Intent of Pension Funding

 

The intent of public pension funding in Washington state is to provide a dependable and systematic process for financing the benefits provided by the retirement systems. The six goals of this process are contained in RCW 41.45.010.

 

Goals

 
  1. Continue to fully fund all retirement Plans 2 and 3 as provided by law.

  2. Fully amortize the total costs of LEOFF 1 unfunded liabilities no later than June 30, 2024.

  3. Fully amortize the total costs of PERS 1 and TRS 1 unfunded liabilities within a rolling ten-year period.

  4. Establish long-term employer contribution rates, which will remain a relatively predictable proportion of the future state budgets.

  5. Fund benefit increases for PERS 1 and TRS 1 over a fixed ten-year period.

  6. Fund, to the extent feasible, all benefits for Plan 2 and 3 members over the working lives of those members, so that the cost of those benefits are paid by the taxpayers who receive the benefit of those members' service.