FINAL BILL REPORT

SHB 3007

                                  C 212 L 90

BYHouse Committee on Local Government (originally sponsored by Representative Nealey)

Relating to notice of employee pension plans provided by third class cities and fourth class municipalities.

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

Most local government employees are covered by public pension plans that are subject to state audit.  Some small towns have established unauthorized pension plans for their employees.  There is no requirement for a town to notify the state auditor if it provides an employee pension plan or policy that is not administered by the state.

SUMMARY:

A town must notify the state auditor if it provides a pension plan for its employees that is not administered by the state.  The notice must be given at the time the auditor is conducting an audit of the town.

No third class city or town may establish a pension plan for its employees that is not administered by the state, except that any defined contribution plan that is in existence as of January 1, 1990, is authorized.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    45     1 (Senate amended)

      House 94   0 (House concurred)

EFFECTIVE:June 7, 1990