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NEWS
RELEASE
May
24, 2007
Contact:
Luis Moscoso, Government Relations Director
(360)
943-1121, ext. 119
WPEA
Files Lawsuit Against State
Regarding Pension
Takeaway
OLYMPIA
– The
Washington Public Employees Association (WPEA) filed
a
lawsuit
in King County Superior Court today contesting the
state’s decision to cut the pensions of its members.
A unanimous vote of the Union's Executive Board at an
emergency meeting last Saturday authorized WPEA/UFCW
365 to
pursue legal action against the state of
Washington.
WPEA
is suing to stop state officials from eliminating gain
sharing for PERS Plan 1 and Plan 3 members.
State employees in these plans are relying on these
financial benefits in their retirement years.
Gain sharing was promised as an enticement for
employees to switch from Plan 2 to Plan 3.
Gain sharing occurs when the State’s retirement
investment fund earns more than 10% on average over four (4)
consecutive years. Half
of the income over 10% is used to improve the pension
benefit of members in Plan 1 and Plan 3.
The
lawsuit filed by WPEA argues that the effect of the
State’s action is to impair the vested, contractual right
to gain sharing payment granted to current members of PERS
Plans 1 and 3.
WPEA
led the fight against the repeal of gain sharing during the
recent legislative session. But,
with the signing of EHB 2391, the governor has left
us no option but to file a lawsuit.
WPEA
is committed to empowering
Washington
public employees through representation, member support,
education, and a quality work environment and standard of
living.
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