SB 5518

SENATE BILL REPORT
SB 5518

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported By Senate Committee On:
Ways & Means, February 7, 2007

Title: An act relating to removing the limitations on the number of divisions and assistant directors within the department of retirement systems.

Brief Description: Removing the limitations on the number of divisions and assistant directors within the department of retirement systems.

Majority Report: Do pass.Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Pridemore, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Fairley, Hatfield, Hewitt, Hobbs, Honeyford, Keiser, Kohl-Welles, Parlette, Rasmussen, Regala, Roach, Rockefeller, Schoesler and Tom.

Background: The Department of Retirement Systems (DRS) was created in 1976 to administer the various retirement systems that provide benefits for state and local government employees in Washington. Initially, the organization of DRS was subject to a statutory limit of two divisions, each with an assistant director. In 1993, the Legislature amended this limitation to allow DRS to be organized in up to three divisions. In 1996, the Legislature raised the limit again to allow DRS to have as many as four divisions. The limit of two assistant directors has not been adjusted since the creation of the department.

Summary of Bill: The restrictions on the number of divisions and assistant directors in the Department of Retirement Systems are removed.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: The number of plans and programs administered by the Department of Retirement Systems has increased substantially since the department was created. There are adequate budget and financial controls in place to ensure that the agency doesn't grow to an inappropriate size.