As we begin the holiday season I want to extend to each of you on behalf of the officers and directors of the RFFOW our best wishes for a Merry Christmas and a happy, healthy and safe New Year. We should all pause for a moment especially during this holiday season to remember our servicemen and women who are away from home and family. We will also remember the needless attack when Officer Tim Brenton was killed and Officer Brit Sweeney was wounded only because they were wearing the uniform of a Seattle Police Officer. We extend our heartfelt sympathy to Officer Brenton's family as they try to adjust to the loss of their loved one and now must suffer additional pain as they cope with the emptiness and sorrow during a time that is normally full of celebration and joy.

After a recommendation by the Board of Directors, a motion was passed at the November membership meeting to change our monthly meeting day from the second Saturday of the month to a weekday.

The 2010 Legislative Session will begin in January.

This will be a short sixty-day session. With the projected budget shortfall, most of the attention will be directed to finalizing the budget. The Governor could, after the close of the regular session, call for a special session.

I don't think this is likely unless the budget has not been approved. I doubt that there will be any significant pension legislation introduced especially after so many pension bills were introduced in the last session.

The Select Committee on Pension Policy has only had a few meetings during the interim. I don't expect any major pension legislation to be submitted by the Committee.

We will watch very closely for any bills that are introduced pertaining to retirement. We will be in contact with committee staff and attend any committee hearings on bills of interest.

We have had two requests for bills to be drafted and introduced.

One would allow a retired law enforcement officer or firefighter who retired on a disability to attend a state college, university, or community college without paying tuition. This would be similar to the existing statute for dependents and would include both LEOFF 1 and LEOFF 2 members.

The other would be for the removal of any fees for all firefighters, active or retired, who register at a state park and who can be called upon for assistance in an emergency. If you are interested in either of these two proposals, please let us know.

Pension Funding

The State Actuary, Matt Smith, continually recommends full funding of the state's pension systems to keep the state from digging a deeper hole, but unfortunately, these requests are usually disregarded. During the last session there was an attempt by the Governor's office to reduce the funding of the pension systems but the request was rejected by the legislature.

LEOFF 1 is unique because the system is closed and all contributions have been discontinued. The system is fully funded but will, depending on the projected revenue, develop an unfunded liability around 2013 and then become full funded in
2020 (approximate dates).

If at that time they decide to reinstate the contributions there will be few active members and employers to make any contributions, leaving only the state to contribute. It has been said, that if we could remove the LEOFF 1 Fund from the co-mingled trust fund and invest the funds with no risk for as little as five percent interest, there would be sufficient funds to meet all obligations in the future. In the absence of any major court decisions in the future, the LEOFF 1 system, being a defined benefit system and a contracting right, would require the state to pay for the retirement benefits from the General Fund if necessary, in the event the fund was depleted.

Medical Benefits

We recently had a dispute with the City of Hoquiam regarding the payment of LEOFF 1 medical expenses. We were pleased that, after forwarding a letter to the city and with the city's cooperation, we were able to resolve the problem which required a retroactive payment to a member's family. We now have another problem with the City of Hoquiam in regards to a letter the city sent to LEOFF 1 actives and retirees announcing a new policy for the payment of medical expenses.

Even though the Grays Harbor County Disability Board administers the LEOFF 1 retirement system for the City of Hoquiam, the city in the letter stated that a new policy would require the members to pay their medical expenses out of pocket and then submit a voucher to the city for reimbursement. This would be in advance of the disability board's approval, which could cause a real problem.

We forwarded a long letter to the city requesting the city to repeal the policy as it is not within their authority, reminding the city that no bill should be paid unless approved by the board. We are now awaiting the city's reply.

The recent court decision in Swisher vs. City of Moses Lake filed by Attorney Joe Fischnaller, now reinforces our position in the first dispute with the City of Hoquiam.

In the Moses Lake case the court ruled that the city had to pay all future necessary medical expenses approved by the disability board.

We also had the insight of a 1984 King County Declaratory Judgment in Seattle Firemen's Pension Board vs. City of Seattle, Tim Hill City Comptroller. Judge David C. Hunter ruled that "The City cannot refuse to issue warrants against the pension fund on vouchers properly approved and submitted for payment of lawful expenditures and claims by the plaintiff's board."

Another issue that has come up with a difference of opinion is: Does a disability board have the right, the authority and the responsibility to enforce its ruling in the approval of medical expenses and demand that these expenses be paid by the employer? We will forward a request through a legislator for an Attorney General Opinion for some clarification on this issue.