Personnel & Labor Relations

LEOFF 1 Medical Liability/Elimination of Benefit Cap (SHB 2688)

The House passed SHB 2688 on February 11 and it was referred to the Senate Ways & Means Committee. At the time this Bulletin went to press, the bill had not yet been scheduled for a hearing.

This legislation would establish a joint executive task force on funding postretirement medical benefits for LEOFF 1 members and eliminate the cap on the number of years of service that can be included in LEOFF 1 pension calculations. The bill also reinstates the 6% employer and employee pension rates for LEOFF 1 members.

We are advancing and are hopeful the Ways and Means Committee will consider an amendment that removes the section of the bill that reinstates the pension contribution rates and directs the task force to study rate reinstatement as it develops its recommendations for a funding source for postretirement medical benefits.

PERS 1 Unfunded Liability (HB 2683/SB 6451, HB 2909, SB 6847, SB 6896)

The Senate’s proposed supplemental budget, which was released on February 15, provides for a phase-in of PERS employer contribution rates for the unfunded liability in Plan 1, beginning with a 1.77% additional rate effective January 1, 2007 and increasing that to the current law level of 2.63% on July 1, 2007.

The Governor’s proposed supplemental budget, released earlier this year, also provided for a phase-in, beginning with a .87% additional rate effective July 1, 2006. These rates are in addition to the normal PERS employer rate, which will increase from 2.25% to 3.5% as of July 1, 2006, to 4.06% as of July 1, 2007, and to 4.74% as of July 1, 2008.

We do not yet know which approach the House budget writers will take, but there are at least six different proposals with varying phase-in schedules under consideration, some of which delay the increase for local governments until January of 2007. The State Actuary has prepared a summary of the various proposals.

Other Pension Legislation

Three bills recommended by the LEOFF 2 Retirement Board passed out of the House and await a hearing in the Senate Ways & Means Committee:

• HB 2932, establishing a catastrophic disability allowance for LEOFF 2 members;
• HB 2933, extending the LEOFF 2 $150,000 death benefit to survivors of members and retirees who die as a result of an occupational illness; and
• HB 2934, allowing survivors of LEOFF 2 members killed in the line of duty to be reimbursed for the cost of participating in a state health insurance plan.

The companion bill to HB 2934, SB 6723, passed the Senate and was heard by the House Appropriations Committee on February 16.

The House Appropriations Committee also heard two PERS 1 bills on February 16:

• SB 6453, providing a $1,000 minimum monthly benefit for certain PERS 1 retirees; and
• SB 6454, providing for an improvement to timing of eligibility for the Plan 1 Uniform COLA adjustment.

The Senate proposed supplemental budget also presumes passage and includes funding for these LEOFF 2 and PERS 1 benefit enhancements.

Increasing the Maximum Term of Collective Bargaining Agreements (SB 6411)

On February 13, the Senate passed SB 6411 on a vote on a 43-4 vote. It is scheduled for a hearing before the House Commerce & Labor Committee on Wednesday, February 22, at 8:00 am.

This bill, supported by both management and labor, would increase the maximum term for local government collective bargaining agreements to six years instead of the current three years. This legislation simply provides the parties the flexibility to negotiate a longer contract term if they find it mutually advantageous to do so.

Modifying the Family and Medical Leave Act (SHB 2392/SSB 6185)

SHB 2393 was not brought up for a vote before the full House by the February 14 deadline and is dead for the session. However, the Senate version, SSB 6185, passed the Senate on February 8 and was heard by the House Commerce and Labor Committee on Wednesday, February 15.

This bill makes changes to state law intended to mirror the current federal Family and Medical Leave Act (FMLA), which requires that employers with 50 or more employees provide an employee up to 12 weeks of leave upon the birth of a child, to care for a seriously ill family member, or for the employee’s own illness.

Under federal law, there are sufficient opportunities for employees to seek relief if they believe their rights have been denied. This bill provides two additional ways: they can file a complaint with the State Department of Labor and Industries, which is required to investigate complaints and impose monetary penalties, and they can sue their employers for violation of the state law.

Earlier versions of this bill sought broader changes, and it now appears that the Legislature will adopt the substitute version of the bill.

[ previous article ] [ return to top ] [ next article ]