BILL REQ. #: Z-1019.2
State of Washington | 59th Legislature | 2006 Regular Session |
Read first time 01/12/2006. Referred to Committee on Appropriations.
AN ACT Relating to payment of the unfunded actuarial accrued liability in plan 1 of the public employees' retirement system and plan 1 of the teachers' retirement system; adding a new section to chapter 41.45 RCW; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 41.45 RCW
to read as follows:
(1) It is the intent of the legislature to provide for the
systematic payment of the plan 1 unfunded actuarial accrued liability
in a manner that promotes contribution rate adequacy and stability for
the affected systems. This change in funding policy requires a three-year phase-in of contribution rates beginning in 2006. The phase-in
rates for the plan 1 unfunded actuarial accrued liability are in
addition to the phase-in rates established pursuant to RCW 41.45.062.
(2) Beginning July 1, 2006, a 0.87 percent contribution is
established as part of the basic state and employer contribution rate
for the public employees' retirement system and the public safety
employees' retirement system, to be used for the sole purpose of
amortizing the unfunded actuarial accrued liability in the public
employees' retirement system plan 1.
(3) Beginning September 1, 2006, a 0.87 percent contribution is
established as part of the basic state and employer contribution rate
for the school employees' retirement system, to be used for the sole
purpose of amortizing the unfunded actuarial accrued liability in the
public employees' retirement system plan 1.
(4) Beginning September 1, 2006, a 1.29 percent contribution is
established as part of the basic state and employer contribution rate
for the teachers' retirement system, to be used for the sole purpose of
amortizing the unfunded actuarial accrued liability in the teachers'
retirement system plan 1.
(5) 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 actuarial accrued liability for 2007-2008
and 2008-2009 and by September 30, 2006, the pension funding council
shall adopt contribution rates to complete the three-year phase-in
schedule, adjusted for any material changes in benefits or actuarial
assumptions, methods, and experience. The expected present value of
projected contributions during the three-year phase-in period shall be
the same as the expected present value of projected contributions that
would have been collected without the phase-in, as determined by the
state actuary and adjusted for any material changes in benefits or
actuarial assumptions, methods, or experience.
NEW SECTION. Sec. 2 This act takes effect July 1, 2006.