“I grew up with six brothers. That is how I learned to dance–waiting for the bathroom.”
Bob Hope
As important deadlines are past and/or upcoming, negotiations between leadership, caucus members, and legislators of the opposite party are occurring behind closed doors. Those outside must wait to see what emerges. The assumed to be conference budget is a key piece yet to come. But other bill proposals also await action. So, it remains critical to continue to push/advocate with individual legislators while we learn to dance.
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.
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 has been sent to the Governor.
HB 1008: Concerning participating in insurance plans and contracts by separated Plan 2 members of certain retirement systems.
Comment: It allows certain individuals who separate from a position covered by the Public Employees’, School Employees’, and Teachers’ Retirement System Plans 2, without retiring, the opportunity to participate in retiree benefits of the Public Employees’ Benefits Board.
This bill is in Senate Rules awaiting further action.
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 in Senate Rules awaiting further action.
*Note Regarding Pension Funding**: The good news about the bills mentioned below is that contribution rates/surcharges will be reduced. This will save districts dollars they are paying for staff not funded by the state’s basic apportionment formula. The ‘bad’ news is that some of the bills assume rosy investment returns will offset the loss of dollars that were previously dedicated to paying down the unfunded liabilities in Plan 2. WSSRA has been working with legislators and favors SSB 5294, which offers a stepped-down reduction in rates that may help prevent both an eventual increase again in unfunded liabilities and a rate increase or reinstatement.
ESSB 5294: Concerning actuarial funding of state retirement systems.
Comment: This bill was amended by the House Appropriations Committee. It lowers 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.
This bill is in House Rules awaiting further action.
SSB 5350: Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan.
Comment: This 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 rate for benefit improvements that became effective after June 30, 2009, shall not include a rate for the improvements in this act until July 1, 2027.” (ESHB 1057 is the companion but differs regarding rates. The surcharges go away to be reinstituted later. (Dates are specified))
Both bills have been referred to their respective Rules committees for further action.
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 Governor signed this bill 3/30/23. Expires Dec. 31, 2026.
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 Governor signed this bill 3/30/23. This act takes effect immediately.
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 is in Senate Rules awaiting further action.
SHB 1105: Requiring public agencies to provide notice for public comment that includes the last date by which such public comment mus
