SENATE BILL REPORT

HB 358

BYRepresentatives H. Sommers,  Bristow, Holland, B. Williams, Patrick, Sayan, Silver, Braddock, Hine, Fuhrman, C. Smith, Wang, Valle and May

Revising provisions relating to the state actuary and creating a joint committee on pension policy.

House Committe on Ways & Means/Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):March 23, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Cantu, Craswell, Deccio, Kreidler, McDonald, Moore, Owen, Rasmussen, Rinehart, Talmadge, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  March 26, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 23, 1987

BACKGROUND:

The Legislature has had numerous interim committees on pensions.  The most recent have been the Joint Committees on Public Retirement appointed during 1984 and 1986.

The office of the State Actuary exists within the legislative branch.  The State Actuary is appointed by a State Actuary Committee consisting of three members of the Senate and three members of the House of Representatives.  The Actuary is required to be a member of the American Academy of Actuaries.

SUMMARY:

A Joint Committee on Pension Policy is created consisting of eight members of the Senate and eight members of the House of Representatives.  Representation is split evenly between the two major political parties.

The joint committee shall:  (a)  study pension funding issues, develop pension and funding policy, and make recommendations to the Legislature; and (b) appoint or remove the State Actuary by a two-thirds vote of the committee.

The State Actuary Committee is abolished.  The requirement that the Actuary be a member of the American Academy of Actuaries is removed.  All actuarial valuation and experience studies must be signed by a member of the Academy.

Fiscal Note:      requested

Senate Committee - Testified: No one