HOUSE BILL REPORT

HB 2503

As Amended by the Senate

BYRepresentatives Vekich, Walker, R. King and Winsley; by request of Department of Labor and Industries

Allowing supplemental pension funds to be invested.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (11)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, O'Brien, Prentice, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE FEBRUARY 13, 1990

BACKGROUND:

The State Investment Board has statutory authority to invest certain industrial insurance trust funds:  the accident fund, the medical aid fund, and the reserve fund.  The supplemental pension fund is invested by the State Treasurer's office.

SUMMARY:

The State Investment Board's authority to invest industrial insurance trust funds is amended to include the supplemental pension fund.

EFFECT OF SENATE AMENDMENTS:  The amendment provides an emergency clause with an immediate effective date for the bill.

Fiscal Note:      Requested January 6, 1990.

House Committee ‑ Testified For:    Bob McCallister and Roger Neumaier, Department of Labor and Industries.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The rate of return on investments has historically been higher with the State Investment Board.  In addition, the State Treasurer's office charges a 20 percent fee for investment of the supplemental pension fund.  The fund would benefit and premiums would be lower for both employers and employees if higher returns could be achieved under the State Investment Board.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Brumsickle.