Measure 8201 Explained: What Changes, What Doesn’t

Measure 8201 Explained: What Changes, What Doesn’t

AARP is providing this overview to help you understand the proposal, so you can make an informed decision on how to vote.

What is 8201, anyway?

Measure 8201 would change Washington’s constitution so the Washington State Investment Board (WSIB) can invest the state’s Long-Term Care (LTC) Fund—also called WA Cares—in a broader mix of investments, including diversified portfolios that may hold stocks. Under current law, the long-term care fund can only be invested in low-return government bonds and treasury notes.

Why is this coming up now?

Over the years, voters have already allowed similar exceptions for other retirement-related funds—like pensions for teachers, firefighters, and public employees—so WSIB can invest them under fiduciary rules. 8201 would treat the LTC Fund the same way.

The big points, at a glance

• Backed by both parties: There was strong bipartisan support for this constitutional change—a 42-7 vote in the Senate and an 86-9 vote in the House—to allow the WSIB to invest the funds, as it does for dozens of other programs. However, any amendment that changes the state constitution also requires voter approval.
• Earnings stay put: 100% of investment income from Washington’s long-term care fund must remain within the fund and cannot be used or tapped for any other purpose.
• Not a first: Washington has already lifted these limits for several other retirement programs.
• Risk is real; stewardship matters. The stock market can fluctuate; there are no guarantees. However, the WSIB is an independent, non-partisan entity that is one of the top-performing state fund investment managers in the country, averaging over 8% annually.

If it passes, what actually changes?

• How the money’s invested: WSIB could use the same diversified strategies it already uses for other public retirement-related funds.
• Where the money goes: Investment earnings remain dedicated to long-term care benefits and program costs—not anything else.
• What doesn’t change: 8201 doesn’t set WA Cares premiums, benefits, or eligibility. Those are regulated by state law and would still be handled by the Legislature.

Why some people like it

• Potential for more substantial long-term returns than the current, more limited options.
• It could help program stability over time, which some see as helpful for keeping benefits on track or easing pressure on premiums.
• Keeps things consistent with how other state funds are already managed.

Why some people are cautious

• Markets are bumpy: Investments can lose value in some years.
• No promises: Broader investing can improve the odds over the long run, but outcomes aren’t guaranteed.
• Needs ongoing oversight: Diversified portfolios require careful management—something WSIB already does for other funds.

Bottom line

8201 is about how Washington’s Long-Term Care Fund can be invested. If you’re weighing your choice, you might consider the bipartisan support, the rule that earnings can only benefit the LTC Fund, the fact that other retirement programs already have this flexibility, the reality of market risk, and WSIB’s record of managing public money. Reviewing the official voters’ pamphlet and other sources can help you decide what’s right for you.