The Joint Legislative Task Force on Family Leave Insurance held its fourth meeting in Olympia on November 14, 2007. After a lengthy discussion the Task Force arrived at a draft proposal for funding to provide family leave insurance benefits to parents of newborn or newly-adopted children. E2SSB 5659, passed this 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, starting in October of 2009.

The Task Force reviewed funding options which included a new sales tax at the wholesale level on carbonated beverages, sales tax on candy and gum sales, re-imposition of the $0.42 surcharge on each liter of liquor, a new premium of one cent per hour worked per worker, and a new premium of 0.01 percent of covered wages earned. In the end, the Task Force voted in favor of a "draft proposal" to allocate from the state general fund revenues necessary to cover start-up and program costs (estimated to be $86 million annually by FY 2013) beginning in 2009 through the 2011-13 biennium.

The Task Force did not reach a decision regarding which agency would run the Family Leave Insurance Program. However, Labor and Industries and Employment Security each submitted reports outlining potential governmental efficiencies. The Task Force unofficially voted to adopt recommendations to simplify the application process, eliminate attorney’s fees at the administrative level to reduce the number and cost of appeals, and provide for collection tools similar to unemployment insurance and worker’s compensation to prevent/pursue fraud. They also rejected the requirement that applicants have benefit payments directly deposited into a bank account. A method to simplify benefit calculation was sent back to staff for revision.

Legislative staff was directed to prepare a questionnaire disseminated to each task force member with options for final recommendations to the Legislature. The results of the questionnaire will be discussed and voted on during the December 13, 2007 meeting and then forwarded onto the Legislature as the official Task Force recommendations.

For additional background information about the legislation and task force, see the August 27 issue of Personnel News.

Study of LEOFF 1 Retiree Medical Costs

At the December 18, 2007 meeting of the Select Committee on Pension Policy, the State Actuary’s Office will present the results of their recent study on LEOFF 1 retiree medical costs, which was authorized by the Legislature earlier this year. The study will estimate the statewide liability to local governments for LEOFF 1 medical and long-term care costs. The Actuary’s office is nearing completion of a tool that will help smaller local governments identify their specific liability.