S-3394               _______________________________________________

                                                   SENATE BILL NO. 5068

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senator Moore

Read first time 1/24/86 and referred to Committee on Governmental Operations.

AN ACT Relating to the state actuary; amending RCW 44.44.010, 44.44.030, and 44.44.040; and repealing RCW 44.44.020.

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

        Sec. 1.  Section 19, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.010 are each amended to read as follows:

          (1) There is hereby created an office within the legislative branch to be known as the office of the state actuary.

          (2) The executive head of the office shall be the state actuary who shall be qualified by education and experience in the field of actuarial science ((and shall be a member of the American Academy of Actuaries)).  Such person shall be appointed by a ((special)) committee of the legislature consisting of:  (a) Three members of the senate selected by the president, two of whom shall be members of the majority party and one of whom shall be a member of the minority party; and (b) three members of the house of representatives selected by the speaker, two of whom shall be members of the majority party and one of whom shall be a member of the minority party.  ((The original appointment shall be made not later than ninety days after March 19, 1976.))  A two-thirds vote of the committee shall be required to make the appointment.

          (3) The committee shall meet at least quarterly at the call of the chairman.  The president of the senate shall appoint the chairman in even-numbered years, and the speaker of the house of representatives shall appoint the chairman in odd-numbered years.

(4) The state actuary shall serve at the pleasure of the committee and may be removed by a two-thirds vote of the committee.  If a vacancy occurs in the position of state actuary it shall be filled in the same manner as the original appointment.

        Sec. 2.  Section 21, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.030 are each amended to read as follows:

(1) The state actuary shall have the authority to select and employ such research, technical, clerical personnel, and consultants as the actuary deems necessary, whose salaries shall be fixed by the actuary and approved by the committee of legislators referred to in RCW 44.44.010, and who shall be exempt from the provisions of the state civil service law, chapter 41.06 RCW.

(2) All actuarial valuations and experience studies shall be signed by a member of the American academy of actuaries.  If the state actuary is not such a member, the state actuary, after approval by the committee, shall contract for a period not to exceed two years with a member of the American academy of actuaries to assist in developing actuarial valuations and experience studies.

        Sec. 3.  Section 22, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.040 are each amended to read as follows:

          The office of the state actuary shall have the following powers and duties:

          (1) Perform all actuarial services for the department of retirement systems, including all studies required by law.  Reimbursement for such services shall be made to the state actuary pursuant to the provisions of RCW 39.34.130 as now or hereafter amended.

          (2) Advise the legislature and the governor regarding the benefit provisions, funding policies, and investment policies of the department of retirement systems.

          (3) Consult with the legislature and the governor concerning determination of actuarial assumptions used by the department of retirement systems.

          (4) Prepare a report on each pension bill introduced in the legislature which shall briefly explain the financial impact of the bill.

          (5) Provide such actuarial services to the legislature as may be requested from time to time.

NEW SECTION. Sec. 4.  Section 20, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.020 are each repealed.