November 23rd 2024

12/17/2010 Pension Policy Meeting

We have a few issues of importance to share with you.

First and foremost is the news about the Governor suggesting that the older plans 1 automatic COLA’s should be cut back to save the state money. As it was reported, people in LEOFF I would and should be concerned. Mark Curtis, VP asked around and discovered that LEOFF I was not one of the intended plans to suffer a COLA loss, so said a key legislative staffer. This statement was also confirmed by DRS. It would be wise to keep ears and eyes open on the subject and not raise attention from legislative people in the government unless we see a change. We should not, however, assume we are in safe harbor, because, conversely, another government employee heard that NO body or money is safe; everything is on the table.

The pension policy board was more interested in saving the huge Public Employees Plan 1 system and intends to advance legislation in 2011 to do that. No other pension plan will see help in this upcoming Legislative session. A few insiders say this session could run into June 2011.

State Treasurer James McIntire had proposed a State Constitutional Amendment this last month to force the Legislature to fund all pensions at least 80 percent. The idea has its flaws. Legislators are not happy with being forced to do what they believe is a good faith effort to make law on their own accord, and so the idea was shelved for this next session. The proposed Amendment had an oddity that made some of us uncomfortable. LEOFF I was culled out of the pension-funding proposal, as were the Volunteer Firefighter plan, the Reserve Police Plan and two Judge’s plans. We were in good company, except the exclusion from the proposal offered poor reason to not include us.

We are also told that we will see a considerable issue come up that will cause trouble in two years, that of un-funded LEOFF I liabilities. We will still be political for a long time.

President Bob Monize
LEOFF I Coalition

Please check our LEOFF I web site daily for updated information.