Washington State Moves to “Strip Away” $3.3 Billion From Police & Fire Pension
Opposition is mounting to Washington legislation that pension advocates warn could weaken first responders’ pensions through the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Plan. A coalition represented by the Seattle law firm of Hagens Berman announced it is preparing legal action to defend benefits tied to roughly $3.3 billion in deferred compensation, arguing the proposal would “strip away” dollars deposited into the fund through paycheck deductions.
Former King County Sheriff John Urquhart has emerged as a leading voice opposing the proposal, warning that weakening the fund’s financial position risks exacerbating recruitment and retention challenges already facing public safety agencies. Advocates argue retirement security remains a core workforce tool — not simply a budget line item — and caution that weakening pension promises threatens long-term public service capacity.
The proposal is in part the work of House Majority Leader Representative Joe Fitzgibbon. During the House Appropriations Committee meeting on Wednesday night, Fitzgibbon said, “There is no state out of 50 where I would rather be a public employee with my retirement system managed by state government than this state.” It was a surprising statement given his role in the effort to redirect pension dollars. Fitzgibbon later apologized for drinking before the hearing.
Oklahoma Pension Funds Targeted to Expand Private School Tax Credits
Senate leaders in Oklahoma have proposed redirecting $254 million originally intended for the state’s Teachers’ Retirement System to fund a broader education package that includes an expansion of the state’s Parental Choice Tax Credit.
The Parental Choice Tax Credit is Oklahoma’s school-voucher-style program, which provides state-funded tax credits to families who enroll children in private schools or use other approved educational alternatives outside the public school system. The credits effectively subsidize private school tuition using state revenues.
According to Oklahoma Tax Commission data, the Parental Choice program is disproportionately aiding higher-income families. About 70% of recipients earn more than $75,000 per year, exceeding the state’s median household income. Data also show that 90% of participating families were already enrolled in private schools rather than transitioning from public education.
Aggregate Funded Ratio for Largest Public Plans: 84.7%, Highest in Study History
While Oklahoma and Washington propose schemes to redirect pension dollars to other priorities, a new analysis from Milliman finds that public pension funding levels have reached the highest average funded status recorded in the study’s history. This continues a multiyear improvement driven by strong investment performance and consistent contributions. The average funded ratio of the largest 100 public plans in the U.S. has increased significantly over the past few years, from 75.1% in the 2024 Millman study to 77.7% in our 2025 study, and, as of November 30, 2025, is estimated at 84.7%. The findings provide an important counterpoint to ongoing narratives portraying defined benefit pensions as financially unstable, demonstrating continued systemwide recovery and resilience.
Reaching a nearly 85% average funded ratio is a product of both strong investment performance and faithful contributions. While most plans have been timely with funding in recent years, that trend is beginning to change. In addition to Oklahoma and Washington, Colorado also floated a proposal this year to rob pension funds and dedicate those dollars to other priorities.
Alaska Teacher of the Year Cites Lack of Defined Benefit Pension as Family Makes Plans to Move.
In a widely circulated op-ed this week, 2018 Alaska Teacher of the Year Ben Walker announced that he and his wife — 2024 Alaska Teacher of the Year Catherine Walker — are leaving the state, concluding Alaska no longer offers a sustainable career path for educators. Walker wrote that Alaska remains the only state in the nation providing teachers neither a defined benefit pension nor Social Security, calling the situation a central driver of the state’s educator retention crisis and broader public workforce shortages.
House Bill 78 would solve this problem, offering a fiscally responsible, stable, and dignified defined benefit (DB) retirement to Alaska’s public servants, including teachers, first responders, and state employees, providing them with a guaranteed lifetime pension. Coalition advocates say HB 78 will stabilize overtime costs, decrease vacancies, and improve retention, all without adding to the state’s unfunded liability. This week, NPPC launched a new advocacy campaign, encouraging Alaska public servants to contact their legislators and tell them that pensions for public workers are smart policy, fiscally sound, and necessary for Alaska to keep great teachers like the Walkers. Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.