Retirement & Health Benefits for January 21, 2022

Fred Yancey | The Nexus Group LLC
Jan 21, 2022


Retirement Blog

“I don’t get political” ~ Betty White

“Everything is politics.” ~ Thomas Mann

We all can’t be Ms. White because the Washington State Legislature is in session and working hard at proposing and moving legislature of import and educators need to be involved.

Below is a brief report on selected bills that appear to have some support for advancing. A few newer ones are also added.

Other proposed bills as reported in last week’s TWIO that have not yet been scheduled for hearings or committee action are not part of this summary.

Retirement Related Proposals

HB 1699 | Permitting individuals retired from the public employees’ retirement system, the teachers’ retirement system, and the school employees’ retirement system additional opportunities to work for a school district for up to 1,040 hours per school year while in receipt of pension benefits until July 1, 2025.

This bill had a public hearing on 1/20 @ 3:30 PM before the House Appropriations Committee. School personnel or education lobbyists testified to the need based on current challenges.

Comment: It appears that the issue of adding building administrators does not have broad support by the committee. A couple of concerns that come to mind as this bill advances are: 1) It is not the full solution to the issue. Many testifiers implied with passage their problems would be solved. 2) There was no mention of the need to add an emergency clause so that it could apply this current school year. Legislators need to continue to hear from the field that this bill is needed and modified if supported. The House Appropriations Committee needs to move it to Executive Session for action. Swift passage of this is essential.

HB 1721/SB 5676 | Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan 1.

Summary: This bill would provide a 3% increase not to exceed $110/month for TRS1/PERS1 Plan retirees. The Governor included this one-time increase in his released supplemental budget. Both bills had public hearings before the House Appropriations and Senate Ways and Means Committees on Jan. 17th. Both bills are scheduled for Executive Session on 1/20. There were no amendments offered to either of the two bills. The committees voted both bills out of their respective committees and forwarded them to Rules’ Committees.

SB 5676/HB 1721 | Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan 1.

Summary: See HB 1721 above.

HB 1752 | Adding a Roth option to deferred compensation plans.

Comment: This bill had a public hearing before the House Appropriations Committee on Jan. 17th and was voted out of committee on 1/20 and sent to Rules.

Other areas of potential fiscal impact (often, unfunded) to districts:

HB 1485 | Designates March 22 to be a state legal holiday, recognized as Women’s Suffrage Day.

Comment: This will be another holiday to build into school calendars. A public hearing was on January 10th and no action was taken following Executive Session on 1/13.

HB 1486 | Concerning qualifications for unemployment insurance when an individual voluntarily leaves work. Sponsors: Berry, Bronoske, Wicks, Fitzgibbon, Lovick, Shewmake, Lekanoff, Senn, Peterson, Sells, Ramel, Callan, Valdez, Ormsby, Chopp, Harris-Talley, Berg, Pollet

Comment: This bill expands eligibility to receive unemployment insurance benefits to those who voluntarily quit their jobs. Under current law, there are a limited number of circumstances when an employee can receive UI benefits after voluntarily leaving their job. This bill was resurrected this week and moved immediately to the House Floor for a potential floor vote. Under the bill, a person would be eligible for UI benefits if they leave a job due to a family member’s death or need to care for a child or adult. 

HB 1594 | Repealing the long-term services and supports trust program.

Comment: This bill is sponsored by the Republicans and is likely dead. The R’s continue to push the narrative that the LTS program should be repealed and made voluntary. They were unsuccessful at moving this bill directly to the floor. They, however used floor debate on the D bills (see below) to continue to express their objections.

HB 1613 | Concerning shared reporting responsibilities for both the paid family and medical leave and the long-term services and supports trust programs to clarify that information collected from employer reports shall remain private.

Comment: This bill was heard on Jan. 11th and scheduled for Executive Session on 1/21.

SHB 1617 | Aligning state and school holidays.

Comment: The legislature intends to clarify that Juneteenth, like all other state legal holidays, is a school holiday on which school may not be taught. This bill passed committee and before Rules awaiting a move to the floor calendar.

SHB 1732 | Delaying the implementation of the long-term services (LTS) and supports trust program by 18 months.

Summary: As proposed, the LTS program will begin 7/1/2023. Individuals can qualify for partial coverage after one year at 1/10th of the benefit earned per premium year. This bill passed the House 91/6 with Republicans stating that the delay will allow time to fix the flaws of the bill. It is scheduled in the Senate Ways and Means Committee for a public hearing on 1/24 and Executive Session on 1/25. Clearly, LTS Democrat bills are on the fast track to the Governor’s desk.

ESHB 1733 | Establishing voluntary exemptions to the long-term services and supports trust program for certain populations.

Summary: AN ACT Relating to establishing voluntary exemptions to the long term services and supports trust program for certain populations, including for veterans with a service-connected disability of 70 percent or higher, the spouses or domestic partners of active duty service members, persons residing outside of Washington while working in Washington, and persons working in the United States under a temporary, nonimmigrant work visa.

This bill passed the House 67/29 and is scheduled for public hearing on 1/24 and Executive Session on 1/25 before the Senate Ways and Means Committee. See comments above on 1732.

HB 1754 | Concerning prejudgment interest. Sponsors: Hackney, Kirby, Berry, Valdez, Ramel, Simmons, Bergquist, Ormsby Comment: This bill modifies the accrual date for interest on tort judgments for tortious conduct of public agencies, individuals, and other entities from the date of entry of judgment to the date the cause of action accrues. This bill has the potential to increase the financial liability to school districts. Should a case be made that a child is due damages from the fault of the school, those damages are figured on the date of the injury to present. It had a public hearing but no action was taken following its Executive Session on 1/14. See E2SSB 5155 below.

HB 1757 | Concerning educational service district participation in health benefit plans offered by the public employees’ benefits board.

Summary: This will allow non-representative ESD employees to participate in benefit plans developed by the public employees’ benefits board. A public hearing was held on 1/17. Executive Session has not yet been scheduled.

HB 1763 | Concerning injured workers’ rights during independent medical examinations. Comment: Allows an injured worker to make an audio and video recording of an independent medical examination (IME), and to have one person of the worker’s choosing present during the examination. This bill had a public hearing on 1/14 and there has been no further action.

HB 1803 | Updating school district director compensation through the revision and preservation of a uniform compensation structure and an examination of future needs.

Comment: Districts may compensate school directors up to $128 per board meetings or other services for the district. Reimbursable expenses will also include childcare. A public hearing was held 1/18 before the House Education Committee. Executive Session has been scheduled for 1/25.

HB 2031 | Concerning unemployment insurance, family leave, and medical leave premiums. Sponsors: Berg, Sells, Berry, Ryu, Wicks, Stonier, Paul, Simmons, Walen, Dolan, Callan, Chambers, Harris-Talley

Comment: This bill would provide additional relief from increases in unemployment insurance taxes due to the COVID 19 pandemic by adjusting “social taxes” over the next year. These bills also use general fund money to relieve employees from the large increases in Paid Family and Medical Leave premiums anticipated because of the pandemic. It is scheduled for public hearing, Jan. 28th, in the House Committee on Labor & Workplace Standards at 8:00 AM

E2SSB 5155 | Concerning prejudgment interest. Sponsors: Kuderer, Wellman, Das, Pedersen Comment: Starts interest running on a judgment entered following trial of the matter and arbitration awards for tortious conduct, other than medical malpractice claims, from the date on which the cause of action accrues for individuals and entities, but not public agencies. • Starts interest running on a judgment for a medical malpractice claim from the date of entry of judgment. This bill passed the House 31/18.

SSB 5628 | Concerning cyber harassment, addressing concerns in the case of Rynearson v. Ferguson, and adding a crime of cyberstalking.

Comment: This whole area of internet ‘bullying’ either at or outside of school is a landmine of potential liability for districts. (IMHO). A public hearing was held on 1/13 and Executive Session was scheduled for Jan. 20th.

SB 5649 | Modifying the Washington state paid family and medical leave act.

Comment: Provides up to 14 calendar days of paid family leave, within existing leave limits, in certain situations following the death of the employee’s family member or child. • Specifies that leave taken by certain employees in the first six weeks after giving birth must be medical leave unless the employee chooses to use family leave. • Expires the collective bargaining exception contained in the Paid Family and Medical Leave program. • Authorizes the Employment Security Department (ESD) to issue a predetermination of eligibility and benefits prior to the employee’s start of leave. • Requires ESD to publish on its website a list of employers with approved voluntary plans. A public hearing was held and the bill is scheduled for Executive Session on 1/20. This bill was heard on 1/13 and scheduled for Executive Session on 1/20 but no action was taken. It has been rescheduled for Executive Session on 1/24. Clearly, there are some issues to be resolved.

SB 5835 | Concerning workers’ compensation.

Comment: As proposed, it deletes references/qualifications related to marriage by removing those references related to payments. A public hearing before the Senate Committee on Labor, Commerce & Tribal Affairs was held on Jan.17th but no Executive Session has yet to be scheduled.

SB 5873 | Concerning unemployment insurance, family leave, and medical leave premiums. Sponsors: Keiser, Billig, Conway, Das, Dhingra, King, Kuderer, Liias, Lovick, Mullet, Nguyen, Nobles, Randall, Robinson, Rolfes, Stanford, Wilson, C. Comment: See HB 2031 above. Scheduled for public hearing, Jan. 24th, in the Senate Committee on Ways & Means at 4:00 PM.


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