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Committee counsel summarizes two lawsuits that could affect pension costs
Summary
Committee counsel told members that cross-motions in Fowler et al. v. Leathers are set for May 1 and that the court in Dolan v. King County ruled against the state's position on attorney-fee recovery; the latter ruling did not require the state to pay fees, counsel said.
Kate Adams, introduced herself to the committee as a new staff member who will be taking over pension legal updates and said she will furnish a written summary at the May meeting.
Adams summarized two matters the committee is tracking. She said Fowler et al. v. Leathers — pending in federal district court in the Western District of Washington — involves the validity of the plaintiffs’ formula for calculating interest on funds transferred between TERS plans; "we're expecting cross motions for summary judgment on that to be heard on May 1," she said.
Adams also reviewed Dolan v. King County (Pierce County Superior Court), noting the court issued a ruling contrary to the state's position on whether the state could reimburse itself for attorneys' fees previously advanced to a class of PERS plaintiffs; the court found the department's deductions from a terminated employee’s account to account for an attorney-fee share were improper. Adams said the court did not assess attorney's fees against the state in that case.
Committee members expressed concern that litigation outcomes could affect contribution rates and the pension system's costs. Senator Conway asked staff to keep the committee informed so potential litigation-driven cost impacts can be folded into actuarial and rate-setting work.
