The bill amends RCW 41.45.150 to establish new minimum employer contribution rates for various state retirement systems, specifically the public employees', school employees', and teachers' retirement systems. The new contribution rates are set to be effective from July 1, 2015, to June 30, 2023, with a minimum contribution of 3.50% for the public and public safety employees' retirement systems, and 5.75% for the teachers' retirement system. Additionally, the bill introduces a phased reduction in contribution rates starting July 1, 2023, with specific rates outlined for the fiscal years 2024 through 2027, ultimately establishing a minimum contribution of 0.50% for all three systems by September 1, 2027, if the actuarial value of assets remains below 100% of the actuarial accrued liability.

Furthermore, the bill modifies the state appropriation for the Teachers' Retirement System Plan 1 Fund, reducing the general fund state appropriation from $800 million to $250 million for fiscal year 2023, specifically to address the unfunded actuarial accrued liability. The act is deemed necessary for the immediate preservation of public peace, health, or safety, and is set to take effect on June 30, 2023.

Statutes affected:
Original Bill: 41.45.060, 41.45.030
Substitute Bill: 41.45.150
Engrossed Substitute: 41.45.150
Bill as Passed Legislature: 41.45.150
Session Law: 41.45.150