Retirement & Health Benefits for February 10, 2023

“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 1008: Concerning 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 5121: Extending 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 1068: Concerning 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 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 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.

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