AWC Legislative Bulletin - Volume 32, Interim No. 1
July 31, 2009  (Plain Text Version)

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In this issue:
Initiative 1033, concerning city revenues and lowering property taxes, to be on November ballot
Changes at AWC
AWC prepares for 2010 Legislative session - how you can provide input
AWC 2010 legislative policy development process
Energy & telecommunications
Federal issues
General local government
Infrastructure, economic development and transportation
Law & justice
Municipal finance
Personnel and labor

Personnel and labor

LEOFF Plan 1 medical benefits fact book

The Washington State Department of Retirement Systems recently released the LEOFF Plan 1 Medical Benefits Fact Book, Task Force Study-Phase One. Click here to download a copy. This publication is the result of the work of the various stakeholders who identified and agreed upon the relevant facts.

Phase one of the Task Force study serves to define employer paid medical benefits for members and retirees of the plan provided for in statute. The study examines GASB 43 and GASB 45 implications and confirms the findings of the Office of the State Actuary relating to liabilities owed by local governments. As of the September 30, 2006 valuation, the present value of all future medical and long-term-care benefits to be paid on behalf of current and retired LEOFF Plan 1 members is $1.758 billion. This represents $1.745 billion that had already been accrued as of the valuation date, and an additional $13 million that is expected to be earned by current workers as they continue working until retirement.

The state operating budget for fiscal years 2009-2011 provides $25,000 for the Task Force to continue its work in an effort to identify assistance for local governments in meeting your medical benefits and long-term-care costs liabilities.

Lost compensation due to furloughs (SB 6157)

Calculating compensation for public retirement purposes during the 2009-2011 fiscal biennium became effective July 26. In the Public Employees’ Retirement Systems, retirement benefits are calculated using a formula that includes years of service and final average compensation. This bill directs the Department of Retirement Systems (DRS) to include compensation that is lost during the 2009-2011 fiscal biennium as a result of reduced work hours, voluntary leave without pay, or temporary furloughs as long as the employer certifies the reduced compensation is due to the employer’s expenditure reduction efforts. The costs for this program will be funded consistent with normal pension funding policy, which means that employers and members will be assessed any increased costs to the retirement systems.

Gender equity

Governor Gregoire signed into law SB 5967 prohibiting a city, town, county or district from discriminating against any person on the basis of gender in the operation of community athletics programs for youth or adults. The Washington State Human Rights Commission (WSHRC) is responsible for enforcing non-discrimination laws, which will now include the policy requirements found in this legislation. A model policy and more information can be found on the WSHRC website at www.hum.wa.gov or by calling 1-800-233-3247.

Domestic partners

Proponents of Referendum 71, hoping to force a public vote to overturn the provisions of SB 5688 turned in an estimated 138,000 petition signatures. The minimum number of qualified signatures necessary to qualify for the November 3 statewide ballot is 120,577. This means the new law granting expanded rights to registered domestic partners won’t take effect July 26; but instead is delayed until petition signatures are examined to determine verification. The verification process could take several weeks. If the referendum is certified for the ballot, the measure would remain on hold until the vote is held in November.