The bill amends Washington state retirement system laws to improve the actuarial funding processes for public employee retirement systems. A significant change is the 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, including 7.91% for the public employees' retirement system and 9.05% for the teachers' retirement system, effective from July 1, 2025, to June 30, 2026. Additionally, it mandates the state actuary to provide updated actuarial valuation results, ensuring that employer contribution rates are adjusted based on the funded status of each plan.

Moreover, the bill sets specific contribution rates for various retirement systems, including a 16.35% employer contribution rate for the Washington State Patrol Retirement System and member contribution rates for other systems, such as 5.86% for the Public Employees' Retirement System Plan 2 and 7.95% for the Teachers' Retirement System Plan 2. Notably, the member contribution rate for the Law Enforcement Officers' and Firefighters' Retirement System Plan 1 will be zero percent during this period. The legislation emphasizes the need for financial stability in these retirement systems while addressing the contributions of public employees, and it is deemed necessary for the immediate preservation of public peace, health, or safety, taking effect on July 1, 2025.

Statutes affected:
Original Bill: 41.45.010, 41.45.060, 41.45.030