6306-S AMH CONW H5492.1

SSB 6306 - H AMD TO APP COMM AMD (H-5285.5/98) 1068

By Representative Conway

    On page 45, beginning on line 8 of the amendment, strike all of section 404 and insert the following:

    "Sec. 404.  RCW 41.45.060 and 1995 c 239 s 309 are each amended to read as follows:

    (1) The state actuary shall provide actuarial valuation results based on the assumptions adopted under RCW 41.45.030.

    (2) Not later than September 30, 1996, and every two years thereafter, consistent with the assumptions adopted under RCW 41.45.030, the council shall adopt ((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; and

(c) A basic employer contribution rate for the school employees' retirement system for funding the public employees' retirement system plan I.

    (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 plans II and III, the school employees' retirement system plans II and III, and the law enforcement officers' and fire fighters' retirement system plan II in accordance with RCW 41.40.650, 41.26.450, and this section.

    (4) The aggregate actuarial cost method shall be used to calculate a combined plan II and III employer contribution rate.

    (5) 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.

    (6) The director of the department of retirement systems shall collect those rates adopted by the council.

(7) The council shall adopt rates for the 1999-2001 biennium which take into account distribution of the plan II gain-sharing amount as defined in section 714 of this act."

SSB 6306 - H AMD TO APP COMM AMD (H-5285.5/98)

By Representative Conway

    On page 84, after line 26 of the amendment, insert the following:

    "NEW SECTION. Sec. 714.  (1) On or before July 1, 1998, the office of the state actuary shall calculate the plan II gain-sharing amount.

    (2) The plan II gain-sharing amount shall be calculated as follows:

    (a) One-half of the value of the net assets held in trust for pension benefits for plan II members in the teachers' retirement system combined plan II and plan III fund, the public employees' retirement system plan II fund, and the law enforcement officers' and fire fighters' retirement system plan II fund at the close of the previous state fiscal year;

    (b) Multiplied by the amount which the geometric average of the rate of investment returns on those assets over the previous four state fiscal years exceeds ten percent.

NEW SECTION. Sec. 715.  The joint committee on pension policy is directed to study the issue of distributing the plan II gain-sharing amount to plan II members in the form of defined benefit increases or payments to member accounts and report back to the legislature in January 1999."

    Renumber the remaining sections consecutively and correct any internal references accordingly.

    On page 84, line 28 of the amendment, after "through" strike "713" and insert "715"

    On page 84, line 33 of the amendment, after "through" strike "713" and insert "715"

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