(1)
The state actuary shall provide preliminary actuarial valuation
results based on the economic assumptions and asset value
smoothing technique included in RCW 41.45.035 or adopted under
RCW 41.45.030 or 41.45.035.
(2) Not later than July 31, 2008, and every two years
thereafter, consistent with the economic assumptions and asset
value smoothing technique included in RCW 41.45.035 or adopted
under RCW 41.45.030 or 41.45.035, the council shall adopt and may
make changes to:
(a) A basic state contribution rate for the law enforcement
officers' and firefighters' retirement system plan 1;
(b) Basic employer contribution rates for the public
employees' retirement system, the teachers' retirement system,
and the Washington state patrol retirement system; and
(c) Basic employer contribution rates for the school
employees' retirement system and the public safety employees'
retirement system for funding both those systems and the public
employees' retirement system plan 1.
The council may adopt annual rate changes for any plan for
any rate-setting period. The contribution rates adopted by the
council shall be subject to revision by the legislature.
(3) The employer and state contribution rates adopted by the
council shall be the level percentages of pay that are needed:
(a) To fully amortize the total costs of the law enforcement
officers' and firefighters' retirement system plan 1 not later
than June 30, 2024;
(b) To fully fund the public employees' retirement system
plans 2 and 3, the teachers' retirement system plans 2 and 3, the
public safety employees' retirement system plan 2, and the school
employees' retirement system plans 2 and 3 in accordance with RCW 41.45.061, 41.45.067, and this section; and
(c) To fully fund the public employees' retirement system
plan 1 and the teachers' retirement system plan 1 in accordance
with RCW 41.45.070, 41.45.150, and this section.
(4) The aggregate actuarial cost method shall be used to
calculate a combined plan 2 and 3 normal cost, a Washington state
patrol retirement system normal cost, and a public safety
employees' retirement system normal cost.
(5) A modified entry age normal cost method, as set forth in
this chapter, shall be used to calculate employer contributions
to the public employees' retirement system plan 1 and the
teachers' retirement system plan 1.
(6) The employer contribution rate for the public employees'
retirement system and the school employees' retirement system
shall equal the sum of:
(a) The amount required to pay the combined plan 2 and plan
3 normal cost for the system, subject to any minimum rates
applied pursuant to RCW 41.45.155; plus
(b) The amount required to amortize the unfunded actuarial
accrued liability in plan 1 of the public employees' retirement
system over a rolling ten-year period using projected future
salary growth and growth in system membership, and subject to any
minimum or maximum rates applied pursuant to RCW 41.45.150; plus
(c) The amounts required to amortize the costs of any
benefit improvements in plan 1 of the public employees'
retirement system that become effective after June 30, 2009. The
cost of each benefit improvement shall be amortized over a fixed
ten-year period using projected future salary growth and growth
in system membership. The amounts required under this subsection
are not subject to, and are collected in addition to, any minimum
or maximum rates applied pursuant to RCW 41.45.150.
(7) The employer contribution rate for the public safety
employees' retirement system shall equal the sum of:
(a) The amount required to pay the normal cost for the
system, subject to any minimum rates applied pursuant to RCW 41.45.155; plus
(b) The amount required to amortize the unfunded actuarial
accrued liability in plan 1 of the public employees' retirement
system over a rolling ten-year period using projected future
salary growth and growth in system membership, and subject to any
minimum or maximum rates applied pursuant to RCW 41.45.150; plus
(c) The amounts required to amortize the costs of any
benefit improvements in plan 1 of the public employees'
retirement system that become effective after June 30, 2009. The
cost of each benefit improvement shall be amortized over a fixed
ten-year period using projected future salary growth and growth
in system membership. The amounts required under this subsection
are not subject to, and are collected in addition to, any minimum
or maximum rates applied pursuant to RCW 41.45.150.
(8) The employer contribution rate for the teachers'
retirement system shall equal the sum of:
(a) The amount required to pay the combined plan 2 and plan
3 normal cost for the system, subject to any minimum rates
applied pursuant to RCW 41.45.155; plus
(b) The amount required to amortize the unfunded actuarial
accrued liability in plan 1 of the teachers' retirement system
over a rolling ten-year period using projected future salary
growth and growth in system membership, and subject to any
minimum or maximum rates applied pursuant to RCW 41.45.150; plus
(c) The amounts required to amortize the costs of any
benefit improvements in plan 1 of the teachers' retirement system
that become effective after June 30, 2009. The cost of each
benefit improvement shall be amortized over a fixed ten-year
period using projected future salary growth and growth in system
membership. The amounts required under this subsection are not
subject to, and are collected in addition to, any minimum or
maximum rates applied pursuant to RCW 41.45.150.
(9) The council shall immediately notify the directors of
the office of financial management and department of retirement
systems of the state and employer contribution rates adopted.
The rates shall be effective for the ensuing biennial period,
subject to any legislative modifications.
(10) The director shall collect those rates adopted by the
council. The rates established in RCW 41.45.062, or by the
council, shall be subject to revision by the legislature.
(11) The state actuary shall prepare final actuarial
valuation results based on the economic assumptions, asset value
smoothing technique, and contribution rates included in or
adopted under RCW 41.45.030, 41.45.035, and this section.
[2009 c 561 § 3; 2007 c 280 § 2; 2005 c 370 § 2; (2005 c 370 § 1 expired July 1, 2006); 2004 c 242 § 39. Prior: 2003 c 294 § 10; 2003 c 92 § 3; 2002 c 26 § 2; prior: 2001 2nd sp.s. c 11 § 10; 2001 c 329 § 10; 2000 2nd sp.s. c 1 § 905; 2000 c 247 § 504; prior: 1998 c 341 § 404; 1998 c 340 § 11; 1998 c 283 § 6; 1995 c 239 § 309; 1993 c 519 § 19; 1992 c 239 § 2; 1990 c 18 § 1; 1989 c 273 § 6.]
NOTES:
Effective date -- 2009 c 561: See note following RCW 41.45.010.
Effective date -- 2005 c 370 §§ 2 and 4: "Sections 2 and 4 of this act take effect July 1, 2006." [2005 c 370 § 8.]
Effective date -- 2005 c 370 §§ 1, 3, and 6: "Sections 1, 3, and 6 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2005." [2005 c 370 § 7.]
Expiration date -- 2005 c 370 §§ 1 and 3: "Sections 1 and 3 of this act expire July 1, 2006." [2005 c 370 § 9.]
Effective date -- 2004 c 242: See RCW 41.37.901.
Severability -- Effective date -- 2003 c 92: See RCW 41.26.905 and 41.26.906.
Effective date -- 2001 2nd sp.s. c 11: See note following RCW 41.45.030.
Effective date -- 2001 c 329: See note following RCW 43.43.120.
Severability -- Effective date -- 2000 2nd sp.s. c 1: See notes following RCW 41.05.143.
Effective dates -- Subchapter headings not law -- 2000 c 247: See RCW 41.40.931 and 41.40.932.
Effective date -- 1998 c 341: See note following RCW 41.34.060.
Effective date -- 1998 c 340: See note following RCW 2.10.146.
Intent -- Purpose -- 1995 c 239: See note following RCW 41.32.831.
Effective date -- Part and subchapter headings not law -- 1995 c 239: See notes following RCW 41.32.005.
Part headings not law -- Effective date -- 1993 c 519: See notes following RCW 28A.400.212.
Effective date -- 1992 c 239: "This act shall take effect September 1, 1992." [1992 c 239 § 6.]
Effective date -- 1990 c 18: "This act shall take effect September 1, 1991." [1990 c 18 § 3.]
Benefits not contractual right until date specified: RCW 41.34.100.