I want to clarify the impact of the passage of HB 1506 in the last legislative session which will be effective on July 26, 2009.

To be clear, this bill only amends RCW 41.18, the Prior Act. The bill amended RCW 41.18 to allow all surviving spouses to remarry without forfeiting their pension. Currently only a surviving spouse of a member who retired on a service pension can remarry without losing the pension. The amendment allows a member who retired under RCW 41.18 and who was married less than five years before retirement, after retirement or who marries in the future, the option to select a survivor benefit for a future or current spouse. Currently the member who retired under RCW 41.18 had to be married for five years before retirement to qualify for a survivor benefit. The amendment also allows the spouse of a living dual member, a member who was employed under RCW 41.18 the Prior Act and RCW 41.26 the LEOFF 1 Retirement System, who retired under LEOFF 1 on a disability pension to also retain the second check if remarried after the death of the member. This does not affect the LEOFF 1 benefit. Under LEOFF 1 the surviving spouse only had to be married to the member for one year before retirement to qualify regardless of the type of retirement, service or disability. LEOFF 1 already has an option for the member to select a survivor option if married for less than one year before retirement, marries after retirement or in the future. The amendment will also allow a dual member who retired under LEOFF 1, who is now receiving a second check under the excess of benefits clause in RCW 41.18 and who married less than five years before retirement, after retirement or is married in the future, the option for a survivor benefit under RCW 41.18, for the second check now being paid by the member’s former employer.

After July 26, 2009, a member who is already married and who wants to select the new survivor option will have one year or until July 26, 2010 to select the new survivor option. A member who marries in the future must wait one year or until the first anniversary to apply and will have one year or until the second anniversary to apply.

1. In all cases the member will have the right to select a survivor option of 100%, the same amount the member is receiving at the time of death plus any future cost of living increases.
2. A two-thirds survivor benefit which equals two-thirds of the amount the member is receiving at the time of death plus any future cost of living increases. 
3. A 50% survivor benefit which would equal 50% of what the member is receiving at the time of death plus any future cost of living increases.

The member will receive a reduction in the current retirement benefit check depending on which of the three survivor benefits is selected.
The reductions for each of the three survivor options are computed individually based on the amount the member is now receiving each month and the age of the member and the age of the spouse. In some situations the member may be older than the spouse and in some the spouse may be older than the member. The local RCW 41.18 retirement boards will administer this survivor option just as they now administer the Prior Act Pension Law. I would expect that all the Prior Act RCW 41.18 Boards will use the reduction factors computed by the State Actuary for RCW 41.26, the LEOFF Law. These reduction factors may be amended from time to time by DRS based on a new mortality study conducted by the State Actuary. The reduction factors in effect at the time you apply for the survivor benefit will be constant and will not change for you, only for those who apply in the future. The current reduction tables used for the calculation of the actuarially reduced survivor benefit can be found in WAC 415-02-380(14) and 415-02-380(15).

The reduction examples I gave in the June Newsletter were incorrect as I was looking at an old reduction table. Currently a member who is 4 years older than the spouse and is now receiving $1,000 per month and who selects the 100% survivor option will have a reduction of $141.00 per month. A member who is 4 years older than the spouse and is now receiving $1,800 per month will have a reduction of $253.00 per month. One has to try to calculate his life expectancy in years times the annual reduction amount and compare that to the amount the survivor will receive based on the pension the member is receiving at the time of death plus future cost of living increases times her life expectancy.

Once you select the survivor option it cannot be revoked. If your spouse precedes you in death your pension benefit will return to the full value. I have been working with Ray Sanderson, the Firefighter Representative on the Yakima Firefighters Pension Board, and with Steve Brown the Executive Secretary of the Seattle Firefighters Pension Board in drafting an information packet and a list of questions and answers that will be sent out to each member.

I hope the boards will be able to also include the reduction factors in the mailing. We will make this information available to all the RCW 41.18 boards across the state, and they will be able to add additional information if needed. If you have any questions call the RFFOW or better yet your local pension board for information. Don’t call DRS in Olympia as they do not administer the Prior Act.

I want to inform you that Keven Rojecki, a City of Sea-Tac firefighter, and an executive board member of the Washington State Council of Firefighters is a candidate for the City of Tacoma City Council. If you would like to make a campaign donation or pledge some time, call the campaign office at 253-292-3676; or the web page; www.rojeckifortacoma.com.

I have been advised that the Coalition had a telephone board meeting on Monday June 22, 2009 to amend their by-laws. I have been told that one of the changes will allow the Coalition Board to reject a candidate who is appointed by an organization to the Coalition Board.

They will now allow each at- large delegate of which there are six, to each have a vote on the board. All the at-large delegates are appointed by the board and they now can apparently reject any delegate appointed by an organization, of which there are now only three.

They have previously tried to remove Jerry Taylor, who was appointed by the Retired Seattle Police Officer’s Association.

With the new by-law changes, the board will in effect appoint all board members and those members will appoint a president and secretary from their own group. What are the qualifications for appointment to the board or to an officer position? Are the appointments based on what you know, what you have done, or just that you are a LEOFF 1 member who won’t ask any questions or demand any accountability? It appears to be more of a boy’s club than an employee organization.

The new acting joint director of the State Healthcare Authority and the Department of Retirement Systems Steve Hill has recommended to the Governor that she continue to have a single director of each department.

The Governor concurred with Mr. Hill’s recommendation as did the DRS Pension Advisory Committee. Mr. Hill will continue until a new director is appointed.

From Beth Eerkes, Department of Retirement Systems
We are pleased to report that RFFOW President Richard Warbrouck, has been appointed to the Washington State Retirement Systems, Pension Advisory Committee for a second three year term.