SENATE BILL REPORT

SHB 1852

BYHouse Committee on State Government (originally sponsored by Representatives Sayan and H. Sommers) 

Modifying membership of the deferred compensation committee.

House Committe on State Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 26, 1988

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Zimmerman, Vice Chairman; DeJarnatt, Garrett, Halsan, Metcalf.

Senate Staff:Barbara Howard (786-7410)

                  February 26, 1988

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 26, 1988

BACKGROUND:

The Committee for Deferred Compensation develops and administers the State Deferred Compensation Program and salary reductions for dependent care.  Under the Deferred Compensation Program, the committee invests a portion of an employee's salary which has been voluntarily deferred by the employee.  The committee has a fiduciary relationship to the employees who participate in the program.

The committee consists of five members appointed by the governor.  The membership of the committee includes:  one representative of an employee association or union certified as an exclusive representative of at least one bargaining unit of classified employees; one representative of a credit union, savings and loan association, mutual savings bank, or bank; a person with expertise in the area of insurance or the investment of public funds; the State Attorney General or designee; and one additional member selected by the governor.

Members of the committee are not compensated but receive travel expenses.  There is no specified term of office.

SUMMARY:

The membership of the Committee for Deferred Compensation is increased from five to seven and the composition of the committee is altered to include three persons who are either state employees or representatives of employee associations or unions certified as an exclusive representative of at least one bargaining unit of classified employees, and four persons with expertise in the functions or programs of the committee, such as investment, banking or insurance.

Members serve staggered, three-year terms and may be removed by the governor for cause.

Members who are not state employees are compensated at $50 a day when the member attends a meeting, and all members receive travel expenses.

SUMMARY OF PROPOSED SENATE AMENDMENTS:

The composition is changed so that one member is an active employee and two are representatives of employee organizations or unions certified as an exclusive representative of a collective bargaining unit.  Committee members elect a chair from among their members.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Scott Sigmon, Washington Federation of State Employees (for); George Masten, Committee on Deferred Compensation (for)