(The Center Square) – State pension officials warned Tuesday that a new law allowing the Legislature to pull nearly $4 billion from a retirement plan for first responders will significantly increase the likelihood of future taxpayer bailouts.<\/p>\n
State lawmakers created the Law Enforcement Officers\u2019 and Firefighters\u2019 Retirement System Plan 1, or\u00a0LEOFF Plan 1<\/a>, in 1969 for individuals hired before October 1977. Roughly 80% is funded by taxpayers through the state general fund, with the other 20% split between local agencies and their employees.\u200b<\/p>\n The retirement plan became the target of state Democrats in 2025, as they faced a multi-billion-dollar budget deficit, but the majority party didn\u2019t pass\u00a0House Bill 2034<\/a> until this year amid another shortfall.<\/p>\n \u201cIf I were a member and I saw that funding drop that significantly, I would imagine that there’s going to be a lot of communication between them and us, saying, \u2018What are you doing?\u2019\u201d Anthony Murrieeta, representing employers on the Select Committee on Pension Policy, said during a meeting on Tuesday.\u200b<\/p>\n \u201cI really want to make sure that whatever is being done, those benefits are protected,\u201d Murrieeta said.\u200b<\/p>\n HB 2034, which every Republican and even some Democrats voted against, will\u00a0terminate<\/a> that pension plan on June 30, 2029 and transfer 110% of its projected benefit value into a new account. The plan is expected to hold\u00a0$7.7 billion<\/a>, or roughly 226% of its outstanding liabilities, ahead of the 2029 transfer.\u200b<\/p>\n The law allows the state to pull an estimated $3.9 billion from the pension to spend in the general fund.<\/p>\n Many Republicans, such as Rep. Travis Courture, R-Allyn, who sits on the select committee but was not at Tuesday’s meeting, have repeatedly called<\/a> the upcoming transfer in 2029 a $4 billion pension “raid.”\u00a0<\/p>\n Murrieeta said the use of retirement benefits to fill the state\u2019s general fund shortfall raises \u201cred flags.\u201d<\/p>\n