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NEWS
RELEASE
April 5, 2007
Contact:
Luis Moscoso, Government Relations Director
(360)
943-1121, ext. 119
House Considering Amendment to Mitigate Repeal of
Gain-Sharing
FOR
IMMEDIATE RELEASE
April 5,
2007
House Considering Amendment to
Mitigate Repeal of Gain-sharing
OLYMPIA:
The Washington Public Employees Association (WPEA) applauds
Representative Chase’s amendment to HB 2391 that
would include a one-time cost-of-living increase for Plan 1
retirees. More than a dozen Representatives have already
signed on in support of this proposal. What’s still missing
from these discussions is how to address the significant
gain-sharing losses that Plan 3 members are being asked to
endure.
HB 2391
may offer some attractive benefits to be sure. But the
improvements go mostly to Plan 2 members. And they aren’t
the ones losing retirement income by the repeal of
gain-sharing! The Governor's original proposal did
acknowledge the need to give Plan 3 members something, an
Assured Benefit alternative, in lieu of losing gain-sharing
benefits.
WPEA has
offered both the Governor and the Legislature several
options that would build on the governor’s proposal and go a
long way toward mitigating Plan 3 expected losses to
retirees. Plan 3 members have the most to lose and WPEA’s
proposals initiate a new discussion that would provide at
least a fraction of what the State Actuary says gain-sharing
would cost the state if it isn’t repealed.
The idea
of gain-sharing, originally proposed and passed by a
bipartisan legislature, has unfortunately become the
“scapegoat” for years of under funding our state pension
systems! The State shouldn’t ask one segment of retirees to
give up more than what’s fair in the interest of attaining a
more solvent retirement system.
WPEA’s
proposals deserve a fair hearing by Legislators if they
intend to provide a more equitable solution for Plan 3
members and the State. It is too soon to give up on the
problem and ask employees who were enticed, or in some cases
forced, into Plan 3 to just walk away from the incentive
they were “offered” by agreeing to sign up for gain-sharing
in the first place.
# # #
MEMBER CALL TO ACTION!
CALL
THE LEGISLATIVE HOTLINE AT
1-800-562-6000
or e-mail your legislators and
ask
for their
support of WPEA's Pension Proposals!
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