WSR 18-01-114
[Filed December 19, 2017, 11:27 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 17-22-112.
Title of Rule and Other Identifying Information: Chapter 296-14 WAC, Industrial insurancePension tables, pension discount rate and mortality tables; and amending WAC 296-14-8810.
Hearing Location(s): On January 23, 2018, at 1:30 p.m., at the Department of Labor and Industries, 7273 Linderson Way S.W., Room S118, Tumwater, WA 98501.
Date of Intended Adoption: February 20, 2018.
Submit Written Comments to: Suzy Campbell, P.O. Box 44250, Olympia, WA 98504-4250, email, fax 360-902-6817, by 5 p.m., on January 24, 2018.
Assistance for Persons with Disabilities: Contact Veronica Berets, phone 360-902-4252, fax 360-902-6509, TTY 360-902-4252, email, by January 16, 2018.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The pension discount rate is the interest rate used to account for the time value of money when evaluating the present value of future pension payments. Currently, WAC 296-14-8810 sets the pension discount rate at 6.2 percent. The department has worked with the workers' compensation advisory committee (WCAC) to develop a plan for reducing the pension discount rate annually, through 2022, until it reaches 4.5 percent. The purpose of this rule making is to reduce the current pension discount rate to 6.1 percent in 2018.
Reasons Supporting Proposal: See above.
Statutory Authority for Adoption: RCW 51.04.020, 51.44.070(1), 51.44.080.
Statute Being Implemented: RCW 51.44.070.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of labor and industries, governmental.
Name of Agency Personnel Responsible for Drafting: Suzy Campbell, Tumwater, Washington, 360-902-5003; Implementation: Sandi Haerling, Tumwater, Washington, 360-902-5006; and Enforcement: Vickie Kennedy, Tumwater, Washington, 360-902-4997.
A cost-benefit analysis is not required under RCW 34.05.328. The department of labor and industries is exempt from preparing a cost-benefit analysis under RCW 34.05.328 (5)(b)(vi) since the purpose of this rule making is to set or adjust fees pursuant to legislative standards.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025(3) as the rules set or adjust fees under the authority of RCW 19.02.075 or that set or adjust fees or rates pursuant to legislative standards, including fees set or adjusted under the authority of RCW 19.80.045.
December 19, 2017
Joel Sacks
AMENDATORY SECTION (Amending WSR 17-05-096, filed 2/14/17, effective 4/1/17)
WAC 296-14-8810 Pension tables, pension discount rate and mortality tables.
(1) The department uses actuarially determined pension tables for calculating pension annuity values, required pension reserves, and actuarial adjustments to monthly benefit amounts.
(a) The department's actuaries calculate the pension tables based on:
(i) Mortality tables from nationally recognized sources;
(ii) The department's experience with rates of mortality, disability, and remarriage for annuity recipients; and
(iii) A pension discount rate of ((6.2)) 6.1 percent.
(b) The department's actuaries periodically investigate whether updates to the mortality tables relied on or the department's experience with rates of mortality, disability, and remarriage by its annuity recipients warrant updating the department's pension tables.
(2) To obtain a copy of any of the department's pension tables, contact the department of labor and industries actuarial services.