the period of retirement.3
(3) "Actuarial valuation" means a mathematical determination of 4
the financial condition of a retirement plan. It includes the 5
computation of the present monetary value of benefits payable to 6
present members, and the present monetary value of future employer 7
and employee contributions, giving effect to mortality among active 8
and retired members and also to the rates of disability, retirement, 9
withdrawal from service, salary and interest earned on investments.10
(4) "Basic salary" means the basic monthly rate of salary or 11
wages, including longevity pay but not including overtime earnings or 12
special salary or wages, upon which pension or retirement benefits 13
will be computed and upon which employer contributions and salary 14
deductions will be based. 15
(5) "Beneficiary" means any person in receipt of a retirement 16
allowance, disability allowance, death benefit, or any other benefit 17
described herein. 18
(6)(a) "Child" or "children" means an unmarried person who is 19
under the age of eighteen or mentally or physically disabled as 20
determined by the department, except a person who is disabled and in 21
the full time care of a state institution, who is:22
(i) A natural born child; 23
(ii) A stepchild where that relationship was in existence prior 24
to the date benefits are payable under this chapter;25
(iii) A posthumous child; 26
(iv) A child legally adopted or made a legal ward of a member 27
prior to the date benefits are payable under this chapter; or28
(v) An illegitimate child legitimized prior to the date any 29
benefits are payable under this chapter. 30
(b) A person shall also be deemed to be a child up to and 31
including the age of twenty years and eleven months while attending 32
any high school, college, or vocational or other educational 33
institution accredited, licensed, or approved by the state, in which 34
it is located, including the summer vacation months and all other 35
normal and regular vacation periods at the particular educational 36
institution after which the child returns to school.37
(7) "Department" means the department of retirement systems 38
created in chapter 41.50 RCW. 39
(8) "Director" means the director of the department.40
p. 20 HB 2034
(9) "Disability board" means either the county disability board 1
or the city disability board established in section 320 of this act.2
(10) "Disability leave" means the period of six months or any 3
portion thereof during which a member is on leave at an allowance 4
equal to the member's full salary prior to the commencement of 5
disability retirement. 6
(11) "Disability retirement" means the period following 7
termination of a member's disability leave, during which the member 8
is in receipt of a disability retirement allowance.9
(12) "Domestic partners" means two adults who have registered as 10
domestic partners under RCW 26.60.020. 11
(13) "Employee" means any law enforcement officer or firefighter 12
as defined in subsections (17) and (19) of this section.13
(14)(a) "Employer" means the legislative authority of any city, 14
town, county, district, or regional fire protection service authority 15
or the elected officials of any municipal corporation that employs 16
any law enforcement officer and/or firefighter, any authorized 17
association of such municipalities, and, except for the purposes of 18
section 327 of this act, any labor guild, association, or 19
organization, which represents the firefighters or law enforcement 20
officers of at least seven cities of over 20,000 population and the 21
membership of each local lodge or division of which is composed of at 22
least sixty percent law enforcement officers or firefighters as 23
defined in this chapter. 24
(b) Except as otherwise specifically provided in this chapter, 25
"employer" does not include a government contractor. For purposes of 26
this subsection, a "government contractor" is any entity, including a 27
partnership, limited liability company, for-profit or nonprofit 28
corporation, or person, that provides services pursuant to a contract 29
with an "employer." The determination whether an employer-employee 30
relationship has been established is not based on the relationship 31
between a government contractor and an "employer," but is based 32
solely on the relationship between a government contractor's employee 33
and an "employer" under this chapter. 34
(15)(a) "Final average salary" means (i) for a member holding the 35
same position or rank for a minimum of twelve months preceding the 36
date of retirement, the basic salary attached to such same position 37
or rank at time of retirement; (ii) for any other member, including a 38
civil service member who has not served a minimum of twelve months in 39
the same position or rank preceding the date of retirement, the 40
p. 21 HB 2034
average of the greatest basic salaries payable to such member during 1
any consecutive twenty-four month period within such member's last 2
ten years of service for which service credit is allowed, computed by 3
dividing the total basic salaries payable to such member during the 4
selected twenty-four month period by twenty-four; (iii) in the case 5
of disability of any member, the basic salary payable to such member 6
at the time of disability retirement; (iv) in the case of a member 7
who hereafter vests pursuant to section 317 of this act, the basic 8
salary payable to such member at the time of vesting.9
(b) In calculating final average salary under (a) of this 10
subsection, the department of retirement systems shall include:11
(i) Any compensation forgone by a member employed by a state 12
agency or institution during the 2009-2011 fiscal biennium as a 13
result of reduced work hours, mandatory or voluntary leave without 14
pay, temporary reduction in pay implemented prior to December 11, 15
2010, or temporary layoffs if the reduced compensation is an integral 16
part of the employer's expenditure reduction efforts, as certified by 17
the employer; 18
(ii) Any compensation forgone by a member employed by the state 19
or a local government employer during the 2011-2013 fiscal biennium 20
as a result of reduced work hours, mandatory leave without pay, 21
temporary layoffs, or reductions to current pay if the reduced 22
compensation is an integral part of the employer's expenditure 23
reduction efforts, as certified by the employer. Reductions to 24
current pay shall not include elimination of previously agreed upon 25
future salary increases; and 26
(iii) Any compensation forgone by a member employed by the state 27
or a local government employer during the 2019-2021 and 2021-2023 28
fiscal biennia as a result of reduced work hours, mandatory leave 29
without pay, temporary layoffs, furloughs, reductions to current pay, 30
or other similar measures resulting from the COVID-19 budgetary 31
crisis, if the reduced compensation is an integral part of the 32
employer's expenditure reduction efforts, as certified by the 33
employer. Reductions to current pay shall not include elimination of 34
previously agreed upon future salary increases. 35
(16) "Fire department" includes a fire station operated by the 36
department of social and health services or the department of 37
corrections when employing firefighters serving a prison or civil 38
commitment center on an island. 39
(17) "Firefighter" means: 40
p. 22 HB 2034
(a) Any person who is serving on a full time, fully compensated 1
basis as a member of a fire department of an employer and who is 2
serving in a position which requires passing a civil service 3
examination for firefighter, and who is actively employed as such;4
(b) Anyone who is actively employed as a full time firefighter 5
where the fire department does not have a civil service examination;6
(c) Supervisory firefighter personnel; 7
(d) Any full time executive secretary of an association of fire 8
protection districts authorized under RCW 52.12.031;9
(e) The executive secretary of a labor guild, association or 10
organization (which is an employer under subsection (14) of this 11
section), if such individual has five years previous membership in a 12
retirement system established in chapter 41.16 or 41.18 RCW;13
(f) Any person who is serving on a full time, fully compensated 14
basis for an employer, as a fire dispatcher, in a department in 15
which, on March 1, 1970, a dispatcher was required to have passed a 16
civil service examination for firefighter; 17
(g) Any person who on March 1, 1970, was employed on a full time, 18
fully compensated basis by an employer, and who on May 21, 1971, was 19
making retirement contributions under the provisions of chapter 41.16 20
or 41.18 RCW; 21
(h) Any person who is employed on a full-time, fully compensated 22
basis by an employer as an emergency medical technician that meets 23
the requirements of RCW 18.71.200 or 18.73.030(13), and whose duties 24
include providing emergency medical services as defined in RCW 25
18.73.030; and 26
(i) Personnel serving on a full-time, fully compensated basis as 27
an employee of a fire department in positions that necessitate 28
experience as a firefighter to perform the essential functions of 29
those positions. 30
(18) "General authority law enforcement agency" means any agency, 31
department, or division of a municipal corporation, political 32
subdivision, or other unit of local government of this state, the 33
government of a federally recognized tribe, and any agency, 34
department, or division of state government, having as its primary 35
function the detection and apprehension of persons committing 36
infractions or violating the traffic or criminal laws in general, but 37
not including the Washington state patrol. Such an agency, 38
department, or division is distinguished from a limited authority law 39
enforcement agency having as one of its functions the apprehension or 40
p. 23 HB 2034
detection of persons committing infractions or violating the traffic 1
or criminal laws relating to limited subject areas, including but not 2
limited to, the state departments of natural resources and social and 3
health services, the state gambling commission, the state lottery 4
commission, the state parks and recreation commission, the state 5
utilities and transportation commission, the state liquor and 6
cannabis board, and the state department of corrections. A general 7
authority law enforcement agency under this chapter does not include 8
a government contractor. 9
(19) "Law enforcement officer" beginning January 1, 1994, means 10
any person who is commissioned and employed by an employer on a full 11
time, fully compensated basis to enforce the criminal laws of the 12
state of Washington generally, with the following qualifications:13
(a) No person who is serving in a position that is basically 14
clerical or secretarial in nature, and who is not commissioned shall 15
be considered a law enforcement officer; 16
(b) Only those deputy sheriffs, including those serving under a 17
different title pursuant to county charter, who have successfully 18
completed a civil service examination for deputy sheriff or the 19
equivalent position, where a different title is used, and those 20
persons serving in unclassified positions authorized by RCW 41.14.070 21
except a private secretary will be considered law enforcement 22
officers; 23
(c) Only such full time commissioned law enforcement personnel as 24
have been appointed to offices, positions, or ranks in the police 25
department which have been specifically created or otherwise 26
expressly provided for and designated by city charter provision or by 27
ordinance enacted by the legislative body of the city shall be 28
considered city police officers; 29
(d) The term "law enforcement officer" also includes the 30
executive secretary of a labor guild, association or organization 31
(which is an employer under subsection (14) of this section) if that 32
individual has five years previous membership in the retirement 33
system established in chapter 41.20 RCW; 34
(e) The term "law enforcement officer" also includes a person 35
employed on or after January 1, 1993, as a public safety officer or 36
director of public safety, so long as the job duties substantially 37
involve only either police or fire duties, or both, and no other 38
duties in a city or town with a population of less than ten thousand. 39
The provisions of this subsection (19)(e) shall not apply to any 40
p. 24 HB 2034
public safety officer or director of public safety who is receiving a 1
retirement allowance under this chapter as of May 12, 1993;2
(f) The term "law enforcement officer" also includes a person who 3
is employed on or after January 1, 2024, on a full-time basis by the 4
government of a federally recognized tribe within the state of 5
Washington that meets the terms and conditions of RCW 41.26.565, is 6
employed in a police department maintained by that tribe, and who is 7
currently certified as a general authority peace officer under 8
chapter 43.101 RCW; and 9
(g) Beginning July 1, 2024, the term "law enforcement officer" 10
also includes any person who is commissioned and employed by an 11
employer on a fully compensated basis to enforce the criminal laws of 12
the state of Washington generally, on a less than full-time basis, 13
with the qualifications in (a) through (e) of this subsection.14
(20) "Medical services" shall include the following as minimum 15
services to be provided. Reasonable charges for these services shall 16
be paid in accordance with section 327 of this act.17
(a) Hospital expenses: These are the charges made by a hospital, 18
in its own behalf, for 19
(i) Board and room not to exceed semiprivate room rate unless 20
private room is required by the attending physician due to the 21
condition of the patient. 22
(ii) Necessary hospital services, other than board and room, 23
furnished by the hospital. 24
(b) Other medical expenses: The following charges are considered 25
"other medical expenses," provided that they have not been considered 26
as "hospital expenses." 27
(i) The fees of the following: 28
(A) A physician or surgeon licensed under the provisions of 29
chapter 18.71 RCW; 30
(B) An osteopathic physician and surgeon licensed under the 31
provisions of chapter 18.57 RCW; 32
(C) A chiropractor licensed under the provisions of chapter 18.25 33
RCW. 34
(ii) The charges of a registered graduate nurse other than a 35
nurse who ordinarily resides in the member's home, or is a member of 36
the family of either the member or the member's spouse.37
(iii) The charges for the following medical services and 38
supplies: 39
(A) Drugs and medicines upon a physician's prescription;40
p. 25 HB 2034
(B) Diagnostic X-ray and laboratory examinations;1
(C) X-ray, radium, and radioactive isotopes therapy;2
(D) Anesthesia and oxygen; 3
(E) Rental of iron lung and other durable medical and surgical 4
equipment; 5
(F) Artificial limbs and eyes, and casts, splints, and trusses;6
(G) Professional ambulance service when used to transport the 7
member to or from a hospital when injured by an accident or stricken 8
by a disease; 9
(H) Dental charges incurred by a member who sustains an 10
accidental injury to his or her teeth and who commences treatment by 11
a legally licensed dentist within ninety days after the accident;12
(I) Nursing home confinement or hospital extended care facility;13
(J) Physical therapy by a registered physical therapist;14
(K) Blood transfusions, including the cost of blood and blood 15
plasma not replaced by voluntary donors; 16
(L) An optometrist licensed under the provisions of chapter 18.53 17
RCW. 18
(21) "Member" means any firefighter, law enforcement officer, or 19
other person as would apply under subsection (17) or (19) of this 20
section whose membership is transferred to the Washington law 21
enforcement officers' and firefighters' retirement system on or after 22
March 1, 1970, and every law enforcement officer and firefighter who 23
is employed in that capacity on or after such date.24
(22) "Plan 1" means the law enforcement officers' and 25
firefighters' retirement system, plan 1 providing the benefits and 26
funding provisions covering persons who first became members of the 27
system prior to October 1, 1977. 28
(23) "Plan 2" means the law enforcement officers' and 29
firefighters' retirement system, plan 2 providing the benefits and 30
funding provisions covering persons who first became members of the 31
system on and after October 1, 1977. 32
(24) "Position" means the employment held at any particular time, 33
which may or may not be the same as civil service rank.34
(25) "Regular interest" means such rate as the director may 35
determine. 36
(26) "Retiree" for persons who establish membership in the 37
retirement system on or after October 1, 1977, means any member in 38
receipt of a retirement allowance or other benefit provided by this 39
p. 26 HB 2034
chapter resulting from service rendered to an employer by such 1
member. 2
(27) "Retirement fund" means the "Washington law enforcement 3
officers' and firefighters' system plan 1 retirement fund" as 4
provided for in RCW 41.50.075. 5
(28) "Retirement system" means the "Washington law enforcement 6
officers' and firefighters' retirement system" provided herein.7
(29) "Service" means all periods of employment for an employer as 8
a firefighter or law enforcement officer, for which compensation is 9
paid, together with periods of suspension not exceeding thirty days 10
in duration. For the purposes of this chapter service shall also 11
include service in the armed forces of the United States as provided 12
in section 333 of this act. Credit shall be allowed for all service 13
credit months of service rendered by a member from and after the 14
member's initial commencement of employment as a firefighter or law 15
enforcement officer, during which the member worked for seventy or 16
more hours, or was on disability leave or disability retirement. Only 17
service credit months of service shall be counted in the computation 18
of any retirement allowance or other benefit provided for in this 19
chapter. 20
(a) For members retiring after May 21, 1971 who were employed 21
under the coverage of a prior pension act before March 1, 1970, 22
"service" shall also include (i) such military service not exceeding 23
five years as was creditable to the member as of March 1, 1970, under 24
the member's particular prior pension act, and (ii) such other 25
periods of service as were then creditable to a particular member 26
under the provisions of RCW 41.18.165, 41.20.160, or 41.20.170. 27
However, in no event shall credit be allowed for any service rendered 28
prior to March 1, 1970, where the member at the time of rendition of 29
such service was employed in a position covered by a prior pension 30
act, unless such service, at the time credit is claimed therefor, is 31
also creditable under the provisions of such prior act.32
(b) A member who is employed by two employers at the same time 33
shall only be credited with service to one such employer for any 34
month during which the member rendered such dual service.35
(c) Reduction efforts such as furloughs, reduced work hours, 36
mandatory leave without pay, temporary layoffs, or other similar 37
situations as contemplated by subsection (15)(b)(iii) of this section 38
do not result in a reduction in service credit that otherwise would 39
have been earned for that month of work, and the member shall receive 40
p. 27 HB 2034
the full service credit for the hours that were scheduled to be 1
worked before the reduction. 2
(30) "Service credit month" means a full service credit month or 3
an accumulation of partial service credit months that are equal to 4
one. 5
(31) "Service credit year" means an accumulation of months of 6
service credit which is equal to one when divided by twelve.7
(32) "State actuary" or "actuary" means the person appointed 8
pursuant to RCW 44.44.010(2). 9
(33) "State elective position" means any position held by any 10
person elected or appointed to statewide office or elected or 11
appointed as a member of the legislature. 12
(34) "Surviving spouse" means the surviving widow or widower of a 13
member. "Surviving spouse" shall not include the divorced spouse of a 14
member except as provided in section 330 of this act.15
NEW SECTION. Sec. 304. The term "minimum medical and health 16
standards" means minimum medical and health standards adopted by the 17
department under this chapter.18
NEW SECTION. Sec. 305. The restated law enforcement officers' 19
and firefighters' retirement system is hereby created for 20
firefighters and law enforcement officers.21
(1) Notwithstanding section 303(21) of this act, all firefighters 22
and law enforcement officers employed as such on or after March 1, 23
1970, on a full time fully compensated basis in this state shall be 24
members of the retirement system established by this chapter with 25
respect to all periods of service as such, to the exclusion of any 26
pension system existing under any prior act. 27
(2) Any employee serving as a law enforcement officer or 28
firefighter on March 1, 1970, who is then making retirement 29
contributions under any prior act shall have his or her membership 30
transferred to the system established by this chapter as of such 31
date. Upon retirement for service or for disability, or death, of any 32
such employee, his or her retirement benefits earned under this 33
chapter shall be computed and paid. In addition, his or her benefits 34
under the prior retirement act to which he or she was making 35
contributions at the time of this transfer shall be computed as if he 36
or she had not transferred. For the purpose of such computations, the 37
employee's creditability of service and eligibility for service or 38
p. 28 HB 2034
disability retirement and survivor and all other benefits shall 1
continue to be as provided in such prior retirement act, as if 2
transfer of membership had not occurred. The excess, if any, of the 3
benefits so computed, giving full value to survivor benefits, over 4
the benefits payable under this chapter shall be paid whether or not 5
the employee has made application under the prior act. If the 6
employee's prior retirement system was the Washington public 7
employees' retirement system, payment of such excess shall be made by 8
that system; if the employee's prior retirement system was the 9
statewide city employees' retirement system, payment of such excess 10
shall be made by the employer which was the member's employer when 11
his or her transfer of membership occurred: PROVIDED, That any death 12
in line of duty lump sum benefit payment shall continue to be the 13
obligation of that system as provided in RCW 41.44.210; in the case 14
of all other prior retirement systems, payment of such excess shall 15
be made by the employer which was the member's employer when his or 16
her transfer of membership occurred. 17
(3) All funds held by any firefighters' or police officers' 18
relief and pension fund shall remain in that fund for the purpose of 19
paying the obligations of the fund. The municipality shall continue 20
to levy the dollar rate as provided in RCW 41.16.060, and this dollar 21
rate shall be used for the purpose of paying the benefits provided in 22
chapters 41.16 and 41.18 RCW. The obligations of chapter 41.20 RCW 23
shall continue to be paid from whatever financial sources the city 24
has been using for this purpose. 25
NEW SECTION. Sec. 306. (1) Notwithstanding any other provision 26
of law after February 19, 1974, no law enforcement officer or 27
firefighter, may become eligible for coverage in the pension system 28
established by this chapter, until the individual has met and has 29
been certified as having met minimum medical and health standards: 30
PROVIDED, That an elected sheriff or an appointed chief of police or 31
fire chief, shall not be required to meet the age standard: PROVIDED 32
FURTHER, That in cities and towns having not more than two law 33
enforcement officers and/or not more than two firefighters and if one 34
or more of such persons do not meet the minimum medical and health 35
standards as required by the provisions of this chapter, then such 36
person or persons may join any other pension system that the city has 37
available for its other employees: AND PROVIDED FURTHER, That for one 38
year after February 19, 1974, any such medical or health standard now 39
p. 29 HB 2034
existing or hereinafter adopted, insofar as it establishes a maximum 1
age beyond which an applicant is to be deemed ineligible for 2
coverage, shall be waived as to any applicant for employment or 3
reemployment who is otherwise eligible except for his or her age, who 4
has been a member of any one or more of the retirement systems 5
created by chapter 41.20 RCW and who has restored all contributions 6
which he or she has previously withdrawn from any such system or 7
systems. 8
(2) This section shall not apply to persons who initially 9
establish membership in the retirement system on or after July 1, 10
1979. 11
NEW SECTION. Sec. 307. By July 31, 1971, the director of 12
retirement systems shall adopt minimum medical and health standards 13
for membership coverage into the Washington law enforcement officers' 14
and firefighters' retirement system. In adopting such standards the 15
director of retirement systems shall consider existing standards 16
recommended by the international association of chiefs of police and 17
the international association of firefighters, and shall adopt equal 18
or higher standards, together with appropriate standards and 19
procedures to ensure uniform compliance with this chapter. The 20
standards when adopted shall be published and distributed to each 21
employer, and each employer shall adopt certification procedures and 22
such other procedures as are required to ensure that no law 23
enforcement officer or firefighter receives membership coverage 24
unless and until he or she has actually met minimum medical and 25
health standards: PROVIDED, That an elected sheriff or an appointed 26
chief of police, fire chief, or director of public safety shall not 27
be required to meet the age standard. The director of retirement 28
systems may amend the minimum medical and health standards as 29
experience indicates, even if the standards as so amended are lower 30
or less rigid than those recommended by the international 31
associations mentioned above. The cost of the medical examination 32
contemplated by this section is to be paid by the employer.33
NEW SECTION. Sec. 308. Nothing in sections 304, 306, and 307 of 34
this act shall apply to any firefighters or law enforcement officers 35
who are employed as such on or before August 1, 1971, as long as they 36
continue in such employment; nor to promotional appointments after 37
becoming a member in the police or fire department of any employer 38
p. 30 HB 2034
nor to the reemployment of a law enforcement officer or firefighter 1
by the same or a different employer within six months after the 2
termination of his or her employment, nor to the reinstatement of a 3
law enforcement officer or firefighter who has been on military or 4
disability leave, disability retirement status, or leave of absence 5
status. Nothing in this chapter shall be deemed to prevent any 6
employer from adopting higher medical and health standards than those 7
which are adopted by the director of retirement systems.8
NEW SECTION. Sec. 309. (1) A two hundred fourteen thousand 9
dollar death benefit shall be paid to the member's estate, or such 10
person or persons, trust or organization as the member shall have 11
nominated by written designation duly executed and filed with the 12
department. If there be no such designated person or persons still 13
living at the time of the member's death, such member's death benefit 14
shall be paid to the member's surviving spouse or domestic partner as 15
if in fact such spouse or domestic partner had been nominated by 16
written designation, or if there be no such surviving spouse or 17
domestic partner, then to such member's legal representatives.18
(2) The benefit under this section shall be paid only when death 19
occurs: (a) As a result of injuries sustained in the course of 20
employment; or (b) as a result of an occupational disease or 21
infection that arises naturally and proximately out of employment 22
covered under this chapter. The determination of eligibility for the 23
benefit shall be made consistent with Title 51 RCW by the department 24
of labor and industries. There is no statute of limitations for this 25
benefit. The department of labor and industries shall notify the 26
department of retirement systems by order under RCW 51.52.050.27
(3) The department of labor and industries shall determine 28
eligibility under subsection (2) of this section for the special 29
death benefit for any beneficiaries who were denied the special death 30
benefit for failing to meet the statute of limitations under Title 51 31
RCW. If the department of labor and industries determines the 32
beneficiary is eligible for the special death benefit, the department 33
must provide the beneficiary an option to reelect their pension 34
benefit under RCW 41.26.510(2) and if the member elects an ongoing 35
pension benefit, the department must pay the beneficiary retroactive 36
to the date of the member's death. 37
(4)(a) Beginning July 1, 2010, and every year thereafter, the 38
department shall determine the following information:39
p. 31 HB 2034
(i) The index for the 2008 calendar year, to be known as "index 1
A"; 2
(ii) The index for the calendar year prior to the date of 3
determination, to be known as "index B;" and 4
(iii) The ratio obtained when index B is divided by index A.5
(b) The value of the ratio obtained shall be the annual 6
adjustment to the original death benefit and shall be applied 7
beginning every July 1st. In no event, however, shall the annual 8
adjustment: 9
(i) Produce a benefit which is lower than two hundred fourteen 10
thousand dollars; 11
(ii) Exceed three percent in the initial annual adjustment; or12
(iii) Differ from the previous year's annual adjustment by more 13
than three percent. 14
(c) For the purposes of this section, "index" means, for any 15
calendar year, that year's average consumer price index — Seattle, 16
Washington area for urban wage earners and clerical workers, all 17
items, compiled by the bureau of labor statistics, United States 18
department of labor. 19
NEW SECTION. Sec. 310. (1) Subject to subsections (2) and (3) 20
of this section, the right of a person to a retirement allowance, 21
disability allowance, or death benefit, to the return of accumulated 22
contributions, the retirement, disability, or death allowance itself, 23
any optional benefit, any other right accrued or accruing to any 24
person under the provisions of this chapter, and the moneys in the 25
fund created under this chapter, are hereby exempt from any state, 26
county, municipal, or other local tax and shall not be subject to 27
execution, garnishment, attachment, the operation of bankruptcy or 28
insolvency laws, or any other process of law whatsoever, whether the 29
same be in actual possession of the person or be deposited or loaned 30
and shall be unassignable.31
(2) On the written request of any person eligible to receive 32
benefits under this section, the department may deduct from such 33
payments the premiums for life, health, or other insurance. The 34
request on behalf of any child or children shall be made by the legal 35
guardian of such child or children. The department may provide for 36
such persons one or more plans of group insurance, through contracts 37
with regularly constituted insurance carriers or health care service 38
contractors. 39
p. 32 HB 2034
(3) Subsection (1) of this section shall not prohibit the 1
department from complying with (a) a wage assignment order for child 2
support issued pursuant to chapter 26.18 RCW, (b) an order to 3
withhold and deliver issued pursuant to chapter 74.20A RCW, (c) an 4
income withholding order issued pursuant to RCW 26.23.060, (d) a 5
mandatory benefits assignment order issued by the department, (e) a 6
court order directing the department of retirement systems to pay 7
benefits directly to an obligee under a dissolution order as defined 8
in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 9
41.50.700, or (f) any administrative or court order expressly 10
authorized by federal law. 11
NEW SECTION. Sec. 311. No bond of any kind shall be required of 12
a claimant appealing to the superior court, the court of appeals, or 13
the supreme court from a decision of the director affecting such 14
claimant's right to retirement or disability benefits.15
NEW SECTION. Sec. 312. (1) The annual compensation taken into 16
account in calculating retiree benefits under this system shall not 17
exceed the limits imposed by section 401 (a)(17) of the federal 18
internal revenue code for qualified trusts.19
(2) The department shall adopt rules as necessary to implement 20
this section. 21
NEW SECTION. Sec. 313. Notwithstanding any provision to the 22
contrary, persons who fail to:23
(1) Establish allowable membership service not previously 24
credited; 25
(2) Restore all or a part of that previously credited membership 26
service represented by withdrawn contributions; or27
(3) Restore service credit represented by a lump sum payment in 28
lieu of benefits, before the deadline established by statute, may do 29
so under the conditions set forth in RCW 41.50.165.30
NEW SECTION. Sec. 314. A member shall not receive a disability 31
retirement benefit under section 322, 323, or 324 of this act if the 32
disability is the result of criminal conduct by the member committed 33
after April 21, 1997.34
p. 33 HB 2034
NEW SECTION. Sec. 315. Any employer, member or beneficiary who 1
shall knowingly make false statements or shall falsify or permit to 2
be falsified any record or records of the retirement system in an 3
attempt to defraud the retirement system, is guilty of a class B 4
felony punishable according to chapter 9A.20 RCW.5
NEW SECTION. Sec. 316. (1) Except as set forth under subsection 6
(2) of this section, the total liability of the plan 1 system shall 7
be funded as follows:8
(a) Every plan 1 member shall have deducted from each payroll a 9
sum equal to six percent of his or her basic salary for each pay 10
period. 11
(b) Every employer shall contribute monthly a sum equal to six 12
percent of the basic salary of each plan 1 employee who is a member 13
of this retirement system. The employer shall transmit the employee 14
and employer contributions with a copy of the payroll to the 15
retirement system monthly. 16
(c) The remaining liabilities of the plan 1 system shall be 17
funded as provided in chapter 41.45 RCW. 18
(d) Every member shall be deemed to consent and agree to the 19
contribution made and provided for herein, and shall receipt in full 20
for his or her salary or compensation. Payment less said 21
contributions shall be a complete discharge of all claims and demands 22
whatsoever for the services rendered by such person during the period 23
covered by such payments, except his or her claim to the benefits to 24
which he or she may be entitled under the provisions of this chapter.25
(2) No employer or member contribution is required after June 30, 26
2000, unless the most recent valuation study for law enforcement 27
officers' and firefighters' retirement system plan 1 indicates the 28
plan has unfunded liabilities. The legislature clarifies the 29
enactment of section 907, chapter 1, Laws of 2000 2nd sp. sess. and 30
affirms the suspension of employer and member contributions to plan 1 31
of the law enforcement officers' and firefighters' retirement system, 32
effective June 30, 2000, as provided in this subsection. The 33
legislature intends this 2007 amendment of this subsection to be 34
curative, remedial, and retrospectively applicable to June 30, 2000.35
NEW SECTION. Sec. 317. Retirement of a member for service shall 36
be made by the department as follows:37
p. 34 HB 2034
(1) Any member having five or more service credit years of 1
service and having attained the age of fifty years shall be eligible 2
for a service retirement allowance and shall be retired upon the 3
member's written request effective the first day following the date 4
upon which the member is separated from service. 5
(2) Any member having five or more service credit years of 6
service, who terminates his or her employment with any employer, may 7
leave his or her contributions in the fund. Any employee who so 8
elects, upon attaining age fifty, shall be eligible to apply for and 9
receive a service retirement allowance based on his or her years of 10
service, commencing on the first day following his or her attainment 11
of age fifty. 12
(3) Any member selecting optional vesting under subsection (2) of 13
this section with less than twenty service credit years of service 14
shall not be covered by the provisions of section 327 of this act, 15
and the member's survivors shall not be entitled to the benefits of 16
section 328 of this act unless his or her death occurs after he or 17
she has attained the age of fifty years. Those members selecting this 18
optional vesting with twenty or more years service shall not be 19
covered by the provisions of section 327 of this act until the 20
attainment of the age of fifty years. A member selecting this 21
optional vesting, with less than twenty service credit years of 22
service credit, who dies prior to attaining the age of fifty years, 23
shall have paid from the Washington law enforcement officers' and 24
firefighters' retirement fund, to such member's surviving spouse, if 25
any, otherwise to such beneficiary as the member shall have 26
designated in writing, or if no such designation has been made, to 27
the personal representative of his or her estate, a lump sum which is 28
equal to the amount of such member's accumulated contributions plus 29
accrued interest. If the vested member has twenty or more service 30
credit years of service credit the surviving spouse or children shall 31
then become eligible for the benefits of section 328 of this act 32
regardless of the member's age at the time of his or her death, to 33
the exclusion of the lump sum amount provided by this subsection.34
(4) Any member who has attained the age of sixty years shall be 35
retired on the first day of the calendar month next succeeding that 36
in which said member shall have attained the age of sixty and may not 37
thereafter be employed as a law enforcement officer or firefighter: 38
PROVIDED, That for any member who is elected or appointed to the 39
office of sheriff, chief of police, or fire chief, his or her 40
p. 35 HB 2034
election or appointment shall be considered as a waiver of the age 1
sixty provision for retirement and nonemployment for whatever number 2
of years remain in his or her present term of office and any 3
succeeding periods for which he or she may be so elected or 4
appointed. The provisions of this subsection shall not apply to any 5
member who is employed as a law enforcement officer or firefighter on 6
March 1, 1970. 7
NEW SECTION. Sec. 318. (1) A member upon retirement for service 8
shall receive a monthly retirement allowance computed according to 9
his or her completed creditable service credit years of service as 10
follows: Five years but under ten years, one-twelfth of one percent 11
of his or her final average salary for each month of service; ten 12
years but under twenty years, one-twelfth of one and one-half percent 13
of his or her final average salary for each month of service; and 14
twenty years and over one-twelfth of two percent of his or her final 15
average salary for each month of service: PROVIDED, That the 16
recipient of a retirement allowance who shall return to service as a 17
law enforcement officer or firefighter shall be considered to have 18
terminated his or her retirement status and he or she shall 19
immediately become a member of the retirement system with the status 20
of membership he or she had as of the date of retirement. Retirement 21
benefits shall be suspended during the period of his or her return to 22
service and he or she shall make contributions and receive service 23
credit. Such a member shall have the right to again retire at any 24
time and his or her retirement allowance shall be recomputed, and 25
paid, based upon additional service rendered and any change in final 26
average salary.27
(2) Beginning four months after the effective date of this 28
section, a member with fewer than five years of service shall, upon 29
retirement for service, receive a monthly retirement allowance of 30
one-twelfth of one percent of his or her final average salary for 31
each month of service. This subsection serves to fully vest all 32
members. 33
NEW SECTION. Sec. 319. (1) At the time of retirement, plan 1 34
members may purchase an optional actuarially equivalent life annuity 35
benefit from the Washington law enforcement officers' and 36
firefighters' retirement system plan 1 retirement fund established in 37
p. 36 HB 2034
RCW 41.50.075. A minimum payment of twenty-five thousand dollars is 1
required. 2
(2) Subject to rules adopted by the department, a member 3
purchasing an annuity under this section must pay all of the cost 4
with an eligible rollover, direct rollover, or trustee-to-trustee 5
transfer from an eligible retirement plan. 6
(a) The department shall adopt rules to ensure that all eligible 7
rollovers and transfers comply with the requirements of the internal 8
revenue code and regulations adopted by the internal revenue service. 9
The rules adopted by the department may condition the acceptance of a 10
rollover or transfer from another plan on the receipt of information 11
necessary to enable the department to determine the eligibility of 12
any transferred funds for tax-free rollover treatment or other 13
treatment under federal income tax law. 14
(b) "Eligible retirement plan" means a tax qualified plan offered 15
by a governmental employer. 16
(3) Plan 1 members whose retirement was effective prior to June 17
9, 2016, may purchase an annuity under this section between January 18
1, 2017, and June 1, 2017. 19
NEW SECTION. Sec. 320. (1) All claims for disability shall be 20
acted upon and either approved or disapproved by either type of 21
disability board authorized to be created in this section.22
(a) Each city having a population of twenty thousand or more 23
shall establish a disability board having jurisdiction over all 24
members employed by those cities and composed of the following five 25
members: Two members of the city legislative body to be appointed by 26
the mayor; one active or retired firefighter employed by or retired 27
from the city to be elected by the firefighters employed by or 28
retired from the city who are subject to the jurisdiction of the 29
board; one active or retired law enforcement officer employed by or 30
retired from the city to be elected by the law enforcement officers 31
employed by or retired from the city who are subject to the 32
jurisdiction of the board; and one member from the public at large 33
who resides within the city to be appointed by the other four members 34
designated in this subsection. Only those active or retired 35
firefighters and law enforcement officers who are subject to the 36
jurisdiction of the board have the right to elect under this section. 37
All firefighters and law enforcement officers employed by or retired 38
from the city are eligible for election. Each of the elected members 39
p. 37 HB 2034
shall serve a two year term. If there are either no firefighters or 1
law enforcement officers under the jurisdiction of the board eligible 2
to vote, a second eligible employee representative shall be elected 3
by the law enforcement officers or firefighters eligible to vote. The 4
members appointed pursuant to this subsection shall serve for two 5
year terms: PROVIDED, That cities of the first class only, shall 6
retain existing firefighters' pension boards established pursuant to 7
RCW 41.16.020 and existing boards of trustees of the relief and 8
pension fund of the police department as established pursuant to RCW 9
41.20.010 which such boards shall have authority to act upon and 10
approve or disapprove claims for disability by firefighters or law 11
enforcement officers as provided under the Washington law enforcement 12
officers' and firefighters' retirement system act.13
(b) If no eligible active or retired firefighter or law 14
enforcement officer is willing or able to be elected to the board 15
under (a) of this subsection, then the following individuals may be 16
elected to the board under (a) of this subsection:17
(i) Any active or retired firefighter under this chapter or 18
chapters 41.16, 41.18, and 52.26 RCW or law enforcement officers 19
under this chapter or chapter 41.20 RCW who resides within the 20
jurisdiction served by the board; 21
(ii) The surviving spouse or domestic partner of a firefighter or 22
law enforcement officer subject to the jurisdiction of the board.23
(c) Each county shall establish a disability board having 24
jurisdiction over all members employed by or retired from an employer 25
within the county and not employed by a city in which a disability 26
board is established. The county disability board so created shall be 27
composed of five members to be chosen as follows: One member of the 28
legislative body of the county to be appointed by the county 29
legislative body; one member of a city or town legislative body 30
located within the county which does not contain a city disability 31
board established pursuant to (a) of this subsection to be chosen by 32
a majority of the mayors of such cities and towns within the county 33
which does not contain a city disability board; one active 34
firefighter or retired firefighter employed by or retired from an 35
employer within the county to be elected by the firefighters employed 36
or retired from an employer within the county who are subject to the 37
jurisdiction of that board; one law enforcement officer or retired 38
law enforcement officer employed by or retired from an employer 39
within the county to be elected by the law enforcement officers 40
p. 38 HB 2034
employed in or retired from an employer within the county who are 1
subject to the jurisdiction of that board; and one member from the 2
public at large who resides within the county but does not reside 3
within a city in which a city disability board is established, to be 4
appointed by the other four members designated in this subsection. 5
However, in counties with a population less than sixty thousand, the 6
member of the disability board appointed by a majority of the mayors 7
of the cities and towns within the county that do not contain a city 8
disability board must be a resident of one of the cities and towns 9
but need not be a member of a city or town legislative body. Only 10
those active or retired firefighters and law enforcement officers who 11
are subject to the jurisdiction of the board have the right to elect 12
under this section. All firefighters and law enforcement officers 13
employed by or retired from an employer within the county are 14
eligible for election. All members appointed or elected pursuant to 15
this subsection shall serve for two year terms. If there are no 16
firefighters under the jurisdiction of the board eligible to vote, a 17
second eligible employee representative shall be elected by the law 18
enforcement officers eligible to vote. If there are no law 19
enforcement officers under the jurisdiction of the board eligible to 20
vote, a second eligible representative shall be elected by the 21
firefighters eligible to vote. 22
(d) If no eligible active or retired firefighter or law 23
enforcement officer is willing or able to be elected to the board 24
under (c) of this subsection, then the following individuals may be 25
elected to the board under (c) of this subsection:26
(i) Any active or retired firefighter under this chapter or 27
chapters 41.16, 41.18, and 52.26 RCW or law enforcement officers 28
under this chapter or chapter 41.20 RCW who resides within the 29
jurisdiction served by the board; 30
(ii) The surviving spouse or domestic partner of a firefighter or 31
law enforcement officer subject to the jurisdiction of the board.32
(2) The members of both the county and city disability boards 33
shall not receive compensation for their service upon the boards but 34
the members shall be reimbursed by their respective county or city 35
for all expenses incidental to such service as to the amount 36
authorized by law. 37
(3) The disability boards authorized for establishment by this 38
section shall perform all functions, exercise all powers, and make 39
all such determinations as specified in this chapter.40
p. 39 HB 2034
NEW SECTION. Sec. 321. (1) The director of retirement systems 1
shall adopt rules, in accordance with chapter 34.05 RCW, under which 2
each disability board shall execute its disability retirement duties 3
under this chapter. The rules shall include, but not be limited to, 4
the following:5
(a) Standards governing the type and manner of presentation of 6
medical, employability, and other evidence before disability boards; 7
and 8
(b) Standards governing the necessity and frequency of medical 9
and employability reexaminations of persons receiving disability 10
benefits. 11
(2) If the director determines that an order or determination of 12
a disability board was not processed in accordance with the rules 13
established under this section, the director may remand the order or 14
determination for further proceedings consistent with the rules.15
NEW SECTION. Sec. 322. Any member, regardless of age or years 16
of service may be retired by the disability board, subject to 17
approval by the director, for any disability incurred in the line of 18
duty which has been continuous since his or her discontinuance of 19
service and which renders the member unable to continue service. No 20
disability retirement allowance shall be paid until the expiration of 21
a period of six months after the discontinuance of service during 22
which period the member, if found to be physically or mentally unfit 23
for duty by the disability board following receipt of his or her 24
application for disability retirement, shall be granted a disability 25
leave by the disability board and shall receive an allowance equal to 26
the full monthly salary and shall continue to receive all other 27
benefits provided to active employees from the employer for such 28
period. However, if, at any time during the initial six-month period, 29
the disability board finds the beneficiary is no longer disabled, the 30
disability leave allowance shall be canceled and the member shall be 31
restored to duty in the same rank or position, if any, held by the 32
beneficiary at the time the member became disabled. Applications for 33
disability retirement shall be processed in accordance with the 34
following procedures:35
(1) Any member who believes he or she is or is believed to be 36
physically or mentally disabled shall be examined by such medical 37
authority as the disability board shall employ, upon application of 38
the member, or a person acting in his or her behalf, stating that the 39
p. 40 HB 2034
member is disabled, either physically or mentally: PROVIDED, That no 1
such application shall be considered unless the member or someone in 2
his or her behalf, in case of the incapacity of a member, shall have 3
filed the application within a period of one year from and after the 4
discontinuance of service of the member. 5
(2) If the examination shows, to the satisfaction of the 6
disability board, that the member is physically or mentally disabled 7
from the further performance of duty, that such disability was 8
incurred in the line of duty, and that such disability has been 9
continuous from the discontinuance of service, the disability board 10
shall enter its written decision and order, accompanied by 11
appropriate findings of fact and by conclusions evidencing compliance 12
with this chapter, granting the member a disability retirement 13
allowance; otherwise, if the member is not found by the disability 14
board to be so disabled, the application shall be denied pursuant to 15
a similar written decision and order, subject to appeal to the 16
director in accordance with section 339 of this act: PROVIDED, That 17
in any order granting a duty disability retirement allowance, the 18
disability board shall make a finding that the disability was 19
incurred in line of duty. 20
(3) Every order of a disability board granting a duty disability 21
retirement allowance shall immediately be reviewed by the director 22
except the finding that the disability was incurred in the line of 23
duty. The director may affirm the decision of the disability board or 24
remand the case for further proceedings, or the director may reverse 25
the decision of the disability board if the director finds the 26
disability board's findings, inferences, conclusions, or decisions 27
are: 28
(a) In violation of constitutional provisions;29
(b) In excess of the statutory authority or jurisdiction of the 30
disability board; 31
(c) Made upon unlawful procedure; 32
(d) Affected by other error of law; 33
(e) Clearly erroneous in view of the entire record as submitted 34
and the public policy contained in this chapter; or35
(f) Arbitrary or capricious. 36
(4) Every member who can establish, to the disability board, that 37
he or she is physically or mentally disabled from the further 38
performance of duty, that such disability was incurred in the line of 39
duty, and that such disability will be in existence for a period of 40
p. 41 HB 2034
at least six months may waive the six-month period of disability 1
leave and be immediately granted a duty disability retirement 2
allowance, subject to the approval of the director as provided in 3
subsection (3) of this section. 4
NEW SECTION. Sec. 323. Any member, regardless of age or years 5
of service, may be retired by the disability board, subject to 6
approval by the director as provided in this section, for any 7
disability not incurred in the line of duty which has been continuous 8
since discontinuance of service and which renders the member unable 9
to continue service. No disability retirement allowance may be paid 10
until the expiration of a period of six months after the 11
discontinuance of service during which period the member, if found to 12
be physically or mentally unfit for duty by the disability board 13
following receipt of the member's application for disability 14
retirement, shall be granted a disability leave by the disability 15
board and shall receive an allowance equal to the member's full 16
monthly salary and shall continue to receive all other benefits 17
provided to active employees from the member's employer for the 18
period. However, if, at any time during the initial six-month period, 19
the disability board finds the beneficiary is no longer disabled, the 20
disability leave allowance shall be canceled and the member shall be 21
restored to duty in the same rank or position, if any, held by the 22
member at the time the member became disabled. Applications for 23
disability retirement shall be processed in accordance with the 24
following procedures:25
(1) Any member who believes he or she is, or is believed to be, 26
physically or mentally disabled shall be examined by such medical 27
authority as the disability board shall employ, upon application of 28
the member, or a person acting in the member's behalf, stating that 29
the member is disabled, either physically or mentally: PROVIDED, That 30
no such application shall be considered unless the member or someone 31
acting in the member's behalf, in case of the incapacity of a member, 32
has filed the application within a period of one year from and after 33
the discontinuance of service of the member. 34
(2) If the examination shows, to the satisfaction of the 35
disability board, that the member is physically or mentally disabled 36
from the further performance of duty, that such disability was not 37
incurred in the line of duty, and that such disability had been 38
continuous from the discontinuance of service, the disability board 39
p. 42 HB 2034
shall enter its written decision and order, accompanied by 1
appropriate findings of fact and by conclusions evidencing compliance 2
with this chapter, granting the member a disability retirement 3
allowance. Otherwise, if the member is not found by the disability 4
board to be so disabled, the application shall be denied pursuant to 5
a similar written decision and order, subject to appeal to the 6
director in accordance with section 339 of this act: PROVIDED, That 7
in any order granting a nonduty disability retirement allowance, the 8
disability board shall make a finding that the disability was not 9
incurred in the line of duty. 10
(3) Every order of a disability board granting a nonduty 11
disability retirement allowance shall immediately be reviewed by the 12
director except the finding that the disability was not incurred in 13
the line of duty. The director may affirm the decision of the 14
disability board or remand the case for further proceedings, or the 15
director may reverse the decision of the disability board if the 16
director finds the disability board's findings, inferences, 17
conclusions, or decisions are: 18
(a) In violation of constitutional provisions;19
(b) In excess of the statutory authority or jurisdiction of the 20
disability board; 21
(c) Made upon unlawful procedure; 22
(d) Affected by other error of law; 23
(e) Clearly erroneous in view of the entire record as submitted 24
and the public policy contained in this chapter; or25
(f) Arbitrary or capricious. 26
(4) Every member who can establish to the disability board that 27
the member is physically or mentally disabled from the further 28
performance of duty, that such disability was not incurred in the 29
line of duty, and that such disability will be in existence for a 30
period of at least six months, may waive the six-month period of 31
disability leave and be immediately granted a nonduty disability 32
retirement allowance, subject to the approval of the director as 33
provided in subsection (3) of this section. 34
NEW SECTION. Sec. 324. (1) Upon retirement for disability a 35
member shall be entitled to receive a monthly retirement allowance 36
computed as follows: (a) A basic amount of fifty percent of final 37
average salary at time of disability retirement, and (b) an 38
additional five percent of final average salary for each child as 39
p. 43 HB 2034
defined in section 303 (6) of this act, (c) the combined total of (a) 1
and (b) of this subsection shall not exceed a maximum of sixty 2
percent of final average salary. 3
(2) A disabled member shall begin receiving the disability 4
retirement allowance as of the expiration of his or her six month 5
period of disability leave or, if his or her application was filed 6
after the sixth month of discontinuance of service but prior to the 7
one year time limit, the member's disability retirement allowance 8
shall be retroactive to the end of the sixth month.9
(3) Benefits under this section will be payable until the member 10
recovers from the disability or dies. If at the time that the 11
disability ceases the member is over the age of fifty, he or she 12
shall then receive either disability retirement allowance or 13
retirement for service allowance, whichever is greater.14
(4) Benefits under this section for a disability that is incurred 15
while in other employment will be reduced by any amount the member 16
receives or is entitled to receive from workers' compensation, social 17
security, group insurance, other pension plan, or any other similar 18
source provided by another employer on account of the same 19
disability. 20
(5) A member retired for disability shall be subject to periodic 21
examinations by a physician approved by the disability board prior to 22
attainment of age fifty, pursuant to rules adopted by the director 23
under section 321 of this act. Examinations of members who retired 24
for disability prior to July 26, 1981, shall not exceed two medical 25
examinations per year. 26
NEW SECTION. Sec. 325. (1) A disabled member who believes that 27
his or her disability has ceased in accordance with section 324 (3) of 28
this act may make application to the disability board which 29
originally found the member to be disabled, for a determination that 30
the disability has ceased.31
(2) Every order of a disability board determining that a member's 32
disability has ceased pursuant to section 324 (3) of this act shall 33
immediately be reviewed by the director. The director may affirm the 34
decision of the disability board or remand the case for further 35
proceedings if the director finds the disability board's findings, 36
inferences, conclusions, or decisions are: 37
(a) In violation of constitutional provisions;38
p. 44 HB 2034
(b) In excess of the statutory authority or jurisdiction of the 1
disability board; 2
(c) Made upon unlawful procedure; 3
(d) Affected by other error of law; 4
(e) Clearly erroneous in view of the entire record as submitted 5
and the public policy contained in this chapter; or6
(f) Arbitrary or capricious. 7
(3) Determinations of whether a disability has ceased under 8
section 324 (3) of this act and this section shall be made in 9
accordance with the same procedures and standards governing other 10
cancellations of disability retirement. 11
NEW SECTION. Sec. 326. (1) Upon the basis of reexaminations of 12
members on disability retirement as provided in section 324 of this 13
act, the disability board shall determine whether such disability 14
beneficiary is still unable to perform his or her duties either 15
physically or mentally for service in the department where he or she 16
was employed.17
(2) If the disability board determines that the beneficiary is 18
not so incapacitated the retirement allowance shall be canceled and 19
the member shall be restored to duty in the same civil service rank, 20
if any, held by the beneficiary at the time of his or her retirement 21
or if unable to perform the duties of that rank, then, at his or her 22
request, in such other like or lesser rank as may be or become open 23
and available, the duties of which he or she is then able to perform. 24
In no event, shall a beneficiary previously drawing a disability 25
allowance be returned or be restored to duty at a salary or rate of 26
pay less than the current salary attached to the rank or position 27
held by the beneficiary at the date of retirement for disability. If 28
the disability board determines that the beneficiary is able to 29
return to service he or she shall be entitled to notice and a 30
hearing, both the notice and the hearing shall comply with the 31
requirements of chapter 34.05 RCW. 32
(3) Should a disability beneficiary reenter service and be 33
eligible for membership in the retirement system, the retirement 34
allowance shall be canceled and he or she shall immediately become a 35
member of the retirement system. 36
(4) Should any disability beneficiary under age fifty refuse to 37
submit to examination, the retirement allowance shall be discontinued 38
p. 45 HB 2034
until withdrawal of such refusal, and should such refusal continue 1
for one year or more, the retirement allowance shall be canceled.2
(5) Should the disability retirement allowance of any disability 3
beneficiary be canceled for any cause other than reentrance into 4
service or retirement for service, he or she shall be paid the 5
excess, if any, of the accumulated contributions at the time of 6
retirement over all payments made on his or her behalf under this 7
chapter. 8
(6) Any person feeling aggrieved by an order of a disability 9
board determining that a beneficiary's disability has not ceased, 10
pursuant to section 324 (3) of this act has the right to appeal the 11
order or determination to the director. The director shall have no 12
jurisdiction to entertain the appeal unless a notice of appeal is 13
filed with the director within thirty days following the rendition of 14
the order by the disability board. A copy of the notice of appeal 15
shall be served upon the director and the applicable disability board 16
and, within ninety days thereof, the disability board shall certify 17
its decision and order which shall include findings of fact and 18
conclusions of law, together with a transcript of all proceedings in 19
connection therewith, to the director for review. Upon review of the 20
record, the director may affirm the order of the disability board or 21
may remand the case for further proceedings if the director finds 22
that the disability board's findings, inferences, conclusions, or 23
decisions are: 24
(a) In violation of constitutional provisions;25
(b) In excess of the statutory authority or jurisdiction of the 26
disability board; 27
(c) Made upon unlawful procedure; 28
(d) Affected by other error of law; 29
(e) Clearly erroneous in view of the entire record as submitted 30
and the public policy contained in this chapter; or31
(f) Arbitrary or capricious. 32
NEW SECTION. Sec. 327. (1) Whenever any active member, or any 33
member hereafter retired, on account of service, sickness, or 34
disability, not caused or brought on by dissipation or abuse, of 35
which the disability board shall be judge, is confined in any 36
hospital or in home, and whether or not so confined, requires medical 37
services, the employer shall pay for the active or retired member the 38
necessary medical services not payable from some other source as 39
p. 46 HB 2034
provided for in subsection (2) of this section. In the case of active 1
or retired firefighters the employer may make the payments provided 2
for in this section from the firefighters' pension fund established 3
pursuant to RCW 41.16.050 where the fund had been established prior 4
to March 1, 1970. If this pension fund is depleted, the employer 5
shall have the obligation to pay all benefits payable under chapters 6
41.16 and 41.18 RCW. 7
(a) The disability board in all cases may have the active or 8
retired member suffering from such sickness or disability examined at 9
any time by a licensed physician or physicians, to be appointed by 10
the disability board, for the purpose of ascertaining the nature and 11
extent of the sickness or disability, the physician or physicians to 12
report to the disability board the result of the examination within 13
three days thereafter. Any active or retired member who refuses to 14
submit to such examination or examinations shall forfeit all rights 15
to benefits under this section for the period of the refusal.16
(b) The disability board shall designate the medical services 17
available to any sick or disabled member. 18
(2) The medical services payable under this section will be 19
reduced by any amount received or eligible to be received by the 20
member under workers' compensation, social security including the 21
changes incorporated under Public Law 89 -97, insurance provided by 22
another employer, other pension plan, or any other similar source. 23
Failure to apply for coverage if otherwise eligible under the 24
provisions of Public Law 89 -97 shall not be deemed a refusal of 25
payment of benefits thereby enabling collection of charges under the 26
provisions of this chapter. 27
(3) Upon making the payments provided for in subsection (1) of 28
this section, the employer shall be subrogated to all rights of the 29
member against any third party who may be held liable for the 30
member's injuries or for payment of the cost of medical services in 31
connection with a member's sickness or disability to the extent 32
necessary to recover the amount of payments made by the employer.33
(4) Any employer under this chapter, either singly, or jointly 34
with any other such employer or employers through an association 35
thereof as provided for in chapter 48.21 RCW, may provide for all or 36
part of one or more plans of group hospitalization and medical aid 37
insurance to cover any of its employees who are members of the 38
restated law enforcement officers' and firefighters' retirement 39
system, and/or retired former employees who were, before retirement, 40
p. 47 HB 2034
members of the retirement system, through contracts with regularly 1
constituted insurance carriers, with health maintenance organizations 2
as defined in chapter 48.46 RCW, or with health care service 3
contractors as defined in chapter 48.44 RCW. Benefits payable under 4
the plan or plans shall be deemed to be amounts received or eligible 5
to be received by the active or retired member under subsection (2) 6
of this section. 7
(5) Any employer under this chapter may, at its discretion, elect 8
to reimburse a retired former employee under this chapter for 9
premiums the retired former employee has paid for medical insurance 10
that supplements medicare, including premiums the retired former 11
employee has paid for medicare part B coverage. 12
NEW SECTION. Sec. 328. (1) In the event of the duty connected 13
death of any member who is in active service, or who has vested under 14
the provisions of section 317 of this act with twenty or more service 15
credit years of service, or who is on duty connected disability leave 16
or retired for duty connected disability, or upon the death of a 17
member who has left the employ of an employer due to service in the 18
national guard or military reserves and dies while honorably serving 19
in the national guard or military reserves during a period of war as 20
defined in RCW 41.04.005, the surviving spouse shall become entitled, 21
subject to section 330 of this act, to receive a monthly allowance 22
equal to fifty percent of the final average salary at the date of 23
death if active, or the amount of retirement allowance the vested 24
member would have received at age fifty, or the amount of the 25
retirement allowance such retired member was receiving at the time of 26
death if retired for duty connected disability. The amount of this 27
allowance will be increased five percent of final average salary for 28
each child as defined in section 303 (6) of this act, subject to a 29
maximum combined allowance of sixty percent of final average salary: 30
PROVIDED, That if the child or children is or are in the care of a 31
legal guardian, payment of the increase attributable to each child 32
will be made to the child's legal guardian or, in the absence of a 33
legal guardian and if the member has created a trust for the benefit 34
of the child or children, payment of the increase attributable to 35
each child will be made to the trust.36
(2) If at the time of the duty connected death of a vested member 37
with twenty or more service credit years of service as provided in 38
subsection (1) of this section or a member retired for duty connected 39
p. 48 HB 2034
disability, or at the time of the death of a member who has left the 1
employ of an employer due to service in the national guard or 2
military reserves and dies while honorably serving in the national 3
guard or military reserves during a period of war as defined in RCW 4
41.04.005, the surviving spouse has not been lawfully married to such 5
member for one year prior to retirement or separation from service if 6
a vested member, the surviving spouse shall not be eligible to 7
receive the benefits under this section: PROVIDED, That if a member 8
dies as a result of a disability incurred in the line of duty or 9
while honorably serving in the national guard or military reserves 10
during a period of war as defined in RCW 41.04.005, then if he or she 11
was married at the time he or she was disabled or left the employ of 12
an employer due to service in the national guard or military reserves 13
during a period of war as defined in RCW 41.04.005, the surviving 14
spouse shall be eligible to receive the benefits under this section.15
(3) If there be no surviving spouse eligible to receive benefits 16
at the time of such member's duty connected death, then the child or 17
children of such member shall receive a monthly allowance equal to 18
thirty percent of final average salary for one child and an 19
additional ten percent for each additional child subject to a maximum 20
combined payment, under this subsection, of sixty percent of final 21
average salary. When there cease to be any eligible children as 22
defined in section 303 (6) of this act, there shall be paid to the 23
legal heirs of the member the excess, if any, of accumulated 24
contributions of the member at the time of death over all payments 25
made to survivors on his or her behalf under this chapter: PROVIDED, 26
That payments under this subsection to children shall be prorated 27
equally among the children, if more than one. If the member has 28
created a trust for the benefit of the child or children, the payment 29
shall be made to the trust. 30
(4) In the event that there is no surviving spouse eligible to 31
receive benefits under this section, and that there be no child or 32
children eligible to receive benefits under this section, then the 33
accumulated contributions shall be paid to the estate of the member.34
(5) If a surviving spouse receiving benefits under this section 35
remarries after June 13, 2002, the surviving spouse shall continue to 36
receive the benefits under this section. 37
(6) If a surviving spouse receiving benefits under the provisions 38
of this section thereafter dies and there are children as defined in 39
section 303(6) of this act, payment to the spouse shall cease and the 40
p. 49 HB 2034
child or children shall receive the benefits as provided in 1
subsection (3) of this section. 2
(7) The payment provided by this section shall become due the day 3
following the date of death and payments shall be retroactive to that 4
date. 5
NEW SECTION. Sec. 329. (1) In the event of the nonduty 6
connected death of any member who is in active service, or who has 7
vested under section 317 of this act with twenty or more service 8
credit years of service, or who is on disability leave or retired, 9
whether for nonduty connected disability or service, the surviving 10
spouse shall become entitled to receive a monthly allowance equal to 11
fifty percent of the final average salary at the date of death if 12
active, or the amount of retirement allowance the vested member would 13
have received at age fifty, or the amount of the retirement allowance 14
such retired member was receiving at the time of death if retired for 15
service or nonduty connected disability. The amount of this allowance 16
will be increased five percent of final average salary for each child 17
as defined in section 303 (6) of this act, subject to a maximum 18
combined allowance of sixty percent of final average salary: 19
PROVIDED, That if the child or children is or are in the care of a 20
legal guardian, payment of the increase attributable to each child 21
will be made to the child's legal guardian or, in the absence of a 22
legal guardian and if the member has created a trust for the benefit 23
of the child or children, payment of the increase attributable to 24
each child will be made to the trust.25
(2) If at the time of the death of a vested member with twenty or 26
more service credit years of service as provided in subsection (1) of 27
this section or a member retired for service or disability, the 28
surviving spouse has not been lawfully married to such member for one 29
year prior to retirement or separation from service if a vested 30
member, the surviving spouse shall not be eligible to receive the 31
benefits under this section. 32
(3) If there be no surviving spouse eligible to receive benefits 33
at the time of such member's death, then the child or children of 34
such member shall receive a monthly allowance equal to thirty percent 35
of final average salary for one child and an additional ten percent 36
for each additional child subject to a maximum combined payment, 37
under this subsection, of sixty percent of final average salary. When 38
there cease to be any eligible children as defined in section 303 (6) 39
p. 50 HB 2034
of this act, there shall be paid to the legal heirs of the member the 1
excess, if any, of accumulated contributions of the member at the 2
time of death over all payments made to survivors on his or her 3
behalf under this chapter: PROVIDED, That payments under this 4
subsection to children shall be prorated equally among the children, 5
if more than one. If the member has created a trust for the benefit 6
of the child or children, the payment shall be made to the trust.7
(4) In the event that there is no surviving spouse eligible to 8
receive benefits under this section, and that there be no child or 9
children eligible to receive benefits under this section, then the 10
accumulated contributions shall be paid to the estate of the member.11
(5) If a surviving spouse receiving benefits under this section 12
remarries after June 13, 2002, the surviving spouse shall continue to 13
receive the benefits under this section. 14
(6) If a surviving spouse receiving benefits under the provisions 15
of this section thereafter dies and there are children as defined in 16
section 303(6) of this act, payment to the spouse shall cease and the 17
child or children shall receive the benefits as provided in 18
subsection (3) of this section. 19
(7) The payment provided by this section shall become due the day 20
following the date of death and payments shall be retroactive to that 21
date. 22
NEW SECTION. Sec. 330. (1) An ex spouse of a law enforcement 23
officers' and firefighters' retirement system retiree shall qualify 24
as surviving spouse under section 328 or 329 of this act if the ex 25
spouse has been provided benefits under any currently effective court 26
decree of dissolution or legal separation or in any court order or 27
court-approved property settlement agreement incident to any court 28
decree of dissolution or legal separation. Such an ex spouse shall 29
continue to receive the court-awarded portion of the member's benefit 30
after the member's death as if the member was still alive.31
(2) An ex spouse whose benefit resumes as a result of chapter 62, 32
Laws of 2005 shall receive an initial payment equivalent to that 33
portion of the member's benefit received prior to its suspension. The 34
benefit will not be adjusted under section 342 of this act for the 35
period the allowance was suspended. 36
(3) Chapter 62, Laws of 2005 shall not result in the payment of 37
benefits for the period during which benefits were suspended.38
(4) This section shall apply retroactively. 39
p. 51 HB 2034
NEW SECTION. Sec. 331. (1) No later than July 1, 2005, the 1
department shall adopt rules to allow a member who meets the criteria 2
set forth in subsection (2) of this section to choose an actuarially 3
equivalent benefit that pays the member a reduced retirement 4
allowance and upon death, such portion of the member's reduced 5
retirement allowance as the department by rule designates shall be 6
continued throughout the life of a spouse ineligible for survivor 7
benefits under section 328 or 329 of this act.8
(2) To choose an actuarially equivalent benefit according to 9
subsection (1) of this section, a member shall: 10
(a) Have a portion of the retirement allowance payable to the 11
retiree that is not subject to periodic payments pursuant to a 12
property division obligation as provided for in RCW 41.50.670; and13
(b) Choose an actuarially reduced benefit equivalent to that 14
portion not subject to periodic payments under (a) of this subsection 15
during a one-year period beginning one year after the date of 16
marriage to the survivor benefit-ineligible spouse.17
(3)(a) A member who married a spouse ineligible for survivor 18
benefits under section 328 or 329 of this act prior to the effective 19
date of the rules adopted under this section and satisfies subsection 20
(2)(a) of this section has one year to designate their spouse as a 21
survivor beneficiary following the adoption of the rules.22
(b) A member who married a spouse ineligible for survivor 23
benefits under section 328 or 329 of this act, has been married to 24
that spouse for at least two years prior to September 1, 2015, and 25
satisfies subsection (2)(a) of this section has one year from 26
September 1, 2015, to designate their spouse as a survivor 27
beneficiary. The office of the state actuary must provide the 28
department with administrative factors to ensure that the benefits 29
provided under this section are actuarially equivalent.30
(c) A deceased member's spouse who was eligible to be provided a 31
survivor benefit under subsection (1) of this section but the member 32
did not select a survivor benefit, and who prior to March 1, 2015, 33
exhausted all administrative remedies with the department for 34
establishing eligibility for a benefit under this section, is 35
eligible beginning August 1, 2015, for a retirement allowance equal 36
to two-thirds of the gross monthly retirement allowance the retired 37
member received at the time of death. 38
(4) No benefit provided to a child survivor beneficiary under 39
section 328 or 329 of this act is affected or reduced by the member's 40
p. 52 HB 2034
selection of the actuarially reduced spousal survivor benefit 1
provided by this section. 2
(5)(a) Any member who chose to receive a reduced retirement 3
allowance under subsection (1) of this section is entitled to receive 4
a retirement allowance adjusted in accordance with (b) of this 5
subsection if: 6
(i) The retiree's survivor spouse designated in subsection (1) of 7
this section predeceases the retiree; and 8
(ii) The retiree provides to the department proper proof of the 9
designated beneficiary's death. 10
(b) The retirement allowance payable to the retiree from the 11
beginning of the month following the date of the beneficiary's death 12
shall be increased by the following: 13
(i) One hundred percent multiplied by the result of (b)(ii) of 14
this subsection converted to a percent; 15
(ii) Subtract one from the reciprocal of the appropriate joint 16
and survivor option factor. 17
NEW SECTION. Sec. 332. (1) Should service of a member be 18
discontinued except by death, disability, or retirement, the member 19
shall, upon application therefor, be paid the accumulated 20
contributions within sixty days after the day of application and the 21
rights to all benefits as a member shall cease: PROVIDED, That any 22
member with at least five years' service may elect the provisions of 23
section 317(2) of this act.24
(2) Any member whose contributions have been paid in accordance 25
with subsection (1) of this section and who reenters the service of 26
an employer shall upon the restoration of withdrawn contributions, 27
which restoration must be completed within a total period of five 28
years of service following resumption of employment, then receive 29
credit toward retirement for the period of previous service which 30
these contributions are to cover. 31
(3) If the member fails to meet the time limitations of 32
subsection (2) of this section, the member may make the payment 33
required under RCW 41.50.165(2) prior to retirement. The member shall 34
then receive credit toward retirement for the period of previous 35
service that the withdrawn contributions cover. 36
NEW SECTION. Sec. 333. Each person affected by this chapter who 37
at the time of entering the armed services was a member of this 38
p. 53 HB 2034
system, and has honorably served in the armed services of the United 1
States, shall have added to the period of service as computed under 2
this chapter, the period of service in the armed forces: PROVIDED, 3
That such credited service shall not exceed five years.4
NEW SECTION. Sec. 334. If a member of this retirement system 5
served as a law enforcement officer or firefighter under a prior 6
pension system and that service is not creditable to this retirement 7
system because the member withdrew his or her contributions plus 8
accrued interest from the prior pension system, the member's prior 9
service as a law enforcement officer shall be credited to this 10
retirement system if the member pays to the retirement system the 11
amount under RCW 41.50.165(2) prior to retirement.12
NEW SECTION. Sec. 335. If a member's prior service as a law 13
enforcement officer or firefighter under a prior pension system is 14
not creditable because, although employed in a position covered by a 15
prior pension act, the member had not yet become a member of the 16
pension system governed by the act, the member's prior service as a 17
law enforcement officer or firefighter shall be creditable, if the 18
member pays to the plan the amount set forth under RCW 41.50.165(2) 19
prior to retirement.20
NEW SECTION. Sec. 336. Any member of the teachers' retirement 21
system plans 1, 2, or 3, the public employees' retirement system 22
plans 1, 2, or 3, the public safety employees' retirement system plan 23
2, the school employees' retirement system plans 2 or 3, or the 24
Washington state patrol retirement system plans 1 or 2 who has 25
previously established service credit in the law enforcement 26
officers' and firefighters' retirement system plan 1 may make an 27
irrevocable election to have such service transferred to their 28
current retirement system and plan subject to the following 29
conditions:30
(1) If the individual is employed by an employer in an eligible 31
position, as of July 1, 1997, the election to transfer service must 32
be filed in writing with the department no later than July 1, 1998. 33
If the individual is not employed by an employer in an eligible 34
position, as of July 1, 1997, the election to transfer service must 35
be filed in writing with the department no later than one year from 36
the date they are employed by an employer in an eligible position.37
p. 54 HB 2034
(2) An individual transferring service under this section 1
forfeits the rights to all benefits as a member of the law 2
enforcement officers' and firefighters' retirement system plan 1 and 3
will be permanently excluded from membership. 4
(3) Any individual choosing to transfer service under this 5
section will have transferred to their current retirement system and 6
plan: (a) All the individual's accumulated contributions; (b) an 7
amount sufficient to ensure that the employer contribution rate in 8
the individual's current system and plan will not increase due to the 9
transfer; and (c) all applicable months of service, as defined in 10
section 303(29) of this act. 11
(4) If an individual has withdrawn contributions from the law 12
enforcement officers' and firefighters' retirement system plan 1, the 13
individual may restore the contributions, together with interest as 14
determined by the director, and recover the service represented by 15
the contributions for the sole purpose of transferring service under 16
this section. The contributions must be restored before the transfer 17
can occur and the restoration must be completed within the time 18
limitations specified in subsection (1) of this section.19
(5) Service transferred under this section is applicable for 20
meeting the total service required for military service credit as 21
defined in RCW 41.40.170(3) but is not applicable for meeting the 22
total service credit required for military service credit under RCW 23
43.43.260(3). This subsection applies to members who retired on or 24
after January 1, 1998. 25
(6) If an individual does not meet the time limitations of 26
subsection (1) of this section, the individual may elect to restore 27
any withdrawn contributions and transfer service under this section 28
by paying the amount required under subsection (3)(b) of this section 29
less any employee contributions transferred. 30
NEW SECTION. Sec. 337. (1) A member who is on a paid leave of 31
absence authorized by a member's employer shall continue to receive 32
service credit as provided under the provisions of this chapter.33
(2) A member who receives compensation from an employer while on 34
an authorized leave of absence to serve as an elected official of a 35
labor organization, and whose employer is reimbursed by the labor 36
organization for the compensation paid to the member during the 37
period of absence, may also be considered to be on a paid leave of 38
absence. This subsection shall only apply if the member's leave of 39
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absence is authorized by a collective bargaining agreement that 1
provides that the member retains seniority rights with the employer 2
during the period of leave. The basic salary reported for a member 3
who establishes service credit under this subsection may not be 4
greater than the salary paid to the highest paid job class covered by 5
the collective bargaining agreement. 6
NEW SECTION. Sec. 338. (1) A member eligible to retire under 7
section 317 of this act may, at the time of filing a written 8
application for retirement with the department, apply to the 9
department to make a one-time purchase of up to five years of 10
additional service credit.11
(2) To purchase additional service credit under this section, a 12
member shall pay the actuarial equivalent value of the resulting 13
increase in the member's benefit. 14
(3) Subject to rules adopted by the department, a member 15
purchasing additional service credit under this section may pay all 16
or part of the cost with a lump sum payment, eligible rollover, 17
direct rollover, or trustee-to-trustee transfer from an eligible 18
retirement plan. The department shall adopt rules to ensure that all 19
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
(4) Additional service credit purchased under this section is not 27
membership service and shall be used exclusively to provide the 28
member with a monthly annuity that is paid in addition to the 29
member's retirement allowance. 30
NEW SECTION. Sec. 339. Any person feeling aggrieved by any 31
order or determination of a disability board denying disability leave 32
or disability retirement, or canceling a previously granted 33
disability retirement allowance, shall have the right to appeal the 34
order or determination to the director. The director shall have no 35
jurisdiction to entertain the appeal unless a notice of appeal is 36
filed with the director within thirty days following the rendition of 37
the order by the applicable disability board. A copy of the notice of 38
p. 56 HB 2034
appeal shall be served upon the director and the applicable 1
disability board and, within ninety days thereof, the disability 2
board shall certify its decision and order which shall include 3
findings of fact and conclusions of law, together with a transcript 4
of all proceedings in connection therewith, to the director for 5
review. Upon review of the record, the director may affirm the order 6
of the disability board or may remand the case for such further 7
proceedings as he or she may direct, in accordance with such rules of 8
procedure as the director shall adopt. 9
NEW SECTION. Sec. 340. Any person aggrieved by any final 10
decision of the director must, before petitioning for judicial 11
review, file with the director of the retirement system by mail or 12
personally within sixty days from the day the decision was 13
communicated to the person, a notice for a hearing. The notice of 14
hearing shall set forth in full detail the grounds upon which such 15
person considers such decision unjust or unlawful and shall include 16
every issue to be considered, and it must contain a detailed 17
statement of facts upon which such person relies in support thereof. 18
Such persons shall be deemed to have waived all objections or 19
irregularities concerning the matter on which such appeal is taken 20
other than those specifically set forth in the notice of hearing or 21
appearing in the records of the retirement system.22
NEW SECTION. Sec. 341. A hearing shall be held by the director, 23
or the director's duly authorized representative, in the county of 24
the residence of the claimant at a time and place designated by the 25
director. Such hearing shall be de novo and shall conform to the 26
provisions of chapter 34.05 RCW. The disability board and the 27
department shall be entitled to appear in all such proceedings and 28
introduce testimony in support of the decision. Judicial review of 29
any final decision by the director shall be governed by the 30
provisions of chapter 34.05 RCW.31
NEW SECTION. Sec. 342. For purposes of this section:32
(1) "Index" shall mean, for any calendar year, that year's 33
average Consumer Price Index —Seattle, Washington area for urban wage 34
earners and clerical workers, all items (1957 -1959=100), compiled by 35
the Bureau of Labor Statistics, United States Department of Labor;36
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(2) "Retirement allowance" shall mean the retirement allowance 1
provided for in sections 318 and 324 of this act, and the monthly 2
allowance provided for in section 328 of this act. 3
Effective April 1 of 1971, and of each succeeding year, every 4
retirement allowance which has been in effect for more than one year 5
shall be adjusted to that dollar amount which exceeds its original 6
dollar amount by the percentage difference which the department finds 7
to exist between the index for the previous calendar year and the 8
index for the calendar year prior to the effective retirement date of 9
the person to whom, or on behalf of whom, such retirement allowance 10
is being paid. 11
For the purposes of this section, basic allowance shall mean that 12
portion of a total retirement allowance, and any cost-of-living 13
adjustment thereon, attributable to a member (individually) and shall 14
not include the increased amounts attributable to the existence of a 15
child or children. In those cases where a child ceases to be 16
qualified as an eligible child, so as to lessen the total allowance, 17
the allowance shall, at that time, be reduced to the basic allowance 18
plus the amount attributable for the appropriate number of eligible 19
children. In those cases where a child qualifies as an eligible child 20
subsequent to the retirement of a member so as to increase the total 21
allowance payable, such increased allowance shall at the time of the 22
next and appropriate subsequent cost-of-living adjustments, be 23
considered the original dollar amount of the allowance.24
NEW SECTION. Sec. 343. All benefits presently payable pursuant 25
to the provisions of RCW 41.20.050, 41.20.060, and 41.20.080 as such 26
RCW sections existed prior to the effective date of the amendment of 27
such RCW sections by sections 1, 2, 3, chapter 191, Laws of 1961 to 28
persons who retired prior to the effective date of the 1961 29
amendatory act, shall be increased annually as provided in this 30
section. The local pension board shall meet subsequent to March 31st 31
but prior to June 30th of each year for the purpose of adjusting 32
benefit allowances payable pursuant to RCW 41.20.050, 41.20.060, and 33
41.20.080. The local board shall determine the increase in the 34
consumer price index between January 1st and December 31st of the 35
previous year and increase in dollar amount the benefits payable 36
subsequent to July 1st of the year in which the board makes such 37
determination by a dollar amount proportionate to the increase in the 38
consumer price index: PROVIDED, That regardless of the change in the 39
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consumer price index, such increase shall be at least two percent 1
each year such adjustment is made. 2
Each year effective with the July payment all benefits specified 3
in this section, shall be increased as authorized by this section. 4
This benefit increase shall be paid monthly as part of the regular 5
pension payment and shall be cumulative. 6
For the purpose of this section the term "consumer price index" 7
shall mean, for any calendar year, the consumer price index for the 8
Seattle, Washington area as compiled by the bureau of labor 9
statistics of the United States department of labor.10
NEW SECTION. Sec. 344. All benefits presently payable pursuant 11
to the provisions of RCW 41.20.085 which are not related to the 12
amount of current salary attached to the position held by the 13
deceased member, shall be increased annually in the same manner and 14
to the same extent as provided for pursuant to section 343 of this 15
act.16
NEW SECTION. Sec. 345. The legislature of the state of 17
Washington hereby declares that the relationship between members of 18
the restated law enforcement officers' and firefighters' retirement 19
system and their governmental employers is similar to that of workers 20
to their employers and that the sure and certain relief granted by 21
this chapter is desirable, and as beneficial to such law enforcement 22
officers and firefighters as workers' compensation coverage is to 23
persons covered by Title 51 RCW. The legislature further declares 24
that removal of law enforcement officers and firefighters from 25
workers' compensation coverage under Title 51 RCW necessitates the 26
(1) continuance of sure and certain relief for personal injuries 27
incurred in the course of employment or occupational disease, which 28
the legislature finds to be accomplished by the provisions of this 29
chapter and (2) protection for the governmental employer from actions 30
at law; and to this end the legislature further declares that the 31
benefits and remedies conferred by this chapter upon law enforcement 32
officers and firefighters covered under this chapter, shall be to the 33
exclusion of any other remedy, proceeding, or compensation for 34
personal injuries or sickness, caused by the governmental employer 35
except as otherwise provided by this chapter; and to that end all 36
civil actions and civil causes of actions by such law enforcement 37
officers and firefighters against their governmental employers for 38
p. 59 HB 2034
personal injuries or sickness are hereby abolished, except as 1
otherwise provided in this chapter. 2
NEW SECTION. Sec. 346. If injury or death results to a member 3
from the intentional or negligent act or omission of a member's 4
governmental employer, the member, the widow, widower, child, or 5
dependent of the member shall have the privilege to benefit under 6
this chapter and also have cause of action against the governmental 7
employer as otherwise provided by law, for any excess of damages over 8
the amount received or receivable under this chapter.9
NEW SECTION. Sec. 347. (1) Law enforcement officers' and 10
firefighters' plan 1 active members, term-vested members, retirees, 11
and survivors eligible for benefits under the plan 1 provisions of 12
this chapter on June 9, 2022, shall be eligible to receive the plan 1 13
lump sum defined benefit of $100 per service credit month payable by 14
January 31, 2023.15
(a) Members who retired for an in the line of duty disability 16
under section 322 of this act shall receive the greater of the lump 17
sum defined benefit of $100 per service credit month or a lump sum 18
defined benefit of $20,000. 19
(b) A member's beneficiary is eligible for an in the line of duty 20
death benefit under section 309 of this act. If there is more than 21
one eligible beneficiary the lump sum defined benefit will be 22
distributed in accordance with section 309 of this act.23
(c) If the member is deceased the member's survivor beneficiary 24
under section 328 of this act is eligible for this lump sum defined 25
benefit. 26
(2) If a member is active or term-vested, interest on the lump 27
sum defined benefit as determined by the director of retirement 28
systems shall accumulate from January 1, 2023, until distribution to 29
the participant upon retirement from service or for disability. For 30
the purposes of this section, a "term-vested member" is a member who 31
has rendered five years of service, has not withdrawn his or her 32
member contributions, and who has not applied for retirement.33
(3) If a member dies after June 9, 2022, but before distribution 34
of the lump sum defined benefit created in this section occurs, the 35
distribution shall be made according to the member's beneficiary 36
designation under this chapter. 37
p. 60 HB 2034
(4) The lump sum defined benefit created in this section is 1
subject to section 310 of this act. 2
NEW SECTION. Sec. 348. To the extent that the provisions of 3
this act are inconsistent with the provisions of any other law, the 4
provisions of this act shall be controlling.5
PART IV6
CONFORMING AMENDMENTS7
Sec. 401. RCW 2.10.155 and 1990 c 274 s 14 are each amended to 8
read as follows: 9
(1) No judge shall be eligible to receive the judge's monthly 10
service or disability retirement allowance if the retired judge is 11
employed: 12
(a) For more than eight hundred ten hours in a calendar year as a 13
pro tempore judge; or 14
(b) In an eligible position as defined in RCW 41.40.010 or 15
41.32.010, or as a law enforcement officer or firefighter as defined 16
in RCW 41.26.030 or section 303 of this act. 17
(2) Subsection (1) of this section notwithstanding, a previously 18
elected judge of the superior court who retired before June 7, 1990, 19
leaving a pending case in which the judge had made discretionary 20
rulings may hear the pending case as a judge pro tempore without 21
having his or her retirement allowance suspended. 22
(3) If a retired judge's benefits have been suspended under this 23
section, his or her benefits shall be reinstated when the retiree 24
terminates the employment that caused his or her benefits to be 25
suspended. Upon reinstatement, the retired judge's benefits shall be 26
actuarially recomputed pursuant to the rules adopted by the 27
department. 28
(4) The department shall adopt rules implementing this section.29
Sec. 402. RCW 6.15.020 and 2011 c 162 s 3 are each amended to 30
read as follows: 31
(1) It is the policy of the state of Washington to ensure the 32
well-being of its citizens by protecting retirement income to which 33
they are or may become entitled. For that purpose generally and 34
pursuant to the authority granted to the state of Washington under 11 35
p. 61 HB 2034
U.S.C. Sec. 522 (b)(2), the exemptions in this section relating to 1
retirement benefits are provided. 2
(2) Unless otherwise provided by federal law, any money received 3
by any citizen of the state of Washington as a pension from the 4
government of the United States, whether the same be in the actual 5
possession of such person or be deposited or loaned, shall be exempt 6
from execution, attachment, garnishment, or seizure by or under any 7
legal process whatever, and when a debtor dies, or absconds, and 8
leaves his or her family any money exempted by this subsection, the 9
same shall be exempt to the family as provided in this subsection. 10
This subsection shall not apply to child support collection actions 11
issued under chapter 26.18, 26.23, or 74.20A RCW, if otherwise 12
permitted by federal law. 13
(3) The right of a person to a pension, annuity, or retirement 14
allowance or disability allowance, or death benefits, or any optional 15
benefit, or any other right accrued or accruing to any citizen of the 16
state of Washington under any employee benefit plan, and any fund 17
created by such a plan or arrangement, shall be exempt from 18
execution, attachment, garnishment, or seizure by or under any legal 19
process whatever. This subsection shall not apply to child support 20
collection actions issued under chapter 26.18, 26.23, or 74.20A RCW 21
if otherwise permitted by federal law. This subsection shall permit 22
benefits under any such plan or arrangement to be payable to a 23
spouse, former spouse, child, or other dependent of a participant in 24
such plan to the extent expressly provided for in a qualified 25
domestic relations order that meets the requirements for such orders 26
under the plan, or, in the case of benefits payable under a plan 27
described in 26 U.S.C. Sec. 403 (b) or 408 of the internal revenue 28
code of 1986, as amended, or section 409 of such code as in effect 29
before January 1, 1984, to the extent provided in any order issued by 30
a court of competent jurisdiction that provides for maintenance or 31
support. This subsection does not prohibit actions against an 32
employee benefit plan, or fund for valid obligations incurred by the 33
plan or fund for the benefit of the plan or fund. 34
(4) For the purposes of this section, the term "employee benefit 35
plan" means any plan or arrangement that is described in RCW 36
49.64.020, including any Keogh plan, whether funded by a trust or by 37
an annuity contract, and in 26 U.S.C. Sec. 401 (a) or 403 (a) of the 38
internal revenue code of 1986, as amended; or that is a tax-sheltered 39
annuity or a custodial account described in section 403 (b) of such 40
p. 62 HB 2034
code or an individual retirement account or an individual retirement 1
annuity described in section 408 of such code; or a Roth individual 2
retirement account described in section 408A of such code; or a 3
medical savings account or a health savings account described in 4
sections 220 and 223, respectively, of such code; or a retirement 5
bond described in section 409 of such code as in effect before 6
January 1, 1984. The term "employee benefit plan" shall not include 7
any employee benefit plan that is established or maintained for its 8
employees by the government of the United States, by the state of 9
Washington under chapter 2.10, 2.12, 41.26, 41.--- (the new chapter 10
created in section 504 of this act), 41.32, 41.34, 41.35, 41.37, 11
41.40, or 43.43 RCW or RCW 41.50.770, or by any agency or 12
instrumentality of the government of the United States.13
(5) An employee benefit plan shall be deemed to be a spendthrift 14
trust, regardless of the source of funds, the relationship between 15
the trustee or custodian of the plan and the beneficiary, or the 16
ability of the debtor to withdraw or borrow or otherwise become 17
entitled to benefits from the plan before retirement. This subsection 18
shall not apply to child support collection actions issued under 19
chapter 26.18, 26.23, or 74.20A RCW, if otherwise permitted by 20
federal law. This subsection shall permit benefits under any such 21
plan or arrangement to be payable to a spouse, former spouse, child, 22
or other dependent of a participant in such plan to the extent 23
expressly provided for in a qualified domestic relations order that 24
meets the requirements for such orders under the plan, or, in the 25
case of benefits payable under a plan described in 26 U.S.C. Sec. 26
403(b) or 408 of the internal revenue code of 1986, as amended, or 27
section 409 of such code as in effect before January 1, 1984, to the 28
extent provided in any order issued by a court of competent 29
jurisdiction that provides for maintenance or support.30
(6) Unless prohibited by federal law, nothing contained in 31
subsection (3), (4), or (5) of this section shall be construed as a 32
termination or limitation of a spouse's community property interest 33
in an employee benefit plan held in the name of or on account of the 34
other spouse, who is the participant or the account holder spouse. 35
Unless prohibited by applicable federal law, at the death of the 36
nonparticipant, nonaccount holder spouse, the nonparticipant, 37
nonaccount holder spouse may transfer or distribute the community 38
property interest of the nonparticipant, nonaccount holder spouse in 39
the participant or account holder spouse's employee benefit plan to 40
p. 63 HB 2034
the nonparticipant, nonaccount holder spouse's estate, testamentary 1
trust, inter vivos trust, or other successor or successors pursuant 2
to the last will of the nonparticipant, nonaccount holder spouse or 3
the law of intestate succession, and that distributee may, but shall 4
not be required to, obtain an order of a court of competent 5
jurisdiction, including a nonjudicial binding agreement or order 6
entered under chapter 11.96A RCW, to confirm the distribution. For 7
purposes of subsection (3) of this section, the distributee of the 8
nonparticipant, nonaccount holder spouse's community property 9
interest in an employee benefit plan shall be considered a person 10
entitled to the full protection of subsection (3) of this section. 11
The nonparticipant, nonaccount holder spouse's consent to a 12
beneficiary designation by the participant or account holder spouse 13
with respect to an employee benefit plan shall not, absent clear and 14
convincing evidence to the contrary, be deemed a release, gift, 15
relinquishment, termination, limitation, or transfer of the 16
nonparticipant, nonaccount holder spouse's community property 17
interest in an employee benefit plan. For purposes of this 18
subsection, the term "nonparticipant, nonaccount holder spouse" means 19
the spouse of the person who is a participant in an employee benefit 20
plan or in whose name an individual retirement account is maintained. 21
As used in this subsection, an order of a court of competent 22
jurisdiction entered under chapter 11.96A RCW includes an agreement, 23
as that term is used under RCW 11.96A.220. 24
Sec. 403. RCW 26.09.138 and 1991 c 365 s 24 are each amended to 25
read as follows: 26
(1) Any obligee of a court order or decree establishing a spousal 27
maintenance obligation may seek a mandatory benefits assignment order 28
under chapter 41.50 RCW if any spousal maintenance payment is more 29
than fifteen days past due and the total of such past due payments is 30
equal to or greater than one hundred dollars, or if the obligor 31
requests a withdrawal of accumulated contributions from the 32
department of retirement systems. 33
(2) Any court order or decree establishing a spousal maintenance 34
obligation may state that, if any spousal maintenance payment is more 35
than fifteen days past due and the total of such past due payments is 36
equal to or greater than one hundred dollars, or if the obligor 37
requests a withdrawal of accumulated contributions from the 38
department of retirement systems, the obligee may seek a mandatory 39
p. 64 HB 2034
benefits assignment order under chapter 41.50 RCW without prior 1
notice to the obligor. Any such court order or decree may also, or in 2
the alternative, contain a provision that would allow the department 3
to make a direct payment of all or part of a withdrawal of 4
accumulated contributions pursuant to RCW 41.50.550(3). Failure to 5
include this provision does not affect the validity of the court 6
order or decree establishing the spousal maintenance, nor does such 7
failure affect the general applicability of RCW 41.50.500 through 8
41.50.650 to such obligations. 9
(3) The remedies in RCW 41.50.530 through 41.50.630 are the 10
exclusive provisions of law enforceable against the department of 11
retirement systems in connection with any action for enforcement of a 12
spousal maintenance obligation ordered pursuant to a divorce, 13
dissolution, or legal separation, and no other remedy ordered by a 14
court under this chapter shall be enforceable against the department 15
of retirement systems for collection of spousal maintenance.16
(4)(a) Nothing in this section regarding mandatory assignment of 17
benefits to enforce a spousal maintenance obligation shall abridge 18
the right of an ex spouse to receive direct payment of retirement 19
benefits payable pursuant to: (i) A court decree of dissolution or 20
legal separation; or (ii) any court order or court-approved property 21
settlement agreement; or (iii) incident to any court decree of 22
dissolution or legal separation, if such dissolution orders fully 23
comply with RCW 41.50.670 and 41.50.700, or as applicable, RCW 24
2.10.180, 2.12.090, 41.04.310, 41.04.320, 41.04.330, ((41.26.180,)) 25
41.26.053, section 310 of this act, 41.32.052, 41.40.052, or 26
43.43.310 as those statutes existed before July 1, 1987, and as those 27
statutes exist on and after July 28, 1991. 28
(b) Persons whose dissolution orders as defined in RCW 29
41.50.500(3) were entered between July 1, 1987, and July 28, 1991, 30
shall be entitled to receive direct payments of retirement benefits 31
to satisfy court-ordered property divisions if the dissolution orders 32
filed with the department comply or are amended to comply with RCW 33
41.50.670 through 41.50.720 and, as applicable, RCW 2.10.180, 34
2.12.090, ((41.26.180,)) 41.26.053, section 310 of this act, 35
41.32.052, 41.40.052, or 43.43.310. 36
Sec. 404. RCW 28B.15.380 and 2019 c 144 s 1 are each amended to 37
read as follows: 38
p. 65 HB 2034
Subject to the limitations of RCW 28B.15.910, the governing 1
boards of the state universities, the regional universities, and The 2
Evergreen State College shall exempt the following students from the 3
payment of all tuition fees and services and activities fees:4
(1) Children of any law enforcement officer as defined in chapter 5
41.26 or 41.--- (the new chapter created in section 504 of this act) 6
RCW, firefighter as defined in chapter 41.26, 41.--- (the new chapter 7
created in section 504 of this act), or 41.24 RCW, highway worker, or 8
Washington state patrol officer who lost his or her life or became 9
totally disabled in the line of duty while employed by any public law 10
enforcement agency or full-time or volunteer fire department in this 11
state, or was a highway worker while either employed by a general 12
contractor or subcontractor, on a transportation project or employed 13
by a transportation agency: PROVIDED, That such persons may receive 14
the exemption only if they begin their course of study at a state-15
supported college or university within ten years of their graduation 16
from high school; and 17
(2) Surviving spouses of any law enforcement officer as defined 18
in chapter 41.26 or 41.--- (the new chapter created in section 504 of 19
this act) RCW, firefighter as defined in chapter 41.26, 41.--- (the 20
new chapter created in section 504 of this act), or 41.24 RCW, 21
highway worker, or Washington state patrol officer who lost his or 22
her life or became totally disabled in the line of duty while 23
employed by any public law enforcement agency or full-time or 24
volunteer fire department in this state, or was a highway worker 25
while either employed by a general contractor or subcontractor, on a 26
transportation project or employed by a transportation agency.27
(3) The governing boards of the state universities, the regional 28
universities, and The Evergreen State College shall report to the 29
education data center on the annual cost of tuition fees and services 30
and activities fees waived for surviving spouses and children under 31
this section. The education data center shall consolidate the reports 32
of the waived fees and annually report to the appropriate fiscal and 33
policy committees of the legislature. 34
(4) As used in this section, "transportation agency" means any 35
agency, department, or division of a municipal corporation, political 36
subdivision, or other unit of local government in this state, and any 37
agency, department, or division of state government, having as its 38
primary function the construction and maintenance of the highways and 39
roads within the state of Washington. Such an agency, department, or 40
p. 66 HB 2034
division is distinguished from a transit agency having as one of its 1
functions the highway maintenance, including but not limited to the 2
state department of transportation. A transportation agency under 3
this section does not include a government contractor.4
Sec. 405. RCW 28B.15.520 and 2015 c 55 s 217 are each amended to 5
read as follows: 6
Subject to the limitations of RCW 28B.15.910, the governing 7
boards of the community and technical colleges: 8
(1) May waive all or a portion of tuition fees and services and 9
activities fees for students nineteen years of age or older who are 10
eligible for resident tuition and fee rates as defined in RCW 11
28B.15.012 through 28B.15.015, who enroll in a course of study or 12
program which will enable them to finish their high school education 13
and obtain a high school diploma or certificate, but who are not 14
eligible students as defined by RCW 28A.600.405; 15
(2)(a) Shall waive all of tuition fees and services and 16
activities fees for: 17
(i) Children of any law enforcement officer as defined in chapter 18
41.26 or 41.--- (the new chapter created in section 504 of this act) 19
RCW, firefighter as defined in chapter 41.26, 41.--- (the new chapter 20
created in section 504 of this act), or 41.24 RCW, or Washington 21
state patrol officer who lost his or her life or became totally 22
disabled in the line of duty while employed by any public law 23
enforcement agency or full time or volunteer fire department in this 24
state: PROVIDED, That such persons may receive the waiver only if 25
they begin their course of study at a community or technical college 26
within ten years of their graduation from high school; and27
(ii) Surviving spouses of any law enforcement officer as defined 28
in chapter 41.26 or 41.--- (the new chapter created in section 504 of 29
this act) RCW, firefighter as defined in chapter 41.26, 41.--- (the 30
new chapter created in section 504 of this act), or 41.24 RCW, or 31
Washington state patrol officer who lost his or her life or became 32
totally disabled in the line of duty while employed by any public law 33
enforcement agency or full time or volunteer fire department in this 34
state. 35
(b) For the purposes of this section, "totally disabled" means a 36
person who has become totally and permanently disabled for life by 37
bodily injury or disease, and is thereby prevented from performing 38
any occupation or gainful pursuit. 39
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(c) The governing boards of the community and technical colleges 1
shall report to the state board for community and technical colleges 2
on the annual cost of tuition fees and services and activities fees 3
waived for surviving spouses and children under (a) of this 4
subsection. The state board for community and technical colleges 5
shall consolidate the reports of the waived fees and annually report 6
to the appropriate fiscal and policy committees of the legislature; 7
and 8
(3) May waive all or a portion of the nonresident tuition fees 9
differential for: 10
(a) Nonresident students enrolled in a community or technical 11
college course of study or program which will enable them to finish 12
their high school education and obtain a high school diploma or 13
certificate but who are not eligible students as defined by RCW 14
28A.600.405. The waiver shall be in effect only for those courses 15
which lead to a high school diploma or certificate; and16
(b) Up to forty percent of the students enrolled in the regional 17
education program for deaf students, subject to federal funding of 18
such program. 19
Sec. 406. RCW 35.21.935 and 2015 c 288 s 1 are each amended to 20
read as follows: 21
(1) Any city or town may establish the position of warrant 22
officer. 23
(2) If any city or town establishes the position of warrant 24
officer, the position shall be maintained by the city or town within 25
the city or town police department. The number and qualifications of 26
warrant officers shall be fixed by ordinance and their compensation 27
shall be paid by the city or town. The chief of police of the city or 28
town must establish training requirements consistent with the job 29
description of warrant officer established in that city or town. 30
Training requirements must be approved by the criminal justice 31
training commission. 32
(3) Warrant officers shall be vested only with the special 33
authority identified in ordinance, which may include the authority to 34
make arrests authorized by warrants and other authority related to 35
service of civil and criminal process. 36
(4) Process issuing from any court that is directed to a police 37
department in which a warrant officer position is maintained may be 38
p. 68 HB 2034
served or enforced by the warrant officer, if within the warrant 1
officer's authority as identified in ordinance. 2
(5) Warrant officers shall not be entitled to death, disability, 3
or retirement benefits pursuant to chapter 41.26 or 41.--- (the new 4
chapter created in section 504 of this act) RCW on the basis of 5
service as a warrant officer as described in this section.6
Sec. 407. RCW 35A.21.380 and 2015 c 288 s 2 are each amended to 7
read as follows: 8
(1) Any code city may establish the position of warrant officer.9
(2) If any code city establishes the position of warrant officer, 10
the position shall be maintained by the city within the city police 11
department. The number and qualifications of warrant officers shall 12
be fixed by ordinance, and their compensation shall be paid by the 13
city. The chief of police of the city must establish training 14
requirements consistent with the job description of warrant officer 15
established in that city. Training requirements must be approved by 16
the criminal justice training commission. 17
(3) Warrant officers shall be vested only with the special 18
authority identified in ordinance, which may include the authority to 19
make arrests authorized by warrants and other authority related to 20
service of civil and criminal process. 21
(4) Process issuing from any court that is directed to a police 22
department in which a warrant officer position is maintained may be 23
served or enforced by the warrant officer, if within the warrant 24
officer's authority as identified in ordinance. 25
(5) Warrant officers shall not be entitled to death, disability, 26
or retirement benefits pursuant to chapter 41.26 or 41.--- (the new 27
chapter created in section 504 of this act) RCW on the basis of 28
service as a warrant officer as described in this section.29
Sec. 408. RCW 36.28A.010 and 1975 1st ex.s. c 172 s 1 are each 30
amended to read as follows: 31
The Washington association of sheriffs and police chiefs is 32
hereby declared to be a combination of units of local government: 33
PROVIDED, That such association shall not be considered an "employer" 34
within the meaning of RCW 41.26.030(((2))), section 303 of this act, 35
or 41.40.010(((4))): PROVIDED FURTHER, That no compensation received 36
as an employee of the association shall be considered salary for 37
purposes of the provisions of any retirement system created pursuant 38
p. 69 HB 2034
to the general laws of this state: PROVIDED FURTHER, That such 1
association shall not qualify for inclusion under the unallocated two 2
mills of the property tax of any political subdivision: PROVIDED 3
FURTHER, That the association shall not have the authority to assess 4
any excess levy or bond measure. 5
Sec. 409. RCW 41.04.205 and 2018 c 260 s 21 are each amended to 6
read as follows: 7
(1) Notwithstanding the provisions of RCW 41.04.180, the 8
employees, with their dependents, of any county, municipality, or 9
other political subdivision of this state shall be eligible to 10
participate in any insurance or self-insurance program for employees 11
administered under chapter 41.05 RCW if the legislative authority of 12
any such county, municipality, or other political subdivisions of 13
this state determines, subject to collective bargaining under 14
applicable statutes, a transfer to an insurance or self-insurance 15
program administered under chapter 41.05 RCW should be made. In the 16
event of a special district employee transfer pursuant to this 17
section, members of the governing authority shall be eligible to be 18
included in such transfer if such members are authorized by law as of 19
June 25, 1976 to participate in the insurance program being 20
transferred from and subject to payment by such members of all costs 21
of insurance for members. 22
(2) When the legislative authority of a county, municipality, or 23
other political subdivision determines to so transfer, the state 24
health care authority shall: 25
(a) Establish the conditions for participation; and26
(b) Have the sole right to reject the application, except a group 27
application from a county or other political subdivision of the state 28
with fewer than five thousand employees must be approved.29
Approval of the application by the state health care authority 30
shall effect a transfer of the employees involved to the insurance, 31
self-insurance, or health care program applied for.32
(3) Any application of this section to members of the law 33
enforcement officers' and firefighters' retirement system under 34
chapter 41.26 or 41.--- (the new chapter created in section 504 of 35
this act) RCW is subject to chapter 41.56 RCW. 36
(4) Until December 31, 2019, school districts may voluntarily 37
transfer to the public employees' benefits board, except that all 38
eligible employees in a bargaining unit of a school district may 39
p. 70 HB 2034
transfer only as a unit and all nonrepresented employees in a 1
district may transfer only as a unit. 2
Sec. 410. RCW 41.04.270 and 2006 c 309 s 3 are each amended to 3
read as follows: 4
(1) Except as provided in chapter 2.10, 2.12, 41.26, 41.--- (the 5
new chapter created in section 504 of this act), 41.28, 41.32, 41.35, 6
41.37, 41.40, or 43.43 RCW, on and after March 19, 1976, any member 7
or former member who (a) receives a retirement allowance earned by 8
the former member as deferred compensation from any public retirement 9
system authorized by the general laws of this state, or (b) is 10
eligible to receive a retirement allowance from any public retirement 11
system listed in RCW 41.50.030, but chooses not to apply, or (c) is 12
the beneficiary of a disability allowance from any public retirement 13
system listed in RCW 41.50.030 shall be estopped from becoming a 14
member of or accruing any contractual rights whatsoever in any other 15
public retirement system listed in RCW 41.50.030: PROVIDED, That (a) 16
and (b) of this subsection shall not apply to persons who have 17
accumulated less than fifteen years service credit in any such 18
system. 19
(2) Nothing in this section is intended to apply to any 20
retirement system except those listed in RCW 41.50.030 and the city 21
employee retirement systems for Seattle, Tacoma, and Spokane. 22
Subsection (1)(b) of this section does not apply to a dual member as 23
defined in RCW 41.54.010. 24
Sec. 411. RCW 41.04.350 and 1979 ex.s. c 159 s 1 are each 25
amended to read as follows: 26
(1) Notwithstanding any other provisions of law, no employee of 27
the state of Washington or any of its political subdivisions or any 28
institution supported in total or in part by the state or any of its 29
political subdivisions, other than employees covered by chapters 30
41.26, 41.--- (the new chapter created in section 504 of this act), 31
and 43.43 RCW, shall be compelled to retire solely on the basis of 32
age prior to attaining seventy years of age. 33
(2) All compulsory retirement provisions relating to public 34
employees, other than employees covered by chapters 41.26, 41.--- 35
(the new chapter created in section 504 of this act), and 43.43 RCW, 36
may be waived for individuals attaining seventy years of age by the 37
individual's employer. 38
p. 71 HB 2034
Sec. 412. RCW 41.04.393 and 2006 c 309 s 5 are each amended to 1
read as follows: 2
Retirement benefits paid under chapter 41.26, 41.--- (the new 3
chapter created in section 504 of this act), 41.37, 41.40, or 43.43 4
RCW to beneficiaries of public safety officers who die in the line of 5
duty shall be paid in accordance with Title 26 U.S.C. Sec. 101 (h) as 6
amended by the Fallen Hero Survivor Benefit Fairness Act of 2001.7
Sec. 413. RCW 41.04.400 and 1984 c 184 s 22 are each amended to 8
read as follows: 9
It is the purpose of RCW 41.04.405 through 41.04.430 to govern 10
the retirement rights of persons whose employment status is altered 11
when: (1) Two or more units of local government of this state, at 12
least one of which is a first-class city with its own retirement 13
system, enter into an agreement for the consolidated performance of a 14
governmental service, activity, or undertaking; (2) the service, 15
activity, or undertaking is to be performed either by one of the 16
participating local governmental units or by a newly established 17
separate legal entity; and (3) the employees of the participating 18
local governmental units are not all members of the same Washington 19
public retirement system. 20
RCW 41.04.405 through 41.04.430 are not intended to and do not 21
govern retirement rights of any members of the retirement systems 22
established by chapter 41.16, 41.18, 41.20, ((or)) 41.26, or 41.--- 23
(the new chapter created in section 504 of this act) RCW, or of 24
employees described in RCW 35.58.265, 35.58.390, or 70.08.070. To the 25
extent there is any conflict between RCW 41.04.405 through 41.04.430 26
and RCW 41.04.110, the provisions of RCW 41.04.405 through 41.04.430 27
shall govern. 28
Sec. 414. RCW 41.04.440 and 2007 c 492 s 3 are each amended to 29
read as follows: 30
(1) The sole purpose of RCW 41.04.445 and 41.04.450 is to allow 31
the members of the retirement systems created in chapters 2.10, 2.12, 32
41.26, 41.--- (the new chapter created in section 504 of this act), 33
41.32, 41.35, 41.37, 41.40, 41.34, and 43.43 RCW to enjoy the tax 34
deferral benefits allowed under 26 U.S.C. 414 (h). Chapter 227, Laws 35
of 1984 does not alter in any manner the provisions of RCW 41.45.060, 36
41.45.061, and 41.45.067 which require that the member contribution 37
p. 72 HB 2034
rates shall be set so as to provide fifty percent of the cost of the 1
respective retirement plans. 2
(2) Should the legislature revoke any benefit allowed under 26 3
U.S.C. 414 (h), no affected employee shall be entitled thereafter to 4
receive such benefit as a matter of contractual right.5
Sec. 415. RCW 41.04.450 and 2007 c 492 s 5 are each amended to 6
read as follows: 7
(1) Employers of those members under chapters 41.26, 41.--- (the 8
new chapter created in section 504 of this act), 41.34, 41.35, 41.37, 9
and 41.40 RCW who are not specified in RCW 41.04.445 may choose to 10
implement the employer pick up of all member contributions without 11
exception under RCW ((41.26.080(1)(a),)) 41.26.450, section 316(1)(a) 12
of this act, 41.40.330(1), 41.45.060, 41.45.061, and 41.45.067 and 13
chapter 41.34 RCW. If the employer does so choose, the employer and 14
members shall be subject to the conditions and limitations of RCW 15
41.04.445 (3), (4), and (5) and 41.04.455. 16
(2) An employer exercising the option under this section may 17
later choose to withdraw from and/or reestablish the employer pick up 18
of member contributions only once in a calendar year following forty-19
five days prior notice to the director of the department of 20
retirement systems. 21
Sec. 416. RCW 41.04.803 and 2012 c 236 s 7 are each amended to 22
read as follows: 23
(1) Chapter 236, Laws of 2012 is curative and remedial and is 24
applicable to any future determination of eligibility for membership 25
in a retirement system under chapters 41.26, 41.--- (the new chapter 26
created in section 504 of this act), 41.32, 41.35, 41.37, and 41.40 27
RCW. 28
(2) Chapter 236, Laws of 2012 does not apply to or contravene any 29
prior final decision of the state supreme court regarding the 30
interpretation of the statutes addressed in chapter 236, Laws of 31
2012. 32
Sec. 417. RCW 41.05.011 and 2023 c 164 s 1, 2023 c 51 s 3, and 33
2023 c 13 s 2 are each reenacted and amended to read as follows:34
The definitions in this section apply throughout this chapter 35
unless the context clearly requires otherwise. 36
(1) "Authority" means the Washington state health care authority.37
p. 73 HB 2034
(2) "Board" means the public employees' benefits board 1
established under RCW 41.05.055 and the school employees' benefits 2
board established under RCW 41.05.740. 3
(3) "Dependent care assistance program" means a benefit plan 4
whereby employees and school employees may pay for certain employment 5
related dependent care with pretax dollars as provided in the salary 6
reduction plan under this chapter pursuant to 26 U.S.C. Sec. 129 or 7
other sections of the internal revenue code. 8
(4) "Director" means the director of the authority.9
(5) "Emergency service personnel killed in the line of duty" 10
means law enforcement officers and firefighters as defined in RCW 11
41.26.030 or section 303 of this act , members of the Washington state 12
patrol retirement fund as defined in RCW 43.43.120, and reserve 13
officers and firefighters as defined in RCW 41.24.010 who die as a 14
result of injuries sustained in the course of employment as 15
determined consistent with Title 51 RCW by the department of labor 16
and industries. 17
(6)(a) "Employee" for the public employees' benefits board 18
program includes all employees of the state, whether or not covered 19
by civil service; elected and appointed officials of the executive 20
branch of government, including full-time members of boards, 21
commissions, or committees; justices of the supreme court and judges 22
of the court of appeals and the superior courts; and members of the 23
state legislature. Pursuant to contractual agreement with the 24
authority, "employee" may also include: (i) Employees of a county, 25
municipality, or other political subdivision of the state and members 26
of the legislative authority of any county, city, or town who are 27
elected to office after February 20, 1970, if the legislative 28
authority of the county, municipality, or other political subdivision 29
of the state submits application materials to the authority to 30
provide any of its insurance programs by contract with the authority, 31
as provided in RCW 41.04.205 and 41.05.021(1)(g); (ii) employees of 32
employee organizations representing state civil service employees, at 33
the option of each such employee organization; (iii) through December 34
31, 2019, employees of a school district if the authority agrees to 35
provide any of the school districts' insurance programs by contract 36
with the authority as provided in RCW 28A.400.350; (iv) employees of 37
a tribal government, if the governing body of the tribal government 38
seeks and receives the approval of the authority to provide any of 39
its insurance programs by contract with the authority, as provided in 40
p. 74 HB 2034
RCW 41.05.021(1) (f) and (g); (v) employees of the Washington health 1
benefit exchange if the governing board of the exchange established 2
in RCW 43.71.020 seeks and receives approval of the authority to 3
provide any of its insurance programs by contract with the authority, 4
as provided in RCW 41.05.021(1) (g) and (n); and (vi) through 5
December 31, 2019, employees of a charter school established under 6
chapter 28A.710 RCW. "Employee" does not include: Adult family home 7
providers; unpaid volunteers; patients of state hospitals; inmates; 8
students of institutions of higher education as determined by their 9
institution; and any others not expressly defined as employees under 10
this chapter or by the authority under this chapter.11
(b) Effective January 1, 2020, "school employee" for the school 12
employees' benefits board program includes: 13
(i) All employees of school districts and charter schools 14
established under chapter 28A.710 RCW; 15
(ii) Represented employees of educational service districts;16
(iii) Effective January 1, 2024, all employees of educational 17
service districts; and 18
(iv) Effective January 1, 2024, pursuant to contractual agreement 19
with the authority, "school employee" may also include: (A) Employees 20
of employee organizations representing school employees, at the 21
option of each such employee organization; and (B) employees of a 22
tribal school as defined in RCW 28A.715.010, if the governing body of 23
the tribal school seeks and receives the approval of the authority to 24
provide any of its insurance programs by contract with the authority, 25
as provided in RCW 41.05.021(1) (f) and (g). 26
(7) "Employee group" means employees of a similar employment 27
type, such as administrative, represented classified, nonrepresented 28
classified excluding such employees in educational service districts 29
until December 31, 2023, confidential, represented certificated, or 30
nonrepresented certificated excluding such employees in educational 31
service districts until December 31, 2023, within a school employees' 32
benefits board organization. 33
(8)(a) "Employer" for the public employees' benefits board 34
program means the state of Washington. 35
(b) "Employer" for the school employees' benefits board program 36
means school districts and educational service districts and charter 37
schools established under chapter 28A.710 RCW. 38
(9)(a) "Employer group" for the public employees' benefits board 39
program means those counties, municipalities, political subdivisions, 40
p. 75 HB 2034
the Washington health benefit exchange, tribal governments, and 1
employee organizations representing state civil service employees 2
obtaining employee benefits through a contractual agreement with the 3
authority to participate in benefit plans developed by the public 4
employees' benefits board. 5
(b) "Employer group" for the school employees' benefits board 6
program means an employee organization representing school employees 7
and a tribal school as defined in RCW 28A.715.010, obtaining employee 8
benefits through a contractual agreement with the authority to 9
participate in benefit plans developed by the school employees' 10
benefits board. 11
(10)(a) "Employing agency" for the public employees' benefits 12
board program means a division, department, or separate agency of 13
state government, including an institution of higher education; a 14
county, municipality, or other political subdivision; and a tribal 15
government covered by this chapter. 16
(b) "Employing agency" for the school employees' benefits board 17
program means school districts, educational service districts, and 18
charter schools. 19
(11) "Faculty" means an academic employee of an institution of 20
higher education whose workload is not defined by work hours but 21
whose appointment, workload, and duties directly serve the 22
institution's academic mission, as determined under the authority of 23
its enabling statutes, its governing body, and any applicable 24
collective bargaining agreement. 25
(12) "Flexible benefit plan" means a benefit plan that allows 26
public employees to choose the level of health care coverage provided 27
and the amount of employee or school employee contributions from 28
among a range of choices offered by the authority.29
(13) "Flexible spending arrangement" means a benefit plan whereby 30
public employees may reduce their salary before taxes to pay for 31
medical expenses not reimbursed by insurance as provided in the 32
salary reduction plan under this chapter pursuant to 26 U.S.C. Sec. 33
125 or other sections of the internal revenue code.34
(14) "Insuring entity" means an insurer as defined in chapter 35
48.01 RCW, a health care service contractor as defined in chapter 36
48.44 RCW, or a health maintenance organization as defined in chapter 37
48.46 RCW. 38
p. 76 HB 2034
(15) "Participant" means an individual who fulfills the 1
eligibility and enrollment requirements under the salary reduction 2
plan. 3
(16) "Plan year" means the time period established by the 4
authority. 5
(17) "Premium payment plan" means a benefit plan whereby public 6
employees may pay their share of group health plan premiums with 7
pretax dollars as provided in the salary reduction plan under this 8
chapter pursuant to 26 U.S.C. Sec. 125 or other sections of the 9
internal revenue code. 10
(18) "Public employee" has the same meaning as employee and 11
school employee. 12
(19) "Retired or disabled school employee" means:13
(a) Persons who separated from employment with a school district 14
or educational service district and are receiving a retirement 15
allowance under chapter 41.32 or 41.40 RCW as of September 30, 1993;16
(b) Persons who separate from employment with a school district, 17
educational service district, or charter school on or after October 18
1, 1993, and immediately upon separation receive a retirement 19
allowance under chapter 41.32, 41.35, or 41.40 RCW;20
(c) Persons who separate from employment with a school district, 21
educational service district, or charter school due to a total and 22
permanent disability, and are eligible to receive a deferred 23
retirement allowance under chapter 41.32, 41.35, or 41.40 RCW.24
(20) "Salary" means a public employee's monthly salary or wages.25
(21) "Salary reduction plan" means a benefit plan whereby public 26
employees may agree to a reduction of salary on a pretax basis to 27
participate in the dependent care assistance program, flexible 28
spending arrangement, or premium payment plan offered pursuant to 26 29
U.S.C. Sec. 125 or other sections of the internal revenue code.30
(22) "School employees' benefits board organization" means a 31
public school district or educational service district or charter 32
school established under chapter 28A.710 RCW that is required to 33
participate in benefit plans provided by the school employees' 34
benefits board. 35
(23) "School year" means school year as defined in RCW 36
28A.150.203(11). 37
(24) "Seasonal employee" means a state employee hired to work 38
during a recurring, annual season with a duration of three months or 39
more, and anticipated to return each season to perform similar work.40
p. 77 HB 2034
(25) "Separated employees" means persons who separate from 1
employment with an employer as defined in: 2
(a)(i) RCW 41.32.010(17) on or after July 1, 1996; or3
(ii) RCW 41.35.010 on or after September 1, 2000; or4
(iii) RCW 41.40.010 on or after March 1, 2002; 5
and who are at least age fifty-five and have at least ten years of 6
service under the teachers' retirement system plan 3 as defined in 7
RCW 41.32.010(33), the Washington school employees' retirement system 8
plan 3 as defined in RCW 41.35.010, or the public employees' 9
retirement system plan 3 as defined in RCW 41.40.010; or10
(b) For the purposes of RCW 41.05.080: 11
(i) RCW 41.32.010 on or after January 1, 2024; or12
(ii) RCW 41.35.010 on or after January 1, 2024; or13
(iii) RCW 41.40.010 on or after January 1, 2024; and who are at 14
least age 55 and have at least 20 years of service under the 15
teachers' retirement system plan 2 as defined in RCW 41.32.010, the 16
Washington school employees' retirement system plan 2 as defined in 17
RCW 41.35.010, or the public employees' retirement system plan 2 as 18
defined in RCW 41.40.010. 19
(26) "State purchased health care" or "health care" means medical 20
and behavioral health care, pharmaceuticals, and medical equipment 21
purchased with state and federal funds by the department of social 22
and health services, the department of health, the basic health plan, 23
the state health care authority, the department of labor and 24
industries, the department of corrections, the department of veterans 25
affairs, and local school districts. 26
(27) "Tribal government" means an Indian tribal government as 27
defined in section 3 (32) of the employee retirement income security 28
act of 1974, as amended, or an agency or instrumentality of the 29
tribal government, that has government offices principally located in 30
this state. 31
Sec. 418. RCW 41.05.320 and 2023 c 51 s 17 are each amended to 32
read as follows: 33
(1) Elected officials and permanent employees and school 34
employees are eligible to participate in the salary reduction plan 35
and reduce their salary by agreement with the authority. The 36
authority may adopt rules to: (a) Limit the participation of 37
employing agencies and their employees in the plan; and (b) permit 38
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participation in the plan by temporary employees and school 1
employees. 2
(2) Persons eligible under subsection (1) of this section may 3
enter into salary reduction agreements with the state.4
(3)(a) An eligible person may become a participant of the salary 5
reduction plan for a full plan year with annual benefit plan 6
selection for each new plan year made before the beginning of the 7
plan year, as determined by the authority, or upon becoming eligible.8
(b) Once an eligible person elects to participate in the salary 9
reduction plan and determines the amount his or her gross salary 10
shall be reduced and the benefit plan for which the funds are to be 11
used during the plan year, the agreement shall be irrevocable and may 12
not be amended during the plan year except as provided in (c) of this 13
subsection. Prior to making an election to participate in the salary 14
reduction plan, the eligible person shall be informed in writing of 15
all the benefits and reductions that will occur as a result of such 16
election. 17
(c) The authority shall provide in the salary reduction plan that 18
a participant may enroll, terminate, or change his or her election 19
after the plan year has begun if there is a significant change in a 20
participant's status, as provided by 26 U.S.C. Sec. 125 and the 21
regulations adopted under that section and defined by the authority.22
(4) The authority shall establish as part of the salary reduction 23
plan the procedures for and effect of withdrawal from the plan by 24
reason of retirement, death, leave of absence, or termination of 25
employment. To the extent possible under federal law, the authority 26
shall protect participants from forfeiture of rights under the plan.27
(5) Any reduction of salary under the salary reduction plan shall 28
not reduce the reportable compensation for the purpose of computing 29
the state retirement and pension benefits earned by the public 30
employee pursuant to chapters 41.26, 41.--- (the new chapter created 31
in section 504 of this act), 41.32, 41.35, 41.37, 41.40, and 43.43 32
RCW. 33
Sec. 419. RCW 41.16.020 and 2020 c 107 s 2 are each amended to 34
read as follows: 35
(1) There is hereby created in each city and town a municipal 36
firefighters' pension board to consist of the following five members, 37
ex officio, the mayor, or in a city of the first class, the mayor or 38
a designated representative who shall be an elected official of the 39
p. 79 HB 2034
city, who shall be chairperson of the board, the city comptroller or 1
clerk, the chairperson of finance of the city council, or if there is 2
no chairperson of finance, the city treasurer, and in addition, two 3
regularly employed or retired firefighters elected by secret ballot 4
of those employed and retired firefighters who are subject to the 5
jurisdiction of the board. The members to be elected by the 6
firefighters shall be elected annually for a two year term. The two 7
firefighters elected as members shall, in turn, select a third 8
eligible member who shall serve as an alternate in the event of an 9
absence of one of the regularly elected members. In case a vacancy 10
occurs in the membership of the firefighters or retired members, the 11
members shall in the same manner elect a successor to serve the 12
unexpired term. The board may select and appoint a secretary who may, 13
but need not be, a member of the board. In case of absence or 14
inability of the chairperson to act, the board may select a 15
chairperson pro tempore who shall during such absence or inability 16
perform the duties and exercise the powers of the chairperson. A 17
majority of the members of the board shall constitute a quorum and 18
have power to transact business. 19
(2) If no eligible regularly employed or retired firefighters are 20
willing or able to be elected to the board under subsection (1) of 21
this section, then the following individuals may be elected to the 22
board under subsection (1) of this section: 23
(a) Any active or retired firefighters who reside within the 24
jurisdiction served by the board. This includes active and retired 25
firefighters under this chapter and chapters 41.18, 41.26, 41.--- 26
(the new chapter created in section 504 of this act), and 52.26 RCW;27
(b) The widow or widower of a firefighter subject to the 28
jurisdiction of the board. 29
Sec. 420. RCW 41.16.060 and 2019 c 320 s 1 are each amended to 30
read as follows: 31
(1) It is the duty of the legislative authority of each 32
municipality, each year as a part of its annual tax levy, to levy and 33
place in the fund a tax of twenty-two and one-half cents per thousand 34
dollars of assessed value against all the taxable property of such 35
municipality: PROVIDED, That if a report by a qualified actuary on 36
the condition of the fund establishes that the whole or any part of 37
said dollar rate is not necessary to maintain the actuarial soundness 38
of the fund, the levy of said twenty-two and one-half cents per 39
p. 80 HB 2034
thousand dollars of assessed value may be omitted, or the whole or 1
any part of such dollar rate may be levied and used for any other 2
municipal purpose. 3
(2) It is the duty of the legislative authority of each 4
municipality, each year as a part of its annual tax levy and in 5
addition to the city levy limit set forth in RCW 84.52.043, to levy 6
and place in the fund an additional tax of twenty-two and one-half 7
cents per thousand dollars of assessed value against all taxable 8
property of such municipality: PROVIDED, That if a report by a 9
qualified actuary establishes that all or any part of the additional 10
twenty-two and one-half cents per thousand dollars of assessed value 11
levy is unnecessary to meet the estimated demands on the fund under 12
this chapter for the ensuing budget year, the levy of said additional 13
twenty-two and one-half cents per thousand dollars of assessed value 14
may be omitted, or the whole or any part of such dollar rate may be 15
levied and used for any other municipal purpose, subject to 16
subsection (4) of this section: PROVIDED FURTHER, That cities that 17
have annexed to library districts according to RCW 27.12.360 through 18
27.12.395 and/or fire protection districts according to RCW 52.04.061 19
through 52.04.081 may not levy this additional tax to the extent that 20
it causes the combined levies to exceed the statutory or 21
constitutional limits. 22
(3) The amount of a levy under this section allocated to the 23
pension fund may be reduced in the same proportion as the regular 24
property tax levy of the municipality is reduced by chapter 84.55 25
RCW. 26
(4) If a municipality no longer has any beneficiaries receiving 27
benefits under this chapter, the whole or any part of such additional 28
levy under subsection (2) of this section may continue to be levied 29
for the payment of benefits provided under ((RCW 41.26.150(1))) 30
section 327(1) of this act or other municipal purpose until such time 31
that the municipality no longer has any beneficiaries receiving 32
benefits under ((RCW 41.26.150(1))) section 327 (1) of this act , 33
however the proceeds of the additional levy must be annually expended 34
for payment of benefits provided under ((RCW 41.26.150(1))) section 35
327(1) of this act prior to being spent for any other purpose.36
Sec. 421. RCW 41.16.145 and 2007 c 218 s 30 are each amended to 37
read as follows: 38
p. 81 HB 2034
The amount of all benefits payable under the provisions of RCW 1
41.16.080, 41.16.120, 41.16.130, 41.16.140 and 41.16.230 shall be 2
increased annually as hereafter in this section provided. The local 3
pension board shall meet subsequent to March 31st but prior to June 4
30th of each year for the purposes of adjusting benefit allowances 5
payable pursuant to the aforementioned sections. The local board 6
shall determine the increase in the consumer price index between 7
January 1st and December 31st of the previous year and increase in 8
dollar amount the benefits payable subsequent to July 1st of the year 9
in which said board makes such determination by a dollar amount 10
proportionate to the increase in the consumer price index: PROVIDED, 11
That regardless of the change in the consumer price index, such 12
increase shall be at least two percent each year such adjustment is 13
made. 14
Each year effective with the July payment all benefits specified 15
herein, shall be increased by this section. This benefit increase 16
shall be paid monthly as part of the regular pension payment and 17
shall be cumulative. The increased benefits authorized by this 18
section shall not affect any benefit payable under the provisions of 19
this chapter ((41.16 RCW)) in which the benefit payment is attached 20
to a current salary of the rank held at time of retirement. A 21
beneficiary of benefit increases provided for pursuant to this 22
section is hereby authorized to appeal a decision on such increases 23
or the failure of the local pension board to order such increased 24
benefits or the amount of such benefits to the ((Washington law 25
enforcement officers' and firefighters' system retirement board 26
provided for in RCW 41.26.050)) director of retirement systems.27
For the purpose of this section the term "consumer price index" 28
shall mean, for any calendar year, the consumer price index for the 29
Seattle, Washington area as compiled by the bureau of labor 30
statistics of the United States department of labor.31
Sec. 422. RCW 41.18.015 and 2020 c 107 s 4 are each amended to 32
read as follows: 33
(1) There is hereby created in each fire protection district 34
which qualifies under this chapter, a firefighters' pension board to 35
consist of the following five members, the chairperson of the fire 36
commissioners for said district who shall be chairperson of the 37
board, the county auditor, county treasurer, and in addition, two 38
regularly employed or retired firefighters elected by secret ballot 39
p. 82 HB 2034
of the employed and retired firefighters. Retired members who are 1
subject to the jurisdiction of the pension board have both the right 2
to elect and the right to be elected under this section. The first 3
members to be elected by the firefighters shall be elected annually 4
for a two-year term. The two firefighter elected members shall, in 5
turn, select a third eligible member who shall serve in the event of 6
an absence of one of the regularly elected members. In case a vacancy 7
occurs in the membership of the firefighter or retired members, the 8
members shall in the same manner elect a successor to serve the 9
unexpired term. The board may select and appoint a secretary who may, 10
but need not be a member of the board. In case of absence or 11
inability of the chairperson to act, the board may select a 12
chairperson pro tempore who shall during such absence or inability 13
perform the duties and exercise the powers of the chairperson. A 14
majority of the members of said board shall constitute a quorum and 15
have power to transact business. 16
(2) If no eligible regularly employed or retired firefighters are 17
willing or able to be elected to the board under subsection (1) of 18
this section, then the following individuals may be elected to the 19
board under subsection (1) of this section: 20
(a) Any active or retired firefighters who reside within the 21
jurisdiction served by the board. This includes active and retired 22
firefighters under this chapter and chapters 41.16, 41.26, 41.--- 23
(the new chapter created in section 504 of this act), and 52.26 RCW;24
(b) The widow or widower of a firefighter subject to the 25
jurisdiction of the board. 26
Sec. 423. RCW 41.18.104 and 1975-'76 2nd ex.s. c 44 s 2 are each 27
amended to read as follows: 28
The amount of all benefits payable under the provisions of RCW 29
41.18.040, 41.18.080, 41.18.100 and 41.18.200 as now or hereafter 30
amended, shall be increased annually as hereafter in this section 31
provided. The local pension board shall meet subsequent to March 31st 32
but prior to June 30th of each year for the purpose of adjusting 33
benefit allowances payable pursuant to the aforementioned sections. 34
The local board shall determine the increase in the consumer price 35
index between January 1st and December 31st of the previous year and 36
increase in dollar amount the benefits payable subsequent to July 1st 37
of the year in which said board makes such determination by a dollar 38
amount proportionate to the increase in the consumer price index: 39
p. 83 HB 2034
PROVIDED, That regardless of the change in the consumer price index, 1
such increase shall be at least two percent each year such adjustment 2
is made. 3
Each year effective with the July payment all benefits specified 4
herein, shall be increased as authorized by this section. This 5
benefit increase shall be paid monthly as part of the regular pension 6
payment and shall be cumulative. The increased benefits authorized by 7
this section shall not affect any benefit payable under the 8
provisions of chapter 41.18 RCW in which the benefit payment is 9
attached to a current salary of the rank held at time of retirement. 10
A beneficiary of benefit increases provided for pursuant to this 11
section is hereby authorized to appeal a decision on such increases 12
or the failure of the local pension board to order such increased 13
benefits or the amount of such benefits to the ((Washington law 14
enforcement officers' and firefighters' system retirement board 15
provided for in RCW 41.26.050)) director of retirement systems.16
For the purpose of this section the term 17
"Consumer price index" shall mean, for any calendar year, the 18
consumer price index for the Seattle, Washington area as compiled by 19
the bureau of labor statistics of the United States department of 20
labor. 21
Sec. 424. RCW 41.18.210 and 2007 c 218 s 61 are each amended to 22
read as follows: 23
Any former employee of a department of a city of the first class, 24
who (1) was a member of the employees' retirement system of such 25
city, and (2) is now employed within the fire department of such 26
city, may transfer his or her former membership credit from the city 27
employees' retirement system to the firefighter's pension system 28
created by this chapter and chapter((s)) 41.16 ((and 41.18)) RCW by 29
filing a written request with the board of administration and the 30
municipal firefighters' pension board, respectively.31
Upon the receipt of such request, the transfer of membership to 32
the city's firefighter's pension system shall be made, together with 33
a transfer of all accumulated contributions credited to such member. 34
The board of administration shall transmit to the municipal 35
firefighters' pension board a record of service credited to such 36
member which shall be computed and credited to such member as a part 37
of his or her period of employment in the city's firefighter's 38
pension system. For the purpose of the transfer contemplated by this 39
p. 84 HB 2034
section, those affected individuals who have formerly withdrawn funds 1
from the city employees' retirement system shall be allowed to 2
restore contributions withdrawn from that retirement system directly 3
to the firefighter's pension system and receive credit in the 4
firefighter's pension system for their former membership service in 5
the prior system. 6
Any employee so transferring shall have all the rights, benefits, 7
and privileges that he or she would have been entitled to had he or 8
she been a member of the city's firefighter's pension system from the 9
beginning of his or her employment with the city. 10
No person so transferring shall thereafter be entitled to any 11
other public pension, except that provided by chapter 41.26 or 41.--- 12
(the new chapter created in section 504 of this act) RCW or social 13
security, which is based upon such service with the city.14
The right of any employee to file a written request for transfer 15
of membership as set forth in this section shall expire December 31, 16
1974. 17
Sec. 425. RCW 41.20.010 and 2020 c 107 s 5 are each amended to 18
read as follows: 19
(1) The mayor or his or her designated representative who shall 20
be an elected official of the city, and the clerk, treasurer, 21
president of the city council or mayor pro tem of each city of the 22
first class, or in case any such city has no city council, the 23
commissioner who has supervision of the police department, together 24
with three active or retired members of the police department, to be 25
elected as herein provided, in addition to the duties now required of 26
them, are constituted a board of trustees of the relief and pension 27
fund of the police department of each such city, and shall provide 28
for the disbursement of the fund, and designate the beneficiaries 29
thereof. 30
(2) The police department and the retired law enforcement 31
officers of each city of the first class shall elect three members to 32
act as members of the board. Members shall be elected for three year 33
terms. Existing members shall continue in office until replaced as 34
provided for in this section. 35
(3) Such election shall be held in the following manner. Not more 36
than thirty nor less than fifteen days preceding the first day of 37
June in each year, written notice of the nomination of any member or 38
retired member of the department for membership on the board may be 39
p. 85 HB 2034
filed with the secretary of the board. Each notice of nomination 1
shall be signed by not less than five members or retired members of 2
the department, and nothing herein contained shall prevent any member 3
or retired member of the department from signing more than one notice 4
of nomination. The election shall be held on a date to be fixed by 5
the secretary during the month of June. Notice of the dates upon 6
which notice of nomination may be filed and of the date fixed for the 7
election of such members of the board shall be given by the secretary 8
of the board by posting written notices thereof in a prominent place 9
in the police headquarters. For the purpose of such election, the 10
secretary of the board shall prepare and furnish printed or 11
typewritten ballots in the usual form, containing the names of all 12
persons regularly nominated for membership and shall furnish a ballot 13
box for the election. Each member and each retired member of the 14
police department shall be entitled to vote at the election for one 15
nominee as a member of the board. The chief of the department shall 16
appoint two members to act as officials of the election, who shall be 17
allowed their regular wages for the day, but shall receive no 18
additional compensation therefor. The election shall be held in the 19
police headquarters of the department and the polls shall open at 20
7:30 a.m. and close at 8:30 p.m. The one nominee receiving the 21
highest number of votes shall be declared elected to the board and 22
his or her term shall commence on the first day of July succeeding 23
the election. In the first election the nominee receiving the 24
greatest number of votes shall be elected to the three year term, the 25
second greatest to the two year term and the third greatest to the 26
one year term. Retired members who are subject to the jurisdiction of 27
the board have both the right to elect and the right to be elected 28
under this section. Ballots shall contain all names of those 29
nominated, both active and retired. Notice of nomination and voting 30
by retired members shall be conducted by the board.31
(4) If no eligible active or retired members of the police 32
department are willing or able to be elected to the board under 33
subsection (3) of this section, then the following individuals may be 34
elected to the board under subsection (3) of this section:35
(a) Any active or retired law enforcement officers who reside 36
within the jurisdiction served by the board. This includes active and 37
retired law enforcement officers under this chapter and chapter s 38
41.26 and 41.--- (the new chapter created in section 504 of this act) 39
RCW; 40
p. 86 HB 2034
(b) The widow or widower of a law enforcement officer subject to 1
the jurisdiction of the board. 2
Sec. 426. RCW 41.20.170 and 2012 c 117 s 35 are each amended to 3
read as follows: 4
Any former employee of a department of a city of the first class 5
who (1) was a member of the employees' retirement system of such 6
city, and (2) is now employed within the police department of such 7
city, may transfer his or her membership from the city employees' 8
retirement system to the city's police relief and pension fund system 9
by filing a written request with the board of administration and the 10
board of trustees, respectively, of the two systems.11
Upon the receipt of such request, the transfer of membership to 12
the city's police relief and pension fund system shall be made, 13
together with a transfer of all accumulated contributions credited to 14
such member. The board of administration of the city's employees' 15
retirement system shall transmit to the board of trustees of the 16
city's police relief and pension fund system a record of service 17
credited to such member which shall be computed and credited to such 18
member as a part of his or her period of employment in the city's 19
police relief and pension fund system. For the purpose of the 20
transfer contemplated by this section, the affected individuals shall 21
be allowed to restore withdrawn contributions to the city employees' 22
retirement system and reinstate their membership service records.23
Any employee so transferring shall have all the rights, benefits 24
and privileges that he or she would have been entitled to had he or 25
she been a member of the city's police relief and pension fund system 26
from the beginning of his or her employment with the city.27
No person so transferring shall thereafter be entitled to any 28
other public pension, except that provided by chapter 41.26 or 41.--- 29
(the new chapter created in section 504 of this act) RCW or social 30
security, which is based upon service with the city.31
The right of any employee to file a written request for transfer 32
of membership as set forth herein shall expire December 31, 1973.33
Sec. 427. RCW 41.20.175 and 2012 c 117 s 36 are each amended to 34
read as follows: 35
A former employee of a fire department of a city of the first 36
class who (1) was a member of the firefighters' pension system 37
created by chapter ((s)) 41.16 or 41.18 RCW, and (2) is now employed 38
p. 87 HB 2034
within the police department of such city, will be regarded as having 1
received membership service credit for such service to the fire 2
department in the city's police and relief pension system at the time 3
he or she recovers such service credit by paying withdrawn 4
contributions to the Washington law enforcement officers' and 5
firefighters' retirement system pursuant to RCW 41.26.030(((28))) 6
(25) or section 303(29) of this act. 7
Sec. 428. RCW 41.24.400 and 2007 c 492 s 7 are each amended to 8
read as follows: 9
(1) Except as provided in subsection (2) of this section, any 10
municipality may make provision by appropriate legislation and 11
payment of fees required by RCW 41.24.030(((1))) (2) solely for the 12
purpose of enabling any reserve officer to enroll under the 13
retirement pension provisions of this chapter or fees required under 14
RCW 41.24.030(((1))) (2) to pay for the costs of extending the relief 15
provisions of this chapter to its reserve officers.16
(2) A reserve officer is not eligible to receive a benefit under 17
the retirement provisions of this chapter for service under chapter 18
41.26, 41.--- (the new chapter created in section 504 of this act), 19
41.32, 41.35, 41.37, or 41.40 RCW. 20
(3) Every municipality shall make provisions for the collection 21
and payment of the fees required under this chapter, and shall 22
continue to make provisions for all reserve officers who come under 23
this chapter as long as they continue to be employed as reserve 24
officers. 25
(4) Except as provided under RCW 41.24.450, a reserve officer is 26
not eligible to receive a benefit under the relief provisions of this 27
chapter. 28
Sec. 429. RCW 41.32.800 and 2011 1st sp.s. c 47 s 11 are each 29
amended to read as follows: 30
(1) Except as provided in RCW 41.32.802, no retiree under the 31
provisions of plan 2 shall be eligible to receive such retiree's 32
monthly retirement allowance if he or she is employed in an eligible 33
position as defined in RCW 41.40.010, 41.32.010, 41.37.010, or 34
41.35.010, or as a law enforcement officer or firefighter as defined 35
in RCW 41.26.030 or section 303 of this act , or in a position covered 36
by annuity and retirement income plans offered by institutions of 37
higher education pursuant to RCW 28B.10.400. 38
p. 88 HB 2034
If a retiree's benefits have been suspended under this section, 1
his or her benefits shall be reinstated when the retiree terminates 2
the employment that caused his or her benefits to be suspended. Upon 3
reinstatement, the retiree's benefits shall be actuarially recomputed 4
pursuant to the rules adopted by the department. 5
(2) The department shall adopt rules implementing this section.6
Sec. 430. RCW 41.32.802 and 2023 c 410 s 3 are each amended to 7
read as follows: 8
(1)(a) If a retiree enters employment with an employer sooner 9
than one calendar month after his or her accrual date, the retiree's 10
monthly retirement allowance will be reduced by five and one-half 11
percent for every seven hours worked during that month. This 12
reduction will be applied each month until the retiree remains absent 13
from employment with an employer for one full calendar month.14
(b) The benefit reduction provided in (a) of this subsection will 15
accrue for a maximum of one hundred forty hours per month. Any 16
benefit reduction over one hundred percent will be applied to the 17
benefit the retiree is eligible to receive in subsequent months.18
(2)(a) A retiree who has satisfied the break in employment 19
requirement of subsection (1) of this section, may work up to eight 20
hundred sixty-seven hours per calendar year in an eligible position, 21
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 22
as a firefighter or law enforcement officer, as defined in RCW 23
41.26.030 or section 303 of this act , or in a position covered by 24
annuity and retirement income plans offered by institutions of higher 25
education pursuant to RCW 28B.10.400, without suspension of his or 26
her benefit. 27
(b)(i) Between March 23, 2022, and July 1, 2025, a retiree who 28
reenters employment more than one month after his or her accrual 29
date, and who enters service in a school district in a 30
nonadministrative position shall continue to receive pension payments 31
while engaged in such service, until the retiree has rendered service 32
for more than 1,040 hours in a calendar year. 33
(ii) Between March 23, 2022, and July 1, 2025, a retiree that 34
retired before January 1, 2022, and who enters service in a second-35
class school district, as defined in RCW 28A.300.065, as either a 36
district superintendent or an in-school administrator shall continue 37
to receive pension payments while engaged in such service, until the 38
p. 89 HB 2034
retiree has rendered service for more than 1,040 hours in a calendar 1
year. 2
(iii) The legislature reserves the right to amend or repeal this 3
subsection (2)(b) in the future and no member or beneficiary has a 4
contractual right to be employed for more than 867 hours in a 5
calendar year without a reduction of his or her pension.6
(3) If the retiree opts to reestablish membership under RCW 7
41.32.044, he or she terminates his or her retirement status and 8
immediately becomes a member. Retirement benefits shall not accrue 9
during the period of membership and the individual shall make 10
contributions and receive membership credit. Such a member shall have 11
the right to again retire if eligible. 12
Sec. 431. RCW 41.32.860 and 2011 1st sp.s. c 47 s 13 are each 13
amended to read as follows: 14
(1) Except under RCW 41.32.862, no retiree shall be eligible to 15
receive such retiree's monthly retirement allowance if he or she is 16
employed in an eligible position as defined in RCW 41.40.010, 17
41.32.010, 41.35.010, or 41.37.010, or as a law enforcement officer 18
or firefighter as defined in RCW 41.26.030 or section 303 of this 19
act, or in a position covered by annuity and retirement income plans 20
offered by institutions of higher education pursuant to RCW 21
28B.10.400. 22
(2) If a retiree's benefits have been suspended under this 23
section, his or her benefits shall be reinstated when the retiree 24
terminates the employment that caused the suspension of benefits. 25
Upon reinstatement, the retiree's benefits shall be actuarially 26
recomputed pursuant to the rules adopted by the department.27
Sec. 432. RCW 41.32.862 and 2023 c 410 s 4 are each amended to 28
read as follows: 29
(1)(a) If a retiree enters employment with an employer sooner 30
than one calendar month after his or her accrual date, the retiree's 31
monthly retirement allowance will be reduced by five and one-half 32
percent for every seven hours worked during that month. This 33
reduction will be applied each month until the retiree remains absent 34
from employment with an employer for one full calendar month.35
(b) The benefit reduction provided in (a) of this subsection will 36
accrue for a maximum of one hundred forty hours per month. Any 37
p. 90 HB 2034
benefit reduction over one hundred percent will be applied to the 1
benefit the retiree is eligible to receive in subsequent months.2
(2)(a) A retiree who has satisfied the break in employment 3
requirement of subsection (1) of this section, may work up to eight 4
hundred sixty-seven hours per calendar year in an eligible position, 5
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 6
as a firefighter or law enforcement officer, as defined in RCW 7
41.26.030 or section 303 of this act , or in a position covered by 8
annuity and retirement income plans offered by institutions of higher 9
education pursuant to RCW 28B.10.400, without suspension of his or 10
her benefit. 11
(b)(i) Between March 23, 2022, and July 1, 2025, a retired 12
teacher or retired administrator who reenters employment more than 13
one month after his or her accrual date, and who enters service in a 14
school district in a nonadministrative position shall continue to 15
receive pension payments while engaged in such service, until the 16
retiree has rendered service for more than 1,040 hours in a calendar 17
year. 18
(ii) Between March 23, 2022, and July 1, 2025, a retiree that 19
retired before January 1, 2022, and who enters service in a second-20
class school district, as defined in RCW 28A.300.065, as either a 21
district superintendent or an in-school administrator shall continue 22
to receive pension payments while engaged in such service, until the 23
retiree has rendered service for more than 1,040 hours in a calendar 24
year. 25
(iii) The legislature reserves the right to amend or repeal this 26
subsection (2)(b) in the future and no member or beneficiary has a 27
contractual right to be employed for more than 867 hours in a 28
calendar year without a reduction of his or her pension.29
(3) If the retiree opts to reestablish membership under RCW 30
41.32.044, he or she terminates his or her retirement status and 31
immediately becomes a member. Retirement benefits shall not accrue 32
during the period of membership and the individual shall make 33
contributions and receive membership credit. Such a member shall have 34
the right to again retire if eligible. 35
Sec. 433. RCW 41.35.060 and 2023 c 410 s 6 are each amended to 36
read as follows: 37
(1)(a) If a retiree enters employment with an employer sooner 38
than one calendar month after his or her accrual date, the retiree's 39
p. 91 HB 2034
monthly retirement allowance will be reduced by five and one-half 1
percent for every eight hours worked during that month. This 2
reduction will be applied each month until the retiree remains absent 3
from employment with an employer for one full calendar month.4
(b) The benefit reduction provided in (a) of this subsection will 5
accrue for a maximum of one hundred sixty hours per month. Any 6
benefit reduction over one hundred percent will be applied to the 7
benefit the retiree is eligible to receive in subsequent months.8
(2)(a) A retiree who has satisfied the break in employment 9
requirement of subsection (1) of this section may work up to eight 10
hundred sixty-seven hours per calendar year in an eligible position, 11
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 12
as a firefighter or law enforcement officer, as defined in RCW 13
41.26.030 or section 303 of this act , or in a position covered by 14
annuity and retirement income plans offered by institutions of higher 15
education pursuant to RCW 28B.10.400, without suspension of his or 16
her benefit. 17
(b) Between March 23, 2022, and July 1, 2025, a retiree, 18
including a retiree who has retired under the alternate early 19
retirement provisions of RCW 41.35.420(3)(b) or 41.35.680(3)(b), who 20
reenters employment more than one month after his or her accrual 21
date, and who enters service in a school district in a 22
nonadministrative position shall continue to receive pension payments 23
while engaged in such service, until the retiree has rendered service 24
for more than 1,040 hours in a calendar year. The legislature 25
reserves the right to amend or repeal this subsection (2)(b) in the 26
future and no member or beneficiary has a contractual right to be 27
employed for more than 867 hours in a calendar year without a 28
reduction of his or her pension. 29
(3) If the retiree opts to reestablish membership under RCW 30
41.35.030, he or she terminates his or her retirement status and 31
becomes a member. Retirement benefits shall not accrue during the 32
period of membership and the individual shall make contributions and 33
receive membership credit. Such a member shall have the right to 34
again retire if eligible in accordance with RCW 41.35.420 or 35
41.35.680. However, if the right to retire is exercised to become 36
effective before the member has rendered two uninterrupted years of 37
service, the retirement formula and survivor options the member had 38
at the time of the member's previous retirement shall be reinstated.39
p. 92 HB 2034
Sec. 434. RCW 41.35.230 and 2011 1st sp.s. c 47 s 16 are each 1
amended to read as follows: 2
(1) Except as provided in RCW 41.35.060, no retiree under the 3
provisions of plan 2 shall be eligible to receive such retiree's 4
monthly retirement allowance if he or she is employed in an eligible 5
position as defined in RCW 41.35.010, 41.40.010, 41.37.010, or 6
41.32.010, or as a law enforcement officer or firefighter as defined 7
in RCW 41.26.030 or section 303 of this act , or in a position covered 8
by annuity and retirement income plans offered by institutions of 9
higher education pursuant to RCW 28B.10.400, except that a retiree 10
who ends his or her membership in the retirement system pursuant to 11
RCW 41.40.023(3)(b) is not subject to this section if the retiree's 12
only employment is as an elective official. 13
(2) If a retiree's benefits have been suspended under this 14
section, his or her benefits shall be reinstated when the retiree 15
terminates the employment that caused his or her benefits to be 16
suspended. Upon reinstatement, the retiree's benefits shall be 17
actuarially recomputed pursuant to the rules adopted by the 18
department. 19
(3) The department shall adopt rules implementing this section.20
Sec. 435. RCW 41.37.050 and 2023 c 99 s 1 are each amended to 21
read as follows: 22
(1)(a) If a retiree enters employment in an eligible position 23
with an employer as defined in this chapter sooner than one calendar 24
month after his or her accrual date, the retiree's monthly retirement 25
allowance will be reduced by five and one-half percent for every 26
eight hours worked during that month. This reduction will be applied 27
each month until the retiree remains absent from employment with an 28
employer for one full calendar month. 29
(b) If a retiree enters employment in an eligible position with 30
an employer as defined in chapter 41.32, 41.35, or 41.40 RCW sooner 31
than one calendar month after his or her accrual date, the retiree's 32
monthly retirement allowance will be reduced by five and one-half 33
percent for every eight hours worked during that month. This 34
reduction will be applied each month until the retiree remains absent 35
from employment with an employer for one full calendar month.36
(c) The benefit reduction provided in (a) and (b) of this 37
subsection will accrue for a maximum of one hundred sixty hours per 38
month. Any benefit reduction over one hundred percent will be applied 39
p. 93 HB 2034
to the benefit the retiree is eligible to receive in subsequent 1
months. 2
(2)(a) A retiree who has satisfied the break in employment 3
requirement of subsection (1) of this section may work up to eight 4
hundred sixty-seven hours per calendar year in an eligible position 5
as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a law 6
enforcement officer or firefighter as defined in RCW 41.26.030 or 7
section 303 of this act , or in a position covered by annuity and 8
retirement income plans offered by institutions of higher education 9
pursuant to RCW 28B.10.400, without suspension of his or her benefit.10
(b) Between April 14, 2023, and July 1, 2026, a retiree who has 11
satisfied the break in employment requirement of subsection (1) of 12
this section, and who enters service in a nonadministrative position 13
as a licensed nurse for a state agency, shall continue to receive 14
pension payments while engaged in such service, until the retiree has 15
rendered service for more than 1,040 hours in a calendar year.16
(3) If the retiree opts to reestablish membership under this 17
chapter, he or she terminates his or her retirement status and 18
becomes a member. Retirement benefits shall not accrue during the 19
period of membership and the individual shall make contributions and 20
receive membership credit. Such a member shall have the right to 21
again retire if eligible in accordance with this chapter. However, if 22
the right to retire is exercised to become effective before the 23
member has rendered two uninterrupted years of service, the 24
retirement formula and survivor options the member had at the time of 25
the member's previous retirement shall be reinstated.26
(4) The department shall collect and provide the state actuary 27
with information relevant to the use of this section for the select 28
committee on pension policy. 29
Sec. 436. RCW 41.37.180 and 2004 c 242 s 24 are each amended to 30
read as follows: 31
(1) Except as provided in RCW 41.37.050, a retiree shall not be 32
eligible to receive the retiree's monthly retirement allowance if he 33
or she is employed in an eligible position as defined in RCW 34
41.37.010, or RCW 41.35.010, 41.40.010, or 41.32.010, or as a law 35
enforcement officer or firefighter as defined in RCW 41.26.030 or 36
section 303 of this act , except that a retiree who ends his or her 37
membership in the retirement system pursuant to RCW 41.37.020(2)(b) 38
p. 94 HB 2034
is not subject to this section if the retiree's only employment is as 1
an elective official. 2
(2) If a retiree's benefits have been suspended under this 3
section, his or her benefits shall be reinstated when the retiree 4
terminates the employment that caused his or her benefits to be 5
suspended. Upon reinstatement, the retiree's benefits shall be 6
actuarially recomputed pursuant to the rules adopted by the 7
department. 8
(3) The department shall adopt rules implementing this section.9
Sec. 437. RCW 41.40.010 and 2024 c 151 s 3 are each amended to 10
read as follows: 11
As used in this chapter, unless a different meaning is plainly 12
required by the context: 13
(1) "Accumulated contributions" means the sum of all 14
contributions standing to the credit of a member in the member's 15
individual account, including any amount paid under RCW 41.50.165(2), 16
together with the regular interest thereon. 17
(2) "Actuarial equivalent" means a benefit of equal value when 18
computed upon the basis of such mortality and other tables as may be 19
adopted by the director. 20
(3) "Adjustment ratio" means the value of index A divided by 21
index B. 22
(4) "Annual increase" means, initially, 59 cents per month per 23
year of service which amount shall be increased each July 1st by 24
three percent, rounded to the nearest cent. 25
(5) "Annuity" means payments for life derived from accumulated 26
contributions of a member. All annuities shall be paid in monthly 27
installments. 28
(6)(a) "Average final compensation" for plan 1 members, means the 29
annual average of the greatest compensation earnable by a member 30
during any consecutive two year period of service credit months for 31
which service credit is allowed; or if the member has less than two 32
years of service credit months then the annual average compensation 33
earnable during the total years of service for which service credit 34
is allowed. 35
(b) "Average final compensation" for plan 2 and plan 3 members, 36
means the member's average compensation earnable of the highest 37
consecutive sixty months of service credit months prior to such 38
member's retirement, termination, or death. Periods constituting 39
p. 95 HB 2034
authorized leaves of absence may not be used in the calculation of 1
average final compensation except under RCW 41.40.710(2) or (c) of 2
this subsection. 3
(c) In calculating average final compensation under this 4
subsection for a member of plan 1, 2, or 3, the department of 5
retirement systems shall include: 6
(i) Any compensation forgone by the member during the 2009-2011 7
fiscal biennium as a result of reduced work hours, voluntary leave 8
without pay, temporary reduction in pay implemented prior to December 9
11, 2010, or temporary furloughs if the reduced compensation is an 10
integral part of the employer's expenditure reduction efforts, as 11
certified by the employer; 12
(ii) Any compensation forgone by a member employed by the state 13
or a local government during the 2011-2013 fiscal biennium as a 14
result of reduced work hours, mandatory leave without pay, temporary 15
layoffs, or reductions to current pay if the reduced compensation is 16
an integral part of the employer's expenditure reduction efforts, as 17
certified by the employer. Reductions to current pay shall not 18
include elimination of previously agreed upon future salary 19
increases; and 20
(iii) Any compensation forgone by a member during the 2019-2021 21
and 2021-2023 fiscal biennia as a result of reduced work hours, 22
mandatory leave without pay, temporary layoffs, furloughs, reductions 23
to current pay, or other similar measures resulting from the COVID-19 24
budgetary crisis, if the reduced compensation is an integral part of 25
the employer's expenditure reduction efforts, as certified by the 26
employer. Reductions to current pay shall not include elimination of 27
previously agreed upon future salary increases. 28
(7)(a) "Beneficiary" for plan 1 members, means any person in 29
receipt of a retirement allowance, pension or other benefit provided 30
by this chapter. 31
(b) "Beneficiary" for plan 2 and plan 3 members, means any person 32
in receipt of a retirement allowance or other benefit provided by 33
this chapter resulting from service rendered to an employer by 34
another person. 35
(8)(a) "Compensation earnable" for plan 1 members, means salaries 36
or wages earned during a payroll period for personal services and 37
where the compensation is not all paid in money, maintenance 38
compensation shall be included upon the basis of the schedules 39
established by the member's employer. 40
p. 96 HB 2034
(i) "Compensation earnable" for plan 1 members also includes the 1
following actual or imputed payments, which are not paid for personal 2
services: 3
(A) Retroactive payments to an individual by an employer on 4
reinstatement of the employee in a position, or payments by an 5
employer to an individual in lieu of reinstatement in a position 6
which are awarded or granted as the equivalent of the salary or wage 7
which the individual would have earned during a payroll period shall 8
be considered compensation earnable and the individual shall receive 9
the equivalent service credit; 10
(B) If a leave of absence is taken by an individual for the 11
purpose of serving in the state legislature, the salary which would 12
have been received for the position from which the leave of absence 13
was taken, shall be considered as compensation earnable if the 14
employee's contribution is paid by the employee and the employer's 15
contribution is paid by the employer or employee; 16
(C) Assault pay only as authorized by RCW 27.04.100, 72.01.045, 17
and 72.09.240; 18
(D) Compensation that a member would have received but for a 19
disability occurring in the line of duty only as authorized by RCW 20
41.40.038; 21
(E) Compensation that a member receives due to participation in 22
the leave sharing program only as authorized by RCW 41.04.650 through 23
41.04.670; and 24
(F) Compensation that a member receives for being in standby 25
status. For the purposes of this section, a member is in standby 26
status when not being paid for time actually worked and the employer 27
requires the member to be prepared to report immediately for work, if 28
the need arises, although the need may not arise. 29
(ii) "Compensation earnable" does not include:30
(A) Remuneration for unused sick leave authorized under RCW 31
41.04.340, 28A.400.210, or 28A.310.490; 32
(B) Remuneration for unused annual leave in excess of 240 hours.33
(b) "Compensation earnable" for plan 2 and plan 3 members, means 34
salaries or wages earned by a member during a payroll period for 35
personal services, including overtime payments, and shall include 36
wages and salaries deferred under provisions established pursuant to 37
sections 403 (b), 414 (h), and 457 of the United States Internal 38
Revenue Code, but shall exclude nonmoney maintenance compensation and 39
lump sum or other payments for deferred annual sick leave, unused 40
p. 97 HB 2034
accumulated vacation, unused accumulated annual leave, or any form of 1
severance pay. 2
"Compensation earnable" for plan 2 and plan 3 members also 3
includes the following actual or imputed payments, which are not paid 4
for personal services: 5
(i) Retroactive payments to an individual by an employer on 6
reinstatement of the employee in a position, or payments by an 7
employer to an individual in lieu of reinstatement in a position 8
which are awarded or granted as the equivalent of the salary or wage 9
which the individual would have earned during a payroll period shall 10
be considered compensation earnable to the extent provided above, and 11
the individual shall receive the equivalent service credit;12
(ii) In any year in which a member serves in the legislature, the 13
member shall have the option of having such member's compensation 14
earnable be the greater of: 15
(A) The compensation earnable the member would have received had 16
such member not served in the legislature; or 17
(B) Such member's actual compensation earnable received for 18
nonlegislative public employment and legislative service combined. 19
Any additional contributions to the retirement system required 20
because compensation earnable under (b)(ii)(A) of this subsection is 21
greater than compensation earnable under (b)(ii)(B) of this 22
subsection shall be paid by the member for both member and employer 23
contributions; 24
(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045, 25
and 72.09.240; 26
(iv) Compensation that a member would have received but for a 27
disability occurring in the line of duty only as authorized by RCW 28
41.40.038; 29
(v) Compensation that a member receives due to participation in 30
the leave sharing program only as authorized by RCW 41.04.650 through 31
41.04.670; and 32
(vi) Compensation that a member receives for being in standby 33
status. For the purposes of this section, a member is in standby 34
status when not being paid for time actually worked and the employer 35
requires the member to be prepared to report immediately for work, if 36
the need arises, although the need may not arise. 37
(9) "Department" means the department of retirement systems 38
created in chapter 41.50 RCW. 39
(10) "Director" means the director of the department.40
p. 98 HB 2034
(11) "Eligible position" means: 1
(a) Any position that, as defined by the employer, normally 2
requires five or more months of service a year for which regular 3
compensation for at least seventy hours is earned by the occupant 4
thereof. For purposes of this chapter an employer shall not define 5
"position" in such a manner that an employee's monthly work for that 6
employer is divided into more than one position; 7
(b) Any position occupied by an elected official or person 8
appointed directly by the governor, or appointed by the chief justice 9
of the supreme court under RCW 2.04.240(2) or 2.06.150(2), for which 10
compensation is paid. 11
(12) "Employee" or "employed" means a person who is providing 12
services for compensation to an employer, unless the person is free 13
from the employer's direction and control over the performance of 14
work. The department shall adopt rules and interpret this subsection 15
consistent with common law. 16
(13)(a) "Employer" for plan 1 members, means every branch, 17
department, agency, commission, board, and office of the state, any 18
political subdivision or association of political subdivisions of the 19
state admitted into the retirement system, and legal entities 20
authorized by RCW 35.63.070 and 36.70.060 or chapter 39.34 RCW; and 21
the term shall also include any labor guild, association, or 22
organization the membership of a local lodge or division of which is 23
comprised of at least forty percent employees of an employer (other 24
than such labor guild, association, or organization) within this 25
chapter. The term may also include any city of the first class that 26
has its own retirement system. 27
(b) "Employer" for plan 2 and plan 3 members, means every branch, 28
department, agency, commission, board, and office of the state, and 29
any political subdivision and municipal corporation of the state 30
admitted into the retirement system, including public agencies 31
created pursuant to RCW 35.63.070, 36.70.060, and 39.34.030; except 32
that after August 31, 2000, school districts and educational service 33
districts will no longer be employers for the public employees' 34
retirement system plan 2. 35
(c) Except as otherwise specifically provided in this chapter, 36
"employer" does not include a government contractor. For purposes of 37
this subsection, a "government contractor" is any entity, including a 38
partnership, limited liability company, for-profit or nonprofit 39
corporation, or person, that provides services pursuant to a contract 40
p. 99 HB 2034
with an "employer." The determination whether an employer-employee 1
relationship has been established is not based on the relationship 2
between a government contractor and an "employer," but is based 3
solely on the relationship between a government contractor's employee 4
and an "employer" under this chapter. 5
(d) "Employer" does not include a comprehensive cancer center 6
participating in a collaborative arrangement as defined in RCW 7
28B.10.930 that is operated in conformance with RCW 28B.10.930.8
(14) "Final compensation" means the annual rate of compensation 9
earnable by a member at the time of termination of employment.10
(15) "Index" means, for any calendar year, that year's annual 11
average consumer price index, Seattle, Washington area, for urban 12
wage earners and clerical workers, all items, compiled by the bureau 13
of labor statistics, United States department of labor.14
(16) "Index A" means the index for the year prior to the 15
determination of a postretirement adjustment. 16
(17) "Index B" means the index for the year prior to index A.17
(18) "Index year" means the earliest calendar year in which the 18
index is more than 60 percent of index A. 19
(19) "Ineligible position" means any position which does not 20
conform with the requirements set forth in subsection (11) of this 21
section. 22
(20) "Leave of absence" means the period of time a member is 23
authorized by the employer to be absent from service without being 24
separated from membership. 25
(21) "Member" means any employee included in the membership of 26
the retirement system, as provided for in RCW 41.40.023. ((RCW 27
41.26.045)) Section 306 of this act does not prohibit a person 28
otherwise eligible for membership in the retirement system from 29
establishing such membership effective when he or she first entered 30
an eligible position. 31
(22) "Member account" or "member's account" for purposes of plan 32
3 means the sum of the contributions and earnings on behalf of the 33
member in the defined contribution portion of plan 3.34
(23) "Membership service" means: 35
(a) All service rendered, as a member, after October 1, 1947;36
(b) All service after October 1, 1947, to any employer prior to 37
the time of its admission into the retirement system for which member 38
and employer contributions, plus interest as required by RCW 39
41.50.125, have been paid under RCW 41.40.056 or 41.40.057;40
p. 100 HB 2034
(c) Service not to exceed six consecutive months of probationary 1
service rendered after April 1, 1949, and prior to becoming a member, 2
in the case of any member, upon payment in full by such member of the 3
total amount of the employer's contribution to the retirement fund 4
which would have been required under the law in effect when such 5
probationary service was rendered if the member had been a member 6
during such period, except that the amount of the employer's 7
contribution shall be calculated by the director based on the first 8
month's compensation earnable as a member; 9
(d) Service not to exceed six consecutive months of probationary 10
service, rendered after October 1, 1947, and before April 1, 1949, 11
and prior to becoming a member, in the case of any member, upon 12
payment in full by such member of five percent of such member's 13
salary during said period of probationary service, except that the 14
amount of the employer's contribution shall be calculated by the 15
director based on the first month's compensation earnable as a 16
member. 17
(24) "New member" means a person who becomes a member on or after 18
April 1, 1949, except as otherwise provided in this section.19
(25) "Original member" of this retirement system means:20
(a) Any person who became a member of the system prior to April 21
1, 1949; 22
(b) Any person who becomes a member through the admission of an 23
employer into the retirement system on and after April 1, 1949, and 24
prior to April 1, 1951; 25
(c) Any person who first becomes a member by securing employment 26
with an employer prior to April 1, 1951, provided the member has 27
rendered at least one or more years of service to any employer prior 28
to October 1, 1947; 29
(d) Any person who first becomes a member through the admission 30
of an employer into the retirement system on or after April 1, 1951, 31
provided, such person has been in the regular employ of the employer 32
for at least six months of the 12-month period preceding the said 33
admission date; 34
(e) Any member who has restored all contributions that may have 35
been withdrawn as provided by RCW 41.40.150 and who on the effective 36
date of the individual's retirement becomes entitled to be credited 37
with 10 years or more of membership service except that the 38
provisions relating to the minimum amount of retirement allowance for 39
p. 101 HB 2034
the member upon retirement at age 70 as found in RCW 41.40.190(4) 1
shall not apply to the member; 2
(f) Any member who has been a contributor under the system for 3
two or more years and who has restored all contributions that may 4
have been withdrawn as provided by RCW 41.40.150 and who on the 5
effective date of the individual's retirement has rendered five or 6
more years of service for the state or any political subdivision 7
prior to the time of the admission of the employer into the system; 8
except that the provisions relating to the minimum amount of 9
retirement allowance for the member upon retirement at age 70 as 10
found in RCW 41.40.190(4) shall not apply to the member.11
(26) "Pension" means payments for life derived from contributions 12
made by the employer. All pensions shall be paid in monthly 13
installments. 14
(27) "Plan 1" means the public employees' retirement system, plan 15
1 providing the benefits and funding provisions covering persons who 16
first became members of the system prior to October 1, 1977.17
(28) "Plan 2" means the public employees' retirement system, plan 18
2 providing the benefits and funding provisions covering persons who 19
first became members of the system on and after October 1, 1977, and 20
are not included in plan 3. 21
(29) "Plan 3" means the public employees' retirement system, plan 22
3 providing the benefits and funding provisions covering persons who:23
(a) First become a member on or after: 24
(i) March 1, 2002, and are employed by a state agency or 25
institute of higher education and who did not choose to enter plan 2; 26
or 27
(ii) September 1, 2002, and are employed by other than a state 28
agency or institute of higher education and who did not choose to 29
enter plan 2; or 30
(b) Transferred to plan 3 under RCW 41.40.795.31
(30) "Prior service" means all service of an original member 32
rendered to any employer prior to October 1, 1947.33
(31) "Regular interest" means such rate as the director may 34
determine. 35
(32) "Retiree" means any person who has begun accruing a 36
retirement allowance or other benefit provided by this chapter 37
resulting from service rendered to an employer while a member.38
(33) "Retirement" means withdrawal from active service with a 39
retirement allowance as provided by this chapter. 40
p. 102 HB 2034
(34) "Retirement allowance" means the sum of the annuity and the 1
pension. 2
(35) "Retirement system" means the public employees' retirement 3
system provided for in this chapter. 4
(36) "Separation from service" occurs when a person has 5
terminated all employment with an employer. Separation from service 6
or employment does not occur, and if claimed by an employer or 7
employee may be a violation of RCW 41.40.055, when an employee and 8
employer have a written or oral agreement to resume employment with 9
the same employer following termination. Mere expressions or 10
inquiries about postretirement employment by an employer or employee 11
that do not constitute a commitment to reemploy the employee after 12
retirement are not an agreement under this subsection.13
(37)(a) "Service" for plan 1 members, except as provided in RCW 14
41.40.088, means periods of employment in an eligible position or 15
positions for one or more employers rendered to any employer for 16
which compensation is paid, and includes time spent in office as an 17
elected or appointed official of an employer. Compensation earnable 18
earned in full time work for 70 hours or more in any given calendar 19
month shall constitute one service credit month except as provided in 20
RCW 41.40.088. Compensation earnable earned for less than 70 hours in 21
any calendar month shall constitute one-quarter service credit month 22
of service except as provided in RCW 41.40.088. Only service credit 23
months and one-quarter service credit months shall be counted in the 24
computation of any retirement allowance or other benefit provided for 25
in this chapter. Any fraction of a year of service shall be taken 26
into account in the computation of such retirement allowance or 27
benefits. Time spent in standby status, whether compensated or not, 28
is not service. 29
(i) Service by a state employee officially assigned by the state 30
on a temporary basis to assist another public agency, shall be 31
considered as service as a state employee: PROVIDED, That service to 32
any other public agency shall not be considered service as a state 33
employee if such service has been used to establish benefits in any 34
other public retirement system. 35
(ii) An individual shall receive no more than a total of 12 36
service credit months of service during any calendar year. If an 37
individual is employed in an eligible position by one or more 38
employers the individual shall receive no more than one service 39
p. 103 HB 2034
credit month during any calendar month in which multiple service for 1
seventy or more hours is rendered. 2
(iii) A school district employee may count up to 45 days of sick 3
leave as creditable service solely for the purpose of determining 4
eligibility to retire under RCW 41.40.180 as authorized by RCW 5
28A.400.300. For purposes of plan 1 "forty-five days" as used in RCW 6
28A.400.300 is equal to two service credit months. Use of less than 7
45 days of sick leave is creditable as allowed under this subsection 8
as follows: 9
(A) Less than 22 days equals one-quarter service credit month;10
(B) 22 days equals one service credit month; 11
(C) More than 22 days but less than 45 days equals one and one-12
quarter service credit month. 13
(iv) Reduction efforts such as furloughs, reduced work hours, 14
mandatory leave without pay, temporary layoffs, or other similar 15
situations as contemplated by subsection (6)(c)(iii) of this section 16
do not result in a reduction in service credit that otherwise would 17
have been earned for that month of work, and the member shall receive 18
the full service credit for the hours that were scheduled to be 19
worked before the reduction. 20
(b) "Service" for plan 2 and plan 3 members, means periods of 21
employment by a member in an eligible position or positions for one 22
or more employers for which compensation earnable is paid. 23
Compensation earnable earned for 90 or more hours in any calendar 24
month shall constitute one service credit month except as provided in 25
RCW 41.40.088. Compensation earnable earned for at least 70 hours but 26
less than 90 hours in any calendar month shall constitute one-half 27
service credit month of service. Compensation earnable earned for 28
less than 70 hours in any calendar month shall constitute one-quarter 29
service credit month of service. Time spent in standby status, 30
whether compensated or not, is not service. 31
Any fraction of a year of service shall be taken into account in 32
the computation of such retirement allowance or benefits.33
(i) Service in any state elective position shall be deemed to be 34
full time service, except that persons serving in state elective 35
positions who are members of the Washington school employees' 36
retirement system, teachers' retirement system, public safety 37
employees' retirement system, or law enforcement officers' and 38
firefighters' retirement system at the time of election or 39
appointment to such position may elect to continue membership in the 40
p. 104 HB 2034
Washington school employees' retirement system, teachers' retirement 1
system, public safety employees' retirement system, or law 2
enforcement officers' and firefighters' retirement system.3
(ii) A member shall receive a total of not more than 12 service 4
credit months of service for such calendar year. If an individual is 5
employed in an eligible position by one or more employers the 6
individual shall receive no more than one service credit month during 7
any calendar month in which multiple service for ninety or more hours 8
is rendered. 9
(iii) Up to 45 days of sick leave may be creditable as service 10
solely for the purpose of determining eligibility to retire under RCW 11
41.40.180 as authorized by RCW 28A.400.300. For purposes of plan 2 12
and plan 3 "forty-five days" as used in RCW 28A.400.300 is equal to 13
two service credit months. Use of less than 45 days of sick leave is 14
creditable as allowed under this subsection as follows:15
(A) Less than 11 days equals one-quarter service credit month;16
(B) 11 or more days but less than 22 days equals one-half service 17
credit month; 18
(C) 22 days equals one service credit month; 19
(D) More than 22 days but less than 33 days equals one and one-20
quarter service credit month; 21
(E) 33 or more days but less than 45 days equals one and one-half 22
service credit month. 23
(iv) Reduction efforts such as furloughs, reduced work hours, 24
mandatory leave without pay, temporary layoffs, or other similar 25
situations as contemplated by subsection (6)(c)(iii) of this section 26
do not result in a reduction in service credit that otherwise would 27
have been earned for that month of work, and the member shall receive 28
the full service credit for the hours that were scheduled to be 29
worked before the reduction. 30
(38) "Service credit month" means a month or an accumulation of 31
months of service credit which is equal to one. 32
(39) "Service credit year" means an accumulation of months of 33
service credit which is equal to one when divided by twelve.34
(40) "State actuary" or "actuary" means the person appointed 35
pursuant to RCW 44.44.010(2). 36
(41) "State elective position" means any position held by any 37
person elected or appointed to statewide office or elected or 38
appointed as a member of the legislature. 39
p. 105 HB 2034
(42) "State treasurer" means the treasurer of the state of 1
Washington. 2
(43) "Totally incapacitated for duty" means total inability to 3
perform the duties of a member's employment or office or any other 4
work for which the member is qualified by training or experience.5
Sec. 438. RCW 41.40.037 and 2023 c 99 s 2 are each amended to 6
read as follows: 7
(1)(a) If a retiree enters employment with an employer sooner 8
than one calendar month after his or her accrual date, the retiree's 9
monthly retirement allowance will be reduced by five and one-half 10
percent for every eight hours worked during that month. This 11
reduction will be applied each month until the retiree remains absent 12
from employment with an employer for one full calendar month.13
(b) The benefit reduction provided in (a) of this subsection will 14
accrue for a maximum of one hundred sixty hours per month. Any 15
benefit reduction over one hundred percent will be applied to the 16
benefit the retiree is eligible to receive in subsequent months.17
(2)(a) A retiree from plan 1, plan 2, or plan 3 who has satisfied 18
the break in employment requirement of subsection (1) of this section 19
may work up to eight hundred sixty-seven hours per calendar year in 20
an eligible position, as defined in RCW 41.32.010, 41.35.010, 21
41.37.010, or 41.40.010, or as a firefighter or law enforcement 22
officer, as defined in RCW 41.26.030 or section 303 of this act , or 23
in a position covered by annuity and retirement income plans offered 24
by institutions of higher education pursuant to RCW 28B.10.400, 25
without suspension of his or her benefit. 26
(b) Between March 23, 2022, and July 1, 2025, a retiree, 27
including a retiree who has retired under the alternate early 28
retirement provisions of RCW 41.40.630(3)(b) or 41.40.820(3)(b), who 29
reenters employment more than 100 days after his or her accrual date, 30
and who enters service in a school district in a nonadministrative 31
position shall continue to receive pension payments while engaged in 32
such service, until the retiree has rendered service for more than 33
1,040 hours in a calendar year. 34
(c) Between April 14, 2023, and July 1, 2026, a retiree, 35
including a retiree who has retired under the alternate early 36
retirement provisions of RCW 41.40.630(3)(b) or 41.40.820(3)(b), and 37
who enters service in a nonadministrative position as a licensed 38
nurse for a state agency, shall continue to receive pension payments 39
p. 106 HB 2034
while engaged in such service, until the retiree has rendered service 1
for more than 1,040 hours in a calendar year. 2
(3) If the retiree opts to reestablish membership under RCW 3
41.40.023(12), he or she terminates his or her retirement status and 4
becomes a member. Retirement benefits shall not accrue during the 5
period of membership and the individual shall make contributions and 6
receive membership credit. Such a member shall have the right to 7
again retire if eligible in accordance with RCW 41.40.180. However, 8
if the right to retire is exercised to become effective before the 9
member has rendered two uninterrupted years of service, the 10
retirement formula and survivor options the member had at the time of 11
the member's previous retirement shall be reinstated.12
(4) The department shall collect and provide the state actuary 13
with information relevant to the use of this section for the select 14
committee on pension policy. 15
(5) The legislature reserves the right to amend or repeal this 16
section in the future and no member or beneficiary has a contractual 17
right to be employed for more than five months in a calendar year 18
without a reduction of his or her pension. 19
Sec. 439. RCW 41.40.059 and 1992 c 157 s 3 are each amended to 20
read as follows: 21
Any active member of this retirement system who has previously 22
established ten or more years' service credit in the city of 23
Seattle's police relief and pension fund system, who withdrew his or 24
her contributions from Seattle's police relief and pension fund 25
system prior to July 1, 1961, and who has never been a member of the 26
law enforcement officers' and firefighters' pension system created in 27
chapter 41.26 or 41.--- (the new chapter created in section 504 of 28
this act) RCW, may receive credit in this retirement system for such 29
service, subject to the terms and conditions specified in RCW 30
41.40.061. 31
Sec. 440. RCW 41.40.690 and 2004 c 242 s 57 are each amended to 32
read as follows: 33
(1) Except as provided in RCW 41.40.037, no retiree under the 34
provisions of plan 2 shall be eligible to receive such retiree's 35
monthly retirement allowance if he or she is employed in an eligible 36
position as defined in RCW 41.40.010, 41.32.010, 41.37.010, or 37
41.35.010, or as a law enforcement officer or firefighter as defined 38
p. 107 HB 2034
in RCW 41.26.030 or section 303 of this act , except that a retiree 1
who ends his or her membership in the retirement system pursuant to 2
RCW 41.40.023(3)(b) is not subject to this section if the retiree's 3
only employment is as an elective official of a city or town.4
(2) If a retiree's benefits have been suspended under this 5
section, his or her benefits shall be reinstated when the retiree 6
terminates the employment that caused his or her benefits to be 7
suspended. Upon reinstatement, the retiree's benefits shall be 8
actuarially recomputed pursuant to the rules adopted by the 9
department. 10
(3) The department shall adopt rules implementing this section.11
Sec. 441. RCW 41.40.850 and 2005 c 327 s 9 are each amended to 12
read as follows: 13
(1) Except as provided in RCW 41.40.037, no retiree under the 14
provisions of plan 3 shall be eligible to receive such retiree's 15
monthly retirement allowance if he or she is employed in an eligible 16
position as defined in RCW 41.40.010, 41.32.010, 41.35.010, or 17
41.37.010, or as a law enforcement officer or firefighter as defined 18
in RCW 41.26.030 or section 303 of this act , except that a retiree 19
who ends his or her membership in the retirement system pursuant to 20
RCW 41.40.023(3)(b) is not subject to this section if the retiree's 21
only employment is as an elective official of a city or town.22
(2) If a retiree's benefits have been suspended under this 23
section, his or her benefits shall be reinstated when the retiree 24
terminates the employment that caused his or her benefits to be 25
suspended. Upon reinstatement, the retiree's benefits shall be 26
actuarially recomputed pursuant to the rules adopted by the 27
department. 28
(3) The department shall adopt rules implementing this section.29
Sec. 442. RCW 41.45.010 and 2009 c 561 s 1 are each amended to 30
read as follows: 31
It is the intent of the legislature to provide a dependable and 32
systematic process for funding the benefits provided to members and 33
retirees of the public employees' retirement system, chapter 41.40 34
RCW; the teachers' retirement system, chapter 41.32 RCW; the law 35
enforcement officers' and firefighters' retirement systems, chapter s 36
41.26 and 41.--- (the new chapter created in section 504 of this act) 37
RCW; the school employees' retirement system, chapter 41.35 RCW; the 38
p. 108 HB 2034
public safety employees' retirement system, chapter 41.37 RCW; and 1
the Washington state patrol retirement system, chapter 43.43 RCW.2
The funding process established by this chapter is intended to 3
achieve the following goals: 4
(1) To fully fund the public employees' retirement system plans 2 5
and 3, the teachers' retirement system plans 2 and 3, the school 6
employees' retirement system plans 2 and 3, the public safety 7
employees' retirement system plan 2, and the law enforcement 8
officers' and firefighters' retirement system plan 2 as provided by 9
law; 10
(2) ((To fully amortize the total costs of the law enforcement 11
officers' and firefighters' retirement system plan 1, not later than 12
June 30, 2024;13
(3))) To fully amortize the unfunded actuarial accrued liability 14
in the public employees' retirement system plan 1 and the teachers' 15
retirement system plan 1 within a rolling ten-year period, using 16
methods and assumptions that balance needs for increased benefit 17
security, decreased contribution rate volatility, and affordability 18
of pension contribution rates; 19
(((4))) (3) To establish long-term employer contribution rates 20
which will remain a relatively predictable proportion of the future 21
state budgets; and 22
(((5))) (4) To fund, to the extent feasible, all benefits for 23
plan 2 and 3 members over the working lives of those members so that 24
the cost of those benefits are paid by the taxpayers who receive the 25
benefit of those members' service. 26
Sec. 443. RCW 41.45.020 and 2006 c 365 s 1 are each amended to 27
read as follows: 28
As used in this chapter, the following terms have the meanings 29
indicated unless the context clearly requires otherwise.30
(1) "Council" means the pension funding council created in RCW 31
41.45.100. 32
(2) "Department" means the department of retirement systems.33
(3) "((Law)) Restated law enforcement officers' and firefighters' 34
retirement system ((plan 1 ))" and "law enforcement officers' and 35
firefighters' retirement system plan 2" means the benefits and 36
funding provisions under chapter s 41.--- (the new chapter created in 37
section 504 of this act) and 41.26 RCW, respectively.38
p. 109 HB 2034
(4) "Public employees' retirement system plan 1," "public 1
employees' retirement system plan 2," and "public employees' 2
retirement system plan 3" mean the benefits and funding provisions 3
under chapter 41.40 RCW. 4
(5) "Teachers' retirement system plan 1," "teachers' retirement 5
system plan 2," and "teachers' retirement system plan 3" mean the 6
benefits and funding provisions under chapter 41.32 RCW.7
(6) "School employees' retirement system plan 2" and "school 8
employees' retirement system plan 3" mean the benefits and funding 9
provisions under chapter 41.35 RCW. 10
(7) "Washington state patrol retirement system" means the 11
retirement benefits provided under chapter 43.43 RCW.12
(8) "Unfunded liability" means the unfunded actuarial accrued 13
liability of a retirement system. 14
(9) "Actuary" or "state actuary" means the state actuary employed 15
under chapter 44.44 RCW. 16
(10) "State retirement systems" means the retirement systems 17
listed in RCW 41.50.030. 18
(11) "Classified employee" means a member of the Washington 19
school employees' retirement system plan 2 or plan 3 as defined in 20
RCW 41.35.010. 21
(12) "Teacher" means a member of the teachers' retirement system 22
as defined in RCW 41.32.010(((15))). 23
(13) "Select committee" means the select committee on pension 24
policy created in RCW 41.04.276. 25
(14) "Actuarial value of assets" means the value of pension plan 26
investments and other property used by the actuary for the purpose of 27
an actuarial valuation. 28
(15) "Public safety employees' retirement system plan 2" means 29
the benefits and funding provisions established under chapter 41.37 30
RCW. 31
(16) "Normal cost" means the portion of the actuarial present 32
value of projected benefits and expenses that is allocated to a 33
period, typically twelve months, under the actuarial cost method.34
Sec. 444. RCW 41.45.050 and 2020 c 103 s 3 are each amended to 35
read as follows: 36
(1) Employers of members of the public employees' retirement 37
system, the teachers' retirement system, the school employees' 38
retirement system, the public safety employees' retirement system, 39
p. 110 HB 2034
the Washington state patrol retirement system, and the higher 1
education retirement plans shall make contributions to those systems 2
and plans based on the rates established in RCW 41.45.060 and 3
41.45.070. 4
(2) The state shall make contributions to the law enforcement 5
officers' and firefighters' retirement system plan 2 based on the 6
rates established in RCW 41.45.060 and 41.45.070. The state treasurer 7
shall transfer the required contributions each month on the basis of 8
salary data provided by the department. 9
(3) The department shall bill employers, and the state shall make 10
contributions to the law enforcement officers' and firefighters' 11
retirement system plan 2, using the combined rates established in RCW 12
41.45.060 and 41.45.070 regardless of the level of appropriation 13
provided in the biennial budget. Any member of an affected retirement 14
system may, by mandamus or other appropriate proceeding, require the 15
transfer and payment of funds as directed in this section.16
(4) The contributions received for the public employees' 17
retirement system shall be allocated between the public employees' 18
retirement system plan 1 fund and the public employees' retirement 19
system combined plan 2 and plan 3 fund as follows: The contributions 20
necessary to fully fund the public employees' retirement system 21
combined plan 2 and plan 3 employer contribution shall first be 22
deposited in the public employees' retirement system combined plan 2 23
and plan 3 fund. All remaining public employees' retirement system 24
employer contributions shall be deposited in the public employees' 25
retirement system plan 1 fund. 26
(5) The contributions received for the teachers' retirement 27
system shall be allocated between the plan 1 fund and the combined 28
plan 2 and plan 3 fund as follows: The contributions necessary to 29
fully fund the combined plan 2 and plan 3 employer contribution shall 30
first be deposited in the combined plan 2 and plan 3 fund. All 31
remaining teachers' retirement system employer contributions shall be 32
deposited in the plan 1 fund. 33
(6) The contributions received for the school employees' 34
retirement system shall be allocated between the public employees' 35
retirement system plan 1 fund and the school employees' retirement 36
system combined plan 2 and plan 3 fund as follows: The contributions 37
necessary to fully fund the combined plan 2 and plan 3 employer 38
contribution shall first be deposited in the combined plan 2 and plan 39
3 fund. All remaining school employees' retirement system employer 40
p. 111 HB 2034
contributions shall be deposited in the public employees' retirement 1
system plan 1 fund. 2
(7) The contributions received for the law enforcement officers' 3
and firefighters' retirement system plan 2 shall be deposited in the 4
law enforcement officers' and firefighters' retirement system plan 2 5
fund. 6
(8) The contributions received for the public safety employees' 7
retirement system shall be allocated between the public employees' 8
retirement system plan 1 fund and the public safety employees' 9
retirement system plan 2 fund as follows: The contributions necessary 10
to fully fund the plan 2 employer contribution shall first be 11
deposited in the plan 2 fund. All remaining public safety employees' 12
retirement system employer contributions shall be deposited in the 13
public employees' retirement system plan 1 fund. 14
(9) The contributions received for the higher education 15
retirement plan supplemental benefit fund shall be deposited in the 16
higher education retirement plan supplemental benefit fund and 17
amounts received from each institution accounted for separately and 18
shall only be used to make benefit payments to the beneficiaries of 19
that institution's plan. 20
(10) The funding of the restated law enforcement officers' and 21
firefighters' defined benefit retirement system shall be provided 22
pursuant to section 104 of this act. Contributions, if received for 23
the restated law enforcement officers' and firefighters' defined 24
benefit retirement system, shall be deposited in the restated law 25
enforcement officers' and firefighters' retirement fund.26
Sec. 445. RCW 41.45.060 and 2020 c 103 s 4 are each amended to 27
read as follows: 28
(1) The state actuary shall provide preliminary actuarial 29
valuation results based on the economic assumptions and asset value 30
smoothing technique included in RCW 41.45.035 or adopted under RCW 31
41.45.030 or 41.45.035. 32
(2) Not later than July 31, 2008, and every two years thereafter, 33
consistent with the economic assumptions and asset value smoothing 34
technique included in RCW 41.45.035 or adopted under RCW 41.45.030 or 35
41.45.035, the council shall adopt and may make changes to:36
(a) A basic state contribution rate for the law enforcement 37
officers' and firefighters' retirement system plan 1;38
p. 112 HB 2034
(b) Basic employer contribution rates for the public employees' 1
retirement system, the teachers' retirement system, and the 2
Washington state patrol retirement system; and 3
(c) Basic employer contribution rates for the school employees' 4
retirement system and the public safety employees' retirement system 5
for funding both those systems and the public employees' retirement 6
system plan 1. 7
The council may adopt annual rate changes for any plan for any 8
rate-setting period. The contribution rates adopted by the council 9
shall be subject to revision by the legislature. 10
(3) The employer and state contribution rates adopted by the 11
council shall be the level percentages of pay that are needed:12
(a) ((To fully amortize the total costs of the law enforcement 13
officers' and firefighters' retirement system plan 1 not later than 14
June 30, 2024;15
(b))) To fully fund the public employees' retirement system plans 16
2 and 3, the teachers' retirement system plans 2 and 3, the public 17
safety employees' retirement system plan 2, and the school employees' 18
retirement system plans 2 and 3 in accordance with RCW 41.45.061, 19
41.45.067, and this section; and 20
(((c))) (b) To fully fund the public employees' retirement system 21
plan 1 and the teachers' retirement system plan 1 in accordance with 22
RCW 41.45.070, 41.45.150, and this section. 23
(4) The aggregate actuarial cost method shall be used to 24
calculate a combined plan 2 and 3 normal cost, a Washington state 25
patrol retirement system normal cost, and a public safety employees' 26
retirement system normal cost. 27
(5) A modified entry age normal cost method, as set forth in this 28
chapter, shall be used to calculate employer contributions to the 29
public employees' retirement system plan 1 and the teachers' 30
retirement system plan 1. 31
(6) The employer contribution rate for the public employees' 32
retirement system and the school employees' retirement system shall 33
equal the sum of: 34
(a) The amount required to pay the combined plan 2 and plan 3 35
normal cost for the system, subject to any minimum rates applied 36
pursuant to RCW 41.45.155; plus 37
(b) The amount required to amortize the unfunded actuarial 38
accrued liability in plan 1 of the public employees' retirement 39
system over a rolling ten-year period using projected future salary 40
p. 113 HB 2034
growth and growth in system membership, and subject to any minimum or 1
maximum rates applied pursuant to RCW 41.45.150; plus2
(c) The amounts required to amortize the costs of any benefit 3
improvements in plan 1 of the public employees' retirement system 4
that become effective after June 30, 2009. The cost of each benefit 5
improvement shall be amortized over a fixed ten-year period using 6
projected future salary growth and growth in system membership. The 7
amounts required under this subsection are not subject to, and are 8
collected in addition to, any minimum or maximum rates applied 9
pursuant to RCW 41.45.150. 10
(7) The employer contribution rate for the public safety 11
employees' retirement system shall equal the sum of:12
(a) The amount required to pay the normal cost for the system, 13
subject to any minimum rates applied pursuant to RCW 41.45.155; plus14
(b) The amount required to amortize the unfunded actuarial 15
accrued liability in plan 1 of the public employees' retirement 16
system over a rolling ten-year period using projected future salary 17
growth and growth in system membership, and subject to any minimum or 18
maximum rates applied pursuant to RCW 41.45.150; plus19
(c) The amounts required to amortize the costs of any benefit 20
improvements in plan 1 of the public employees' retirement system 21
that become effective after June 30, 2009. The cost of each benefit 22
improvement shall be amortized over a fixed ten-year period using 23
projected future salary growth and growth in system membership. The 24
amounts required under this subsection are not subject to, and are 25
collected in addition to, any minimum or maximum rates applied 26
pursuant to RCW 41.45.150. 27
(8) The employer contribution rate for the teachers' retirement 28
system shall equal the sum of: 29
(a) The amount required to pay the combined plan 2 and plan 3 30
normal cost for the system, subject to any minimum rates applied 31
pursuant to RCW 41.45.155; plus 32
(b) The amount required to amortize the unfunded actuarial 33
accrued liability in plan 1 of the teachers' retirement system over a 34
rolling ten-year period using projected future salary growth and 35
growth in system membership, and subject to any minimum or maximum 36
rates applied pursuant to RCW 41.45.150; plus 37
(c) The amounts required to amortize the costs of any benefit 38
improvements in plan 1 of the teachers' retirement system that become 39
effective after June 30, 2009. The cost of each benefit improvement 40
p. 114 HB 2034
shall be amortized over a fixed ten-year period using projected 1
future salary growth and growth in system membership. The amounts 2
required under this subsection are not subject to, and are collected 3
in addition to, any minimum or maximum rates applied pursuant to RCW 4
41.45.150. 5
(9) The employer contribution rate for each of the institutions 6
of higher education for the higher education supplemental retirement 7
benefits must be sufficient to fund, as a level percentage of pay, a 8
portion of the projected cost of the supplemental retirement benefits 9
for the institution beginning in 2035, with the other portion 10
supported on a pay-as-you-go basis, either as direct payments by each 11
institution to retirees, or as contributions to the higher education 12
retirement plan supplemental benefit fund. Contributions must 13
continue until the council determines that the institution for higher 14
education supplemental retirement benefit liabilities are satisfied.15
(10) The council shall immediately notify the directors of the 16
office of financial management and department of retirement systems 17
of the state and employer contribution rates adopted. The rates shall 18
be effective for the ensuing biennial period, subject to any 19
legislative modifications. 20
(11) The director shall collect those rates adopted by the 21
council. The rates established in RCW 41.45.062, or by the council, 22
shall be subject to revision by the legislature. 23
(12) The state actuary shall prepare final actuarial valuation 24
results based on the economic assumptions, asset value smoothing 25
technique, and contribution rates included in or adopted under RCW 26
41.45.030, 41.45.035, and this section. 27
Sec. 446. RCW 41.48.030 and 2008 c 142 s 1 are each amended to 28
read as follows: 29
(1) The governor is hereby authorized to enter on behalf of the 30
state into an agreement with the federal secretary of health and 31
human services consistent with the terms and provisions of this 32
chapter, for the purpose of extending the benefits of the federal 33
old-age and survivors insurance system to employees of the state or 34
any political subdivision not members of an existing retirement 35
system, or to members of a retirement system established by the state 36
or by a political subdivision thereof or by an institution of higher 37
learning with respect to services specified in such agreement which 38
constitute "employment" as defined in RCW 41.48.020. Such agreement 39
p. 115 HB 2034
may contain such provisions relating to coverage, benefits, 1
contributions, effective date, modification and termination of the 2
agreement, administration, and other appropriate provisions as the 3
governor and secretary of health and human services shall agree upon, 4
but, except as may be otherwise required by or under the social 5
security act as to the services to be covered, such agreement shall 6
provide in effect that: 7
(a) Benefits will be provided for employees whose services are 8
covered by the agreement (and their dependents and survivors) on the 9
same basis as though such services constituted employment within the 10
meaning of Title II of the social security act; 11
(b) The state will pay to the secretary of the treasury, at such 12
time or times as may be prescribed under the social security act, 13
contributions with respect to wages (as defined in RCW 41.48.020), 14
equal to the sum of the taxes which would be imposed by the federal 15
insurance contributions act if the services covered by the agreement 16
constituted employment within the meaning of that act;17
(c) Such agreement shall be effective with respect to services in 18
employment covered by the agreement or modification thereof performed 19
after a date specified therein but in no event may it be effective 20
with respect to any such services performed prior to the first day of 21
the calendar year immediately preceding the calendar year in which 22
such agreement or modification of the agreement is accepted by the 23
secretary of health and human services; 24
(d) All services which constitute employment as defined in RCW 25
41.48.020 and are performed in the employ of the state by employees 26
of the state, shall be covered by the agreement; 27
(e) All services which (i) constitute employment as defined in 28
RCW 41.48.020, (ii) are performed in the employ of a political 29
subdivision of the state, and (iii) are covered by a plan which is in 30
conformity with the terms of the agreement and has been approved by 31
the governor under RCW 41.48.050, shall be covered by the agreement;32
(f) As modified, the agreement shall include all services 33
described in either (d) or (e) of this subsection and performed by 34
individuals to whom section 218 (c)(3)(C) of the social security act 35
is applicable, and shall provide that the service of any such 36
individual shall continue to be covered by the agreement in case he 37
or she thereafter becomes eligible to be a member of a retirement 38
system; 39
p. 116 HB 2034
(g) As modified, the agreement shall include all services 1
described in either (d) or (e) of this subsection and performed by 2
individuals in positions covered by a retirement system with respect 3
to which the governor has issued a certificate to the secretary of 4
health and human services pursuant to subsection (5) of this section; 5
and 6
(h) Law enforcement officers and firefighters of each political 7
subdivision of this state who are covered by the ((Washington)) 8
restated law enforcement officers' and firefighters' retirement 9
system or law enforcement officers' and firefighters' retirement 10
system ((act)) plan 2 , chapter 41.--- (the new chapter created in 11
section 504 of this act) or 41.26 RCW, shall constitute a separate 12
"coverage group" for purposes of the agreement entered into under 13
this section and for purposes of section 218 of the social security 14
act. 15
(2) Any instrumentality jointly created by this state and any 16
other state or states is hereby authorized, upon the granting of like 17
authority by such other state or states, (a) to enter into an 18
agreement with the secretary of health and human services whereby the 19
benefits of the federal old-age and survivors insurance system shall 20
be extended to employees of such instrumentality, (b) to require its 21
employees to pay (and for that purpose to deduct from their wages) 22
contributions equal to the amounts which they would be required to 23
pay under RCW 41.48.040(1) if they were covered by an agreement made 24
pursuant to subsection (1) of this section, and (c) to make payments 25
to the secretary of the treasury in accordance with such agreement, 26
including payments from its own funds, and otherwise to comply with 27
such agreements. Such agreement shall, to the extent practicable, be 28
consistent with the terms and provisions of subsection (1) of this 29
section and other provisions of this chapter. 30
(3) The governor is empowered to authorize a referendum, and to 31
designate an agency or individual to supervise its conduct, in 32
accordance with the requirements of section 218 (d)(3) of the social 33
security act, and subsection (4) of this section on the question of 34
whether service in all positions covered by a retirement system 35
established by the state or by a political subdivision thereof should 36
be excluded from or included under an agreement under this chapter. 37
If a retirement system covers positions of employees of the state of 38
Washington, of the institutions of higher learning, and positions of 39
employees of one or more of the political subdivisions of the state, 40
p. 117 HB 2034
then for the purpose of the referendum as provided in this section, 1
there may be deemed to be a separate retirement system with respect 2
to employees of the state, or any one or more of the political 3
subdivisions, or institutions of higher learning and the governor 4
shall authorize a referendum upon request of the subdivisions' or 5
institutions' of higher learning governing body: PROVIDED HOWEVER, 6
That if a referendum of state employees generally fails to produce a 7
favorable majority vote then the governor may authorize a referendum 8
covering positions of employees in any state department who are 9
compensated in whole or in part from grants made to this state under 10
Title III of the federal social security act: PROVIDED, That any city 11
or town affiliated with the statewide city employees retirement 12
system organized under chapter 41.44 RCW may at its option agree to a 13
plan submitted by the board of trustees of that statewide city 14
employees retirement system for inclusion under an agreement under 15
this chapter if the referendum to be held as provided in this section 16
indicates a favorable result: PROVIDED FURTHER, That the teachers' 17
retirement system be considered one system for the purpose of the 18
referendum except as applied to the several state colleges ((of 19
education)). The notice of referendum required by section 20
218(d)(3)(C) of the social security act to be given to employees 21
shall contain or shall be accompanied by a statement, in such form 22
and such detail as the agency or individual designated to supervise 23
the referendum shall deem necessary and sufficient, to inform the 24
employees of the rights which will accrue to them and their 25
dependents and survivors, and the liabilities to which they will be 26
subject, if their services are included under an agreement under this 27
chapter. 28
(4) The governor, before authorizing a referendum, shall require 29
the following conditions to be met: 30
(a) The referendum shall be by secret written ballot on the 31
question of whether service in positions covered by such retirement 32
system shall be excluded from or included under the agreement between 33
the governor and the secretary of health and human services provided 34
for in subsection (1) of this section; 35
(b) An opportunity to vote in such referendum shall be given and 36
shall be limited to eligible employees; 37
(c) Not less than ninety days' notice of such referendum shall be 38
given to all such employees; 39
p. 118 HB 2034
(d) Such referendum shall be conducted under the supervision of 1
the governor or of an agency or individual designated by the 2
governor; 3
(e)(i) The proposal for coverage shall be approved only if a 4
majority of the eligible employees vote in favor of including 5
services in such positions under the agreement; 6
(ii) Coverage obtained through a divided referendum process shall 7
extend coverage to law enforcement officers, firefighters, and 8
employees of political subdivisions of this state, who have 9
membership in a qualified retirement system, allowing them to obtain 10
medicare coverage only (HI -only). In such a divided referendum 11
process, those members voting in favor of medicare coverage 12
constitute a separate coverage group; 13
(f) The state legislature, in the case of a referendum affecting 14
the rights and liabilities of state employees covered under the state 15
employees' retirement system and employees under the teachers' 16
retirement system, and in all other cases the local legislative 17
authority or governing body, shall have specifically approved the 18
proposed plan and approved any necessary structural adjustment to the 19
existing system to conform with the proposed plan;20
(g) In the case of a referendum authorized under section 21
218(d)(6) of the social security act and (e)(ii) of this subsection, 22
the retirement system will be divided into two parts or divisions. 23
One part or division of the retirement system shall be composed of 24
positions of those members of the system who desire coverage under 25
the agreement as permitted by this section. The remaining part or 26
division of the retirement system shall be composed of positions of 27
those members who do not desire coverage under such an agreement. 28
Each part or division is a separate retirement system for the 29
purposes of section 218 (d) of the social security act. The positions 30
of individuals who become members of the system after the coverage is 31
extended shall be included in the part or division of the system 32
composed of members desiring the coverage, with the exception of 33
positions that are excluded in the agreement. 34
(5) Upon receiving satisfactory evidence that with respect to any 35
such referendum the conditions specified in subsection (4) of this 36
section and section 218 (d)(3) of the social security act have been 37
met, the governor shall so certify to the secretary of health and 38
human services. 39
p. 119 HB 2034
(6) If the legislative body of any political subdivision of this 1
state certifies to the governor that a referendum has been held under 2
the terms of RCW 41.48.050(1)(i) and gives notice to the governor of 3
termination of social security for any coverage group of the 4
political subdivision, the governor shall give two years advance 5
notice in writing to the federal department of health and human 6
services of the termination of the agreement entered into under this 7
section with respect to that coverage group. 8
Sec. 447. RCW 41.48.050 and 2012 c 117 s 79 are each amended to 9
read as follows: 10
(1) Each political subdivision of the state is hereby authorized 11
to submit for approval by the governor a plan for extending the 12
benefits of title II of the social security act, in conformity with 13
the applicable provisions of such act, to those employees of such 14
political subdivisions who are not covered by an existing pension or 15
retirement system. Each pension or retirement system established by 16
the state or a political subdivision thereof is hereby authorized to 17
submit for approval by the governor a plan for extending the benefits 18
of title II of the social security act, in conformity with applicable 19
provisions of such act, to members of such pension or retirement 20
system. Each such plan and any amendment thereof shall be approved by 21
the governor if he or she finds that such plan, or such plan as 22
amended, is in conformity with such requirements as are provided in 23
regulations of the governor, except that no such plan shall be 24
approved unless((—)):25
(a) It is in conformity with the requirements of the social 26
security act and with the agreement entered into under RCW 41.48.030;27
(b) It provides that all services which constitute employment as 28
defined in RCW 41.48.020 and are performed in the employ of the 29
political subdivision by employees thereof, shall be covered by the 30
plan; 31
(c) It specifies the source or sources from which the funds 32
necessary to make the payments required by ((paragraph (a) of)) 33
subsections (3)(a) and ((by subsection )) (4) of this section are 34
expected to be derived and contains reasonable assurance that such 35
sources will be adequate for such purposes; 36
(d) It provides that in the plan of coverage for members of the 37
state teachers' retirement system or for state employee members of 38
the state employees' retirement system, there shall be no additional 39
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cost to or involvement of the state until such plan has received 1
prior approval by the legislature; 2
(e) It provides for such methods of administration of the plan by 3
the political subdivision as are found by the governor to be 4
necessary for the proper and efficient administration of the plan;5
(f) It provides that the political subdivision will make such 6
reports, in such form and containing such information, as the 7
governor may from time to time require and comply with such 8
provisions as the governor or the secretary of health, education, and 9
welfare may from time to time find necessary to assure the 10
correctness and verification of such reports; ((and))11
(g) It authorizes the governor to terminate the plan in its 12
entirety, in his or her discretion, if he or she finds that there has 13
been a failure to comply substantially with any provision contained 14
in such plan, such termination to take effect at the expiration of 15
such notice and on such conditions as may be provided by regulations 16
of the governor and may be consistent with the provisions of the 17
social security act; 18
(h) It provides that law enforcement officers and firefighters of 19
each political subdivision of this state who are covered by the 20
((Washington Law Enforcement Officers' and Firefighters' Retirement 21
System Act (chapter 209, Laws of 1969 ex. sess.) )) law enforcement 22
officers' and firefighters' retirement systems under chapters 41.26 23
and 41.--- (the new chapter created in section 504 of this act) RCW 24
as now in existence or hereafter amended shall constitute a separate 25
"coverage group" for purposes of the plan or agreement entered into 26
under this section and for purposes of section 216 of the social 27
security act. To the extent that the plan or agreement entered into 28
between the state and any political subdivision of this state is 29
inconsistent with this subsection, the governor shall seek to modify 30
the inconsistency; 31
(i) It provides that the plan or agreement may be terminated by 32
any political subdivision as to any such coverage group upon giving 33
at least two years advance notice in writing to the governor, 34
effective at the end of the calendar quarter specified in the notice. 35
It shall specify that before notice of such termination is given, a 36
referendum shall be held among the members of the coverage group 37
under the following conditions: 38
(i) The referendum shall be conducted under the supervision of 39
the legislative body of the political subdivision.40
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(ii) Not less than sixty days' notice of such referendum shall be 1
given to members of the coverage group. 2
(iii) An opportunity to vote by secret ballot in such referendum 3
shall be given and shall be limited to all members of the coverage 4
group. 5
(iv) The proposal for termination shall be approved only if a 6
majority of the coverage group vote in favor of termination.7
(v) If a majority of the coverage group vote in favor of 8
termination, the legislative body of the political subdivision shall 9
certify the results of the referendum to the governor and give notice 10
of termination of such coverage group. 11
(2) The governor shall not finally refuse to approve a plan 12
submitted by a political subdivision under subsection (1) (([of this 13
section])) of this section, and shall not terminate an approved plan, 14
without reasonable notice and opportunity for hearing to the 15
political subdivision affected thereby. 16
(3)(a) Each political subdivision as to which a plan has been 17
approved under this section shall pay into the contribution account, 18
with respect to wages (as defined in RCW 41.48.020), at such time or 19
times as the governor may by regulation prescribe, contributions in 20
the amounts and at the rates specified in the applicable agreement 21
entered into by the governor under RCW 41.48.030. 22
(b) Each political subdivision required to make payments under 23
((paragraph)) (a) of this subsection is authorized, in consideration 24
of the employee's retention in, or entry upon, employment after 25
enactment of this chapter, to impose upon each of its employees, as 26
to services which are covered by an approved plan, a contribution 27
with respect to his or her wages (as defined in RCW 41.48.020), not 28
exceeding the amount of employee tax which is imposed by the federal 29
insurance contributions act, and to deduct the amount of such 30
contribution from his or her wages as and when paid. Contributions so 31
collected shall be paid into the OASI contribution account in partial 32
discharge of the liability of such political subdivision or 33
instrumentality under ((paragraph)) (a) of this subsection. Failure 34
to deduct such contribution shall not relieve the employee or 35
employer of liability therefor. 36
(4) Delinquent reports and payments due under ((paragraph (f) 37
of)) subsections (1)(f) and ((paragraph (a) of subsection)) (3)(a) of 38
this section will be subject to an added interest charge of six 39
percent per year or, if higher, the rate chargeable to the state by 40
p. 122 HB 2034
the secretary by virtue of federal law, if the late report or payment 1
contributes to any federal penalty for late filing of reports or for 2
late deposit of contributions. Delinquent contributions, interest, 3
and penalties may be recovered by civil action or may, at the request 4
of the governor, be deducted from any other moneys payable to the 5
political subdivision by any department or agency of the state.6
Sec. 448. RCW 41.50.030 and 2011 1st sp.s. c 47 s 20 are each 7
amended to read as follows: 8
(1) As soon as possible but not more than one hundred and eighty 9
days after March 19, 1976, there is transferred to the department of 10
retirement systems, except as otherwise provided in this chapter, all 11
powers, duties, and functions of: 12
(a) The Washington public employees' retirement system;13
(b) The Washington state teachers' retirement system;14
(c) The Washington law enforcement officers' and firefighters' 15
retirement system; 16
(d) The Washington state patrol retirement system;17
(e) The Washington judicial retirement system; and18
(f) The state treasurer with respect to the administration of the 19
judges' retirement fund imposed pursuant to chapter 2.12 RCW.20
(2) On July 1, 1996, there is transferred to the department all 21
powers, duties, and functions of the deferred compensation committee.22
(3) The department shall administer chapter 41.34 RCW.23
(4) The department shall administer the Washington school 24
employees' retirement system created under chapter 41.35 RCW.25
(5) The department shall administer the Washington public safety 26
employees' retirement system created under chapter 41.37 RCW.27
(6) The department shall administer the collection of employer 28
contributions and initial prefunding of the higher education 29
retirement plan supplemental benefits, also referred to as the 30
annuity or retirement income plans created under chapter 28B.10 RCW.31
(7) The department shall administer the restated law enforcement 32
officers' and firefighters' retirement system under chapter 41.--- 33
(the new chapter created in section 504 of this act) RCW.34
Sec. 449. RCW 41.50.033 and 2019 c 64 s 18 are each amended to 35
read as follows: 36
(1) The director shall determine when interest, if provided by a 37
plan, shall be credited to accounts in the public employees' 38
p. 123 HB 2034
retirement system, the teachers' retirement system, the school 1
employees' retirement system, the public safety employees' retirement 2
system, the law enforcement officers' and firefighters' retirement 3
system, or the Washington state patrol retirement system. The amounts 4
to be credited and the methods of doing so shall be at the director's 5
discretion, except that if interest is credited, it shall be done at 6
least quarterly. 7
(2) Interest as determined by the director under this section is 8
"regular interest" as defined in RCW 41.40.010, 41.32.010, 41.35.010, 9
41.37.010, 41.26.030, section 303 of this act, and 43.43.120.10
(3) The legislature affirms that the authority of the director 11
under RCW 41.40.020 and 41.50.030 includes the authority and 12
responsibility to establish the amount and all conditions for regular 13
interest, if any. The legislature intends chapter 493, Laws of 2007 14
to be curative, remedial, and retrospectively applicable.15
Sec. 450. RCW 41.50.055 and 1991 c 35 s 16 are each amended to 16
read as follows: 17
The administration of the ((Washington)) restated law enforcement 18
officers' and firefighters' retirement system and law enforcement 19
officers' and firefighters' retirement system ((is)), chapters 41.26 20
and 41.--- (the new chapter created in section 504 of this act) RCW, 21
are hereby vested in the director of retirement systems, and the 22
director shall: 23
(1) Keep in convenient form such data as shall be deemed 24
necessary for actuarial evaluation purposes; 25
(2) As of March 1, 1970, and at least every two years thereafter, 26
through the state actuary, make an actuarial valuation as to the 27
mortality and service experience of the beneficiaries under this 28
chapter and the various accounts created for the purpose of showing 29
the financial status of the retirement fund; 30
(3) Adopt for the Washington law enforcement officers' and 31
firefighters' retirement system the mortality tables and such other 32
tables as shall be deemed necessary; 33
(4) Keep a record of all its proceedings, which shall be open to 34
inspection by the public; 35
(5) From time to time adopt such rules and regulations not 36
inconsistent with chapter s 41.26 and 41.--- (the new chapter created 37
in section 504 of this act) RCW, for the administration of the 38
provisions of this chapter, for the administration of the fund 39
p. 124 HB 2034
created by this chapter and the several accounts thereof, and for the 1
transaction of the business of the system; 2
(6) Prepare and publish annually a financial statement showing 3
the condition of the Washington law enforcement officers' and 4
firefighters' fund and the various accounts thereof, and setting 5
forth such other facts, recommendations and data as may be of use in 6
the advancement of knowledge concerning the Washington law 7
enforcement officers' and firefighters' retirement system, and 8
furnish a copy thereof to each employer, and to such members as may 9
request copies thereof; 10
(7) Perform such other functions as are required for the 11
execution of the provisions of chapter s 41.26 and 41.--- (the new 12
chapter created in section 504 of this act) RCW; 13
(8) Fix the amount of interest to be credited at a rate which 14
shall be based upon the net annual earnings of the Washington law 15
enforcement officers' and firefighters' fund for the preceding 16
twelve-month period and from time to time make any necessary changes 17
in such rate; 18
(9) Pay from the department of retirement systems expense fund 19
the expenses incurred in administration of the Washington law 20
enforcement officers' and firefighters' retirement system from those 21
funds appropriated for that purpose; 22
(10) Perform any other duties prescribed elsewhere in chapter 23
41.26 or 41.--- (the new chapter created in section 504 of this act) 24
RCW; 25
(11) Issue decisions relating to appeals initiated pursuant to 26
RCW 41.16.145 and 41.18.104 as now or hereafter amended and shall be 27
authorized to order increased benefits pursuant to RCW 41.16.145 and 28
41.18.104 as now or hereafter amended. 29
Sec. 451. RCW 41.50.075 and 2020 c 103 s 5 are each amended to 30
read as follows: 31
(1) ((Two funds are)) A fund is hereby created and established in 32
the state treasury to be known as ((the Washington law enforcement 33
officers' and firefighters' system plan 1 retirement fund, and )) the 34
Washington law enforcement officers' and firefighters' system plan 2 35
retirement fund which shall consist of all moneys paid into ((them)) 36
the fund in accordance with the provisions of this chapter and 37
chapter 41.26 RCW, whether such moneys take the form of cash, 38
securities, or other assets. The ((plan 1 fund shall consist of all 39
p. 125 HB 2034
moneys paid to finance the benefits provided to members of the law 1
enforcement officers' and firefighters' retirement system plan 1, and 2
the)) plan 2 fund shall consist of all moneys paid to finance the 3
benefits provided to members of the law enforcement officers' and 4
firefighters' retirement system plan 2. 5
(2) All of the assets of the Washington state teachers' 6
retirement system shall be credited according to the purposes for 7
which they are held, to two funds to be maintained in the state 8
treasury, namely, the teachers' retirement system plan 1 fund and the 9
teachers' retirement system combined plan 2 and 3 fund. The plan 1 10
fund shall consist of all moneys paid to finance the benefits 11
provided to members of the Washington state teachers' retirement 12
system plan 1, and the combined plan 2 and 3 fund shall consist of 13
all moneys paid to finance the benefits provided to members of the 14
Washington state teachers' retirement system plan 2 and 3.15
(3) There is hereby established in the state treasury two 16
separate funds, namely the public employees' retirement system plan 1 17
fund and the public employees' retirement system combined plan 2 and 18
plan 3 fund. The plan 1 fund shall consist of all moneys paid to 19
finance the benefits provided to members of the public employees' 20
retirement system plan 1, and the combined plan 2 and plan 3 fund 21
shall consist of all moneys paid to finance the benefits provided to 22
members of the public employees' retirement system plans 2 and 3.23
(4) There is hereby established in the state treasury the school 24
employees' retirement system combined plan 2 and 3 fund. The combined 25
plan 2 and 3 fund shall consist of all moneys paid to finance the 26
benefits provided to members of the school employees' retirement 27
system plan 2 and plan 3. 28
(5) There is hereby established in the state treasury the public 29
safety employees' retirement system plan 2 fund. The plan 2 fund 30
shall consist of all moneys paid to finance the benefits provided to 31
members of the public safety employees' retirement system plan 2.32
(6)(a)(i) There is hereby established in the state treasury the 33
higher education retirement plan supplemental benefit fund. The 34
higher education retirement plan supplemental benefit fund shall 35
consist of all moneys paid to finance the benefits provided to 36
members of each of the higher education retirement plans.37
(ii) The fund in this subsection (6) was originally created under 38
chapter 47, Laws of 2011 1st sp. sess. (Engrossed Substitute House 39
Bill No. 1981). 40
p. 126 HB 2034
(b) The office of financial management must create individual 1
accounts for each institution of higher education within the higher 2
education retirement plan supplemental benefit fund. For fiscal year 3
2021, the office of financial management must transfer all the assets 4
of the higher education retirement plan supplemental benefit fund 5
into the individual accounts for each institution that will be used 6
to manage the accounting for each benefit plan. The higher education 7
retirement plan supplemental benefit fund will include all the 8
amounts in the individual accounts created in this subsection.9
(7) The department shall administer the funds established under 10
the restated law enforcement officers' and firefighters' retirement 11
system under chapter 41.--- RCW (the new chapter created in section 12
504 of this act), including:13
(a) The restated law enforcement officers' and firefighters' 14
defined benefit retirement fund; and15
(b) The pension funding stabilization account.16
Sec. 452. RCW 41.50.080 and 2011 1st sp.s. c 47 s 21 are each 17
amended to read as follows: 18
The state investment board shall provide for the investment of 19
all funds of the Washington public employees' retirement system, the 20
teachers' retirement system, the school employees' retirement system, 21
the Washington law enforcement officers' and firefighters' retirement 22
systems under chapters 41.26 and 41.--- (the new chapter created in 23
section 504 of this act) RCW , the Washington state patrol retirement 24
system, the Washington judicial retirement system, the Washington 25
public safety employees' retirement system, the higher education 26
retirement plan supplemental benefit fund, and the judges' retirement 27
fund, pursuant to RCW 43.84.150, and may sell or exchange investments 28
acquired in the exercise of that authority. 29
Sec. 453. RCW 41.50.090 and 1985 c 102 s 6 are each amended to 30
read as follows: 31
(1) Except as otherwise provided in this section, on the 32
effective date of transfer as provided in RCW 41.50.030, the 33
department shall succeed to and is vested with all powers, duties, 34
and functions now or by any concurrent act of this 1976 legislature 35
vested in the individual retirement boards set forth in RCW 41.50.030 36
relating to the administration of their various retirement systems, 37
including but not limited to the power to appoint a staff and define 38
p. 127 HB 2034
the duties thereof: PROVIDED, That actuarial services required by the 1
department shall be performed by the state actuary as provided in RCW 2
44.44.040. 3
(2) The department shall keep each retirement board fully 4
informed on the administration of the corresponding retirement 5
system, and shall furnish any information requested by a retirement 6
board. 7
(3) Rules proposed by the director under RCW 2.10.070, 41.50.055, 8
41.32.025, or 41.40.020 shall be submitted to the appropriate 9
retirement boards for review prior to adoption. After receiving 10
approval of the members of the appropriate board, such rules shall 11
become effective as provided by the administrative procedure act, 12
chapter 34.05 RCW. 13
(4) Each retirement board shall continue to perform all functions 14
as are vested in it by law with respect to applications for benefits 15
paid upon either temporary or permanent disability, with such staff 16
assistance from the department as may be required. The director shall 17
perform those functions with respect to disability benefits as are 18
vested in him or her by ((RCW 41.26.120, 41.26.125, and 41.26.200)) 19
chapter 41.--- RCW (the new chapter created in section 504 of this 20
act). 21
Sec. 454. RCW 41.50.110 and 2015 3rd sp.s. c 4 s 951 are each 22
amended to read as follows: 23
(1) Except as provided by RCW 41.50.255 and subsection (6) of 24
this section, all expenses of the administration of the department, 25
the expenses of administration of the retirement systems, and the 26
expenses of the administration of the office of the state actuary 27
created in chapters 2.10, 2.12, 28B.10, 41.26, 41.--- (the new 28
chapter created in section 504 of this act), 41.32, 41.40, 41.34, 29
41.35, 41.37, 43.43, and 44.44 RCW shall be paid from the department 30
of retirement systems expense fund. 31
(2) In order to reimburse the department of retirement systems 32
expense fund on an equitable basis the department shall ascertain and 33
report to each employer, as defined in RCW 28B.10.400, 41.26.030, 34
section 303 of this act, 41.32.010, 41.35.010, 41.37.010, or 35
41.40.010, the sum necessary to defray its proportional share of the 36
entire expense of the administration of the retirement system that 37
the employer participates in during the ensuing biennium or fiscal 38
year whichever may be required. Such sum is to be computed in an 39
p. 128 HB 2034
amount directly proportional to the estimated entire expense of the 1
administration as the ratio of monthly salaries of the employer's 2
members bears to the total salaries of all members in the entire 3
system. It shall then be the duty of all such employers to include in 4
their budgets or otherwise provide the amounts so required.5
(3) The department shall compute and bill each employer, as 6
defined in RCW 28B.10.400, 41.26.030, section 303 of this act, 7
41.32.010, 41.35.010, 41.37.010, or 41.40.010, at the end of each 8
month for the amount due for that month to the department of 9
retirement systems expense fund and the same shall be paid as are its 10
other obligations. Such computation as to each employer shall be made 11
on a percentage rate of salary established by the department. 12
However, the department may at its discretion establish a system of 13
billing based upon calendar year quarters in which event the said 14
billing shall be at the end of each such quarter. 15
(4) The director may adjust the expense fund contribution rate 16
for each system at any time when necessary to reflect unanticipated 17
costs or savings in administering the department. 18
(5) An employer who fails to submit timely and accurate reports 19
to the department may be assessed an additional fee related to the 20
increased costs incurred by the department in processing the 21
deficient reports. Fees paid under this subsection shall be deposited 22
in the retirement system expense fund. 23
(a) Every six months the department shall determine the amount of 24
an employer's fee by reviewing the timeliness and accuracy of the 25
reports submitted by the employer in the preceding six months. If 26
those reports were not both timely and accurate the department may 27
prospectively assess an additional fee under this subsection.28
(b) An additional fee assessed by the department under this 29
subsection shall not exceed fifty percent of the standard fee.30
(c) The department shall adopt rules implementing this section.31
(6) Expenses other than those under RCW 41.34.060(4) shall be 32
paid pursuant to subsection (1) of this section. 33
(7) During the 2009-2011 and 2011-2013 fiscal biennia, the 34
legislature may transfer from the department of retirement systems' 35
expense fund to the state general fund such amounts as reflect the 36
excess fund balance of the fund. During the 2015-2017 fiscal 37
biennium, state contributions to the judicial retirement system may 38
be made in part by appropriations from the department of retirement 39
systems expense fund. 40
p. 129 HB 2034
Sec. 455. RCW 41.50.112 and 2000 c 247 s 1107 are each amended 1
to read as follows: 2
Employers, as defined in RCW 41.26.030, section 303 of this act, 3
41.32.010, 41.34.020, 41.35.010, and 41.40.010, must report all 4
member data to the department in a format designed and communicated 5
by the department. Employers failing to comply with this reporting 6
requirement shall be assessed an additional fee as defined under RCW 7
41.50.110(5). 8
Sec. 456. RCW 41.50.150 and 2004 c 242 s 47 are each amended to 9
read as follows: 10
(1) The employer of any employee whose retirement benefits are 11
based in part on excess compensation, as defined in this section, 12
shall, upon receipt of a billing from the department, pay into the 13
appropriate retirement system the present value at the time of the 14
employee's retirement of the total estimated cost of all present and 15
future benefits from the retirement system attributable to the excess 16
compensation. The state actuary shall determine the estimated cost 17
using the same method and procedure as is used in preparing fiscal 18
note costs for the legislature. However, the director may in the 19
director's discretion decline to bill the employer if the amount due 20
is less than fifty dollars. Accounts unsettled within thirty days of 21
the receipt of the billing shall be assessed an interest penalty of 22
one percent of the amount due for each month or fraction thereof 23
beyond the original thirty-day period. 24
(2) "Excess compensation," as used in this section, includes the 25
following payments, if used in the calculation of the employee's 26
retirement allowance: 27
(a) A cash out of unused annual leave in excess of two hundred 28
forty hours of such leave. "Cash out" for purposes of this subsection 29
means: 30
(i) Any payment in lieu of an accrual of annual leave; or31
(ii) Any payment added to salary or wages, concurrent with a 32
reduction of annual leave; 33
(b) A cash out of any other form of leave; 34
(c) A payment for, or in lieu of, any personal expense or 35
transportation allowance to the extent that payment qualifies as 36
reportable compensation in the member's retirement system;37
(d) The portion of any payment, including overtime payments, that 38
exceeds twice the regular daily or hourly rate of pay; and39
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(e) Any termination or severance payment. 1
(3) This section applies to the retirement systems listed in RCW 2
41.50.030 and to retirements occurring on or after March 15, 1984. 3
Nothing in this section is intended to amend or determine the meaning 4
of any definition in chapter 2.10, 2.12, 41.26, 41.--- (the new 5
chapter created in section 504 of this act), 41.32, 41.40, 41.35, 6
41.37, or 43.43 RCW or to determine in any manner what payments are 7
includable in the calculation of a retirement allowance under such 8
chapters. 9
(4) An employer is not relieved of liability under this section 10
because of the death of any person either before or after the billing 11
from the department. 12
Sec. 457. RCW 41.50.255 and 2004 c 242 s 49 are each amended to 13
read as follows: 14
The director is authorized to pay from the interest earnings of 15
the trust funds of the public employees' retirement system, the 16
teachers' retirement system, the Washington state patrol retirement 17
system, the Washington judicial retirement system, the judges' 18
retirement system, the school employees' retirement system, the 19
public safety employees' retirement system, or the law enforcement 20
officers' and firefighters' retirement system s under chapters 41.26 21
and 41.--- (the new chapter created in section 504 of this act) RCW 22
lawful obligations of the appropriate system for legal expenses and 23
medical expenses which expenses are primarily incurred for the 24
purpose of protecting the appropriate trust fund or are incurred in 25
compliance with statutes governing such funds. 26
The term "legal expense" includes, but is not limited to, legal 27
services provided through the legal services revolving fund, fees for 28
expert witnesses, travel expenses, fees for court reporters, cost of 29
transcript preparation, and reproduction of documents.30
The term "medical costs" includes, but is not limited to, 31
expenses for the medical examination or reexamination of members or 32
retirees, the costs of preparation of medical reports, and fees 33
charged by medical professionals for attendance at discovery 34
proceedings or hearings. 35
The director may also pay from the interest earnings of the trust 36
funds specified in this section costs incurred in investigating fraud 37
and collecting overpayments, including expenses incurred to review 38
and investigate cases of possible fraud against the trust funds and 39
p. 131 HB 2034
collection agency fees and other costs incurred in recovering 1
overpayments. Recovered funds must be returned to the appropriate 2
trust funds. 3
Sec. 458. RCW 41.50.500 and 2004 c 242 s 50 are each amended to 4
read as follows: 5
Unless the context clearly requires otherwise, the definitions in 6
this section apply throughout RCW 41.50.500 through 41.50.650, 7
41.50.670 through 41.50.720, and 26.09.138. 8
(1) "Benefits" means periodic retirement payments or a withdrawal 9
of accumulated contributions. 10
(2) "Disposable benefits" means that part of the benefits of an 11
individual remaining after the deduction from those benefits of any 12
amount required by law to be withheld. The term "required by law to 13
be withheld" does not include any deduction elective to the member.14
(3) "Dissolution order" means any judgment, decree, or order of 15
spousal maintenance, property division, or court-approved property 16
settlement incident to a decree of divorce, dissolution, invalidity, 17
or legal separation issued by the superior court of the state of 18
Washington or a judgment, decree, or other order of spousal support 19
issued by a court of competent jurisdiction in another state or 20
country, that has been registered or otherwise made enforceable in 21
this state. 22
(4) "Mandatory benefits assignment order" means an order issued 23
to the department of retirement systems pursuant to RCW 41.50.570 to 24
withhold and deliver benefits payable to an obligor under chapter 25
2.10, 2.12, 41.26, 41.--- (the new chapter created in section 504 of 26
this act), 41.32, 41.40, 41.35, 41.37, or 43.43 RCW.27
(5) "Obligee" means an ex spouse or spouse to whom a duty of 28
spousal maintenance or property division obligation is owed.29
(6) "Obligor" means the spouse or ex spouse owing a duty of 30
spousal maintenance or a property division obligation.31
(7) "Periodic retirement payments" means periodic payments of 32
retirement allowances, including but not limited to service 33
retirement allowances, disability retirement allowances, and 34
survivors' allowances. The term does not include a withdrawal of 35
accumulated contributions. 36
(8) "Property division obligation" means any outstanding court-37
ordered property division or court-approved property settlement 38
p. 132 HB 2034
obligation incident to a decree of divorce, dissolution, or legal 1
separation. 2
(9) "Standard allowance" means a benefit payment option selected 3
under RCW 2.10.146(1)(a), 41.26.460(1)(a), 41.32.785(1)(a), 4
41.40.188(1)(a), 41.40.660(1), 41.40.845(1)(a), 41.37.170, or 5
41.35.220 that ceases upon the death of the retiree. Standard 6
allowance also means the benefit allowance provided under RCW 7
2.10.110, 2.10.130, 43.43.260, ((41.26.100, 41.26.130(1)(a),)) 8
section 318 or 324 (1)(a) of this act or chapter 2.12 RCW. Standard 9
allowance also means the maximum retirement allowance available under 10
RCW 41.32.530(1) following member withdrawal of accumulated 11
contributions, if any. 12
(10) "Withdrawal of accumulated contributions" means a lump sum 13
payment to a retirement system member of all or a part of the 14
member's accumulated contributions, including accrued interest, at 15
the request of the member including any lump sum amount paid upon the 16
death of the member. 17
Sec. 459. RCW 41.50.650 and 1991 c 365 s 12 are each amended to 18
read as follows: 19
(1) Notwithstanding RCW 2.10.180(1), 2.12.090(1), ((41.26.180)) 20
41.26.053(1), section 310(1) of this act, 41.32.052(1), 41.40.052(1), 21
and 43.43.310(1) as those sections existed between July 1, 1987, and 22
July 28, 1991, the department of retirement systems shall make direct 23
payments of benefits to a spouse or ex spouse pursuant to court 24
orders or decrees entered before July 1, 1987, that complied with all 25
the requirements in RCW 2.10.180(1), 2.12.090(2), ((41.26.180)) 26
41.26.053(3), section 310(3) of this act, 41.32.052(3), 41.40.052(3), 27
43.43.310(2), and 41.04.310 through 41.04.330, as such requirements 28
existed before July 1, 1987. The department shall be responsible for 29
making direct payments only if the decree or court order expressly 30
orders the department to make direct payments to the spouse or ex 31
spouse and specifies a sum certain or percentage amount of the 32
benefit payments to be made to the spouse or ex spouse.33
(2) The department of retirement systems shall notify a spouse or 34
ex spouse who, pursuant to a mandatory benefits assignment order 35
entered between July 1, 1987, and July 28, 1991, is receiving 36
benefits in satisfaction of a court-ordered property division, that 37
he or she is entitled to receive direct payments of a court-ordered 38
property division pursuant to RCW 41.50.670 if the dissolution order 39
p. 133 HB 2034
fully complies or is modified to fully comply with the requirements 1
of RCW 41.50.670 through 41.50.720 and, as applicable, RCW 2.10.180, 2
2.12.090, ((41.26.180)) 41.26.053, section 310 of this act, 3
41.32.052, 41.40.052, 43.43.310, and 26.09.138. The department shall 4
send notice in writing as soon as reasonably feasible but no later 5
than ninety days after July 28, 1991. The department shall also send 6
notice to the obligor member spouse. 7
Sec. 460. RCW 41.50.670 and 2004 c 242 s 51 are each amended to 8
read as follows: 9
(1) Nothing in this chapter regarding mandatory assignment of 10
benefits to enforce a spousal maintenance obligation shall abridge 11
the right of an obligee to direct payments of retirement benefits to 12
satisfy a property division obligation ordered pursuant to a court 13
decree of dissolution or legal separation or any court order or 14
court-approved property settlement agreement incident to any court 15
decree of dissolution or legal separation as provided in RCW 16
2.10.180, 2.12.090, 41.26.053, ((41.26.162,)) section 310 or 330 of 17
this act, 41.32.052, 41.35.100, 41.34.070(4), 41.40.052, 43.43.310, 18
41.37.090, or 26.09.138, as those statutes existed before July 1, 19
1987, and as those statutes exist on and after July 28, 1991. The 20
department shall pay benefits under this chapter in a lump sum or as 21
a portion of periodic retirement payments as expressly provided by 22
the dissolution order. A dissolution order may not order the 23
department to pay a periodic retirement payment or lump sum unless 24
that payment is specifically authorized under the provisions of 25
chapter 2.10, 2.12, 41.26, 41.--- (the new chapter created in section 26
504 of this act), 41.32, 41.35, 41.34, 41.40, 41.37, or 43.43 RCW, as 27
applicable. 28
(2) The department shall pay directly to an obligee the amount of 29
periodic retirement payments or lump sum payment, as appropriate, 30
specified in the dissolution order if the dissolution order filed 31
with the department pursuant to subsection (1) of this section 32
includes a provision that states in the following form:33
If . . . . . . (the obligor) receives periodic retirement 34
payments as defined in RCW 41.50.500, the department of retirement 35
systems shall pay to . . . . . . (the obligee) . . . . . . dollars 36
from such payments or . . . percent of such payments. If the 37
obligor's debt is expressed as a percentage of his or her periodic 38
retirement payment and the obligee does not have a survivorship 39
p. 134 HB 2034
interest in the obligor's benefit, the amount received by the obligee 1
shall be the percentage of the periodic retirement payment that the 2
obligor would have received had he or she selected a standard 3
allowance. 4
If . . . . . . (the obligor) requests or has requested a 5
withdrawal of accumulated contributions as defined in RCW 41.50.500, 6
or becomes eligible for a lump sum death benefit, the department of 7
retirement systems shall pay to . . . . . . (the obligee) . . . . . . 8
dollars plus interest at the rate paid by the department of 9
retirement systems on member contributions. Such interest to accrue 10
from the date of this order's entry with the court of record.11
(3) This section does not require a member to select a standard 12
allowance upon retirement nor does it require the department to 13
recalculate the amount of a retiree's periodic retirement payment 14
based on a change in survivor option. 15
(4) A court order under this section may not order the department 16
to pay more than seventy-five percent of an obligor's periodic 17
retirement payment to an obligee. 18
(5) Persons whose court decrees were entered between July 1, 19
1987, and July 28, 1991, shall also be entitled to receive direct 20
payments of retirement benefits to satisfy court-ordered property 21
divisions if the dissolution orders comply or are modified to comply 22
with this section and RCW 41.50.680 through 41.50.720 and, as 23
applicable, RCW 2.10.180, 2.12.090, 41.26.053, section 310 of this 24
act, 41.32.052, 41.35.100, 41.34.070, 41.40.052, 43.43.310, 25
41.37.090, and 26.09.138. 26
(6) The obligee must file a copy of the dissolution order with 27
the department within ninety days of that order's entry with the 28
court of record. 29
(7) A division of benefits pursuant to a dissolution order under 30
this section shall be based upon the obligor's gross benefit prior to 31
any deductions. If the department is required to withhold a portion 32
of the member's benefit pursuant to 26 U.S.C. Sec. 3402 and the sum 33
of that amount plus the amount owed to the obligee exceeds the total 34
benefit, the department shall satisfy the withholding requirements 35
under 26 U.S.C. Sec. 3402 and then pay the remainder to the obligee. 36
The provisions of this subsection do not apply to amounts withheld 37
pursuant to 26 U.S.C. Sec. 3402(i). 38
p. 135 HB 2034
Sec. 461. RCW 41.50.700 and 2003 c 294 s 12 are each amended to 1
read as follows: 2
(1) Except under subsection (3) of this section and RCW 3
41.26.460(5), 41.32.530(5), 41.32.785(5), 41.32.851(4), 41.35.220(4), 4
41.40.188(5), 41.40.660(5), 41.40.845(4), 43.43.271(4), and 5
41.34.080, the department's obligation to provide direct payment of a 6
property division obligation to an obligee under RCW 41.50.670 shall 7
cease upon the death of the obligee or upon the death of the obligor, 8
whichever comes first. However, if an obligor dies and is eligible 9
for a lump sum death benefit, the department shall be obligated to 10
provide direct payment to the obligee of all or a portion of the 11
withdrawal of accumulated contributions pursuant to a court order 12
that complies with RCW 41.50.670. 13
(2) The direct payment of a property division obligation to an 14
obligee under RCW 41.50.670 shall be paid as a deduction from the 15
member's periodic retirement payment. An obligee may not direct the 16
department to withhold any funds from such payment.17
(3) The department's obligation to provide direct payment to a 18
nonmember ex spouse from a preretirement divorce meeting the criteria 19
of RCW 41.26.162(2) or 43.43.270(2) may continue for the life of the 20
member's surviving spouse qualifying for benefits under RCW 21
((41.26.160, 41.26.161, or )) 43.43.270(2) or section 328 or 329 of 22
this act. Upon the death of the member's surviving spouse qualifying 23
for benefits under RCW ((41.26.160, 41.26.161, or )) 43.43.270(2) or 24
section 328 or 329 of this act , the department's obligation under 25
this subsection shall cease. The department's obligation to provide 26
direct payment to a nonmember ex spouse qualifying for a continued 27
split benefit payment under RCW 41.26.162(3) shall continue for the 28
life of that nonmember ex spouse. 29
Sec. 462. RCW 41.56.030 and 2024 c 124 s 1 are each amended to 30
read as follows: 31
As used in this chapter: 32
(1) "Adult family home provider" means a provider as defined in 33
RCW 70.128.010 who receives payments from the medicaid and state-34
funded long-term care programs. 35
(2) "Bargaining representative" means any lawful organization 36
which has as one of its primary purposes the representation of 37
employees in their employment relations with employers.38
p. 136 HB 2034
(3) "Child care subsidy" means a payment from the state through a 1
child care subsidy program established pursuant to RCW 74.12.340, 45 2
C.F.R. Sec. 98.1 through 98.17, or any successor program.3
(4) "Collective bargaining" means the performance of the mutual 4
obligations of the public employer and the exclusive bargaining 5
representative to meet at reasonable times, to confer and negotiate 6
in good faith, and to execute a written agreement with respect to 7
grievance procedures, subject to RCW 41.58.070, and collective 8
negotiations on personnel matters, including wages, hours, and 9
working conditions, which may be peculiar to an appropriate 10
bargaining unit of such public employer, except that by such 11
obligation neither party shall be compelled to agree to a proposal or 12
be required to make a concession unless otherwise provided in this 13
chapter. 14
(5) "Commission" means the public employment relations 15
commission. 16
(6) "Executive director" means the executive director of the 17
commission. 18
(7) "Family child care provider" means a person who: (a) Provides 19
regularly scheduled care for a child or children in the home of the 20
provider or in the home of the child or children for periods of less 21
than twenty-four hours or, if necessary due to the nature of the 22
parent's work, for periods equal to or greater than twenty-four 23
hours; (b) receives child care subsidies; and (c) under chapter 24
43.216 RCW, is either licensed by the state or is exempt from 25
licensing. 26
(8) "Fish and wildlife officer" means a fish and wildlife officer 27
as defined in RCW 77.08.010 who ranks below lieutenant and includes 28
officers, detectives, and sergeants of the department of fish and 29
wildlife. 30
(9) "Individual provider" means an individual provider as defined 31
in RCW 74.39A.240(3) who, solely for the purposes of collective 32
bargaining, is a public employee as provided in RCW 74.39A.270.33
(10) "Institution of higher education" means the University of 34
Washington, Washington State University, Central Washington 35
University, Eastern Washington University, Western Washington 36
University, The Evergreen State College, and the various state 37
community colleges. 38
(11)(a) "Language access provider" means any independent 39
contractor who provides spoken language interpreter services, whether 40
p. 137 HB 2034
paid by a broker, language access agency, or the respective 1
department: 2
(i) For department of social and health services appointments, 3
department of children, youth, and families appointments, medicaid 4
enrollee appointments, or who provided these services on or after 5
January 1, 2011, and before June 10, 2012; 6
(ii) For department of labor and industries authorized medical 7
and vocational providers who provided these services on or after 8
January 1, 2019; or 9
(iii) For state agencies who provided these services on or after 10
January 1, 2019. 11
(b) "Language access provider" does not mean a manager or 12
employee of a broker or a language access agency. 13
(12) "Public employee" means any employee of a public employer 14
except any person (a) elected by popular vote, or (b) appointed to 15
office pursuant to statute, ordinance or resolution for a specified 16
term of office as a member of a multimember board, commission, or 17
committee, whether appointed by the executive head or body of the 18
public employer, or (c) whose duties as deputy, administrative 19
assistant or secretary necessarily imply a confidential relationship 20
to (i) the executive head or body of the applicable bargaining unit, 21
or (ii) any person elected by popular vote, or (iii) any person 22
appointed to office pursuant to statute, ordinance or resolution for 23
a specified term of office as a member of a multimember board, 24
commission, or committee, whether appointed by the executive head or 25
body of the public employer, or (d) who is a court commissioner or a 26
court magistrate of superior court, district court, or a department 27
of a district court organized under chapter 3.46 RCW, or (e) who is a 28
personal assistant to a district court judge, superior court judge, 29
or court commissioner. For the purpose of (e) of this subsection, no 30
more than one assistant for each judge or commissioner may be 31
excluded from a bargaining unit. 32
(13) "Public employer" means any officer, board, commission, 33
council, or other person or body acting on behalf of any public body 34
governed by this chapter, or any subdivision of such public body. For 35
the purposes of this section, the public employer of district court 36
or superior court employees for wage-related matters is the 37
respective county legislative authority, or person or body acting on 38
behalf of the legislative authority, and the public employer for 39
nonwage-related matters is the judge or judge's designee of the 40
p. 138 HB 2034
respective district court or superior court. For the purposes of this 1
chapter, public employer does not include a comprehensive cancer 2
center participating in a collaborative arrangement as defined in RCW 3
28B.10.930 that is operated in conformance with RCW 28B.10.930.4
(14) "Uniformed personnel" means: (a) Law enforcement officers as 5
defined in RCW 41.26.030 or section 303 of this act employed by the 6
governing body of any city or town with a population of two thousand 7
five hundred or more and law enforcement officers employed by the 8
governing body of any county with a population of ten thousand or 9
more; (b) correctional employees who are uniformed and nonuniformed, 10
commissioned and noncommissioned security personnel employed in a 11
jail as defined in RCW 70.48.020(9), by a county with a population of 12
seventy thousand or more, in a correctional facility created under 13
RCW 70.48.095, or in a detention facility created under chapter 13.40 14
RCW that is located in a county with a population over one million 15
five hundred thousand, and who are trained for and charged with the 16
responsibility of controlling and maintaining custody of inmates in 17
the jail and safeguarding inmates from other inmates; (c) general 18
authority Washington peace officers as defined in RCW 10.93.020 19
employed by a port district in a county with a population of one 20
million or more; (d) security forces established under RCW 43.52.520; 21
(e) firefighters as that term is defined in RCW 41.26.030 or section 22
303 of this act ; (f) employees of a port district in a county with a 23
population of one million or more whose duties include crash fire 24
rescue or other firefighting duties; (g) employees of fire 25
departments of public employers who dispatch exclusively either fire 26
or emergency medical services, or both; (h) employees in the several 27
classes of advanced life support technicians, as defined in RCW 28
18.71.200, who are employed by a public employer; (i) court marshals 29
of any county who are employed by, trained for, and commissioned by 30
the county sheriff and charged with the responsibility of enforcing 31
laws, protecting and maintaining security in all county-owned or 32
contracted property, and performing any other duties assigned to them 33
by the county sheriff or mandated by judicial order; or (j) public 34
safety telecommunicators, as defined in RCW 38.60.020, employed by a 35
public employer. This subsection (14)(j) does not apply to public 36
safety telecommunicators employed by the Washington state patrol or 37
any other state agency. 38
p. 139 HB 2034
Sec. 463. RCW 43.79A.040 and 2024 c 327 s 16 and 2024 c 168 s 10 1
are each reenacted and amended to read as follows: 2
(1) Money in the treasurer's trust fund may be deposited, 3
invested, and reinvested by the state treasurer in accordance with 4
RCW 43.84.080 in the same manner and to the same extent as if the 5
money were in the state treasury, and may be commingled with moneys 6
in the state treasury for cash management and cash balance purposes.7
(2) All income received from investment of the treasurer's trust 8
fund must be set aside in an account in the treasury trust fund to be 9
known as the investment income account. 10
(3) The investment income account may be utilized for the payment 11
of purchased banking services on behalf of treasurer's trust funds 12
including, but not limited to, depository, safekeeping, and 13
disbursement functions for the state treasurer or affected state 14
agencies. The investment income account is subject in all respects to 15
chapter 43.88 RCW, but no appropriation is required for payments to 16
financial institutions. Payments must occur prior to distribution of 17
earnings set forth in subsection (4) of this section.18
(4)(a) Monthly, the state treasurer must distribute the earnings 19
credited to the investment income account to the state general fund 20
except under (b), (c), and (d) of this subsection.21
(b) The following accounts and funds must receive their 22
proportionate share of earnings based upon each account's or fund's 23
average daily balance for the period: The 24/7 sobriety account, the 24
Washington promise scholarship account, the Gina Grant Bull memorial 25
legislative page scholarship account, the Rosa Franklin legislative 26
internship program scholarship account, the Washington advanced 27
college tuition payment program account, the Washington college 28
savings program account, the accessible communities account, the 29
Washington achieving a better life experience program account, the 30
Washington career and college pathways innovation challenge program 31
account, the community and technical college innovation account, the 32
agricultural local fund, the American Indian scholarship endowment 33
fund, the behavioral health loan repayment program account, the Billy 34
Frank Jr. national statuary hall collection fund, the foster care 35
scholarship endowment fund, the foster care endowed scholarship trust 36
fund, the contract harvesting revolving account, the Washington state 37
combined fund drive account, the commemorative works account, the 38
county 911 excise tax account, the county road administration board 39
emergency loan account, the toll collection account, the 40
p. 140 HB 2034
developmental disabilities endowment trust fund, the energy account, 1
the energy facility site evaluation council account, the fair fund, 2
the family and medical leave insurance account, the Fern Lodge 3
maintenance account, the fish and wildlife federal lands revolving 4
account, the natural resources federal lands revolving account, the 5
food animal veterinarian conditional scholarship account, the forest 6
health revolving account, the fruit and vegetable inspection account, 7
the educator conditional scholarship account, the game farm 8
alternative account, the GET ready for math and science scholarship 9
account, the Washington global health technologies and product 10
development account, the grain inspection revolving fund, the 11
Washington history day account, the industrial insurance rainy day 12
fund, the juvenile accountability incentive account, the law 13
enforcement officers' and firefighters' plan 2 expense fund, the 14
local tourism promotion account, the low-income home rehabilitation 15
account, the medication for people living with HIV rebate revenue 16
account, the homeowner recovery account, the multiagency permitting 17
team account, the northeast Washington wolf-livestock management 18
account, the pollution liability insurance program trust account, the 19
produce railcar pool account, the public use general aviation airport 20
loan revolving account, the regional transportation investment 21
district account, the restated law enforcement officers' and 22
firefighters' defined benefit retirement fund, the rural 23
rehabilitation account, the Washington sexual assault kit account, 24
the stadium and exhibition center account, the youth athletic 25
facility account, the self-insurance revolving fund, the children's 26
trust fund, the Washington horse racing commission Washington bred 27
owners' bonus fund and breeder awards account, the Washington horse 28
racing commission class C purse fund account, the individual 29
development account program account, the Washington horse racing 30
commission operating account, the life sciences discovery fund, the 31
Washington state library-archives building account, the reduced 32
cigarette ignition propensity account, the center for deaf and hard 33
of hearing youth account, the school for the blind account, the 34
Millersylvania park trust fund, the public employees' and retirees' 35
insurance reserve fund, the school employees' benefits board 36
insurance reserve fund, the public employees' and retirees' insurance 37
account, the school employees' insurance account, the long-term 38
services and supports trust account, the radiation perpetual 39
maintenance fund, the Indian health improvement reinvestment account, 40
p. 141 HB 2034
the department of licensing tuition recovery trust fund, the student 1
achievement council tuition recovery trust fund, the tuition recovery 2
trust fund, the industrial insurance premium refund account, the 3
mobile home park relocation fund, the natural resources deposit fund, 4
the Washington state health insurance pool account, the federal 5
forest revolving account, the Washington saves administrative 6
treasury trust account, and the library operations account.7
(c) The following accounts and funds must receive 80 percent of 8
their proportionate share of earnings based upon each account's or 9
fund's average daily balance for the period: The advance right-of-way 10
revolving fund, the advanced environmental mitigation revolving 11
account, the federal narcotics asset forfeitures account, the high 12
occupancy vehicle account, the local rail service assistance account, 13
and the miscellaneous transportation programs account.14
(d) Any state agency that has independent authority over accounts 15
or funds not statutorily required to be held in the custody of the 16
state treasurer that deposits funds into a fund or account in the 17
custody of the state treasurer pursuant to an agreement with the 18
office of the state treasurer shall receive its proportionate share 19
of earnings based upon each account's or fund's average daily balance 20
for the period. 21
(5) In conformance with Article II, section 37 of the state 22
Constitution, no trust accounts or funds shall be allocated earnings 23
without the specific affirmative directive of this section.24
Sec. 464. RCW 43.79A.040 and 2024 c 327 s 17 and 2024 c 168 s 11 25
are each reenacted and amended to read as follows:26
(1) Money in the treasurer's trust fund may be deposited, 27
invested, and reinvested by the state treasurer in accordance with 28
RCW 43.84.080 in the same manner and to the same extent as if the 29
money were in the state treasury, and may be commingled with moneys 30
in the state treasury for cash management and cash balance purposes.31
(2) All income received from investment of the treasurer's trust 32
fund must be set aside in an account in the treasury trust fund to be 33
known as the investment income account. 34
(3) The investment income account may be utilized for the payment 35
of purchased banking services on behalf of treasurer's trust funds 36
including, but not limited to, depository, safekeeping, and 37
disbursement functions for the state treasurer or affected state 38
agencies. The investment income account is subject in all respects to 39
p. 142 HB 2034
chapter 43.88 RCW, but no appropriation is required for payments to 1
financial institutions. Payments must occur prior to distribution of 2
earnings set forth in subsection (4) of this section.3
(4)(a) Monthly, the state treasurer must distribute the earnings 4
credited to the investment income account to the state general fund 5
except under (b), (c), and (d) of this subsection. 6
(b) The following accounts and funds must receive their 7
proportionate share of earnings based upon each account's or fund's 8
average daily balance for the period: The 24/7 sobriety account, the 9
Washington promise scholarship account, the Gina Grant Bull memorial 10
legislative page scholarship account, the Rosa Franklin legislative 11
internship program scholarship account, the Washington advanced 12
college tuition payment program account, the Washington college 13
savings program account, the accessible communities account, the 14
Washington achieving a better life experience program account, the 15
Washington career and college pathways innovation challenge program 16
account, the community and technical college innovation account, the 17
agricultural local fund, the American Indian scholarship endowment 18
fund, the behavioral health loan repayment program account, the Billy 19
Frank Jr. national statuary hall collection fund, the foster care 20
scholarship endowment fund, the foster care endowed scholarship trust 21
fund, the contract harvesting revolving account, the Washington state 22
combined fund drive account, the commemorative works account, the 23
county 911 excise tax account, the county road administration board 24
emergency loan account, the toll collection account, the 25
developmental disabilities endowment trust fund, the energy account, 26
the energy facility site evaluation council account, the fair fund, 27
the family and medical leave insurance account, the Fern Lodge 28
maintenance account, the fish and wildlife federal lands revolving 29
account, the natural resources federal lands revolving account, the 30
food animal veterinarian conditional scholarship account, the forest 31
health revolving account, the fruit and vegetable inspection account, 32
the educator conditional scholarship account, the game farm 33
alternative account, the GET ready for math and science scholarship 34
account, the Washington global health technologies and product 35
development account, the grain inspection revolving fund, the 36
Washington history day account, the industrial insurance rainy day 37
fund, the juvenile accountability incentive account, the law 38
enforcement officers' and firefighters' plan 2 expense fund, the 39
local tourism promotion account, the low-income home rehabilitation 40
p. 143 HB 2034
account, the medication for people living with HIV rebate revenue 1
account, the homeowner recovery account, the multiagency permitting 2
team account, the northeast Washington wolf-livestock management 3
account, the produce railcar pool account, the public use general 4
aviation airport loan revolving account, the regional transportation 5
investment district account, the restated law enforcement officers' 6
and firefighters' defined benefit retirement fund, the rural 7
rehabilitation account, the Washington sexual assault kit account, 8
the stadium and exhibition center account, the youth athletic 9
facility account, the self-insurance revolving fund, the children's 10
trust fund, the Washington horse racing commission Washington bred 11
owners' bonus fund and breeder awards account, the Washington horse 12
racing commission class C purse fund account, the individual 13
development account program account, the Washington horse racing 14
commission operating account, the life sciences discovery fund, the 15
Washington state library-archives building account, the reduced 16
cigarette ignition propensity account, the center for deaf and hard 17
of hearing youth account, the school for the blind account, the 18
Millersylvania park trust fund, the public employees' and retirees' 19
insurance reserve fund, the school employees' benefits board 20
insurance reserve fund, the public employees' and retirees' insurance 21
account, the school employees' insurance account, the long-term 22
services and supports trust account, the radiation perpetual 23
maintenance fund, the Indian health improvement reinvestment account, 24
the department of licensing tuition recovery trust fund, the student 25
achievement council tuition recovery trust fund, the tuition recovery 26
trust fund, the industrial insurance premium refund account, the 27
mobile home park relocation fund, the natural resources deposit fund, 28
the Washington state health insurance pool account, the federal 29
forest revolving account, the Washington saves administrative 30
treasury trust account, and the library operations account.31
(c) The following accounts and funds must receive 80 percent of 32
their proportionate share of earnings based upon each account's or 33
fund's average daily balance for the period: The advance right-of-way 34
revolving fund, the advanced environmental mitigation revolving 35
account, the federal narcotics asset forfeitures account, the high 36
occupancy vehicle account, the local rail service assistance account, 37
and the miscellaneous transportation programs account.38
(d) Any state agency that has independent authority over accounts 39
or funds not statutorily required to be held in the custody of the 40
p. 144 HB 2034
state treasurer that deposits funds into a fund or account in the 1
custody of the state treasurer pursuant to an agreement with the 2
office of the state treasurer shall receive its proportionate share 3
of earnings based upon each account's or fund's average daily balance 4
for the period. 5
(5) In conformance with Article II, section 37 of the state 6
Constitution, no trust accounts or funds shall be allocated earnings 7
without the specific affirmative directive of this section.8
Sec. 465. RCW 43.84.092 and 2024 c 210 s 5 and 2024 c 168 s 13 9
are each reenacted and amended to read as follows:10
(1) All earnings of investments of surplus balances in the state 11
treasury shall be deposited to the treasury income account, which 12
account is hereby established in the state treasury.13
(2) The treasury income account shall be utilized to pay or 14
receive funds associated with federal programs as required by the 15
federal cash management improvement act of 1990. The treasury income 16
account is subject in all respects to chapter 43.88 RCW, but no 17
appropriation is required for refunds or allocations of interest 18
earnings required by the cash management improvement act. Refunds of 19
interest to the federal treasury required under the cash management 20
improvement act fall under RCW 43.88.180 and shall not require 21
appropriation. The office of financial management shall determine the 22
amounts due to or from the federal government pursuant to the cash 23
management improvement act. The office of financial management may 24
direct transfers of funds between accounts as deemed necessary to 25
implement the provisions of the cash management improvement act, and 26
this subsection. Refunds or allocations shall occur prior to the 27
distributions of earnings set forth in subsection (4) of this 28
section. 29
(3) Except for the provisions of RCW 43.84.160, the treasury 30
income account may be utilized for the payment of purchased banking 31
services on behalf of treasury funds including, but not limited to, 32
depository, safekeeping, and disbursement functions for the state 33
treasury and affected state agencies. The treasury income account is 34
subject in all respects to chapter 43.88 RCW, but no appropriation is 35
required for payments to financial institutions. Payments shall occur 36
prior to distribution of earnings set forth in subsection (4) of this 37
section. 38
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(4) Monthly, the state treasurer shall distribute the earnings 1
credited to the treasury income account. The state treasurer shall 2
credit the general fund with all the earnings credited to the 3
treasury income account except: 4
(a) The following accounts and funds shall receive their 5
proportionate share of earnings based upon each account's and fund's 6
average daily balance for the period: The abandoned recreational 7
vehicle disposal account, the aeronautics account, the Alaskan Way 8
viaduct replacement project account, the budget stabilization 9
account, the capital vessel replacement account, the capitol building 10
construction account, the Central Washington University capital 11
projects account, the charitable, educational, penal and reformatory 12
institutions account, the Chehalis basin account, the Chehalis basin 13
taxable account, the clean fuels credit account, the clean fuels 14
transportation investment account, the cleanup settlement account, 15
the climate active transportation account, the climate transit 16
programs account, the Columbia river basin water supply development 17
account, the Columbia river basin taxable bond water supply 18
development account, the Columbia river basin water supply revenue 19
recovery account, the common school construction fund, the community 20
forest trust account, the connecting Washington account, the county 21
arterial preservation account, the county criminal justice assistance 22
account, the covenant homeownership account, the deferred 23
compensation administrative account, the deferred compensation 24
principal account, the department of licensing services account, the 25
department of retirement systems expense account, the developmental 26
disabilities community services account, the diesel idle reduction 27
account, the opioid abatement settlement account, the drinking water 28
assistance account, the administrative subaccount of the drinking 29
water assistance account, the early learning facilities development 30
account, the early learning facilities revolving account, the Eastern 31
Washington University capital projects account, the education 32
construction fund, the education legacy trust account, the election 33
account, the electric vehicle account, the energy freedom account, 34
the energy recovery act account, the essential rail assistance 35
account, The Evergreen State College capital projects account, the 36
fair start for kids account, the family medicine workforce 37
development account, the ferry bond retirement fund, the fish, 38
wildlife, and conservation account, the freight mobility investment 39
account, the freight mobility multimodal account, the grade crossing 40
p. 146 HB 2034
protective fund, the higher education retirement plan supplemental 1
benefit fund, the Washington student loan account, the highway bond 2
retirement fund, the highway infrastructure account, the highway 3
safety fund, the hospital safety net assessment fund, the Interstate 4
5 bridge replacement project account, the Interstate 405 and state 5
route number 167 express toll lanes account, the judges' retirement 6
account, the judicial retirement administrative account, the judicial 7
retirement principal account, the limited fish and wildlife account, 8
the local leasehold excise tax account, the local real estate excise 9
tax account, the local sales and use tax account, the marine 10
resources stewardship trust account, the medical aid account, the 11
money-purchase retirement savings administrative account, the money-12
purchase retirement savings principal account, the motor vehicle 13
fund, the motorcycle safety education account, the move ahead WA 14
account, the move ahead WA flexible account, the multimodal 15
transportation account, the multiuse roadway safety account, the 16
municipal criminal justice assistance account, the oyster reserve 17
land account, the pension funding stabilization account, the 18
perpetual surveillance and maintenance account, the pilotage account, 19
the pollution liability insurance agency underground storage tank 20
revolving account, the public employees' retirement system plan 1 21
account, the public employees' retirement system combined plan 2 and 22
plan 3 account, the public facilities construction loan revolving 23
account, the public health supplemental account, the public works 24
assistance account, the Puget Sound capital construction account, the 25
Puget Sound ferry operations account, the Puget Sound Gateway 26
facility account, the Puget Sound taxpayer accountability account, 27
the real estate appraiser commission account, the recreational 28
vehicle account, the regional mobility grant program account, the 29
reserve officers' relief and pension principal fund, the resource 30
management cost account, the rural arterial trust account, the rural 31
mobility grant program account, the rural Washington loan fund, the 32
second injury fund, the sexual assault prevention and response 33
account, the site closure account, the skilled nursing facility 34
safety net trust fund, the small city pavement and sidewalk account, 35
the special category C account, the special wildlife account, the 36
state hazard mitigation revolving loan account, the state investment 37
board expense account, the state investment board commingled trust 38
fund accounts, the state patrol highway account, the state 39
reclamation revolving account, the state route number 520 civil 40
p. 147 HB 2034
penalties account, the state route number 520 corridor account, the 1
statewide broadband account, the statewide tourism marketing account, 2
the supplemental pension account, the Tacoma Narrows toll bridge 3
account, the teachers' retirement system plan 1 account, the 4
teachers' retirement system combined plan 2 and plan 3 account, the 5
tobacco prevention and control account, the tobacco settlement 6
account, the toll facility bond retirement account, the 7
transportation 2003 account (nickel account), the transportation 8
equipment fund, the JUDY transportation future funding program 9
account, the transportation improvement account, the transportation 10
improvement board bond retirement account, the transportation 11
infrastructure account, the transportation partnership account, the 12
traumatic brain injury account, the tribal opioid prevention and 13
treatment account, the University of Washington bond retirement fund, 14
the University of Washington building account, the voluntary cleanup 15
account, the volunteer firefighters' relief and pension principal 16
fund, the volunteer firefighters' and reserve officers' 17
administrative fund, the vulnerable roadway user education account, 18
the Washington judicial retirement system account, ((the Washington 19
law enforcement officers' and firefighters' system plan 1 retirement 20
account,)) the Washington law enforcement officers' and firefighters' 21
system plan 2 retirement account, the Washington public safety 22
employees' plan 2 retirement account, the Washington school 23
employees' retirement system combined plan 2 and 3 account, the 24
Washington state patrol retirement account, the Washington State 25
University building account, the Washington State University bond 26
retirement fund, the water pollution control revolving administration 27
account, the water pollution control revolving fund, the Western 28
Washington University capital projects account, the Yakima integrated 29
plan implementation account, the Yakima integrated plan 30
implementation revenue recovery account, and the Yakima integrated 31
plan implementation taxable bond account. Earnings derived from 32
investing balances of the agricultural permanent fund, the normal 33
school permanent fund, the permanent common school fund, the 34
scientific permanent fund, and the state university permanent fund 35
shall be allocated to their respective beneficiary accounts.36
(b) Any state agency that has independent authority over accounts 37
or funds not statutorily required to be held in the state treasury 38
that deposits funds into a fund or account in the state treasury 39
pursuant to an agreement with the office of the state treasurer shall 40
p. 148 HB 2034
receive its proportionate share of earnings based upon each account's 1
or fund's average daily balance for the period. 2
(5) In conformance with Article II, section 37 of the state 3
Constitution, no treasury accounts or funds shall be allocated 4
earnings without the specific affirmative directive of this section.5
Sec. 466. RCW 46.52.130 and 2023 c 118 s 1 are each amended to 6
read as follows: 7
Upon a proper request, the department may only furnish 8
information contained in an abstract of a person's driving record as 9
permitted under this section. 10
(1) Contents of abstract of driving record. An abstract of a 11
person's driving record, whenever possible, must include:12
(a) An enumeration of motor vehicle accidents in which the person 13
was driving, including: 14
(i) The total number of vehicles involved; 15
(ii) Whether the vehicles were legally parked or moving;16
(iii) Whether the vehicles were occupied at the time of the 17
accident; and 18
(iv) Whether the accident resulted in a fatality;19
(b) Any reported convictions, forfeitures of bail, or findings 20
that an infraction was committed based upon a violation of any motor 21
vehicle law; 22
(c) The status of the person's driving privilege in this state; 23
and 24
(d) Any reports of failure to appear in response to a traffic 25
citation or failure to respond to a notice of infraction served upon 26
the named individual by an arresting officer. 27
(2) Release of abstract of driving record. Unless otherwise 28
required in this section, the release of an abstract does not require 29
a signed statement by the subject of the abstract. An abstract of a 30
person's driving record may be furnished to the following persons or 31
entities: 32
(a) Named individuals. (i) An abstract of the full driving record 33
maintained by the department may be furnished to the individual named 34
in the abstract. 35
(ii) Nothing in this section prevents a court from providing a 36
copy of the driver's abstract to the individual named in the abstract 37
or that named individual's attorney, provided that the named 38
individual has a pending or open infraction or criminal case in that 39
p. 149 HB 2034
court. A pending case includes criminal cases that have not reached a 1
disposition by plea, stipulation, trial, or amended charge. An open 2
infraction or criminal case includes cases on probation, payment 3
agreement or subject to, or in collections. A probation clerk or 4
probation officer employed by the court may also provide a copy of 5
the driver's abstract to a treatment agency in accordance with (f) of 6
this subsection. Courts may charge a reasonable fee for the 7
production and copying of the abstract for the individual unless the 8
person is indigent as defined in RCW 10.101.010. 9
(b) Employers or prospective employers. (i) An abstract of the 10
full driving record maintained by the department may be furnished to 11
an employer or prospective employer or agents acting on behalf of an 12
employer or prospective employer of the named individual for purposes 13
related to driving by the individual as a condition of employment or 14
otherwise at the direction of the employer. 15
(ii) The department may provide employers or their agents a 16
three-year insurance carrier driving record of existing employees 17
only for the purposes of sharing the driving record with its 18
insurance carrier for underwriting. Employers may not provide the 19
employees' full driving records to its insurance carrier.20
(iii) An abstract of the full driving record maintained by the 21
department may be furnished to an employer or prospective employer or 22
the agent(s) acting on behalf of an employer or prospective employer 23
of the named individual for purposes unrelated to driving by the 24
individual when a driving record is required by federal or state law, 25
or the employee or prospective employee will be handling heavy 26
equipment or machinery. 27
(iv) Release of an abstract of the driving record of an employee 28
or prospective employee requires a statement signed by: (A) The 29
employee or prospective employee that authorizes the release of the 30
record; and (B) the employer attesting that the information is 31
necessary for employment purposes related to driving by the 32
individual as a condition of employment or otherwise at the direction 33
of the employer. If the employer or prospective employer authorizes 34
agents to obtain this information on their behalf, this must be noted 35
in the statement. The statement must also note that any information 36
contained in the abstract related to an adjudication that is subject 37
to a court order sealing the juvenile record of an employee or 38
prospective employee may not be used by the employer or prospective 39
employer, or an agent authorized to obtain this information on their 40
p. 150 HB 2034
behalf, unless required by federal regulation or law. The employer or 1
prospective employer must afford the employee or prospective employee 2
an opportunity to demonstrate that an adjudication contained in the 3
abstract is subject to a court order sealing the juvenile record.4
(v) Upon request of the person named in the abstract provided 5
under this subsection, and upon that same person furnishing copies of 6
court records ruling that the person was not at fault in a motor 7
vehicle accident, the department must indicate on any abstract 8
provided under this subsection that the person was not at fault in 9
the motor vehicle accident. 10
(vi) No employer or prospective employer, nor any agents of an 11
employer or prospective employer, may use information contained in 12
the abstract related to an adjudication that is subject to a court 13
order sealing the juvenile record of an employee or prospective 14
employee for any purpose unless required by federal regulation or 15
law. The employee or prospective employee must furnish a copy of the 16
court order sealing the juvenile record to the employer or 17
prospective employer, or the agents of the employer or prospective 18
employer, as may be required to ensure the application of this 19
subsection. 20
(c) Volunteer organizations. (i) An abstract of the full driving 21
record maintained by the department may be furnished to a volunteer 22
organization or an agent for a volunteer organization for which the 23
named individual has submitted an application for a position that 24
would require driving by the individual at the direction of the 25
volunteer organization. 26
(ii) Release of an abstract of the driving record of a 27
prospective volunteer requires a statement signed by: (A) The 28
prospective volunteer that authorizes the release of the record; and 29
(B) the volunteer organization attesting that the information is 30
necessary for purposes related to driving by the individual at the 31
direction of the volunteer organization. If the volunteer 32
organization authorizes an agent to obtain this information on their 33
behalf, this must be noted in the statement. 34
(d) Transit authorities. An abstract of the full driving record 35
maintained by the department may be furnished to an employee or 36
agents of a transit authority checking prospective or existing 37
volunteer vanpool drivers for insurance and risk management needs.38
(e) Insurance carriers. (i) An abstract of the driving record 39
maintained by the department covering the period of not more than the 40
p. 151 HB 2034
last three years may be furnished to an insurance company or its 1
agents: 2
(A) That has motor vehicle or life insurance in effect covering 3
the named individual; 4
(B) To which the named individual has applied; or5
(C) That has insurance in effect covering the employer or a 6
prospective employer of the named individual. 7
(ii) The abstract provided to the insurance company must:8
(A) Not contain any information related to actions committed by 9
law enforcement officers or firefighters, as both terms are defined 10
in RCW 41.26.030 or section 303 of this act , or by Washington state 11
patrol officers, while driving official vehicles in the performance 12
of their occupational duty, or by registered tow truck operators as 13
defined in RCW 46.55.010 in the performance of their occupational 14
duties while at the scene of a roadside impound or recovery so long 15
as they are not issued a citation. This does not apply to any 16
situation where the vehicle was used in the commission of a 17
misdemeanor or felony; 18
(B) Include convictions under RCW 46.61.5249 and 46.61.525, 19
except that the abstract must report the convictions only as 20
negligent driving without reference to whether they are for first or 21
second degree negligent driving; and 22
(C) Exclude any deferred prosecution under RCW 10.05.060, except 23
that if a person is removed from a deferred prosecution under RCW 24
10.05.090, the abstract must show the deferred prosecution as well as 25
the removal. 26
(iii) Any policy of insurance may not be canceled, nonrenewed, 27
denied, or have the rate increased on the basis of information 28
regarding an accident included in the abstract of a driving record, 29
unless the policyholder was determined to be at fault.30
(iv) Any insurance company or its agents, for underwriting 31
purposes relating to the operation of commercial motor vehicles, may 32
not use any information contained in the abstract relative to any 33
person's operation of motor vehicles while not engaged in such 34
employment. Any insurance company or its agents, for underwriting 35
purposes relating to the operation of noncommercial motor vehicles, 36
may not use any information contained in the abstract relative to any 37
person's operation of commercial motor vehicles. For the purposes of 38
this subsection, "commercial motor vehicle" has the same meaning as 39
in RCW 46.25.010(6). 40
p. 152 HB 2034
(f) Alcohol/drug assessment or treatment agencies. An abstract of 1
the full driving record maintained by the department may be furnished 2
to an alcohol/drug assessment or treatment agency approved by the 3
department of health to which the named individual has applied or 4
been assigned for evaluation or treatment, for purposes of assisting 5
employees in making a determination as to what level of treatment, if 6
any, is appropriate, and the abstract must: 7
(i) Also include records of alcohol-related offenses, as defined 8
in RCW 46.01.260(2); and 9
(ii) Indicate whether an alcohol-related offense was originally 10
charged as a violation of either RCW 46.61.502 or 46.61.504.11
(g) Attorneys— City attorneys, county prosecuting attorneys, and 12
named individual's attorney of record. An abstract of the full 13
driving record maintained by the department, including whether a 14
recorded violation is an alcohol-related offense, as defined in RCW 15
46.01.260(2), that was originally charged as a violation of either 16
RCW 46.61.502 or 46.61.504, may be furnished to city attorneys, 17
county prosecuting attorneys, or the named individual's attorney of 18
record. City attorneys, county prosecuting attorneys, or the named 19
individual's attorney of record may provide the driving record to 20
alcohol/drug assessment or treatment agencies approved by the 21
department of social and health services to which the named 22
individual has applied or been assigned for evaluation or treatment.23
(h) State colleges, universities, or agencies, or units of local 24
government. An abstract of the full driving record maintained by the 25
department may be furnished to (i) state colleges, universities, or 26
agencies for employment and risk management purposes or (ii) units of 27
local government authorized to self-insure under RCW 48.62.031, or 28
their agents, for employment and risk management purposes. "Unit of 29
local government" includes an insurance pool established under RCW 30
48.62.031. 31
(i) Superintendent of public instruction. (i) An abstract of the 32
full driving record maintained by the department may be furnished to 33
the superintendent of public instruction for review of public school 34
bus driver records. The superintendent or superintendent's designee 35
may discuss information on the driving record with an authorized 36
representative of the employing school district for employment and 37
risk management purposes. 38
p. 153 HB 2034
(ii) The superintendent of public instruction is exempt from 1
paying the fees related to the reviewing of records and the fee 2
required in subsection (5) of this section. 3
(j) State and federal agencies. An abstract of the driving record 4
maintained by the department may be furnished to state and federal 5
agencies, or their agents, in carrying out its functions.6
(k) Transportation network companies. An abstract of the full 7
driving record maintained by the department may be furnished to a 8
transportation network company or its agents acting on its behalf of 9
the named individual for purposes related to driving by the 10
individual as a condition of being a contracted driver.11
(l) Research. (i) The department may furnish driving record data 12
to state agencies and bona fide scientific research organizations. 13
The department may require review and approval by an institutional 14
review board. For the purposes of this subsection, "research" means a 15
planned and systematic sociological, psychological, epidemiological, 16
biomedical, or other scientific investigation carried out by a state 17
agency, or by a scientific research professional associated with a 18
bona fide scientific research organization with an objective to 19
contribute to scientific knowledge, the solution of social and health 20
problems, or the evaluation of public benefit and service programs. 21
This definition excludes methods of record analysis and data 22
collection that are subjective, do not permit replication, and are 23
not designed to yield reliable and valid results. 24
(ii) The state agency, or a scientific research professional 25
associated with a bona fide scientific research organization, are 26
exempt from paying the fees related to the reviewing of records and 27
the fee required in subsection (5) of this section. However, the 28
department may charge a cost-recovery fee for the actual cost of 29
providing the data. 30
(3) Reviewing of driving records. (a) In addition to the methods 31
described herein, the director may enter into a contractual agreement 32
for the purpose of reviewing the driving records of existing 33
employees for changes to the record during specified periods of time. 34
The department shall establish a fee for this service, which must be 35
deposited in the highway safety fund. The fee for this service must 36
be set at a level that does not result in a net revenue loss to the 37
state. Any information provided under this subsection must be treated 38
in the same manner and is subject to the same restrictions as driving 39
record abstracts. 40
p. 154 HB 2034
(b) The department may provide reviewing services to the 1
following entities: 2
(i) Employers for existing employees, or their agents;3
(ii) Transit authorities for current vanpool drivers, or their 4
agents; 5
(iii) Insurance carriers for current policyholders, or their 6
agents; 7
(iv) State colleges, universities, or agencies, or units of local 8
government, or their agents; 9
(v) The office of the superintendent of public instruction for 10
school bus drivers statewide; and 11
(vi) Transportation network companies, or their agents.12
(4) Release to third parties prohibited. (a) Any person or entity 13
receiving an abstract of a person's driving record under subsection 14
(2)(b) through (l) of this section shall use the abstract exclusively 15
for his, her, or its own purposes or as otherwise expressly permitted 16
under this section, and shall not divulge any information contained 17
in the abstract to a third party. 18
(b) The following release of records to third parties are hereby 19
authorized: 20
(i) Employers may divulge driving records to regulatory bodies, 21
as defined by the department by rule, such as the United States 22
department of transportation and the federal motor carrier safety 23
administration. 24
(ii) Employers may divulge a three-year driving record to their 25
insurance carrier for underwriting purposes. 26
(iii) Employers may divulge driving records to contracted motor 27
carrier consultants for the purposes of ensuring driver compliance 28
and risk management. 29
(5) Fees. (a) The director shall collect a $15 fee for each 30
abstract of a person's driving record furnished by the department. 31
After depositing $2 of the driver's abstract fee in the move ahead WA 32
flexible account created in RCW 46.68.520, the remainder shall be 33
distributed as follows: 34
(i) Fifty percent must be deposited in the highway safety fund; 35
and 36
(ii) Fifty percent must be deposited according to RCW 46.68.038.37
(b) Beginning July 1, 2029, the director shall collect an 38
additional $2 fee for each abstract of a person's driving record 39
furnished by the department. The $2 additional driver's abstract fee 40
p. 155 HB 2034
must be deposited in the move ahead WA flexible account created in 1
RCW 46.68.520. 2
(c) City attorneys and county prosecuting attorneys are exempt 3
from paying the fees specified in (a) and (b) of this subsection for 4
an abstract of a person's driving record furnished by the department 5
for use in criminal proceedings. 6
(6) Violation. (a) Any negligent violation of this section is a 7
gross misdemeanor. 8
(b) Any intentional violation of this section is a class C 9
felony. 10
(7) Effective July 1, 2019, the contents of a driving abstract 11
pursuant to this section shall not include any information related to 12
sealed juvenile records unless that information is required by 13
federal law or regulation. 14
Sec. 467. RCW 49.44.160 and 2002 c 155 s 1 are each amended to 15
read as follows: 16
The legislature intends that public employers be prohibited from 17
misclassifying employees, or taking other action to avoid providing 18
or continuing to provide employment-based benefits to which employees 19
are entitled under state law or employer policies or collective 20
bargaining agreements applicable to the employee's correct 21
classification. 22
Chapter 155, Laws of 2002 does not mandate that any public 23
employer provide benefits to actual temporary, seasonal, or part-time 24
employees beyond the benefits to which they are entitled under state 25
law or employer policies or collective bargaining agreements 26
applicable to the employee's correct classification. Public employers 27
may determine eligibility rules for their own benefit plans and may 28
exclude categories of workers such as "temporary" or "seasonal," so 29
long as the definitions and eligibility rules are objective and 30
applied on a consistent basis. Objective standards, such as control 31
over the work and the length of the employment relationship, should 32
determine whether a person is an employee who is entitled to employee 33
benefits, rather than the arbitrary application of labels, such as 34
"temporary" or "contractor." Common law standards should be used to 35
determine whether a person is performing services as an employee, as 36
a contractor, or as part of an agency relationship.37
Chapter 155, Laws of 2002 does not modify any statute or policy 38
regarding the employment of: Public employee retirees who are hired 39
p. 156 HB 2034
for postretirement employment as provided for in chapter 41.26, 1
41.--- (the new chapter created in section 504 of this act), 41.32, 2
41.35, or 41.40 RCW or who work as contractors; or enrolled students 3
who receive employment as student employees or as part of their 4
education or financial aid. 5
Sec. 468. RCW 51.08.142 and 2023 c 370 s 1 are each amended to 6
read as follows: 7
(1) Except as provided in subsections (2) and (3) of this 8
section, the department shall adopt a rule pursuant to chapter 34.05 9
RCW that claims based on mental conditions or mental disabilities 10
caused by stress do not fall within the definition of occupational 11
disease in RCW 51.08.140. 12
(2)(a) Except as provided in (b) and (c) of this subsection, the 13
rule adopted under subsection (1) of this section shall not apply to 14
occupational disease claims resulting from posttraumatic stress 15
disorders of firefighters as defined in RCW 41.26.030(((17))) (14) 16
(a), (b), (c), and (((h))) (e) or section 303 (17) (a), (b), (c), and 17
(h) of this act and firefighters, including supervisors, employed on 18
a full-time, fully compensated basis as a firefighter of a private 19
sector employer's fire department that includes over fifty such 20
firefighters, and law enforcement officers as defined in RCW 21
41.26.030(((19))) (16) (b), (c), and (((e))) (d) or section 303 (19) 22
(b), (c), and (e) of this act , and public safety telecommunicators 23
who receive calls for assistance and dispatch emergency services.24
(b) For firefighters as defined in RCW 41.26.030(((17))) (14) 25
(a), (b), (c), and (((h))) (e) or section 303 (17) (a), (b), (c), and 26
(h) of this act and firefighters, including supervisors, employed on 27
a full-time, fully compensated basis as a firefighter of a private 28
sector employer's fire department that includes over fifty such 29
firefighters, and law enforcement officers as defined in RCW 30
41.26.030(((19))) (16) (b), (c), and (((e))) (d) or section 303 (19) 31
(b), (c), and (e) of this act hired after June 7, 2018, and public 32
safety telecommunicators hired after June 11, 2020, (a) of this 33
subsection only applies if the firefighter or law enforcement officer 34
or public safety telecommunicators, as a condition of employment, has 35
submitted to a psychological examination administered by a 36
psychiatrist licensed in the state of Washington under chapter 18.71 37
RCW or a psychologist licensed in the state of Washington under 38
chapter 18.83 RCW that ruled out the presence of posttraumatic stress 39
p. 157 HB 2034
disorder from preemployment exposures. If the employer does not 1
provide the psychological examination, (a) of this subsection 2
applies. 3
(c) Posttraumatic stress disorder for purposes of this 4
subsection((s (2))) and subsection (3) of this section is not 5
considered an occupational disease if the disorder is directly 6
attributed to disciplinary action, work evaluation, job transfer, 7
layoff, demotion, termination, or similar action taken in good faith 8
by an employer. 9
(d) "Public safety telecommunicators" means individuals who 10
receive and respond to telephone or other electronic requests for 11
emergency assistance, such as law enforcement, fire, and medical 12
services, and dispatch appropriate emergency responders.13
(3)(a) Except as provided in this subsection, the rule adopted 14
under subsection (1) of this section shall not apply to occupational 15
disease claims resulting from posttraumatic stress disorders of 16
direct care registered nurses as defined in RCW 51.32.395.17
(b) The limitation in subsection (2)(c) of this section also 18
applies to this subsection (3). 19
(c) This subsection (3) applies only to a direct care registered 20
nurse who has posttraumatic stress disorder that develops or 21
manifests itself after the individual has been employed on a fully 22
compensated basis as a direct care registered nurse in Washington 23
state for at least 90 consecutive days. 24
Sec. 469. RCW 51.32.050 and 2010 c 261 s 3 are each amended to 25
read as follows: 26
(1) Where death results from the injury the expenses of burial 27
not to exceed two hundred percent of the average monthly wage in the 28
state as defined in RCW 51.08.018 shall be paid. 29
(2)(a) Where death results from the injury, a surviving spouse of 30
a deceased worker eligible for benefits under this title shall 31
receive monthly for life or until remarriage payments according to 32
the following schedule: 33
(i) If there are no children of the deceased worker, sixty 34
percent of the wages of the deceased worker; 35
(ii) If there is one child of the deceased worker and in the 36
legal custody of such spouse, sixty-two percent of the wages of the 37
deceased worker; 38
p. 158 HB 2034
(iii) If there are two children of the deceased worker and in the 1
legal custody of such spouse, sixty-four percent of the wages of the 2
deceased worker; 3
(iv) If there are three children of the deceased worker and in 4
the legal custody of such spouse, sixty-six percent of the wages of 5
the deceased worker; 6
(v) If there are four children of the deceased worker and in the 7
legal custody of such spouse, sixty-eight percent of the wages of the 8
deceased worker; or 9
(vi) If there are five or more children of the deceased worker 10
and in the legal custody of such spouse, seventy percent of the wages 11
of the deceased worker. 12
(b) Where the surviving spouse does not have legal custody of any 13
child or children of the deceased worker or where after the death of 14
the worker legal custody of such child or children passes from such 15
surviving spouse to another, any payment on account of such child or 16
children not in the legal custody of the surviving spouse shall be 17
made to the person or persons having legal custody of such child or 18
children. The amount of such payments shall be five percent of the 19
monthly benefits payable as a result of the worker's death for each 20
such child but such payments shall not exceed twenty-five percent. 21
Such payments on account of such child or children shall be 22
subtracted from the amount to which such surviving spouse would have 23
been entitled had such surviving spouse had legal custody of all of 24
the children and the surviving spouse shall receive the remainder 25
after such payments on account of such child or children have been 26
subtracted. Such payments on account of a child or children not in 27
the legal custody of such surviving spouse shall be apportioned 28
equally among such children. 29
(c) Payments to the surviving spouse of the deceased worker shall 30
cease at the end of the month in which remarriage occurs: PROVIDED, 31
That a monthly payment shall be made to the child or children of the 32
deceased worker from the month following such remarriage in a sum 33
equal to five percent of the wages of the deceased worker for one 34
child and a sum equal to five percent for each additional child up to 35
a maximum of five such children. Payments to such child or children 36
shall be apportioned equally among such children. Such sum shall be 37
in place of any payments theretofore made for the benefit of or on 38
account of any such child or children. If the surviving spouse does 39
not have legal custody of any child or children of the deceased 40
p. 159 HB 2034
worker, or if after the death of the worker, legal custody of such 1
child or children passes from such surviving spouse to another, any 2
payment on account of such child or children not in the legal custody 3
of the surviving spouse shall be made to the person or persons having 4
legal custody of such child or children. 5
(d) In no event shall the monthly payments provided in this 6
subsection (2) ((of this section)): 7
(i) Exceed the applicable percentage of the average monthly wage 8
in the state as computed under RCW 51.08.018 as follows:9
10 AFTER PERCENTAGE
11 June 30, 1993 105%
12 June 30, 1994 110%
13 June 30, 1995 115%
14 June 30, 1996 120%
(ii) For dates of injury or disease manifestation after July 1, 15
2008, be less than fifteen percent of the average monthly wage in the 16
state as computed under RCW 51.08.018 plus an additional ten dollars 17
per month for a surviving spouse and an additional ten dollars per 18
month for each child of the worker up to a maximum of five children. 19
However, if the monthly payment computed under this subsection 20
(2)(d)(ii) is greater than one hundred percent of the wages of the 21
deceased worker as determined under RCW 51.08.178, the monthly 22
payment due to the surviving spouse shall be equal to the greater of 23
the monthly wages of the deceased worker or the minimum benefit set 24
forth in this section on June 30, 2008. 25
(e) In addition to the monthly payments provided for in 26
((subsection (2)))(a) through (c) of this ((section)) subsection, a 27
surviving spouse or child or children of such worker if there is no 28
surviving spouse, or dependent parent or parents, if there is no 29
surviving spouse or child or children of any such deceased worker 30
shall be forthwith paid a sum equal to one hundred percent of the 31
average monthly wage in the state as defined in RCW 51.08.018, any 32
such children, or parents to share and share alike in said sum.33
(f) Upon remarriage of a surviving spouse the monthly payments 34
for the child or children shall continue as provided in this section, 35
but the monthly payments to such surviving spouse shall cease at the 36
end of the month during which remarriage occurs. However, after 37
September 8, 1975, an otherwise eligible surviving spouse of a worker 38
p. 160 HB 2034
who died at any time prior to or after September 8, 1975, shall have 1
an option of: 2
(i)(A) Receiving, once and for all, a lump sum of twenty-four 3
times the monthly compensation rate in effect on the date of 4
remarriage allocable to the spouse for himself or herself pursuant to 5
((subsection (2)))(a)(i) of this ((section)) subsection and subject 6
to any modifications specified under ((subsection (2)))(d) of this 7
((section)) subsection and RCW 51.32.075(3) or fifty percent of the 8
then remaining annuity value of his or her pension, whichever is the 9
lesser: PROVIDED, That if the injury occurred prior to July 28, 1991, 10
the remarriage benefit lump sum available shall be as provided in the 11
remarriage benefit schedules then in effect; 12
(B) If a surviving spouse is the surviving spouse of a member of 13
the law enforcement officers' and firefighters' retirement system 14
under chapter 41.26 or 41.--- (the new chapter created in section 504 15
of this act) RCW or the state patrol retirement system under chapter 16
43.43 RCW, the surviving spouse may receive a lump sum of thirty-six 17
times the monthly compensation rate in effect on the date of 18
remarriage allocable to the spouse for himself or herself pursuant to 19
((subsection (2)))(a)(i) of this ((section)) subsection and RCW 20
51.32.075(3) or fifty percent of the remaining annuity value of his 21
or her pension provided under this chapter, whichever is the lesser: 22
PROVIDED, That if the injury occurred prior to July 28, 1991, the 23
lump sum benefit shall be as provided in the remarriage benefit 24
schedules then in effect; or 25
(ii) If a surviving spouse does not choose the option specified 26
in ((subsection (2)))(f)(i) of this ((section)) subsection to accept 27
the lump sum payment, the remarriage of the surviving spouse of a 28
worker shall not bar him or her from claiming the lump sum payment 29
authorized in ((subsection (2)))(f)(i) of this ((section)) subsection 30
during the life of the remarriage, or shall not prevent subsequent 31
monthly payments to him or to her if the remarriage has been 32
terminated by death or has been dissolved or annulled by valid court 33
decree provided he or she has not previously accepted the lump sum 34
payment. 35
(g) If the surviving spouse during the remarriage should die 36
without having previously received the lump sum payment provided in 37
((subsection (2)))(f)(i) of this ((section)) subsection, his or her 38
estate shall be entitled to receive the sum specified under 39
((subsection (2)))(f)(i) of this ((section)) subsection or fifty 40
p. 161 HB 2034
percent of the then remaining annuity value of his or her pension 1
whichever is the lesser. 2
(h) The effective date of resumption of payments under 3
((subsection (2)))(f)(ii) of this ((section)) subsection to a 4
surviving spouse based upon termination of a remarriage by death, 5
annulment, or dissolution shall be the date of the death or the date 6
the judicial decree of annulment or dissolution becomes final and 7
when application for the payments has been received.8
(i) If it should be necessary to increase the reserves in the 9
reserve fund or to create a new pension reserve fund as a result of 10
the amendments in chapter 45, Laws of 1975 -'76 2nd ex. sess., the 11
amount of such increase in pension reserve in any such case shall be 12
transferred to the reserve fund from the supplemental pension fund.13
(3) If there is a child or children and no surviving spouse of 14
the deceased worker or the surviving spouse is not eligible for 15
benefits under this title, a sum equal to thirty-five percent of the 16
wages of the deceased worker shall be paid monthly for one child and 17
a sum equivalent to fifteen percent of such wage shall be paid 18
monthly for each additional child, the total of such sum to be 19
divided among such children, share and share alike: PROVIDED, That 20
benefits under this subsection or subsection (4) of this section 21
shall not exceed the lesser of sixty-five percent of the wages of the 22
deceased worker at the time of his or her death or the applicable 23
percentage of the average monthly wage in the state as defined in RCW 24
51.08.018, as follows: 25
26 AFTER PERCENTAGE
27 June 30, 1993 105%
28 June 30, 1994 110%
29 June 30, 1995 115%
30 June 30, 1996 120%
(4) In the event a surviving spouse receiving monthly payments 31
dies, the child or children of the deceased worker shall receive the 32
same payment as provided in subsection (3) of this section.33
(5) If the worker leaves no surviving spouse or child, but leaves 34
a dependent or dependents, a monthly payment shall be made to each 35
dependent equal to fifty percent of the average monthly support 36
actually received by such dependent from the worker during the twelve 37
months next preceding the occurrence of the injury, but the total 38
p. 162 HB 2034
payment to all dependents in any case shall not exceed the lesser of 1
sixty-five percent of the wages of the deceased worker at the time of 2
his or her death or the applicable percentage of the average monthly 3
wage in the state as defined in RCW 51.08.018 as follows:4
5 AFTER PERCENTAGE
6 June 30, 1993 105%
7 June 30, 1994 110%
8 June 30, 1995 115%
9 June 30, 1996 120%
If any dependent is under the age of eighteen years at the time 10
of the occurrence of the injury, the payment to such dependent shall 11
cease when such dependent reaches the age of eighteen years except 12
such payments shall continue until the dependent reaches age twenty-13
three while permanently enrolled at a full time course in an 14
accredited school. The payment to any dependent shall cease if and 15
when, under the same circumstances, the necessity creating the 16
dependency would have ceased if the injury had not happened.17
(6) For claims filed prior to July 1, 1986, if the injured worker 18
dies during the period of permanent total disability, whatever the 19
cause of death, leaving a surviving spouse, or child, or children, 20
the surviving spouse or child or children shall receive benefits as 21
if death resulted from the injury as provided in subsections (2) 22
through (4) of this section. Upon remarriage or death of such 23
surviving spouse, the payments to such child or children shall be 24
made as provided in subsection (2) of this section when the surviving 25
spouse of a deceased worker remarries. 26
(7) For claims filed on or after July 1, 1986, every worker who 27
becomes eligible for permanent total disability benefits shall elect 28
an option as provided in RCW 51.32.067. 29
Sec. 470. RCW 51.32.185 and 2019 c 133 s 1 are each amended to 30
read as follows: 31
(1)(a) In the case of firefighters as defined in RCW 32
41.26.030(((17))) (14) (a), (b), (c), and (((h))) (e) or section 33
303(17) (a), (b), (c), and (h) of this act who are covered under this 34
title and firefighters, including supervisors, employed on a full-35
time, fully compensated basis as a firefighter of a private sector 36
employer's fire department that includes over fifty such 37
p. 163 HB 2034
firefighters, and public employee fire investigators, there shall 1
exist a prima facie presumption that: (i) Respiratory disease; (ii) 2
any heart problems, experienced within seventy-two hours of exposure 3
to smoke, fumes, or toxic substances, or experienced within twenty-4
four hours of strenuous physical exertion due to firefighting 5
activities; (iii) cancer; and (iv) infectious diseases are 6
occupational diseases under RCW 51.08.140. 7
(b) In the case of firefighters as defined in RCW 8
41.26.030(((17))) (14) (a), (b), (c), and (((h))) (e) or section 9
303(17) (a), (b), (c), and (h) of this act and firefighters, 10
including supervisors, employed on a full-time, fully compensated 11
basis as a firefighter of a private sector employer's fire department 12
that includes over fifty such firefighters, and law enforcement 13
officers as defined in RCW 41.26.030(((19))) (16) (b), (c), and 14
(((e))) (d) or section 303(19) (b), (c), and (e) of this act, who are 15
covered under this title, there shall exist a prima facie presumption 16
that posttraumatic stress disorder is an occupational disease under 17
RCW 51.08.140. 18
(c) In the case of law enforcement officers as defined in RCW 19
41.26.030(((19))) (16) (b), (c), and (((e))) (d) or section 303 (19) 20
(b), (c), and (e) of this act who are covered under Title 51 RCW, 21
there shall exist a prima facie presumption that: (i) Any heart 22
problems, experienced within seventy-two hours of exposure to smoke, 23
fumes, or toxic substances, or experienced within twenty-four hours 24
of strenuous physical exertion in the line of duty; and (ii) 25
infectious diseases are occupational diseases under RCW 51.08.140.26
(d) This presumption of occupational disease established in (a), 27
(b), and (c) of this subsection may be rebutted by a preponderance of 28
the evidence. Such evidence may include, but is not limited to, use 29
of tobacco products, physical fitness and weight, lifestyle, 30
hereditary factors, and exposure from other employment or 31
nonemployment activities. 32
(2) The presumptions established in subsection (1) of this 33
section shall be extended to an applicable member following 34
termination of service for a period of three calendar months for each 35
year of requisite service, but may not extend more than sixty months 36
following the last date of employment. 37
(3)(a) The presumption established in subsection (1)(a)(iii) of 38
this section shall only apply to any active or former firefighter or 39
fire investigator who: 40
p. 164 HB 2034
(i) Has cancer that develops or manifests itself after the 1
firefighter or fire investigator has served at least ten years; and2
(ii)(A) Was given a qualifying medical examination upon becoming 3
a firefighter or fire investigator that showed no evidence of cancer; 4
or 5
(B)(I) For a firefighter or fire investigator who became a 6
firefighter or fire investigator on or after July 28, 2019, the 7
employer did not provide a qualifying medical examination upon 8
becoming a firefighter or fire investigator; or 9
(II) For a firefighter or fire investigator who became a 10
firefighter or fire investigator before July 28, 2019, the employer 11
did not provide a qualifying medical examination upon becoming a 12
firefighter or fire investigator and the employer provides a 13
qualifying medical examination on or before July 1, 2020. If a 14
firefighter or fire investigator described in this subsection 15
(3)(a)(ii)(B)(II) did not receive a qualifying medical examination 16
before July 1, 2020, or is diagnosed with a cancer listed in (b) of 17
this subsection at the time of the qualifying medical examination 18
under this subsection (3)(a)(ii)(B)(II) and otherwise meets the 19
requirements of this section, the presumption established in 20
subsection (1)(a)(iii) of this section applies. 21
(b) The presumption established in subsection (1)(a)(iii) of this 22
section shall only apply to the following cancers: Prostate cancer 23
diagnosed prior to the age of fifty, primary brain cancer, malignant 24
melanoma, leukemia, non-Hodgkin's lymphoma, bladder cancer, ureter 25
cancer, colorectal cancer, multiple myeloma, testicular cancer, 26
kidney cancer, mesothelioma, stomach cancer, nonmelanoma skin cancer, 27
breast cancer in women, and cervical cancer. 28
(4) The presumption established in subsection (1)(a)(iv) and 29
(c)(ii) of this section shall be extended to any firefighter, fire 30
investigator, or law enforcement officer who has contracted any of 31
the following infectious diseases: Human immunodeficiency virus/32
acquired immunodeficiency syndrome, all strains of hepatitis, 33
meningococcal meningitis, or mycobacterium tuberculosis.34
(5) The presumption established in subsection (1)(b) of this 35
section only applies to active or former firefighters as defined in 36
RCW 41.26.030(((17))) (14) (a), (b), (c), and (((h))) (e) or section 37
303(17) (a), (b), (c), and (h) of this act and firefighters, 38
including supervisors, employed on a full-time, fully compensated 39
basis as a firefighter of a private sector employer's fire department 40
p. 165 HB 2034
that includes over fifty such firefighters, and law enforcement 1
officers as defined in RCW 41.26.030(((19))) (16) (b), (c), and 2
(((e))) (d) or section 303(19) (b), (c), and (e) of this act who have 3
posttraumatic stress disorder that develops or manifests itself after 4
the individual has served at least ten years. 5
(6) If the employer does not provide the psychological exam as 6
specified in RCW 51.08.142 and the employee otherwise meets the 7
requirements for the presumption established in subsection (1)(b) of 8
this section, the presumption applies. 9
(7) Beginning July 1, 2003, this section does not apply to a 10
firefighter, fire investigator, or law enforcement officer who 11
develops a heart or lung condition and who is a regular user of 12
tobacco products or who has a history of tobacco use. The department, 13
using existing medical research, shall define in rule the extent of 14
tobacco use that shall exclude a firefighter, fire investigator, or 15
law enforcement officer from the provisions of this section.16
(8) For purposes of this section, "firefighting activities" means 17
fire suppression, fire prevention, fire investigation, emergency 18
medical services, rescue operations, hazardous materials response, 19
aircraft rescue, and training and other assigned duties related to 20
emergency response. 21
(9)(a) When a determination involving the presumption established 22
in this section is appealed to the board of industrial insurance 23
appeals and the final decision allows the claim for benefits, the 24
board of industrial insurance appeals shall order that all reasonable 25
costs of the appeal, including attorney fees and witness fees, be 26
paid to the firefighter, fire investigator, or law enforcement 27
officer, or his or her beneficiary by the opposing party.28
(b) When a determination involving the presumption established in 29
this section is appealed to any court and the final decision allows 30
the claim for benefits, the court shall order that all reasonable 31
costs of the appeal, including attorney fees and witness fees, be 32
paid to the firefighter, fire investigator, or law enforcement 33
officer, or his or her beneficiary by the opposing party.34
(c) When reasonable costs of the appeal must be paid by the 35
department under this section in a state fund case, the costs shall 36
be paid from the accident fund and charged to the costs of the claim.37
(10)(a) The director must create an advisory committee on 38
occupational disease presumptions. The purposes of the advisory 39
committee are to review scientific evidence and to make 40
p. 166 HB 2034
recommendations to the legislature on additional diseases or 1
disorders for inclusion under this section. 2
(b)(i) The advisory committee shall be composed of five voting 3
members, appointed by the director as follows: 4
(A) Two epidemiologists; 5
(B) Two preventive medicine physicians; and 6
(C) One industrial hygienist. 7
(ii) The research director of the department's safety and health 8
assessment and research for prevention program shall serve as the 9
advisory committee nonvoting chair. 10
(iii) Members serve for a term of four years and may be 11
reappointed. Members shall not be compensated for their work on the 12
advisory committee. As a condition of appointment, voting members and 13
the chair must have no past or current financial or personal 14
conflicts of interest related to the advisory committee activities. 15
Voting members of the advisory committee may not be current employees 16
of the department. 17
(c) The chair or ranking member of the appropriate committee or 18
committees of the legislature may initiate a request for the advisory 19
committee to review scientific evidence and to make recommendations 20
to the legislature on specific disorders or diseases, or specific 21
occupations, for inclusion under this section by notifying the 22
director. 23
(d) The process of developing an advisory committee 24
recommendation must include a thorough review of the scientific 25
literature on the disease or disorder, relevant exposures, and 26
strength of the association between the specific occupations and the 27
disease or disorder proposed for inclusion in this section. The 28
advisory committee must give consideration to the relevance, quality, 29
and quantity of the literature and data. The advisory committee may 30
consult nationally recognized experts or subject matter experts in 31
developing its recommendations. The advisory committee must provide a 32
recommendation to the legislature within the earlier of one hundred 33
eighty days of the request or when the advisory committee reaches a 34
consensus recommendation. 35
(e) Each recommendation must include a written description of the 36
scientific evidence and supporting information relied upon to assess 37
the causal relationship between the occupation and health condition 38
proposed for inclusion under this section. Estimates of the number of 39
Washington workers at risk, the prevalence of the disease or 40
p. 167 HB 2034
disorder, and the medical treatment and disability costs should, if 1
available, be included with the recommendation. 2
(f) The recommendation must be made by a majority of advisory 3
committee's voting members. Any member of the advisory committee may 4
provide a written dissent as an appendix to the committee's 5
recommendation. 6
(g) The department's safety and health assessment and research 7
for prevention program shall provide organizational and scientific 8
support to the advisory committee. Scientific support must include 9
for consideration of the advisory committee preliminary written 10
reviews of the scientific literature on the disease and disorder, 11
relevant exposures, and strength of the association between the 12
specific occupations and the health condition or disorders proposed 13
for inclusion in this section. 14
Sec. 471. RCW 72.72.060 and 1983 c 279 s 5 are each amended to 15
read as follows: 16
The state shall reimburse cities and counties for their costs 17
incurred under chapter 41.26 or 41.--- (the new chapter created in 18
section 504 of this act) RCW if the costs are the direct result of 19
physical injuries sustained in the implementation of a contingency 20
plan adopted under RCW 72.02.150 and if reimbursement is not 21
precluded by the following provisions: If the secretary of 22
corrections identifies in the contingency plan the prison walls or 23
other perimeter of the secured area, then reimbursement will not be 24
made unless the injuries occur within the walls or other perimeter of 25
the secured area. If the secretary of corrections does not identify 26
prison walls or other perimeter of the secured area, then 27
reimbursement shall not be made unless the injuries result from 28
providing assistance, requested by the secretary of corrections or 29
the secretary's designee, which is beyond the description of the 30
assistance contained in the contingency plan. In no case shall 31
reimbursement be made when the injuries result from conduct which 32
either is not requested by the secretary of corrections or the 33
secretary's designee, or is in violation of orders by superiors of 34
the local law enforcement agency. 35
PART V36
MISCELLANEOUS37
p. 168 HB 2034
NEW SECTION. Sec. 501. REPEALER. The following acts or parts of 1
acts are each repealed:2
(1) RCW 41.26.005 (Provisions applicable to "plan 1" and "plan 3
2.") and 1992 c 72 s 2, 1991 c 35 s 12, 1989 c 273 s 10, 1985 c 102 s 4
5, 1979 ex.s. c 249 s 1, & 1977 ex.s. c 294 s 18; 5
(2) RCW 41.26.035 ("Minimum medical and health standards" 6
defined) and 1991 c 35 s 14 & 1971 ex.s. c 257 s 2;7
(3) RCW 41.26.045 (Minimum medical and health standards) and 2012 8
c 117 s 40, 1979 ex.s. c 249 s 3, 1977 ex.s. c 294 s 20, 1974 ex.s. c 9
120 s 8, & 1971 ex.s. c 257 s 3; 10
(4) RCW 41.26.046 (Minimum medical and health standards —Board to 11
adopt—Publication and distribution —Employer certification 12
procedures) and 2012 c 117 s 41, 1987 c 418 s 2, 1977 ex.s. c 294 s 13
21, 1974 ex.s. c 120 s 12, 1972 ex.s. c 131 s 2, & 1971 ex.s. c 257 s 14
4; 15
(5) RCW 41.26.047 (Minimum medical and health standards —16
Exemptions—Employer may adopt higher standards) and 2012 c 117 s 42, 17
1972 ex.s. c 131 s 3, & 1971 ex.s. c 257 s 5; 18
(6) RCW 41.26.075 (Provisions applicable to plan 1) and 1992 c 72 19
s 3 & 1991 c 35 s 101; 20
(7) RCW 41.26.080 (Funding total liability of plan 1 system) and 21
2007 c 492 s 8, 2000 2nd sp.s. c 1 s 907, 1991 c 35 s 17, 1989 c 273 22
s 13, & 1969 ex.s. c 209 s 8; 23
(8) RCW 41.26.090 (Retirement for service) and 1991 sp.s. c 11 s 24
4; 25
(9) RCW 41.26.100 (Allowance on retirement for service) and 2006 26
c 350 s 1, 1991 c 343 s 16, 1974 ex.s. c 120 s 3, 1972 ex.s. c 131 s 27
7, 1971 ex.s. c 257 s 9, 1970 ex.s. c 6 s 5, & 1969 ex.s. c 209 s 10;28
(10) RCW 41.26.105 (Purchase of actuarially equivalent life 29
annuity benefit upon retirement—Purchase by past retirees) and 2016 c 30
222 s 2; 31
(11) RCW 41.26.110 (Disability boards authorized —Composition—32
Terms—Reimbursement for travel expenses—Duties) and 2020 c 107 s 7;33
(12) RCW 41.26.115 (Director of retirement systems to adopt rules 34
governing disability boards —Remand of orders not in accordance with 35
rules) and 1981 c 294 s 1; 36
(13) RCW 41.26.120 (Retirement for disability incurred in the 37
line of duty) and 1991 c 35 s 19, 1986 c 176 s 5, 1985 c 102 s 2, 38
p. 169 HB 2034
1981 c 294 s 2, 1974 ex.s. c 120 s 10, 1972 ex.s. c 131 s 8, 1970 1
ex.s. c 6 s 7, & 1969 ex.s. c 209 s 12; 2
(14) RCW 41.26.125 (Retirement for disability not incurred in the 3
line of duty) and 1986 c 176 s 6 & 1985 c 102 s 3; 4
(15) RCW 41.26.130 (Allowance on retirement for disability) and 5
1991 c 35 s 20, 1987 c 185 s 11, 1981 c 294 s 3, 1970 ex.s. c 6 s 8, 6
& 1969 ex.s. c 209 s 13; 7
(16) RCW 41.26.135 (Cessation of disability —Determination) and 8
1985 c 103 s 1; 9
(17) RCW 41.26.140 (Reexaminations of disability beneficiaries —10
Reentry—Appeal) and 1991 c 35 s 21, 1985 c 103 s 2, 1981 c 294 s 4, 11
1974 ex.s. c 120 s 4, 1970 ex.s. c 6 s 9, & 1969 ex.s. c 209 s 14;12
(18) RCW 41.26.150 (Sickness or disability benefits —Medical 13
services) and 2013 c 23 s 70, 1992 c 22 s 3, 1991 c 35 s 22, 1987 c 14
185 s 12, 1983 c 106 s 23, 1974 ex.s. c 120 s 11, 1971 ex.s. c 257 s 15
10, 1970 ex.s. c 6 s 10, 1969 ex.s. c 219 s 4, & 1969 ex.s. c 209 s 16
15; 17
(19) RCW 41.26.160 (Death benefits —Duty or military service 18
connected) and 2009 c 226 s 1, 2005 c 62 s 1, 2002 c 158 s 1, 1999 c 19
134 s 2, & 1991 sp.s. c 11 s 5; 20
(20) RCW 41.26.161 (Death benefits—Nonduty connected) and 2005 c 21
62 s 2, 2002 c 158 s 2, & 1999 c 134 s 3; 22
(21) RCW 41.26.162 (Ex spouse qualifying as surviving spouse) and 23
2005 c 62 s 3, 2002 c 158 s 3, & 1991 sp.s. c 12 s 2;24
(22) RCW 41.26.164 (Optional reduced retirement allowance —25
Continues for spouse otherwise ineligible for survivor benefits) and 26
2016 c 120 s 1, 2005 c 67 s 1, & 2002 c 158 s 4; 27
(23) RCW 41.26.170 (Refund of contributions on discontinuance of 28
service—Reentry) and 1994 c 197 s 6, 1991 c 35 s 24, 1970 ex.s. c 6 s 29
14, & 1969 ex.s. c 209 s 22; 30
(24) RCW 41.26.190 (Credit for military service) and 1991 c 35 s 31
26, 1970 ex.s. c 6 s 13, & 1969 ex.s. c 209 s 18; 32
(25) RCW 41.26.192 (Credit for service under prior pension system33
—Restoration of withdrawn contributions) and 1994 c 197 s 7 & 1992 c 34
157 s 1; 35
(26) RCW 41.26.194 (Credit for service under prior pension system36
—Service not covered under prior system) and 1994 c 197 s 8 & 1992 c 37
157 s 2; 38
p. 170 HB 2034
(27) RCW 41.26.195 (Transfer of service credit from other 1
retirement system—Irrevocable election allowed) and 2010 c 260 s 1, 2
2007 c 492 s 9, 2003 c 294 s 2, & 1997 c 122 s 1; 3
(28) RCW 41.26.197 (Service credit for paid leave of absence —4
Application to elected officials of labor organizations) and 1993 c 5
95 s 3; 6
(29) RCW 41.26.199 (Purchase of additional service credit —Costs—7
Rules) and 2006 c 214 s 5; 8
(30) RCW 41.26.200 (Appeal to director of retirement systems) and 9
1981 c 294 s 5, 1974 ex.s. c 120 s 6, 1971 ex.s. c 257 s 13, 1970 10
ex.s. c 6 s 11, & 1969 ex.s. c 209 s 16; 11
(31) RCW 41.26.211 (Notice for hearing required prior to 12
petitioning for judicial review) and 1984 c 184 s 16, 1981 c 294 s 6, 13
& 1969 ex.s. c 209 s 19; 14
(32) RCW 41.26.221 (Hearing—Conduct) and 1984 c 184 s 17, 1981 c 15
294 s 7, & 1969 ex.s. c 209 s 20; 16
(33) RCW 41.26.240 (Increases or decreases in retirement 17
allowances to be determined by department in accordance with consumer 18
price index) and 1991 c 35 s 27, 1974 ex.s. c 120 s 13, 1970 ex.s. c 19
6 s 16, & 1969 ex.s. c 209 s 24; 20
(34) RCW 41.26.250 (Increase in presently payable benefits for 21
service or disability authorized) and 1975 1st ex.s. c 178 s 3, 1974 22
ex.s. c 190 s 3, 1970 ex.s. c 37 s 2, & 1969 ex.s. c 209 s 34;23
(35) RCW 41.26.260 (Increase in certain presently payable death 24
benefits authorized) and 1974 ex.s. c 190 s 4 & 1969 ex.s. c 209 s 25
35; 26
(36) RCW 41.26.270 (Declaration of policy respecting benefits for 27
injury or death —Civil actions abolished) and 1989 c 12 s 13, 1987 c 28
185 s 13, 1985 c 102 s 4, & 1971 ex.s. c 257 s 14;29
(37) RCW 41.26.281 (Cause of action for injury or death, when) 30
and 1991 c 35 s 28 & 1971 ex.s. c 257 s 15; 31
(38) RCW 41.26.291 (Lump sum defined benefit —Payable January 31, 32
2023) and 2022 c 168 s 1; 33
(39) RCW 41.26.3901 (Severability—1969 ex.s. c 209) and 1969 34
ex.s. c 209 s 42; 35
(40) RCW 41.26.3902 (Act to control inconsistencies) and 1969 36
ex.s. c 209 s 43; 37
(41) RCW 41.26.3903 (Effective date —1969 ex.s. c 209) and 1969 38
ex.s. c 209 s 45; and 39
p. 171 HB 2034
(42) RCW 41.26.410 (Provisions applicable to plan 2) and 1991 c 1
35 s 29 & 1977 ex.s. c 294 s 2. 2
NEW SECTION. Sec. 502. SAVINGS. The repeals in section 501 of 3
this act do not affect any existing right acquired or liability or 4
obligation incurred under the statutes repealed or under any rule or 5
order adopted under those statutes nor do they affect any proceeding 6
instituted under them. Rules adopted by the department of retirement 7
systems relating to plan 1 of the law enforcement officers' and 8
firefighters' retirement system under chapter 41.26 RCW shall 9
continue in effect and apply to the restated law enforcement 10
officers' and firefighters' retirement system under chapter 41.--- 11
RCW (the new chapter created in section 504 of this act) unless 12
expressly inconsistent therewith and until repealed or superseded.13
NEW SECTION. Sec. 503. NONSEVERABILITY. Sections 101 through 14
108 of this act are not severable, and if any provision of those 15
sections is held invalid by a court of competent jurisdiction, this 16
entire act is null and void.17
NEW SECTION. Sec. 504. LEGISLATIVE DIRECTIVE. Sections 101 18
through 107, 109, and 301 through 348 of this act constitute a new 19
chapter in Title 41 RCW.20
Sec. 505. RCW 41.45.230 and 2021 c 334 s 966 are each amended to 21
read as follows: 22
The pension funding stabilization account is created in the state 23
treasury. Moneys in the account may be spent only after 24
appropriation. Expenditures from the account may be used only for 25
payment of state government employer contributions for members of the 26
public employees' retirement system, the teachers' retirement system, 27
the school employees' retirement system, and the public safety 28
employees' retirement system, and during the ((2019-2021 and 29
2021-2023 fiscal biennia for the judicial retirement system )) 30
2027-2029 fiscal biennium the legislature may direct the state 31
treasurer to make transfers of moneys in the pension funding 32
stabilization account into the state general fund . The account may 33
not be used to pay for any new benefit or for any benefit increase 34
that takes effect after July 1, 2005. An increase that is provided in 35
accordance with a formula that is in existence on July 1, 2005, is 36
p. 172 HB 2034
not considered a benefit increase for this purpose. Moneys in the 1
account shall be for the exclusive use of the specified retirement 2
systems and may be invested by the state treasurer pursuant to RCW 3
43.84.080. For purposes of RCW 43.135.034, expenditures from the 4
pension funding stabilization account shall not be considered a state 5
program cost shift from the state general fund to another account.6
NEW SECTION. Sec. 506. EFFECTIVE DATE. Except for sections 108, 7
109, and 464 of this act, this act takes effect June 30, 2029.8
NEW SECTION. Sec. 507. Section 463 of this act expires July 1, 9
2030.10
NEW SECTION. Sec. 508. Section 464 of this act takes effect 11
July 1, 2030.12
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p. 173 HB 2034