WSR 16-01-164
PROPOSED RULES
DEPARTMENT OF
LABOR AND INDUSTRIES
[Filed December 22, 2015, 9:46 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-22-083.
Title of Rule and Other Identifying Information: Chapter 296-14 WAC, Industrial insurancePension tables, pension discount rate and mortality tables; amending WAC 296-14-8810.
Hearing Location(s): Department of Labor and Industries (L&I), 7273 Linderson Way S.W., Room: Auditorium, Tumwater, WA 98501, on January 26, 2016, at 2:30 p.m.
Date of Intended Adoption: February 16, 2016.
Submit Written Comments to: Suzy Campbell, P.O. Box 44208, Olympia, WA 98504-4208, e-mail suzanne.campbell@lni.wa.gov, fax (360) 902-4960, by 5 p.m. on January 27, 2016.
Assistance for Persons with Disabilities: Contact Veronica Berets by January 19, 2016, at Veronica.Berets@lni.wa.gov or (360) 902-4252.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The pension discount rate is the interest rate used to account for the time value of money when evaluating the present value of future pension payments. Currently, WAC 296-14-8810 sets the pension discount rate at 6.4 percent. The department has worked with the workers' compensation advisory committee (WCAC) to develop a plan reducing the pension discount rate annually, through 2022, until it reaches 4.5 percent. The purpose of this rule making is to reduce the current pension discount rate to 6.3 percent in 2016.
Statutory Authority for Adoption: RCW 51.04.020, 51.44.070(1), 51.44.080.
Statute Being Implemented: RCW 51.44.070.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: L&I, governmental.
Name of Agency Personnel Responsible for Drafting: Suzy Campbell, Tumwater, Washington, (360) 902-5003; Implementation: Sandi Haerling, Tumwater, Washington, (360) 902-5006; and Enforcement: Vickie Kennedy, Tumwater, Washington, (360) 902-4997.
No small business economic impact statement has been prepared under chapter 19.85 RCW. L&I is exempt from preparing a small business economic impact statement under RCW 19.85.025(3) referencing RCW 34.05.310 (4)(f) since the purpose of this rule making is to set or adjust fees pursuant to legislative standards.
A cost-benefit analysis is not required under RCW 34.05.328. L&I is exempt from preparing a cost-benefit analysis under RCW 34.05.328 (5)(b)(vi) since the purpose of this rule making is to set or adjust fees pursuant to legislative standards.
December 22, 2015
Joel Sacks
Director
AMENDATORY SECTION (Amending WSR 15-02-061, filed 1/6/15, effective 4/1/15)
WAC 296-14-8810 Pension tables, pension discount rate and mortality tables.
(1) The department uses actuarially determined pension tables for calculating pension annuity values, required pension reserves, and actuarial adjustments to monthly benefit amounts.
(a) The department's actuaries calculate the pension tables based on:
(i) Mortality tables from nationally recognized sources;
(ii) The department's experience with rates of mortality, disability, and remarriage for annuity recipients; and
(iii) A pension discount rate of ((6.4)) 6.3 percent.
(b) The department's actuaries periodically investigate whether updates to the mortality tables relied on or the department's experience with rates of mortality, disability, and remarriage by its annuity recipients warrant updating the department's pension tables.
(2) To obtain a copy of any of the department's pension tables, contact the department of labor and industries actuarial services.