Rule Updates

Rules Under Development

Industrial insurance

Chapter 296-14, WAC

All updates for this rule:

Pension Discount Rate (PDR) (Chapter 296-14 WAC, Industrial Insurance)

The purpose of this rulemaking is to update Chapter 296-14 WAC, Industrial Insurance, regarding the pension discount rate (PDR) for self-insurance. 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. The purpose of this rulemaking is to lower the PDR for annual investment returns for the reserve funds for self-insured employers. This rulemaking will consider reducing the pension discount rate from 6.0 percent to 5.9 percent for self-insurance.859.

8/20/2019

PDF: Preproposal (CR-101)

Pension Discount Rate (Dual Rates) (Chapter 296-14 WAC, Industrial Insurance)

The pension discount rate (PDR) is the interest rate used to account for the time value of money when evaluating the present value of future pension payments. The purpose of this rulemaking is to lower the PDR using different assumptions for annual investment returns for the reserve funds for self-insured and State Fund pension claims, and to align with recent department requested legislation passed in the 2018 session, Chapter 282, Laws of 2018, allowing for the department to use different methods of calculating State Fund and self-insured liabilities when determining the annuity values of a pension based on the rates of mortality, disability, remarriage, and interest. This rulemaking amends WAC 296-14-8810, reducing the pension discount rate to 4.5 percent for the State Fund and to 6.0 percent for self-insurance. The changes were adopted 12/18/2018 and became effective on 4/1/2019.829.

4/1/2019

Rule Changes Effective

12/18/2018

PDF: Adoption (Rule-Making Order CR-103)

PDF: Adopted Rule Language

11/29/2018

Comments Due

11/28/2018

Public Hearing

10/23/2018

PDF: Proposed Rulemaking (CR 102)

PDF: Proposed Rule Language

6/19/2018

PDF: Preproposal (CR-101)

Pension Discount Rate 2018 (Chapter 296-14 WAC, Industrial Insurance)

This rulemaking adopts amendments to WAC 296-14-8810, Pension tables, pension discount rate and mortality tables, and reduces the current pension discount rate to 6.1 percent in 2018. 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. This is the fourth gradual reduction in the pension discount rate. This better aligns with return rates of long term bonds and more accurately states pension liabilities. 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 changes were adopted 2/20/2018 and became effective on 4/1/2018.815.

4/1/2018

Rule Changes Effective

2/20/2018

PDF: Adoption (Rule-Making Order CR-103)

PDF: Adopted Rule Language

1/24/2018

Comments Due

1/23/2018

Public Hearing

12/19/2017

PDF: Proposed Rulemaking (CR 102)

PDF: Proposed Rule Language

10/31/2017

PDF: Preproposal (CR-101)

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