This bill seeks to address funding disparities among three closed retirement plans in Washington state: the law enforcement officers' and firefighters' retirement system plan 1, the teachers' retirement system plan 1, and the public employees' retirement system plan 1. It proposes merging these plans into a new entity called the legacy retirement system, which will consist of three tiers corresponding to the original plans. The merger aims to improve the funded status of the teachers' and public employees' retirement systems while ensuring sustainable funding for the law enforcement officers' and firefighters' retirement system. Key provisions include the establishment of a legacy retirement system account, the closure of the individual funds for the original plans, and protections for current members' benefits post-merger.

Additionally, the bill introduces a supplemental benefit fund for higher education retirement plans, mandates annual adjustments to retirement allowances based on consumer price indices, and clarifies definitions related to retirement systems. It also revises the allocation of contributions to replace references to "plan 1" with "legacy retirement system" accounts and establishes specific employer contribution rates for various retirement systems. The bill emphasizes the rights of nonparticipant spouses regarding community property interests in employee benefit plans and outlines the management of the treasury income account. Overall, the legislation aims to enhance the management and funding of retirement benefits for public employees and educators while ensuring financial stability and clarity within the retirement system.

Statutes affected:
Original Bill: 41.50.030, 41.50.075, 41.50.110, 41.32.4992, 41.32.489, 41.40.1984, 41.45.020, 41.45.035, 41.45.050, 41.45.060, 41.45.070, 41.45.150, 41.45.200, 41.45.203, 41.45.207, 41.40.330, 11.96A.220, 41.04.445, 41.04.450, 41.04.803, 41.05.320, 41.24.400, 41.50.080, 41.50.235, 41.50.255, 41.50.500, 41.54.010, 41.54.040