Retirement & Health Benefits for February 4, 2022

Fred Yancey, The Nexus Group LLC
Feb 4, 2022

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Retirement Blog


“The rate of change of momentum of a body over time is directly proportional to the force applied,and occurs in the same direction as the applied force.” ~ Sir Isaac Newton.

February 3rd was the deadline for policy bills to pass out of committees. February 7th is the deadline for fiscal bills. The most critical upcoming deadline is Feb. 15th when bills need to be out of their house of origin. It’s important that bills of import continue moving through the process.

As an annual reminder, no bill is ever ‘dead’ until Sine Die, and any bill deemed ‘necessary to implement the budget’ (NTIB) remains alive until the bitter end.

Below is a brief report on selected bills that are still ‘alive’ noting the caveat above. Because of the speed as legislators race to meet cut-off dates and the deadline of this report, the status of some bills may change. Just an FYI. (For Your Information). A reminder that many bills sitting in Rules’ Committees never make it to the floor for action.

Retirement Related Proposals

SHB 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.

Comment: This bill is on the floor calendar awaiting action.

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.

Comment: See SB 5676 below.

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. SB 5676 was moved directly to the Senate Calendar and passed the chamber 47/0/2. It has been sent to the House Appropriations Committee awaiting scheduling.

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

Comment: Passed the House 96/0 and has been sent to Senate Ways and Means for scheduling.


Other Areas of Potential Fiscal Impact to Districts

HB 1486 | Concerning qualifications for unemployment insurance when an individual voluntarily leaves work.

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. 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.

The Rules Committee was relieved of further consideration and this bill was moved to the floor calendar awaiting action.

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 is in House Rules, but is likely ‘dead’.

SHB 1617: Aligning state and school holidays. The legislature intends to clarify that Juneteenth, like all other state legal holidays, is a school holiday on which school may not be taught.

Comment: This bill passed the House 88/8/2 and was sent to the Senate.

SHB 1644 | Expands allowable uses of school districts’ transportation vehicle funds to include purchase, installation, and repair of vehicle charging stations and other zero-emission fueling stations, and feasibility studies to transition to electric or zero-emission vehicles for pupil transportation.

Comment: This bill is in House Rules.

SHB 1732 | This bill delays the start date for the premium assessments under the Long-Term Services and Supports Trust Program (LTSS Trust Program) from January 1, 2022, to July 1, 2023. Delays the date benefits become available under the LTSS Trust Program from January 1, 2025, to July 1, 2026. Allows individuals born before January 1, 1968, who do not meet the LTSS Trust Program’s vesting requirements, to receive partial benefits based on the number of years of premium payments. Requires employers to refund employees any LTSS Trust premiums collected before July 1, 2023.

Comment: This bill has been signed by the Governor effective January 27th, 2022.

ESHB 1733 | Establishing voluntary exemptions to the long-term services and supports trust program for certain populations. This bill establishes exemptions from the payment of premiums under the Long-Term Services and Supports Trust Program for certain veterans, spouses and registered domestic partners of military service members, nonimmigrant temporary workers, and employees who work in Washington and maintain a primary residence outside of Washington.

Comment: This bill has passed both Houses and was signed by the Governor. Effective June 9, 2022.

SHB 1759 | Requiring school districts and other public education entities to make information from the department of health about substance use trends, overdose symptoms and response, and the secure storage of prescription drugs, over-the-counter medications, and firearms and ammunition, available through their websites and other communication resources.

Comment: This bill has been moved to Rules and is likely ‘dead’.

HB 1763 | Concerning injured workers’ rights during independent medical examinations. This bill 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.

Comment: Passed out of committee on Feb. 2nd.

SHB 1795 | Makes void and unenforceable provisions in agreements between an employer and employee that prohibit the disclosure of conduct that is illegal discrimination, harassment, retaliation, a wage and hour violation, or sexual assault, or that is against a clear mandate of public policy, occurring in the workplace.

Comment: This bill is in House Rules.

SHB 1803 | Directs the Office of the Superintendent of Public Instruction, beginning with the 2022–23 school year, to annually distribute legislatively appropriated funds to each school district in an amount equaling $3,000 for each member of the school district board of directors (Subject to the availability of amounts appropriated for this specific purpose). Increases the maximum daily compensation that school directors may receive from $50 to $100, and the annual compensation limit from $4,800 to $7,800. Allows school directors to receive reimbursement for childcare costs associated with attending meetings. Directs the Department of Commerce to complete an examination of actual and potential school director compensation with a report.

Comment: This bill is in House Appropriations awaiting scheduling.

2SHB 1810 | Requires original manufacturers of digital electronic products sold on or after January 1, 2023, to make certain documentation, parts, and tools available to owners and independent repair providers on fair and reasonable terms.

Comments: School districts testified that this could aid them in doing self-repairs and saving money. The bill pass Appropriations and has been moved to Rules.

HB 1837 | This bill repeals the restriction on the regulation of work-related musculoskeletal disorders and ergonomics.

Comment: This bill has been sent to Rules.

HB 1900 | Improving school districts’ responses to complaints of discrimination, harassment, intimidation, and bullying. This bill directs the Office of the Superintendent of Public Instruction to update, and publicly post, model student handbook language to include information about policies and complaint procedures related to discrimination, including sexual harassment, and information about policies and complaint procedures related to harassment, intimidation, and bullying, as well as the overlap between the policies and complaint procedures. Requires that each school district to include the model student handbook language in any student, parent, employee, and volunteer handbook. Codifies an administrative rule requiring each school district and charter school to designate one person in the school district as the primary contact regarding compliance with state laws prohibiting discrimination in public schools.

Comment: Executive session has been scheduled for Feb. 3rd.

HB 1992 | Concerning vacation leave accrual for public employees. This bill increases the cap on accrued vacation leave for state employees from 240 hours to 280 hours. Removes limits on the maximum amount of sick leave a school district employee may accumulate or use for the purposes of unused-leave compensation. Requires school districts to establish an emergency leave pool for staff who become ill or need to quarantine.

Comment: Executive action was taken Feb. 2nd.

E2SSB 5155 | Concerning prejudgment interest. This bill, as amended, 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.

Comment: This bill passed the Senate 31/18 and has been referred to the House Civil Rights and Judiciary Committee.

SSB 5326 | Concerning health and pension benefits for school bus drivers employed by private nongovernmental entities. This bill Provides that school districts may only enter into pupil transportation service contracts with nongovernmental entities that provide health and retirement benefit contributions to their employees equivalent to those received by school employees.

Comment: This bill was resurrected from last session and has been placed on the Senate floor calendar awaiting action. An amendment has been proposed and is being analyzed but a quick read is that it does not change the substance of the original bill.

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. This bill has been moved to the Senate Rules.

SB 5539 | Concerning state funding for educational service districts. This bill requires that state funding be provided to each educational service district (ESD) for the employer cost of school employees’ benefits for employees of the ESD that are covered by collective bargaining.

Comment: It is scheduled for executive session on Feb. 4th.

SB 5562 | Concerning health care for non-represented employees of educational service districts. This bill requires that non-represented employees of an educational service district receive health care benefits through the Public Employees’ Benefit Board beginning January 1, 2024.

Comment: It has not been moved to WM executive session since the Jan. 27th public hearing. This bill appears to be ‘dead’.

SSB 5564 | Protecting the confidentiality of employees using employee assistance programs.

Comment: This bill is in Rules awaiting further action.

SSB 5649 | Modifying the Washington state paid family and medical leave act. This bill provides that an allowable purpose for family leave is any leave taken by an employee during the seven calendar days following the death of the family member for whom the employee would have qualified to take medical leave for the birth of their child or would have qualified for family bonding leave. 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.

Comment: It was referred to Senate Ways and Means on Jan. 27th and is not currently scheduled for a public hearing. The bill is likely ‘dead’.

SSB 5835 | Concerning workers’ compensation. This bill provides the same percentages of the worker’s wages to be received by an injured worker for a permanent and temporary total disability whether a worker is married or unmarried. Removes the requirement that an injured worker be married to receive an additional $10 per month when the worker is receiving the minimum monthly payments for a permanent or temporary total disability.

Comment: It passed the House Labor Committee on Feb. 2nd. This bill is likely ‘dead’.

SSB 5873 | Concerning unemployment insurance, family leave, and medical leave premiums. This bill decreases the maximum Unemployment Insurance (UI) social cost factor for 2022 and 2023 (Approx. 33% decrease). Sets a maximum UI rate class for the purposes of the percentage of the social cost factor to be paid by small businesses in 2023.

Comment: This bill is in Senate Rules.