SENATE BILL REPORT
SB 6455
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.
As of February 7, 2008
Title: An act relating to the Washington state patrol retirement system.
Brief Description: Controlling the Washington state patrol retirement system.
Sponsors: Senators Haugen, Swecker, Murray, Schoesler, Kauffman, Marr, Shin, McAuliffe and Rasmussen.
Brief History:
Committee Activity: Transportation: 2/06/08.
SENATE COMMITTEE ON TRANSPORTATION
Staff: Dory Nicpon (786-7321)
Background: In 2003 the Select Committee on Pension Policy (Select Committee) replaced the
Joint Committee on Pension Policy as the entity responsible for studying pension issues and the
financial condition of the state pension system; developing pension policies; and making
recommendations to the Legislature regarding changes to the state pension system.
Created in 1998 the Pension Funding Council (PFC) receives recommendations from the Office
of the State Actuary (State Actuary) regarding the appropriate member and employer contribution
rates for the Public Employees', Teachers', School Employees', and Washington State Patrol
Retirement Systems, and periodically adopts pension contribution rates and changes to certain
long-term assumptions that affect pension funding. The contribution rates adopted by the PFC
are subject to revision by the Legislature.
In 2003 Initiative Measure Number 790 (I-790) created a board of trustees to establish
contribution rates and pension policy for members of the Law Enforcement Officers' and Fire
Fighters Retirement System Plan 2 (LEOFF2).
Summary of Bill: The bill as referred to committee was not considered.
SUMMARY OF BILL (Proposed Substitute): The nine member Washington State Patrol
Retirement System Board (the Board) is created to manage the Washington State Patrol
Retirement System (the Plan) for the benefit of members and beneficiaries of the Plan.
Board members include active and retired members of the Plan appointed by the Governor, an
appointee by the Director of the Office of Financial Management, two appointees from the Senate
Transportation Committee (one from each of the two largest caucuses), and two appointees from
the House Transportation Committee (one from each of the two largest caucuses). Providing
additional benefits to members and beneficiaries is the Board's priority.
Among other functions, the Board must:
The State Actuary must provide actuarial assistance and recommendations about long-term
economic financial conditions to the Board. The Board may hire an independent actuary to
evaluate or supplement the State Actuary's work for the Board. If the independent actuary and
the State Actuary cannot agree, then the Board must appoint a third actuary to review the
calculations of the independent actuary and the State Actuary.
Members of the Plan must make contributions based upon the rates established by the Board,
regardless of the level of appropriation provided in the biennial budget. Contribution rates
established by the Board are subject to revision by the Legislature.
The DRS must provide funding from its budget for the Board to hire staff and an Executive
Director. The Board must submit an annual budget to DRS, which DRS must include in its
budget request.
The Plan is eliminated from the list of retirement systems for which the Select Committee must
study pension issues, develop pension policies, and make recommendations to the Legislature.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: Yes.
Effective Date: The bill takes effect on July 1, 2008.
Staff Summary of Public Testimony: PRO: The Select Committee is too busy with issues relevant to the larger retirement systems, and will not adequately hear issues pertinent to the Washington State Patrol Retirement System. Between 1947 and 1980, the Washington State Patrol Retirement System was governed by the agency. Since then the small system has been vying with bigger groups for the attention of the Select Committee. It is vital to the members of the Washington State Patrol Retirement System to have a forum to address pension issues.
Persons Testifying: PRO: Tom Pillow, Rick Jensen, Washington State Patrol Troopers Association; Steve Sutton, Washington State Patrol Lieutenants Association.