Retired officers and firefighters sue to stop Washington pension fund raid

7 articles · Updated · seattlered.com · Apr 30

The federal class action in Seattle targets a law signed on 1 April that would end LEOFF 1 in 2029 and redirect more than $3.3 billion affecting about 5,850 beneficiaries.
Filed by Hagens Berman, the suit says the measure breaches US and state contract protections; named plaintiffs include former King County sheriff Dave Reichert and retiree group leaders.
An actuarial note said the law raises the chance of the fund becoming underfunded by 2045 from 5% to 40%, as Washington seeks to help close a roughly $2 billion budget gap.

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?