The bill amends Washington state retirement system laws to improve the actuarial funding processes for public employee retirement systems. A significant change is the introduction of a provision that requires the amortization of costs associated with benefit improvements in the public employees' retirement system plan 1 and the teachers' retirement system plan 1 over a rolling 15-year period. Additionally, the bill adjusts employer contribution rates for various retirement systems to ensure full funding and amortization of unfunded liabilities, with specific rates established for the public employees', public safety employees', teachers', and school employees' retirement systems.

Moreover, the bill sets specific contribution rates for various retirement systems for the period from July 1, 2025, to June 30, 2026, including a 16.35 percent employer contribution rate for the Washington State Patrol Retirement System and a zero percent member contribution rate for the Law Enforcement Officers' and Firefighters' Retirement System Plan 1. The bill also includes a provision emphasizing the necessity for immediate action to preserve public peace, health, or safety, indicating the urgency of these changes to support the stability of the state's public institutions. The overall goal is to ensure the long-term sustainability and predictability of employer contribution rates while addressing unfunded liabilities and benefit improvements systematically.

Statutes affected:
Original Bill: 41.45.010, 41.45.060, 41.45.030