LEGISLATURE ADOPTS A NEW OPTIONAL RETIREMENT SYSTEM;
PERS III, AN ALTERNATIVE TO PERS II, BEGINS IN 2002
About 2,000 WSU employees could opt to participate in a new retirement program approved by the Washington Legislature that has split defined benefit/defined contribution provisions. Engrossed Substitute Senate Bill 6530, creates a new optional Public Employees Retirement System (PERS 3) for PERS 2 employees. It would allow existing PERS 2 employees to transfer to the new "PERS 3" between March 2002, and September 2002.
The bill, unanimously approved by the Legislature with House amendments, is awaiting the governor`s signature. The same legislation also lowers the retirement age for members of the Law Enforcement Officer and Fire Fighters (LEOFF) retirement system from age 55 to age 53.
In the works for years, the bill`s supporters this included former WSU Vice President Warren Bishop, representing the Coalition of Retired Higher Education Employees.
The current PERS 2 plan is a "defined benefit pension plan," where the employee`s retirement benefit is two percent of the final average salary times years of service. The contribution rate is divided equally between the employer and the employee.
The new optional PERS 3 system will be a hybrid. It will be half "defined benefit," funded exclusively from the employer contribution. This will be calclulated by 1 percent of the final average salary times the number years of service. The remainder of PERS 3 will be a "defined contribution" system funded by the employee contribution. The employee contribution choices range from 5 percent of salary to 15 percent of salary.
The bill provides that 110 percent of employee`s accumulated contributions would transfer from PERS II to PERS III.
TIAA-CREF employees are not affected.
Lawmakers Debate Response to I-695 Ruling; Budget Negotiations Slowed. Budget negotiations between House Republican and Democratic leaders were stymied this week by a King County Superior Court Judge`s ruling that I-695 was unconstitutional. By all reports, budget talks were progressing slowly even before the decision. There appears to be a consensus that the Legislature will pass bills guaranteeing that the $30 license tab fee will continue. The initiative`s requirement that all fees must be approved by a public vote will probably not be addressed this session.
The Senate`s revised budget, 2SSB 6404, remains the only budget that has passed a chamber. The state transportation budget is another barrier to adjournment. Many are predicting that the session will last for another week or more.
Waiver Legislation Delivered to Governor:
Outside of the budget, the most significant bill for WSU was passage of Senate Bill 6010. Unanimously approved by the House and Senate, SB 6010 was delivered to the governor on March 9. Sponsored by Sen. Jim West, R-Spokane, SB 6010 gave the state`s public baccalaureate institutions flexibility to waive all or any portion of tuition for students. Last year, the Legislature temporarily granted this; SB 6010 makes that authority permanent. For WSU, this means we can fully implement our waiver program as part of a targeted enrollment strategy designed to increase student quality, student enrollment, and total tuition revenue. Passage of SB 6010 also enables the Washington National Guard partnership with WSU to provide tuition waivers to Guard members.
HB 2870, opposed by WSU and held in the House Higher Education Committee, would have revised the employee waivers to allow employees to pay for credits over six hours, but prohibit the institution from counting those credits in enrollment figures. SB 6298, which died in the Senate Rules committee, would have given space-available waivers to school district and education service district employees. SSB 6297, which also died in Senate Rules, was supported by the Council of Faculty Representatives. It would have allowed waivers for part-time graduate service appointments.
Legislators from districts with large military populations were successful in passing SSB 5330. Under this bill, all active military personnel stationed in the state are considered residents, and therefore, pay in-state tuition. HB 2904 added Clackamas County, Oregon to a pilot project allowing Oregon residents to pay in-state tuition at border institutions.
Faculty Collective Bargaining: Faculty at the public four-year institutions wrangled over SB 6346, which would have granted collective bargaining rights to academic personnel and non-classified staff. It died in Senate Ways & Means with opposition from the WSU Faculty Senate.
K-12 education reform: Supported by Gov. Gary Locke, the House and Senate passed EHB 2760 on the last day of the regular session. The bill creates and gives rule making authority to the Professional Educator Standards Board to serve as the sole advisory body to the State Board of Education on issues related to educator certification and to develop and implement tests for newly certified educators. Of the twenty board members, two will represent public four-year institutions. The Board will also make recommendations on alternative certification. WSU`s college of education dean Judy Mitchell participated in discussions.
High tech demands: The growing pressure on lawmakers to respond to the high technology industry`s workforce needs resulted in other bills, most requiring studies. The American Electronics Association legislation was unsuccessful but other bills did pass. HB 2375, delivered to the governor on March 7, establishes a work group to develop definitions, standards, strategies, and a financial assessment of information and technology literacy as part of a baccalaureate institution`s accountability program. With the passage of EHB 2952, distance education will also be studied during the interim.
This update is shared by fax and electronic mail to friends of Washington State University as state government developments occur regarding the 2000 Regular and Special Legislative Sessions. Contact Michelle Delaney, 509/335-9681 to receive a copy. Call Larry Ganders at 360/956-2165 or send him a short pager message via e-mail to 3607863527@page.metrocall.com. From WSU Campuses, Dial 8-2165. e-mail: Ganders@energy.wsu.edu. Call Jane Yung in Olympia at 360/956-2164 or page her at 360-956-8500. For bill status and other info including archives from previous years, visit our web page at www.olympia.wsu.edu.
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