Bill phasing out retirement security sent to Senate floor
The state Senate Rules Committee Tuesday (Feb. 4) moved the major anti-retirement security bill to a full Senate vote – a day after the stock market plummeted 326 points, meaning existing 401(k) plans have dropped 6 percent in 2014, “Stock Drop Prompts 401(k) Fears”.
The anti-retirement security bill, ESSB 5851, would start the phase out of current pensions – just as promised by the Senate Majority Coalition. This legislation would harm the financial viability of the entire pension system.
CALL YOUR SENATOR TODAY!
Ask them to vote against ESSB 5851 or any bill creating a Plan 4 because it is unnecessary and bad for State and local governments, their current and retired employees, and the state’s economy.
- Washington’s public pension systems are fiscally sound, overall the 4th best in the nation, according to The Pew Charitable Trust.
- State investment Board (SIB) investment earnings leads the nation because of the pooled fund approach and predictable flow of funds under existing plans.
- The current system already includes a hybrid pension plan (Plans 3) that combines characteristics of a defined-benefit and defined-contribution pension. Plans 3 are more than adequately funded. Diverting the flow of funds from the current Plans 2 and 3 into new defined-contribution plans would underfund Plans 2 and 3 to an extent similar as Plans 1.
- The state of Nebraska moved to a defined contribution plan in 1967 and then had to move back to a defined benefit style plan because seniors were running out of money when they could no longer work, costing the state more through welfare programs.
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