BILL REQ. #:  Z-0961.1 

Read first time 01/18/08.   Referred to Committee on Ways & Means.

     AN ACT Relating to providing additional revenues for public safety, including law enforcement officers and firefighters plan 2 pension plan benefits; adding new sections to chapter 41.26 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that local governments need additional revenues to provide public safety resources in order to protect the citizens of Washington from fire and crime. The legislature finds that the current benefit formula and contributions for the law enforcement officers and firefighters plan 2 are inadequate to modify that formula in recognition of the shorter working careers for firefighters and police officers. The legislature recognizes that although some officers and firefighters are able to work comfortably beyond twenty-five years, the combat nature of fire suppression and law enforcement generally require earlier retirement ages. In recognition of the physical demands of the professions and the inherent risks faced by law enforcement officers and firefighters, eligibility for retirement in the law enforcement officers and firefighters plan 2 system has been set at age fifty-three. However, the benefit formula is designed for careers of thirty-five to forty years, making retirement at age fifty-three an unrealistic option for many.
     Therefore, the legislature declares that it is the purpose of this act to provide local government public safety employers and the law enforcement officers and firefighters plan 2 pension plan with additional shared revenues when state general fund revenues increase by at least one percent over the prior year's collections.

NEW SECTION.  Sec. 2   A new section is added to chapter 41.26 RCW to read as follows:
     The local public safety enhancement account is created in the state treasury. All receipts from section 4 of this act must be deposited into the account. Expenditures from the account may be used as follows:
     (1) Fifty percent of the money in the account shall be transferred to the law enforcement officers' and firefighters' retirement system benefits improvement account established in section 3 of this act.
     (2) The balance shall be distributed by the state treasurer to all jurisdictions with law enforcement officers and firefighters plan 2 members on a proportionate share basis based on the number of plan 2 members each jurisdiction has on January 1st of the prior year divided by the total number of plan 2 members in the system. Moneys distributed from the balance of the public safety enhancement account may be used for the following purposes: (a) Criminal justice, including those where an ancillary benefit to the civil justice occurs, and includes domestic violence programs; (b) information and assistance to parents and families dealing with at-risk or runaway youth; or (c) public safety.

NEW SECTION.  Sec. 3   A new section is added to chapter 41.26 RCW to read as follows:
     (1) The local law enforcement officers' and firefighters' retirement system benefits improvement account (benefits account) is created within the law enforcement officers' and firefighters' retirement system plan 2 fund. All receipts from section 2(1) of this act must be deposited into the account.
     (2) The funds in the benefits account shall not be included by the state actuary in the calculation of the market value of assets of the law enforcement officers' and firefighters' retirement system plan 2 fund until the board directs the state actuary in writing to do so for purposes of financing benefits adopted by the board pursuant to and consistent with RCW 41.26.720. The board, in consultation with the state investment board, shall provide the state actuary, in writing, the market value of the amount directed from the benefits account for inclusion in the calculation of the market value of assets of the law enforcement officers' and firefighters' retirement system plan 2 fund. The market value of the amount directed from the benefits account shall be determined as of the date of the direction from the board to include this amount for purposes of financing benefits adopted by the board pursuant to and consistent with RCW 41.26.720.
     (3) The law enforcement officers' and firefighters' plan 2 retirement board shall administer the fund in an actuarially sound manner.
     (4) The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in the benefits account. The state investment board is authorized to adopt investment policies for the money in the benefits account. All investment and operating costs associated with the investment of money within the benefits account shall be paid pursuant to RCW 43.33A.160 and 43.84.160. With the exception of these expenses, the earnings from the investment of the money shall be retained by the benefits account.
     (5) All investments made by the state investment board shall be made with the exercise of that degree of judgment and care pursuant to RCW 43.33A.140 and the investment policy established by the state investment board.
     (6) When appropriate for investment purposes, the state investment board may commingle money in the fund with other funds.
     (7) The authority to establish all policies relating to the benefits account, other than the investment policies set forth in this section, resides with the law enforcement officers' and firefighters' plan 2 retirement board. Other than investments by and expenses of the state investment board, disbursements from this fund may be made only on the authorization of the law enforcement officers' and firefighters' plan 2 retirement board for purposes of funding the member, employer, and state cost of financing benefits adopted by the board pursuant to and consistent with RCW 41.26.720.
     (8) The state investment board shall routinely consult with and communicate with the law enforcement officers' and firefighters' plan 2 retirement board on the investment policy, earnings of the trust, and related needs of the benefits account.

NEW SECTION.  Sec. 4   A new section is added to chapter 41.26 RCW to read as follows:
     By September 30th of each year in which the prior fiscal year's general state revenues exceed the previous fiscal year's revenues by more than one percent, the state treasurer shall transfer the lesser of one-third of the increase, or fifty million dollars, to the local public safety enhancement account.