Whether you support the Long-Term Care Trust Fund or not, it’s critical that we manage its reserves wisely. This year, Democrats and Republicans came together in Olympia to support a common sense measure that protects taxpayers and ensures Washington’s Long-Term Care Trust Fund is managed responsibly. Measure 8201, approved by a bipartisan supermajority of legislators, will align the Long-Term Care Trust Fund’s investment strategy with other successful state funds, like pensions for firefighters and law enforcement.
Measure 8201 allows the fund to be invested in a diversified portfolio, including market-based securities, which financial experts predict could generate an additional $67 billion more over the next 50 years. That’s a conservative estimate — historically, the Washington State Investment Board (WSIB) has outperformed fixed-income securities, government bonds and CDs by at least 3% per year.
The WSIB has a proven track record, managing over $200 billion with an average 8.1% return over the past 25 years. By passing Measure 8201, we’re ensuring the Long-Term Care Trust Fund grows responsibly, keeping premiums low and potentially increasing benefits for Washingtonians without raising taxes.
Measure 8201 also includes protections for taxpayers: 100% of the investment income will be spent only on long-term care services for vulnerable seniors and people with disabilities, ensuring that the fund can’t be diverted for other purposes.
Allowing the reserves from the Long-Term Care Trust Fund to be managed in a diversified portfolio that includes some market-based securities is the best way to ensure that the program maximizes safe, dependable returns during economic upturns and downturns. That’s how individuals responsibly prepare for retirement and how the state should responsibly prepare to serve future beneficiaries of the Long-Term Care Trust Fund.
Measure 8201 will help sustain the Long-Term Care Trust Fund, keep premiums affordable, and ensure benefits for future generations without costing taxpayers a single penny more. It’s no wonder that financial experts say it’s a “no brainer” to approve Measure 8201.
More than 4 million Washingtonians are currently making contributions to the Long-Term Care Trust Fund. It’s important to make sure fund reserves are invested wisely, in a way that keeps premiums low and ensures the sustainability of the benefits in the decades ahead.
We encourage voters across the state to join a broad coalition of organizations, including the Washington State Nurses Association and the Washington State Council of Firefighters, in approving Measure 8201. This is the fiscally responsible choice for Washington’s future.
Senator John Braun (R-Centralia) is a small business owner and the Washington State Senate Republican Leader and Senator Jamie Pedersen (D-Seattle) is the Washington State Senate Majority Leader.
