FINAL BILL REPORT

                 ESHB 1431

                         C 281 L 95

                     Synopsis as Enacted

Brief Description:  Paying for department of retirement system expenses.

Sponsors:  House Committee on Appropriations (originally sponsored by Representative Silver; by request of Department of Retirement Systems).

House Committee on Appropriations

Background:   The Department of Retirement Systems (DRS) is responsible for the general administration of various public retirement systems.  DRS administrative costs are paid from the retirement systems expense account.

Before 1993, DRS did not have a systematic program for detecting fraud or recovering overpayments.  DRS staff attempted to detect fraud and overpayments as staff time permitted.

Effective July 1, 1993, a statute was permitted DRS to use interest earnings from the pension funds to pay costs incurred in investigating fraud and recovering overpayments.  Based on this authorization, DRS created an investigator position to investigate fraud and recover overpayments.  By statute, the fund source for this expense ends on June 30, 1995.

Summary:  The June 30, 1995, termination date for use of interest earnings from pension funds to pay for investigation of fraud and collection of overpayments is deleted.  DRS may continue to use interest earnings from the pension funds to pay for these services.  Funds recovered through overpayment collections will be returned to the appropriate trust fund.

Votes on Final Passage:

House     96 0

Senate    43 0 (Senate amended)

House     97 0 (House concurred)

Effective:  July 1, 1995