This bill amends various sections of Washington state retirement system laws to improve the actuarial funding processes for several pension systems, including the public employees' retirement system, teachers' retirement system, and law enforcement officers' and firefighters' retirement systems. A significant change is the new requirement to amortize the costs of benefit improvements in the public employees' retirement system plan 1 and the teachers' retirement system plan 1 over a rolling 15-year period, extending from the previous ten-year period. The bill also establishes specific employer contribution rates for different retirement systems, effective from July 1, 2025, to June 30, 2026, with detailed percentages allocated for addressing unfunded actuarial accrued liabilities.

Additionally, the bill revises the contribution rates based on updated projections of each plan's funded status, ensuring a gradual adjustment to actuarial assumptions regarding long-term rates of return. For example, the basic employer contribution rates for the public employees' retirement system and the public safety employees' retirement system are set at 7.91% and 9.16%, respectively, while the law enforcement officers' and firefighters' retirement system plan 1 will have a contribution rate of zero percent during this period. The bill also specifies member contribution rates for various plans, including 5.86% for the Public Employees' Retirement System Plan 2 and 7.95% for the Teachers' Retirement System Plan 2. Importantly, the bill includes a provision for immediate effect on July 1, 2025, to ensure the preservation of public peace, health, or safety.

Statutes affected:
Original Bill: 41.45.010, 41.45.060, 41.45.030