Retirement & Health Benefits- February 21, 2025

“Democracy is four wolves and a lamb voting on what to have for lunch.”

Ambrose Bierce

Committees have been moving bills into their respective Rules’ Committees. The Democrats hold strong majorities, and a number of votes show solid D support over solid, but ineffective R opposition. Only bills selected and voted out of these committees proceed to the floor for debate.

Once on the floor, the House Speaker or Senate Majority Leader decides when a bill will be debated and voted on by the full chamber - 98 members in the House and 49 in the Senate. Typically, a bill is only brought to a vote if it has enough support to pass. If approved, the bill moves to the opposite chamber, where the process begins again. The deadline for bills to pass their chamber of origin is March 12.

But the most pressing, immediate concern is for a bill to survive the coming deadlines for policy and fiscal issues. (Of course, any bill necessary to implement the budget (NTIB) stays alive until the end of the session.)

Meanwhile, a brief summary of some selected bills and/or issues is below.

There are some bills that may yet reappear but are reported in this issue.

1. SSB 5085 seeks to establish a Legacy Retirement System. The bill merges the assets, liabilities, and membership of Law Enforcement Officers’ and Firefighters’ Retirement System Plan 1, Public Employees’ Retirement System Plan 1 (PERS Plan 1), and the Teachers’ Retirement System Plan 1 (TRS Plan 1) retirement systems into the new Legacy Retirement System.

   The Senate Ways and Means Committee moved the bill out of committee on a 14/9 vote. It now awaits action by the Rules’ Committee.

2. SB 5113/HB 1292 creates an annual increase in the retirement benefits of retirees in the Public Employees’ Retirement System and the Teachers’ Retirement System Plan 1, of up to 3%. A hearing before the Senate Ways and Means Committee was held Jan. 23rd. Cost is projected at $92 Million for 2025-27 rising to $138 Million in 27-29 and continuing to increase. (NTIB)

3. SB 5114/HB 1312 concerns covering the premium costs of insurance during the month of one’s death. It provides a full month of public pension benefits paid in the month that a retiree dies. Senate Ways and Means held a hearing on the bill Jan. 23rd and House Appropriations 1/27.

   There is much sympathy for the need to do this, however, the cost may make either prohibitive. (NTIB)

4. SB 5357/HB 1467 have been introduced. These bills resets rates for past benefit enhancements and amortizes the cost over a 15-year period (instead of the current 10-year period).

   The Senate bill was heard on 1/23; the House Appropriations heard the bill 2/19. (NTIB)

5. HB 5478 concerns benefits authorized to be offered by the public employees’ benefits board. This bill would allow HCA to the following employee-paid, voluntary benefit plans:

   • Emergency transportation
   • Identity protection
   • Legal aid
   • Long-term care insurance
   • Noncommercial personal automobile insurance
   • Personal homeowner’s or renter’s insurance
   • Pet insurance
   • Specified disease or illness-triggered fixed payment insurance, hospital confinement fixed payment insurance
   • Travel insurance.
   
   

   It has been moved to Senate Rules.

6. SB 5738 permits individuals retired from the public employees’ retirement system, the teachers’ retirement system, and the school employees’ retirement system additional opportunities to work for up to 1,040 hours per year while in receipt of pension benefits.

   This bill is similar to HB 1936 below except it sunsets in 2029. It has a public hearing 2/20 before Senate Ways and Means.

7. HB 1790 increases defined benefit accrual for specified years of service in the state retirement systems. For years of service earned after the effective date of this section, a member of the retirement system shall receive an additional one-half of one percent of such member’s average final compensation for each year of service beyond 30 years.

   This bill was a request from WSSRA to attract and retain experienced staff while also demonstrating the work of WSSRA to potential members. It is awaiting a hearing before House Appropriations.

8. HB 1936 extends the expiration of certain school employee postretirement employment restrictions to 2027.

   The bill reads: Between March 23, 2022, and July 1, ((2025)) 2027, a retiree that retired before January 1, 2022, and who enters service in a second-class school district, as defined in RCW 28A.300.065, as either a district superintendent or an in-school administrator shall continue to receive pension payments while engaged in such service, until the retiree has rendered service for more than 1,040 hours in a calendar year. It had a public hearing on 2/19 before the House Appropriations.

   According to DRS about 350 retirees are currently working in 1040 eligible positions. Testimony was “Pro” with a request to amend the bill to meet the 2029 Senate date.

A selected intro to some bills that could have fiscal impact /costs to districts:

1. SHB 1213/SB 5539: Expanding protections for workers in the state paid family and medical leave program.

   This substitute House bill: Extends employment protection rights in the Paid Family and Medical Leave (PFML) Program to any employee who began employment with their current employer at least 90 calendar days before taking leave, regardless of the size of the employer.

   • Allows employers to prevent stacking certain employment protection rights by extending employment protection in the PFML Program to periods of unpaid leave protected by the federal Family and Medical Leave Act, so long as the employer provides certain notices to the employee, and providing that employment protection expires after certain periods.
   • Expands health care coverage protection during any period in which an employee receives PFML Program benefits and is also entitled to employment protection.
   • Expands access to grants for small employers to offset the costs of employees’ use of leave.
   
   

   SSB 1213 will have a public hearing 2/22 before House Appropriations. The Senate bill had a public hearing on 2/18 before Senate Labor.

   Costs to state/employers from fiscal note are indeterminate.

2. HB 1334: Modifying the annual regular property tax revenue growth limit. This bill changes the 101 percent revenue growth limit for state and local property taxes to 100 percent plus population change and inflation, with a capped limit of 103 percent.

   Should counties/cities be allowed to increase their taxes from .02% to .03%, this could affect M & O levy success/asks. This bill had a public hearing on 2/11 before House Finance. (NTIB)

3. SSB 5041: Concerning unemployment insurance benefits for striking or lockout workers.

   This bill: Allows individuals unemployed due to a labor strike to receive unemployment insurance (UI) benefits following a specified disqualification period and the waiting week, provided that the labor strike is not found to be prohibited by federal or state law in a final judgment.

   Removes the provision disqualifying an individual for UI benefits based on an employer-initiated lockout resulting from a strike against another employer in a multi-employer bargaining unit.

   It has been referred to Ways and Means 2/18.

4. SSB 5291: Implementing the recommendations of the long-term services and supports trust commission.

   The substitute bill: Prohibits out-of-state participants from withdrawing from the Long-Term Services and Supports Trust Program (Program).

   • Make the exemption from the Program automatic for active-duty military service members with off-duty civilian work and employees holding a nonimmigrant visa for temporary work.
   • Allows an exempt employee who previously attested to having long-term care insurance to rescind the exemption prior to July 1, 2028.
   • Allows for a limited pilot program in 2026 to assess the Program’s processes and system capacities.
   • Creates standards and requirements for supplemental long-term care insurance policies designed for coverage after Program benefits are exhausted.
   
   

   SB 5291 has been passed to Senate Rules.

5. SSB 5292: Concerning paid family and medical leave rates.

   This bill: Requires the Employment Security Department Commissioner to set the paid family and medical leave program premium rate based on the Office of Actuarial Services annual report.

   • Mandates the Office of Actuarial Services annual report to provide for a rate to close the rate collection year with a three-month reserve beginning in 2030, in addition to the current requirement to maintain a four-year solvency.
   • Eliminates the statutory formula used to calculate the rate.
   
   

   The bill has been referred to Senate Ways and Means 2/19.

6. SB 5422/HB 1622: Allowing bargaining over matters related to the use of artificial intelligence. This bill requires most state and local government public employers to bargain with employees’ unions over the use of artificial technology that affects the wages, hours, or terms and conditions of employment.

   The Senate bill is scheduled for public hearing 2/17 and Executive Session 2/21 before Senate Labor. The House Labor moved the bill out of committee 2/18.

   These are interesting bills. Should a district use AI in any fashion that replaces an employee? Unions often file grievances when they feel their work is taken away from a member and absorbed by someone not in union. It is akin to HB 1739 regulating the use of self-service checkout stations. This bill seeks to preserve employee positions by restricting/modifying use of self-checkout stations.

    

Fred Yancey