“Begin at the beginning, and go on till you come to the end; then stop.” ~ Lewis Carroll

In the beginning, there were close to 300 bills pre-filed even before the Legislature convened. And then, once started, new bills continue to be introduced. Included among those are a number of bills affecting pensions, health, and job benefits.

Hearings and any resulting action moving bills out of committees have begun as both houses move toward the first cut-off date.

This is a brief summary of bills of interest including bills that were introduced but may have no action last session. These bills could still be brought forward.

Retirement Related Proposals

SB 6165/ HB 2325 | Provides a one-time, 1.5 percent increase to the retirement benefits of retirees in the Public Employees’ Retirement System and the Teachers’ Retirement System Plans 1, up to a maximum of $22 per month. This bill was the Governor’s request and had a hearing in the Senate Ways and Means Committee on Jan. 15th. Cities and Counties opposed the bill given the cost. Other groups/associations testified that this was not enough to offset the losses Plan 1 retirees have had since the COLA was removed in 2010. They instead asked the committee to support SB 5400 which the Select Committee on Pension Policy again approved and forwarded to the Legislature for action.

SB 5400/ HB 1390 | Provides a 3% cost of living adjustment (COLA) to TRS1 and PERS1 members up to maximum of $62.50 per month for the first $25,000 of pension. These bills are Select Committee for Pension Policy (SCPP) agency request legislation.

SB 5400 is in Ways and Means awaiting scheduling. HB 1390 is in House Rules awaiting scheduling.

HB 1132/ SB 5178 | Revises provisions of the teachers’ retirement system and the school employees’ retirement system plans 2 and 3 regarding early retirement options for members of those plans and allows early retirement with no reduction at age 60. Neither bill had a hearing last session but are still before their respective fiscal committees.

SB 5414/ HB 1409 | Changes the amount of annual leave that may be accumulated by a part-time employee who is under contract with a school district. Currently, upon retirement, an individual can cash in his/her accumulated sick leave at a 1:4 ratio using a maximum of 180 days. This change would increase the maximum to 260 days reflecting the longer contract years many school employees, especially administrators work. Neither bill had a hearing last session but are still available for action.

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

Overview: The SEEB program has been launched. Full data has yet to be furnished on the program, but a few points are known particularly after talking with fiscal staff:

1. The Governor’s budget projected a $37.2 million dollar savings from earlier projected expenditures in SEBB. It is anticipated that the savings will be even greater once all enrollment and follow-up issues are completed. In fact, it was suggested savings may be in excess of $400 million. (Earlier estimates had put the projected cost of SEBB at $898 million.)
   
2. Some of the reasons for the savings are that the Health Care Authority (HCA) assumed 7% of potential enrollees would waive coverage. Close to 14% to date have waived. These persons statewide likely have spouses with existing coverage already, or are on Medicaid, or Tricare. In short, fewer persons (40,000) enrolled in medical than projected. Also, it appears fewer dependents have been enrolled. More data to follow.

The staff member made the statement that the overall cost for this program for many districts and the state will be much less expensive that what districts and the state have paid in the past.

Regarding waivers: The HCA has repeatedly stated that even though an individual may waive coverage, a district must still pay for their insurances. The staffer made the point, that this was misleading because waiving coverage affects the pool by making the premium costs smaller, so the net effect is cheaper costs to the district on a statewide basis.

HB 2458/ SB 6479 | Concerning optional benefits offered by school districts. This bill allows for districts to continue offering some benefits that are not in conflict with those offered by SEBB. Examples would include VEBA, auto insurance, etc. The bill text points out some others. An interesting section of the bill does however, state, “Each full-time employee, regardless of the number of dependents receiving basic coverage, receives the same additional employer contribution for other coverage or optional benefits…” (This author’s experience has been that administrators often got extra benefits with district contributions than other employees. This apparently can no longer occur.)

HB 2458 is scheduled for a public hearing on January 20th.

SB 6176 | Incorporating the costs of employee health benefits into school district contracts for pupil transportation. A school district may only enter into a pupil transportation services contract with a nongovernmental entity that provides the following to its employees: (a) An employer health benefits contribution equal to the monthly school employer funding rate for the state health benefits program for school employees, less the retiree remittance for the public employees’ benefits board; and (b) An amount equivalent to the plans 2 and 3 normal cost employer contribution rate of the school employees’ retirement system, multiplied by the estimated salaries of the employees of the private nongovernmental entity. This bill is scheduled for a public hearing on 1/24 before the Senate Education Committee.

This bill is problematic for a number of reasons; added cost to districts for example. Furthermore, once this door is open, what about contracted food service workers? Others?

SB 6189 | Clarifying eligibility for school employees’ benefits board coverage. Retirees receiving insurance through PEBB, substitutes, and employees who are covered as a dependent by someone already receiving PEBB or SEBB insurance are not eligible for SEBB coverage. However, it is important to note that someone receiving Medicare can not be denied such coverage. This bill has not been scheduled for a hearing as of yet.

SB 6290 | Concerning contributions to and eligibility for school employee benefit plans. For school employee benefits beginning July 1, 2021, for the 2021–22 school year, contributions to the authority are not required for individuals (eligible for benefits under RCW32 41.05.740(6)(e)) who waive their coverage. Substitute employees and coaches are not eligible for benefits beginning with the 2021–22 school year through the school employees’ benefits board. A public hearing is scheduled before the Senate Ways and Means Committee on 1/23.

SB 6296 | Concerning health care benefits for public school employees. Beginning September 1, 2020, an employee in a job sharing position who is anticipated to work at least six hundred thirty hours is benefits eligible and will receive a prorated portion of the full-time employer contribution that is consistent with the district’s job sharing plan under RCW 28A.405.070 35. A public hearing is scheduled before the Senate Ways and Means Committee on 1/23.

Other Bills that may have fiscal/HR impacts for districts

HB 2171 | Concerning vested vacation or paid time off upon an employee’s termination. If an employer has an established policy, practice, or agreement to provide paid vacation or paid time off, and an employee is terminated from employment by death, reduction in force, resignation, dismissal, or retirement, any of the employee’s unused vested vacation time or paid time off must be paid to the employee as wages at the employee’s final rate in accordance with the employment policy, practice, or agreement with respect to eligibility and vesting requirements.

This bill was heard on Jan 20th and is scheduled for Executive Action on Jan. 20th.

HB 2304 | Concerning shared leave and industrial insurance benefits. The requirement that an employee diligently pursue and be found ineligible for industrial insurance wage replacement benefits is removed. An employee receiving wage replacement benefits may not receive more than their base salary as a result of receiving shared leave.

This bill was passed out of committee on January 16th.

HB 2614/ SB 6349 | Concerning paid family and medical leave. This bill is agency request legislation clearing up some areas with the family and medical leave act, laying out penalty process steps and clarifying certain issues.

Both bills are scheduled for public hearings on 1/20 before their respective labor committees. HB 2614 is scheduled for Executive Session on 1/23.

SB 5473/ HB 1445 | Making unemployment benefits accessible to persons with family responsibilities and other availability issues and making clarifying changes. Briefly, the term ‘good cause’ is modified to include that the separation from work was necessary because care for a child or vulnerable adult in the claimant’s care is inaccessible. Therefore, an individual may be entitled to unemployment benefits.

SB 5743 had a public hearing on 1/16.

SB 6242 | Adjusting school directors’ compensation. For a district with a total student enrollment of twenty thousand or more students, the daily amount of the compensation must be established by the board, but the annual compensation may not exceed the annual salary for a legislator under RCW 43.03.013.

This bill is scheduled for a public hearing on 1/24 before the Senate Education Committee.

SB 6368/ HB 2685 | Concerning sick leave for K–12 employees. Leave provided in this proviso not taken shall accumulate from year to year. Such accumulated time may be taken at any time during the school year may be used for the purpose of payments for unused sick leave in accordance with RCW 28A.400.210.

No hearings have been scheduled to date.

And finally, SB 6320 | Concerning the ability of a minor to operate a lemonade business on an occasional basis. This will not subject you to charges of child slavery when parking your child on the curb during vacations as a fundraiser.

Fred Yancey/ Mike Moran
The Nexus Group