The governor of the state of Washington signed into law pension reform that would cut how much the state pays certain retirees in their pension plans. But some workers say they could seek legal action to protect cost-of-living increases in their retirement plan.
The scenario shows the importance for public sector workers to protect their retirement with a life insurance policy, especially with recent legislation threatening their earning power into retirement. In an effort to cut spending by $7 billion over the next 25 years, Governor Christine Gregoire signed into law legislation that would pull back cost-of-living increases on certain retirement plans for state employees. But those employees say the state may be breaking the law by reneging on those funds, reported the Olympian.
"We may contest the entire thing [in court],'' Cassandra de la Rosa, executive director for the Retired Public Employees Council, told the paper. "It'll be no later than July. We'll talk to the board, and we plan to have a discussion on it. Then we'll decide what our next steps will be."
A lack of cost-of-living adjustments to Social Security has also affected seniors' retirement plans, putting increased importance on the purchase of a life insurance policy to protect one's interests late in life.