October 31, 2011

The Honorable Christine Gregoire, Governor

Dear Governor Gregoire:

Each of our organizations strongly opposed the underfunding of LEOFF Plan 2 as proposed in HB 2068 during the 2011 legislative session. Our objections were met with a request by members of the House of Representatives to provide alternatives that allowed the State to save the $15 million projected in HB 2068, and we delivered three alternatives. Two of the alternatives were dismissed out of hand, and we were asked to develop the details of the third--merging LEOFF Plans 1 and 2. HB 2097 with 37 sponsors was the result.

In the end, a strong majority of House Democrats and the House Republican budget opposed HB 2068, and the Legislature directed the Office of the State Actuary to study the impacts of merging LEOFF Plans 1 and 2 and report by December 15, 2011.

With the inclusion of the reduction in LEOFF 2 contributions proposed in HB 2068 on your list of budget reduction alternatives that are tentatively identified for inclusion in your supplemental budget, we believe it is appropriate to revisit the options to underfunding LEOFF Plan 2. Any of the following options are appropriate alternatives to HB 2068:

• Restore the $15 million of underfunding for LEOFF Plan 2 in the supplemental budget.

• HB 2097 – Merging of LEOFF Plans 1 and 2.

• Transfer of surplus real property with a value of $15 million to LEOFF Plan 2.

• Issue $15 million in pension obligation bonds.

We are willing to meet with you to develop any one of these options and build consensus around the chosen solution.

Respectfully yours,