OLYMPIA — State Sen. Jim Hargrove opposes a Senate bill that would merge the pensions of police and firefighters in the state with an insolvent teachers’ pension fund.
“I can’t support that,” said Hargrove, D-Hoquiam, on Saturday. “There is the objection that the firefighters paid into this plan and the teachers’ plan is a little bit underwater.”
Hargrove — along with Rep. Steve Tharinger and Rep. Kevin Van De Wege, both Sequim Democrats — represent the 24th District, which covers Clallam and Jefferson counties and part of Grays Harbor County.
The Senate Ways and Means Committee, of which Hargrove is a ranking member, on Wednesday conducted a public hearing on Senate Bill 6668 and approved it.
SB 6668 is now being considered by the Rules Committee.
The bill would merge the assets and liabilities of Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plan 1 with Teachers’ Retirement System (TRS) Plan 1.
The projected surplus of LEOFF 1 is about $1.2 billion, while TRS 1 is in a deficit of nearly $3 billion, according to The Capitol Record.
The proposed pension merger is part of the Senate Republican majority’s supplemental budget plan.
Sen. John Braun, R-Centralia, told reporters in February that merging the two plans is more efficient.
“When you put them together, that reduces the net payments to reduce our pension liability and it saves money,” he said. “It saves about $2 billion over ten years in taxpayer money.”
The bill would allow the state to pay off the TRS 1 plan’s deficit three years early, Braun said.
Police officers and firefighters came out in strong opposition to the proposal Wednesday, according to The Capitol Record, saying they resent having their retirement fund raided even though the bill would give LEOFF 1 members a one-time payout of $5,000.
The bill calls for “a very legally complicated, fiscally complicated move — and to throw it up as a possible solution for the supplemental budget — it just doesn’t seem well considered,” Hargrove said.
“There are all sort of moving pieces. Different people paid into these plans. Different investment rates are assumed, and so even if we were going to make some kind of a move like that, we would know exactly how it is going to work out, and there is just no way we can figure that out in this time frame.”
A trio of bills sponsored by Van De Wege are progressing through the Senate, he said.
One would allow a business in Port Townsend to start an electric bus shuttle service. Another bill would ban toxic flame retardants from children’s products and furniture. The third is designed to protect small businesses from unscrupulous music licensing agents.
HB 2317 would allow electric buses to drive on portions of state Highway 20, something currently prohibited by state law, Van De Wege has said.
The bill, also sponsored by Tharinger, includes a provision to allow electric bus shuttles traveling 30 mph to 45 mph on low-speed state highways.
SB 6440, a companion bill to HB 2545 — known as the Toxic-Free Kids and Families Act — bans toxic flame retardants from children’s products and furniture and gives the state health department the authority to ban other cancer-causing and harmful chemicals.
This bill also is sponsored by Tharinger.
HB 1763 requires registration and filing with the Department of Licensing and additional information and protection for small business proprietors regarding contract requirements.
“Hopefully small businesses will soon see relief from the aggressive and intimidating behavior from music licensing agents,” Van De Wege said after passage of the bill.
“I’m happy we’re able to get some of these provisions through the Senate and look forward to reconciling our two approaches.”
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Reporter Chris McDaniel can be reached at 360-452-2345, ext. 56650, or cmcdaniel@peninsuladailynews.com.
