SENATE BILL REPORT

SB 5579

BYSenators McDermott and Lee

Revising provisions relating to unfunded retirement system liability.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 9, 1987; March 3, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Craswell, Fleming, Kreidler, Lee, Moore, Rasmussen, Rinehart, Saling, Talmadge, Williams, Wojahn.

Senate Staff:Charles Langen (786-7715)

                  March 19, 1987

AS PASSED SENATE, MARCH 18, 1987

BACKGROUND:

The amortization periods for the unfunded actuarial accrued liability are:

      Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF):  40 years beginning July 1, 1970, and ending June 30, 2010;

      Public Employees' Retirement System (PERS):  40 years beginning July 1, 1986, and ending June 30, 2026; and

      Teachers' Retirement System (TRS):  50 years beginning July 1, 1965, and ending June 30, 2014.

SUMMARY:

The amortization periods of the unfunded actuarial accrued liability for LEOFF, PERS and TRS are revised to a uniform 40 years beginning July 1, 1987, and ending on June 30, 2027.

Fiscal Note:      requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Jerry Allard, Acting State Actuary