Rules Under Development

Industrial insurance

Chapter 296-14, WAC

All updates for this rule:

Pension Discount Rate 2017 (Chapter 296-14 WAC Industrial Insurance)

This rulemaking amends WAC 296-14-8810 to reduce the current pension discount rate to 6.2 percent in 2017. 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 6.3 percent. This is the third gradual reduction in the pension discount rate. This reduction 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 2/14/2017 and became effective on 4/1/2017.782.

4/1/2017

Rule Changes Effective

2/14/2017

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

PDF: Adopted Rule Language

1/25/2017

Comments Due

1/24/2017

Public Hearing

12/20/2016

PDF: Proposed Rulemaking (CR 102)

PDF: Proposed Rule Language

11/1/2016

PDF: Preproposal (CR-101)

Update Pension Discount Rate (Chapter 296-14 WAC)

This rule filing will amend WAC 296-14-8810 to reduce the current pension discount rate from 6.4 percent to 6.3 percent in 2016. 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 department has worked with the Workers’ Compensation Advisory Committee (WCAC) to develop a plan reducing the pension discount rate annually, through 2022, until it reaches 4.5 percent. The changes were adopted 2/16/2016 and became effective on 4/1/2016.741.

4/1/2016

Rule Changes Effective

2/16/2016

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

PDF: Adopted Rule Language

1/27/2016

Comments Due

1/26/2016

Public Hearing

12/22/2015

PDF: Proposed Rulemaking (CR 102)

PDF: Proposed Rule Language

11/3/2015

PDF: Preproposal (CR-101)

Reduce Pension Discount Rate and Update Mortality Tables (Chapter 296-14 WAC)

The current mortality tables used to determine the funding needs for injured workers who are totally permanently disabled and for survivors of fatally injured workers are over 30 years old. The department conducted a study of pensioned injured workers and their spouses in our system from 2001 to 2012 together with 2000 US Census data. The study revealed that the pension tables no longer reflect the current experience of pension beneficiaries funded by the pension reserve fund. These tables need to be updated for life expectancy and gender. 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 current Pension Discount Rate of 6.5 percent is too high given market rates of long-term Treasury bonds, which are considered by the actuaries for establishing discount rates. The department has worked with the Workers’ Compensation Advisory Committee (WCAC) to develop a plan that would reduce the pension discount rate from the current 6.5 percent to 6.4 percent and continue to adjust annually, through 2022, until it reaches 4.5 percent.718.

1/6/2015

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

PDF: Adopted Rule Language

12/23/2014

Public Hearing

11/18/2014

PDF: Proposed Rulemaking (CR 102)

PDF: Proposed Rule Language

9/16/2014

PDF: Preproposal (CR-101)

Diagnostic and Statistical Manual of Mental Disorders (DSM-5) (Chapters 296-14, 296-20, 296-21 WAC)

In 2013, The American Psychiatric Association released the fifth edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM-5). L&I is adopting rules in order to aid in the implementation and consistent use of new DSM versions within Washington’s workers’ compensation program. The changes were adopted 9/22/2015 and became effective on 10/23/2015.715.

10/23/2015

Rule Changes Effective

9/22/2015

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

PDF: Adopted Rule Language

7/13/2015

Public Hearing

7/13/2015

Comments Due

6/2/2015

PDF: Proposed Rulemaking (CR 102)

PDF: Proposed Rule Language

8/5/2014

PDF: Preproposal (CR-101)

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