Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Appropriations Committee |
HB 2340
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
Brief Description: Modifying the definition of index for the Washington state patrol retirement system.
Sponsors: Representatives Fitzgibbon, Leavitt, Lovick, Ormsby and Volz; by request of Select Committee on Pension Policy.
Brief Summary of Bill |
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Hearing Date: 1/20/20
Staff: David Pringle (786-7310).
Background:
The Washington State Patrol Retirement System (WSPRS) covers commissioned officers of the Washington State Patrol (WSP). As required by statute, WSPRS retiree benefits are adjusted annually based specifically on the Consumer Price Index (CPI) for the Seattle-Tacoma-Bremerton, Washington area for urban wage earners and clerical workers, up to 3 percent each year.
In 2018 the U.S. Bureau of Labor Statistics, which is responsible for producing the CPIs nationally, modified the geographic sample of the Seattle, Washington area CPI to no longer include Island, Kitsap, and Thurston counties. Additionally it was renamed the "Seattle-Tacoma-Bellevue CPI."
Even though retirees from other pension systems have their benefits adjusted based on the same index, other statutes related to the adjustments include a general reference to the "Seattle, Washington area" CPI rather than identifying it by the specific name.
Summary of Bill:
The reference to the Seattle-Tacoma-Bremerton Consumer Price Index (CPI) for urban wage earners and clerical workers is removed from the statute that defines the index used to adjust the benefits for retirees of the WSPRS, leaving reference to the “Seattle, Washington area” CPI.
Appropriation: None.
Fiscal Note: Requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.