It is the intent of
the legislature to provide a dependable and systematic process
for funding the benefits provided to members and retirees of the
public employees' retirement system, chapter 41.40 RCW; the
teachers' retirement system, chapter 41.32 RCW; the law
enforcement officers' and firefighters' retirement systems,
chapter 41.26 RCW; the school employees' retirement system,
chapter 41.35 RCW; the public safety employees' retirement
system, chapter 41.37 RCW; and the Washington state patrol
retirement system, chapter 43.43 RCW.
The legislature finds that the funding status of the state
retirement systems has improved dramatically since 1989. Because
of the big reduction in unfunded pension liabilities, it is now
prudent to adjust the long-term economic assumptions that are
used in the actuarial studies conducted by the state actuary.
The legislature finds that it is reasonable to increase the
salary growth assumption in light of Initiative Measure No. 732,
to increase the investment return assumption in light of the
asset allocation policies and historical returns of the state
investment board, and to reestablish June 30, 2024, as the target
date to achieve full funding of all liabilities in the public
employees' retirement system plan 1, the teachers' retirement
system plan 1, and the law enforcement officers' and
firefighters' retirement system plan 1.
The funding process established by this chapter is intended
to achieve the following goals:
(1) To fully fund the public employees' retirement system
plans 2 and 3, the teachers' retirement system plans 2 and 3, the
school employees' retirement system plans 2 and 3, the public
safety employees' retirement system plan 2, and the law
enforcement officers' and firefighters' retirement system plan 2
as provided by law;
(2) To fully amortize the total costs of the public
employees' retirement system plan 1, the teachers' retirement
system plan 1, and the law enforcement officers' and
firefighters' retirement system plan 1, not later than June 30,
2024;
(3) To establish long-term employer contribution rates which
will remain a relatively predictable proportion of the future
state budgets; and
(4) To fund, to the extent feasible, benefit increases for
plan 1 members and 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.
[2005 c 370 § 4; (2005 c 370 § 3 expired July 1, 2006); 2004 c 242 § 36; 2002 c 26 § 3; 2001 2nd sp.s. c 11 § 2; (2001 2nd sp.s. c 11 § 1 expired March 1, 2002); 2000 c 247 § 501; 1998 c 341 § 401; 1995 c 239 § 305; 1989 c 273 § 1.]
NOTES:
Effective date -- 2005 c 370 §§ 2 and 4: See note following RCW 41.45.060.
Effective date -- 2005 c 370 §§ 1, 3, and 6: See note following RCW 41.45.060.
Expiration date -- 2005 c 370 §§ 1 and 3: See note following RCW 41.45.060.
Effective date -- 2004 c 242: See RCW 41.37.901.
Expiration date -- 2001 2nd sp.s. c 11 §§ 1 and 7: "Sections 1, 7, and *18 of this act expire March 1, 2002." [2001 2nd sp.s. c 11 § 20.]
*Reviser's note: Section 18 of this act was vetoed.
Effective date -- 2001 2nd sp.s. c 11: "Sections 2, 3, 4, 8, 13, 14, and 16 of this act take effect March 1, 2002." [2001 2nd sp.s. c 11 § 21.]
Effective date -- 2001 2nd sp.s. c 11: See note following RCW 41.45.030.
Effective dates -- Subchapter headings not law -- 2000 c 247: See RCW 41.40.931 and 41.40.932.
Effective date -- 1998 c 341: See RCW 41.35.901.
Intent -- Purpose -- 1995 c 239: See note following RCW 41.32.831.
Effective date -- Part and subchapter headings not law -- 1995 c 239: See notes following RCW 41.32.005.
Benefits not contractual right until date specified: RCW 41.34.100.