“The finish line is just the beginning of a whole new race.”
Anonymous
As Sine Die approaches, the legislature will go ‘dark’. Negotiations between both chambers, caucus members, the Governor’s office, and legislature leadership will be taking place outside of the public eye. Budgets need to be adopted, and altered bills need to be reconciled/concurred by the opposite body. The balls/bills will continue bouncing back and forth until finally caught by the Governor. Bill signings are occurring.
The status of selected bills is given below. Note that any can change with little notice. Some, such as SB 5294, that were assumed ‘dead’, may come back. There also will be bills yet to come, or that will resurrect, whose passage will be needed because they are linked to the budget. And some bills are truly dead that did not make the most recent cut-off (4/12/23).
A reminder that unless noted otherwise, bills that have been signed by the Governor are effective 90 days after adjournment. (7/23/23)
Retirement Related Proposals
HB 1008: Concerning participating in insurance plans and contracts by separated Plan 2 members of certain retirement systems.
Comment: It allows certain individuals who separate from a position covered by the Public Employees’, School Employees’, and Teachers’ Retirement System Plans 2, without retiring, the opportunity to participate in retiree benefits of the Public Employees’ Benefits Board.
This bill has been sent to the Governor for action.
SHB 1056: Repealing some postretirement employment restrictions.
Comment: Changes the postretirement employment restrictions on benefits eligibility for Public Employees’ Retirement System, Teachers Retirement System, and School Employees Retirement System Plans 2 and 3 members that retired under the 2008 Early Retirement Factors (ERFs). • Permits 2008 ERF members to work in retirement system–covered employment for up to 867 hours per year without suspension of retirement benefits. • Adjusts benefits for individuals that chose the 3 percent per year early retirement reduction to the level of reduction in the 2008 ERFs for future benefit payments. Effective 1/1/2024.
The Senate adopted a striker with an amendment that reads: Removes the recalculation of retirement benefits for retirees that were eligible to take a 2008 early retirement factor but took a higher reduction in benefits so that they could return to work.”
This bill passed the Senate and will be sent to the House for concurrence.
*Note Regarding Pension Funding**: A number of bills dealing with pension funding have been offered this session. The primary difference between them is how to fund or not fund any cost-of-living increase. See below for status.
ESHB 1057:Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan.
Comment: This would grant a one-time, capped 3% COLA for TRS1/PERS1 plan members. It also directs the SCPP to recommend a path to regain permanent COLA for these retirees. It was amended by the Senate W/M Committee to remove provisions delaying the imposition of the contribution rate increases attributable until July 1, 2027, and directing that the supplemental contribution rate not be charged for the benefits created in this bill until July 1, 2027, and directs that the supplemental contribution rate not be charged for the benefits created in this bill. SB 5350 was a companion prior to the adoption of the House amendment. It was presumed ‘dead’ since no action had been taken since 3/28. However, the decision obviously was made to put ESHB 1057 aside in favor of SB 5350.
ESHB 1057 is ‘dead’. See SB 5350 below.
ESSB 5294: Concerning actuarial funding of state retirement systems.
Comment: This bill was amended by the House Appropriations Committee. It lowers the surcharge contribution rates in effect for the Public Employees’ Retirement System (PERS), currently 3.5% and the Teachers’ Retirement System (TRS) Plans 1 rates, currently 5.75%. PERS 1 would be lowered to 2.5% in 2024; 2.0% in 2025;1.5% in 2026; 1.0% in 2027, and 0.0% in 2027. TRS 1 rates would be 1.0% in 2024: .50% in 2025, and 0.0% from 2026 forward. It reduces the scheduled payment of $800 million into the TRS 1 fund to $250 million. The substitute Senate bill was included in their budget.
This bill passed the House as amended and has been sent back to the Senate for concurrence. The Senate did not concur. The bill is in dispute.
SB 5350: Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan 1.
Comment: This bill was amended by the House to Delay the impact of the benefit cost on the contribution rate for benefits added to the PERS and TRS 1 after June 30, 2009, until July 1, 2027. It specifies that a supplemental contribution rate shall not be charged for the benefits granted in the bill. Effective 1/1/2023.
It will be sent back to the Senate for concurrence. The Senate did not concur on 4/13/23. The bill will be sent back to the House. The bill is in dispute. They will be asked to reconsider.
SB 5490: Concerning health care coverage for retired or disabled employees denied coverage for failure to timely notify the authority of their intent to defer coverage.
Comment: A retired or disabled employee who was eligible to defer coverage when they left employment, but failed to do so and later applied for retiree coverage and was denied solely for failure to notify HCA of their plan to defer coverage, and appealed the denial of benefits by December 31, 2022, may enroll in retiree health care. A retired or disabled employee enrolling in benefits may only enroll in a fully insured Medicare Advantage or Medicare supplement plan. A retiree taking advantage of this provision must apply by the end of the open enrollment period for the plan year beginning January 1, 2024.
The Governor signed the bill, and it became effective 3/30/2023.
Other Areas of Potential Fiscal Impact (and often unfunded) to Districts
SHB 1068: Concerning injured workers’ rights during compelled medical examinations.
Comment: Allows an injured worker to make an audio and video recording of an independent medical examination and to have one person of the worker’s choosing present during the examination.
This bill was amended, then approved by the Senate. One adopted amendment reads, “Requires (1) the worker to provide seven calendar days’ notice to the entity scheduling the exam that the independent medical exam will be recorded and (2) the Department of Labor and Industries to adopt rules to define the notification process. Another adopted amendment reads, “Removes the p
