WA Cares paycheck deductions restart this week. Use our calculator to see how much you could pay [The Seattle Times]

Jun. 29—After an 18-month delay, premiums for Washington's fledgling long-term care insurance program will resume Saturday. Nearly all Washington workers will see a deduction on their next paycheck.

The 0.58% payroll deduction will fund the state's first-in-the-nation long-term care insurance program, which will provide a lifetime benefit of up to $36,500 to people who need help with daily activities like bathing, eating or mobility through many services, including in-home care, transportation or nursing home services.

The Washington Cares Fund originally started collecting premiums at the start of 2022, but was delayed after facing pressure from businesses, politicians and a threat of a ballot measure to gut the program. Gov. Jay Inslee signed two bills that halted collection, refunded money to workers and allowed additional people to opt out.

One of the biggest changes to the program has been allowing people close to retirement to become partially eligible for benefits. Originally, if someone born before 1968 retired within 10 years, they would eventually lose access to the benefit despite making contributions.

The median income earner making $50,100 will see a $24 monthly, or $288 annual, payroll deduction, unless they have already obtained an exemption approval letter by having private long-term care insurance. People who are self-employed are not subject to the deduction but can opt into the program.

The deadline to opt out by obtaining private long-term insurance was the end of 2022.

The Seattle Times developed an updated calculator to estimate how much you may pay in lifetime and annual premiums into the program and how your total contribution may compare with the benefit, which will be adjusted to inflation. The updated calculator also takes into account whether you are eligible for partial benefits, depending on when you were born.

To figure out your lifetime payment, input your annual income and the number of years you intend to work before retiring.

Be aware:

* The calculator assumes your salary won't change, you will be continuously employed and you will pay premiums through whatever year you retire.

* Most people will not require assistance with daily activities right at the age they retire, so the benefit may be higher by the time someone seeks it.

* If you move away from Washington, currently you will not be eligible for benefits.

* If you intend to retire before 2026, you will not be eligible for benefits, unless you were born before 1968.

* If you intend to retire before 2033, you may only have a limited period of eligibility for full benefits.

* If you were born before Jan. 1, 1968, you will be eligible for partial benefits — 10% of the total benefit for each year you contribute — starting in 2026 regardless of when you retire.

Currently, an individual has three ways to become eligible for the benefit.

If an individual contributes into the fund for at least 10 years, without a break of five or more years, they maintain access to the full benefit of $36,500 for life, if they reside in Washington. A year of contributions consists of 500 hours worked (quarter-time work). For 2023, working at least 500 hours will count as a full year of contributions.

An individual can also be eligible for the fund if they have worked and contributed into the fund at least three years in the past six years at the time they apply for benefits, meaning some people will become eligible for benefits starting in 2026. This "early access" option is intended to allow workers with care needs during their career or soon after leaving the workforce to quality for benefits.

If someone completely stops working in the next 10 years, they can seek the benefit within three years of when they stopped working. After that period, they will lose eligibility, unless they were born before 1968.

People born before 1968 are eligible for lifetime access to partial benefits or 10% of the full benefit for each year of contributions.

The fund will start accepting applications and paying out benefits July 1, 2026.

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