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Posted: Tuesday, 26 February 2013 6:14AM

Measure Would Replace State Pensions With 401-k Plans



Olympia, Wash.  (Metro)  -- The Washington State Senate is currently considering a proposal to close the state's fixed-benefit pensions for employees under age 45 in favor of 401-k-style investment plans. 

The primary sponsor of the bill, Senator Rodney Tom, says the measure would provide more flexibility for a mobile workforce and allow the state to cover its current obligations without adding them to the debt burden for future generations. 

Opponents of the bill, including the Washington Education Association, say the measure would not likely be legal because it would take away a vested retirement benefit.       
 
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