H-659                _______________________________________________

                                                    HOUSE BILL NO. 352

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representative Smitherman

Read first time 1/30/85 and referred to Committee on Ways & Means.

AN ACT Relating to the teachers' retirement system; amending RCW 41.32.401; and providing an effective date.

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

        Sec. 1.  Section 11, chapter 14, Laws of 1963 ex. sess. as last amended by section 1, chapter 236, Laws of 1984 and RCW 41.32.401 are each amended to read as follows:

          (1) For the purpose of establishing and maintaining an actuarial reserve adequate to meet present and future liabilities of the system and to pay for an equitable portion of the operating expenses of the department, the director shall determine the necessary contribution rates to be made by each employer on all members' total earnable compensation on the basis of the latest valuation prepared by the state actuary, and shall include a percentage contribution of the total earnable compensation, to be known as the "normal contribution" and an additional percentage contribution of such earnable compensation, to be known as the "unfunded liability contribution."  The director shall notify employers of such rates at least thirty days prior to their effective date.  Such determination shall provide for amortization of unfunded retirement system liabilities over a period of not more than fifty years from July 1, 1964.  The legislature shall appropriate to the superintendent of public instruction the full amount recommended by the state actuary for the employer contribution rates for state funded certificated staff.  The amounts shall be deposited in the teachers' retirement fund for the payment of pensions, survivors' benefits, and the employer's share of the operating expenses for the system.  However, a school district and an educational service district for the 1985-86 school year shall not be required to pay to the department of retirement systems for the employer contribution to the teachers' retirement system, any amount in excess of the funds received by such school district or educational service district from the state through the office of the superintendent of public instruction for such purpose, and for the 1986-87 school year and thereafter,  a school district and an educational service district shall not be required to pay at a rate exceeding the rate that the director sets for the employer contribution for each employee.

          (2) In order to equitably reimburse the department of retirement systems expense fund, the director shall ascertain and report to each employer the contribution rate necessary to defray its proportional share of the cost of administering this chapter during either the next biennium or fiscal year, whichever is required to provide the amounts needed to defray such cost of administration.  The director shall also ascertain at the beginning of either each biennium or each fiscal year, whichever is required, and request from the legislature an appropriation for the department of retirement systems expense fund sufficient to cover estimated expenses for the biennium or fiscal year.

NEW SECTION. Sec. 2.     This act shall take effect September 1, 1985.