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LEGISLATIVE REPORT #3 April 2, 2009

J. Pat Thompson
Deputy Director

Pension funding:
House and Senate budgets reject Governor’s P.U.C. proposal


GOOD NEWS, not so good news. The House and Senate budgets released this week rejected the Governor’s call to adopt the Projected Unit Cost Method.

As reported previously, your union opposed this method because it artificially lowered rates and would have jeopardized the health of our pension system.

However, both budgets also call for lowering the rates which will still put us at risk but not nearly as much. In order to save money and reduce rates, the House and Senate chose to alter the method in which they pay off the unfunded liability of Plan 1. Current policy would have Plan 1 paid off by June 30, 2024. The new method will extend that date and has a 10-year rolling period with changing rates. This is an improvement but not our first choice.  For more information go to  “What’s New at OSA” at http://osa.leg.wa.gov  More information will be in future reports.

Bid limit bills move


SB 5228
(Sponsored by Senators Haugen and Morton)

This bill is on its way to the Governor’s desk!  The measure simplifies the way counties are able to calculate the amount of construction work they can do in-house. This gives Counties more certainty when they choose to use our members instead of the costly and time consuming contracting-out option.

Members should contact the sponsors and thank them for their bi-partisan effort. The bill sailed through without a no vote.

More help needed


HB 1847 (Sponsored by Representative Haigh)

This is an omnibus bill that increases the amount of work that can be performed by county, city, utility and other special districts. The bill passed the House 89-6, and is now in the Senate. It has run into opposition from the private contractors and trade unions. Please contact your senators and ask them to support the bill. It simply allows local government more flexibility to use in-house labor on small projects, saving the tax payers time and money.

Retirement bills still alive

EHB 1547 (By request of the Select Committee on Pension Policy)

This bill would increase the duly related death benefit from $150,000 to $175,000. The bill passed the House 92-0 but hasn’t received a hearing in the Senate. 

HB 1722 (By request of the Select Committee on Pension Policy) 

This measure changes the default for new hires who fail to choose a retirement plan during their first 90 days from Plan 3 to Plan 2. Plan 3 contains more market risk and only employees who knowing agree to take that risk should be entered into Plan 3. 

HB 1548 (Sponsored by the Selected Committee on Pension Policy) 

This bill eliminates the requirement that members pay for military service credit if that service is during a period of war.  It also refunds past contributions for members who already did. 

Members are encouraged to contract their senators and ask them to support these retirement bills.

List of 2009 legislators

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