Retirement & Health Benefits for February 14, 2020

Fred Yancey & Mike Moran | The Nexus Group
Feb 13, 2020

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“I was brought up imagining that cream rises to the top, merit wins out, the race is to the swift and riches to men of understanding, but it ain’t necessarily so……” – Garrison Keillor

The first deadlines have come and gone. Action now shifts to the floor of each chamber. A bill needs to be brought out of the Rules Committee, put on the floor calendar, and then brought before the body for debate and vote. This process has to have all bills out of their chambers by February 19th. Then the process starts over with committee hearings and votes on opposite house bills – however at a much more rapid pace.

Currently, there are over 300 bills sitting in the House Rules Committee and around 343 bills before Senate Rules. The challenge now becomes how to get one’s bill to rise above the herd and move to the floor? Admittedly, one hopes some bills don’t make the cut. Many won’t.

Enough said.

Here is a summary of bills that are ‘alive’ of import to districts, remembering that no bill is really ‘dead’ until Sine Die.

Retirement Related Proposals

Proposed bills dealing with providing a benefit increase to those members in TRS1 and PERS 1 plans can easily be seen as NTIB (Necessary to Implement the Budget) so will remain alive until Session ends.

SB 5400 at the request of the Select Committee on Pension Policy grants TRS/PERS Plans 1 beneficiaries an increase to their monthly benefit of three percent multiplied by the beneficiaries’ monthly benefit, not to exceed sixty-two dollars and fifty cents on the first $25,000 of benefit. This bill unanimously passed the Senate Ways and Means committee and was sent to Rules.

Its companion bill, HB 1390 remains in House Rules awaiting a move to the House floor for action. A letter was crafted by Representative Mari Leavitt with the support of Representatives Kloba and Rude urging the adoption of HB 1390. Fifty-nine members of the House signed the letter in support of granting this COLA.

School Employee Benefit Board (SEEB) and Other Health Related Proposals

SSB 6189 | Adds a study by the Joint Legislative Audit and Review Committee of school employees by type and eligibility for health care benefits. Study due July 1, 2021. Directs HCA to analyze the impacts to the state and by school district of changes to the waiver policy. Report due January 1, 2020. Modifies an existing requirement that school districts report to OSPI on the number of substitute teachers to also include the number of hours worked and how many are eligible for health care benefits. Also modifies the single enrollment options.

This bill in Senate Rules.

Two issues come to mind:

  1. The district cost data is not due until 2021 which is too far in the future particularly since it would be the 2022 Session that could address any concerns that came to light, and
  2. It does nothing to address the unfunded costs districts are paying for SEBB enrollees.

HB 2458/ SB 6479 Concerning optional benefits offered by school districts.

These bills allow for districts to continue offering some benefits that are not in competition with those offered by SEBB. If SEBB is not providing the benefit, then a jurisdiction should be able to provide it. It was pointed out that these benefits are employee paid. Examples would include VEBA, cancer insurance, auto insurance, etc.

These bills were moved out of their committees. Both bills are in their respective Rules Committee. There are expected amendments that have yet to surface.

Other Bills

ESHB 1813 mandates that the costs of contracted employee health and retirement benefits must be built into school district contracts for pupil transportation.

The House passed this bill (60–36). It has been referred to the Senate Early Learning and K–12 Education Committee.

Other Bills That May Have Fiscal/Hr Impacts For Districts

HB 2264 | Increasing the cap on accrued vacation leave. Increases the cap on accrued vacation leave for state employees from 240 hours to 280 hours. This bill is in House Rules.

SHB 2614/ SSB 6349 Concerning paid family and medical leave. This bill is agency request legislation clearing up some areas with the family and medical leave act, laying out penalty process steps and clarifying certain issues. SHB 2614 Exempts casual labor from the types of covered by Paid Family and Medical Leave employment. Provides for a private right of action, liquidated damages payable directly to employees, and specifies other enforcement provisions. Makes changes regarding waiting periods, conditional waivers, supplementation of benefits, and other matters.

SHB 2614 passed the House 60–37. The Senate bill remains in Rules.

HB 2739 | Adjusting certain requirements of the shared leave program. Provides that state employees seeking shared leave due to illness, injury, impairment, or physical or mental condition are not required to deplete all of their annual and sick leave before receiving shared leave. Allows intermittent and non-consecutive use of shared leave.

This bill is in House Rules awaiting further action.

SSB 5473 | Studying the impact of making unemployment benefits accessible to persons with family responsibilities and other availability issues and making clarifying changes. This bill is in Senate Rules.

SB 6123 | Allowing state employee leave for organ donation. Requires agencies to allow employees to take paid leave as needed, not exceeding 30 days in a two-year period, for participate in life-giving procedures.

This bill has been moved to the floor calendar for action by the body.

Fred Yancey/ Mike Moran
The Nexus Group