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WashingtonHB 12702025-2026 Regular SessionHouseWALLET

Concerning automatic deferred compensation enrollment for county, municipal, and other political subdivision employees.

Sponsored By: Dan Bronoske (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Deferred pay still counts for pensions

Pay you defer into the state 457 or 401(a) plan still counts as regular pay for pension calculations. You can defer pay and stay a member of a public pension system at the same time. Your pensionable earnings and benefit accrual are not reduced by using these savings plans.

Automatic retirement saving for new public hires

Beginning January 1, 2017, new full-time state employees are enrolled in the state deferred compensation plan by default. You can opt out or choose a different rate; if you do nothing, 3% of your taxable pay is deferred and invested in the plan’s default option set by the State Investment Board. Student employees at public colleges are excluded from this state auto-enrollment. Local governments that use the state plan may also auto-enroll new hires on an opt-out basis; those with their own plans may auto-enroll under their plan rules. The law defines “employee” for plan eligibility to include full-time, part-time, and career seasonal workers, plus elected and appointed officials, judges, and legislators.

How the state invests your savings

The State Investment Board invests money in the state 457 and 401(a) plans under state law and board policy. Retirement strategy funds may also use pooled “commingled” funds the board manages. The law lets deferred pay be placed in banks or credit unions, insurance and annuities, investment company shares, securities, and similar vehicles. These rules broaden where savings can be invested and provide professional management, though pooling can affect diversification and fees.

Roth option and choose your investments

Beginning December 1, 2023, the state deferred compensation plan offers a Roth option. You can make after-tax contributions and get tax-free qualified withdrawals under federal Roth rules. If you are in the state 457 or 401(a) plan, you must choose how to invest your money. The State Investment Board provides a menu of options you can pick from.

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Sponsors & Cosponsors

Sponsor

  • Dan Bronoske

    Democratic • House

Cosponsors

  • Cindy Ryu

    Democratic • House

  • Cyndy Jacobsen

    Republican • House

  • Dave Paul

    Democratic • House

  • Davina Duerr

    Democratic • House

  • Julia Reed

    Democratic • House

  • Nicole Macri

    Democratic • House

  • Sharlett Mena

    Democratic • House

  • Shelley Kloba

    Democratic • House

  • Tarra Simmons

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 143 • No: 0

Senate vote • 4/15/2025

3rd Reading & Final Passage

Yes: 48 • No: 0 • Other: 1

House vote • 2/6/2025

3rd Reading & Final Passage

Yes: 95 • No: 0 • Other: 3

Actions Timeline

  1. Effective date 7/27/2025.

    4/24/2025House

  2. Chapter 154, 2025 Laws.

    4/24/2025House

  3. Governor signed.

    4/24/2025legislature

  4. Delivered to Governor.

    4/21/2025legislature

  5. President signed.

    4/18/2025legislature

  6. Speaker signed.

    4/16/2025legislature

  7. Third reading, passed; yeas, 48; nays, 0; absent, 0; excused, 1.

    4/15/2025House

  8. Rules suspended. Placed on Third Reading.

    4/15/2025House

  9. Placed on second reading by Rules Committee.

    4/7/2025House

  10. Passed to Rules Committee for second reading.

    3/26/2025House

  11. WM - Majority; do pass.

    3/24/2025House

  12. First reading, referred to Ways & Means.

    2/7/2025House

  13. Third reading, passed; yeas, 95; nays, 0; absent, 0; excused, 3.

    2/6/2025House

  14. Rules suspended. Placed on Third Reading.

    2/6/2025House

  15. Rules Committee relieved of further consideration. Placed on second reading.

    2/5/2025House

  16. Referred to Rules 2 Review.

    1/29/2025House

  17. APP - Executive action taken by committee.

    1/27/2025House

  18. APP - Majority; do pass.

    1/27/2025House

  19. First reading, referred to Appropriations.

    1/14/2025House

  20. Introduced

    1/14/2025House

Bill Text

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