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LEGISLATIVE REPORT May 10, 1999


Regular session ends
The 1999 regular 105-day session ended on Sunday night, April 25. The session produced a Capital and Operating budget but little else. The Governor has called a special session for Monday, May 17 to deal with the unsettled Transportation budget. The 49-to-49 tie in the House of Representatives allowed the Republican Co-Speaker Clyde Ballard – Wenatchee) the ability to kill almost all worker friendly bills.

Retirement — bad news/good news
As reported in our last report, the Joint Committee on Pension Policy (JCPP) scuttled any chance of pension reform when their leadership hastily canceled a committee meeting when it became apparent that they actually might pass some improvements. The leadership (Helen Sommers (D-Seattle) and Don Carlson (R-Vancouver) became worried that they may lose control of a majority of their own committee and would pass bills without their blessing. A few brave souls on the committee have dared to tell these emperors that they have no clothes.

PERS II rate reduction confirmed

As mentioned in past reports, our goal was to improve the retirement plans using the rate reduction to fund the improvements. Given the complete lack of cooperation from the JCPP no improvements were passed, so rates are being reduced as of July 1. This is a change from the scheduled September 1 date. The new rates are as follows:

Current rate July 1999 rate Total reduction
Employee 4.65% 1.85% 2.8%
Employer 7.5% 4.6% 2.9%

What this means to you
If you are a PERS II employee you will receive a 2.8% increase in your paycheck as of July 1. We strongly encourage you to invest this money in a deferred compensation plan. If you are unfamiliar with these plans, contact your Human Resource/Personnel department.


Deferred comp = early retirement
Our legislative efforts have been centered around lowering the age 65 retirement age. We also said we'd be willing to pay our share of the cost. This may be our opportunity to do just that.

By putting aside the 2.8% reduction in a deferred compensation plan you may be able to save enough money to retire early and keep your PERS plan in place and use the deferred comp plan as a "bridge" until you are 65 years old.


Some examples and assumptions

If a person was 25 years old, earning $25,000 per year and set aside just 2.8% in deferred comp., they could have over $200,000 by age 60 to use as a bridge until their PERS plan began at age 65. If they decided to stay until age 65 they could have over $300,000 to supplement PERS benefits.

This assumes a 3% a year COLA and does not include step increases, re-classes or promotions. It also assumes an 8% per year market return, which is conservative.

SB 5152 — Deputy Prosecutors Collective Bargaining

Partisanship leadership at its worst

Our bill to restore collective bargaining rights to deputy prosecutors hit a snag when the House Republican leadership refused to allow a floor vote on our bill. This is despite the fact that no group opposed it. We worked hard to gain approval from the Washington Association of Prosecuting Attorneys (WAPA), District Court Judges Association, Superior Court Judges Association, Washington Association of Counties and the Association of Washington Cities.

The bill did move out of committee and was eligible for a floor vote, but Clyde Ballard (R, Wenatchee) refused to move the bill. Why? We just heard he opposed it based on "philosophy." Hopefully, the "rule of three" will prevail. (It takes three years to pass most bills.) There is a small hope that something may break during the special session.

Despite this setback, a lot of people worked very hard to get the bill this far. We did pick up several Republican votes and a special thanks should go out to Jim Clements (R, Yakima). As the co-chair of the Commerce and Labor Committee, he kept everyone at the table until an agreement was reached. The legislative hotline is 1-800-562-6000.


School employees salary and benefit
Because of some defections in the Republican ranks, the legislature was able to pass the Senate Democrats' budget. School employees will receive the following:

School Employees Salary and Benefits
Date COLA Medical
9/1/99 3% $388.02 per month (15.6% increase)
9/1/2000 3% $423.57 per month (9.2% increase)




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