The bill seeks to implement ongoing cost-of-living adjustments (COLAs) for retirees under Plan 1 of the Teachers' Retirement System and the Public Employees' Retirement System in Washington State. It introduces a new funding policy that consolidates the costs of previous COLAs with the new ongoing adjustments, which will be financed over a 15-year period. The legislation specifies that future benefit improvements will be amortized over a fixed 10-year period and establishes specific COLA increases for beneficiaries based on their retirement dates, with adjustments ranging from 1.5% to 3% of their monthly benefits, subject to maximum caps. New sections are added to both retirement systems to detail the methodology for annual adjustments based on the consumer price index, ensuring that adjustments do not fall below the original retirement allowance or exceed certain limits.

Additionally, the bill modifies existing laws regarding employer contribution rates, allowing for the amortization of costs related to benefit improvements over a fixed 15-year period for adjustments effective from July 1, 2025. It mandates that supplemental rates be charged to cover the costs of benefits granted under specific sections of the act, calculated as a level percentage of pay over the same 15-year period. The responsibilities of the council and the state actuary in determining and notifying relevant parties of the adopted employer contribution rates are also outlined. The bill is deemed necessary for the immediate preservation of public peace, health, or safety, and is set to take effect on July 1, 2025.

Statutes affected:
Original Bill: 41.32.4992, 41.32.489, 41.45.060, 41.45.030