“The level of analysis that is done when you see laws (substitute ‘budgets’) created, whether it’s the city, state or federal level, it’s much more horse-trading than analysis.”
Michael Bloomberg
The Senate budget proposal has been released. The House proposal is yet to come. The big-ticket items have been covered earlier in this TWIO. The other financial figures related to funding benefits will be finalized once the assumed differing budget proposals are reconciled. A fuller report detailing those finances will come after the final is done.
Below are bills that appear still ‘alive’ and are either reflected in the budget or awaiting further action by the opposite house. Remember that negotiations between both houses are still to occur. Bills from the opposite house that have been amended once passed the floor will either need to be approved by their house of origin or not. Let the horse trading begin.
Retirement Related Proposals
SHB 1007: Concerning interruptive military service credit for members of the state retirement systems.
Comment: Retirement credit can be awarded if, in any armed conflicts, the participant was awarded the respective campaign or expeditionary badge or medal…. the ‘expeditionary badge qualifier was added.
This bill passed the Senate 49/0 and will be sent to the Governor.
SHB 1056: Repealing some postretirement employment restrictions.
Comment: Changes the postretirement employment restrictions on benefits eligibility for Public Employees’ Retirement System, Teachers Retirement System, and School Employees Retirement System Plans 2 and 3 members that retired under the 2008 Early Retirement Factors (ERFs). • Permits 2008 ERF members to work in retirement system–covered employment for up to 867 hours per year without suspension of retirement benefits. • Adjusts benefits for individuals that chose the 3 percent per year early retirement reduction to the level of reduction in the 2008 ERFs for future benefit payments. Effective 1/1/2024.
This bill is scheduled for Executive Session on 3/28 before Senate Ways and Means.
ESSB 5294: was amended by the House Appropriations Committee. It changes the contribution rates in effect for the Public Employees’ Retirement System (PERS) and the Teachers’ Retirement System (TRS) Plans 1 UAAL rates in effect from Fiscal Year 2024 until Fiscal Year 2028 by increasing them generally from 0.50 to 1.0. This was done to address concerns that, with the original rate proposal, the unfunded liability may continue or worsen. It continues to reduce the scheduled payment of $800 million into the TRS 1 fund to $250 million. The substitute Senate bill was included in their budget.
SSB 5350: would grant a one-time, capped 3% COLA for TRS1/PERS1 plan members. It also directs the SCPP to recommend a path to regain a permanent COLA for these retirees. It was amended by the House Appropriations Committee. Delays the impact of the benefit cost on the contribution rate for benefits added to the PERS and TRS 1 after June 30, 2009, until July 1, 2027. Specifies that a supplemental contribution rate shall not be charged for the benefits granted in the bill. The original Senate bill was included in their budget. (HB 1057, a companion bill, is likely to be in the upcoming House budget.)
SSB 5121: Extending the expiration date of the joint select committee on health care oversight.
Comment: Extends the expiration date of the Joint Select Committee on Health Care Oversight from December 31, 2022, until December 31, 2026, and renames it the Joint Select Committee on Health Care and Behavioral Health Oversight.
The bill passed House 97/0 and will be sent to the Governor.
SSB 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: Allows certain retired public employees who were denied retiree health care coverage by the Public Employees Benefits Board another limited opportunity to enroll. • Only retired or disabled employees who were denied coverage for failure to notify the Health Care Authority of their deferral of coverage, and appealed the denial before December 31, 2022, are provided the new opportunity to enroll.
This bill passed the House 97/0 and will be sent to the Governor.
Other Areas of Potential Fiscal Impact (and often unfunded) to Districts
SHB 1068: Concerning injured workers’ rights during compelled medical examinations.
Comment: Allows an injured worker to make an audio and video recording of an independent medical examination and to have one person of the worker’s choosing present during the examination.
This bill passed Executive Session 3/23 before Senate Labor and Commerce and will be sent to 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.
Executive Session is scheduled 3/28 before Senate State Government.
ESHB 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 a good cause. The bill was amended and requires unemployment benefits based on the good cause quit for certain non-temporary shift changes made by the separating employer to be proportionally charged to the experience rating accounts of all of the claimant’s employers from his or her base year rather than charged to the experience rati
