Is a second publicly funded retirement pension in the cards for state employees?
Mar 27, 2025, 11:29 AM
WA lawmakers are considering House Bill 1069, which some view as a controversial piece of legislation that could significantly impact state employee pensions.
The bill, which has garnered bipartisan support, allows unions representing state employees to negotiate for a second publicly funded retirement pension, according to Maxford Nelson, Director of Research and Government Affairs at the Freedom Foundation. He has serious concerns about the bill.
“House Bill 1069 would open the door for unions to bargain with the state for a second pension, which is union-operated and union-managed,” Nelson explained on “The Jason Rantz Show” on KTTH. “Why should taxpayers be on the hook for two pensions for state employees?”
Nelson highlighted that public employees in Washington already have state-funded pensions managed by the Department of Retirement Systems.
“Unions want the ability to bargain over retirement benefits for state employees, which historically has not been the case at the state level,” he explained.
Retirement pension bill gets support from some GOP members
The bill has received support from some Republicans, which Nelson attributes to its presentation by the Teamsters Union.
“The Teamsters argue that some corrections employees want to retire early and need the right to purchase health benefits from a union fund to bridge the gap until they are eligible for state benefits,” Nelson said. “However, the bill opens up collective bargaining over everything, including medical and retirement benefits.”
Nelson warned that similar arrangements at the municipal level have led to poorly managed and underfunded pension plans.
“These private sector pension plans needed a $90 billion bailout from the Biden administration to stay afloat,” he said. “Unions see public sector members as a way to keep these plans afloat.”
Despite the bill’s bipartisan support, Nelson urged citizens to contact their state legislators.
“Even if they don’t think you’re going to listen, it’s important to let them know what you’re thinking,” he said. “The fiscal reality in the state right now is not good, and opening up this massive loophole for unions to drive up the cost of public employee pensions is fiscal insanity.”
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