Blog

The Senate- and House-passed operating budgets include different assumptions about contributions toward unfunded pension liabilities; the Legislature has passed a policy bill that takes the Senate’s route

Washington’s public employee pension systems are well funded, with the exception of the Public Employees’ Retirement System (PERS) plan 1 and the Teachers’ Retirement System (TRS) plan 1. For years, the state has been making additional contributions toward the unfunded actuarial accrued liability (UAAL) in these two plans. Currently, the state pays a minimum contribution […]

Under Senate and House budget proposals, paid family and medical leave premium rate could increase to 0.82% or 0.83% next year

SSB 5286, which would make changes to the paid family and medical leave (PFML) rate structure, has been passed by both the Senate and the House. I described the bill here. The bill requires the premiums to be set to maintain a new three-month reserve. The legislative task force on paid family and medical leave […]

Will the operating budget repeal or reduce an already appropriated extra pension payment?

As part of the 2021–23 biennial budget, the Legislature appropriated $800.0 million from the general fund–state (GFS) to make an extra payment toward the unfunded actuarial accrued liability (UAAL) of the Teachers’ Retirement System (TRS) Plan 1. The payment is scheduled for June 30, 2023. In 2021, the Legislature had also transferred the balance of […]

With GFS funds, paid family and medical leave premium rate could decrease to 0.76% next year

Two weeks ago, the Senate Committee on Labor & Commerce approved SSB 5286, which would make changes to the paid family and medical leave (PFML) program premium rate structure. As I noted at the time, in the near term, premium rates under the bill would be higher than expected under current law in order to […]

As public pension unfunded liabilities are reduced, proposed bills would save funds by discontinuing extra payments once full funding is reached and provide COLAs for plan 1 retirees

Washington’s public pension plans are well funded. Overall, the funded ratio of all plans was 93% as of June 30, 2021 (the most recent data). All individual plans in Washington were over 90% funded, except for the Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) plans 1 (which have been closed to new […]

Paid family and medical leave premium rate could increase to 0.9% next year

SB 5286, which would make changes to the paid family and medical leave (PFML) rate structure, was approved by the Senate Labor & Commerce committee on Tuesday. The bill reflects the recommendations of the legislative task force on paid family and medical leave premiums, and it comes after multiple periods over the past year when […]

PFML task force votes on final rate structure recommendations

Today the Legislative Task Force on Paid Family and Medical Leave Insurance Premiums voted to recommend changes to the paid family and medical leave (PFML) program rate structure. At the end of last week’s meeting of the task force, it didn’t sound like members would be prepared to vote today. But they apparently had productive […]

Task force on paid family and medical leave premiums considers proposals to change the rate structure

The Legislative Task Force on Paid Family and Medical Leave Insurance Premiums met last Tuesday to discuss five proposed recommendations for changes to the paid family and medical leave (PFML) premium rate structure. Premium rates would be above 0.6% in all scenarios through at least 2027. Changes are necessary because the program has run deficits […]

Washington’s workers’ compensation benefit costs (the nation’s highest) are increasingly driven by supplemental pension fund COLAs

According to the National Academy of Social Insurance (NASI), Washington once again had the nation’s highest workers’ compensation benefit costs per covered worker in 2020. They were $824.53 in 2020 (up from $777.91 in 2019); the second-highest benefit costs per covered worker were $804.30 in Wyoming. (There is a two-year data lag.) As a percent […]

Some good news on long-term care program solvency

In 2020, after passage of Washington’s long-term care (LTC) program but before any premiums were assessed, Milliman prepared an actuarial study of the program for the state. It estimated that the statutory premium rate of 0.58% would “be insufficient to keep the program solvent for 75 years under the current law.” Given that and widespread […]