OLYMPIA, Wash. — Retired Washington police officers and firefighters have filed a federal lawsuit over a state law that would strip the majority of a funding surplus from their pension accounts, KUOW reported.
Thank you for reading this post, don't forget to follow and signup for notifications!
The new law set in motion a plan to terminate the state’s pension account, which is currently about 160% funded, at the end of June 2029. The state would then reinstate the account at 110% funded and use the withdrawn funds to cover a budget deficit.
| DOWNLOAD:The patrol car checklist: A veteran-to-rookie field guide
The move would sweep nearly $4 billion from the Law Enforcement Officers’ and Firefighters’ System Plan 1, or LEOFF 1, KUOW reported. The account is expected to reach nearly 200% funding by 2029.
“Our state lawmakers are flirting with a very dangerous move that jeopardizes the futures and securities of Washington’s first responders and retired law enforcement officers,” said Steve Berman, an attorney representing the plaintiffs.
The suit, filed at the end of April, states that the law violates the contract clauses of the U.S. and state Constitutions, arguing that the money in the account can only be used for its beneficiaries, KUOW reported. The plaintiffs also argue that decreasing the funding to 110% leaves the fund at risk in case of a market downturn.
LEOFF 1 currently has nearly 6,000 members who were hired before Oct. 1, 1977. Any officers and firefighters hired after that date are covered by different pension accounts, which will not be impacted by the new law.
In addition to the federal suit, the plaintiffs are also considering a state class action lawsuit, KUOW reported.
Trending
Company News
