5342-S AMH CL H2812.2
SSB 5342 - H COMM AMD ADOPTED 03/03/92
By Committee on Commerce & Labor
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 51.44.070 and 1989 c 190 s 1 are each amended to read as follows:
(1) For every case resulting in death or permanent total disability the department shall transfer on its books from the accident fund of the proper class and/or appropriate account to the "reserve fund" a sum of money for that case equal to the estimated present cash value of the monthly payments provided for it, to be calculated upon the basis of an annuity covering the payments in this title provided to be made for the case. Such annuity values shall be based upon rates of mortality, disability, remarriage, and interest as determined by the department, taking into account the experience of the reserve fund in such respects.
Similarly, a self-insurer in these circumstances shall pay into the reserve fund a sum of money computed in the same manner, and the disbursements therefrom shall be made as in other cases.
(2)
As an alternative to payment procedures otherwise provided under law, in the
event of death or permanent total disability to workers of self-insured
employers, a self-insured employer may upon establishment of such obligation
file with the department a bond, ((or)) an assignment of account from a
federally or state chartered commercial banking institution authorized to
conduct business in the state of Washington, or purchase an annuity, in
an amount deemed by the department to be reasonably sufficient to insure
payment of the pension benefits provided by law. Any purchase of an annuity
shall be from an institution meeting the following minimum requirements: (a)
The institution must be rated no less than "A+" by A.M. Best, and no
less than "AA" by Moody's and by Standard & Poor's; (b) the value
of the assets of the institution must not be less than ten billion dollars; (c)
not more than ten percent of the institution's assets may include bonds that
are rated less than "BBB" by Moody's and Standard & Poor's; (d)
not more than five percent of the assets may be held as equity in real estate;
and (e) not more than twenty-five percent of the assets may be first mortgages,
and not more than five percent may be second mortgages. The department
shall adopt rules governing assignments of account and annuities. Such
rules shall ensure that the funds are available if needed, even in the case of
failure of the banking institution, the institution authorized to provide
annuities, or ((of)) the employer's business.
The
annuity value for every such case shall be determined by the department based
upon the department's experience as to rates of mortality, disability,
remarriage, and interest. The amount of the required bond ((or)),
assignment of account, or annuity may be reviewed and adjusted
periodically by the department, based upon periodic redeterminations by the
department as to the outstanding annuity value for the case.
Under
such alternative, the department shall ((make the monthly payments from the
pension reserve fund for the benefits provided for by RCW 51.32.050 and
51.32.060 to the self-insured beneficiary or beneficiaries and the department
shall be reimbursed for all such payments from the particular self-insured
employer through periodic charges not less than quarterly in a manner to be
determined by the director.
Any
self-insured employer electing this alternative method of providing for payment)) administer
the payment of this obligation to the beneficiary or beneficiaries. The
department shall be reimbursed for all such payments from the self-insured
employer through periodic charges not less than quarterly in a manner to be
determined by the director. The self-insured employer shall additionally
pay to the department a deposit equal to the first three months' payments
otherwise required under RCW 51.32.050 and 51.32.060. Such deposit shall be
placed in the reserve fund in accordance with RCW 51.44.140 and shall be
returned to the respective self-insured employer when monthly payments are no
longer required for such particular obligation.
If a self-insurer delays or refuses to reimburse the department beyond fifteen days after the reimbursement charges become due, there shall be a penalty paid by the self-insurer upon order of the director of an additional amount equal to twenty-five percent of the amount then due which shall be paid into the pension reserve fund. Such an order shall conform to the requirements of RCW 51.52.050."
SSB 5342 - H COMM AMD
By Committee on Commerce & Labor
On page 1, line 1 of the title, after "employers;" strike the remainder of the title and insert "and amending RCW 51.44.070."