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Bill #:  5916

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Addressing pension spiking and LEOFF1 medical costs

Companion bill #: No Companion Bill.

Senate - RULES - DEAD

Summary/AWC comments

The bill is in response to the pension spiking and medical benefits issues raised in a series of AP articles that ran last week. The bill does three things: requires employers to pay the actuarial value of compensation that exceeds 125% of the person's reportable compensation from the prior salary averaging period, where the increase is the result of payments for overtime, bonuses, cashouts of any form of leave, or lump-sum payments; allows an employer or employee to appeal the decision of a local disability board to the Director of Department of Retirement Services; and directs the local government self-insurance program of the Department of Enterprise Services to assist city, county, and fire district representatives to develop a voluntary local government risk pool for LEOFF Plan 1 retiree medical services.  

AWC generally supports these measures and testified in favor of the bill.  We do have concerns about the technical aspects in the bill of how to count excess compensation for the purposes of pension calculations.

Latest version of bill:

Link to WA Legislative bill page

Official title:

AN ACT Relating to administration of public retirement plans;


Bailey, Baumgartner, Hill, Holmquist Newbry, Ericksen, Schoesler, Hewitt, Mullet

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AWC Contacts

Analyst:  Jane Wall
Lobbyist:  Candice Bock

Issue Area

Personnel & Labor Relations

Additional Info:

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