County and City Employee
WASHINGTON STATE COUNCIL OF COUNTY AND CITY EMPLOYEES  -  AFSCME AFL-CIO  - COUNCIL 2
County and City Employees
WASHINGTON STATE COUNCIL OF COUNTY AND CITY EMPLOYEES - COUNCIL 2 - AFSCME AFL-CIO
...

LEGISLATIVE ALERT: Your pensions are at risk.

by Pat Thompson, Council 2 Deputy Director on April 8, 2013

 Please Contact Your Senator.

 As feared, the “Plan 4” proposal that failed to make it out of the Senate on time was resurrected as part of the Senate budget.  SB 5851 could be voted on within the next few days and it’s critical that you call your Senator and ask them to VOTE NO on this poor policy.

As reported earlier, SB 5851 would create a new option for current and new employees.  Those choosing this option would enter a 401-K pension plan that would rely solely on the stock market returns.  Although this plan is “voluntary” it directly harms Plan 2 and 3 because it removes new entrants and shifts the cost to current Plan members. It also harms the State Investment Board’s ability to invest in stable, long term assets which will lower the returns and raise rates for everyone.

All Senators need to be contacted, but this is especially true if your Senator is one of the following:

Eide tracey.eide@leg.wa.gov                         Schoesler  mark.schoesler@leg.wa.gov

Hargrove  mark.hargrove@leg.wa.gov            Shin  paull.shin@leg.wa.gov

Hatfield  brian.hatfield@leg.wa.gov               Benton don.benton@leg.wa.gov

King curtis.king@leg.wa.gov                         Roach  pam.roach@leg.wa.gov

 

         Please contact your legislators on the Legislative Hotline at

1-800-562-6000 or e-mail and ask them to oppose these measures.                  To find your legislator or district, visit: http://app.leg.wa.gov/districtfinder

 

 

SB 5851 is unnecessary

  • Plans 2 and 3 are fully funded and among the best-managed in the country.
  •  The State of Washington already provides a 100% employee contribution, Deferred Compensation program and a plan that combines a deferred contribution with a defined benefit plan (PERS 3). 
  •  By the State’s own admission, very few employees are interested in joining this proposed plan.
  •  There is already a plan in place to pay back the unfunded liability in Plan 1 and rates have been adjusted to meet the anticipated economic challenges in front of us.

SB 5851 is harmful to existing PERS plans and to employees

 

  • The creation of this new plan would require funds be held from investments to account for the new plan members right to withdraw their money at any time. This need for liquidity will cost the other plans in investment returns.  Every new member joining this new plan would increase the risk to the State Investment Board’s ability to make sound, long term investments. That will harm the entire system.
  • SB 5851 will increase Plan 2 and Plan 3 member rates.  Why should members of other plans subsidize the rates for a plan they don’t even want?
  • While the plan is voluntary, the choice is irrevocable.
  • Making the new plan the default plan will drive up the cost of the other plans even higher. Putting people who don’t make a choice in the plan that requires the most member involvement makes no sense.
  • The fiscal note states that should investment returns exceed the assumed rate of return, then any savings in this plan could become additional costs.  The trust fund has gained an 8.57% return since inception in 1992 and the State Investment Board has outperformed the state’s assumed rate of return in 14 out of 20 years. 

 

PEPR

(Public Employees for PensionResponsibility)

 

Washington Federation of State Employees (WFSE)

Matt Zuvich, Chair – 360-352-7603

 

 

 

American Federation of Teachers- Washington

Bernal Bacca

 

 

Association of Washington School Principals &

Washington Association of School Administrators

John Kvamme

 

Washington State Council of County and City  Employees Council 2

J. Pat Thompson

 

Washington Joint Council of Stationary Engineers/IUOE

David Westberg

 

Teamsters Joint Council 28 and Local 117

Majken Ryherd/ Jim Richards/Teresita Torres

 

Rebecca Johnson

Washington State Labor Council

 

 

 

 

Washington Education Association &

Washington Education Association – Retired

Randy Parr/Kit Raney

 

 

SEIU Local 925

Adair Dammann

 

 

Washington State School Retirees’ Association

Ed Gonion

 

 

Retired Public Employees Council of Washington

Jo Jacobson/Beverly Hermanson

 

SEIU Healthcare 1199 NW

Ellie Menzies

 

Professional And Technical Employees Local 17

Vince Oliveri/Adrienne Thompson

 

 

 

 

 

PEPR

(Public Employees for PensionResponsibility)

 

Washington Federation of State Employees (WFSE)

Matt Zuvich, Chair – 360-352-7603

 

 

 

American Federation of Teachers- Washington

Bernal Bacca

 

 

Association of Washington School Principals &

Washington Association of School Administrators

John Kvamme

 

Washington State Council of County and City  Employees Council 2

J. Pat Thompson

 

Washington Joint Council of Stationary Engineers/IUOE

David Westberg

 

Teamsters Joint Council 28 and Local 117

Majken Ryherd/ Jim Richards/Teresita Torres

 

Rebecca Johnson

Washington State Labor Council

 

 

 

 

Washington Education Association &

Washington Education Association – Retired

Randy Parr/Kit Raney

 

 

SEIU Local 925

Adair Dammann

 

 

Washington State School Retirees’ Association

Ed Gonion

 

 

Retired Public Employees Council of Washington

Jo Jacobson/Beverly Hermanson

 

SEIU Healthcare 1199 NW

Ellie Menzies

 

Professional And Technical Employees Local 17

Vince Oliveri/Adrienne Thompson

 

 
 
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