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House committee accepts bill
to increase minimum
retirement benefits
The House Appropriations
Committee has approved a measure, prime sponsored by
Rep. Barbara Bailey, that would establish a $1,000 minimum monthly benefit for
certain retired teachers and public employees.
House Bill 2687 would expand eligibility for the $1,000 minimum benefit
to members of the state’s Public Employees’ Retirement System Plan 1 (PERS
1) and the Teachers’ Retirement System Plan 1 (TRS 1) who have had at
least 20 years of service and have been retired for at least 25 years.
Bailey, a member of the Joint Select Committee on Pension Policy, said
the issue is a "matter of fairness" for those long-time state retirees.
"These retirees were employed so long ago that their base salaries were
very low in comparison with salaries paid in recent years. Retirement
benefits are calculated upon those salaries. Unfortunately, for our
long-time retirees, there weren’t any existing factors tied to this
pension program to adjust their monthly minimum benefit for inflation or
cost of living. There was nothing to bring it up to an equitable
standard," said Bailey, R-Oak Harbor. "Most of these people are quite
elderly and have a difficult time living on such small benefits. Many of
us felt that in fairness, a minimum monthly benefit for those retirees
should be at least one thousand dollars."
In addition to the minimum monthly benefit, the bill would provide an
annual 3 percent increase.
"There’s still more we must do with this legislation and I plan to
continue working it through the process," concluded Bailey.
The measure passed the House Appropriations Committee and has been sent
to the House Rules Committee for further action.
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For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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