ESHB 1260 -
By Committee on Transportation
ADOPTED 04/06/2007
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 41.45.0631 and 2006 c 94 s 2 are each amended to read
as follows:
(1) The allocation of costs between the employer and members of the
Washington state patrol retirement system shall be made only after the
application of any minimum total contribution rate that may be in
effect for the system under subsection (4) of this section. For
benefit improvements effective on or after July 1, 2007, costs shall be
shared equally by members and the employer, and any cap on member
contributions shall be adjusted accordingly. The member contribution
rate shall be based on the adjusted total contribution rate described
in subsection (2) of this section. Beginning July 1, ((2001)) 2007,
the required member contribution rate for members of the Washington
state patrol retirement system shall be ((two percent or equal to the
employer rate adopted under RCW 41.45.060 and 41.45.070 for the
Washington state patrol retirement system, whichever is greater. The
employee contribution rate shall not, however, include any increase as
a result of)) the lesser of the following: (a) One-half of the
adjusted total contribution rate for the system; or (b) seven percent,
plus fifty percent of the contribution rate increase caused by any
benefit improvements effective on or after July 1, 2007.
(2) The employer shall continue to pay for all costs attributable
to distributions under RCW 43.43.270(2) for survivors of members who
became disabled under RCW 43.43.040(2) prior to July 1, 2006, until
such costs are fully paid. In order to avoid charging members for
these costs, the total required contribution rate shall be adjusted to
exclude these costs. The result of the adjustment shall be the
adjusted total contribution rate that is to be used to calculate the
required member contribution rate.
(3) The employer rate shall be the contribution rate required to
cover all total system costs that are not covered by the member
contribution rate.
(4) Beginning July 1, 2009, a minimum total contribution rate is
established for the Washington state patrol retirement system. The
total Washington state patrol retirement system contribution rate as
adopted by the pension funding council and subject to revision by the
legislature may exceed, but may not drop below, the established minimum
total contribution rate. The minimum total contribution rate shall
equal the total contribution rate required to fund seventy percent of
the Washington state patrol retirement system's normal cost as
calculated under the entry age normal cost method. Upon completion of
each biennial actuarial valuation, the state actuary shall review the
appropriateness of this minimum total contribution rate and recommend
to the legislature any adjustments as may be needed.
NEW SECTION. Sec. 2 If both Senate Bill No. 6129 and Substitute
Senate Bill No. 5937 are not enacted by June 30, 2007, this act is null
and void.
NEW SECTION. Sec. 3 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
July 1, 2007."
ESHB 1260 -
By Committee on Transportation
ADOPTED 04/06/2007
On page 1, line 2 of the title, after "system;" strike the remainder of the title and insert "amending RCW 41.45.0631; creating a new section; providing an effective date; and declaring an emergency."
EFFECT: Restores a necessary emergency clause. This bill has provisions that take effect beginning with the first day of the fiscal year/biennium (July 1, 2007). Without an emergency clause, this bill would take effect ninety days after sine die (i.e. July 21, 2007), which would be approximately 20 days after the date specified in the substance of the bill. Also makes a technical change to acknowledge that contribution rates are "adopted" by the pension funding council and "subject to revision" by the Legislature.