AN
ACT Relating to the sharing of extraordinary investment gains; amending RCW
2.10.146, 41.26.460, 41.32.530, 41.32.785, 41.40.188, 41.40.660, 41.45.070,
41.45.060, and 41.04.275; adding a new chapter to Title 41 RCW; repealing RCW
41.04.275; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1.
Beginning July 1, 1998, and on January 1st of even-numbered years thereafter,
the annual increase amount as defined in RCW 41.32.010 and 41.40.010 shall be
increased by the gain-sharing increase amount, if any. The monthly retirement
allowance of a person in receipt of the benefit provided in RCW 41.32.489 or
41.40.197 shall immediately be adjusted to reflect any increase.
NEW
SECTION. Sec. 2. (1)
The gain-sharing increase amount shall be the amount of increase, rounded to the
nearest cent, that can be fully funded in actuarial present value by the amount
of extraordinary investment gains, if any. The amount of extraordinary
investment gains shall be calculated as follows:
(a)
One-half of the sum of the value of the net assets held in trust for pension
benefits in the teachers' retirement system plan I fund and the public
employees' retirement system plan I fund at the close of the previous state
fiscal year;
(b)
Multiplied by the amount which the compound average of investment returns on
those assets over the previous four state fiscal years exceeds ten percent.
(2)
The gain-sharing increase amount for July 1998, as provided for in section 1 of
this act, is ten cents.
NEW
SECTION. Sec. 3. The
legislature reserves the right to amend or repeal this chapter in the future
and no member or beneficiary has a contractual right to receive this
postretirement adjustment not granted prior to that amendment or repeal.
Sec.
4. RCW
2.10.146 and 1996 c 175 s 2 are each amended to read as follows:
(1)
Upon making application for a service retirement allowance under RCW 2.10.100
or a disability allowance under RCW 2.10.120, a judge who is eligible therefor
shall make an election as to the manner in which such service retirement shall
be paid from among the following designated options, calculated so as to be
actuarially equivalent to each other:
(a)
Standard allowance. A member selecting this option shall receive a retirement allowance,
which shall be computed as provided in RCW 2.10.110. The retirement allowance
shall be payable throughout the judge's life. However, if the judge dies
before the total of the retirement allowance paid to the judge equals the
amount of the judge's accumulated contributions at the time of retirement, then
the balance shall be paid to the member's estate, or such person or persons,
trust, or organization as the judge has nominated by written designation duly
executed and filed with the department of retirement systems or, if there is no
such designated person or persons still living at the time of the judge's
death, then to the surviving spouse or, if there is neither such designated
person or persons still living at the time of death nor a surviving spouse,
then to the judge's legal representative.
(b)
The department shall adopt rules that allow a judge to select a retirement
option that pays the judge a reduced retirement allowance and upon death, such
portion of the judge's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a designated
person. Such person shall be nominated by the judge by written designation
duly executed and filed with the department at the time of retirement. The
options adopted by the department shall include, but are not limited to, a
joint and one hundred percent survivor option and a joint and fifty percent
survivor option.
(2)(a)
A judge, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a judge is married and both the judge and the judge's spouse do
not give written consent to an option under this section, the department will
pay the judge a joint and fifty percent survivor benefit and record the judge's
spouse as the beneficiary. Such benefit shall be calculated to be actuarially
equivalent to the benefit options available under subsection (1) of this
section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
Sec.
5. RCW
41.26.460 and 1996 c 175 s 3 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.26.430 or disability
retirement under RCW 41.26.470, a member shall elect to have the retirement
allowance paid pursuant to the following options, calculated so as to be
actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a designated
person. Such person shall be nominated by the member by written designation
duly executed and filed with the department at the time of retirement. The
options adopted by the department shall include, but are not limited to, a
joint and one hundred percent survivor option and a joint and fifty percent
survivor option.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and member's spouse do
not give written consent to an option under this section, the department will
pay the member a joint and fifty percent survivor benefit and record the
member's spouse as the beneficiary. Such benefit shall be calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
Sec.
6. RCW
41.32.530 and 1996 c 175 s 4 are each amended to read as follows:
(1)
Upon an application for retirement for service under RCW 41.32.480 or
retirement for disability under RCW 41.32.550, approved by the department,
every member shall receive the maximum retirement allowance available to him or
her throughout life unless prior to the time the first installment thereof
becomes due he or she has elected, by executing the proper application
therefor, to receive the actuarial equivalent of his or her retirement
allowance in reduced payments throughout his or her life with the following
options:
(a)
Standard allowance. If he or she dies before he or she has received the
present value of his or her accumulated contributions at the time of his or her
retirement in annuity payments, the unpaid balance shall be paid to his or her
estate or to such person, trust, or organization as he or she shall have
nominated by written designation executed and filed with the department.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a person who
has an insurable interest in the member's life. Such person shall be nominated
by the member by written designation duly executed and filed with the
department at the time of retirement. The options adopted by the department
shall include, but are not limited to, a joint and one hundred percent survivor
option and a joint and fifty percent survivor option.
(c)
Such other benefits shall be paid to a member receiving a retirement allowance
under RCW 41.32.497 as the member may designate for himself, herself, or others
equal to the actuarial value of his or her retirement annuity at the time of
his retirement: PROVIDED, That the board of trustees shall limit withdrawals
of accumulated contributions to such sums as will not reduce the member's
retirement allowance below one hundred and twenty dollars per month.
(d)
A member whose retirement allowance is calculated under RCW 41.32.498 may also
elect to receive a retirement allowance based on options available under this
subsection that includes the benefit provided under RCW 41.32.770. This
retirement allowance option shall also be calculated so as to be actuarially
equivalent to the maximum retirement allowance and to the options available
under this subsection.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and the member's spouse
do not give written consent to an option under this section, the department
will pay the member a joint and fifty percent survivor benefit and record the
member's spouse as the beneficiary. Such benefit shall be calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d) The adjustment under (b) of this subsection shall accrue
from the beginning of the month following the date of the designated
beneficiary's death or from July 1, 1998, whichever comes last.
Sec.
7. RCW
41.32.785 and 1996 c 175 s 5 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.32.765 or retirement for
disability under RCW 41.32.790, a member shall elect to have the retirement
allowance paid pursuant to the following options, calculated so as to be
actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a designated
person. Such person shall be nominated by the member by written designation
duly executed and filed with the department at the time of retirement. The
options adopted by the department shall include, but are not limited to, a
joint and one hundred percent survivor option and a joint and fifty percent
survivor option.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and member's spouse do
not give written consent to an option under this section, the department will
pay the member a joint and fifty percent survivor benefit and record the
member's spouse as the beneficiary. Such benefit shall be calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d)
The adjustment under (b) of this subsection shall accrue from the beginning of
the month following the date of the designated beneficiary's death or from July
1, 1998, whichever comes last.
Sec.
8. RCW
41.40.188 and 1996 c 175 s 6 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.40.180 or retirement for
disability under RCW 41.40.210 or 41.40.230, a member shall elect to have the
retirement allowance paid pursuant to one of the following options calculated
so as to be actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a person
nominated by the member by written designation duly executed and filed with the
department at the time of retirement. The options adopted by the department
shall include, but are not limited to, a joint and one hundred percent survivor
option and a joint and fifty percent survivor option.
(c)
A member may elect to include the benefit provided under RCW 41.40.640 along
with the retirement options available under this section. This retirement
allowance option shall be calculated so as to be actuarially equivalent to the
options offered under this subsection.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and the member's spouse
do not give written consent to an option under this section, the department
shall pay a joint and fifty percent survivor benefit calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d) The adjustment under (b) of this subsection shall accrue
from the beginning of the month following the date of the designated
beneficiary's death or from July 1, 1998, whichever comes last.
Sec.
9. RCW
41.40.660 and 1996 c 175 s 7 are each amended to read as follows:
(1)
Upon retirement for service as prescribed in RCW 41.40.630 or retirement for
disability under RCW 41.40.670, a member shall elect to have the retirement
allowance paid pursuant to one of the following options, calculated so as to be
actuarially equivalent to each other.
(a)
Standard allowance. A member electing this option shall receive a retirement
allowance payable throughout such member's life. However, if the retiree dies
before the total of the retirement allowance paid to such retiree equals the
amount of such retiree's accumulated contributions at the time of retirement,
then the balance shall be paid to the member's estate, or such person or
persons, trust, or organization as the retiree shall have nominated by written
designation duly executed and filed with the department; or if there be no such
designated person or persons still living at the time of the retiree's death,
then to the surviving spouse; or if there be neither such designated person or
persons still living at the time of death nor a surviving spouse, then to the
retiree's legal representative.
(b)
The department shall adopt rules that allow a member to select a retirement
option that pays the member a reduced retirement allowance and upon death, such
portion of the member's reduced retirement allowance as the department by rule
designates shall be continued throughout the life of and paid to a person
nominated by the member by written designation duly executed and filed with the
department at the time of retirement. The options adopted by the department
shall include, but are not limited to, a joint and one hundred percent survivor
option and a joint and fifty percent survivor option.
(2)(a)
A member, if married, must provide the written consent of his or her spouse to
the option selected under this section, except as provided in (b) of this
subsection. If a member is married and both the member and the member's spouse
do not give written consent to an option under this section, the department
shall pay a joint and fifty percent survivor benefit calculated to be
actuarially equivalent to the benefit options available under subsection (1) of
this section unless spousal consent is not required as provided in (b) of this
subsection.
(b)
If a copy of a dissolution order designating a survivor beneficiary under RCW
41.50.790 has been filed with the department at least thirty days prior to a
member's retirement:
(i)
The department shall honor the designation as if made by the member under
subsection (1) of this section; and
(ii)
The spousal consent provisions of (a) of this subsection do not apply.
(3)(a)
Any member who retired before January 1, 1996, and who elected to receive a
reduced retirement allowance under subsection (1)(b) or (2) of this section is
entitled to receive a retirement allowance adjusted in accordance with (b) of
this subsection, if they meet the following conditions:
(i)
The retiree's designated beneficiary predeceases or has predeceased the
retiree; and
(ii)
The retiree provides to the department proper proof of the designated
beneficiary's death.
(b)
The retirement allowance payable to the retiree, as of July 1, 1998, or the
date of the designated beneficiary's death, whichever comes last, shall be
increased by the percentage derived in (c) of this subsection.
(c)
The percentage increase shall be derived by the following:
(i)
One hundred percent multiplied by the result of (c)(ii) of this subsection
converted to a percent;
(ii)
Subtract one from the reciprocal of the appropriate joint and survivor option
factor;
(iii)
The joint and survivor option factor shall be from the table in effect as of
July 1, 1998.
(d) The adjustment under (b) of this subsection shall accrue
from the beginning of the month following the date of the designated
beneficiary's death or from July 1, 1998, whichever comes last.
Sec.
10. RCW
41.45.070 and 1995 c 239 s 310 are each amended to read as follows:
(1)
In addition to the basic employer contribution rate established in RCW
41.45.060, the department shall also charge employers of public employees'
retirement system, teachers' retirement system, or Washington state patrol
retirement system members an additional supplemental rate to pay for the cost
of additional benefits, if any, granted to members of those systems. Except
as provided in subsection (6) of this section, the supplemental
contribution rates required by this section shall be calculated by the state
actuary and shall be charged regardless of language to the contrary contained
in the statute which authorizes additional benefits.
(2)
In addition to the basic state contribution rate established in RCW 41.45.060
for the law enforcement officers' and fire fighters' retirement system the
department shall also establish a supplemental rate to pay for the cost of
additional benefits, if any, granted to members of the law enforcement
officers' and fire fighters' retirement system. Except as provided in
subsection (6) of this section, this supplemental rate shall be calculated
by the state actuary and the state treasurer shall transfer the additional
required contributions regardless of language to the contrary contained in the
statute which authorizes the additional benefits.
(3)
The supplemental rate charged under this section to fund benefit increases
provided to active members 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 Washington state patrol retirement
system, shall be calculated as the level percentage of all members' pay needed
to fund the cost of the benefit not later than June 30, 2024.
(4)
The supplemental rate charged under this section to fund benefit increases
provided to active and retired members of the public employees' retirement
system plan II, the teachers' retirement system plan II and plan III, or the
law enforcement officers' and fire fighters' retirement system plan II, shall
be calculated as the level percentage of all members' pay needed to fund the
cost of the benefit, as calculated under RCW 41.40.650((, 41.32.775,))
or 41.26.450, respectively.
(5)
The supplemental rate charged under this section to fund postretirement
adjustments which are provided on a nonautomatic basis to current retirees
shall be calculated as the percentage of pay needed to fund the adjustments as
they are paid to the retirees. The supplemental rate charged under this
section to fund automatic postretirement adjustments for active or retired
members of the public employees' retirement system plan I and the teachers'
retirement system plan I shall be calculated as the level percentage of pay
needed to fund the cost of the automatic adjustments not later than June 30,
2024.
(6)
A supplemental rate shall not be charged to pay for the cost of additional
benefits granted to members pursuant to chapter . . ., Laws of 1998
(this act).
Sec.
11. RCW
41.45.060 and 1995 c 239 s 309 are each amended to read as follows:
(1)
The state actuary shall provide actuarial valuation results based on the
assumptions adopted under RCW 41.45.030.
(2)
Not later than September 30, 1996, and every two years thereafter, consistent
with the assumptions adopted under RCW 41.45.030, the council shall adopt
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,
except as provided in subsection (5) of this section; and
(b)
To also continue to fully fund the public employees' retirement system plan II,
the teachers' retirement system plans II and III, and the law enforcement
officers' and fire fighters' retirement system plan II in accordance with RCW
41.40.650, 41.26.450, and this section.
(4)
The aggregate actuarial cost method shall be used to calculate a combined plan
II and III employer contribution rate.
(5)
An amount equal to the amount of extraordinary investment gains as defined
in section 2 of this act shall be used to shorten the amortization period for
the public employees' retirement system plan I and the teachers' retirement
system plan I.
(6)
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.
(((6)))
(7) The director of the department of retirement systems shall collect
those rates adopted by the council.
Sec.
12. RCW
41.04.275 and 1994 c 298 s 6 are each amended to read as follows:
The
pension funding account is created in the state treasury. Moneys in the
account may be spent only after appropriation. ((Expenditures from the
account may be used only for the continuing costs of any state retirement
system benefits in effect on July 1, 1993, consistent with section 919, chapter
24, Laws of 1993 sp. sess.))
NEW
SECTION. Sec. 13. RCW
41.04.275 and 1994 c 298 s 6 are each repealed effective July 1, 1998.
NEW
SECTION. Sec. 14.
Except for section 13 of this act, 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 takes effect immediately.
NEW SECTION. Sec. 15.
Sections 1 through 3 of this act constitute a new chapter in Title 41 RCW.
