HOUSE BILL REPORT

SSB 6003

BYSenate Committee on Education (originally sponsored by Senators Bailey, Rinehart, Gaspard, Murray, Warnke, Bauer, Patterson and Craswell)

Permitting school and educational service districts to provide employees with postretirement medical benefits for unused sick leave.

House Committe on Education

Majority Report:  Do pass.  (18)

      Signed by Representatives Peery, Chair; G. Fisher, Vice Chair; Brumsickle, Cole, Dorn, Fuhrman, Holland, Horn, Jones, P. King, Phillips, Pruitt, Rasmussen, Rayburn, Schoon, Valle, Walker and K. Wilson.

House Staff:Susan Patrick (786-7111)

AS PASSED HOUSE APRIL 4, 1989

BACKGROUND:

School district and educational service district boards of directors are required to establish attendance incentive programs for certificated and noncertificated employees.  Under attendance incentive programs, employees may choose to receive money for unused sick leave at a rate equal to one day's salary for every four days of sick leave in excess of 60 days.  When an employee retires, the employee is entitled to remuneration at a rate equivalent to one day's salary for each four days of accrued sick leave.

Approximately 55 school districts give employees the choice of receiving cash for their unused sick leave or receiving postretirement benefits.  A number of other school districts are reluctant to provide employees with this option without specific legislative authority.

SUMMARY:

School district and educational service district boards of directors may provide employees at retirement with the option of receiving cash for their unused sick leave at the current rate of one day's salary for every four days earned or, with equivalent funds, with the option of receiving postretirement medical benefits.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Kris Van Gorkom, Washington Association of School Administrators and Walter Ball, Association of Washington School Principals.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This program will allow retiring employees of school districts or educational service districts to continue receiving medical coverage by allowing the school district to invest the money the employee would have received from cashing out unused sick leave to pay for continuing medical benefits.  This also saves the retiring employee from paying taxes on this money.

House Committee - Testimony Against:      None Presented.