“The future is uncertain, but the end is always near.”
Sine Die approaches and a sense of glee and panic pervades the air as multiple bills either pass or fail to advance. Concurrence, recession, and just plain obstruction are on display.
Multiple bills, close to 400, will be sent to the Governor who is even now in the process of signing them. To date, there have been no vetoes.
Below is a summary of what is known. A year-end, post-Session report will be more definitive.
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.”
The House has asked the Senate to recede from its amendments and it did. The bill then passed 47/1/1. It will sent to the Governor for his signature.
ESSB 5294: Concerning actuarial funding of state retirement systems.
Comment: Beginning July 1, 2027, a new minimum UAAL rate is established for both TRS 1 and PERS 1 of 0.5 percent. The scheduled payment of $800 million into the TRS 1 fund is reduced to $250 million.
This bill passed the House as amended and was sent back to the Senate for concurrence. The Senate did not concur. The house receded from its amendment and the bill passed. It has been sent to the Governor for his action.
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: A one-time, 3 percent benefit increase is provided to PERS plan 1 and TRS plan 1 retirees up to a maximum of $110 per month. The benefit increase goes into effect on July 1, 2023. To be eligible for the increase the member must be retired on or before July 1, 2022. This increase only applies to members that are not receiving a minimum benefit. The Select Committee on Pension Policy is directed to study and recommend an ongoing COLA for plan 1 retirees. The recommendation must consider employer contribution rate stability and coordinate the effective date with the reduction or elimination of the unfunded actuarial accrued liability.
The House receded from its amendments and the bill has been sent to the Governor. reconsider.
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 prohibition on recording neuropsychological exams. Prohibits the worker from materially altering the recording or posting it to social media.”
The House concurred and this bill has been sent to the Governor.
ESHB 1106: Concerning 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 a good cause. Senate adopted amendments expands access to unemployment insurance (UI) benefits by adding circumstances where a person may voluntarily quit for good cause and requires a report to the legislature regarding UI claims related to benefits for separations from employment because of inaccessible care for a child or vulnerable adult. Another adopted amendment provides that benefits paid because care for a child or vulnerable adult in the claimant’s care is inaccessible shall not be charged to the experience rating account of any contribution paying employer.
The House concurred and the bill has been sent to the Governor.
ESHB 1187: Concerning privileged communication between employees and the unions that represent them.
Comment: Creates a privilege from examination and disclosure for a union representative and a union employee concerning any communication between the union representative or union employee made during union representation and creates exceptions to this privilege. • Applies the privilege from examination and disclosure to the union members and organizations that represent employees of college districts, employees of school districts, public employees, faculty at public four-year institutions of higher education, civil service employees, ferry employees, port employees, and labor unions.
The House concurred with the Senate amendments and the bill has been sent to the Governor.
