Retirement & Health Benefits for January 14, 2022

“The key to success is action, and the essential in action is perseverance.” ~ Sun Yat-Sen

The 2022 Session began virtually on January 10th. It will be 60-day, mad dash to a March 10th finish line. Numerous bills were pre-filed. In fact, in excess of 600, a record. Being introduced, however, being heard, and then advanced in committee are three different processes. One does not guarantee the others. Meanwhile, below is a brief report on these bills by title. Some titles are self-explanatory; others have a brief summary. And as a reminder to be involved, know that “If you are not at the table; you’re on the menu.”

General remarks/opinion: This session will move very quickly. Key themes that will dominate are working on the long-term care issue, reforming the previously implemented police reforms, housing/zoning/homeless issues, dealing with modifying the Governor’s power to issue emergency resolutions, and oh, yes…. building a supplemental budget when everyone has their hand out. Spending will be primarily focused on helping those in need.

Although, there will be a number of groups asking for funding ‘modest amounts’, after a while all that modesty totals a big grab of the extra dollars. Education funding, surprise! surprise!, will continue to be a battle for resources.

Retirement Related Proposals

HB 1699 | Permitting individuals retired from the public employees’ retirement system, the teachers retirement system, and the school employees retirement system additional opportunities to work for a school district for up to 1,040 hours per school year while in receipt of pension benefits until July 1, 2025.

Sponsors: Bergquist, Volz, Ryu, Leavitt, Chase, Robertson, Graham, Springer, Sells, Valdez, Dolan, Paul, Callan, Gilday, Goodman, Taylor, Macri, Ramos, Santos, Pollet, Griffey, Riccelli, Frame, Kloba.

This bill has been scheduled for a public hearing on 1/20 @ 3:30 PM before the House Appropriations Committee.

Comment: It has been suggested and many legislators agree to amend this bill to include building administrators and to add an emergency clause that would it to go into effect during the current school year. Legislators need to hear from the field that this bill is needed with the proposed amendments. Swift passage is essential.

HB 1721 / SB 5676 | Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan 1.

Sponsors: SCPP, Stokesbary, Ormsby, Leavitt, Sells, Johnson, J., Fitzgibbon, Robertson, Walen, Dolan, Valdez, Bateman, Callan, Goodman, Macri, Paul, Simmons, Wylie, Sullivan, Bergquist, Pollet, Young, Kloba, Frame.

Summary: 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. (The Washington State School Retirees’ Association will be advocating for a higher percentage than the proposed 3% to account for lost purchasing power over time and current inflation. A reminder that these are the only two plans of the 15 offered by the State that do not grant automatic COLA’s.)

Both bills have been scheduled for public hearings before the House Appropriations and Senate Ways and Means Committees on Jan. 17th.

SB 5676 / HB 1721 | Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan 1.

Sponsor: Conway.

Summary: See HB 1721 above.

HB 1752 | Adding a Roth option to deferred compensation plans.

Sponsors: Stokesbary, Bergquist.

Comment: This bill is scheduled for a public hearing before the House Appropriations Committee on Jan. 17th.

Other areas of potential fiscal ($$) impact (often, unfunded) to districts:

HB 1485 | Designates March 22 to be a state legal holiday, recognized as Women’s Suffrage Day.

Sponsors: Representatives Caldier, Chambers, Graham, Lekanoff, Volz, Sutherland, Jacobsen, Eslick and Pollet.

Comment: This will be another holiday to build into school calendars. A public hearing before the House Committee on State Government & Tribal Relations was on January 10th and an Executive Session was scheduled for 1/13.

HB 1594 | Repealing the long-term services and supports trust program.

Sponsors: Abbarno, Robertson, Maycumber, Boehnke, Corry, Chase, McCaslin, Caldier, Eslick, Walsh, Klippert, Dye, MacEwen, Stokesbary, Hoff, Barkis, Graham, Schmick, Chambers, Dufault, Gilday, Kraft, Jacobsen, Orcutt, Dent, Griffey, Young.

HB 1613 | Concerning shared reporting responsibilities for both the paid family and medical leave and the long-term services and supports trust programs to clarify that information collected from employer reports shall remain private.

Sponsors: Sells, Berry, Ryu, Wicks.

Comment: This bill was heard on Jan. 11th and is scheduled for Executive Session on 1/19 before the House Labor and Workplace Standards Committee.

HB 1617 | Aligning state and school holidays.

Sponsors: Morgan, Leavitt, Johnson L., Ramel, Callan, Davis, Taylor, Santos, Simmons, Riccelli, Ormsby, Harris-Talley.

Comment: The legislature intends to clarify that Juneteenth, like all other state legal holidays, is a school holiday on which school may not be taught. A public hearing was held Jan. 10th in the House Committee on State Government & Tribal Relations and an Executive Session was scheduled for 1/13.

HB 1732 | Delaying the implementation of the long-term services (LTS) and supports trust program by 18 months.
Sponsors: Sullivan, Chopp, Johnson, J., Walen, Chapman, Berry, Cody, Dolan, Fey, Macri, Peterson, Ryu, Santos, Senn, Shewmake, Wylie, Simmons, Callan, Slatter, Ramos, Bergquist, Tharinger, Valdez, Thai, Pollet, Morgan, Taylor, Stonier, Ortiz-Self, Gregerson, Davis, Riccelli, Ormsby, Duerr, Orwall, Bateman, Kloba, Frame.

Summary: As proposed, the LTS program will begin 7/1/2023. Individuals can qualify for partial coverage after one year at 1/10th of the benefit earned per premium year. A public hearing was on Jan. 11th and an Executive Session was scheduled for 1/13. This bill is expected to be ‘fast-tracked’ given all the outcry legislators have heard from the public and the press.

HB 1733 | Establishing voluntary exemptions to the long-term services and supports trust program for certain populations.
Sponsors: Paul, Macri, Johnson, J., Leavitt, Bronoske, Chapman, Senn, Berry, Cody, Dolan, Fey, Peterson, Ryu, Santos, Shewmake, Wylie, Simmons, Callan, Chopp, Slatter, Ramos, Bergquist, Tharinger, Valdez, Thai, Pollet, Morgan, Taylor, Stonier, Ortiz-Self, Gregerson, Riccelli, Davis, Ormsby, Duerr, Orwall, Bateman, Kloba, Frame.

Summary: AN ACT Relating to establishing voluntary exemptions to the long term services and supports trust program for certain populations identified in the long-term services and supports trust commission’s 2022 recommendations report, specifically including exemptions only for veterans with a service-connected disability of 70 percent or higher, the spouses or domestic partners of active duty service members, persons residing outside of Washington while working in Washington, and persons working in the United States under a temporary, nonimmigrant work visa.
A public hearing was held on Jan. 11th and an Executive Session was scheduled for 1/13 before the House Appropriations Committee.

HB 1757 | Concerning educational service district participation in health benefit plans offered by the public employees’ benefits board.

Sponsors: Cody, Harris, Santos, Pollet, Riccelli.

Summary: This will allow non-representative ESD employees to participate in benefit plans developed by the public employees’ benefits board. A public hearing is scheduled before the House Appropriations Committee on Jan. 17th.

HB 1759 | Requiring school districts and other public education entities to make information from the department of health about substance use trends, overdose symptoms and response, and the secure storage of prescription drugs, over-the-counter medications, and firearms and ammunition, available through their websites and other communication resources.

Sponsors: Cal