SSB 5168
SignedSenate
State actuary appointment
Concerning the appointment, removal, and salary of the state actuary.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill shifts authority over the state actuary from a now-defunct appointment committee to the pension funding council, which will now hire, fire, and set the actuary’s pay—after considering input from the select committee on pension policy. It also removes civil service protections for the actuary’s staff and updates reporting requirements for actuarial work.
- The pension funding council now has the authority to appoint, remove, and set the salary of the state actuary.
- The council must consider recommendations from the executive committee of the select committee on pension policy when making decisions about the state actuary.
- The state actuary appointment committee (established under former RCW 44.44.013) is repealed and eliminated.
- The state actuary’s support staff (research, technical, clerical, and consultants) are now exempt from civil service rules, with salaries set by the actuary and approved by the council.
- Actuarial reports must be signed by a member of the American Academy of Actuaries, or the actuary must contract with such a member for up to two years if not a member themselves.
Who is affected
- State actuary — The state actuary is now directly appointed, removed, and paid by the pension funding council, rather than a separate appointment committee, and must consider recommendations from the select committee on pension policy's executive committee.
- Pension funding council — The council now has direct authority over hiring, firing, and setting pay for the state actuary and their staff, and staff salaries are approved by the council instead of the former appointment committee.
- Select committee on pension policy — The select committee on pension policy gains a formal role in advising on the state actuary’s appointment, removal, and salary, and will receive actuarial audit results to inform its recommendations on pension funding.
- Actuarial support staff (research, technical, clerical, consultants) — State civil service rules no longer apply to the state actuary’s support staff, meaning their hiring and pay are set internally by the actuary and approved by the council.
Pro/Con Analysis
Stronger case for concerns
Potential Benefits (2)
Formalizing the select committee’s role in advising on the state actuary’s appointment and receiving actuarial audit results improves transparency and legislative oversight of pension funding assumptions, potentially leading to more informed policy decisions.
Local GovernmentRef: Sec. 1(3); Amended RCW 41.04.281(3)Exempting actuarial support staff from civil service rules and allowing the actuary to set salaries (with council approval) may increase flexibility in hiring and compensation, potentially improving responsiveness to technical needs—though this benefit is likely limited to the office of the state actuary and not broadly applicable to state staffing.
Local GovernmentLean industryRef: Sec. 3 (1); Amended RCW 44.44.030(1)
Potential Concerns (3)
Removal of civil service protections for the state actuary’s support staff increases job insecurity and reduces due process safeguards for non-unionized public employees, potentially weakening institutional memory and reducing recruitment/retention of qualified technical staff in a critical oversight function.
Local GovernmentLean industryRef: Sec. 2; New Sec. 2Consolidating appointment, removal, and salary authority over the state actuary in the pension funding council—while requiring consultation with the select committee—concentrates decision-making power within a politically appointed body, potentially reducing the actuary’s operational independence and increasing susceptibility to political pressure on pension funding assumptions.
Local GovernmentIndustryRef: Sec. 2; New Sec. 2Requiring actuarial reports to be signed by an American Academy of Actuaries (AAA) member—or contracted AAA member for up to two years—may improve technical credibility and professional standards, but could also increase costs and delay reporting if qualified AAA members are scarce in Washington, potentially undermining timely oversight of pension solvency.
Public SafetyLean industryRef: Sec. 3 (2); Amended RCW 44.44.030(2)
Who Is Most Affected
The state actuary gains direct accountability to the pension funding council, which may improve alignment with pension system needs but reduces insulation from political influence—potentially compromising actuarial independence, especially if the council seeks to soften assumptions about future liabilities or investment returns.
The pension funding council gains significant personnel authority over the actuary and staff, strengthening its control over pension funding analysis—but this may reduce checks on the council’s own funding assumptions, especially if political pressure overrides technical objectivity.
The select committee on pension policy gains a formal advisory role and access to audit results, enhancing its oversight capacity—but its influence remains advisory, and final authority rests with the council, limiting its practical impact on outcomes.
Actuarial support staff lose civil service protections, increasing job insecurity and potentially reducing morale or long-term commitment—though the actuary gains flexibility in staffing, which may benefit operational efficiency if used responsibly.
Public employees and retirees in state pension systems may face higher risk if the weakened independence of the actuary leads to overly optimistic assumptions about funding or investment returns, increasing the likelihood of future benefit cuts or tax increases to cover shortfalls.