S-0186.1  _______________________________________________

                         SENATE BILL 5855

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senators Carlson, T. Sheldon, Winsley, Fraser and Swecker

Read first time 02/06/2001.  Referred to Committee on Ways & Means.

Calculating gain sharing.

    AN ACT Relating to calculating gain sharing; and amending RCW 41.31.020.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 41.31.020 and 1998 c 340 s 2 are each amended to read as follows:

    (1) The gain-sharing increase amount shall be the amount of increase, rounded to the nearest cent, that can be fully funded in actuarial present value by the amount of extraordinary investment gains, if any.  The amount of extraordinary investment gains shall be calculated as follows:

    (a) One-half of the sum of the value of the net assets held in trust for pension benefits in the teachers' retirement system plan 1 fund and the public employees' retirement system plan 1 fund at the close of the previous state fiscal year;

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

    (2) The gain-sharing increase amount for July 1998, as provided for in RCW 41.31.010, is ten cents.

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