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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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