WSR 17-01-120 PROPOSED RULES DEPARTMENT OF LABOR AND INDUSTRIES [Filed December 20, 2016, 9:41 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 16-22-066.
Title of Rule and Other Identifying Information: Chapter 296-14 WAC, Industrial insurance—Pension tables, pension discount rate and mortality tables, amending WAC 296-14-8810.
Hearing Location(s): Department of Labor and Industries, 7273 Linderson Way S.W., Auditorium, Tumwater, WA 98501, on January 24, 2017, at 1:30 p.m.
Date of Intended Adoption: February 14, 2017.
Submit Written Comments to: Suzy Campbell, P.O. Box 44208, Olympia, WA 98504-4208, email suzanne.campbell@lni.wa.gov, fax (360) 902-4960, by 5 p.m. on January 25, 2017.
Assistance for Persons with Disabilities: Contact Veronica Berets by January 17, 2017, 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 6.3 percent. The department has worked with the workers' compensation advisory committee (WCAC) to develop a plan for 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 6.2 percent in 2017.
Reasons Supporting Proposal: See above.
Statute Being Implemented: RCW 51.44.070.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of labor and industries, 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. Labor and industries 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. Labor and industries 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 20, 2016
Joel Sacks
Director
AMENDATORY SECTION (Amending WSR 16-05-087, filed 2/16/16, effective 4/1/16)
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 ((6.3)) 6.2 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.
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