Two pieces of legislation recently passed that delay and modify the Long-Term Services and Supports Trust (LTSS) program.

Enacted in 2019, the Long-Term Services and Supports (LTSS) Trust program, also known as the WA Cares Fund, was created to provide a maximum lifetime benefit of up to $36,500 for approved long-term care services and supports to those who are eligible and who have been assessed as needing assistance with at least three activities of daily living. The program was to be funded by a .58 percent premium assessment on employee wages and was originally set to become effective on Jan. 1, 2022.

However, under recently passed legislation, implementation of the LTSS Trust program is now delayed for 18 months, and modifications have been made to allow for certain employee exemptions from the program.

Please note that unless you qualify for one of the exemptions listed below, you must have already purchased a qualifying plan by Nov. 1, 2021 to be exempted.

What does this mean for employers?

For employers, this means that premium assessments on employee wages will begin on July 1, 2023, and any premiums collected prior to that date must be refunded to employees within 120 days of the collection of the premium.

Additionally, some employees may qualify for an exemption from the LTSS Trust program and will notify employers if they are exempt as well as if an exemption is discontinued because they no longer meet the exemption criteria.

Employers may not deduct premiums after an employee notifies them that they have obtained an exemption from the LTSS Trust program. If an employee does not notify an employer of their exemption, they are not entitled to a refund of premiums already deducted. Finally, if an employee notifies an employer that they no longer qualify for an exemption, the employer must begin premium assessments on employee wages within 90 days of the employee failing to meet the exemption criteria.

What does this mean for employees?

For employees, this means that any premium assessed by an employer on your wages before July 1, 2023, must be refunded. In addition to the delayed implementation of the premium assessment, the date that benefits are available to employees is delayed as well. While originally program benefits would have been available Jan. 1, 2025, benefits for eligible beneficiaries will now be available beginning July 1, 2026.

To meet eligibility criteria to apply for benefits, the beneficiary must be at least 18 years old and a current resident of Washington. Additionally, to be eligible for the benefit you must have worked and contributed to the fund for:

• At least ten years at any point in your life without a break of five or more years within those ten years, or
• Three of the last six years at the time you apply for the benefit, and
• At least 500 hours per year during those years.

With the modifications to the program, individuals born before Jan. 1, 1968, who do not meet the full vesting requirements laid out above may receive partial benefits based on the number of years they have paid into the program.

Exemptions

Finally, the updated program establishes exemptions for employees under four circumstances. If an employee meets one of the following circumstances, they may apply to the Employment Security Department (ESD) beginning Jan. 1, 2023 to be exempted from the LTSS Trust program:

• If an employee is a veteran of the United States military who has been rated by the United States Department of Veterans Affairs as having a service-connected disability of at least 70 percent.
• If an employee is a spouse or registered domestic partner of an active-duty service member of the United States Armed Forces. In this case, an employee must notify ESD and their employer within 90 days of their spouse or registered domestic partner being discharged or separated from military service, or the dissolution of their marriage or registered domestic partnership.
• If an employee is working under a non-immigrant visa for temporary workers and employed by an employer in Washington. In this case, an employee must notify ESD and their employer within 90 days of their non-immigrant visa for temporary workers status being terminated and becoming a permanent resident or citizen employed in Washington.
• If an employee is employed by a Washington employer but has a permanent address and primary residence out of state. In this case, the employee must notify ESD and their employer within 90 days of establishing a permanent address within Washington as their primary residence.

Individuals who receive any of the exemptions listed above are ineligible from receiving program benefits unless the exemption is discontinued because they no longer meet the exemption criteria. If an employee no longer meets the exemption criteria, they must notify ESD and their employer, and premium assessments on an employee’s wages must begin within 90 days of no longer meeting the criteria.

Learn More

Please make sure to visit www.wacaresfund.wa.gov or register for one of the scheduled live webinars for more program information.

If you have specific LTSS program questions, you can contact WA Care program managers here.