AWC Legislative Bulletin - Volume 30, No. 12
March 23, 2007
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In this issue:
What You Need to Know Now
From the Director: And A Word From the Other Washington – D.C.
Energy & Telecommunications
Environment & Water
General Local Government
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Land Use & Housing
Law & Justice
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Personnel & Labor Relations
The House budget, which was released on March 20, presumes passage of the Fromhold/Conway gain-sharing bill, HB 2391. As we mentioned in last week’s Bulletin, this bill has some of the same features as the Governor’s gain-sharing proposal (HB 1771/SB 5779), but it also provides for a better early retirement option for Plan 2 members.
Currently, PERS Plan 2 members who are at least 55 years old and who have at least 30 years of service credit can retire with a 3% per year actuarial reduction in their benefit for each year they are younger than 65. For example, under current law, a 55-year old member with 30 years of service could retire with a 30% reduction in benefit.
HB 2391 calls for a 1% reduction in benefit for each of the first five years that a member is younger than 65, and a 3% reduction for each of the next five years (down to age 55). For example, a 60-year old member with 30 years of service could retire with a 5% reduction in benefit (instead of 15%), and a 55-year old member with 30 years could retire with a 20% (rather than 30%) reduction.
This Plan 2 benefit enhancement does come at a cost. Both employer and employee contribution rates would go up an additional .47% for this benefit, but the employer rate increase would be offset by rate decreases due to the elimination of gain-sharing. The Governor’s gain-sharing proposal, which is in line with AWC’s position on gain-sharing, would save local governments $707.3 million over the next 25 years; HB 2391 would only save local governments $217.9 million over the same time period.
The House Appropriations Committee has scheduled public hearings on HB 1771, HB 2391, and HB 2116 for Tuesday, March 27 at 3:30 pm. HB 2116, sponsored by Rep. Barbara Bailey (R-Oak Harbor), would eliminate the gain-sharing benefit for future hires, change the formula for when future gain-sharing events would occur, and apply the cost savings towards the unfunded liability in Plan 1.
SB 5779 has not yet been scheduled for a hearing in the Senate Ways & Means Committee.
Family and Medical Leave Insurance (E2SSB 5659)
The House Commerce and Labor Committee held a hearing on E2SSB 5659 Tuesday, March 20. Thanks to Debbie Lund of Tumwater and Alberto Lara of Thurston County for testifying and outlining local governments’ concerns with the bill.
This legislation would require all employees to pay a two-cent per hour premium for an insurance benefit that would pay $250 a week for up to five weeks of family leave, even if they already have a generous leave program or never use the benefit. See last week’s Bulletin for more details about the amended version of the bill.
AWC remains opposed to the bill because of potential conflicts and overlaps with federal and state law and local leave policies.
The Commerce and Labor Committee is expected to pass the bill at 1:30 this afternoon (Friday, March 23). Now is the time to contact your representatives urging them to oppose E2SSB 5659.
SSB 5340, which significantly expands the definition of disability in the Washington Law Against Discrimination, was heard by the House Judiciary Committee on Wednesday, January 21. SHB 1322 has not yet been scheduled for a hearing by the Senate Judiciary Committee.
A panel of attorneys representing cities and various business interests testified in opposition to SSB 5340, expressing serious concerns about the overly-broad definition that will cause extreme uncertainty for employers trying to comply with the law.
Despite hearing from many interests about problems with the bill, the Committee passed it out on Friday, March 23.
The bill is now in the House Rules Committee. Please contact your representatives urging them to oppose the bill.
Presumptive Disease for Firefighters (ESHB 1833)
The Senate Labor, Commerce, Research & Development Committee will hear ESHB 1833 on Tuesday, March 27 at 1:30 pm. Please see last week’s Bulletin for more information about the amended bill, which adds more diseases and conditions to the statute regarding presumptive disease for firefighters. We remain opposed to this legislation because we believe it is still too broad. Cities are encouraged to contact their senators asking them to vote against ESHB 1833.
Six-Year Collective Bargaining Agreements (ESB 5251)
The House Commerce and Labor Committee has yet to take action on ESB 5251, which allows local governments and their employees to agree to contract terms of up to six years, instead of the current three-year maximum term. It must pass out of committee by Friday, March 30, to remain alive for the session.
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