SENATE BILL REPORT

HB 377

BYRepresentatives Hankins, Walk and H. Sommers; by request of  Office of Financial Management

Renaming the deferred compensation revolving fund.

House Committe on State Government

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, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  March 27, 1987

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

BACKGROUND:

The Committee for Deferred Compensation manages public employee deferred compensation plans.  All committee expenses, including the investment of deferred compensation funds and staffing and administrative expenses, are paid from the Deferred Compensation Revolving Fund in the State Treasury.

In 1984 the Legislature enacted provisions requiring the Director of the Office of Financial Management to adopt a comprehensive state budgeting, accounting, and reporting system that embodies national generally accepted accounting principles, known as "GAAP"  (RCW 43.88.037).  GAAP requires that deferred compensation plans for public employees be accounted for, in agency funds, separately from associated staffing and administrative expenses.

SUMMARY:

State accounting requirements for public employee deferred compensation plans are amended as follows to comply with GAAP:

The Deferred Compensation Revolving Fund is renamed the "Deferred Compensation Principal Account".  Monies in the existing Revolving Fund are divided between the Principal Account and the newly created "Deferred Compensation Administrative Account."  The Principal Account includes only the principal activities of the present Revolving Fund (investment of deferred compensation funds), while the Administrative Account covers only associated staffing and administrative expenses.

Fiscal Note:      none requested

Senate Committee - Testified: No one