Blog

Paid family and medical leave rate structure changed again, but it does not improve program solvency

The Legislature has passed 2SSB 5292. If signed by Gov. Ferguson, the bill would change the paid family and medical leave (PFML) tax rate-setting formula. However, more will need to be done to address program solvency. Initially, the tax rate for the program was set at 0.4%. Beginning in 2021, the rate was set based […]

What will the Legislature do with the $4 billion in LEOFF 1?

The House and Senate have each passed different versions of HB 2034, the bill that would terminate the Law Enforcement Officers’ and Firefighters’ retirement system Plan 1 (LEOFF 1) and create a restated LEOFF defined benefit retirement fund. This would allow the state to extract expected surplus funds in the plan. The two versions differ […]

House-passed bill would make LEOFF 1 surplus easily accessible to budget writers

Last Friday, the House passed E2SHB 2034. The bill would terminate the Law Enforcement Officers’ and Firefighters’ retirement system Plan 1 (LEOFF 1), which has been closed to new members since 1977, and create a restated LEOFF defined benefit retirement fund. As of June 30, 2024, LEOFF 1 was estimated to be 160% funded. HB […]

Report describes options for LEOFF 1 surplus; state treasurer has concerns

There is a substantial expected surplus in the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System Plan 1. During the 2025 legislative session, there were several proposals to extract funds for use in the state operating budget. Ultimately, the enacted 2025–27 operating budget required the Select Committee on Pension Policy (SCPP) to “study and […]

New brief: SJR 8201: Investment Flexibility for Long-Term Care Funds

SJR 8201 would amend the state constitution to allow money in the long-term services and supports (LTSS) trust account to be invested as authorized by law. Effectively, the amendment would allow the funds to be invested in a broader range of vehicles, including stocks. Currently, the funds may only be invested in fixed-income securities. Over […]

Paid family and medical leave premium rate is projected to increase to 1.13% in 2026; solvency issues loom

The paid family and medical leave (PFML) premium rate is projected to increase to 1.13% in 2026. (The actual rate will be based on the account balance on Sept. 30, so this is not yet final.) Further, a presentation by the PFML actuary to the PFML advisory committee yesterday shows that the financial outlook for […]

Average workers’ compensation rates could increase by 4.9% in 2026

The Department of Labor & Industries (L&I) proposes increasing the average workers’ compensation rate by 4.9% for 2026. Under the proposal, rates would increase for 293 of 327 risk classes. Average rates have increased every year since 2020; however, the adopted rates have been lower than the break-even rate since 2019. In other words, L&I […]

State Supreme Court: Job applicants can sue businesses that don’t post salary ranges in job postings, even if they aren’t applying in good faith

The Washington Equal Pay and Opportunities Act (EPOA) requires businesses with at least 15 employees to include the wage scale and salary range for a position in all job postings. Under the statute, “A job applicant or employee may bring a civil action against an employer for a violation of this section. A prevailing job […]

Washington’s workers’ compensation benefit costs remain the highest in the country; supplemental pension fund growth continues to increase

According to the National Academy of Social Insurance (NASI), Washington’s workers’ compensation benefit costs per covered worker are still the highest in the country. The most recent report was released in November 2024, and it covers data from 2022. In 2022, benefit costs in Washington were $854.28 per covered worker (up from $844.67 in 2021, […]

State average wage increases by 6.8%; various state benefits and the UI taxable wage base will increase correspondingly

The Employment Security Department (ESD) reports that Washington’s average annual wage was $95,160 in 2024—an increase of 6.8% over 2023. According to ESD, “The increase was driven by a 0.7% increase in employment and an 7.5% increase in total wages and salaries, which grew by nearly $23.5 billion in 2024.” The state average wage is […]