Bill: SB 5900 — 2017
Making expenditures from the budget stabilization account for public employer unfunded actuarially accrued liabilities. (Braun)
Makes an appropriation from the budget stabilization account for expenditure into the public employees' retirement system plan 1 fund to reduce the unfunded actuarially accrued liability in that plan.
Requires the pension funding council to adopt an annual supplemental employer rate that reflects the impact of the state's contribution toward the public employees' retirement system plan's underfunded actuarially accrued liability.
Establishes a surcharge on employers, as defined in RCW 41.35.010, 41.37.010, or 41.40.010, to reimburse the state general fund for the value of the state's contribution toward the plan's underfunded actuarially accrued liability.
Requires the department of retirement systems to bill each employer a surcharge every month.
EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (First Substitute):
--Establishes a reduced UAAL rate of 4.63 percent for the 2017-2019 fiscal biennium rather than the Pension Funding Council being directed to do it as it is not scheduled to meet again until the end of 2018.
--Directs that the reduced rate and the surcharge begin in fiscal year 2018 instead of fiscal year 2019.
Adjusts the surcharge rates based on the changes to the 2017-19 biennium.
--Reduces the surcharge in the last year, fiscal year 2030, from 1.48 percent to 0.74 percent, which is one-half of the expected reduction.
--Clarifies how the surcharge is calculated.
WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=5900&Year=2017 (opens a new browser tab)
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