CERTIFICATION OF ENROLLMENT

SUBSTITUTE HOUSE BILL 2198

Chapter 93, Laws of 2003

58th Legislature
2003 Regular Session



LEOFF--EXCESS EARNINGS



EFFECTIVE DATE: 4/23/03

Passed by the House April 7, 2003
  Yeas 95   Nays 0

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate April 15, 2003
  Yeas 49   Nays 0


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

I, Cynthia Zehnder, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2198 as passed by the House of Representatives and the Senate on the dates hereon set forth.


CYNTHIA ZEHNDER
________________________________________    
Chief Clerk
Approved April 23, 2003.








GARY F. LOCKE
________________________________________    
Governor of the State of Washington
 
FILED
April 23, 2003 - 4:50 p.m.







Secretary of State
State of Washington


_____________________________________________ 

SUBSTITUTE HOUSE BILL 2198
_____________________________________________

Passed Legislature - 2003 Regular Session
State of Washington58th Legislature2003 Regular Session

By House Committee on Appropriations (originally sponsored by Representatives Cooper, Delvin and Simpson)

READ FIRST TIME 03/10/03.   



     AN ACT Relating to removing the allocation of excess earnings from section 6 of Initiative Measure No. 790; amending RCW 41.26.725; and declaring an emergency.

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

Sec. 1   RCW 41.26.725 and 2003 c 2 s 6 (Initiative Measure No. 790) are each amended to read as follows:
     (1) The board of trustees shall establish contributions as set forth in this section. The cost of the minimum benefits as defined in this plan shall be funded on the following ratio:
     Employee contributions     50%
     Employer contributions     30%
     State contributions      20%
     (2) The minimum benefits shall constitute a contractual obligation of the state and the contributing employers and may not be reduced below the levels in effect on July 1, 2003. The state and the contributing employers shall maintain the minimum benefits on a sound actuarial basis in accordance with the actuarial standards adopted by the board.
     (3) Increased benefits created as provided for in RCW 41.26.720 are granted on a basis not to exceed the contributions provided for in this section. In addition to the contributions necessary to maintain the minimum benefits, for any increased benefits provided for by the board, the employee contribution shall not exceed fifty percent of the actuarial cost of the benefit. In no instance shall the employee cost exceed ten percent of covered payroll without the consent of a majority of the affected employees. Employer contributions shall not exceed thirty percent of the cost, but in no instance shall the employer contribution exceed six percent of covered payroll. State contributions shall not exceed twenty percent of the cost, but in no instance shall the state contribution exceed four percent of covered payroll. Employer contributions may not be increased above the maximum under this section without the consent of the governing body of the employer. State contributions may not be increased above the maximum provided for in this section without the consent of the legislature. In the event that the cost of maintaining the increased benefits on a sound actuarial basis exceeds the aggregate contributions provided for in this section, the board shall submit to the affected members of the plan the option of paying the increased costs or of having the increased benefits reduced to a level sufficient to be maintained by the aggregate contributions. The reduction of benefits in accordance with this section shall not be deemed a violation of the contractual rights of the members, provided that no reduction may result in benefits being lower than the level of the minimum benefits.
     (4) The board shall manage the trust in a manner that maintains reasonable contributions and administrative costs. Providing additional benefits to members and beneficiaries is the board's priority.
     (((5) All earnings of the trust in excess of the actuarially assumed rate of investment return shall be used exclusively for additional benefits for members and beneficiaries.))

NEW SECTION.  Sec. 2   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 takes effect immediately.


         Passed by the House April 7, 2003.
         Passed by the Senate April 15, 2003.
         Approved by the Governor April 23, 2003.
         Filed in Office of Secretary of State April 23, 2003.