Retirement & Health Benefits for February 10, 2023

Fred Yancey, The Nexus Group LLC
Feb 10, 2023

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Retirement Blog

“I learned a long time ago the wisest thing I can do is to be on my own side, be an advocate for myself and others like me.” Maya Angelou

Educate patiently, advocate passionately, and inspire consistently.

The importance of advocacy cannot be overstated. Legislators need to continually hear from those impacted by proposed legislation. A lobbyist can keep issues in front of legislators, but those most closely impacted, particularly constituents, carry much more weight. Enough said.

Listed below are bills that appear to be moving. Some previously reported bills have been dropped but may re-appear in future reports.

Retirement Related Proposals

Previous reports have covered the bills related to addressing the lack of a cost-of-living increase (COLA) for members in TRS/PERS Plans 1. They are HB 1057/SB 5350, HB 1201/SB 5294, and HB 1459. These all had public hearings, but have yet to be scheduled for Executive Session in their respective committees.

A little background: HB 1201 and HB 1459 have been suggested as a package deal. Last session’s supplemental budget ‘parked’ $800 million dollars earmarked to pay down the unfunded liability (UAAL) in TRS Plan 1. OFM has proposed using these funds elsewhere. (It does not seem coincidental that a number of agency requests are asking for $800M. Hmmm!)

The current rate/surcharge employers are paying to lower the UAAL will be decreased over time because of an assumed greater investment return than estimated by the State Actuary. WSSRA (School Retirees’ Assn.) is opposed to this move because of the uncertain investment environment we are in and in which the state is projected to remain in the near future. However, ‘in exchange’ for this proposal, HB 1459 would establish a capped permanent COLA for Plan 1 members. So, it’s a mixed bag. These older retirees deserve a COLA just like the other 12 retirement plans in the state, but exposing their plans to potentially increasing their unfunded liability is a problem. There is division within the Democrat caucus over this same issue. Attempts are being made to decrease the surcharge over time rather than the proposed elimination of the surcharge.

At this point, all the bills are in limbo with no planned further actions to date.

HB 1007: Concerning interruptive military service credit for members of the state retirement systems.

Comment: Retirement credit can be awarded in any armed conflicts if the participant was awarded the respective campaign or expeditionary badge or medal…. the ‘expeditionary badge' qualifier was added.

HB 1007 passed the House 97/0 and has moved to the Senate Ways and Means.

HB 1008Concerning participating in insurance plans and contracts by separated Plan 2 members of certain retirement systems.

Comment: This bill would simply make retiree insurance provisions uniform and equitable for Plan 2 and 3 members.

HB 1008 passed the House 93/0 and has been moved to Senate Ways and Means.

SHB 1056/ SB 5349: Repealing some post-retirement employment restrictions.

Comment:Beginning January 1, 2024, any current or future retiree under the provisions of early retirement may utilize the 32 postretirement employment provisions of RCW 41.32.802(2) for up to 867 hours per year.

SHB 1056 passed the House 93/0 and has moved to Senate Ways and Means. SB 5349 was passed out of Executive Session.

SSB 5121Extending the expiration date of the joint select committee on health care oversight.

Comment: The expiration date of this committee is to be extended. Its goal must be to ensure that these multiple health and insurance regulatory agencies are not duplicating their efforts and are working toward a goal of increased quality of services leading to reduced costs to the health care consumer.

Passed Senate 48/0 and has moved to the House Health Care and Wellness Committee.


Other Areas of Potential Fiscal Impact (and often unfunded) to Districts

SHB 1068Concerning injured workers' rights during compelled medical examinations.

Comment: This allows an injured worker to make an audio and video recording of a compelled medical examination and to have one person of the worker's choosing present during the examination. 

This bill has been moved to House Rules.

SHB 1105:  Requiring public agencies to provide notice for public comment that includes the last date by which such public comment must be submitted.

Comment: Mandates a public agency that is required to solicit public comment for a statutorily specified period of time, and to provide notice that it is soliciting public comment, to include in the notice the last day by which written public comment may be submitted. Makes an agency that violates the requirement to include in a notice for public comment the last day by which written comment may be submitted subject to a civil penalty of $500 for the first violation and $1000 for any subsequent violation.

This has been moved to Rules Committee.

SHB 1106Concerning qualifications for unemployment insurance when an individual voluntarily leaves work.

Comment: Expands access to unemployment insurance benefits by adding circumstances where a person may voluntarily quit for good cause.

This bill has been referred to House Rules Committee.

HB 1136: Requiring employers to reimburse employees for necessary expenditures and losses.

Comment: An employer shall reimburse an employee for all necessary expenditures and losses incurred by the employee in direct consequence of the discharge of the employee's duties. Reimbursement must be paid within 30 days of the employer's actual or constructive notice of the expenditure or loss.

This bill has been moved to House Rules.

HB 1187: Concerning privileged communication between employees and the unions that represent them.

Comment: To effectuate the public policy favoring effective collective bargaining, it is necessary to protect confidential union–employee communications in the course of union representation against disclosure.

Scheduled for Executive Session on 2/10 before House Labor Committee.

HB 1200: Requiring public employers to provide employee information to exclusive bargaining representatives.

Comment: Requires certain public employers to provide exclusive bargaining representatives' information, such as contact information, date of hire, salary, and job site location of employees in bargaining units if the employer has that information in its records. Allows an exclusive bargaining representative to bring a court action if a public employer fails to comply with the requirement to provide information.

HB 1200 has been moved to House Rules.

 EHB 1210 Concerning the recording of school board meetings.

Comment: Specifies that a public records request for recordings of school district board of directors meetings must include the date of the meetings requested or a range of dates. Provides that searches for public records need not include recordings of school district board meetings unless a date is given. Requires all school district board meetings to be audio recorded, subject to exceptions for executive sessions and emergencies, with recordings kept for at least one year. Encourages school districts to make the content of school board of directors meetings available in formats accessible to individuals who need communication assistance and in languages other than English.

This bill passed House 96/1 and has been moved to the Senate State Government Committee.

HB 1248: Concerning pupil transportation.

Comment: One important part of the proposal is that it requires that school district contracts for pupil transportation services must include sufficient funds to provide employees of the contracting employer with health benefits and pension contributions equivalent to those of school district classified employees.

This bill had a public hearing on 1/23 and is scheduled for Executive Session on 2/13.

HB 1785: Establishing COVID-19 as an occupational disease.

Comment: The legislature finds that it is an important and essential protection for workers who contracted COVID-19 during the COVID-19 pandemic, to be fully protected and covered under our workers' compensation system.

A public hearing is scheduled for 2/17 before House Labor Committee.

SB 5059:  Concerning prejudgment interest.

Comment: This was proposed last session. Briefly stated, judgments founded on the tortious conduct of a "public agency" shall bear interest from the date (of entry) the cause of action accrued. So if a district is found liable for neglecting to act in a child’s best interest, years after the fact, it will pay a penalty and interest from the day the neglect/damage first occurred, from the date the action is commenced, or the date the minor attains the age of eighteen years, whichever is earlier.

A public hearing was held 2/7 before Senate Ways and Means. No further action has yet been scheduled.

SB 5061/HB 1320: Concerning access to personnel records.

Comment: Requires an employer to furnish an employee with a complete, unredacted copy of their personnel file at no cost within 14 calendar days of a request. • Mandates an employer to furnish a former employee with a signed written statement with the effective date of discharge, whether the employer had a reason for the discharge, and if so, the reasons, within 14 calendar days of the written request. • Allows an employee or former employee to bring a private action for violations of certain rights regarding personnel files, discharge information, and redaction logs, and entitles the employee to equitable relief, graduated statutory damages up to $1,000, and reasonable attorneys' fees and costs of each violation.

SB 5061eferred to Ways and Means on 2/8. HB 1320 scheduled for Executive Session 2/15 before House Labor.

SB 5084/HB 1558: Creating a separate fund for the purposes of self-insured pensions and assessments.

Comment: Creates a self-insurance reserve fund for payments from self-insured employers related to workers' compensation pensions and from the overpayments reimbursement fund.

SB 5084 passed Executive Session 2/7 before the Senate Ways and Means Committee. HB 1558 is scheduled for Executive Session 2/14 before House Labor.  

SB 5123: Concerning the employment of individuals who lawfully consume cannabis.

Comment: Prohibits employers, with some exceptions, from discriminating against a person in hiring if the discrimination is based on the person's use of cannabis outside of work or on certain employer-required drug screening tests.

Passed to Rules Committee.

SB 5174: Providing adequate and predictable student transportation.

Comment: Of concern is the provision that provides that pupil transportation services contracts entered into, renewed, or extended after September 1, 2023, must require the contractor to provide employee health and retirement benefits comparable to those received by school employees.

Scheduled for public hearing 2/2 before Senate Ways and Means Committee.

SB 5240/ HB 1656: Concerning unemployment insurance benefits appeal procedures.

Comment: A dispute of an individual's initial determination, determination of allowance or denial of allowance of benefits, or redetermination of allowance or denial of benefits, all matters covered by such initial determination, determination, or redetermination shall be deemed to be in issue subject to appeal.

SB 5240 has been sent to Senate Rules Committee. HB 1656 is scheduled for Executive Session 2/14 before House Labor.

SB 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.

Passed Executive Session 2/7 before Senate Ways and Means.

SB 5286: Modifying the premium provisions of the Paid Family and Medical Leave program.

Comment: Amends the premium rate calculation in the Paid Family and Medical Leave program (PFML) to be based on a specified formula rather than the Family and Medical Leave Insurance Account (Account) balance ratio on September 30th of the previous year. Sets a maximum rate of 1.2 percent and removes the Employment Security Department's authority to assess a solvency surcharge if the Account balance ratio falls below a certain threshold.

Passed Senate 48/0 and moved to House with public hearing 2/3.

Fred Yancey
The Nexus Group LLC