AN ACT
Relating to economic assumptions for state retirement systems; amending RCW
41.45.030 and 41.45.060; repealing RCW 41.45.040 and 41.45.0601; and declaring
an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
41.45.030 and 1993 c 519 s 17 are each amended to read as follows:
(1)
Beginning September 1, ((1989)) 1995, and every ((six)) two
years thereafter, the state actuary shall submit to the council information
regarding the experience and financial condition of each state retirement
system. The council shall review this and such other information as it may
require.
(2) By
December 31, 1995, and every two years thereafter, the council, by
affirmative vote of five council members, shall ((review the information
submitted by the state actuary and shall)) adopt the following long-term
economic assumptions:
(a)
Growth in system membership;
(b)
Growth in salaries, exclusive of merit or longevity increases;
(c)
Growth in inflation; and
(d)
Investment rate of return.
The
council shall work with the department of retirement systems, the state
actuary, and the executive director of the state investment board, and shall
consider long-term historical averages, in developing the economic assumptions.
(3)
The assumptions adopted by the council shall be used by the state actuary
in conducting ((valuation)) all actuarial studies of the state
retirement systems.
(((3)
The council may utilize information provided by the state actuary and such
other information as it may request.))
Sec.
2. RCW
41.45.060 and 1993 c 519 s 19 are each amended to read as follows:
(1) ((For
the period of September 1, 1993, through August 31, 1995, the basic state
contribution rate for the law enforcement officers' and fire fighters'
retirement system, and the basic employer contribution rates for the public
employees' retirement system, the teachers' retirement system, and the
Washington state patrol retirement system shall be as determined in the 1991
valuations prepared by the office of the state actuary.)) The state
actuary shall provide actuarial valuation results based on the assumptions
adopted under RCW 41.45.030.
(2)
Not later than September 30, ((1994)) 1996, and every two years
thereafter((:
(a))),
consistent with the assumptions adopted under RCW 41.45.030, the council
shall adopt ((the contributions to be used in the ensuing biennial period
for the systems specified in subsection (1) of this section.
(b))) both:
(a) A basic state contribution rate for the law enforcement officers' and fire
fighters' retirement system; and (b) basic employer contribution rates for the
public employees' retirement system plan I, the teachers' retirement system
plan I, and the Washington state patrol retirement system to be used in the
ensuing biennial period.
(3)
The employer and state contribution rates adopted by the council shall be the
level percentages of pay that are needed:
(a)
To fully amortize the total costs of the public employees' retirement system
plan I, the teachers' retirement system plan I, the law enforcement officers'
and fire fighters' retirement system plan I, and the unfunded liability of the
Washington state patrol retirement system not later than June 30, 2024; and
(b)
To also continue to fully fund the public employees' retirement system plan II,
the teachers' retirement system plan II, and the law enforcement officers' and
fire fighters' retirement system plan II in accordance with RCW 41.40.650,
41.32.775, and 41.26.450, respectively.
(4)
The council shall immediately notify the directors of the office of financial
management and department of retirement systems of the state and employer
contribution rates adopted ((under (a) of this subsection)).
(((c)))
(5) The director of the department of retirement systems shall collect
those rates adopted by the council ((under this chapter)).
NEW
SECTION. Sec. 3. The
following acts or parts of acts are each repealed:
(1) RCW
41.45.040 and 1993 c 519 s 18 & 1989 c 273 s 4; and
(2) RCW
41.45.0601 and 1993 c 519 s 20 & 1992 c 239 s 1.
NEW SECTION. Sec. 4. This act
is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and shall take effect immediately.
