HB 482 - This act modifies provisions in the Public School Retirement System (PSRS) and the Nonteacher School Employee Retirement System.

PSRS & NONTEACHER. This act requires all PSRS and Nonteacher members to receive their retirement allowances and other payments by electronic funds transfer to a designated institution or agent, unless the Retirement Board determines that another method is appropriate. This provision applies to members first receiving retirement allowances and payments on or after January 1, 1998, and to all other members on and after January 1, 1999.

The definition of "final average salary" is modified to allow the board to set a maximum percentage increase in annual compensation.

Currently, if a beneficiary of a PSRS or Nonteacher member dies, any remaining payments or member contributions are paid to the member's estate. This act provides that such remaining payments shall be made to the estate of the beneficiary, or the last person to receive a monthly allowance, except that in some circumstances the member may designate a different recipient.

PSRS. This act repeals provisions allowing increased benefits to certain members with at least 20 years of creditable service who receive less than $600 per month and certain members with at least 25 years of creditable service who receive less than $800 per month. Such members presently may receive increased benefits to bring them up to $600 per month and $800 per month, respectively.

This act also extends the period in which certain PSRS members who are assigned to a leave of absence may elect to purchase creditable service if an application is made before July 1, 1998.

NONTEACHERS. Currently, persons certified to teach who are employed in a position which would otherwise make them eligible for membership in the Nonteacher School Employee Retirement System have the option of becoming a member of PSRS within 90 days of employment. This act specifies that such persons are PSRS members with the option of membership in the Nonteacher School Retirement System.
MARGARET J. TOALSON

SCA 1 - RECIPIENT MAY OBJECT TO ELECTRONIC FUNDS TRANSFER.