Council 2

DISAPPOINTING AS it is, the State Legislature deferred action on Council 2’s priority pension issues, but they are likely to form part of a focus on pension issues in the 2007 session.
The two priority issues are:

The “Rule-of-90,” which would allow anyone whose age plus years of service equal 90 to retire without a penalty, and

“Gain-sharing,” which refers to a benefit for Plans 1 and 3 that was based on extraordinary stock market returns. When the market returns more than 10 percent the extra money is split between the system and Plan I and Plan III employees.

“We will again be working through the Select Committee on Pension Policy,” says Council 2 Deputy Director Pat Thompson, “but the key focus should be on the governor’s office as well as the House and Senate leadership.”

Members urged to call governor

It is critical that Council 2 members contact Gov. Christine Gregoire and ask her to support the Rule-of-90, says Council 2 Deputy Director Pat Thompson.

“Without pressure and lots of it, we will lose this opportunity. It is up to us,” he says.

Contact Gregoire at 1-800-562-6000 (360-902-4111) or www.governor.wa.gov/contact/govemail.htm.

The message: Support the “Rule-of-90.”

In addition to these issues, Thompson says he expects major decisions to be taken on the state retirement system generally in the 2007 session. Gov. Chris Gregoire has indicated pensions are a major priority.

“We are very concerned that their first choice will be to repeal ‘gain-sharing’ and offer nothing in return,” Thompson adds.
The system is sound, but the legislature needs to pay close attention to future obligations, Thompson says.

Over the past four years lawmakers skipped $350 million in recommended payments and fell back $147 million in “gain-sharing.”

The gain-sharing measure still has not been repealed.

Gregoire is preparing a proposal that she can include in the new budget she will unveil later this year. She is hoping that the Legislature will also address pension issues in general in the next session.

The Legislature has agreed to set aside $350 million toward next biennium’s pension obligation, now estimated at $600 million.

The state budget office has estimated the deficit will grow to more than $700 million in the next two years, so the amount set aside will help lawmakers in their effort to try to keep current.

DISAPPOINTING AS it is, the State Legislature deferred action on Council 2’s priority pension issues, but they are likely to form part of a focus on pension issues in the 2007 session. The two priority issues are:

The “Rule-of-90,” which would allow anyone whose age plus years of service equal 90 to retire without a penalty, and

“Gain-sharing,” which refers to a benefit for Plans 1 and 3 that was based on extraordinary stock market returns. When the market returns more than 10 percent the extra money is split between the system and Plan I and Plan III employees.

“We will again be working through the Select Committee on Pension Policy,” says Council 2 Deputy Director Pat Thompson, “but the key focus should be on the governor’s office as well as the House and Senate leadership.”

DISAPPOINTING AS it is, the State Legislature deferred action on Council 2’s priority pension issues, but they are likely to form part of a focus on pension issues in the 2007 session.
The two priority issues are: