“The truth is, time marches on and you have two choices: you move forward, come what may, and you experience all the sour and sweet things that fly at you from around corners, or you sit still. Don’t sit still.” ~ Suzanne Palmieri
A reminder that the 17th of February is the first cut-off when policy bills have to make it out of their respective committees. Fiscal bills have until the 24th. So, the clock is running and selected bills are moving.
Listed below are bills that show some life.
Retirement Related Proposals
HB 1007/SB 5296: 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. SB 5296 is scheduled for Executive Session on 2/7.
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 has been moved to Rules Committee.
HB 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 post-retirement employment provisions of RCW 41.32.802(2)
for up to 867 hours per year. This includes administrators. DRS wanted this in order to simplify the current system, particularly when it came to using retired contract services.
The substitute bill summary states, “The restrictions on receiving benefits during postretirement employment for PERS, TRS, and SERS Plans 2 and 3 retirees that retired under the 2008 ERF are lifted to allow receipt of pension payments during employment
of up to 867 hours per year of employment with a retirement system employer. Benefits for retired members that choose the 3 percent ERF are adjusted to the reductions in the 2008 ERF for purposes of benefit payments made after the effective date of
the act.”
SHB 1056 has been moved to Rules Committee. SB 5349 has been moved to Executive Session 2/7.
HB 1057/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 would provide a 3% increase not to exceed $110/month for TRS1/PERS1 Plan retirees. The Governor included this one-time increase in his released supplemental budget. Same COLA as granted last session. However, there is an addition: During
the 2023-2025 fiscal biennium, the SCPP will study and recommend a permanent ongoing cost-of-living adjustment for beneficiaries of the public employees’ retirement system Plan 1 and the teachers’ retirement 2 system Plan 1.
Scheduled for public hearing 1/26 before House Appropriations Committee and a public hearing 1/23 before Senate Ways and Means. Both bills are likely NTIB (Necessary to Implement the Budget so remain alive.)
SB 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.
HB 1201/SB 5294: Concerning actuarial funding of state retirement systems.
Comment: This bill deals with eliminating the unfunded liability (UAAL) of TRS/PERS Plans 1. The intent is that by so doing, the employer surcharge currently being paid to decrease the UAAL will be reduced to a zero (0%) added charge: PERS on 6/30/25;
SERS on 8/31/25 and TRS on 8/31/24. This will save the state in excess of $4B and school districts whose staffing exceeds state reimbursement will also save dollars. Cities and counties will also save money. This bill also repeals the commitment made
last session to pay $800M toward eliminating the TRS 1 unfunded liability, assuming investment returns will make up the difference.
HB 1201 is scheduled for Executive Session on 2/2 before House Appropriations but was not acted upon. A key legislator has indicated that HB 1201 and HB 1459 are a “package deal”. Both must pass. The reason being that if HB 1201 is done, then there is
an opportunity to restore a permanent COLA for Plan 1 members. SB 5294 had a public hearing 1/23. Both bills are likely NTIB so will remain alive but the ‘package’ appears to be in trouble. Democrat legislators are divided on supporting
these bills, so they are likely to not succeed.
HB 1459: Providing an annual adjustment in the Public Employees’ Retirement System and Teachers’ Retirement System Plan 1 benefits capped at $110 per month by adjusting the long-term investment rate of return assumption.
Comment: This is basically a capped permanent COLA proposal.
This is scheduled for Executive Session on 2/2 before House Appropriations but like HB 1201 was not acted upon. See remarks above under HB 1201 regarding linkage of passage of this with HB 1201 and divided support among Democrats.
HB 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: This bill came to Sen. Rolfes from an agitated constituent who missed the deadline to continue membership in PEBB post-retirement. This bill allows a “second bite at the apple” if certain conditions and timelines are met.
Scheduled for public hearing 2/7 before Senate Ways and Means.
Other Areas of Potential Fiscal Impact (and often unfunded) to Districts
HB 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
