The bill amends various sections of Washington state retirement system laws to improve the actuarial funding of pension systems. It establishes a systematic funding process aimed at fully amortizing costs associated with the law enforcement officers' and firefighters' retirement system plan 1 by June 30, 2024, and addresses unfunded actuarial liabilities in the public employees' and teachers' retirement systems over a rolling ten-year period. The bill also introduces a suspension of contribution rates during the 2025-2027 and 2027-2029 fiscal biennia and mandates that costs for benefit improvements in the public employees' and teachers' retirement systems be amortized over a fixed 15-year period.

Additionally, the bill revises long-term economic assumptions, lowering growth rates for inflation, salaries, investment returns, and system membership. It clarifies employer contribution rate calculations to ensure they meet necessary funding levels and amends laws regarding supplemental rates charged to employers, changing the calculation period for adjustments from ten years to fifteen years. New minimum employer contribution rates are set for various retirement systems from July 1, 2023, to June 30, 2029, with a gradual decrease over the years. The act 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: 41.45.010, 41.45.060, 41.45.030
Bill as Passed Legislature: 41.45.010, 41.45.035, 41.45.060, 41.45.030, 41.45.150
Session Law: 41.45.010, 41.45.035, 41.45.060, 41.45.030, 41.45.150