"Washington State Treasurer James L McIntire Speaks at Luncheon"



L to R:  Jim Foster, Don Parks,
Washington State Treasurer James McIntire,
Elaine Banks, Jim Bumgarner

On October 24, 2011, Washington State Treasurer, James McIntire spoke to the Benton/Franklin School Retirees Association at the Red Lion in Kennewick, WA.  In his opening remarks Treasurer McIntire told members this was, for him, a "teachable moment."  He went on to explain that the modifications made by the state to state pension plans, "after the closing of PERSI and TERSI in 1977, Washington has ranked fourth in the nation in terms of combined and effective funding of its 13 pension programs."

McIntire commented further that, "Washington's 10 ongoing pension plans - the plans that are open and accepting new employees - are funded at 118 percent of future liabilities . . . the Washington State Investment Board has averaged over 8 percent annual return on pension funds for the past 20 years . . . our long term performance is very good and our investiment portfolios are positioned well for the future."    

Unfortunately, however, those employed prior to 1977, are looking directly into the mouth of huge underfunded liabilities. Liabilities to the tune of  $3.8 billion.  McIntire said, it is "a problem that grows worse as the bills come due . . . because these two plans were underfunded numerous times since 1977 they are now currently funded at only 72 percent of future liabilities . . . they cannot be avoided or reduced by initiative or actions of the Legislature."

Treasurer McIntire concluded, "If the Legislature is unable to take the dramatic steps necessary to consistently fund these liabilites over the next 20 years through the regular budget process, then it may be necessary to lock a payment schedule into the State Constitution so that it can't be easily changed by the Legislature."

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 "Pension Funding Reform for Washington State,"  Washington State Treasurer James L. McIntire.KNDU interviewed Elaine Banks, and Treasurer McIntire 

submitted by Jim Bumgarner