April 16, 2013 in Letters, Opinion

LEOFF-1 mischaracterized

 

Lately, much has been written about this pension system. Some of it true, some of it greatly exaggerated, some of it false and mostly written with a bias against the system.

Facts never mentioned. The LEOFF-1 system is not only fully funded but has so much money that no employee or city has had to contribute one cent to the fund for the past 12 years. Legislators in the state have been scheming for years on how to get their hands on the money.

A medical retirement does not affect the amount the retiree receives from the pension. The difference is in the amount of federal taxes paid on the pension.

“Pension spiking” articles report of millions in added cost to the taxpayer. This is simply untrue. While pension spiking was an abuse of the system, the added cost is to the fully funded closed system, not the taxpayer.

Incidentally, “spiking” could not happen in Spokane because we have civil service.

LEOFF-1 is not in danger of being unable to meet its obligations. In fact, it may be one of the most financially sound pension systems in the country.

Douglas Amsbury

Spokane

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