SENATE BILL REPORT

SB 5359

BYSenators Moore, Bluechel, Gaspard and Johnson

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

Senate Committee on Ways & Means

Senate Hearing Date(s):February 19, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Bluechel, Deccio, Fleming, Kreidler, Lee, Moore, Rasmussen, Rinehart, Saling, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  March 12, 1987

AS PASSED SENATE, MARCH 11, 1987

BACKGROUND:

The State Actuary is the executive officer of the Office of the State Actuary.  That officer must be qualified by education and experience in the field of actuarial science and be a member of the American Academy of Actuaries.

A special committee of the Legislature employs the State Actuary and monitors the activities of the Office of the State Actuary.

The Office of the State Actuary advises the Legislature and the Governor regarding benefit provisions, funding and investment policies of the Department of Retirement Systems (DRS).

SUMMARY:

The requirement that the State Actuary be a member of the American Academy of Actuaries is removed.  If the State Actuary is not a member, a member of the Academy shall be engaged to assist in the development of actuarial valuations and experience studies.

The Joint Committee on Pension Policy is created, consisting of eight members of the Senate, with four members from each caucus, appointed by the President of the Senate; and eight members of the House of Representatives, with four members from each caucus, appointed by the Speaker of the House of Representatives.  It is exempt from the state's Civil Service provisions.  The members will be appointed before the end of the 1987 legislative session for a two-year period.  The Joint Committee is to study pension issues, including financial conditions of the state's retirement systems; develop pension and funding policy; make recommendations to the Legislature; and appoint or remove the State Actuary by two-thirds vote of the committee.

The Office of the State Actuary shall provide staff and assistance to the Joint Committee.  The Office shall advise the Legislature and the Governor regarding pension benefit provisions and funding policies, and investment policies of the State Investment Board.

Fiscal Note:      requested

Appointments by Legislature Required:     Prior to the end of the 1987 legislative session, the President of the Senate shall appoint four members from each caucus of the Senate and the Speaker of the House of Representatives shall appoint four members from each caucus of the House to the Joint Committee on Pension Policy.

Senate Committee - Testified: Jerry Allard, Acting State Actuary