SENATE BILL 5342
State of Washington 52nd Legislature 1991 Regular Session
By Senators Matson, Anderson, Owen, McCaslin and Oke.
Read first time January 29, 1991. Referred to Committee on Commerce & Labor.
AN ACT Relating to payment by annuity by self-insured employers; and amending RCW 51.44.070.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 51.44.070 and 1989 c 190 s 1 are each amended to read as follows:
(1) For every case resulting in death or permanent total disability the department shall transfer on its books from the accident fund of the proper class and/or appropriate account to the "reserve fund" a sum of money for that case equal to the estimated present cash value of the monthly payments provided for it, to be calculated upon the basis of an annuity covering the payments in this title provided to be made for the case. Such annuity values shall be based upon rates of mortality, disability, remarriage, and interest as determined by the department, taking into account the experience of the reserve fund in such respects.
Similarly, a self-insurer in these circumstances shall pay into the reserve fund a sum of money computed in the same manner, and the disbursements therefrom shall be made as in other cases.
an alternative to payment procedures otherwise provided under law, in the event
of death or permanent total disability to workers of self-insured employers, a
self-insured employer may upon establishment of such obligation file with the
department a bond, ((
or)) an assignment of account from a federally or
state chartered commercial banking institution authorized to conduct business
in the state of Washington, or purchase an annuity in an amount deemed
by the department to be reasonably sufficient to insure payment of the pension
benefits provided by law. The department shall adopt rules governing
assignments of account and annuities. Such rules shall ensure that the
funds are available if needed, even in the case of failure of the banking
institution, the institution authorized to provide annuities, or (( of))
the employer's business.
annuity value for every such case shall be determined by the department based
upon the department's experience as to rates of mortality, disability,
remarriage, and interest. The amount of the required bond ((
assignment of account, or annuity may be reviewed and adjusted
periodically by the department, based upon periodic redeterminations by the
department as to the outstanding annuity value for the case.
such alternative, the ((
department)) self-insurer shall (( make
the monthly payments from the pension reserve fund)) provide for the
benefits provided for by RCW 51.32.050 and 51.32.060 to the self-insured
beneficiary or beneficiaries (( and the department shall be reimbursed for
all such payments from the particular self-insured employer through periodic
charges not less than quarterly in a manner to be determined by the director)).
self-insured employer electing ((
this alternative method of providing for
payment)) to have the department administer the payment of this
obligation to the beneficiary or beneficiaries shall additionally pay to
the department a deposit equal to the first three months' payments otherwise
required under RCW 51.32.050 and 51.32.060. Such deposit shall be placed in
the reserve fund in accordance with RCW 51.44.140 and shall be returned to the
respective self-insured employer when monthly payments are no longer required
for such particular obligation.
If a self-insurer delays or refuses to reimburse the department beyond fifteen days after the reimbursement charges become due, there shall be a penalty paid by the self-insurer upon order of the director of an additional amount equal to twenty-five percent of the amount then due which shall be paid into the pension reserve fund. Such an order shall conform to the requirements of RCW 51.52.050.