Home  |   About us  |   Partner with AWC  |   Login      

Advocacy

Welcome to AWC’s online library of Legislative Bulletin and CityVoice news articles and other updates.

Published on Friday, January 6, 2017

Studies conclude pension mergers possible

During the 2016 session, the Senate considered a bill to merge the LEOFF 1 (Law Enforcement Officers’ and Fire Fighters’) and TRS 1 (Teachers’ Retirement System) pensions systems. While the bill did not advance, the final budget directed the Select Committee on Pension Policy (SCPP) to study a possible LEOFF 1 and TRS 1 merger and to update a 2011 study on a potential LEOFF 1 and LEOFF 2 systems merger.

Both studies were released last month. The reports make no recommendations, but both conclude that it would be possible to merge the LEOFF 1 system with either the TRS 1 or LEOFF 2 systems in a way that should withstand legal challenge and be approved by the Internal Revenue Service. LEOFF 1 retiree groups have said they will challenge any proposed merger in court. Any merger would also be subject to IRS approval, which would take a minimum of six months.

AWC has not taken a position on merging pensions systems. However, AWC has developed a list of policy issues cities would need addressed should a merger be proposed. One of those policy positions is that should a merger occur that would withdraw any of the surplus funds out of LEOFF 1, then cities should get a proportionate share of those surplus funds to help offset our medical benefit cost obligations for LEOFF 1 retirees.

At this time no formal merger proposals have been released. AWC will continue to monitor this process closely.

The LEOFF Plan 1 and TRS Plan 1 Merger Study is available here.

The updated LEOFF 1/LEOFF 2 Merger Study is available here.

Categories: Personnel
  Search