WSR 16-05-087 PERMANENT RULES DEPARTMENT OF LABOR AND INDUSTRIES [Filed February 16, 2016, 3:26 p.m., effective April 1, 2016] Effective Date of Rule: April 1, 2016.
Purpose: The pension discount rate is the interest rate used to account for the time value of money when evaluating the present value of future pension payments. Currently WAC 296-14-8810 sets the pension discount rate at 6.4 percent. The department has worked with the workers' compensation advisory committee to develop a plan for reducing the pension discount rate annually, through 2022, until it reaches 4.5 percent. The purpose of this rule making is to reduce the current pension discount rate to 6.3 percent in 2016.
Adopted under notice filed as WSR 16-01-164 on December 22, 2015.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: February 16, 2016.
Joel Sacks
Director
AMENDATORY SECTION (Amending WSR 15-02-061, filed 1/6/15, effective 4/1/15)
WAC 296-14-8810 Pension tables, pension discount rate and mortality tables.
(1) The department uses actuarially determined pension tables for calculating pension annuity values, required pension reserves, and actuarial adjustments to monthly benefit amounts.
(a) The department's actuaries calculate the pension tables based on:
(i) Mortality tables from nationally recognized sources;
(ii) The department's experience with rates of mortality, disability, and remarriage for annuity recipients; and
(iii) A pension discount rate of ((6.4)) 6.3 percent.
(b) The department's actuaries periodically investigate whether updates to the mortality tables relied on or the department's experience with rates of mortality, disability, and remarriage by its annuity recipients warrant updating the department's pension tables.
(2) To obtain a copy of any of the department's pension tables, contact the department of labor and industries actuarial services.
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