Bill > HB1292

This bill provides ongoing cost-of-living adjustments (COLAs) for Plan 1 retirees in the Teachers' Retirement System and Public Employees' Retirement System. Starting July 1, 2024, retirees will receive a 3% annual increase to their monthly benefits. Beginning July 1, 2026, the annual COLA will be calculated based on the Consumer Price Index for the Seattle area, with several important restrictions: the adjustment cannot reduce the original retirement allowance, cannot exceed 3% in the initial adjustment, and cannot differ from the previous year's adjustment by more than 3%. The bill introduces a unique funding approach, consolidating the costs of prior and new COLAs and amortizing them over a 15-year period, which differs from the previous 10-year amortization period for benefit improvements. This approach is intended to help manage costs while supporting employer contribution rate stability. The legislature specifically reserves the right to amend or repeal these provisions in the future, and no member or beneficiary has a contractual right to receive postretirement adjustments not previously granted. The bill takes effect on July 1, 2025, and is deemed necessary for the immediate preservation of public peace, health, safety, and support of state government.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1292&Year=2025&Initiative=false