December 4th 2024
LEOFF I Coalition Newsletter: 2/20/03
By Mark Curtis
We thought we would try to create a newsletter of the things
that may be of value from a few prior Executive Board meeting
minutes, and continue to do so as time permits, and goes by.
We
have received word that the Governor announced that his party
wants to allow the state pensions to invest pension funds in
new State start up companies ,to stimulate the state economy.
The concept is unnerving, knowing that 7 of 10 start up companies
are thought to tend to fail. We are aware that the State Investment
Board has the legislated right to decide our investments. They
have a Board that includes pension people for input, but no LEOFF
1 people. That Board is a part of the system affected by the
Governor. We already lost a huge amount of the Commingled Trust
Fund of all systems. Our system of plan 1 should not take another big hit.
Retiring
State Sen. Hochstatter recently spoke on the Carlson radio talk
show. He expressed his view that the LEOFF 1 surplus
was a well earned thing for the legislature. But, State Treasurer
Mike Murphy called to the show and disputed that purpose for those
surplus funds. Murphy sees those funds
as intended for the pensioners,not to be stolen. Those are important
and big powerful words.
The Assoc, of Wash.
Cities will be introducing a bill to control the LEOFF 1 surplus,
over a buffer of $300 million. The purpose
would be to let the Cities and Towns to be relieved of their
unfunded liabilities of lawful responsibilities to pay the medical
and long term care costs for plan 1 pensioners and actives. This
is really what the State tried to raid several years ago. As
before, the LEOFF 1 Coalition will oppose this bill. We have
not yet seen their Cities bill.
The AWC also supports SB 5099,
a governance of pensions, and sees it as advisory only to the
legislature.
It would weight
to employers and known as the “Select Committee On Pension
Policy”. The concept seems too similar to what already
exists that has not been good for us. A difference is that this
Board would have participation of some pensioners and active
public service people. Who would serve is unknown among all the
systems included. Inclusion of a LEOFF 1 person does not seem
likely. The Coalition opposes this bill to include us in this
group for defined benefit systems, as the word never appeared
in our law at inception. Our view is that we are not a “defined
benefit”, and should be a stand alone pension system to
protect our system.
Another AWC, Assoc. of County Officials, and
also the Wash. State Assoc. of Counties propose a joint legislative
change in
State Interest Arbitration on law. The changes would mandate
arbitrators use the implicit price deflator for cost of living
adjustments and amend the binding interest arbitration statutes
to require arbitrators to consider a jurisdiction’s ability
to pay, and eliminate comparables outside the State for all interest
arbitration. If successful, the employers would be gutting our
important lawful benefit of a COLA..
Adding up the above comments
does tend to lead to the conclusion that the State and employers
have some connection to team play
and go after the big money to save the next 2 years budget from
very tough decisions. The entire Commingled Trust Fund of most
Pension systems is potentially at risk from raiding. We are staring
at a well planned attack on us.
The State Investment Board announced
at a Pension Funding Council meeting that the LEOFF 1 surplus
was just barely fully funded.
Contributions were put on holiday and our principle diminished,
plus the 8% Assumption rate created up from 71/2 %, occurred
just before a major economic downturn. We had $1.3 Billion at
that juncture. The State uses old figures to report experience
and surplus. Few know the actual guestimate of surplus, if any.
We do know that the Commingled Trust Fund tumbled from a high
of $42 Billion TO $37 Billion . The State Actuary retired and
a Mathew M. Smith is the replacement.
Our own Bob Allen cautioned
us about an Investment Board consideration to buy out a KKR broker
firm and become a broker at quite some
risk. We evaluated that and opposed the move via letter concerning
KKR firm. The State since declined to do the buy out. That particular
Board has authority to invest for us, does so by board, and is
not required to respond to us nor take our suggestion. Why they
decided on caution is unknown, but appreciated.
We congratulated
Whatcom Co. Sheriff Dale Brandlan with his election as State
of Wash. Senator to Olympia. He is LEOFF 1
! Also, we endorsed the LEOFF 2 Initiative that passed into law,
a good thing
The Coalition attended a Disability Board meeting
in Shelton, WA., TO OBSERVE. It was learned that their new
proposed “policies” are
a copy of an AWC influenced Olympia City set of policies for
a board. An effort to learn how widely this effort to influence
all boards did not materialize. We would ask plan 1 people to
pay attention to any move afoot to restrict your traditional
benefits, resist, and notify the Coalition.
An Annual Report to
all known LEOFF 1 people has been readied and likely will be
printed and mailed prior to this newsletter
printed on our web site.
An effort is in progress in Eastern Wash,
seeking interest in forming a new group of those nonaffiliated
as yet in a standing
group already a member of the LEOFF 1 Coalition. An organizational
meeting is being explored to occur in the greater Yakima area.
The concept is for an Eastern area to gain larger input into
the Coalition. Any help we can get in this long legislative session
will be appreciated.
Fundraising is always necessary, given the
unknown raid or attacks we may be facing to protect our benefits.
Several
Everett retired
Firefighters offered an unusual addition to their already generous
contributions. Rich (and Mrs. Greenshield) , and Dennis Somerville
had considerable need to utilize the crude and doorless out house
of fellow LEOFF 1 recreational area neighbors of Jim & Mike
Perin, and Mark Curtis. The folks installed a “can” can
on the wall, and deposited a total of $1.69 in four months. The
US coinage was to be used for either a better ply of TP, or to
donate to the LEOFF 1 savings account. They accessed the old
biffy via a ladder they hauled over to the highrise john. Evidence
was found of the ladder in the mud, plus, a little birdie gave
a hint our way. The quarters were for $.25 cents per visit, but
some pennies were deposited. To end this potty talk, we understand
the outhouse will be soon demolished. But, the new contributions
are appreciated. Firemen and their ladders, cops and their donuts,
legislators and their hands in the money pot, all mix to describe
a strange fiction of story. Greenshield and Sommerville went
on to build their own $3000 outhouse, where Rich’s wife
is more willing to visit and be less chagrined, ( noted by Ron
Larsen.) This story screamed to be told, and now, is.
As of 12/12/02
Executive Board meeting, our financial health is;
Checking is $32,525.12
CD #1 is $41,584.83
CD #2 is $41,414.57
CD#3 is $41,123.73
Total Assets are $156,700.33
And now $1.69 more into the savings of $52.02 first started by
Liz Day.