“And the band plays on…as the beat slowly increases…”
There’s a certain rhythm to the Legislature as the session continues. The action begins to move from the public hearings to executive ones, to rules and dribbling onto the floor for action. The 17th of February is the first cut-off, and in all likelihood, the 6th is a closer measure of when new bills will cease being introduced. (It takes time to schedule, hear, etc. in order to meet the February deadline)
Previous reports have covered other bills that have been introduced but as yet, show no further movement.
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 if 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 has been moved to Rules Committee.
HB 1008/SB 5420: 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 postretirement 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. 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.
**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.
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.
This bill is on the Senate floor calendar for action.
**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 $800 M 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. 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 Plans 1 members.
**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. See remarks above under HB 1201 regarding linkage of passage of this with HB 1201.
SB 5169: Concerning health care plans administered by the health care authority that are available to Medicare eligible retirees.
Comment: The public employees’ benefits board must allow Medicare-eligible retirees access to the uniform medical plan classic (UMP) Medicare. This is in reaction to an earlier attempt by the Health Care Authority to remove UMP as a future offering due solely to the huge cost increase and differential compared to the newly added PEBB Advantage (United Health Care) plans. The outrage among school retirees forced the agency to back off that attempt. This is designed to insure they don’t do it in the future.
Scheduled for public hearing on 1/27 before Senate Health Care Committee.
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.
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.
Committee passed by Executive Session.
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 examinatio
