Some members have asked whether a recent court decision involving the Teachers' Retirement System (TRS) Plan 3 could affect other Washington public employee retirement plans, including the School Employees' Retirement System (SERS) or the Public Employees' Retirement System (PERS).
PSE has been monitoring this issue closely and has been in contact with labor partners and public retirement experts to better understand any implications of the court's decision.
Based on the information available today, the issue appears to be limited to TRS Plan 3. At this time, there is no indication that similar actions affected SERS, PERS, or any other Washington public employee retirement plan.
The case centers on interest and investment earnings that were transferred from TRS 3 accounts many years ago. It is the result of a legal dispute that has been working its way through the Thurston County courts for more than 20 years.
One possible reason this issue is unique to TRS 3 is that Washington's three Plan 3 retirement systems were created at different times and under different economic conditions:
- TRS Plan 3 was established in July 1996.
- SERS Plan 3 was established in September 2000, when the School Employees' Retirement System was created and all active school employees transitioned from PERS 2 to the new SERS retirement program.
- PERS Plan 3 was established in March 2002.
Because these events occurred decades ago, there are relatively few people who were directly involved and can provide firsthand information. PSE will continue working with our labor partners and retirement experts to learn more about the decision and its implications.
At this time, everything we have learned indicates the court's decision affects only approximately 26,000 current, former, and retired members of TRS Plan 3. It does not appear to affect members of SERS, PERS, or other Washington public employee retirement systems.
PSE will continue to monitor this situation closely. If new information becomes available that affects our members, we will provide updates as soon as possible.
You can read more here about the court decision at The Center Square.