up in the House

What the legislature wrought, 2007 education edition. Government sure didn't shrink any over the session.

The Olympian defends gainsharing

Taking on risk under false promises. That's what has happened, in essence, to the teachers under retirement Plan II who switched to Plan III, told by the state that the loss, a reduced guaranteed benefit, would be outweighed by the gains.

Look for yourself and compare. The "defined benefit" is halved, supplemented instead with employee contributions based on the whims of the market--with the potential, under gainsharing, to increase the payout in times of plenty. Now, with gainsharing gone, Plan II members can only hope that the stock market stays healthy.

Says The Olympian,

Teachers and public employees who had counted on those financial benefits in their retirement years are understandably upset.

I'll say.

gainsharing probably dead--make that actually dead

Gainsharing, or gain sharing, or gain-sharing: by any other name, this rose is just as wilted.

The House voted to end a retirement benefit for some state workers Saturday, likely ensuring the end of “gain sharing.”

Democrats said the benefit, once thought to cost essentially nothing, will cost too much in the future. In exchange for ending the program, they plan to lower state workers’ retirement age by three years.

Republicans got to play the "a promise is a promise" card on this one, but lost. I'll take earlier retirement, though, if I can get it. To borrow a phrase from Delmar O'Donnell, "I'll only be 62."

We'll see how this all plays out. I'll post updates as soon as they're available.

Update: Yep, it's gone. If it's any consolation, though, plan II and III members can now exit three years earlier without penalty.

Sam Hunt explains vote on HB 2391, gainsharing repeal

In an email response to my open letter (which I also sent directly to Hunt, among others), he writes,

House Bill 2391 has been approved by the House Appropriations Committee. It is a compromise to replace gain sharing. While I would have liked to see gain sharing stay in place for current members, that is not a part of the proposal. A majority of the employee and retiree organizations who testified in committee gave their support to this proposal. I voted for it as well.

House Bill 2391 represents a 3-year effort to reform the pension plan system a) Public employees, teachers and current employees will give up gain sharing after a last distribution in 2008 b) This will be done in exchange for increased cost-of-living adjustments and improved early retirement benefits.

The last gain sharing distribution in 2008 will provide more than $700 million in project benefit increases after next year gain-sharing is eliminated for all employees.

Then beginning July 1, 2009, all current retirees will get up to a 13 percent increase in cost-of-living adjustments.

New hires in the Teacher Retirement System and School Employees Retirement System will get a choice of Retirement Plan 2 or Retirement Plan 3.

Public employees retiring after age 55 with at least 30 years of service will see improved early retirement benefits.

I thank Representative Hunt for his willingness to communicate with his constituents. I agree that the compromise is better than simply abolishing gainsharing, and I'm glad to see that incoming teachers won't have to be forced into Plan 3, the retirement abyss. However, I would like to see a true rule of 85 instead of the modified version given above. Let's reward those who serve without forcing them to burn down to the last ember.

an open letter to Washington legislators

Dear folks in charge,

As a fairly new high school teacher, I thought I was wise to choose Washington above other states, knowing that the lower salary was balanced out by decent health benefits, a dependable retirement plan, and, above all, the most incredible landscape in the country. With salaries falling further behind other states, with health care costs rising, and with the threat of a gainsharing repeal, will Washington's only incentive be its snow-capped peaks?

This state has enough trouble recruiting quality teachers. Let's not make things more difficult by repealing gainsharing.

Regards,

Me