Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Ways & Means Committee

SSB 5332

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.

Brief Description: Addressing the administration of the Washington state patrol retirement system.

Sponsors: Senate Committee on Transportation (originally sponsored by Senators Haugen, Swecker and Delvin).

Brief Summary of Substitute Bill

  • Creates a standing subcommittee of the Select Committee on Pension Policy to focus on Washington State Patrol Retirement System (WSPRS) issues.

  • Subjects the activities of the standing subcommittee to appropriation.

  • Requires the activities of the standing subcommittee, including the administrative costs of the Washington State Patrol and the Department of Retirement Systems, to be paid for through a payroll deduction from WSPRS members.

Hearing Date: 3/24/09

Staff: David Pringle (786-7310)

Background:

In 2003 the Select Committee on Pension Policy (SCPP) replaced the Joint Committee on Pension Policy as the entity responsible for studying pension issues and the financial condition of the state pension system, developing pension policies, and making recommendations to the Legislature regarding changes to the state pension system.

The SCPP has the authority to form three issue-specific subcommittees, including a public safety subcommittee that focuses on pension issues affecting members of the Law Enforcement Officers’ and Firefighters’, Public Safety Employees’, and Washington State Patrol Retirement systems.

Created in 1998, the Pension Funding Council (PFC) receives recommendations from the Office of the State Actuary (OSA) regarding the appropriate member and employer contribution rates for the Public Employees', Teachers', School Employees', and Washington State Patrol Retirement Systems(WSPRS), and periodically adopts pension contribution rates and changes to certain long-term assumptions that affect pension funding. The contribution rates adopted by the PFC are subject to revision by the Legislature.

In 2003 Initiative Measure Number 790 (I-790) created a board of trustees to establish contribution rates and pension policy for members for the Law Enforcement Officers' and Fire Fighters' Retirement System Plan 2 (LEOFF 2).

Pursuant to instructions in the 2008 Supplemental Transportation Budget, the Office of Financial Management (OFM) reported to the Legislature its study of the relative cost and effectiveness of various methods by which the pension concerns of members of the Washington State Patrol Retirement System (WSPRS) may be considered and submitted to the Legislature.

Summary of Bill:

A standing subcommittee of the SCPP is created to focus on pension issues affecting WSPRS members. The activities of the standing subcommittee are subject to appropriation.

The Department of Retirement Systems (DRS) must bill the Washington State Patrol (WSP) for any amount appropriated by the Legislature to support the standing subcommittee's activities. WSP is to recoup the appropriation amount, plus the administrative costs of WSP and DRS, through a payroll deduction from WSPRS members.

If an appropriation is not made by June 30, 2009, the act is null and void.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed. However, the bill is null and void unless funded in the budget.