State lawmakers\u2019 proposal to help cover a budget shortfall by using billions of surplus dollars from a police and firefighters\u2019 retirement fund is getting some heat in Olympia.<\/p>\n
House Bill 2034<\/a> would end the Law Enforcement Officers\u2019 and Firefighters\u2019 (LEOFF) retirement system Plan 1, which has been walled off to new members since 1977<\/a>. It would fund a newly created retiree-benefit plan in 2029 at 110% rather than the estimated 160% as of 2024, letting more than $3 billion of pension-surplus money be transferred for other general-fund spending.<\/p>\n A previous version of the bill would have shifted $569 million of the surplus to the clean energy project-focused Climate Commitment Account. A Senate amendment adopted Friday, though, removed that<\/a> from the legislation.<\/p>\n HB 2034 passed off the Senate floor March 6 on a 25-22 vote. Four Democrats joined Republicans in voting no: senators Deb Krishnadasan of Gig Harbor, Jessica Bateman of Olympia, Steve Conway of Tacoma and Adrian Cortes of Battle Ground.<\/p>\n The adopted striking amendment states that plan members have a constitutionally protected right<\/a> to pension benefits provided under their employment contract. However, it says, they don\u2019t have a \u201cright to assets beyond the amount needed to completely satisfy all liabilities under the plan.\u201d<\/p>\n Opponents of the measure include firefighters and Republican lawmakers who fear that LEOFF 1 members could be left out in the cold if investment markets were to freeze over. But backers believe that the move would ensure the state is in better fiscal standing without posing a real risk to recipients.<\/p>\n House Majority Leader Joe Fitzgibbon has said that it makes sense to look to the fund\u2019s surplus<\/a> for one-time assistance with the state\u2019s budget woes, according to The Seattle Times.<\/p>\n \u201cWe think that that could go a long way towards improving our state\u2019s fiscal situation,\u201d the West Seattle Democrat said.<\/p>\n LEOFF 1 counts four active employees who still pay into the plan and more than 4,400 retirees<\/a> as of last June, according to the Association of Washington Cities. The plan by 2029 will be approximately 200% fully funded.<\/p>\n The legislation would likely attract legal challenge.<\/p>\n