April 27th 2024
Report on the November 15, 2011 Joint Committee on Pension Policy Meeting at the State Capitol
The Merger Study was discussed as an early subject. Committee members were disappointed at the lack of answers to good questions. Rep Bill Hinkle asked what the $75,000 goal of the study was and then heard that no goal was identified. It was also difficult to identify any leadership in charge to the study, making it almost impossible to ask for any information regarding the merger study. The group was told that “they”, meaning the legislature, would see the nearly finished study on time. Who “they” were was not answered very well, because the Actuary was not permitted to go beyond his mandate to go right by the directions given to him.
We did hear that pension funding in the way of contributions would be needed. There are about 200 people still working. One opinion is that the Legislature is more interested in funding LEOFF II than LEOFF I. The pending funding council did lower the pension funding assumption rate of earnings on pension investments from 8% in 2013-15, and intend to lower all the way down to 7.5%. Contributions will be a continued subject. The funding status of both LEOFF systems is unclear. 124% was one thought.
Some concern was some thinking of putting both systems into another entity or into the direction of the Joint Committee on Pension Policy. Governance of systems is an issue we may hear of in the December 2011 meeting after the study is sent to the Legislature. Costs and impacts are to be studied.
Former Senator John Carlson, again wants to see a future Defined Contribution pension system for all new workers. Senator Steve Conway sees changes later to the LEOFF I funding out to 2024, which is silent in law beyond that. He also believes a merger is not beyond reasonable due to community interest and not un-remarkable.