3. In 2011, the state legislature eliminated the annual cost-of-living adjustment, or COLA, for Plan 1 (PERS 1 & TRS 1) retirees, making Plan 1 the only state pension plan without a mechanism for all members to keep pace with inflation. Since then, most Plan 1 pensioners have lost 45% of their purchasing power.
4. Approximately 78,000 Medicare-eligible retired public employees and their 30,000 dependents receive health insurance through the Public Employees Benefits Board (PEBB). The state provides a subsidy for PEBB retiree health insurance benefits called the PEBB Medicare Explicit Subsidy. The state pays 50% of health insurance premiums, not to exceed $183 per month. Since the subsidy cap was first set at $183 in 2009, health care premiums have increased dramatically. When premiums increase for plans that have already reached the subsidy cap, the state provides no additional support for retirees on those plans.
5. Washington’s upside-down tax system is one of the most regressive in the nation and disproportionately burdens seniors on fixed incomes, low-income families, and communities of color. RPEC members understand that their retirement security depends on the state’s ability to generate the revenue necessary to fully fund pensions and benefits in addition to state services. RPEC seeks to correct the regressive nature of our state’s tax structure and shift the tax burden from the poor to the wealthy.
