Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Retirees, counties and unions urge changes after Ways and Means hearing on LEFT 1 termination and surplus transfers
Summary
At a lengthy public hearing, staff outlined a plan to terminate LEFT Plan 1 on 06/30/2029 and restart a restated plan funded at 110% of actuarial liability; hundreds of retirees, local officials and unions testified, urging protections for retiree medical benefits, local cost relief, and a benefit enhancement before any surplus is redirected to the general fund or the Climate Commitment Account.
Amanda Cecil, staff to the Senate Ways and Means Committee, briefed the panel on engrossed second substitute House Bill 2,034 (HB 2034), which would terminate and restate LEFT Plan 1 on June 30, 2029. Cecil said LEFT 1 is currently overfunded on the actuarial valuation (160% funded per 2024 valuation) and that the bill would transfer an estimated $569 million to the Climate Commitment Account and roughly $3.4 billion to the pension funding stabilization account or state general fund under current estimates; staff cautioned these are subject to actuarial and market changes.
Members asked detailed questions about historical funding shares, projected medical liabilities and the timing of IRS guidance. Cecil said local governments have ongoing obligations for retiree medical benefits (staff cited roughly $2.0 billion in statewide local government obligations as of the 2024 valuation) and that the IRS review of any termination-recreation package could take at least a year; the bill’s effective date is intended to accommodate that review.
Publi…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
