SENATE BILL REPORT

SB 5509

BYSenators Rasmussen, Rinehart, Bauer, Hansen, Warnke, Wojahn, Saling, Talmadge, Moore and Garrett

Revising provisions on teachers' service retirement allowance provisions.

Senate Committee on Ways & Means

Senate Hearing Date(s):

Senate Staff:Charles Langen (786-7715)

AS OF FEBRUARY 4, 1987

BACKGROUND:

TRS has a provision for a post-retirement adjustment which is dependent upon an increase in the Consumer Price Index (CPI) and the "excess of the growth in the assets of the system over that required for meeting the actuarial liabilities of the system at that time."  This excess was to be determined solely by the Retirement Board.  Upon advice of the Office of the Attorney General, this provision was never operative because the employer's contribution rate increased in the same year the adjustment was to be effective.  This was determined to be proof that there was insufficient growth in the system.

SUMMARY:

A cost of living adjustment of up to 3.0 percent (upward or downward) is provided annually on July 1, based on the Consumer Price Index.

Fiscal Note:      requested