SENATE BILL REPORT

SHB 3007

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.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 19, 1990

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; DeJarnatt, Sutherland.

Senate Staff:Rod McAulay (786-7754)

                  February 26, 1990

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 19, 1990

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 current 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 policy 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 any defined contribution plan in existence as of January 1, 1990 is authorized.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

A technical change in terminology substituting "plan" for "policy" is made.

Senate Committee - Testified: Stan Finkelstein, Association of Washington Cities