The bill amends several sections of Washington state retirement system laws to enhance the actuarial funding of various pension systems. Key provisions include the establishment of 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 addressing unfunded actuarial accrued liabilities in the public employees' and teachers' retirement systems over a rolling ten-year period. The bill 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 used by the state actuary, lowering growth rates for inflation, salaries, investment returns, and system membership. It clarifies the calculation of employer contribution rates to ensure they adequately fund the retirement systems while allowing for legislative adjustments. The bill also changes the calculation period for supplemental rates charged to employers from ten years to fifteen years and sets minimum contribution rates for various retirement systems from July 1, 2023, to June 30, 2029. These amendments aim to improve the financial stability and predictability of the state's pension systems and are 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