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New Long Term Care Plan Coming for All WA Employees - One-time Opt-out Allowed...

In May 2019, Washington State enacted the Washington Long Term Care Services and Support Trust Act (LTSS) which requires employees in Washington State to pay a 0.58% tax into a Washington State Trust starting in 2022. The tax is paid entirely by employees through payroll deduction. For example, an employee making $50,000 in annual income would pay $290 toward this fund.

Long Term Care (LTC) Insurance is designed to pay for long-term care services received at home, in an assisted living facility or nursing home if you are unable to perform defined “Activities of Daily Living” or suffer from severe cognitive impairment.

The WA LTSS is a state operated program designed to provide up to $36,500 of LTC benefits per person that qualifies. The LTSS also requires care to be provided in WA and only for WA residents. In order to file a claim under the LTSS, employees must have contributed to the fund for 10 years with no more than a 5 year interruption or 3 out of the last 6 years (at the time of filing a claim).

It is clear by this definition that many employees who are close to retirement may be required to contribute taxes to this fund without ever being able to use the benefits. A one-time exemption from the LTSS may be applied for by employees who hold qualifying, private LTC insurance purchased before November 1, 2021. This exemption is a permanent exemption and is only being offered this one time.

The Washington Employment Security Department (ESD) determines the rates, definitions, and benefits for the LTC plan design going forward. So it is the ESD that will decide whether a policy will qualify or not for the payroll tax exemption. Because application for a LTC policy can take weeks or months, anyone looking to enact a private LTC plan should begin the application process immediately.

Here is the timeline of the implementation of the LTSS plan for SPU employees:

  • June 10, 2021: LTC/LTSS Introduction Webinar (CLICK HERE to view)

  • Summer 2021: SPU LTC education campaign (webinar, emails, resources, links, etc.)

  • October 1, 2021 to December 31, 2022: employees can apply for a permanent exemption to the LTSS, but only if they have private LTC insurance plan that has been purchased sometime before November 1, 2021

  • January 1, 2022 all Washington State W-2 employees age 18+ will have a payroll tax deduction of 0.58%

  • October 1, 2021 – December 31, 2022 apply for a permanent exemption of the payroll tax and eligibility for future benefits if you have purchased LTC Insurance before November 1, 2021

    • You must also present your ESD approval letter to Human Resources in order for us not to withhold the WA LTC taxes from your paychecks in 2022. To do this, please drop off your form in-person at HR (we will make a copy and have you keep the original) or use our secure HR Digital Drop Box to submit an electronic copy of your approval letter.

The University has worked with LTC Solutions, Inc. for many years to provide a private LTC plan insured by Unum. This plan is available to all University benefit-eligible employees and their family members. For more information, please see the links provided below. Health underwriting is required for all applicants other than new hires in their first 30 days of employment.


How to Opt-out of the WA LTC/LTSS Program

WA Cares Fund Page for LTC Exemption Applications Now Available

If you have private Long Term Care (LTC) insurance (such as the Unum policy available through SPU benefits) and are planning to apply for an exemption to the coming WA Long Term Care plan, please know that the exemption application process is now open.

Apply to the ESD for a WA LTC Cares Fund exemption

Please REVIEW THIS PAGE CAREFULLY(!) to determine if an exemption really is the right thing for you. As a reminder, a qualifying private LTC plan must be purchased before November 1, 2021 and the exemption must be approved by December 1, 2022 for this permanent exemption. Once an exemption request is approved, you cannot later join the WA LTC plan in any circumstances. Exemptions will ‘take effect’ the quarter after your application is approved by the ESD. So it may be that taxes will be taken from 2022 paychecks if this application/approval is not approved right away. SPU has no control over the ESD approval process.

In order to avoid the WA LTC program and its accompanying payroll tax, you must also present your ESD approval letter to Human Resources. To do this, please drop off your form in-person at HR (we will make a copy and have you keep the original) or

Submit your exemption letter to the HR Digital Drop Box

Please contact Human Resources with any questions.


Looking into a Private LTC Plan or Have Questions?

If you would like to review the details of the private LTC plan offering sponsored by the University or have questions that are not addressed above, please reach out to LTC Solutions directly or SPU Human Resources for help. Human Resources is generally available from 8am to 5pm M-F at (206) 281-2908 or by email at hr@spu.edu.


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