Lawsuit filed over WA police and firefighter pension fund

Retired Washington police officers and firefighters, including former Congressman Dave Reichert, have filed a federal lawsuit to block a new state law that would transfer nearly $4 billion from their overfunded pension fund to help cover budget shortfalls. - The law terminates the LEOFF 1 pension account by June 2029, reducing funding from 160% to 110% of expected obligations.

- Plaintiffs argue the move violates constitutional contract clauses and leaves pensions vulnerable to market downturns. - The state plans to use $880 million from the surplus to backfill the rainy day fund and address a $2 billion budget gap.

- The lawsuit is believed to be the first challenge to a state terminating a public employee pension plan, requiring IRS approval. The case highlights tensions between state budget needs and pension protections for first responders, with legal battles expected in both federal and state courts.