BILL REQ. #:  H-1774.1 

     AN ACT Relating to actuarial services for the state's public employee retirement systems; reenacting and amending RCW 44.44.040; adding a new section to chapter 41.45 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 41.45 RCW to read as follows:
     At least once in each six-year period, the state actuary shall conduct an actuarial study of financial risks to the state retirement systems. As part of the study, the state actuary shall model the long-term effects on financial risks that occur when short-term experience deviates from the long-term assumptions used in the systematic actuarial funding for pensions. The results shall be filed with the department, the office of financial management, the ways and means and transportation committees of the legislature, the select committee on pension policy, and the pension funding council.

Sec. 2   RCW 44.44.040 and 2003 c 295 s 4 and 2003 c 92 s 2 are each reenacted and amended to read as follows:
     The office of the state actuary shall have the following powers and duties:
     (1) Perform all actuarial services for the department of retirement systems, including all studies required by law.
     (2) Advise the legislature and the governor regarding ((pension)) financial risks to the state retirement systems, benefit provisions, ((and)) funding policies, and investment policies of the state investment board.
     (3) Consult with the legislature and the governor concerning determination of actuarial assumptions ((used by the department of retirement systems)).
     (4) Prepare a report, to be known as the actuarial fiscal note, on each pension bill introduced in the legislature ((which)) that receives a hearing in a ways and means or transportation committee of the legislature. The actuarial fiscal note shall briefly explain((s)) the financial impact of the bill((. The actuarial fiscal note)) and shall include: (a) The ((statutorily required contribution)) increases in employer and member contribution rates that result from the increased benefits or changes in expected pension costs; (b) the associated cost of the increased benefits or changes in expected pension costs for the biennium, the subsequent biennium, and the following twenty-five years; (((b) the biennial cost of the increased benefits if these exceed the required contribution;)) and (c) any change in the present value of fully projected benefits and the unfunded actuarial accrued ((benefits. An actuarial fiscal note shall also be prepared for all amendments which are offered in committee or on the floor of the house of representatives or the senate to any pension bill. However, a majority of the members present may suspend the requirement for an actuarial fiscal note for amendments offered on the floor of the house of representatives or the senate)) liability.
     (5) Provide such actuarial services to the legislature as may be requested from time to time.
     (6) Provide staff and assistance to the committee established under RCW 41.04.276.
     (7) Provide actuarial assistance to the law enforcement officers' and firefighters' plan 2 retirement board as provided in chapter 2, Laws of 2003. Reimbursement for services shall be made to the state actuary under RCW 39.34.130 and section 5(5), chapter 2, Laws of 2003.

NEW SECTION.  Sec. 3   This act takes effect August 1, 2011.