SSB 5894, which would make changes to the firefighters’ pension levy, passed the Senate on March 11.

Approximately 44 cities and towns are eligible to impose the levy under RCW 41.16.060. Municipalities may impose a pension levy rate up to $0.225 per $1,000 of assessed value with a maximum levy of $3.825 minus any collection for fire and or library special districts.

SSB 5894 makes the following changes:

• Clarifies that cities may continue to impose the levy even if all of the pre-LEOFF beneficiaries are deceased; and
• Requires that, if the levy is continued, all of the revenue must be used to cover medical benefits for LEOFF 1 retirees.

Current law allows municipalities to use the levy for other municipal purposes if an actuarial report states the funding is not needed. Under the proposed changes, cities would need to direct the funds to a LEOFF 1 medical benefits fund and would need to stop levying the tax once there were no longer any eligible costs.

Dates to remember

The bill is scheduled for a hearing on Monday, March 18 in the House Appropriations Committee at 3:30 pm.