Washington 2021-2022 Regular Session Status: Enacted 2 R cosponsors

SB 5791 — Concerning law enforcement officers' and firefighters' retirement system benefits.

Last action — Effective date 6/9/2022.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 11, 2022. Enacted.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 R).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

319 added · 41 removed

Plain-language change summary

The amended version of Bill SB 5791 introduces a tiered retirement benefit structure for new members of the retirement system, increasing the percentage of their final average salary they can receive after 15 years of service. Specifically, those with between 15 and 25 years of service will earn a higher multiplier of 2.5 percent for that period, which could significantly increase their retirement benefits. This change aims to enhance the attractiveness of the retirement plan for future law enforcement officers and firefighters, helping to recruit and retain personnel in these crucial roles.

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S-4045.1 SUBSTITUTE SENATE BILL 5791 State of Washington 67th Legislature 2022 Regular Session By Senate Ways & Means (originally sponsored by Senators Schoesler and Short) READ FIRST TIME 02/01/22.
S-3353.1 SENATE BILL 5791 State of Washington 67th Legislature 2022 Regular Session By Senators Schoesler and Short Read first time 01/11/22.
Referred to Committee on Ways & Means.
and adding a new section to chapter 41.26 RCW.
amending RCW 41.26.420, 41.26.463, 41.45.155, 41.45.158, 41.45.0604, and 41.26.802;
adding new sections to chapter 41.26 RCW;
and creating a new section.
NEW SECTION.
RCW 41.26.420 and 1993 c 517 s 2 are each amended to read as follows:
TIERED MULTIPLIER BENEFIT IMPROVEMENT.
(1) Except as provided in RCW 41.26.530, a member of the retirement system shall receive a retirement allowance equal to two percent of such member's final average salary for each year of service.
(2) Beginning January 16, 2023, members new to the retirement system after February 1, 2021, who earn more than 15 years of service credit shall receive a tiered multiplier retirement allowance as follows:
(a) Two percent of such member's final average salary for the first 15 years of service;
(b) Two and one-half percent of such member's final average salary for the 10 years of service after 15 years and up to 25 years;
and p.
1 SB 5791 (c) Two percent of such member's final average salary for years of service above 25 years.
(3) Members active in the retirement system on or before February 1, 2021, at retirement must make an irrevocable choice between the lump sum defined benefit in section 2 of this act or a tiered multiplier retirement allowance as follows:
(a) Two percent of such member's final average salary for the first 15 years of service;
(b) Two and one-half percent of such member's final average salary for the 10 years of service after 15 years and up to 25 years;
and (c) Two percent of such member's final average salary for years of service above 25 years.
(4) Any member who receives the tiered multiplier benefit in this section is not eligible for the lump sum defined benefit in section 2 of this act.
NEW SECTION.
Sec.
2.
A new section is added to chapter 41.26 RCW under the subchapter heading "plan 2" to read as follows:
LUMP SUM BENEFIT IMPROVEMENT.
(1) Members who are retired on or before February 1, 2021, will receive a one-time lump sum defined benefit of $100 per service credit month payable by January 31, 2023.
(a) Members who retired for an in the line of duty disability under RCW 41.26.470 shall receive the greater of the lump sum defined benefit of $100 per service credit month or a lump sum defined benefit of $20,000.
(b) A member's beneficiary is eligible for an in the line of duty death benefit under RCW 41.26.048.
If there is more than one eligible beneficiary the lump sum defined benefit will be distributed in accordance with RCW 41.26.048.
(c) If the member is deceased the member's survivor beneficiary under RCW 41.26.460 is eligible for this lump sum defined benefit.
(2) Members who are active in the plan on or before February 1, 2021, must make an irrevocable choice at retirement between the tiered multiplier benefit defined in RCW 41.26.420(3) or a one-time lump sum defined benefit of $100 per service credit month to be paid at retirement.
(a) Members who retire for an in the line of duty disability under RCW 41.26.470 and who elect to receive this lump sum defined benefit shall receive the greater of the lump sum defined benefit of p.
2 SB 5791 $100 per service credit month or a lump sum defined benefit of $20,000.
(b) A member's beneficiary eligible for an in the line of duty death benefit under RCW 41.26.048 and who elects to receive this lump sum defined benefit shall receive the greater of the lump sum defined benefit of $100 per service credit month or a lump sum defined benefit of $20,000.
If there is more than one eligible beneficiary the lump sum defined benefit will be distributed in accordance with RCW 41.26.048.
(c) For a beneficiary of a member who dies in service but not in an in the line of duty death, the distribution shall be made according to the member's beneficiary designation under this chapter.
(3) Members who are inactive on or before February 1, 2021, but who later return to membership must make an irrevocable choice at retirement between the tiered multiplier benefit in RCW 41.26.420 and this lump sum defined benefit.
(4) Members who receive a refund of contributions under RCW 41.26.540 are not eligible for this lump sum defined benefit.
(5) This lump sum defined benefit is exempt from judicial process and taxes under RCW 41.26.053.
(6) Any member who receives this lump sum defined benefit is not eligible for the tiered multiplier benefit in RCW 41.26.420.
Sec.
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3.
RCW 41.26.463 and 2014 c 91 s 1 are each amended to read as follows:
ANNUITY OPTION.
(1) At the time of retirement, plan 2 members may purchase an optional actuarially equivalent life annuity benefit from the (([Washington])) Washington law enforcement officers' and firefighters' ((retirement)) system plan 2 retirement fund established in RCW 41.50.075.
A minimum payment of twenty-five thousand dollars is required.
(2) Retirees, or their beneficiaries, who have received a one- time lump sum defined benefit under section 2 of this act may purchase an optional actuarially equivalent life annuity benefit from the Washington law enforcement officers' and firefighters' system plan 2 retirement fund established in RCW 41.50.075, with the money received from the lump sum defined benefit.
A minimum payment of $20,000 is required.
(3) Subject to rules adopted by the department, a member purchasing an annuity under this section must pay all of the cost p.
3 SB 5791 with an eligible rollover, direct rollover, or trustee-to-trustee transfer from an eligible retirement plan.
(a) The department shall adopt rules to ensure that all eligible rollovers and transfers comply with the requirements of the internal revenue code and regulations adopted by the internal revenue service.
The rules adopted by the department may condition the acceptance of a rollover or transfer from another plan on the receipt of information necessary to enable the department to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.
(b) "Eligible retirement plan" means a tax qualified plan offered by a governmental employer.
Sec.
4.
RCW 41.45.155 and 2009 c 561 s 6 are each amended to read as follows:
MINIMUM CONTRIBUTION RATES.
(1) Beginning July 1, 2011, a minimum contribution rate is established for the plans 2 and 3 normal cost as part of the basic employer contribution rate for the public employees' retirement system.
The minimum contribution rate for the plans 2 and 3 employer normal cost shall equal the total contribution rate required to fund eighty percent of the plans 2 and 3 employer normal cost as calculated under the entry age normal cost method.
This minimum rate, when applicable, shall be collected in addition to any contribution rate required to amortize past gain-sharing distributions in plan 3.
(2) Beginning July 1, 2011, a minimum contribution rate is established for the plan 2 normal cost as part of the basic employer contribution rate for the public safety employees' retirement system.
The minimum contribution rate for the plan 2 normal cost shall equal the total contribution rate required to fund eighty percent of the plan 2 normal cost as calculated under the entry age normal cost method.
(3) Beginning September 1, 2011, a minimum contribution rate is established for the plans 2 and 3 normal cost as part of the basic employer contribution rate for the school employees' retirement system.
The minimum contribution rate for the plans 2 and 3 employer normal cost shall equal the total contribution rate required to fund eighty percent of the plans 2 and 3 employer normal cost as calculated under the entry age normal cost method.
This minimum rate, p.
4 SB 5791 when applicable, shall be collected in addition to any contribution rate required to amortize past gain-sharing distributions in plan 3.
(4) Beginning September 1, 2011, a minimum contribution rate is established for the plans 2 and 3 normal cost as part of the basic employer contribution rate for the teachers' retirement system.
The minimum contribution rate for the plans 2 and 3 employer normal cost shall equal the total contribution rate required to fund eighty percent of the plans 2 and 3 employer normal cost as calculated under the entry age normal cost method.
This minimum rate, when applicable, shall be collected in addition to any contribution rate required to amortize past gain-sharing distributions in plan 3.
(5) A minimum contribution rate is established for the plan 2 normal cost as part of the basic employer and state contribution rate for the law enforcement officers' and firefighters' retirement system.
The council may not adopt changes to the minimum contribution rate for plan 2 of the law enforcement officers' and firefighters' retirement system under subsection (6) of this section.
On June 30th of each year, if the funded status of the law enforcement officers' and firefighters' retirement system plan 2 as measured by the most recent completed actuarial valuation performed by the office of the state actuary is:
(a) Less than 105 percent, then the minimum contribution rate for the employer and state normal cost shall equal the total contribution rate required to fund 100 percent of the plan 2 employer normal cost as calculated under the entry age normal cost method;
or (b) Greater than or equal to 105 percent, then the minimum contribution rate for the employer and state normal cost shall equal the total contribution rate required to fund 90 percent of the plan 2 employer normal cost as calculated under the entry age normal cost method.
(6) Upon completion of each biennial actuarial valuation, the state actuary shall review the appropriateness of these minimum contribution rates and recommend to the council any adjustments as may be needed due to material changes in benefits or actuarial assumptions, methods, or experience.
Any changes adopted by the council shall be subject to revision by the legislature.
Sec.
5.
RCW 41.45.158 and 2006 c 365 s 4 are each amended to read as follows:
p.
5 SB 5791 MINIMUM CONTRIBUTION RATES.
(1) Beginning July 1, 2009, a minimum contribution rate is established for the plans 2 and 3 normal cost as part of the required contribution rate for members of plan 2 of the public employees' retirement system.
The minimum contribution rate for the plans 2 and 3 employee normal cost shall equal the total contribution rate required to fund eighty percent of the plans 2 and 3 employee normal cost as calculated under the entry age normal cost method.
(2) Beginning September 1, 2009, a minimum contribution rate is established for the plans 2 and 3 normal cost as part of the required contribution rate for members of plan 2 of the school employees' retirement system.
The minimum contribution rate for the plans 2 and 3 employee normal cost shall equal the total contribution rate required to fund eighty percent of the plans 2 and 3 employee normal cost as calculated under the entry age normal cost method.
(3) Beginning September 1, 2009, a minimum contribution rate is established for the plans 2 and 3 normal cost as part of the required contribution rate for members of plan 2 of the teachers' retirement system.
The minimum contribution rate for the plans 2 and 3 employee normal cost shall equal the total contribution rate required to fund eighty percent of the plans 2 and 3 employee normal cost as calculated under the entry age normal cost method.
(4) A minimum contribution rate is established for the plan 2 normal cost as part of the basic member contribution rate for the law enforcement officers' and firefighters' retirement system.
The council may not adopt changes to the minimum contribution rate for plan 2 of the law enforcement officers' and firefighters' retirement system under subsection (5) of this section.
On June 30th of each year, if the funded status of the law enforcement officers' and firefighters' retirement system plan 2 as measured by the most recent completed actuarial valuation performed by the office of the state actuary is:
(a) Less than 105 percent, then the minimum contribution rate for the member normal cost shall equal the total contribution rate required to fund 100 percent of the plan 2 member normal cost as calculated under the entry age normal cost method;
or (b) Greater than or equal to 105 percent, then the minimum contribution rate for the member normal cost shall equal the total contribution rate required to fund 90 percent of the plan 2 member normal cost as calculated under the entry age normal cost method.
p.
6 SB 5791 (5) Upon completion of each biennial actuarial valuation, the state actuary shall review the appropriateness of these minimum contribution rates and recommend to the legislature any adjustments as may be needed due to material changes in benefits or actuarial assumptions, methods, or experience.
Sec.
6.
RCW 41.45.0604 and 2007 c 280 s 3 are each amended to read as follows:
FREEZE LEOFF 2 CONTRIBUTION RATES.
(1)(a) Not later than July 31, 2008, and every even-numbered year thereafter, the law enforcement officers' and firefighters' plan 2 retirement board shall adopt contribution rates for the law enforcement officers' and firefighters' retirement system plan 2 as provided in RCW 41.26.720(1)(a).
(b) For 2021-2023 and 2023-2025 fiscal biennia, contribution rates for the law enforcement officers' and firefighters' retirement system plan 2 may not exceed the rates adopted by the law enforcement officers' and firefighters' plan 2 retirement board in 2021.
(2) The law enforcement officers' and firefighters' plan 2 retirement board shall immediately notify the directors of the office of financial management and department of retirement systems of the state, employer, and employee rates adopted.
Thereafter, the director shall collect those rates adopted by the board.
The rates shall be effective for the ensuing biennial period, subject to any legislative modifications.
Sec.
7.
RCW 41.26.802 and 2019 c 366 s 2 are each amended to read as follows:
TRANSFER OF FUNDS.
(1) Prior to May 13, 2019, this section required certain transfers to be made to the local public safety enhancement account.
After May 13, 2019, except for the transfer in subsection (2) of this section, no further transfers will be made to the local public safety enhancement account pursuant to this section.
(2) On July 1, 2019, the state treasurer shall transfer the sum of three hundred million dollars from the law enforcement officers' and firefighters' plan 2 retirement fund to the local law enforcement officers' and firefighters' retirement system benefits improvement account.
(3) By June 30, 2022, the Washington state investment board shall transfer the difference between the value of the benefit enhancements p.
7 SB 5791 in this act as identified by the office of the state actuary and the value of the local law enforcement officers' and firefighters' retirement system benefits improvement account, from the law enforcement officers' and firefighters' system plan 2 retirement fund to the local law enforcement officers' and firefighters' retirement system benefits improvement account.
(4) By July 31, 2022, the Washington state investment board shall transfer the total available balance of the local law enforcement officers' and firefighters' retirement system benefits improvement account to the law enforcement officers' and firefighters' system plan 2 retirement fund.
The amount transferred under this subsection goes toward the benefit enhancements in this act.
NEW SECTION.
Sec.
8.
OFFSET LANGUAGE.
The transfer of funds in section 7 of this act is intended to pay the full cost of the benefit improvements in sections 1 and 2 of this act for current law enforcement officers' and firefighters' retirement system plan 2 members so that contribution rates under the plan's minimum funding policy for those members will not increase as a result of this benefit improvement.
To accomplish this goal, after the transfer of funds in section 7 of this act the state actuary must calculate a rate reduction to be applied to rates calculated in sections 4 and 5 of this act.
This rate must be calculated in time for it to go into effect on June 1, 2025, using any data, assumptions, and methods the state actuary believes are reasonable for this purpose.
NEW SECTION.
Sec.
9.
If there is more than one eligible beneficiary the lump sum defined benefit will be distributed in accordance with RCW 41.26.048.
If there is more than one eligible p.
p.
8 SB 5791 beneficiary the lump sum defined benefit will be distributed in accordance with RCW 41.26.048.
1 SSB 5791 (c) If the member is deceased the member's survivor beneficiary under RCW 41.26.160 is eligible for this lump sum defined benefit.
(c) If the member is deceased the member's survivor beneficiary under RCW 41.26.160 is eligible for this lump sum defined benefit.
2 SSB 5791
9 SB 5791
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Action History

  1. Effective date 6/9/2022.

  2. Chapter 168, 2022 Laws.

  3. Governor signed.

  4. Delivered to Governor.

  5. Speaker signed.

  6. President signed.

  7. Third reading, passed; yeas, 98; nays, 0; absent, 0; excused, 0.

  8. Rules suspended. Placed on Third Reading.

  9. Rules Committee relieved of further consideration. Placed on second reading.

  10. Referred to Rules 2 Review.

  11. Scheduled for public hearing in the House Committee on Appropriations at 01:30 PM

  12. APP - Majority; do pass.

  13. Executive action taken in the House Committee on Appropriations at 1:30 PM.

  14. Scheduled for public hearing in the House Committee on Appropriations at 03:30 PM

  15. Public hearing in the House Committee on Appropriations at 3:30 PM.

  16. First reading, referred to Appropriations.

  17. Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.

  18. Rules suspended. Placed on Third Reading.

  19. 1st substitute bill substituted (WM 22).

  20. Placed on second reading by Rules Committee.

  21. Passed to Rules Committee for second reading.

  22. Scheduled for public hearing in the Senate Committee on Ways & Means at 04:00 PM

  23. Minority; without recommendation.

  24. WM - Majority; 1st substitute bill be substituted, do pass.

  25. Executive action taken in the Senate Committee on Ways & Means at 4:00 PM.

  26. Scheduled for public hearing in the Senate Committee on Ways & Means at 04:00 PM

  27. Public hearing in the Senate Committee on Ways & Means at 4:00 PM.

  28. First reading, referred to Ways & Means.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 149 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (149)

149 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed 98 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 26000
Democrat 48000
Unaffiliated 24000
Total 98000
% of votes cast 100%0%0%0%
How each member voted (98)
Member Party Vote
Chambers — Yea
Chandler — Yea
Chopp — Yea
Cody — Yea
Dolan — Yea
Gilday — Yea
Harris-Talley — Yea
Hoff — Yea
Kirby — Yea
Klippert — Yea
Kraft — Yea
Kretz — Yea
Maycumber — Yea
McCaslin — Yea
Mosbrucker — Yea
Robertson — Yea
Sells — Yea
Sullivan — Yea
Sutherland — Yea
Vick — Yea
Wicks — Yea
Wilcox — Yea
Young — Yea
Johnson, J. — Yea
Alex Ramel Democrat Yea
Alicia Rule Democrat Yea
Amy Walen Democrat Yea
April Berg Democrat Yea
Bill Ramos Democrat Yea
Brandy Donaghy Democrat Yea
Cindy Ryu Democrat Yea
Dan Bronoske Democrat Yea
Dave Paul Democrat Yea
David Hackney Democrat Yea
Davina Duerr Democrat Yea
Debra Entenman Democrat Yea
Debra Lekanoff Democrat Yea
Drew Hansen Democrat Yea
Gerry Pollet Democrat Yea
Jake Fey Democrat Yea
Jamila Taylor Democrat Yea
Javier Valdez Democrat Yea
Jessica Bateman Democrat Yea
Joe Fitzgibbon Democrat Yea
Larry Springer Democrat Yea
Lauren Davis Democrat Yea
Laurie Jinkins Democrat Yea
Lillian Ortiz-Self Democrat Yea
Lisa Callan Democrat Yea
Liz Berry Democrat Yea
Marcus Riccelli Democrat Yea
Mari Leavitt Democrat Yea
Melanie Morgan Democrat Yea
Mia Gregerson Democrat Yea
Mike Chapman Democrat Yea
Monica Jurado Stonier Democrat Yea
My-Linh Thai Democrat Yea
Nicole Macri Democrat Yea
Noel Frame Democrat Yea
Roger Goodman Democrat Yea
Sharon Shewmake Democrat Yea
Sharon Tomiko Santos Democrat Yea
Sharon Wylie Democrat Yea
Shelley Kloba Democrat Yea
Steve Bergquist Democrat Yea
Steve Tharinger Democrat Yea
Strom Peterson Democrat Yea
Tana Senn Democrat Yea
Tarra Simmons Democrat Yea
Timm Ormsby Democrat Yea
Tina Orwall Democrat Yea
Vandana Slatter Democrat Yea
Alex Ybarra Republican Yea
Andrew Barkis Republican Yea
Carolyn Eslick Republican Yea
Chris Corry Republican Yea
Cyndy Jacobsen Republican Yea
Dan Griffey Republican Yea
Drew MacEwen Republican Yea
Drew Stokesbary Republican Yea
Ed Orcutt Republican Yea
Jenny Graham Republican Yea
Jeremie Dufault Republican Yea
Jim Walsh Republican Yea
Joe Schmick Republican Yea
Joel McEntire Republican Yea
Keith Goehner Republican Yea
Mark Klicker Republican Yea
Mary Dye Republican Yea
Matt Boehnke Republican Yea
Michelle Valdez Republican Yea
Mike Steele Republican Yea
Mike Volz Republican Yea
Paul Harris Republican Yea
Peter Abbarno Republican Yea
Rob Chase Republican Yea
Skyler Rude Republican Yea
Tom Dent Republican Yea

Official roll call →

Passed 49 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 18000
Republican 13000
Democrat 18000
Total 49000
% of votes cast 100%0%0%0%
How each member voted (49)
Member Party Vote
Billig — Yea
Brown — Yea
Carlyle — Yea
Das — Yea
Frockt — Yea
Hawkins — Yea
Honeyford — Yea
Keiser — Yea
Kuderer — Yea
Mullet — Yea
Padden — Yea
Randall — Yea
Rivers — Yea
Rolfes — Yea
Sefzik — Yea
Sheldon — Yea
Van De Wege — Yea
Wilson, L. — Yea
Annette Cleveland Democrat Yea
Bob Hasegawa Democrat Yea
Claire Wilson Democrat Yea
Derek Stanford Democrat Yea
Jamie Pedersen Democrat Yea
Jesse Salomon Democrat Yea
Joe Nguyen Democrat Yea
John Lovick Democrat Yea
June Robinson Democrat Yea
Lisa Wellman Democrat Yea
Liz Lovelett Democrat Yea
Manka Dhingra Democrat Yea
Marko Liias Democrat Yea
Rebecca Saldaña Democrat Yea
Steve Conway Democrat Yea
T'wina Nobles Democrat Yea
Victoria Hunt Democrat Yea
Yasmin Trudeau Democrat Yea
Chris Gildon Republican Yea
Curtis King Republican Yea
Jeff Holy Republican Yea
Jeff Wilson Republican Yea
Jim McCune Republican Yea
John Braun Republican Yea
Judy Warnick Republican Yea
Keith Wagoner Republican Yea
Mark Schoesler Republican Yea
Perry Dozier Republican Yea
Phil Fortunato Republican Yea
Ron Muzzall Republican Yea
Shelly Short Republican Yea

Official roll call →

Subjects

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Frequently asked questions

Who sponsors SB 5791?
SB 5791 is sponsored by Shelly Short (Republican) and Mark Schoesler (Republican).
What is the current status of SB 5791?
This bill has been enacted into law. Introduced January 11, 2022. Enacted.
Where can I track SB 5791?
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