| Passed by the House February 11, 2006 Yeas 97 ________________________________________ Speaker of the House of Representatives Passed by the Senate March 3, 2006 Yeas 45 ________________________________________ President of the Senate | I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2681 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
| Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
| State of Washington | 59th Legislature | 2006 Regular Session |
Read first time 01/12/2006. Referred to Committee on Appropriations.
AN ACT Relating to minimum contribution rates for the public employees' retirement system, the public safety employees' retirement system, the school employees' retirement system, and the teachers' retirement system; reenacting and amending RCW 41.45.020; adding new sections to chapter 41.45 RCW; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.45.020 and 2004 c 242 s 37 and 2004 c 93 s 1 are
each reenacted and amended to read as follows:
As used in this chapter, the following terms have the meanings
indicated unless the context clearly requires otherwise.
(1) "Council" means the pension funding council created in RCW
41.45.100.
(2) "Department" means the department of retirement systems.
(3) "Law enforcement officers' and fire fighters' retirement system
plan 1" and "law enforcement officers' and fire fighters' retirement
system plan 2" means the benefits and funding provisions under chapter
41.26 RCW.
(4) "Public employees' retirement system plan 1," "public
employees' retirement system plan 2," and "public employees' retirement
system plan 3" mean the benefits and funding provisions under chapter
41.40 RCW.
(5) "Teachers' retirement system plan 1," "teachers' retirement
system plan 2," and "teachers' retirement system plan 3" mean the
benefits and funding provisions under chapter 41.32 RCW.
(6) "School employees' retirement system plan 2" and "school
employees' retirement system plan 3" mean the benefits and funding
provisions under chapter 41.35 RCW.
(7) "Washington state patrol retirement system" means the
retirement benefits provided under chapter 43.43 RCW.
(8) "Unfunded liability" means the unfunded actuarial accrued
liability of a retirement system.
(9) "Actuary" or "state actuary" means the state actuary employed
under chapter 44.44 RCW.
(10) "State retirement systems" means the retirement systems listed
in RCW 41.50.030.
(11) "Classified employee" means a member of the Washington school
employees' retirement system plan 2 or plan 3 as defined in RCW
41.35.010.
(12) "Teacher" means a member of the teachers' retirement system as
defined in RCW 41.32.010(15).
(13) "Select committee" means the select committee on pension
policy created in RCW 41.04.276.
(14) "Actuarial value of assets" means the value of pension plan
investments and other property used by the actuary for the purpose of
an actuarial valuation.
(15) "Public safety employees' retirement system plan 2" means the
benefits and funding provisions established under chapter 41.37 RCW.
(16) "Normal cost" means the portion of the actuarial present value
of projected benefits and expenses that is allocated to a period,
typically twelve months, under the actuarial cost method.
NEW SECTION. Sec. 2 A new section is added to chapter 41.45 RCW
to read as follows:
(1) Beginning July 1, 2009, a minimum 2.68 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. This minimum contribution rate
shall remain effective until the actuarial value of assets in plan 1 of
the public employees' retirement system equals one hundred twenty-five
percent of the actuarial accrued liability or June 30, 2024, whichever
comes first.
(2) Beginning September 1, 2009, a minimum 2.68 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. This
minimum contribution rate shall remain effective until the actuarial
value of assets in plan 1 of the public employees' retirement system
equals one hundred twenty-five percent of the actuarial accrued
liability or June 30, 2024, whichever comes first.
(3) Beginning September 1, 2009, a minimum 4.71 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. This minimum contribution
rate shall remain effective until the actuarial value of assets in plan
1 of the teachers' retirement system equals one hundred twenty-five
percent of the actuarial accrued liability or June 30, 2024, whichever
comes first.
(4) Upon completion of each biennial actuarial valuation, the state
actuary shall review the appropriateness of these minimum contribution
rates and recommend to the legislature any adjustments as may be needed
due to material changes in benefits or actuarial assumptions, methods,
or experience.
NEW SECTION. Sec. 3 A new section is added to chapter 41.45 RCW
to read as follows:
(1) Beginning July 1, 2009, a minimum contribution rate is
established for the plans 2 and 3 normal cost as part of the basic
state and employer contribution rate for the public employees'
retirement system. The minimum contribution rate for the plans 2 and
3 employer normal cost shall equal the total contribution rate required
to fund eighty percent of the plans 2 and 3 employer normal cost as
calculated under the entry age normal cost method.
(2) Beginning September 1, 2009, a minimum contribution rate is
established for the plans 2 and 3 normal cost as part of the basic
state and employer contribution rate for the school employees'
retirement system. The minimum contribution rate for the plans 2 and
3 employer normal cost shall equal the total contribution rate required
to fund eighty percent of the plans 2 and 3 employer normal cost as
calculated under the entry age normal cost method.
(3) Beginning September 1, 2009, a minimum contribution rate is
established for the plans 2 and 3 normal cost as part of the basic
state and employer contribution rate for the teachers' retirement
system. The minimum contribution rate for the plans 2 and 3 employer
normal cost shall equal the total contribution rate required to fund
eighty percent of the plans 2 and 3 employer normal cost as calculated
under the entry age normal cost method.
(4) Upon completion of each biennial actuarial valuation, the state
actuary shall review the appropriateness of these minimum contribution
rates and recommend to the legislature any adjustments as may be needed
due to material changes in benefits or actuarial assumptions, methods,
or experience.
NEW SECTION. Sec. 4 A new section is added to chapter 41.45 RCW
to read as follows:
(1) Beginning July 1, 2009, a minimum contribution rate is
established for the plans 2 and 3 normal cost as part of the required
contribution rate for members of plan 2 of the public employees'
retirement system. The minimum contribution rate for the plans 2 and
3 employee normal cost shall equal the total contribution rate required
to fund eighty percent of the plans 2 and 3 employee normal cost as
calculated under the entry age normal cost method.
(2) Beginning September 1, 2009, a minimum contribution rate is
established for the plans 2 and 3 normal cost as part of the required
contribution rate for members of plan 2 of the school employees'
retirement system. The minimum contribution rate for the plans 2 and
3 employee normal cost shall equal the total contribution rate required
to fund eighty percent of the plans 2 and 3 employee normal cost as
calculated under the entry age normal cost method.
(3) Beginning September 1, 2009, a minimum contribution rate is
established for the plans 2 and 3 normal cost as part of the required
contribution rate for members of plan 2 of the teachers' retirement
system. The minimum contribution rate for the plans 2 and 3 employee
normal cost shall equal the total contribution rate required to fund
eighty percent of the plans 2 and 3 employee normal cost as calculated
under the entry age normal cost method.
(4) Upon completion of each biennial actuarial valuation, the state
actuary shall review the appropriateness of these minimum contribution
rates and recommend to the legislature any adjustments as may be needed
due to material changes in benefits or actuarial assumptions, methods,
or experience.
NEW SECTION. Sec. 5 This act takes effect July 1, 2009.