wa-law.org > bill > 2025-26 > SB 5927 > Original Bill
The legislature finds that:
Long-term stability of the state's workers' compensation program is of paramount importance for employees, employers, and consumers. Stability facilitates employers' ability to accurately plan for the future and provides all Washingtonians confidence in program health;
Between 2012 and 2019, average annual premium rate changes ranged from a 4.9 percent decrease to an increase of 2.7 percent. The "break even" rate regularly indicated that the program could operate below the proposed annual rate. The proposed rate often exceeded what was necessary to cover the cost of claims;
Since 2020, premium rates have cumulatively increased by 17.6 percent. With the upcoming 4.9 percent proposed rate change that increase will now be over 22 percent. Meanwhile, the "break even" rate for each of the last five years has exceeded the proposed annual rate. In short, the proposed rate has been lower than necessary to cover the cost of claims;
The state's average monthly wage, the metric used as the basis for cost-of-living adjustments for time loss and pensions, remains a volatile metric. In the mid-2010s one could expect an annual change ranging from two percent to four percent. Since 2019, the annual change in average monthly wage has varied greatly, seeing increases of two percent, 5.5 percent, 7.5 percent, and even 10.1 percent; and
An available option to address stability is to place a cap on cost-of-living adjustments for certain workers' compensation benefits.
Therefore, it is the intent of the legislature to promote program stability through the implementation of a three percent cost-of-living adjustment cap solely for pension calculations.
Where such a surviving spouse has remarried, or where any such child of such worker, whether living or deceased, is not in the legal custody of such worker or such surviving spouse there shall be paid for the benefit of and on account of each such child a sum equal to two percent of such average monthly wage up to a maximum of five such children in addition to any payments theretofore paid under compensation schedules in effect prior to July 1, 1971, for the benefit of and on account of each such child. In the case of any child or children of a deceased worker not leaving a surviving spouse or where the surviving spouse has later died, there shall be paid for the benefit of and on account of each such child a sum equal to two percent of such average monthly wage up to a maximum of five such children in addition to any payments theretofore paid under such schedules for the benefit of and on account of each such child.
If the character of the injury or occupational disease is such as to render the worker so physically helpless as to require the hiring of the services of an attendant, the department shall make monthly payments to such attendant for such services as long as such requirement continues but such payments shall not obtain or be operative while the worker is receiving care under or pursuant to the provisions of this title except for care granted at the discretion of the supervisor pursuant to RCW 51.36.010: PROVIDED, That such payments shall not be considered compensation nor shall they be subject to any limitation upon total compensation payments.
No part of such additional payments shall be payable from the accident fund.
The director shall pay monthly from the supplemental pension fund such an amount as will, when added to the compensation theretofore paid under compensation schedules in effect prior to July 1, 1971, equal the amounts hereinabove specified.
In cases where money has been or shall be advanced to any such person from the pension reserve, the additional amount to be paid under this section shall be reduced by the amount of monthly pension which was or is predicated upon such advanced portion of the pension reserve.
In addition to the adjustment under subsection (1) of this section, further adjustments shall be made beginning July 1, 2012, and on each July 1st thereafterthrough June 30, 2026; the adjustment shall be the percentage change in the average monthly wage in the state under RCW 51.08.018 for the preceding calendar year, rounded to the nearest whole cent. Further adjustments made beginning July 1, 2026, shall be the percentage change in the average monthly wage in the state under RCW 51.08.018 for the preceding calendar year, not to exceed three percent, rounded to the nearest whole cent.
Compensation due for July 1, 2011, through June 30, 2012, must be paid based on the average monthly wage in the state as computed under RCW 51.08.018 on July 1, 2010.
The compensation or death benefits payable pursuant to the provisions of this chapter for temporary total disability, permanent total disability, or death arising out of injuries or occupational diseases shall be adjusted as follows:
On July 1, 1982, there shall be an adjustment for those whose right to compensation was established on or after July 1, 1971, and before July 1, 1982. The adjustment shall be determined by multiplying the amount of compensation to which they are entitled by a fraction, the denominator of which shall be the average monthly wage in the state under RCW 51.08.018 for the fiscal year in which such person's right to compensation was established, and the numerator of which shall be the average monthly wage in the state under RCW 51.08.018 on July 1, 1982.
In addition to the adjustment established by subsection (1) of this section, there shall be another adjustment on July 1, 1983, for those whose right to compensation was established on or after July 1, 1971, and before July 1983, which shall be determined by multiplying the amount of compensation to which they are entitled by a fraction, the denominator of which shall be the average monthly wage in the state under RCW 51.08.018 for the fiscal year in which such person's right to compensation was established, and the numerator of which shall be the average monthly wage in the state under RCW 51.08.018 on July 1, 1983.
In addition to the adjustments under subsections (1) and (2) of this section, further adjustments shall be made beginning on July 1, 1984, and on each July 1st thereafter through July 1, 2010, for those whose right to compensation was established on or after July 1, 1971. The adjustment shall be determined by multiplying the amount of compensation to which they are entitled by a fraction, the denominator of which shall be the average monthly wage in the state under RCW 51.08.018 for the fiscal year in which such person's right to compensation was established, and the numerator of which shall be the average monthly wage in the state under RCW 51.08.018 on July 1st of the year in which the adjustment is being made. The department or self-insurer shall adjust the resulting compensation rate to the nearest whole cent, not to exceed the average monthly wage in the state as computed under RCW 51.08.018.
In addition to the adjustments under subsections (1), (2), and (3) of this section, for those whose right to compensation was established on or after July 1, 1971, further adjustments shall be made beginning July 1, 2012, and on each July 1st thereafter through June 30, 2026, and the adjustment shall be the percentage change in the average monthly wage in the state under RCW 51.08.018 for the preceding calendar year, rounded to the nearest whole cent. Further adjustments made beginning July 1, 2026, shall be the percentage change in the average monthly wage in the state under RCW 51.08.018 for the preceding calendar year, not to exceed three percent, rounded to the nearest whole cent.
For claims whose right to compensation was established on or after July 1, 2011, no adjustment shall be made under subsection (4) of this section until the second July 1st following the date of injury or occupational disease manifestation.