The bill modifies the paid family and medical leave rate calculation in Washington State without increasing the total premium rate above the established maximum of 1.20 percent. It amends existing laws to change how the total premium rate is set, specifically by requiring the commissioner to base the rate on an annual report from the office of actuarial services, rather than the previous method of calculating it based on past expenses and account balances. Additionally, the bill clarifies that the total premium rate must not exceed 1.20 percent and introduces a new requirement for the office of actuarial services to report on the financial condition of the family and medical leave insurance account, ensuring solvency and limiting fluctuations in premium rates.

Furthermore, the bill establishes a new goal for the family and medical leave insurance account to close each rate collection year with a four-month reserve by the end of 2030. It also mandates quarterly reporting on premium collections and program expenditures starting in October 2023. The effective date for the provisions of this act is set for January 1, 2028.

Statutes affected:
Original Bill: 50A.10.030, 50A.05.050
Substitute Bill: 50A.10.030, 50A.05.050
Second substitute: 50A.10.030, 50A.05.050