(1) The boards of regents of the state
universities, the boards of trustees of the regional universities
and of The Evergreen State College, the state board for community
and technical colleges, and the *higher education coordinating
board are authorized and empowered:
(a) To assist the faculties and such other employees exempt
from civil service pursuant to **RCW 41.06.070 (1)(cc) and (2)
as any such board may designate in the purchase of old age
annuities or retirement income plans under such rules as any such
board may prescribe, subject to the restrictions in subsection
(2) of this section. County agricultural agents, home
demonstration agents, 4-H club agents, and assistant county
agricultural agents paid jointly by the Washington State
University and the several counties shall be deemed to be
full-time employees of the Washington State University for the
purposes of this section;
(b) To provide, under such rules as any such board may
prescribe for the faculty members or other employees exempt from
civil service pursuant to *RCW 41.06.070 (1)(cc) and (2) under
its supervision, for the retirement of any such faculty member or
other exempt employee on account of age or condition of health,
retirement on account of age to be not earlier than the
sixty-fifth birthday: PROVIDED, That such faculty member or such
other exempt employee may elect to retire at the earliest age
specified for retirement by federal social security law:
PROVIDED FURTHER, That any supplemental payment authorized by (c)
of this subsection and paid as a result of retirement earlier
than age sixty-five shall be at an actuarially reduced rate; and
shall be provided only to those persons who participate in an
annuity or retirement income plan under (a) of this subsection
prior to July 1, 2011;
(c) To pay only to those persons who participate in an
annuity or retirement income plan under (a) of this subsection
prior to July 1, 2011, or to his or her designated
beneficiary(s), each year after his or her retirement, a
supplemental amount which, when added to the amount of such
annuity or retirement income plan, or retirement income benefit
pursuant to RCW 28B.10.415, received by the retired person or the
retired person's designated beneficiary(s) in such year, will not
exceed fifty percent of the average annual salary paid to such
retired person for his or her highest two consecutive years of
full-time service under an annuity or retirement income plan
established pursuant to (a) of this subsection at an institution
of higher education: PROVIDED, HOWEVER, That if such retired
person prior to retirement elected a supplemental payment
survivors option, any such supplemental payments to such retired
person or the retired person's designated beneficiary(s) shall be
at actuarially reduced rates: PROVIDED FURTHER, That if a
faculty member or other employee of an institution of higher
education who is a participant in a retirement plan authorized by
this section dies, or has died before retirement but after
becoming eligible for retirement on account of age, the
designated beneficiary(s) shall be entitled to receive the
supplemental payment authorized by this subsection to which such
designated beneficiary(s) would have been entitled had said
deceased faculty member or other employee retired on the date of
death after electing a supplemental payment survivors option:
PROVIDED FURTHER, That for the purpose of this subsection, the
designated beneficiary(s) shall be (i) the surviving spouse of
the retiree; or, (ii) with the written consent of such spouse, if
any, such other person or persons as shall have an insurable
interest in the retiree's life and shall have been nominated by
written designation duly executed and filed with the retiree's
institution of higher education.
(2) Boards are prohibited from offering a purchased annuity
or retirement income plan authorized under this section to
employees hired on or after July 1, 2011, who have retired or are
eligible to retire from a public employees' retirement system
described in RCW 41.50.030. The *higher education coordinating
board shall only offer participation in a purchased annuity or
retirement income plan authorized under this section to employees
who have previously contributed premiums to a similar qualified
plan.
(3) During the 2011 legislative interim, the select
committee on pension policy shall evaluate the suitability and
necessity of the annuity and retirement plans authorized under
this chapter for employees in various positions within higher
education institutions. The select committee shall report its
findings, including any recommendations for restrictions on
future plan membership, to the ways and means committees of the
house of representatives and the senate no later than December
31, 2011.
[2011 1st sp.s. c 47 § 2; 2010 c 21 § 1; 1979 ex.s. c 259 § 1; 1977 ex.s. c 169 § 15; 1975 1st ex.s. c 212 § 1; 1973 1st ex.s. c 149 § 1; 1971 ex.s. c 261 § 1; 1969 ex.s. c 223 §28B.10.400 . Prior: 1965 c 54 § 2; 1957 c 256 § 1; 1955 c 123 § 1; 1947 c 223 § 1; 1943 c 262 § 1; 1937 c 223 § 1; Rem. Supp. 1947 § 4543-11. Formerly RCW 28.76.240.]
NOTES:
Reviser's note: *(1) The higher education coordinating
board was abolished by 2011 1st sp.s. c 11 § 301, effective July
1, 2012.
**(2) RCW 41.06.070 was amended by 2011 1st sp.s. c 16 §
22, 2011 1st sp.s. c 39 § 4, and 2011 1st sp.s. c 43 § 1010,
changing subsection (1)(cc) to subsection (1)(z).
Intent -- 2011 1st sp.s. c 47: "The legislature intends that the retirement and annuity programs of the state's institutions of higher education be revised for future participants to reflect changes that have already occurred in state pension plans. The legislature intends also that newly hired employees who are eligible for participation in an annuity or retirement income plan offered by a higher education institution have an opportunity to participate in either (1) that plan without a supplemental benefit under RCW 28B.10.400(1)(c), or (2) the public employees' retirement system plan 3 or the teachers' retirement system plan 3. Plan 3 provides a combination of defined contribution and defined benefit pension, which will be available for newly hired employees. Further, the legislature intends that effective July 1, 2011, state funding for annuity or retirement income plans under RCW 28B.10.400 will not exceed six percent of salary. The legislature also intends to reduce the expanded postretirement employment provisions for members of the public employees' retirement system plan 1 and the teachers' retirement system plan 1 that were temporarily expanded due to the shortage of qualified workers in particular teaching and public employment categories, and eliminate postretirement employment exceptions that existed for annuity or retirement income plan-covered positions that have been the subject of abuse." [2011 1st sp.s. c 47 § 1.]
Effective dates -- 2011 1st sp.s. c 47: "Except for sections 10 and 19 of this act which take effect January 1, 2012, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2011." [2011 1st sp.s. c 47 § 23.]
Effective date -- 1979 ex.s. c 259: "This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately." [1979 ex.s. c 259 § 5.]
Severability -- 1979 ex.s. c 259: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1979 ex.s. c 259 § 4.]
Severability -- Nomenclature -- Savings -- 1977 ex.s. c 169: See notes following RCW 28B.10.016.
Severability -- 1973 1st ex.s. c 149: "If any provision of this 1973 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [1973 1st ex.s. c 149 § 9.]
Appropriation -- 1973 1st ex.s. c 149: "The sum of $1,611,650 is hereby appropriated from the general fund for the purpose of carrying out this 1973 amendatory act, to be allocated by the governor to the institutions of higher education." [1973 1st ex.s. c 149 § 10.]
Effective date -- 1973 1st ex.s. c 149: "This 1973 amendatory act shall take effect on July 1, 1974." [1973 1st ex.s. c 149 § 11.]
Severability -- 1971 ex.s. c 261: "If any provision of this 1971 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [1971 ex.s. c 261 § 7.]