Washington Ordered to Repay $120 Million to 26,000 Teachers Within 30 Days
Updated
Updated · The Center Square · Jun 30
Washington Ordered to Repay $120 Million to 26,000 Teachers Within 30 Days
2 articles · Updated · The Center Square · Jun 30
Summary
Thurston County Superior Court entered a final order on June 25 requiring Washington's retirement system to restore about $120 million to TRS Plan 3 accounts for more than 26,000 current and former teachers.
The award stems from interest DRS failed to transfer when teachers moved from Plan 2 to Plan 3, despite a promised 5.5% annual rate; the withheld amount was originally more than $13 million before years of compounded returns.
Judge Christine Schaller's order says the money must be transferred within 30 days, and the amount will keep growing at an 8.65% average annualized return until payment is made.
Plaintiffs' lawyer said 61% of the class has already retired, 7% have died, and about 20% cannot currently be located after the 23-year case.
DRS said it is reviewing next steps and did not rule out an appeal, while arguing the judgment equals about 0.4% of the $27 billion TRS trust fund and would not threaten overall pension health.