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911 - 1055.PLCERTIFICATION OF ENROLLMENT HOUSE BILL 1055 68th Legislature 2023 Regular Session Passed by the House March 6, 2023 Yeas 96 Nays 0 Speaker of the House of Representatives Passed by the Senate April 12, 2023 Yeas 48 Nays 1 President of the Senate CERTIFICATE I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1055 as passed by the House of Representatives and the Senate on the dates hereon set forth. Chief Clerk Approved FILED Governor of the State of Washington Secretary of State State of Washington AN ACT Relating to public safety employees' retirement plan 1 membership for public safety telecommunicators; amending RCW 2 41.37.005 and 41.37.010; adding a new section to chapter 41.37 RCW; 3 creating a new section; and providing an effective date.4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5 NEW SECTION. Sec. 1. (1) The legislature recognizes that the 6 entities that employ public safety telecommunicators can be set up at 7 many levels, including state, federal, and nonprofit.8 (2) The legislature intends this act to apply only to:9 (a) Newly-hired public safety telecommunicators who would 10 otherwise be eligible for the public employees' retirement system 11 plan 2 or plan 3 if not for this act; and12 (b) Existing public safety telecommunicators who are currently 13 participating in the public employees' retirement system plan 2 or 14 plan 3.15 (3) This act is not intended to confer retirement system 16 membership or benefits to any employees who are not already eligible 17 for state retirement benefits, such as contract employees, nonprofit 18 employees, and employees of first-class cities.19 HOUSE BILL 1055 Passed Legislature - 2023 Regular Session State of Washington 68th Legislature 2023 Regular Session By Representatives Stokesbary, Ormsby, Leavitt, Simmons, Goodman, Lekanoff, Rule, Robertson, Bronoske, Bergquist, and Davis; by request of Select Committee on Pension Policy Prefiled 12/20/22. Read first time 01/09/23. Referred to Committee on Appropriations. p. 1 HB 1055.PL Sec. 2. RCW 41.37.005 and 2006 c 309 s 1 are each amended to 1 read as follows:2 It is the intent of the legislature to establish a separate 3 public safety employees' retirement system for certain public 4 employees whose jobs contain a high degree of physical or 5 psychological risk to their own personal safety and who provide 6 public protection of lives and property, but who are not eligible for 7 membership in the law enforcement officers' and firefighters' 8 retirement system.9 Sec. 3. RCW 41.37.010 and 2021 c 12 s 6 are each amended to read 10 as follows:11 The definitions in this section apply throughout this chapter 12 unless the context clearly requires otherwise.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) "Annuity" means payments for life derived from accumulated 23 contributions of a member. All annuities shall be paid in monthly 24 installments.25 (5)(a) "Average final compensation" means the member's average 26 compensation earnable of the highest consecutive sixty months of 27 service credit months prior to such member's retirement, termination, 28 or death. Periods constituting authorized leaves of absence may not 29 be used in the calculation of average final compensation except under 30 RCW 41.37.290.31 (b) In calculating average final compensation under (a) of this 32 subsection, the department of retirement systems shall include:33 (i) Any compensation forgone by a member employed by a state 34 agency or institution during the 2009-2011 fiscal biennium as a 35 result of reduced work hours, mandatory or voluntary leave without 36 pay, temporary reduction in pay implemented prior to December 11, 37 2010, or temporary layoffs if the reduced compensation is an integral 38 p. 2 HB 1055.PL part of the employer's expenditure reduction efforts, as certified by 1 the employer;2 (ii) Any compensation forgone by a member employed by the state 3 or a local government employer during the 2011-2013 fiscal biennium 4 as a result of reduced work hours, mandatory leave without pay, 5 temporary layoffs, or reductions to current pay if the reduced 6 compensation is an integral part of the employer's expenditure 7 reduction efforts, as certified by the employer. Reductions to 8 current pay shall not include elimination of previously agreed upon 9 future salary increases; and10 (iii) Any compensation forgone by a member during the 2019-2021 11 and 2021-2023 fiscal biennia as a result of reduced work hours, 12 mandatory leave without pay, temporary layoffs, furloughs, reductions 13 to current pay, or other similar measures resulting from the COVID-19 14 budgetary crisis, if the reduced compensation is an integral part of 15 the employer's expenditure reduction efforts, as certified by the 16 employer. Reductions to current pay shall not include elimination of 17 previously agreed upon future salary increases.18 (6) "Beneficiary" means any person in receipt of a retirement 19 allowance or other benefit provided by this chapter resulting from 20 service rendered to an employer by another person.21 (7)(a) "Compensation earnable" for members, means salaries or 22 wages earned by a member during a payroll period for personal 23 services, including overtime payments, and shall include wages and 24 salaries deferred under provisions established pursuant to sections 25 403(b), 414(h), and 457 of the United States internal revenue code, 26 but shall exclude nonmoney maintenance compensation and lump sum or 27 other payments for deferred annual sick leave, unused accumulated 28 vacation, unused accumulated annual leave, or any form of severance 29 pay.30 (b) "Compensation earnable" for members also includes the 31 following actual or imputed payments, which are not paid for personal 32 services:33 (i) Retroactive payments to an individual by an employer on 34 reinstatement of the employee in a position, or payments by an 35 employer to an individual in lieu of reinstatement, which are awarded 36 or granted as the equivalent of the salary or wage which the 37 individual would have earned during a payroll period shall be 38 considered compensation earnable to the extent provided in this 39 p. 3 HB 1055.PL subsection, and the individual shall receive the equivalent service 1 credit;2 (ii) In any year in which a member serves in the legislature, the 3 member shall have the option of having such member's compensation 4 earnable be the greater of:5 (A) The compensation earnable the member would have received had 6 such member not served in the legislature; or7 (B) Such member's actual compensation earnable received for 8 nonlegislative public employment and legislative service combined. 9 Any additional contributions to the retirement system required 10 because compensation earnable under (b)(ii)(A) of this subsection is 11 greater than compensation earnable under (b)(ii)(B) of this 12 subsection shall be paid by the member for both member and employer 13 contributions;14 (iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045, 15 and 72.09.240;16 (iv) Compensation that a member would have received but for a 17 disability occurring in the line of duty only as authorized by RCW 18 41.37.060;19 (v) Compensation that a member receives due to participation in 20 the leave sharing program only as authorized by RCW 41.04.650 through 21 41.04.670; and22 (vi) Compensation that a member receives for being in standby 23 status. For the purposes of this section, a member is in standby 24 status when not being paid for time actually worked and the employer 25 requires the member to be prepared to report immediately for work, if 26 the need arises, although the need may not arise.27 (8) "Department" means the department of retirement systems 28 created in chapter 41.50 RCW.29 (9) "Director" means the director of the department.30 (10) "Eligible position" means any permanent, full-time position 31 included in subsection (19) of this section.32 (11) "Employee" or "employed" means a person who is providing 33 services for compensation to an employer, unless the person is free 34 from the employer's direction and control over the performance of 35 work. The department shall adopt rules and interpret this subsection 36 consistent with common law.37 (12)(a) "Employer" means ((the)):38 (i) The Washington state department of corrections((, the));39 p. 4 HB 1055.PL (ii) The Washington state parks and recreation commission((, 1 the));2 (iii) The Washington state gambling commission((, the));3 (iv) The Washington state patrol((, the));4 (v) The Washington state department of natural resources((, 5 the));6 (vi) The Washington state liquor and cannabis board((, the));7 (vii) The Washington state department of veterans affairs((, 8 the));9 (viii) The Washington state department of children, youth, and 10 families((, and the));11 (ix) The Washington state department of social and health 12 services((; any));13 (x) Any county corrections department((; any));14 (xi) Any city corrections department not covered under chapter 15 41.28 RCW((; and any));16 (xii) Any public corrections entity created under RCW 39.34.030 17 by counties, cities not covered under chapter 41.28 RCW, or both; and18 (xiii) Any employer participating in the public employees' 19 retirement system in chapter 41.40 RCW, some or all of whose 20 employees' primary responsibility is to receive, process, transmit, 21 or dispatch 911 emergency and nonemergency calls for law enforcement, 22 fire, emergency medical, or other public safety services that is not 23 already covered by the provisions of this subsection.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 solely 32 on the relationship between a government contractor's employee and an 33 employer under this chapter.34 (13) "Final compensation" means the annual rate of compensation 35 earnable by a member at the time of termination of employment.36 (14) "Index" means, for any calendar year, that year's annual 37 average consumer price index, Seattle, Washington area, for urban 38 wage earners and clerical workers, all items, compiled by the bureau 39 of labor statistics, United States department of labor.40 p. 5 HB 1055.PL (15) "Index A" means the index for the year prior to the 1 determination of a postretirement adjustment.2 (16) "Index B" means the index for the year prior to index A.3 (17) "Ineligible position" means any position which does not 4 conform with the requirements set forth in subsection (10) of this 5 section.6 (18) "Leave of absence" means the period of time a member is 7 authorized by the employer to be absent from service without being 8 separated from membership.9 (19) "Member" means any employee employed by an employer on a 10 full-time basis:11 (a) Who is in a position that requires completion of a certified 12 criminal justice training course and is authorized by their employer 13 to arrest, conduct criminal investigations, enforce the criminal laws 14 of the state of Washington, and carry a firearm as part of the job;15 (b) Whose primary responsibility is to ensure the custody and 16 security of incarcerated or probationary individuals as a corrections 17 officer, probation officer, or jailer;18 (c) Who is a limited authority Washington peace officer, as 19 defined in RCW 10.93.020, for an employer;20 (d) Whose primary responsibility is to provide nursing care to, 21 or to ensure the custody and safety of, offender, adult probationary, 22 or patient populations; and who is in a position that requires 23 completion of defensive tactics training or de-escalation training; 24 and who is employed by one of the following state institutions or 25 centers operated by the department of social and health services or 26 the department of children, youth, and families:27 (i) Juvenile rehabilitation administration institutions, not 28 including community facilities;29 (ii) Mental health hospitals;30 (iii) Child study and treatment centers; or31 (iv) Institutions or residential sites that serve developmentally 32 disabled patients or offenders, or perform competency restoration 33 services, except for state-operated living alternatives facilities;34 (e) Whose primary responsibility is to provide nursing care to 35 offender and patient populations in institutions and centers operated 36 by the following employers: A city or county corrections department 37 as set forth in subsection (12) of this section, a public corrections 38 entity as set forth in subsection (12) of this section, the 39 p. 6 HB 1055.PL Washington state department of corrections, or the Washington state 1 department of veterans affairs; ((or))2 (f) Whose primary responsibility is to receive, process, 3 transmit, or dispatch 911 emergency and nonemergency calls for law 4 enforcement, fire, emergency medical, or other public safety 5 services, or to supervise those employees; or6 (g) Whose primary responsibility is to supervise members eligible 7 under this subsection.8 (20) "Membership service" means all service rendered as a member.9 (21) "Pension" means payments for life derived from contributions 10 made by the employer. All pensions shall be paid in monthly 11 installments.12 (22) "Plan" means the Washington public safety employees' 13 retirement system plan 2.14 (23) "Regular interest" means such rate as the director may 15 determine.16 (24) "Retiree" means any person who has begun accruing a 17 retirement allowance or other benefit provided by this chapter 18 resulting from service rendered to an employer while a member.19 (25) "Retirement" means withdrawal from active service with a 20 retirement allowance as provided by this chapter.21 (26) "Retirement allowance" means monthly payments to a retiree 22 or beneficiary as provided in this chapter.23 (27) "Retirement system" means the Washington public safety 24 employees' retirement system provided for in this chapter.25 (28) "Separation from service" occurs when a person has 26 terminated all employment with an employer.27 (29) "Service" means periods of employment by a member on or 28 after July 1, 2006, for one or more employers for which compensation 29 earnable is paid. Compensation earnable earned for ninety or more 30 hours in any calendar month shall constitute one service credit 31 month. Compensation earnable earned for at least seventy hours but 32 less than ninety hours in any calendar month shall constitute one-33 half service credit month of service. Compensation earnable earned 34 for less than seventy hours in any calendar month shall constitute 35 one-quarter service credit month of service. Time spent in standby 36 status, whether compensated or not, is not service.37 Any fraction of a year of service shall be taken into account in 38 the computation of such retirement allowance or benefits.39 p. 7 HB 1055.PL (a) Service in any state elective position shall be deemed to be 1 full-time service.2 (b) A member shall receive a total of not more than twelve 3 service credit months of service for such calendar year. If an 4 individual is employed in an eligible position by one or more 5 employers the individual shall receive no more than one service 6 credit month during any calendar month in which multiple service for 7 ninety or more hours is rendered.8 (c) Reduction efforts such as furloughs, reduced work hours, 9 mandatory leave without pay, temporary layoffs, or other similar 10 situations as contemplated by subsection (5)(b)(iii) of this section 11 do not result in a reduction in service credit that otherwise would 12 have been earned for that month of work, and the member shall receive 13 the full service credit for the hours that were scheduled to be 14 worked before the reduction.15 (30) "Service credit month" means a month or an accumulation of 16 months of service credit which is equal to one.17 (31) "Service credit year" means an accumulation of months of 18 service credit which is equal to one when divided by twelve.19 (32) "State actuary" or "actuary" means the person appointed 20 pursuant to RCW 44.44.010(2).21 (33) "State elective position" means any position held by any 22 person elected or appointed to statewide office or elected or 23 appointed as a member of the legislature.24 (34) "State treasurer" means the treasurer of the state of 25 Washington.26 NEW SECTION. Sec. 4. A new section is added to chapter 41.37 27 RCW to read as follows:28 (1) An employee of an employer as defined in RCW 41.37.010 who 29 was a member of the public employees' retirement system plan 2 or 30 plan 3 before June 1, 2024, and on June 1, 2024, meets the 31 eligibility requirements as set forth in RCW 41.37.010(19)(f) has the 32 following options during the election period defined in subsection 33 (2) of this section:34 (a) To remain in the public employees' retirement system in their 35 current plan; or36 (b) To become a member of the public safety employees' retirement 37 system plan 2 and be a dual member as provided in chapter 41.54 RCW. 38 Any service credit the employee accrued in the public employees' 39 p. 8 HB 1055.PL retirement system service credit may not be transferred to the public 1 safety employees' retirement system.2 (2) The "election period" is the period between January 1, 2024, 3 and March 1, 2024.4 (3) During the election period, employees who are employed by an 5 employer as defined in RCW 41.37.010 remain members of the public 6 employees' retirement system plan 2 or plan 3 until they 7 affirmatively elect to join the public safety employees' retirement 8 system. Members who elect to join the public safety employees' 9 retirement system as described in this section will have their 10 membership begin prospectively from the date of their election.11 (4) If, after September 1, 2024, the member has not made an 12 election to join the public safety employees' retirement system, he 13 or she will remain in his or her current plan in the public 14 employees' retirement system.15 (5) An employee who was a member of the public employees' 16 retirement system plan 1 on or before June 1, 2019, and on or after 17 June 1, 2024, is employed by an employer as defined in RCW 41.37.010 18 as an employee who meets the eligibility requirements included in RCW 19 41.37.010(19)(f), shall remain a member of the public employees' 20 retirement system plan 1.21 (6) All new employees hired on or after June 1, 2024, who become 22 employed by an employer as defined in RCW 41.37.010 as an employee 23 who meets the eligibility requirements included in RCW 24 41.37.010(19)(f) will become members of the public safety employees' 25 retirement system.26 NEW SECTION. Sec. 5. This act takes effect June 1, 2024.27 --- END --- p. 9 HB 1055.PL