“A party without a cake is just a meeting (hearing)” ~ Julia Child
Bills continue to be introduced but the real action happens as committees hold public hearings and executive sessions on various bills. Executive sessions often follow. Changes in planned agendas also often happen at the last moment.
Listed below are bills that show some movement. Others were reported last week but are not repeated this week if no activity has occurred to date.
Retirement Related Proposals
General Comment: Suddenly, there are a wealth of pension related bills that go in various directions. (See ** bills below) As a reminder, the last adopted budget allocated $800 Million dollars to accelerate/retire the unfunded pension
liability (UAAL) in the TRS Plan 1. That plan remains in some of the proposals and is repealed in others. The Governor, in this latest budget, accelerates the UAAL in PERS 1 through an assumption that investment returns will exceed the 7% assumed
rate of return by the actuary. The assumption and change results in a $300+ million-dollar savings to the state. School districts are currently paying pension surcharges in addition to the regular pension contributions. These surcharges will
go away under a timeline proposed by OFM and proposed legislation, saving the districts dollars they must allocate, particularly for excess staff not funded by the state. (See HB 1201/SB 5294 below)
HB 1007/SB 5296: Concerning interruptive military service credit for members of the state retirement systems.
Sponsors: Paul, Stokesbary,
Bergquist,
Leavitt, Simmons,
Griffey,
Callan, Doglio,
Timmons,
Reeves, Bronoske,
Shavers,
Riccelli, Ormsby
By Request: LEOFF Plan 2 Retirement Board, Select Committee on Pension Policy
Comment: Retirement credit can be awarded if in any armed conflicts, if the participant was awarded the respective campaign or expeditionary badge or medal…. the ‘expeditionary badge qualifier
was added.
A public hearing on SB 5296 is scheduled for 1/23 before the Senate Ways and Means Committee. HB 1007 is scheduled for Executive Session on 1/23 before House Appropriations.
HB 1008/SB 5420: Concerning participating in insurance plans and contracts by separated plan 2 members of certain retirement systems.
Sponsors: Bronoske, Simmons,
Goodman,
Leavitt, Bateman,
Lekanoff,
Callan, Kloba,
Santos,
Ormsby, Fosse
Comment: This bill would simply make retiree insurance provisions uniform and equitable for Plan 2 and 3 members. Currently, a Plan 2 member who separates from service but does not yet collect retirement cannot defer his/her enrollment in any of the state
PEBB health plans. He/she may, for example, have no need of insurance upon retirement because the spouse may still be working and have coverage. Because of the inability to defer and save his rights to buy a PEBB policy in the future, he/she loses
any rights to future PEBB plans. Plan 3 members, however, can defer and yet not collect retirement and continue to save their right to enter PEBB when they begin to collect retirement. This bill just makes both plans the same.
HB 1008 scheduled for Executive Session on 1/23 before House Appropriations.
SB 5420:Concerning participating in insurance plans and contracts by separated plan 2 members of certain retirement systems.
Sponsors: Conway, Van De Wege,
Hunt
Scheduled for public hearing on 1/23 before Senate Ways and Means Committee.
HB 1056/ SB 5349: Repealing some postretirement employment restrictions.
Sponsors: Stokesbary, Fitzgibbon,
Leavitt, Simmons,
Lekanoff,
Rule, Griffey,
Macri,
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