SCPP Meeting Report - September 20, 2016
September 20th was supposed to be a day when some of the merger study report would be revealed. Alas, it was not to be. Oh, there was a discussion of the report and the following information was presented a new or changed.
- There have been 1421 responses to the survey, plus email, letters and phone calls.
- There were 728 responses that identified themselves as a LEOFF1 member.
- There were 450 active LEOFF 2 and 91 retired LEOFF 2 members
- 1219 responses that were opposed to the merger.
- As of June 2015, the Actuarial value of the4 surplus is $1.09 billion.
Actually, none of that amounted to new information except for the count and demographics of respondents. What we expected was a list of answers to at least some of the over 1,400 questions put to the committee. None were answered.
The meeting was broadcast on TVW. Go to TVW to view the telecast.
The video starts out with an overview of the Merger Study with Aaron and Matt Smith of the Office of State Actuary. The Merger portion runs for about 58 minutes. At about 40:00 minutes, Andy Wilson, President spoke inopposition to any type of merger of the LEOFF 1 system. He did open the door to discussions of the LEOFF 1 Surplus.
At about 44:00 minutes, Dick Warbrouck, President of RFFOW addressed the committee.
Merger Study discussions ended at about 58:00 minutes.
This chart shows the number of responses and the source of the response.
This chart shows the preference of the respondents.
Matt Smith, the State Actuary, did a report on the LEOFF 1 surplus --really just a rehash of information that has been out there for months. The surplus is about $1.09 billion.
The following tables show how the surplus is calculated. Only LEOFF 1 figures were presented at the meeting.
We have put up some of the documents used for the presentation and you can download them here:
We think it is both instructive and disturbing that all of the focus appears to be on the LEOFF 1 surplus and no information is given on the TRS 1 deficit or the impact that the proposed merger would have on the viability of these funds. It appears to us that the focus is on finding some way to justify this merger rather than to study its potential impact.
Finally, it appears that the SCPP has not asked for an opinion from the Attorney General as to whether or not the proposed merger is even legal. At this meeting the AG representative said that we may get a review of the issues but not a formal AG opinion in October. It is hard to understand why such a basic issue is not being addressed.
All in all, this meeting was not particularly helpful. Given that the Select Committee will be charged with approving and forwarding a report on the proposed merger by January it does not appear that any effort is being made to see that the committee is fully informed. We are also bothered by the failure of committee members to attend the round table discussions. Only Senator Conway and Senator Bailey (by telephone) were present for the two round table meetings.
Al O'Brien also attended this meeting on behalf of RSPOA. It is extremely helpful to have an experienced and well know former legislator working of this issue with us.
Please be sure to check out our Merger Links Page. It is now two pages long with links to many important documents including legal opinions, presentations, talking points and many other subjects.
On September 21st the LEOFF 2 Board met. See that report.