The W.S.R.D.S.P.O.A. is, by its Bylaws a social organization. Many of us have worked side by side with LOEFF II officers before retiring. There were no Issues with the job or performance with these officers during this period of time. The only real problems occurred with some of the political actions that mistakenly threatened the LEOFF I Health Care Program that was attempted by some LEOFF II organizations. These attempts were thwarted by the efforts of LEOFF I Organizations such as the Retired Seattle Police Officers Association, the LEOFF I Coalition and others. Several of the organizations supporting the protection of the LEOFF I Health Care Program contain LEOFF II Members that had no knowledge or interest in changing the programs as they stood then or are in force today. By including LEOFF II members in our association we will increase our Washington State voting numbers and increase our voice in Olympia. I encourage you to consider the inclusion of LEOFF II members as full, voting members in our association. Also consider donating to the LEOFF I Coalition. They are a defending organization for our retirement program and our healthcare benefits.

The latest funding figures are from the 2014 Valuation. In that document TRS 1 is funded at only 69%.  In contrast LEOFF 1 is funded at 127%.  The LEOFF 1 plan is one of the healthiest plans in the state and even the nation.  In contrast, TRS 1 is one of the worst funded systems.  If this bill passes, LEOFF 1 will cease to be fully funded as the combined plans would be only 87%.  And, that would be after injecting $5.5 billion of LEOFF 1 funds into TRS 1.

Teachers are charged with educating our children.  They work nine months a year in that effort.  Of course they are burdened with other responsibilities but many have the opportunity to generate extra income or increase their professional status during the summer recess period.  Their job is inside a building and generally safe from attack.  We do not mean to suggest they have a lighter burden, but they certainly have a different work schedule and different duties.

Law Enforcement Officers also must work on the 24/7 staffing mode.  Most of their work involves being in the elements.  We put tremendous demands of them to always perform their jobs with perfection and even threaten them with disciple and even criminal prosecution if they fail.  Like the Fire Fighter, Police Officers run toward trouble not away from it.  And police officers frequently die providing the services demanded by the citizens.  It is stressful and dangerous but it is also essential, as society cannot exist without public safety.  Police Officers are heroes.  They keep us safe.

LEOFF 1 has been in surplus since 1999.  In fact the pension contributions for LEOFF 1 were eliminated in 2000.  It has been clear since 2000 that various legislators and other agencies wanted access to that surplus.  Two bills were proposed to take money out of the system. The first bill would have taken $200 million out of the system to be used for non-pension items. The second bill in 2001 was SB 6166, which would have terminated LEOFF 1 with the state taking all the funds.  Both of these attempts failed.  They failed because they would not stand up to the law.  It is simply illegal to take pension money.  It is illegal under contract law and under IRS rules.

Then came HB 2068 in 2010 attempting to merger LEOFF 1 into LEOFF 2.  That failed.  Then came HB 2097 attempting the same thing again.  It also failed.  The underlying goal was to get the LEOFF 1 surplus under the control of the LEOFF 2 board.  That would have created a situation where funding would be available for enhanced benefits for LEOFF 2.  A token $85 million would have been freed up for the legislature by a change in state contributions.

Traditionally the legislature has gotten its hands on the money not by taking it by rather by changing the contribution scheme.  That is because it is illegal to take it.  In 2000 the legislature freed up funds by eliminating LEOFF 1 pension contributions.  So they have already had their bite of the apple and they should not be allowed another.

Over the years numerous changes and adjustments have been made to the LEOFF 1 system.  Almost all of these have been housekeeping measures to correct errors in the law or to add a new benefit that had no fiscal impact.  For example post retirement spouse coverage.  We have been able to make these corrections because LEOFF 1 member could directly approach the legislature for redress or consideration.

One of the primary objections to the proposed LEOFF 1/LEOFF 2 merger bills is that or position in a much larger group under control of a board populated almost entirely of LEOFF 2 members would not be responsive to LEOFF 1 needs.  Hence we would be under represented.

It appears obvious that this bill was not developed on a bar napkin and then submitted to the legislature the next day.  It is a bit complicated and structured so as to create a sense of continuing to provide all existing benefits and just taking away the money.  The legislators that developed this bill know who the LEOFF 1 leaders are.  We have all been in Olympia frequently and Dick Warbrouck has been there almost every day. It seems extremely arrogant that they would not discuss the proposal with the stakeholder before crafting the bill.  I guess it means they thought we would object.  Well, they were right there.

 From the Treasurer

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~