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LEGISLATIVE REPORT #5 May 9, 2003

J. Pat Thompson
Director of Legislation/Political Action

Pension Governance Bill
delivered to governor

It was never easy and the end game was as nerve racking as the beginning and the middle game, but SHB 1204 was delivered to Governor Gary Locke on the last day of the 105-day regular legislative session. The Governor has 20 days to sign the bill into law or veto it.

We had thought our path was cleared when the Senate passed the bill 45 to 3, but since the bill was amended it had to go back to the House for their concurrence. The amendment was a simple one that created three specific sub-committees to deal with public safety, education and state and local government issues.

The language change was requested by the Washington State Patrol and we agreed to it in exchange for their support of the bill (they had been opposed). We had thought the language was okayed by the House leadership so we weren’t concerned about their concurrence. Wrong! Helen Sommers (D-Seattle) and Chair of the Appropriations Committee requested two changes to the Senate version. Representative Sommers wanted to change the word “shall” to “may” when creating the sub-committees and create an Executive Committee of the new Select Committee. Neither idea is a problem for us, but the clock was running and any delay could kill the bill.

Luckily, we had both a Representative and a Senator making extra efforts for us. Representative Bill Fromhold (D-Vancouver) and Senator Don Carlson (R-Vancouver) worked out a deal with their leaderships to keep pension governance alive and moving.

Senator Carlson agreed to recede from his original amendment and offer a new one and that passed 48 to 1. Then on Saturday the House agreed to concur 79 to 19 and the bill was delivered to the Governor’s office on Sunday with only one day to spare.
Special session called
Governor Locke is expected to bring the lawmakers back into town May 12th for a special session. The House and the Senate could not come to an agreement on the budget and other related issues. Although the agenda is meant to be limited there’s no telling what could crop up.
Budgets
The final version of the House budget has restored the majority of local government backfill money to the Senate budget level with the exception of funding for public health. However, the House version does provide more for local government in terms of growth management related programs. Our goal is to bring the House budget up to the Senate’s version for public health while bringing the Senate’s budget up to the House’s version for growth management! The funding assistance to local libraries is preserved in both budgets.
Other retirement bills
HB 2180 – Would provide PERS I employees who retire between 9/1/03 and 2/29/04 an additional lump sum of $200.00 per month for a 2-year period. The funding for HB 2180 is included in the House budget, but not the Senate’s and will be part of the final budget negotiations.
HB 1207 – This bill would provide a $150,000 duty-related death benefit to survivors of PERS, SERS and TRS plan members who die as a result of injuries sustained in the course of employment. HB 1207 has been delivered to the Governor.

HB 1519 – Beneficiaries of a member killed in the course of employment would receive retirement benefits without actuarial reduction. This bill would apply retroactively to include any members killed on or after July 1, 2001. HB 1519 has been delivered to the Governor.

SHB 1829 – This bill provides that a person does not separate from service if the employee and employer verbally agree that the employee will resume employment with the same employer following termination. False claims would be subject to criminal penalties.

PERS Plan 1 retirees must be separated from employment for three full calendar months before re-employment; otherwise their pensions will be suspended if they work beyond 867 hours.
  • The employer must document a justifiable need to hire a retiree.
    The rehiring must be approved by specific executives, depending on the employer or under rules adopted by a local government employer.
  • The employer must retain records of the procedures followed and the decisions made in hiring the retiree and provide these records in the event of an audit.
  • The retiree must not have already provided a cumulative total of more than 1900 hours of service while in receipt of pension payments beyond an annual threshold of 867.
  • The retiree will stop receiving pension payments after the retiree has provided service for more than 1500 hours in a calendar year.
The Department of Retirement Systems and Employment Security shall provide notice to employers about the retirement changes and the possible unemployment compensation consequences of hiring retirees.

SHB 1829 has been delivered to the Governor.

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