Retired police and firefighters sue to stop Washington pension fund sweep
Updated
Updated · KUOW News and Information · Apr 30
Retired police and firefighters sue to stop Washington pension fund sweep
5 articles · Updated · KUOW News and Information · Apr 30
The federal suit in Seattle challenges a new law signed by Governor Bob Ferguson that could redirect about $3.9 billion from the LEOFF 1 fund in 2029.
Plaintiffs, including former congressman Dave Reichert, say cutting the fund from 160% funded to 110% risks pensions in a market downturn and violates state and US contract clauses.
Lawmakers want $880 million to backfill rainy-day spending amid a $2 billion budget gap. The plan affects fewer than 6,000 pre-1977 first responders and still needs IRS approval.
How might this unprecedented move to sweep pension funds affect Washington's credit rating and future pension policy nationwide?
Could redirecting pension surpluses to cover budget shortfalls put retirees' benefits at risk if economic conditions worsen?