Frequently Asked Questions About 8201

Amendment 8201 strengthens our long-term care fund, keeping premiums low and growing benefits for aging adults and people with disabilities.

Current law limits investment of the Trust Fund to only low-return choices, like government bonds.

Amendment 8201 allows the Trust Fund to be invested to produce higher returns.

This proven method would be managed by the independent, nonpartisan Washington State Investment Board, which is bound by the highest fiduciary standards.

Under 8201, investment returns cannot be legally spent on any other programs, they must be spent on long-term care.

Even with a conservative 1% additional return rate, this measure is projected to add more than $67 billion dollars over the next 50 years to the benefits fund that Washingtonians rely on, according to an independent actuarial’s projection analysis. 

Amendment 8201 will keep premiums low for working Washingtonians, and could expand benefits for aging adults and people with disabilities.

8201 would allow an independent, nonpartisan board (Washington State Investment Board) that successfully manages $200 billion in Washington’s public pensions and disability funds to administer the long-term care fund, maximizing stability and returns.

Other states, including California, New York, and Oregon, also professionally manage similar long-term public funds with strong results. In each case, professional investment has increased returns, reduced taxpayer risk, and preserved benefits.

The Washington State Investment Board’s strategies take into account market ups and downs, with an average annual 8% return over the last 25 years.

No, because Measure 8201 would allow the State Inv estment Board to invest a portion of only the fund's reserves in equities (stocks), which, historical evidence shows, generate higher returns over the long term. 

Fund reserves are the dollars left after benefit payments and admin costs are taken out each quarter. The majority of the state fund (about 70%) would stay invested in conservative assets like bonds and treasury bills.

Sure, there are dips in the market year to year, even dives like what happened in 2008 and during COVID. With these ups and downs as given, managing public funds for wise, sustainable growth, whether for retirement and pensions, college savings, or other purposes, the record of better long-term returns from a well-diversified portfolio speaks for itself.

A well-managed public fund can return annual investment rates of 6%, 7%, or even more than 8%. In fact, 60-70% of payouts from a defined benefit plan come from investment returns over the service time of the retiring employee. Public benefit plans would not be sustainable or would require very high contribution rates if the fund reserves were restricted to low-return government bonds and treasury bills.  

With hundreds of billions in cuts to Medicaid by Congress, it is even more critical that we shore up and preserve Washington state’s independent long-term care program.

Medicaid is the largest funder of long-term care in the nation, with tens of thousands of vulnerable seniors and people with disabilities reliant on it for access to long-term care in Washington state alone.

8201 will make our long-term care fund more reliable and secure.

A super majority of Democrats and Republicans in the legislature approved this common sense approach to smarter financial management of Washington’s long term care benefits.

They don’t always agree, but both Governor Bob Ferguson and Senate Republican Leader John Braun support this measure to grow this fund for the care of 4 million Washingtonians when they are aging or disabled.

Learn more about who supports 8201.

It’s very important that Washington’s investment strategies reflect Washington’s values. That’s why the investment board is made up of a diverse group of public representatives to hold investors accountable and ensure transparency. 

It will take a year or two for the WSIB to develop an investment plan upon approval of measure 8201. Actuaries will analyze that plan to determine implications for the funds’ long term stability before any change in investments are made. There are opportunities for the public to review and provide feedback on the state’s investment plan.

Other states, including California, New York, and Oregon, also professionally manage similar long-term public funds with strong results. In each case, professional investment has increased returns, reduced taxpayer risk, and preserved benefits.

This measure has bipartisan support from current and past state and county treasurers from across Washington. They know that while there will be ups and downs in the stock market, when we’re investing for the long haul—whether your own retirement account or a public fund—the best strategy is to invest in a mix of stocks and bonds because that almost always gives you a better rate of return over time than investing in just government bonds.