HJR 4219: State's pension obligations

Summary

• Specifies that retirement benefits under retirement plans administered by the State of Washington should be funded over the working lives of plan members.
• Requires contributions for plans open to new entrants that are less than fully funded to represent at least 80 percent of normal cost calculated under the entry age normal cost method.
• Requires that contributions for amortizing the unfunded liabilities in the Public Employees’ Retirement System Plan 1 be no less than 5.25 percent of pay, and for the Teachers’ Retirement System Plan 1 no less than 8 percent of pay until the plans are at least 100 percent funded.
• Requires the Legislature to adopt policies that ensure unfunded liabilities neither re-emerge in the plans closed to new members, nor emerge in the open plans.
• Limits the effective date of Legislative changes to actuarial methods or economic assumptions that reduce long-term annual pension costs to the later of two years following the date of enactment or the beginning of the next fiscal biennium.
• Applies to any defined benefit plan provision except the Judges Retirement System, the Judicial Retirement System, the Law Enforcement Officers’ and Fire Fighters’ Retirement System Plan 1, and the Volunteer Firefighters’ and Reserve Officers’ Relief and Pension Fund.

From the House Bill Analysis 2011 (HJR 4219), written by the Legislature's nonpartisan staff. Read the full report ↗