CERTIFICATION OF ENROLLMENT
ENGROSSED HOUSE BILL 1131
Chapter 233, Laws of 1995
(partial veto)
54th Legislature
1995 Regular Session
STATE RETIREMENT SYSTEMS‑-ECONOMIC ASSUMPTIONS
EFFECTIVE DATE: 5/5/95
Passed by the House March 14, 1995 Yeas 98 Nays 0
CLYDE BALLARD
Speaker of the House of Representatives
Passed by the Senate April 7, 1995 Yeas 41 Nays 0 |
CERTIFICATE
I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED HOUSE BILL 1131 as passed by the House of Representatives and the Senate on the dates hereon set forth. |
JOEL PRITCHARD
President of the Senate |
TIMOTHY A. MARTIN
Chief Clerk
|
Approved May 5, 1995, with the exception of section 2, which is vetoed. |
FILED
May 5, 1995 - 10:03 a.m. |
|
|
MIKE LOWRY Governor of the State of Washington |
Secretary of State State of Washington |
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ENGROSSED HOUSE BILL 1131
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Passed Legislature - 1995 Regular Session
State of Washington 54th Legislature 1995 Regular Session
By Representatives Silver and G. Fisher; by request of Office of the Forecast Council
Read first time 01/13/95. Referred to Committee on Appropriations.
AN ACT Relating to economic assumptions for state retirement systems; amending RCW 41.45.030 and 41.45.060; repealing RCW 41.45.040 and 41.45.0601; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 41.45.030 and 1993 c 519 s 17 are each amended to read as follows:
(1) Beginning September
1, ((1989)) 1995, and every ((six)) two years
thereafter, the state actuary shall submit to the council information regarding
the experience and financial condition of each state retirement system. The
council shall review this and such other information as it may require.
(2) By December 31,
1995, and every two years thereafter, the council, by affirmative vote
of five council members, shall ((review the information submitted by the
state actuary and shall)) adopt the following long-term economic
assumptions:
(a) Growth in system membership;
(b) Growth in salaries, exclusive of merit or longevity increases;
(c) Growth in inflation; and
(d) Investment rate of return.
The council shall work with the department of retirement systems, the state actuary, and the executive director of the state investment board, and shall consider long-term historical averages, in developing the economic assumptions.
(3) The assumptions
adopted by the council shall be used by the state actuary in conducting ((valuation))
all actuarial studies of the state retirement systems.
(((3) The council
may utilize information provided by the state actuary and such other
information as it may request.))
*Sec. 2. RCW 41.45.060 and 1993 c 519 s 19 are each amended to read as follows:
(1) ((For the
period of September 1, 1993, through August 31, 1995, the basic state
contribution rate for the law enforcement officers' and fire fighters'
retirement system, and the basic employer contribution rates for the public
employees' retirement system, the teachers' retirement system, and the
Washington state patrol retirement system shall be as determined in the 1991
valuations prepared by the office of the state actuary.)) The state
actuary shall provide actuarial valuation results based on the assumptions
adopted under RCW 41.45.030.
(2) Not later than
September 30, ((1994)) 1996, and every two years thereafter((:
(a))), consistent with the assumptions adopted
under RCW 41.45.030, the council shall adopt ((the contributions to be
used in the ensuing biennial period for the systems specified in subsection (1)
of this section.
(b))) both: (a) A basic state contribution rate
for the law enforcement officers' and fire fighters' retirement system; and (b)
basic employer contribution rates for the public employees' retirement system
plan I, the teachers' retirement system plan I, and the Washington state patrol
retirement system to be used in the ensuing biennial period.
(3) The employer and state contribution rates adopted by the council shall be the level percentages of pay that are needed:
(a) To fully amortize the total costs of the public employees' retirement system plan I, the teachers' retirement system plan I, the law enforcement officers' and fire fighters' retirement system plan I, and the unfunded liability of the Washington state patrol retirement system not later than June 30, 2024; and
(b) To also continue to fully fund the public employees' retirement system plan II, the teachers' retirement system plan II, and the law enforcement officers' and fire fighters' retirement system plan II in accordance with RCW 41.40.650, 41.32.775, and 41.26.450, respectively.
(4) The
council shall immediately notify the directors of the office of financial
management and department of retirement systems of the state and employer
contribution rates adopted ((under (a) of this subsection)).
(((c)))
(5) The director of the department of retirement systems shall collect
those rates adopted by the council ((under this chapter)).
*Sec. 2 was vetoed. See message at end of chapter.
NEW SECTION. Sec. 3. The following acts or parts of acts are each repealed:
(1) RCW 41.45.040 and 1993 c 519 s 18 & 1989 c 273 s 4; and
(2) RCW 41.45.0601 and 1993 c 519 s 20 & 1992 c 239 s 1.
NEW SECTION. Sec. 4. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.
Passed the House March 14, 1995.
Passed the Senate April 7, 1995.
Approved by the Governor May 5, 1995, with the exception of certain items which were vetoed.
Filed in Office of Secretary of State May 5, 1995.
Note: Governor's explanation of partial veto is as follows:
"I am returning herewith, without my approval as to section 2, Engrossed House Bill No. 1131 entitled:
"AN ACT Relating to economic assumptions for state retirement systems;"
Engrossed House Bill No. 1131 requires the Economic and Revenue Forecast Council to adopt long term economic assumptions for pension rate calculation purposes every two years instead of the current six year cycle. I strongly favor the direction this bill takes in providing for additional pension contribution rate stability. However, detailed and specific language preferable to that of section 2 exists in section 309 of Engrossed Substitute House Bill No. 1206, relating to retirement systems restructuring. These sections cannot properly be merged.
For this reason, I have vetoed section 2 of Engrossed House Bill No. 1131.
With the exception of section 2, Engrossed House Bill No. 1131 is approved."