5180-S AMS LOVE S2913

5180-S AMS LOVE S2913.1

SSB 5180 - S AMD - 465

By Senators Loveland, Fraser and Long

ADOPTED 4/21/99

On page 153, after line 13, insert the following:

"NEW SECTION. Sec. 721. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS‑-PENSION ADVISORY COMMITTEE

Department of Retirement Systems Expense Account

Appropriation................................... $ 181,000

The appropriation in this section is subject to the following conditions and limitations:

(1) The state pension advisory committee is created in the department of retirement systems for the period July 1, 1999, through June 30, 2001. The committee membership shall consist of: (a) Four active members of the state retirement systems, to be appointed by the governor; (b) three retired members of the state retirement systems, appointed by the governor; (c) three local government employer representatives, to be appointed by the governor; (d) the director of the department of retirement systems; and (e) the director of the office of financial management. The governor shall appoint one of the committee members to be committee chair.

(2) Within the level of funding provided in this section, the state pension advisory committee shall review changes in state pension benefits which have been enacted since 1990 and may make recommendations to the joint committee on pension policy regarding: (a) Major pension system priorities and goals for the next five to ten years; (b) proposals for promoting equity between state pension systems; and (c) a prioritized list of proposed pension system changes.

In developing its recommendations the committee shall take into consideration constraints on the state's and local government's fiscal capacity, the changing nature of the work force and employment patterns, issues of cost-shifting between employees groups, and disproportionalities between how much employees in different age groups would pay in increased contributions for a benefit increase compared to the value of the benefit increase.

The committee shall also advise the department of retirement systems regarding the content and design of the department's annual report on the state retirement systems.

The committee shall report its recommendations, if any, to the joint committee on pension policy no later than June 1, 2000.

(3) Committee staff support shall be provided by one professional position employed by the department of retirement systems from the funding provided in this section.

(4) In conducting its review the pension advisory committee shall, to the greatest extent feasible, make use of fiscal notes, studies, and other analysis which has already been completed by the office of the state actuary. The committee may also expend not more than $60,000 for actuarial services to assist with: (a) Committee education, including a review of tax-deferred savings options available to public employees; (b) the development of recommendations as provided in subsection (2) of this section; and (c) the review and evaluation of fiscal notes and analysis done by the office of the state actuary. The contract for actuarial services shall be entered into by the department of retirement systems for the committee."

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