While many states and cities are looking for a way to cut the costs associated with their public retirement systems, one state senator from Washington wants to offer a cash incentive to get the job done.
State employees who agree to move from the traditional pension fund to a 401(k) type system would receive $10,000 under a bill introduced by Sen. Doug Ericksen, a Republican.
The proposal comes shortly after machinists for Boeing agreed to move from a defined benefits plan to a defined contributions retirement system in exchange for a cash bonus of $10,000. The incentive will be paid to 31,000 workers in Washington and Oregon.
Ericksen took his inspiration from Boeing’s plan switch, telling the Seattle Times, “If it’s good enough for Boeing, it should be good enough for the employees of Washington state.”
Ericksen’s bill would cap state costs at $20 million, meaning 2,000 state employees could sign up for the incentive.