Retirement & Health Benefits for February 21, 2020

Fred Yancey & Mike Moran | The Nexus Group
Feb 21, 2020
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“Show me the money….” ~ From the film Jerry Maguire

Proposed bills have now either passed their respective chambers and are awaiting further action in the opposite house, or they are ‘dead’. Remember that no bill is really ‘dead’ until Sine Die. Bills with fiscal impacts can be deemed ‘necessary to implement the budget’ (NTIB) or just plain deemed necessary by a majority of a legislative body.

Bills now move relatively quickly with public hearings and often same-day executive sessions.

Here is a summary of bills that are ‘alive’ to date,

Retirement Related Proposals

Proposed bills dealing with providing a benefit increase to those members in TRS1 and PERS 1 plans can easily be seen as NTIB (Necessary to Implement the Budget) so will remain alive until Session ends.

SSB 5400 at the request of the Select Committee on Pension Policy grants TRS/PERS Plans 1 beneficiaries an increase to their monthly benefit of three percent multiplied by the beneficiaries’ monthly benefit, not to exceed sixty-two dollars and fifty cents on the first $25,000 of benefit. Its companion bill is EHB 1390.

Both bills unanimously passed their respective houses, SSB 5400 (48–0) and EHB 1390 (98–0).

Senator Ann Rivers proposed an amendment to bump the increase to 5% plus $100 on the benefit. It failed 24–24 with Lieutenant Governor Habib casting the deciding “No” vote.

The upcoming release of the budgets, (both are coming out Monday, the 24th), will show if this increase is funded. Cost is estimated to be $19 million dollars.

School Employee Benefit Board (SEEB) and Other Health Related Proposals

ESSB 6189 | Directs the Joint Legislative Audit and Review Committee to study the number and types of part-time employees that are eligible for School Employees’ Benefits Board coverage. Direct the Health Care Authority to analyze changes to the requirement that employers pay premiums when employees waive coverage. Reports are due Sept. 1, 2021. Prohibits dual enrollment in School Employees’ Benefits Board and Public Employees’ Benefits Board plans.

This bill passed the Senate 47–1.

Two issues continue to come to mind:

  1. The district cost data is not due until 2021 which is too far in the future particularly since it would be the 2022 Session that could address any concerns that came to light, and
  2. It does nothing to address the unfunded costs districts are paying for SEBB enrollees.

HB 2458 | Concerning optional benefits offered by school districts.

Specifies that school district optional benefits may not compete with any basic or optional benefits offered through the School Employees’ Benefits Board. Grants school districts express authority to offer employee-paid, voluntary benefits to school employees that are paid by employees through a payroll deduction and provides examples of those benefits. Includes intent language and a legislative finding that supplemental fixed payment insurance plans offer financial protection and do not conflict or compete with basic medical or disability plans.

Watch the debate on the bill from 47:08.

This bill passed the House 97–0 and is scheduled for a public hearing on February 2nd at 3:30 PM before the Senate Ways and Means Committee.

Other Bills

ESHB 1813 | Mandates that the costs of contracted employee health and retirement benefits must be built into school district contracts for pupil transportation.

The House passed this bill (60–36). It has been referred to the Senate Early Learning and K–12 Education Committee.

Other Bills That May Have Fiscal/Hr Impacts For Districts

SHB 2614 | Concerning paid family and medical leave.

Makes numerous revisions to the Paid Family and Medical Leave program to provide clarity and improve the program’s administration, including waiting periods, conditional waivers, and supplementation of benefits. Exempts casual labor from the types of covered employment. Grants the Employment Security Department (ESD) statutory authority to administer oaths, take depositions, issue subpoenas, or compel a witness’ attendance in an administrative proceeding. Allows ESD to apply for and obtain a superior court order authorizing a subpoena in advance of its issuance. Authorizes employees to bring a private right of action to recover damages for an employer’s unlawful acts, under specified conditions. This bill is agency request legislation.

It is scheduled on February 25th for Executive Session before the Senate Labor and Commerce Committee.

HB 2739 | Adjusting certain requirements of the shared leave program. Provides that state employees seeking shared leave due to illness, injury, impairment, or physical or mental condition are not required to deplete all of their annual and sick leave before receiving shared leave. Allows intermittent and non-consecutive use of shared leave.

This bill passed the House 96–1 and is scheduled for Executive Session on February 26th before the Senate State Government Committee.

ESSB 5473 | Studying the impact of making unemployment benefits accessible to persons with family responsibilities and other availability issues and making clarifying changes. This bill passed the Senate 40–6 and is scheduled for Executive Session on February 24th before the House Labor Committee.

SB 6123 | Allowing state employee leave for organ donation. Requires agencies to allow employees to take paid leave as needed, not exceeding 30 days in a two-year period, for participate in life-giving procedures.

This bill passed the House 47–0 and has been scheduled for Executive Session February 21st before the House State Government Committee.

Fred Yancey/ Mike Moran
The Nexus Group


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