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Average workers’ compensation rates could increase by 4.9% in 2024

The Department of Labor & Industries is proposing a 4.9% increase in average workers’ compensation rates for next year. That would be the largest increase since 2011 (displacing this year’s increase of 4.8%). According to L&I, rates would increase for 283 of 325 risk classes. L&I notes, “In part, the rate increase is needed because […]

No paid family and medical leave deficits in sight, after cash influx from state general fund

The paid family and medical leave program has been in deficit several times since Spring 2022. (Our report about the program’s problems is here.) The monthly ending balance of the family and medical leave insurance (FMLI) account has been negative six times, including this April (see the chart below). At the April meeting of the […]

Washington’s average annual wage grew much slower in 2022 than in recent years

The Employment Security Department (ESD) reports that the state average annual wage was $84,167 in 2022. That is just 2.0% higher than the 2021 average wage. In 2020 and 2021, there were record high increases in the average wage (see the chart below). According to ESD, the growth in the average wage slowed because “[a] […]

State will save $2.473 billion over five years by reducing contributions to unfunded pension liabilities (even as the pension plans are still fully funded)

A major source of state savings throughout the budget outlook window is a policy change related to unfunded pension liabilities. The state has been making extra contributions towards unfunded actuarial accrued liabilities (UAAL) in the Public Employees’ Retirement System (PERS) plan 1 and the Teachers’ Retirement System (TRS) plan 1. There is a minimum contribution […]

Budget appropriates $200 million for a reserve for the paid family and medical leave program

Last month Gov. Inslee signed SSB 5286, which makes changes to the paid family and medical leave (PFML) program rate structure. Beginning with calendar year 2024, the PFML rate will be set to maintain a three-month reserve for the program. (See here for more about the bill.) The family and medical leave insurance (FMLI) account […]

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 […]