HOUSE BILL REPORT

HB 358

BYRepresentatives H. Sommers,  Bristow, Holland, B. Williams, Patrick, Sayan, Silver, Braddock, Hine, Fuhrman, C. Smith, Wang, Valle and May

Revising provisions relating to the state actuary and creating a joint committee on pension policy.

House Committe on Ways & Means/Appropriations

Majority Report:     Do pass.  (22)

     Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Fuhrman, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, L. Smith, H. Sommers, Sprenkle and B. Williams.

House Staff:Randy Acker (786-7153)

AS PASSED HOUSE MARCH 13, 1987

BACKGROUND:

The legislature has had numerous interim committees on pensions.  The most recent have been the Joint Committees on Public Retirement appointed during 1984 and 1986.

The office of the state actuary exists within the legislative branch.  The state actuary is appointed by a state actuary committee consisting of three members of the Senate and three members of the House of Representatives.  The actuary is required to be a member of the American Academy of Actuaries.

SUMMARY:

A Joint Committee on Pension Policy is created consisting of eight members of the Senate and eight members of the House of Representatives.  Representation is split evenly between the two major political parties.

The joint committee shall:  (a)  study pension funding issues, develop pension and funding policy, and make recommendations to the legislature; and (b)  appoint or remove the state actuary by a two- thirds vote of the committee.

The State Actuary Committee is abolished.  The requirement that the actuary be a member of the American Academy of Actuaries is removed.  All actuarial valuation and experience studies must be signed by a member of the Academy.

Fiscal Note:    Requested January 29, 1987.

House Committee ‑ Testified For:     Harold Washburn, Washington State Retired Teachers Association; Karen Davis, Washington Education Association; Dick Bever, Retired Public Employees Council of Washington.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Pension issues are extremely complex, therefore creation of a standing committee on pension policy is a good idea.

House Committee - Testimony Against: None Presented.