WA teachers union files suit over loss of pension gain-sharing

[Omaha Steve]

http://seattlepi.nwsource.com/local/6420AP_WA_Pension_Lawsuit.html

WA teachers union files suit over loss of pension gain-sharing

THE ASSOCIATED PRESS

SEATTLE -- The state teachers union and individual teachers filed suit Tuesday over the loss of future pension bonus dollars because of legislative action.

The elimination of pension "gain-sharing" will cost teachers and other public employees billions of dollars over the next 25 years, the Washington Education Association said after filing suit in King County Superior Court.

In 1998, state lawmakers decided pensioners should share the wealth when the state's Wall Street investments did well, so they established "gain-sharing." Nine years later, lawmakers eliminated the pension bonus after a final payout set for next January. Gov. Chris Gregoire signed the repeal on Tuesday.

The repeal of gain-sharing is estimated to save about $100 million in the next biennium and $6.7 billion over the next 25 years.

In exchange for the end of gain-sharing, some pensioners will receive cost-of-living increases, and many will qualify for earlier retirement without reducing their pension. These add-backs will cost about $4.4 billion over the next 25 years.

FULL story at link.