2007 Legislative Session
Other Years: 2010 - 2009 - 2008 - 2007 - 2006 - 2005 - 2004
The 2007 Legislative Session convened on January 8, 2007 and ended
on April 22, 2007 (105 days).
The LEOFF Plan 2 Board recommended four bills to the 2007 Legislature.
The Legislature passed two of the four bills recommended by the Board.
The Legislature also passed four Select Committe on Pension Policy
bills by the which were reviewed and endorsed by the LEOFF Plan 2 Board.
For more information about a bill, you can click on the Bill Title to see a
summary. Once bill numbers have been assigned, you will be able to click
on the Bill Number to link to the Legislature's Bill Information page for additional
information.
Bills Recommended by the LEOFF Plan 2 Retirement Board:
House
Bill
Senate
Bill
Bill Title HB 1678 SSB 5589 Retiree Health Care Insurance Access HB 1680 SB 5591 Service Credit Transfer Waiting Period - PASSED HB 1687 SB 5588 Fish and Wildlife Service Credit Transfer SHB 1679 SB 5590 Board Membership - PASSED
Bills Recommended by the Select Committee on Pension Policy
or the Office of the State Actuary:
House
Bill
Senate
Bill
Bill Title SHB 1261 SB 5172 Temporary Duty Disability - PASSED SHB 1264 SB 5176 Dual Membership - PASSED SHB 1266 SB 5177 $150,000 Death Benefit Inflation Adjustment - PASSED SHB 1044 SB 5014 Contribution Rate Process - PASSED *These four bills affect LEOFF Plan 2 and were reviewed and endorsed by the
LEOFF Plan 2 Retirement Board.
Other Bills of Interest:
- LEOFF Plan 2 Retirement Board Bill Summaries -
Retiree Health Care Insurance Access (HB 1678 - SB 5589)
Forty-six percent of LEOFF Plan 2 members lose access to health insurance
from their local government employers when they retire. The state of
Washington,through the Public Employee Benefits Board (PEBB) program,
provides state-wide coverage through private insurance plans to eligible groups
and individuals. This bill would provide all LEOFF Plan 2 retirees with the option
to purchase health insurance coverage through the State PEBB program.
LEOFF Plan 2 retirees would pay the full cost of the insurance premiums.
Enrolling LEOFF Plan 2 retirees who have a higher average entry age than the
rest of the PEBB Active/non-Medicare risk pool, increases costs for the entire
risk-pool. The Health Care Authority estimated that a similar proposal in 2005
would raise the premiums for all participants in the PEBB Active/non-Medicare
risk pool by $0.33 per month or approximately $574,000 per year.
The Federal 2006 Pension Protection Act allows public safety retirees, including
law enforcement and fire fighters, to exclude up to $3,000 of taxable pension
distributions from income annually, if used to pay for qualified health insurance
premiums. Public safety retirees in Washington State cannot currently take
advantage of this new federal tax provision because their health insurance
premiums are not paid via a deduction from pension distributions. PEBB
insurance premiums can be paid via a deduction from a LEOFF Plan 2
pension distribution.
STATUS:
HB 1678 did not make it out of the House Appropriations Committee
before the March 5 Fiscal Committee Cutoff.
SSB 5589 did not make it out of the Senate Rules Committee before
the March 14 House of Origin Cutoff.
Service Credit Transfer Waiting Period (HB 1680 - SB 5591)
Emergency Medical Technicians (EMTs) who have become members of LEOFF
Plan 2 due to legislation in 2004 & 2006 were provided with the option to transfer
their past PERS service credit to LEOFF Plan 2. However, the legislation
provided that the transfer of service was delayed until five years after the
member elects to transfer their service credit. This five-year waiting period
requirement has created unintended consequences for members who die or
become disabled before their service has transferred.
This bill would create an exception to the five-year waiting period for memberswho die or retire due to disability. The member's past PERS service would
be transferred to LEOFF Plan 2 and used to calculate their LEOFF Plan 2 pension.
STATUS:
HB 1680 was signed into law by the Governor on May 2, 2007.
The bill will be effective July 22, 2007. Chapter 304, Laws of 2007.
SB 5591 did not make it out of the Senate Ways & Means Committee
before the March 5 Fiscal Committee Cutoff.
Fish and Wildlife Service Credit Transfer (HB 1687 - SB 5588)
Enforcement Officers with the State Department of Fish & Wildlife became
members of LEOFF Plan 2 in 2003. Enforcement Officers were
previously members of the Public Employees' Retirement System (PERS).
Enforcement Officers were not provided with an option in 2003 to transfer
any past PERS service to LEOFF Plan 2. All other groups of employees
whose membership was changed from PERS to LEOFF Plan 2 in the past,
such as port police and fire fighters, higher education police and fire fighters,
and emergency medical technicians were provided with an option to transfer
their past LEOFF Plan 2 eligible service from PERS to LEOFF Plan 2.
This bill would provide Enforcement Officers at the State Department of Fish &
Wildlife with the opportunity to transfer their past service as Enforcement
Officers from PERS Plan 2 to LEOFF Plan 2. Transferring members would
pay the difference between the contribution rate they paid in PERS Plan 2 and
the contribution rate they would have paid in LEOFF Plan 2, plus interest.
STATUS:
HB 1687 did not make it out of the House Appropriations Committee
before the March 5 Fiscal Committee Cutoff.
SB 5588 did not make it out of the Senate Ways & Means Committee
before the March 5 Fiscal Committee Cutoff.
Board Membership (SHB 1679 - SB 5590)
Initiative 790, that created the LEOFF Plan 2 Retirement Board, provided that all
three employer representatives would serve four-year terms beginning in
July 2003; that the two legislators would serve four-year terms beginning in
July; and that beginning in July 2007 one of the law enforcement representatives
would be a retired member and one of the fire fighter representatives would be
a retired member. Employer representative positions were not staggered and all
three would expire simultaneously, creating the potential for loss of employer
representative continuity. There is also potential for a gap in legislative
representation,since legislative terms generally run from January through
December. Additionally, retirees comprise about 3.5% of the total LEOFF
Plan 2 population, but would represent 33% of the Board membership beginning
in July 2007.
This bill would amend when employer, legislative and retiree representatives join
the Board. Employer terms would be staggered so no more than one position
would expire in the same year. Legislative terms would be two years and run
from January through December. The one fire fighter and one law enforcement
positions scheduled to be filled by retirees beginning in July 2007, could be filled
by either active or retired members.
Note: SHB 1679 was passed by the Legislature with an amendment which requires
the Board to have one retired member on the Board beginning January 2008.
STATUS:
SHB 1679 was signed into law by the Governor on May 2, 2007.
The bill will be effective July 22, 2007. Chapter 303, Laws of 2007.
SB 5590 did not make it out of the Senate Ways & Means Committee
before the March 5 Fiscal Committee Cutoff.
- SCPP/OSA Bill Summaries-
Temporary Duty Disability (SHB 1261 - SB 5172)
Members who are temporarily disabled in the line-of-duty may only purchase
up to six months of service credit, and only if their employer provides a disability
leave supplement.
This bill developed by the Select Committee on Pension Policy provides consistency
across all the state-administered pension plans and allows LEOFF Plan 2
members to purchase up to twenty-four consecutive months of service credit
for each temporary duty disability.
The Office of the State Actuary has estimated the cost will be insufficient
to affect contribution rates.
STATUS:
SHB 1261 was signed into law by the Governor on April 17, 2007.
The bill will be effective July 22, 2007. Chapter 49, Laws of 2007.
SB 5172 did not make it out of the Senate Rules Committee before the
March 14 House of Origin cutoff.
Dual Membership (SHB 1264 - SB 5176)
Members who belong to more than one state-administered pension plan during
their public service career can combine their service credit in multiple plans, and
use salary earned while a member of one plan, for calculating their benefit from
another plan. However, certain inconsistencies exist in applying these laws.
This bill has been developed by the Select Committee on Pension Policy and addresses
the inconsistencies by changing the definition of base salary to include payments that
are reportable in both systems and were previously excluded, such as overtime.
This bill also removes the “maximum benefit rule” (a rule designed to protect Plan 1
benefit caps) for members with less than fifteen years of service in a capped plan and
service in an uncapped plan. In addition, the bill adds LEOFF Plan 2 to the list of
retirement plans whose members can combine service credit for improved benefits tied to
length of service. The Office of the State Actuaryhas estimated the cost will be
insufficient to affect contribution rates.
STATUS:
SHB 1264 was signed into law by the Governor on April 27, 2007.
The bill will be effective July 22, 2007. Chapter 207, Laws of 2007.
SB 5176 did not make it out of the Senate Rules Committee before the
March 14 House of Origin cutoff.
$150,000 Death Benefit Inflation Adjustment (SHB 1266 - SB 5177)
This bill developed by the Select Committee on Pension Policy expands the eligibility
for the $150,000 death benefit to include death from duty-related illness in all plans
where it is not already provided, and indexes the amount of the death benefit to
cumulative changes in the Consumer Price Index for Wage Earners and Clerical
Workers for Seattle-Tacoma-Bremerton, with a maximum increase of 3% per year.
The Office of the State Actuary has estimated the cost will be insufficient to affect
contribution rates. The bill also included other benefit provisions for PERS.
STATUS:
SHB 1266 was passed by the Legislature with amendments and signed into
law by the Governor on May 15, 2007. The amendments removed the annual
3% inflation adjustment.
SB 5177 did not make it out of the Senate Rules Committee before the
March 14 House of Origin cutoff.
Contribution Rate Process (SHB 1044 - SB 5014)
This bill developed by the Office of the State Actuary and coordinated with the
Pension Funding Council (PFC) amends the contribution rate adoption process
described in the actuarial funding chapter. Most significantly, it provides that
contribution rate-setting will occur two months earlier than it does now.
STATUS:
SHB 1044 did not make it out of the House Rules Committee before the
March 14 House of Origin cutoff.
SB 5014 was signed into law by the Governor on May 2, 2007.
The bill will be effective July 22, 2007. Chapter 280, Laws of 2007.
- Other Bills of Interest -
Extending Retirement Benefits to Domestic Partners (SB 5724)
The state administers a number of pension systems that provide retirement
benefits for state and local government employees, including LEOFF Plan 2.Generally, the bill allows domestic partners to be treated as spouses for pension
purposes. Spouses may currently receive survivor benefits upon the death of a
member. They may also collect refunds of accumulated contributions of deceased
members.
Domestic partner is defined in the bill. It is not gender specific. Domestic
partners must be eighteen or older, mentally competent to consent to contract when
the domestic partnership began, not related by blood closer than would bar marriage
in the state of Washington, and not married to anyone. Further, a domestic partnership
involves two persons in a "close personal" relationship who "are each other's sole
domestic partner and are responsible for each other's common welfare." Domestic
partners must share the same "regular and permanent residence," and be "jointly
responsible for basic living expenses" as defined in the act.
STATUS:
SB 5724 did not make it out of the Senate Ways and Means Committee
before the March 5 Fiscal Committee cutoff.
Survivor L&I Benefits (HB 1545)
Surviving spouses of LEOFF Plan 2 members who are killed in the line of duty
are entitled to receive a montly benefit of at least 60% of member's wages. This
benefit is paid for the lifetime of the survivor, or until remarriage. This bill removes
the remarriage restriction for survivors of LEOFF Plan 2 members. For remarriages
that occur after the effective date of the bill, the suvivor benefits will continue for life.
STATUS:
HB 1545 did not make it out of the House Commerce and Labor Committee
before the February 28 Policy Committee cutoff.
Occupational Disease Presumption for Fire Fighters (ESHB 1833 - SB 5741)
The presumption that, for fire fighters, certain diseases are occupationally related is extended
to include any heart problems experienced within 72 hours of exposure to smoke, fumes, or toxic
substances, or experienced within 24 hours of strenuous physical exertion due to "firefighting
activities"; and prostate cancer if diagnosed prior to the age of 50, colorectal cancer,
multiple myeloma, and testicular cancer if the worker has served as a fire fighter for ten or
more years and showed no evidence of cancer upon becoming a fire fighter.
When a determination that a fire fighter's disease is occupationally related is appealed to the
Board of Industrial Appeals or a court, and the decision allows the claim for benefits, the
opposing party must pay reasonable costs of the appeal to the fire fighter. If an order allowingbenefits is appealed and the fire fighter has been diagnosed as terminally ill, the benefits granted
to the fire fighter by the order must continue while the reconsideration is pending.
STATUS:
ESHB 1833 signed into law by the Governor on May 15, 2007. The legislative
intent in Section 1 of the bill was partially vetoed.
SB 5741 did not make it out of the Senate Committee on Labor, Commerce,
and Research & Development before the February 28 Policy Committee cutoff.
Port Fire Fighter Membership in LEOFF Plan 2 (HB 2134)
This bill provides LEOFF membership to any person who is a full-time employee of a port district,
whose duties include the suppression of fires, who is trained in rescue and fire fighting duties
prior to assuming fire suppression responsibilities, and who is required to receive annually
recurring instruction in rescue and fire fighting skills that includes live-fire drills; and Supervisory
fire fighter personnel of a port district who are trained in rescue and fire fighting duties, but are
not required to receive annually recurrent instruction in rescue and fire fighting skills.
STATUS:
HB 2134 did not make it out of the Senate before the April 13 Opposite Floor cutoff.
Using the Voluntary Compliance Revenue Generated Under the Streamlined
Sales and Use Tax Agreement (HB 2381)
This bill funds local law enforcement and firefighting activities and the law enforcement
officers'and firefighters' retirement system through streamlined sales and use tax
voluntary compliance revenue. The bill directs the State Treasurer, Beginning
January 1, 2009 and every calendar quarter thereafter, to transfer state voluntary compliance
revenue, in excess of amounts needed for local government mitigation, to the law
enforcement officers' and firefighters' retirement system plan 2 fund, and to local
jurisdictions for public safety purposes. The transfer would be divided equally between
these two purposes. Money for public safety purposes is apportioned amongst
local jurisdictions based on the number of law enforcement officers and firefighters
employed within the local jurisdiction as a percentage of the total number of officers
and firefighters employed in all local jurisdictions. No more than $12.5 million for both
purposes would be transferred during a calendar quarter.
STATUS:
HB 2381 had a Public Hearing in the House Finance Committee on March 28, 2007 but
did not make it out of committee before the Policy Committee cutoff.