6896-S.E AMH BAIL PRIN 064

ESSB 6896 - H AMD 1184

By Representative Bailey

FAILED 3/7/2006

   Beginning on page 1, line 7, strike all of section 1.

   On page 2, beginning on line 6, strike all of section 2.

   On page 2, line 34, after "September 1, 2006, a" strike "1.29" and insert "2.07"

   On page 3, line 4, after "September 1, 2006, a" strike "0.87" and insert "2.25"

   On page 3, line 9, after "January 1, 2007, a" strike "1.77" and insert "2.25"

   On page 3, beginning on line 20, strike all of subsection (6) and insert the following:

   "(6) Upon completion of the 2005 actuarial valuation, the pension funding council and the state actuary shall review the contribution rates for the plan 1 unfunded accrued liability for fiscal year 2008 and fiscal year 2009 and the pension funding council shall adopt contribution rates to complete a three-year phase-in schedule for the unfunded liability in the teachers' retirement system plan 1, and a four-year phase-in schedule for the unfunded liability in the public employees' retirement system plan 1, adjusted for any material changes in benefits or actuarial assumptions, methods, and experience. The expected present value of the projected contributions during the three and four-year phase-in periods shall be the same as the expected present value of the projected contributions that would have been collected for the unfunded liabilities using the rates originally recommended by the pension funding council for payment during the 2003-05, and 2005-07 fiscal biennia, as well as the projected contributions for the unfunded liabilities for the 2007-09 biennium."

   On page 3, beginning on line 32, strike all of section 4 and insert the following:

   "NEW SECTION. Sec. 4. (1) The sum of $102,800,000 is appropriated for the fiscal year ending June 30, 2007, from the general fund and the sum of $59,800,000 is appropriated from the special retirement contribution increase revolving account for the purposes of paying increased employer contribution rate costs for payment of the additional rates created in section 1 of this act.

   (2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer shall transfer sufficient moneys from each dedicated fund or account, including local funds of state agencies and institutions of higher education, to the special retirement contribution increase revolving account in accordance with schedules provided by the office of financial management."

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

EFFECT: Deletes the creation of the pension funding stabilization account and appropriation of $350.0 million general fund-state to the account, increases the contribution rates in the phase-in section of the bill to reflect a 3-year phase-in of unfunded liability rates for TRS, and a 4-year phase-in of unfunded liability rates for PERS, that incorporate the both the unfunded liability payments not made during the 2003-05 and 2005-07 biennium, and those projected by the state actuary for the 2007-09 biennium. The pension funding council will adopt rates to continue the phase-in of these rates for the 2007-09 biennium.

The sum of $102.8 million general fund-state and $59.8 million of other funds are appropriated for payment of the increased contribution rates required in the bill for fiscal year 2007.