(1) The board of
trustees have the following powers and duties and shall:
(a) Adopt actuarial tables, assumptions, and cost
methodologies in consultation with an enrolled actuary retained
by the board. The state actuary shall provide assistance when
the board requests. The actuary retained by the board shall
utilize the aggregate actuarial cost method, or other recognized
actuarial cost method based on a level percentage of payroll, as
that term is employed by the American academy of actuaries. The
actuary retained by the board shall adjust the actuarial cost
method to recognize the actuarial present value of future revenue
that will be included in the calculation of the market value of
assets pursuant to RCW 41.26.805(2), using the methods and
assumptions employed by the state actuary in RCW 41.26.805(9).
In determining the reasonableness of actuarial valuations,
assumptions, and cost methodologies, the actuary retained by the
board shall provide a copy of all such calculations to the state
actuary. If the two actuaries concur on the calculations,
contributions shall be made as set forth in the report of the
board's actuary. If the two actuaries cannot agree, they shall
appoint a third, independent, enrolled actuary who shall review
the calculations of the actuary retained by the board and the
state actuary. Thereafter, contributions shall be based on the
methodology most closely following that of the third actuary;
(b)(i) Provide for the design and implementation of
increased benefits for members and beneficiaries of the plan,
subject to the contribution limitations under RCW 41.26.725. An
increased benefit may not be approved by the board until an
actuarial cost of the benefit has been determined by the actuary
and contribution rates adjusted as may be required to maintain
the plan on a sound actuarial basis. Increased benefits as
approved by the board shall be presented to the legislature on
January 1st of each year. The increased benefits as approved by
the board shall become effective within ninety days unless a bill
is enacted in the next ensuing session of the legislature, by
majority vote of each house of the legislature, repealing the
action of the board;
(ii) As an alternative to the procedure in (b)(i) of this
subsection, recommend to the legislature changes in the benefits
for members and beneficiaries, without regard to the cost
limitations in RCW 41.26.725(3). Benefits adopted in this manner
shall have the same contractual protections as the minimum
benefits in the plan. The recommendations of the board shall be
presented to the legislature on January 1st of each year. These
measures shall take precedence over all other measures in the
legislature, except appropriations bills, and shall be either
enacted or rejected without change or amendment by the
legislature before the end of such regular session;
(c) Retain professional and technical advisors necessary for
the accomplishment of its duties. The cost of these services may
be withdrawn from the trust;
(d) Consult with the department for the purpose of improving
benefit administration and member services;
(e) Provide an annual report to the governor and the
legislature setting forth the actuarial funding status of the
plan and making recommendations for improvements in those aspects
of retirement administration directed by the legislature or
administered by the department;
(f) Establish uniform administrative rules and operating
policies in the manner prescribed by law;
(g) Engage administrative staff and acquire office space
independent of, or in conjunction with, the department. The
department shall provide funding from its budget for these
purposes;
(h) Publish on an annual basis a schedule of increased
benefits together with a summary of the minimum benefits as
established by the legislature which shall constitute the
official plan document; and
(i) Be the fiduciary of the plan and discharge the board's
duties solely in the interest of the members and beneficiaries of
the plan.
(2) Meetings of the board of trustees shall be conducted as
follows:
(a) All board meetings are open to the public, preceded by
timely public notice;
(b) All actions of the board shall be taken in open public
session, except for those matters which may be considered in
executive session as provided by law;
(c) The board shall retain minutes of each meeting setting
forth the names of those board members present and absent, and
their voting record on any voted issue; and
(d) The board may establish, with the assistance of the
appropriate office of state government, an internet web site
providing for interactive communication with state government,
members and beneficiaries of the plan, and the public.
(3) A quorum of the board is six board members. All board
actions require six concurring votes.
(4) The decisions of the board shall be made in good faith
and are final, binding, and conclusive on all parties. The
decisions of the board shall be subject to judicial review as
provided by law.
(5) A law enforcement officers' and firefighters' retirement
system plan 2 expense fund is established for the purpose of
defraying the expenses of the board. The board shall cause an
annual budget to be prepared consistent with the requirements of
chapter 43.88 RCW and shall draw the funding for the budget from
the investment income of the trust. Board members shall be
reimbursed for travel and education expenses as provided in RCW 43.03.050 and 43.03.060. The board shall make an annual report
to the governor, legislature, and state auditor setting forth a
summary of the costs and expenditures of the plan for the
preceding year. The board shall also retain the services of an
independent, certified public accountant who shall annually audit
the expenses of the fund and whose report shall be included in
the board's annual report.
[2008 c 99 § 5; 2003 c 2 § 5 (Initiative Measure No. 790, approved November 5, 2002).]
NOTES:
Findings -- Purpose -- 2008 c 99: See note following RCW 41.26.800.