“Follow the bouncing ball…..”
Mitch Miller
As Sine Die approaches, action on bills received from the opposite house continues at a brisk pace. And bills (balls) continue bouncing. As mentioned earlier, some bills passed in the form they were received will go to the Governor; some will not move at all, and others will be amended and then sent back. If there is no agreement, they are then sent back again. And on and on.
Below are bills that appear still ‘alive’, NTIB, and/or still being worked by various constituencies. (Bills that are in respective Rules’ Committee are still generally alive until April 12th.) Negotiations between both houses are occurring as both bodies work with the looming deadlines.
Unless noted otherwise, bills that have been signed by the Governor are effective 90 days after adjournment.
Retirement Related Proposals
SHB 1007: Concerning interruptive military service credit for members of the state retirement systems.
Comment: Retirement credit can be awarded if, in any armed conflicts, the participant was awarded the respective campaign or expeditionary badge or medal…. the ‘expeditionary badge’ qualifier was added.
Signed by the Governor 4/6/23.
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 is in Senate Rules awaiting further 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.
This bill is in Senate Rules awaiting further action.
*Note Regarding Pension Funding**: The good news about the bills mentioned below is that contribution rates/surcharges will be reduced. This will save districts dollars they are paying for staff not funded by the state’s basic apportionment formula. The ‘bad’ news is that some of the bills assume rosy investment returns will offset the loss of dollars that were previously dedicated to paying down the unfunded liabilities in Plans 2. WSSRA has been working with legislators and favors SSB 5294 (see below), which offers a stepped-down reduction in rates that may help prevent both an eventual increase again in unfunded liabilities and a future rate increase or reinstatement.
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 a permanent COLA for these retirees. It was amended by the House Appropriations Committee. Delays 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. Specifies that a supplemental contribution rate shall not be charged for the benefits granted in the bill. “The rate for benefit improvements that became effective after June 30, 2009, shall not include a rate for the improvements in this act until July 1, 2027.” The Senate amended the bill as well. It removes provisions delaying the imposition of the contribution rate increases attributable 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. This bill is likely ‘dead’.)
Both bills have been referred to their respective Rules committees for further action.
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. This is likely to be approved and sent to the Governor.
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 is on the Senate floor calendar awaiting further action.
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: Requires that public agencies soliciting public comment for statutorily specified periods of time provide notice of the first and last date and time which public comment will be accepted. • • Establishes penalties for agencies failing to provide notice. The amendment summary reads, “Notice of the public comment solicitation period must also include the first date public comments may be submitted and the time by which comments must be submitted. An agency that fails to provide notice is subject to the same penalties as the member of a governing body who violates another provision of OPMA, and liability ensues regardless of whether a meeting occurs. Agency members are not personally liab
