FINAL BILL REPORT

HB 2709

C 272 L 18

Synopsis as Enacted

Brief Description: Concerning the authority of the law enforcement officers' and firefighters' plan 2 retirement board to set the salary of the executive director.

Sponsors: Representatives Holy and Bergquist.

House Committee on Appropriations

Senate Committee on Ways & Means

Background:

The Law Enforcement Officers' and Fire Fighters' Plan 2 Retirement Board (LEOFF 2 Board) was created in 2003 by the passage of Initiative 790 in 2002. The LEOFF 2 Board is a state agency that serves as the board of trustees for the Law Enforcement Officers' and Fire Fighters' Retirement System Plan 2 (LEOFF 2) and has the authority to administer the LEOFF 2.  The LEOFF 2 Board has the authority to set the economic assumptions and the contribution rates for LEOFF 2 employees, employers, and the state, subject to revision by the Legislature; employ staff that are state employees; and adopt an annual budget.

The LEOFF 2 Board is composed of 11 members, including three members representing law enforcement officers, three members representing fire fighters, three members representing employers, one member of the Senate, and one member of the House of Representatives.

The State Human Resources division of the Office of Financial Management (OFM) manages statewide human resource policy functions, including classification, compensation, workforce data, civil service rules, recruitment, and other policy functions.  Like most agency directors, the position of Executive Director of the LEOFF 2 Board is exempt from civil service rules and serves at the pleasure of the LEOFF 2 Board.  The OFM requires agencies to establish an initial salary range or "band" for their exempt positions, and the OFM must approve salary or salary range changes outside of the previously approved range prior to adjustments.  Agencies are permitted to adjust salaries of exempt employees within the approved bands for specified reasons, but not adjust them above the approved band.

Summary:

The LEOFF 2 Board is authorized to fix the salary of the Executive Director, and the authority of the OFM to limit the salary of the Executive Director fixed by the LEOFF 2 Board is removed; however, the LEOFF 2 Board must consult with the Director of the Office of Financial Management and provide notice to the chairs of the House and Senate fiscal committees of changes to the salary.

Votes on Final Passage: