OLYMPIA, Wash. (AP) — An advocacy group for retired public employees in Washington said Tuesday it is considering legal action to challenge the removal of cost-of-living increases in a state pension plan.
Cassandra de la Rosa, executive director of the Retired Public Employees Council, said the group has consulted with an attorney and will consider legal options during a board meeting in July. She said an attorney who has reviewed the case believes the group has a strong likelihood of success. She declined to discuss specific legal strategies or arguments.
"We don't think what has been done to our members is legal," de la Rosa said. "They've had benefits taken away to which they are legally entitled."
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A new law approved by Gov. Chris Gregoire stops automatic increases in the state's Plan 1 system. That program is for state and local government employees who were in the system before October 1977.
State officials had argued that the freeze was necessary to make sure the pension remains financially viable, and they believe the Legislature reserved the right to repeal or end the cost-of-living adjustments, which were created in 1995. The state will save about $400 million in the coming two years because of the change, according to a fiscal analysis of the law.
For a member with 30 years of service, the latest cost-of-living adjustment would have increased the person's monthly benefit by $56.
The cost-of-living adjustments are necessary for older retirees to handle the rising costs of health care, gasoline and other expenses, de la Rosa said. She said the move will lead to deteriorating quality of life for older retirees as inflation consumes more of their income.
"This is a matter of critical importance to older retirees," she said. The Retired Public Employees Council has about 9,500 members.
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