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The LEOFF 2 Board met on September 21, 2016.  They had a long agenda but we will focus on the portion dealing with the merger issue. There was nothing new on the merger issue except that Steve Nelson of the LEOFF 2 Board did a complete and detailed discussion of the issues. He really demonstrated how complicated the matter is.

One additional presentation from the State Investment Board should be of interest to LEOFF 1 members since they are in charge of investing our pension funds.
September 20th was supposed to be a day when some of the merger study report would be revealed.  Alas, it was not to be. Rather it was just a rehash of the study results with no answers to any of the over 1400 questions posed to the committee.  It is becoming increasingly clear that this study of the LEOFF 1/TRS 1 merger will severely lacking.  So far the Select Committee has received no information on which to base any kind of report.  They just know there are lots of questions.  Click here for the report.

LEOFF PLAN 2 RETIREMENT BOARD MEETING AGENDA

September 21, 2016 - 9:30AM

The next LEOFF Plan 2 Retirement Board meeting is Wednesday September 21st, 2016 at 9:30AM. Public attendance is welcomed.  Meeting materials will be available on our website to view on Monday, September 19th.

The meeting will be held at:

Washington State Investment Board
Large Conference Room 
2100 Evergreen Park Drive SW, Suite 100
Olympia, WA 98502 

I am pleased to report that the 9 month long struggle to get Snohomish Co. FPD #1 to reimburse their LEOFF 1 members for Medicare A premium is over. At the Commissioner meeting on Sept.6 the commissioners voted 4-1 in favor of a resolution to reimburse. In addition they agreed to reimburse retroactively one member who has been paying his own premiums for these many months. The members will however be required to apply for Med. A under their spouse when the spouse becomes eligible. We view this as a win-win and encourage other agencies to do the right thing and follow the example of District 1 Commissioners.

SCCP Meeting September 20th

Pension Policy, Select Committee - 9/20/2016 10:00 a.m.
Full Committee
House Hearing Rm A / John L. O'Brien Building / Olympia, WA

REVISED ON 9/6/2016 AT 3:55 PM

Agenda:
1.    Approval of Minutes.
2.    Merger Study.
3.    Break.
4.    Update on PFC Adoption.
5.    DRS Update.
6.    LEOFF 2 Board Update.
7.    WSPRS Study.
8.    Plan Membership Default: Initial Briefing.
9.    Age-Based Plan Opt-Out: Initial Briefing.

For further details, please visit the SCPP web site at http://leg.wa.gov/SCPP . Meeting start time is subject to change depending on the needs of the Committee.
Director’s Roy Orlando, Jim Adsley, Curt Vandver, Vice President Jim Fossos and myself attended a roundtable discussion in Olympia regarding the pension merger ESB 6668. The meeting was chaired by Senator Steve Conway, the Chairman of the Select Committee on Pension Policy. Senator Barbara Bailey was on the phone but co other Select Committee members were present. Matt Smith, the State Actuary was on the agenda to explain the fiscal note on SB 6668 and a summary of the merger bill. This is a 17 page report on the fiscal impact on a LEOFF ITRS I merger. It’s very difficult to summarize a 17 page document with a number of charts in a brief article. The document includes the highlights of the actuarial analysis, funding policy, why the bill has a savings and who receives the savings. It also shows the projected value of the TRS I and the LEOFF I funds from 2014 to 2050 in the following categories: very optimistic, optimistic, expected, pessimistic, and very pessimistic. We are dealing with assumptions. No one has a crystal ball and the past is no indication of the future. There was a lot of discussion of the 7.7% projected earning rate. The society of actuaries is suggesting a rate of 5.5% while some in the private sector are recommending that 3.5% is more realistic.
AARP President Jeannine English has urged the House Ways and Means Committee to end the Social Security provision known as the Windfall Elimination Provision, or WEP, which reduces benefits for workers who have both state and private-sector jobs. Under HR 711, sponsored by Chairman Kevin Brady (R Texas), workers who are already retired may receive a rebate, and those still working will get benefits based on earnings and contributions, like all other workers. Call 844-259-9352 toll-free and ask your lawmakers to cosponsor HR 711.
Ice Miller is a law firm located in Chicago with offices in several cities.  The firm serves as counsel to the State of Washington primarily on tax issues.  Whenever the state is concerned about potential tax issues in legislation they normally engage Ice Miller to conduct a review.  As such they serve as an acting attorney general.  Because of this their opinions are normally held to be confidential and are not made available to the citizens of the state.  Once in a while that confidentiality is broken and we get a look at their advice.
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