SESSION LAWS, 1947.[C.80

CHAPTER 80.[ H. B. 5.1

TEACHERS' RETIREMENT SYSTEM.

AN ACT relating to the Washington State Teachers' RetirementSystem, repealing chapter 221, Laws of 1937, as amendedby chapters 40 and 86, Laws of 1939, chapter 97, Laws of1941, and chapter 110, Laws of 1943 (secs. 4995-1 to4995-15a, incl., Rem. Rev. Stat.; sees. 773-1 to 773-25,incl., PPC), and making an appropriation, and declaringthat this act shall take effect July 1, 1947.

Be it enacted by the Legislature of the State ofWash irtqton:

SECTION 1. The following words and phrases as Definitions.used in this chapter, unless a different meaning isplainly required by the context, shall have the fol-lowing meaning:

(A) "Accumulated Contributions" means the ,Accumnu-sum of all regular annuity contributions together butions,"

with regular interest thereon less cost of operation.(B) "Actuarial Equivalent" means a benefit of "Actuarial

equal value when computed upon the basis of such euvln.

mortality tables as shall be adopted by the Board ofTrustees and regular interest.

(C) "Annuity" means the moneys payable per "Annuity."year during life by reason of accumulated con~tribu-tions of a member.

(D) "Contract" means any agreementi for ser- "Contract.'vice and compensation between a member and anemployer.

(E) "Creditable Service" means membership "Creditable

service plus prior service for which credit is allow- service."

able.(F) "Disability Allowance" means monthly pay- "Disability,allowance.

ments during disability.(G) "Earnable Compensation" means the full "Earnable

rate of compensation that would be paid. to a mem- tion."

ber if he worked the full normal working time dur-ing the school year, except that any part of any sal-ary in excess of thirty-six hundred dollars ($3600)

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per annum shall be excluded in determining theearnable compensation of a member. In all caseswhere compensation includes maintenance theBoard of Trustees shall fix the value of that part ofthe compensation not paid in money.

"Employer." (H-) "Employer" m~eans the State of Washing-ton, the school district, or any agency of the State ofWashington by which the member is paid.

"Fisca~l (I) "Fiscal Year" means a year which beginsyear." July 1 and ends June 30 of the following year.

"Former (J) "Former State Fund" means the state re-state fund." tirement fund in operation for teachers under chap-

ter 187, Laws of 1923, as amended.Local (K) "LclFn"means an ftelclre-fund.""LclFn"ayothlcl

tirement funds for teachers operated in any schooldistrict in accordance with the provisions of chap-ter 163, Laws of 1917, as amended.

"Member," (L) "Member" means any teacher included inthe membership of the retirement system. Also,any other employee of the public schools who, onthe effective date of this act, had not elected toexempt himself from membership and who, priorto that date, had by an authorized payroll deduc-tion contributed to the annuity fund.

"Membership (M) "Membership Service" means service ren-service." dered subsequent to the first date of eligibility of a

person to membership in the retirement system."Pension." (N) "Pension" means the moneys payable per

year during life from the pension fund.fund." (0) "Pension Fund" means a fund from which

all pension obligations are to be paid."Pension (P) "Pension Reserve Fund" is a fund in thefund." state treasury in which shall be accumulated an

actuarial reserve adequate to meet present andfuture pension liabilities of the system.

"Prior (Q) "Prior Service" means service renderedservice." prior to the first date of eligibility to membership in"Prior the retirement system for which credit is allowable.service con- (R) "Prior Service Contributions" means con-tributions."

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SESSION LAWS, 1947. EH 0

tributions made by a member to secure credit forprior service.

(S) "Public School" as used in this act shall "Public

mean any institution or activity operated by the school."

State of Washington or any instrumentality or politi-cal subdivision thereof employing teachers exceptthe University of Washington and the State Collegeof Washington.

(T) "Regular Contributions" means the amounts "Regularcontribu-

required to be deducted from the compensation of a tions."

member and credited to his individual account inthe annuity fund.

(U) "Regular In~terest" means the interest on "Regular

funds of the retirement system for the current school interest."

year and such other earnings as may be appliedthereon by the Board of Trustees,

(V) "Retirement Allowance" means the sum of "Retirementallowance,"

the annuity and pension or any optional benefitspayable in lieu thereof.

(W) "Retirement System" means the Washing- "Retirement

ton State Teachers' Retirement System. system."

(X) "Service" means the time during which a "Service."

member has been employed by an employer forcompensation.

(Y) "Teacher" means any person qualified to "Teacher."

teach who is engaged by a public school in an instruc-tional, administrative, or supervisory capacity, in-cluding, state, county, city superintendents andtheir assistants; and in addition thereto any qualifiedschool librarian, any registered nurse or any fulltime school doctor who is employed by a publicschool and renders service of an instructional or edu-cational nature.

SEC. 2. The name of the retirement system pro- Title

vided for in this act shall be the "Washington State designated.

Teachers' Retirement System" and by this nameall of its business shall be transacted and all of its

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funds invested and all of its cash, securities andother property held.

Assets SEC. 3. All of the assets of the retirement sys-ctoi tern shall be credited according to the purposes forfunds. which they are held, to one of two (2) funds to

be maintained in the state treasury, namely, theteachers' retirement pension reserve fund and theti.achers' retirement fund. In the records of theteachers' retirement system the teachers' retirementfund shall be subdivided into the annuity fund, thepension fund, the disability reserve fund and theexpense fund.

Administra- SEC. 4. The general administration and respon-tion of act. sibility for the proper operation of the retirement

system are vested in a Board of Trustees; the mem-bers of the Board of Trustees shall be the StateSuperintendent of Public Instruction, ex officio, the

Board of State Insurance Commissioner, ex officio, and fivetrustees. members of the retirement system to be chosen by

the State Board of Education for a term of threeMembers. years, and at least three of said members shall be

classroom teachers.

Term of SEC. 5. Upon expiration of the term of office ofoffice. a trustee of the retirement system a successor shall

be appointed by the State Board of Education for aterm of three years., Any vacancy in the Board of

Vacancies. Trustees shall be filled by the State Board of Edu-cation by the appointment of a member for the un-expired term, except in the case of an ex officiomember.

Compensa- SEC. 6. The members of the Board of Trusteestion.

shall serve without compensation but they shall bereimbursed from the expense fund for all necessaryexpenses which they may incur through service onth'e board.

SEC. 7. Each member of the Board of Trusteesshall within ten days after his appointment or elec.

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SESSION LAWS, 1947. LH 0

tion take an oath of office that so far as it devolvesupon him he will diligently and honestly administer oath~ of

the affairs of said board, and that he will not know- office.

ingly violate or willingly permit to be violated anyprovisions of the law applicable to the retirementsystem. Such oath shall be subscribed to by themembers making it and certified by the officer beforewhom it is taken and immediately filed in the officeof the Secretary of State.

SEC. 8. Each trustee shall be entitled to one vote Votes.

in the board. Four favorable votes shall be neces-sary for a decision by the trustees at any meeting of Quoru..the board.

SEC. 9. The State Treasurer, the State Auditor, Ex officiotreasurer,

and the Attorney General shall be ex officio trea- auditor and

surer, auditor and legal adviser, respectively, of the legal advisor.

Board of Trustees and shall be liable respectivelyupont their official bonds for the faithful performanceof their duties under this chapter, but no chargeshall be made for this service.

bv".. 19. The Board of Trustees shall from its Chairman.

membership annually at the first meeting in Julyelect a chairman. The board shall by a majorityvote of all its members appoint a secretary-managerwho shall not be a member of the board and who secretary-

shall serve until a successor is appointed. The sec- mngr

retary-manager shall engage, upon authorization ofthe Board of Trustees, such clerical and technicalservices as shall be required to transact the businessof the retirement system. The compensation of all Compensa-

persons engaged or authorized by the Board of Trus-tin

tees and all other e':penses of the board necessaryfor the operation of the retirement system shall bepaid at such rates and in such amounts as the Boardof Trustees shall approve.

SEC. 11. The Board of Trustees shall keep in con- Keeping ofdata for

venient form such data as shall be necessary for actuarial

actuarial evaluation of the various funds of the re-evlain

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CH. 80.]SESSION LAWS, 1947.

tirement system and for checking the experienceof the retirement system.

Record. SEC. 12. The Board of Trustees shall keep a rec-ord of all its proceedings which shall be open to

Aunual public inspection. It shall publish annually on or be-report. fore the first day of January a report showing the

fiscal transactions of the retirement system for thepreceding school year; the amount of the accumu-lated cash and securities of the system, and the lastbalance sheet showing the financial condition of thesysi em by means of an actuarial valuation of theassets and liabilities of the retirement system.

Medical SEC. 13. The Board of Trustees shall designate adiretor. medical director. If required, other physicians may

be employed to report on special cases. The medicaldirector shall arrange for and pass upon all medicalexaminations required under the provisions of thisact; he shall investigate all essential statements andcertificates by or on behalf of a member in connec-tion with an application for a disability allowance,

Reports, and shall report in writing to the Board of Trusteeshis conclusions and recommendations upon all mat-ters referred to him.

Actuary. SEC. 14. The Board of Trustees shall designatean actuary who shall be the technical adviser of theBoard of Trustees on matters regarding the opera-tion of the funds of the system and shall performsuch other duties as are required in connection there-with.

Actuarial SEC. 15. Before the year 1951, and at least onceinvestigation,valuation and in each five-year period thereafter, the actuary shalladoption oftables. make an actuarial investigation into the mortality,

earnable interest, service and compensation expe-rience of the members and beneficiaries of the retir-ment system, and shall make a valuation of the assetsand liabilities of the funds of the system; taking intoaccount the results of such investigation and valua-tion, the Board of Trustees shall adopt for the re-

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SESSION LAWS, 1947.[C.80

tirement system such tables as shall be deemednecessary.

SEC. 16. The Board of Trustees shall, from time Rules and

to time, establish rules and regulations for the ad- regulations.

ministration of the funds created by this act and forthe transaction of its business. The Board of Trus-tees shall be empowered within the limits of this act Eligibility.

to decide on all questions of eligibility.

SEC. 17. The Board of Trustees shall hold regu- Board

lar meetings on the first Saturday which is not ametnsholiday of January, April, July and October of eachyZ .i, and may hold as many other meetings as maybe found necessary to properly transact the businessof the retirement system. Special meetings may becalled by the chair-man of the board either on his owninitiative or at the request in writing of four othermembers of the Board of Trustees.

SEC. 18. At each regular meeting, the Board of Autho~riza-

Trustees shall authorize payment of retirement al- ent oFaallowances.

lowances, disability allowances, salaries and otherregular disbursements to be made during the suc-ceeding three months. At the first regular meetingin each fiscal year, the board shall designate two of vouchers.its members whose signatures shall appear upon itsvouchers. Retirement and disability allowances shallbe paid monthly.

SEC. 19. From interest and other earnings on the Interest and

moneys of the retirement system, at the close of eacheangsfiscal year the Board of Trustees shall make suchallowance of regular interest on the balance whichwas on hand at the beginning of the fiscal year ineach of the funds as they may deem advisable: Pro-vided, That no interest shall be credited to the ex-pense fund.

SEC. 20. The Board of Trustees shall be the trus- Investmentby State

tees of the several funds created by this act and shall F nance

authorize the State Finance Committee to invest and cmite

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reinvest such funds, according to the requirementsfor the investment of permanent school funds; sub-

Reinvest- ject to those requirements, the State Finance Com-mittee shall have full power to hold, purchase, sell,assign, transfer and dispose of any of the securitiesand investments in which any of the funds createdherein shall have been invested, as well as the pro-ceeds of said investments and any moneys belongingto said funds: Provided, That the State Finance

School Committee shall have power to invest these funds inwvarranlts. school warrants.

Examination SEC. 21. The Insurance Commissioner shall, atby Insur-ance comn- least every three years, have an examination made

misionr. of the Teachers' Retirement funds by his departmentexaminers and actuary, in the same manner in whichhe examines licensed insurance companies in the

Report. State of Washington, and shall file a report of hisfindings with the Board of Trustees of the Teachers'Retirement System, the Governor, the Attorney Gen-eial and the State Treasurer.

State SEC. 22.~ The treasurer of the state shall be thecustodian custodian of all moneys received by him for the re-of funds.

tirement system. All payments from several fundsof the retirement system shall be made only uponvouchers signed by two members of the Board of

Payments Trustees. A duly attested copy of a resolution byby voucher, the Board of Trustees designating those members

and bearing on its face specimen signatures of thoseResolution members shall be filed with the State Auditor as histo be filiedwith authority for issuing warrants upon such vouchers.

No voucher shall be drawn unless it has been pre-viously authorized by resolution of the Board ofTrustees.

Trustee or SEC. 23. No trustee or employee of the Board ofofB.Oard Trustees shall become an endorser or sueyor an

not to be srtendorser obligor for moneys loaned by the Board of Trustees.or surety.

SEC. 24. All teachers employed in the publicschools shall be members of the system except those

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SESSION LAWS, 1047. [H 0

who, prior to the effective date of this act, shall have All teach-er, are

exempted themselves unless such exempted teachers members.shall, prior to January 1, 1948, or thereafter withinsix months from~ the date of re-employment by a Exemptions.

public school file with the Board of Truste~es a formalwritten request that their exemption certificates becancelled.

SEC. 25. Under such rules and regulations as the Service

Board of Trustees shall adopt, each teacher, upon be- be filed.

coming a member of the retirement system, shall filewith the Board of Trustees during his first year ofservice a detailed statement of all services as ateacher rendered by him in this state and elsewhereunder the jurisdiction of the government of theUnited States prior to becoming a member, togetherwith a statement of such other facts as the boardshall require. The Board of Trustees may, at the Board may

acceptoption of a member, accept the service record of a record of

member ofmember of a local fund or the former state fund in other fund.

lieu of such detailed statement; and issue a priorservice certificate to the applicant for such priorservice.

SEC. 26. Any member who serves the United Military,naval or air

States as a member of its military, naval or air ser- service forthe United

vice, may upon becoming re-employed in the public Sttes.

schools, receive credit for such service upon present-ing satisfactory proof, and contributing to the an-nuity fund, either in a lump sum or installments,such amounts as shall be determined by the Boardof Trustees.

SEC. 27. Service rendered for four fifths (4/5) service ren-

or more of the official school year of the school dis of school

trict or institution in which a teacher is employedyershall be credited as a year's service regardless of thelength of the school term, but in no case shall morethan one year of service be creditable for servicerendered in one fiscal year. Service rendered forless than four fifths (41r) of the official school year

[ 557 J

[CH. 80.

Cii.80.)SESSION LAWS, 1947.

Service ren- shall be credited for that portion of the school yearthan 4/f. of for which it was rendered: Provided, That no ser-

scholyer.vice of less than twenty (20) days in any school yearMinimum shall be creditable.service.

Service SEC. 28. As soon as practicable after the filing ofcerifeae. statements of services, the Board of Trustees shall

determine the number of years of service with whichan applicant shall be credited and shall issue a priorservice certificate to the applicant therefor. Themember shall be bound by the terms of this certifi-

Modification teulsor correc- Cateuls within one year of the date of issuancetion ofcertificate, thereof he shall request the Board of Trustees to

modify or correct the same.

Credit for SEC. 29. No credit shall be given for servicesprior ser-vices rendered in a district which at the time such serviceconditioned.

was rendered was under the jurisdiction of a localfund or the former state fund or under the Teachers'Retirement System as it existed immediately priorto the effective date of this act, unless contributionswere made to such local fund or the former statefund or retirement system during such time, exceptupon making the contributions as provided undersections 32 and 38 hereof.

Limitations SEC. 30. A total of not more than ten years ofon servicecredit, service outside of the state is to be credited to a

member who has entered public school employmentin this state subsequent to April 1, 1938, and not morethan fifteen years of service to a member who en-tered public school employment in this state prior tothe above date. No member who establishes out-of-state service credit after the effective date of thisact shall at retirement for pension payment purposesbe allowed credit for out-of-state service in excessof the number of years credit which he shall haveearned in the public schools of the State of Wash-ington.

SEC. 31. Any member who has rendered servicefor which credit has not been previously established

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SESSION LAWS, 1947. [H 0

may apply for such service credit prior to January 1, Service not1948, or, if not employed on the effective date of this prvoul

act, within the first six months of his re-employment.

SEC. 32. Any teacher who leaves the state after Re-eniploy.

becoming a mnember, upon his becoming re-employed leaving

in the public schools of the state, may be creditedwith membership service in an amount, which whenadded to the out-of-state credits for prior serviceshall not exceed the allowable total, conditionedupon satisfactory proof and upon contribution to theannuity fund. Service rendered in the State Of Service rn

dered priorWashington subsequent to April 1, 1938, for which to April 1,

credit has not been established prior to the effective198date of this act shall upon the establishment of suchcredit be paid for on the same basis together withregular interest as would have been paid had suchservice been rendered under the retirement system.

SEC. 33. The Board of Trustces may allow credit Leave of

for leave of absence for professional preparation to absence.

a member taking such leave of absence subsequentto last becoming a member, upon satisfactory proofof such leave of absence and the payment of contri- Proof of

payentsbutions to the annuity fund in such an amount, either requ.ir ed.

in a lump sum or in installments approved by theBoard of Trustees, as would have been paid had suchmember been employed regularly in the publicschools of this state: Provided, That not more than Maximum

leaves oftwo such leaves of absence may be granted to any absence.

member, and not more than one such leave may begranted in any ten-year period of service.

SEC. 34. Creditable service of a member at re- Creditableservice of

tirement shall consist of the membershipsevcmmbrarendered by him for which credit has been allowed ,reimntand also, if he has a prior service certificate that isin full force and effect, the amount of the servicecertified on~ his prior service certificate.

SEC. 35. Throughout each year during which he contributionby members

is em;,,Aoyed each member shall contribute five per to disabilityreserve fnd

[559]1

[CH. 80.

CH. 80.)SESSION LAWS, 1947.

cent (5%) of his earnable compensation. Thesecontributions shall be placed in the annuity anddisability reserve funds in the proportions specifiedin section 45 of this act.

Contribution SEC. 36. Throughout each year during which heto be suf-Wicent to is employed each member except one who hasjrovide

enefits. reached age sixty (60) or has thirty (30) years ofcreditable service shall contribute such sum as will,with regular interest, create a fund sufficient accord-ing to the actuarial tables adopted by the Board ofTrustees to provide disability benefits for the mem-bers whose claims will be approved by the Boardof Trustees during that year. These accumulationsshall be placed in the disability reserve fund.

Transfers by SEC. 37. The State Treasurer, upon the certificate.StateTreasurer. of the Board of Trustees, shall annually transfer from

the pension reserve fund to the teachers' retirementfund that portion of the funds accumulated in thepension reserve fund which since the date of thelast preceding transfer has become allocable underthe actuarial tables for the payment of currentpensions to all members who shall have retired.

Pension re- SEC. 38. There shall be placed in the pensionsere fnd.reserve fund all appropriations made by the legis-

lature for the purpose of establishing and maintain-ing an actuarial reserve and all gifts and bequeststo the pension reserve fund, and contributions ofpersons entering the retirement system who haveestablished prior service credit. Members establish-

Contribu- ing prior service credit shall contribute to thepensio pension reserve f und as follows:

For the first ten (10) years of prior service $15.00per year;

For the second ten (10) years of prior service$30.00 per year;

For the third ten (10) years of prior service$45.00 per year.

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SEC. 39. Contributions for prior service credits Contribu-tions formay be made in a lump sum or in monthly install- prior service

ments approved by the Board of Trustees. At least ..redits

twenty per cent (20%,") of the total amount due shallbe paid at the time of application for prior servicecredits. Any unpaid installments at the time the Unpaid in-

member is retired for service or disability shall con- tImns

stitute a first, paramount and prior lien against hisretirement allowance.

SEC. 40. At the regular July meeting next pre- Estima~tes forbugtand

ceding a regular session of the legislature the Board aFPr o pr isa

of Trustees shall prepare an estimate of the totaldisbursements of the retirement system to be madeduring the next biennium, separately showing theamounts required for payment of pensions, annu-ities, disability allowances and expenses. In additionthe board shall compute the amount necessary to beappropriated during the next legislative session toestablish and maintain an actuarial reserve adequateto meet all pe .ion commitments of the system.These estimates must be submitted to the Governorby the secretary-maiiagew of the retirement systemfor inclusion in the budget. The legislature shall Appropria-

make the necessary appropriations to the teachers' tos

retirement fund and the pension reserve fund afterconsidering the estimates as prepared and sub..mitted and shall appropriate from the teachers' re-tirement fund the amounts to be expended duringthe next biennium.

SEC. 41. At the close of each fiscal year the Board Deductions

of Trustees shall withdraw from the pension fund pens-) fund.

and the annuity fund in equal amounts a sum suf -ficient to defray the expenses of the retirement sys-tem as estimated by them for the ensuing year andplace that amnount in the expense fund. The deduc-tions from the annuity fund less withdrawal feesshall be prorated from the annuity contributions ofthe members for the year just closed.

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Cii.80.3SESSION LAWS, 1947.

Report by SEC. 42. On or before the first of September inemployer, each year every employer shall file a report with the

Board of Trustees of the retirement system on a formprovided, statin~g the name of the employer and withrespect to each employee: (1) The full name, (2)the address, (3) th date of commencement of em-ployment, (4) the length of the employment con-tract, (5) the length of the school term, (6) theannual salary, and (7) such other information as the

Notificationborshlsae ntfof system badsllrequire, and at the saetime ntfto newernploytes. each new employee in writing with reference to the

Washington State Teachers' Retirement System andthat an application for prior service credit may befiled with the Board of Trustees thereof on a formfurnished by the board. On the fifth day of eachsucceeding month during the school year the em-ployer shall report any changes in personnel to theboard. The county superintendent shall perform

County sup- the duties imposed by this section for the employerserintendent.

in second and third class school districts and thecity superintendents for the employers in first classschool districts. The chief executive officers of otherinstitutions shall perform such duties.

Salary SEC. 43. Every officer authorized to issue salarydeductions. warrants to teachers shall deduct from each salary

payment to any member five per cent (5 c) of theamount of salary paid up to thirty-six hundred dol-lars ($3000) in any fiscal year on account of the dis-ability reserve and annuity funds.

Darangs to SEC. 44. Onor before the tenth of such monthsStateTreasurer on as are designated by the trustees of the system for

dedctins.remittance, the officers authorized to issue salarywarrants to members shall draw warrants in favorof the State Treasurer out of the appropriate funds,covering the amounts of deductions made from thesalaries of members of the retirement system andforthwith remit them to the trustees of the systemaccompanied by a report listing the names of the

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SESSION LAWS, 1947. [H 0

members and the amount of each deduction, alsothe serial number, date and amount of each warrantremitted,

SEC. 45. The office of the retirement system shall ApplIicationapply the amounts received first to pay the contribu- tions.

tions of each member to the disability reserve fundas provided in section 36 of this act and the re-mainder as contributions to the annuity fund, andthe treasurer shall deposit the sums received in theappropriate funds according to the segregation somade. The office of the retirement system shall Registration

an trans-register all warrants received and forthwith transmit mita o

them to the State Treasurer, with a detailed report Treasurer.

segregating registered and cash warrants. The StateTreasurer shall place the proceeds from these war-rants to the credit of the proper funds of the retire-ment system.

SEC. 46. The deductions from salaries of mem- Deductionnot diminu-

bers of the retirement system for their contributions tion of pay.

to the system are not c onsidered diminution of payand every member is conclusively presumed to con-sent thereto as a condition of his employment. All Presump-contributions to the annuity fund shall be creditedto the individual for whose account the deductionsfrom salary were made. Regular interest shall be Interest.

credited to each member's account at the end onlyof each fiscal year, based upon the balance in hisaccount at the beginning of the year.

SEC. 47. One must have been a member of the Qualificationfor mhem-

retirement system, the former state fund, or a local bership.

fund, or both together for at least five years in orderto be entitled to a retirement allowance.

SEC. 48. (a) Any member having attained age Retiremntsixty (60) years and having completed thirty (30) serviceyears of creditable service may retire upon written 30 years.application to the Board of Trustees setting forth atwhich time he desires to be retired. Upon retire-ment such member shall receive a retirement allow-

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ance consisting of: An annuity which shall be theAnnuity. actuarial equivalent of his accumulated contribu-

tions at his age of retirement and a pension of onehundred dollars ($100) per month to be paid fromthe pension fund.

Age less than (b) Any member not having attained age sixty6,service

30 years. (60) years but having completed thirty (30) yearsof creditable service shall be entitled to retire, andupon retirement, shall receive a retirement allow-ance consisting of: An annuity which shall be theactuarial equivalent of his accumulated contribu-tions at his age of retirement and a pension of one

Annuity. hundred dollars ($100) per month less two dollars($2) per month for each year that such memberupon date of retirement shall be under age sixty (60)years.

Age 60ser- (c) Any member who has attained age sixtythan les (60) years, but who has completed less than thirty

years. (30) years of creditable service, may retire upon aretirement allowance consisting of: An annuitywhich shall be the actuarial equivalent of his ac-cumulated contributions at his age of retirement and

Annuity. a pension consisting of as many thirtieths (not toexceed thirty thirtieths) of one hundred dollars'($100) per month as he has years of creditable,service.

Former SEC. 49. Ayformer member of the retirementmembersAn,njn, system or a former fund who is receiving a pension

on the effective date of this act shall in lieu of anypension allowance under any former law receive apension equal to as many thirtieths (not to exceedthirty thirtieths) of one hundred dollars ($100) permonth as he has had years of creditable service:Provided, That any former member who has not yetattained age sixty (60) years upon the effective dateof this act shall receive a pension of one hundreddollars ($100) per month less two dollars ($2) permonth for each year such former member shall be

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SESSION LAWS, 1947. [H 0

under age sixty (60) years on the effective date ofthis act.

SEC. 50. Membership in the retirement system Terminationof main-

is terminated and the prior srcrvice certificate be- bership.

comes void when a member retires, is placed onpermanent disability, dies, withdraws his accumu-lated contribution from the annuity fund or is unem-ployed as a teacher for more than five consecutiveyears: Provided, That a member who has servedthirty (30) years prior to age sixty (60) may retainhis membership by leaving his contributions in theannuity fund even though he is absent or unem-ployed for a period of more than five (5) years priorto age sixty (60).

SEC. 51. Should a member cease to be employed Refund of,ontribu-as a teacher and request upon a form provided by tions.

the Board of Trustees a refund of his accumulatedcontributions with interest to the June thirtiethnext preceding, this amount shall be paid to him Withdrawal

less a withdrawal fee of five dollars ($5) which shall fee,

be deposited to the annuity fund's share of the costof operation. The amount withdrawn, together withregular interest from date of payment to date of re- RfewP ent

entry must be paid if he desires to reacquire his irawals with

former status upon re-entering the retirement sys-inest

tem. Upon termination of membership, intereston accumulated contributions in the annuity fundshall cease and all accumulated contributions un-claimed after the expiration of ten years thereafterbecome an integral part of the annuity fund.

SEC. 52. Upon receipt of proper proofs of death Death ofmemberof any member before retirement or before the first bef orere

installment of his retirement allowance shall becometien.

due his accumulated contributions shall be paid tohis estate or to such persons as he shall have nomi-nated by written designation duly executed andfiled with the Board of Trustees.

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CH. 80.]SESSION LAWS, 1947.

Retirement SEC. 53. Upon an application for retirement ap-application, proved by the Board of Trustees every member shall

recov receive the maximum retirement allowance avail-fg1ulaent able to him throughout life unless prior to the time

f ife, the first installment thereof becomes due he has

elected, by executing the proper application therefor,to receive the actuarial equivalent of his retirementallowance in reduced payments throughout his lifewith the following options:

Option 1. Option 1. If he dies before he has received thepresent value of his accumulated contributions atthe time of his retirement in annuity payments theunpaid balance shall be paid to his estate or to suchperson as he shall have nominated by written desig-nation executed and filed with the Board of Trustees.

Option 2. Option 2. Upon his death his adjusted retirementallowance shall be continued throughout the life ofand paid to such person as he shall have nominatedby written designation duly executed and filed withthe 'Board of Trustees at the time of his retirement.

Option 3. Option 3. Upon his death one half of his adjustedretirement allowance shall be continued throughoutthe life of and paid to such person as he shall havenominated by written designation executed andfiled with the Board of Trustees at the time of hisretirement.

Option 4. Option 4. Such other benefits shall be paid asthe member may designate for himself or others

* equal to the actuarial value of his retirement an-nuity at the time of his retirement: Provided, Thatthe Board of Trustees shall limit withdrawals of ac-cumulated contributions to such sums as will notreduce the member's retirement allowance below onehundred dollars ($100) per month.

Retirement SEC. 54. Upon application of a member in serviceon disabilityanallowance, or of his employer aymember may be retired by

the Board of Trustees on a disability allowance ifMedical ex- the medical director, after a medical examinationamination.

of such member, shall certify that such member is

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SESSION LAWS, 1947. [H 0

mentally or physically incapacitated for the furtherperformance of duty and that such member be re-tired. The disability allowance will be in the amount Allowance.

of sixty dollars ($60) per month payable from thedisability reserve fund for a period not to exceedtwo years, but no payments shall be made for thefirst sixty (60) days of disability.

SEC. 55. Should the board determine from the Permanent

report of the medical directors at the end of a two- disability.

year disability period that a member's disability ispermanent a member who had twenty (20) yearsor more of service credit when first granted thetemporary disability allowance shall have the optionof then receiving all accumulated annuity contribu-tions in a lump sum payment and cancelling hismembership, or of accepting a retirement allowancebecause of disability. If the member elects to re- Option by

ceive a retirement allowance because of disabilitymebrhe shall be paid an annuity which shall be theactuarial equivalent of his accumulated contribu-tions at his age of retirement and a pension whichshall be the actuarial equivalent of the pension towhich he would be entitled at age sixty (60) accord-ing to his years of service credit, but in no eventshall the total allowance for disability be less thansixty dollars ($60) per month.

SEC. 56. Any former member of the retirement FormerSreceivlingsystem or a former fund receiving permanentdi isblt

ability allowances on the effective date of this actaloncs

shall in lieu of all allowances provided by any formerlaw receive a disability allowance in the sum of sixtydollars ($60) per month to be paid from the pensionfund. Such disability allowances may be continuedonly upon recommendation of the medical directorand the approval of the Board of Trustees.

SEC. 57. Any retired teacher who enters service Re tired

in any public educational institution shall cease to reentering

[567

[CH. 80.

CH. 80.)SESSION LAWS, 1947.

receive pension payments while engaged in suchservice.

Retired SEC. 58. A retired teacher upon returning toteacher re-entering service in the public schools of Washington may electservice maybecome . to again become a member of the retirement system.member.

Rights un-. SEC. 59. The right of a person to a pension, ansasignabl. annuity, a retirement allowance, or disability allow-

ance, to the return of contributions, any optionalbenefit or death benefit, any other right accrued oraccruing to any person under the provisions of thisact and the moneys in the variou.s- funds created bythis act shall be unassignable.

quartrs. SEC. 60. Suitable office quarters shall be providedby the state for the operation of the retirementsystem; such office to be located at the State Capitol.

Appeals to SEC. 61. Any claimant feeling aggrieved by thecourt. action of the board may take an appeal to the Su-10 day perior Court of Thurston County within ten dayslimitation, from the day he receives written notice of the board's

action by filing with the secretary-manager of thesystem a written notice of appeal and giving bondto the retirement system in the sum of two hundredand fifty dollars ($250) conditioned to pay all costswhich may be adjudged against the applicant in the

Bond. superior court. Sureties on the bond must be suchas are approved by the court.

A Ieas by SEC. 62. Any five members feeling aggrieved byany action of the board may take an appeal to the

10 day Superior Court of Thurston Conywithin ten dyliittin.from the date of such action by filing with the

secretary-manager of the system a written noticeBond. of appeal and giving bond to the retirement system

in the sum of two hundred and fifty dollars ($250)conditioned to pay all WoS which may be adjudgedagainst appellants in the superior court, with suretieson the bond approved by the court. In case theappeal involves a claim, service of a copy of the

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CH. 80.]

SESSION LAWS, 1947. [u 0

notice of appeal on the claimant is a necessary step service ofin perfecting the appeal. C..caiat

SEC. 63. If an appeal involves a claimant, the certifleationsecretary-manager of the retirement system shall of superior

forthwith certify to the clerk of the Superior Court secea:y

for Thurston County all matter filed with respectto the claim, together with a transcript of the recordof the board upon the claim, together with the noticeof appeal and appeal bond.

SEC. 64. The hearing on appeal shall be de novo H~earingde nova.

and follow the practice in the trial of appeals fromjustice courts except that there shall be no jury.

SEC. 65. Appeals from the judgment of the SU- Appeals tosupremeperior court may be taken to the Supreme Court in court.

the manner provided for taking appeals in equitycases.I

SEC. 66. Should any error in the records result Correction oferrors inin any member or beneficiary receiving from the records.

retirement system more or less than he would havebeen entitled to receive had the records been correct,the Board of Trustees shall correct such error, andas far as practicable, shall adjust the payments insuch manner that the actuarial equivalent of thebenefit to which such member or beneficiary wascorrectly entitled shall be paid.

SEC. 67. Any person who shall knowingly make Fraud.false statements or shall falsify or permit to befalsified any record or records of the retirementsystem in any attempt to defraud such system as aresult of such act, shall be guilty of a felony.

SEC. 68. If any provision or section of this act Saving

is held invalid the remainder of the act shall not beclue

affected thereby. If the invalidation of any portionof this act should result in rendering any personineligible to receive benefits under the terms hereof,such person if eligible to receive benefits under thelaw existing prior to the passage hereof shall con-

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[CH. 80.

CH. 80.]SESSION LAWS, 1947.

tinue to receive such benefits as he would havereceived had such prior law remained in effect.

Transfer of SEC. 69. All the records and assets of the Wash-recorrds.l ington State Teachers' Retirement System estab-

lished under chapter 221, Laws of 1937, as amendedby chapters 40 and 86, Laws of 1939, chapter 97,Laws of 1941, and chapter 116, Laws of 1943, arehereby transferred to the Washington State Teach-ers' Retirement System as established by this act,to-wit: The assets of the annuity fund, the pen-donfund, the p~ension reserve fund, the disability reservefund and the expense fund of the present Washing-ton State Teachers' Retirement System are herebytransferred to the annuity fund, the pension fund,the pension reserve fund, the disability reserve fundand the expense fund, respectively, of the Wash-ington State Teachers' Retirement System as estab-lished by this act.

Repeals. SEC. 70. Chapter 221, Laws of 1937, chapter 40,Laws of 1939, chapter 86, Laws of 1939, chapter 97,Laws of 1941, chapter 116, Laws of 1943 (secs. 4995-1to 4995-15a, incl., Rem. Rev. Stat.; secs. 773-1 to773-25, incl., PPC), are hereby repealed. It is the

Legislative intention of the legislature that there shall be nodeclaration, interruption in the continuity of the existence, ad-

ministration and operation of the Teachers' Retire-ment System when this act replaces the laws relativeto teachers' retirement in effect heretofore.

Appropria- SEC. 71. There is hereby appropriated from thetlon~r general fund the sum of four million dollars ($4,-

000,000) to the pension fund of the Washington StateTeachers' Retirement System; from the general fundthe sum of four million dollars ($4,000,000) to thepension reserve fund of the Washington StateTeachers' Retirement System, and from the pensionreserve fund of the present Washington StateTeachers' Retirement System the sum of three mil-lion dollars ($3,000,000) to the pension reserve fund

[ 570]

CH. 80.]

SESSION LAWS, 1947. [u 1

of the Washington State Teachers' Retirement Sys-tem hereby created.

SEC. 72. This act shall become effective on July Effective

1, %947.

Passed the House February 18, 1947.Passed the Senate February 27, 1947.Approved by the Governor March 8, 1947.

CHAPTER 81.[ S. 13. 32.

UNIVERSITY OF WASHINGTON APPROACH.AN ACT relating to the University of Washington; providing for

the acquisition of the necessary property to complete theapproach provided for by chapter 27, Laws of 1945;making an appropriation from the general fund therefor;and declaring an emergency.

Be it enacted by the Legislature of the State ofWashington:

SECTION 1. The Director of Highways is hereby Acquistion

authorized and directed to acquire in the name of of way.the State of Washington by purchase, gift or con-demnation all necessary real estate, rights and inter-ests, including damage to abutting property or build-ings, to complete the acquisition of a highway andright-of-way for an approach, and underpasses toand from said approach, for the University of Wash-ington, in accordance with the plan and right-of-waylocated and established by said director pursuant tochapter 27, Laws of 1945.

SEC. 2. There is hereby appropriated from the Appnropria-

general fund of the state treasury the sum of onehundred and fifty thousand dollars ($150,000), or somuch thereof as may be necessary to carry out theprovisions of this act.

SEC. 3. This act is necessary for the immediate Effectivein-

preservation of the public health, peace and safety,[ 571]

[CH. 81,