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Bill

SB 5881

Concerning membership in the public employees' retirement system for certain part-time bus drivers employed full-time by the federal government.

2023-2024 Regular Session Introduced by Steve Conway and 2 co-sponsors

Excludes part-time PTBA bus drivers serving naval shipyards from PERS if they are full-time federal employees in FERS, aligning Washington retirement rules with federal coverage.

Effective date 6/6/2024.
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Bill Summary · SB 5881

Summary of Senate Bill 5881 (2024)

What the bill does (Purpose and intent)

SB 5881 amends Washington state retirement law to exclude certain part-time bus drivers from membership in the Public Employees' Retirement System (PERS). Specifically, newly hired part-time drivers who work for Public Transportation Benefit Areas (PTBAs) and service naval shipyards would be exempt from PERS membership if they are employed full-time by a federal government employer and contribute to the Federal Employees' Retirement System (FERS). The goal is to align retirement coverage for these unique cross-jurisdictional positions with federal retirement coverage.

Key provisions

  • Exclusion from PERS membership for:
    • Individuals newly employed by PTBAs as part-time bus drivers serving naval shipyards.
  • Conditions for exclusion:
    • The exclusion applies to those first hired on or after the bill’s effective date.
    • The driver must be employed on a full-time basis with a federal government employer.
    • The driver must contribute to the Federal Employees' Retirement System (FERS).
  • Scope note: The provision targets part-time bus drivers who operate buses servicing naval shipyards, such as those described in Kitsap Transit’s Puget Sound Naval Shipyard operations.

Who is affected

  • Public Transportation Benefit Areas (PTBAs) and their part-time bus drivers, particularly those serving naval shipyards (e.g., operations by Kitsap Transit).
  • Washington Department of Retirement Systems (DRS) would implement and administer the membership eligibility changes.
  • Federal employers and FERS-covered employees who might otherwise interact with state retirement rules in these cross-system employment scenarios.

Effective date and timeline

  • Effective date: 90 days after adjournment of the 2024 session, which is June 6, 2024.
  • Legislative history highlights:
    • Prefiled December 19, 2023; introduced for consideration in the 2024 session.
    • Passed the Senate: February 7, 2024 (49 yeas, 0 nays).
    • Passed the House: February 29, 2024 (96 yeas, 0 nays).
    • Governor signed: March 25, 2024; Chapter 247, Laws of 2024; effective June 6, 2024.

Fiscal and administrative notes

  • Appropriation: None.
  • Fiscal Note: Available (assesses potential impacts on PERS liabilities and cross-system coordination).

Background context

  • PERS is Washington’s largest state/local retirement system, generally covering regular employees of participating employers.
  • Kitsap Transit operates as a PTBA and employs part-time drivers who service the Puget Sound Naval Shipyard, highlighting the real-world applicability of the bill to cross-border employment arrangements.

This bill clarifies retirement coverage for a narrowly defined set of part-time drivers who are effectively full-time federal employees, ensuring consistency with federal retirement benefits and reducing state-level retirement obligations for these positions.

Compiled from official sources — confirm details with the bill’s official record.

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