BILL REQ. #:  H-3775.2 

Read first time 01/12/10.   Referred to Committee on Ways & Means.

     AN ACT Relating to delaying benefit increases until the creation of a state retirement system risk analysis system; and adding a new section to chapter 41.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 41.04 RCW to read as follows:
     (1) The legislature finds that the September 9, 2009, study of the financial health of the Washington state retirement system by the state actuary has revealed a substantial deterioration in the financial strength and stability of the state retirement system plans. The study identified many factors that combined to cause the health of the plans to deteriorate, including large investment losses, delayed and suspended contributions, and increased benefits.
     (2)(a) Consistent with these findings, the legislature intends to prohibit any benefit increases in the Washington state retirement systems from being enacted until the development of a risk analysis system by the office of the state actuary. It is anticipated that a risk analysis system will be complete by December 31, 2012.
     (b) This prohibition encompasses all of the state retirement systems administered by the department of retirement systems, including the public employees' retirement system, the public safety employees' retirement system, the law enforcement officers' and firefighters' retirement system, the school employees' retirement system, the teachers' retirement system, and the Washington state patrol retirement system.
     (3) The select committee on pension policy may not recommend any increases in pension benefits to the retirement systems listed in subsection (2)(b) of this section until the earlier of December 31, 2011, or the completion of the risk assessment by the office of the state actuary.