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Day two of David Pecker testimony wraps in NY Trump trial; Supreme Court hears arguments on Idaho's near-total abortion ban; ND sees a flurry of campaigning among Native candidates; and NH lags behind other states in restricting firearms at polling sites.

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The Senate moves forward with a foreign aid package. A North Carolina judge overturns an aged law penalizing released felons. And child protection groups call a Texas immigration policy traumatic for kids.

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The urban-rural death divide is widening for working-age Americans, many home internet connections established for rural students during COVID have been broken and a new federal rule aims to put the "public" back in public lands.

State Retirees to Lawmakers: We 'Heart' Our Pension Plan

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Friday, February 14, 2014   

OLYMPIA, Wash. – State government workers say their retirement security is at stake with legislation in the Washington Senate. It would create a new type of 401(k) plan for new hires at state agencies – when the workers contend the state pension system works well and no new plan is needed.

Current retirees kicked into high gear this week, contacting lawmakers to voice their concerns before a Senate vote on the bill, ESSB 5851.

Gwen Rench, president of the Retired Public Employees Council of Washington, says after years on the job, workers want a defined benefit pension to provide a set amount of money – and that isn't how a 401(k) plan works.

"The reason you stay as a public employee is because one of the benefits is being able to have a defined pension at the end of your service,” she points out. “To take that away, you'd probably have more turnover in employees, which isn't exactly saving the state any money."

She says 401(k) plans tend to be riskier investments than traditional pension plans, and that it's easy for people to not save enough, or to raid their own 401(k) for emergencies or unexpected expenses over the years.

Backers of the change say it would save the state money in the long run, but retirees say that’s not so, if they end up having to depend on state safety-net programs as they age.

Rench says her group sees the legislation as the first step in a bigger, national push by corporations to phase out pensions altogether, as an attempt to weaken labor unions.

"I think so, at the national level,” she says. “Yes, when you look at who's behind it – the Koch brothers seem to be some of the ones behind it. I think it's just part of a national plan to get away from having defined benefits."

The Washington Federation of State Employees has predicted adding a 401(k) plan to the state system would make the remaining pension plans less stable. It says Washington's pension system is in the top four best funded in the nation, and doesn't need to be changed.




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