How Bad Is It? (Washington)

This bad:

• Washington just became the first state in U.S. history to terminate a public employee pension plan.

  The plan belongs to retired police officers and firefighters. LEOFF Plan 1 was 160% funded as of June 2024 per the state's own actuarial valuation. It had not required a single contribution in 25 years. By 2029 it was projected to reach 200% funded with a $4.3 billion surplus.

  The legislature terminated the plan, swept $3.9 billion, and is using $880 million of it to refill a rainy day fund it already drained to cover a deficit it created.

  Days ago, retired first responders including former Congressman Dave Reichert sued the state to stop it. The bill passed the House 55-39 and was advanced out of Appropriations without a public hearing. Every yes vote was a Democrat. The governor signed it in April.

Our pension never hit anything near 100%. We think (think) it may have been funded at or near 75% back around 2000, but then Shortshanks invented pension "holidays," refused to follow actuarial funding recommendations, and redirected spending toward pet projects to buy votes, thereby leading to the current crises. 

In Washington, they're just stealing the surplus instead of going through the actuarial recommendations, which will most likely lead to a funding shortfall within a few years.