LEOFF 1 Medical Cost Study Completed

The much-anticipated actuarial study of local government liabilities for Law Enforcement Officers’ and Fire Fighters’ Retirement System Plan 1 (LEOFF 1) post-retirement medical benefits is now available.

The study estimates that the statewide liability for LEOFF 1 medical and long-term care costs for all local governments is a staggering $1.745 billion. This is the amount of money that would be required to be invested today to pay for all of the expected obligations. In general terms, this equates to nearly $235,000 for each of the 7,447 active and retired LEOFF 1 members.

It is important to note that this analysis of the statewide liability does not satisfy individual LEOFF 1 employer responsibilities to report their LEOFF 1 liabilities for GASB 45 purposes. Smaller jurisdictions (those with fewer than 100 LEOFF 1 actives and retirees) will be able to utilize an online tool developed by the State Actuary to determine their individual liability. The tool is expected to be available on the Actuary’s website on January 31, 2008. Larger jurisdictions will need to contract for an actuarial study.

One of AWC’s top legislative priorities is securing financial assistance to help cities pay for their LEOFF 1 liability. Although it is unlikely that action will be taken during the short 2008 session, we will continue to remind the Governor and Legislature that it is important to begin working to identify potential legislative solutions.

For a copy of the study, go to the State Actuary’s website at http://osa.leg.wa.gov and click on LEOFF 1 Medical Study under "What’s New."

Family Leave Insurance (HB 2665, SB 6280)

HB 2665 implements the recommendations of the Joint Task Force on Family Leave Insurance and was heard by the House Committee on Commerce and Labor on January 18. Next Tuesday, January 22, at 3:30 pm the House Appropriations Committee will conduct a work session on the task force recommendations. The Senate Labor and Commerce, Research and Development Committee will hold its public hearing on SB 6280, the companion bill, at 3:30 pm on Thursday, January 24.

E2SSB 5659, passed last year, created the new insurance program to give new parents $250 a week for up to five weeks while they take time off from work to bond with a new born or newly adopted child, starting in October of 2009.

The 13-member task force is recommending appropriating from the general fund, revenues necessary for program start-up and payment of benefits through the 2013 biennium. Governor Gregoire is opposed to using general fund money for benefits, and wants the public to vote on an hourly wage tax that would pay for the benefits. The task force also recommends the program be administered by the State Employment Security Department, with Labor and Industries handling matters of compliance.

House Appropriations – Pension update

The House Appropriations Committee has scheduled a work session on Tuesday, January 22 to review the State pension systems.

Leave for Victims of Domestic Violence (HB 2602)

This bill ensures employment leave for victims of domestic violence, sexual assault, or stalking, and provides that the taking of leave may not result in the loss of any pay or benefits to the employee. The House Committee on Commerce and Labor will hear the bill on Friday, January 25 at 2:30 pm

Military Leave (HB 1127)

Returning from the 2007 legislative session, HB 1127 extends the duration of paid military leave of absence from 15 days to 30 days per year. The bill guarantees that any officer or employee of the state or local government, who is a member of the Washington national guard, army, navy, air force, coast guard, or marine corps reserves of the United States or any organized reserve or armed forces of the United States is entitled to leave so the person may report for active duty or training. Taking leave will not result in any loss of privileges or pay and the employee receives his or her normal pay during the leave.

The House passed this bill this week. It has been referred to the Senate Government Operations and Elections Committee.

This leave may create a need for either overtime pay or replacement-worker pay and result in potential costs to local governments in the form of wages and benefits for replacement workers or overtime pay for other employees.

Employee Organization (HB1913/SB5772)

Returning from the 2007 session, these bills authorize a cross-check if an application for certification of an organization as an exclusive bargaining representative is submitted along with a majority showing of interest.

They provide for certification of an organization as the exclusive bargaining representative if there are valid cards for a majority of the employees in the unit. These bills would reduce the certification threshold from the current level of 70 percent to a simple majority - one more than 50 percent. Both bills are eligible for action but neither bill has been scheduled.

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