“Let your work speak for itself: If poor, it will remain silent. If average, it will whisper.
If good, it will talk. If great, it will shout.”
Matshona Dhliwayo
Session has concluded, and the Governor has acted. Below is a brief summary of pension, health care, and other benefit legislation that will impact school districts, present and future retirees. The following is a summary of approved
legislative actions that affect present employees, districts, future retirees and present retirees. The work continues…
Retirement Related Proposals
SHB 1007: Concerning interruptive military service credit for members of the state retirement systems.
Comment: The definition of “period of war” is expanded for veterans’ benefits in state pension systems, legal assistance, scoring criteria on civil service exams, and other programs to include any armed conflicts where an expeditionary medal was awarded.
Members that retired prior to the effective date of this act will have their retirement benefits adjusted retroactively.
The Governor signed the bill. Effective 7/23/2023.
HB 1008: Concerning participating in insurance plans and contracts by separated Plan 2 members of certain retirement systems.
Comment: It allows certain individuals who separate from a position covered by the Public Employees’, School Employees’, and Teachers’ Retirement System Plans 2, without retiring, the opportunity to participate in retiree benefits of the Public Employees’
Benefits Board.
This bill has been signed by the Governor and is effective 1/1/2024.
SHB 1056: Repealing some postretirement employment restrictions.
Comment:Changes the postretirement employment restrictions on benefits eligibility for Public Employees’ Retirement System, Teachers Retirement System, and School Employees Retirement System
Plans 2 and 3 members that retired under the 2008 Early Retirement Factors (ERFs). • Permits 2008 ERF members to work in retirement system–covered employment for up to 867 hours per year without suspension of retirement benefits. •
Adjusts benefits for individuals that chose the 3 percent per year early retirement reduction to the level of reduction in the 2008 ERFs for future benefit payments.
The Senate adopted a striker with an amendment that reads: Removes the recalculation of retirement benefits for retirees that were eligible to take a 2008 early retirement factor but took a higher reduction in benefits so that they could return to work.”
The Governor signed the bill, effective 1/1/2024.
ESHB 1222: Requiring coverage for hearing instruments.
Comment: A health carrier offering a large group health plan and health plans offered to public employees and their covered dependents must include coverage for hearing instruments, except for OTC hearing instruments. The coverage must include the hearing
instrument, the initial assessment, fitting, adjustment, auditory training, and ear molds, as necessary, to maintain optimal fit. A health carrier and health plan offered to public employees must provide coverage for hearing instruments at no less
than $3,000 per ear with hearing loss every 36 months. Effective 1/1/2024.
The Governor signed the bill, effective 7/23/2023.
SHB 1804: Concerning eligibility for participation in the public employees’ benefits board for retired or disabled employees of counties, municipalities, and other political subdivisions.
Comment: The retirees of local government employers, counties, municipalities, or other political subdivisions that ceased participating in the Public Employees Benefits Board (PEBB) health benefits program for active employees are permitted to continue
to purchase retiree coverage from the PEBB program. Medicare-eligible retirees from local government employers who have ceased participation must purchase the coverage without the explicit subsidy provided in the state biennial operating budget.
The Governor signed the bill, effective 5/4/2023.
SSB 5275: Expanding access to benefits provided by the school employees’ benefits board.
Comment: Allows tribal compact schools, employee organizations representing school employees, and school board directors the option of providing health care through the School Employees Benefits Board through SEBB beginning January 1, 2024. Employers
opting into coverage under SEBB may determine the terms of employee and dependent eligibility and must pay premiums set by HCA.
Passed House 97/0. The Governor signed the bill on 3/30/23, effective 1/1/2024. The HCA will be reaching out to eligible parties prior to that date with information. HCA has a projected start date for rule development beginning 9/1/2023.
ESSB 5294: Concerning actuarial funding of state retirement systems.
Comment: The existing minimum UAAL (Unfunded Liability) rates end after fiscal year 2023. The following UAAL contribution rates are established for TRS/PERS 1:
TRS 1: FY 2024 0.5% FY 2025 0.5% FY 2026 0.0% FY 2027 0.0%
PERS 1: FY 2024 2.0% FY 2025 2.0% FY 2026 1.5% FY 2027 0.5%
The Governor signed the bill, effective 6/20/2023.
SB 5350: Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan 1.
Comment: A one-time, 3 percent benefit increase is provided to PERS plan 1 and TRS plan 1 retirees up to a maximum of $110 per month. The benefit increase goes into effect on July 1, 2023. To be eligible for the increase the member must be retired on
or before July 1, 2022. This increase only applies to members that are not receiving a minimum benefit. The Select Committee on Pension Policy is directed to study and recommend an ongoing COLA for plan 1 retirees. The recommendation must consider
employer contribution rate stability and coordinate the effective date with the reduction or elimination of the unfunded actuarial accrued liability.
One additional positive assist to the budget is adjustments to pension contribution rates. SB 5294, as adopted, reduces contribution rates for the Unfunded Liability in the Public Employees’ Retirement System (PERS) Plan 1 and the Teachers’
Retirement System (TRS) Plan 1. This is helpful for local governments, including school districts—AND it provides an $804 million savings for the state in 2023–25 (and projected to grow to $1.9 billion over the next five years). SB 5294
also reduces (from $800 million to $250 million) a scheduled early payment into the Teacher Retirement System Plan 1. This saves another $550 million.
The Governor signed the bill, effective 7/1/2023.
SSB 5490: Concerning health care coverage for retired or disabled employees denied coverage
