| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Appropriations Committee | |
HB 3149
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Changing state investment board personnel compensation provisions.
Sponsors: Representatives Sommers, Haler, Conway, Kenney, Fromhold, McIntire, Anderson and Darneille; by request of State Investment Board.
Brief Summary of Bill |
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Hearing Date:
Staff: David Pringle (786-7310).
Background:
The State Investment Board (Board) was established by the Legislature in 1981 to oversee the
long-term investment of the state's pension, industrial insurance, and trust funds. These
investments are managed by a staff employed by the Board, as well as outside investment
advisors under contract with the Board. The administrative and investment expenses of the
Board are paid from the State Investment Board Expense Account, which is funded from the
investment earnings of the funds managed by the Board, subject to legislative appropriation.
The executive director and investment officers employed by the Board are exempt from the state
civil service laws. Their compensation is determined by the Board. In 2001, the Legislature
authorized the Board to establish a retention pool to grant salary increases to address recruitment
and retention issues. The compensation level for the investment officers cannot exceed the
average paid by state funds of a similar size, based on a biennial salary survey. Each year, the
salary increases granted by the Board from the retention pool cannot exceed an average of 5
percent.
Summary of Bill:
A budgeted, non-appropriated State Investment Board investment officer retention account is
established in the custody of the State Treasurer. The account is funded from earnings of the
funds managed by the State Investment Board.
The State Investment Board will develop a performance management and compensation program
to address recruitment and retention issues, and reward performance. Compensation and
incentives from the retention pool for investment officers is limited to the average of total
compensation provided by other state or public investment funds of similar size.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.