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WashingtonSB 53572025-2026 Regular SessionSenate

Concerning actuarial funding of pension systems.

Sponsored By: Steve Conway (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

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

Temporary pension rates for 2025–2027

The law sets temporary contribution rates for 2025–2027. From July 1, 2025 to June 30, 2027, total employer rates are: PERS 5.38%, PSERS 6.91%, and Washington State Patrol 15.85%. Plan 2 member rates for the same period are: PERS 5.38%, PSERS 6.91%, and State Patrol 8.75%. For teachers and school employees, employer and Plan 2 member rates are 7.54% (TRS) and 6.87% (SERS) from September 1, 2025 to August 31, 2027. Apply the listed percent to pensionable pay for member deductions, and to payroll for employer costs.

Employer pension UAAL charges through 2029

Employer rates used only to pay part of Plan 1 unfunded liabilities are set and then pause. For PERS and PSERS employers, the charge is 2.50% in FY ending 2024, 2.00% in FY 2025, and 0.00% in FY 2026–2029; starting July 1, 2029, a 0.50% minimum applies if PERS Plan 1 assets are under 100% of liabilities. For school employers in SERS, the same 2.50%, 2.00%, then 0.00% schedule runs through August 31, 2029; from September 1, 2029, a 0.50% minimum applies on the same PERS Plan 1 funding condition. For TRS employers, the charge is 0.50% in FY ending 2024 and 2025, then 0.00% in FY 2026–2029; from September 1, 2029, a 0.50% minimum applies if TRS Plan 1 assets are under 100%. These percents exclude post‑2009 benefit improvements and are applied to employer pensionable payroll.

New pension funding assumptions and timing

Beginning July 1, 2025, the actuary uses new long‑term numbers: inflation 2.75%, salary growth 3.25%, investment return 7.25%, and membership growth 1.00% for PERS, PSERS, SERS, TRS, and LEOFF. The cost of benefit improvements is paid over 15 years instead of 10. For PERS Plan 1 improvements effective July 1, 2018 to June 30, 2025, that 15‑year charge is set to 0.00% from July 1, 2025 through June 30, 2029. These rules shape future employer and member contribution rates over time.

Sponsors & Cosponsors

Sponsor

  • Steve Conway

    Democratic • Senate

Cosponsors

  • T'wina Nobles

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 239 • No: 50

Senate vote • 4/24/2025

Final Passage as Amended by the House

Yes: 29 • No: 19

House vote • 4/23/2025

Final Passage as Amended by the House

Yes: 82 • No: 14 • Other: 1

House vote • 4/23/2025

Final Passage as Amended by the House on Reconsideration

Yes: 80 • No: 17 • Other: 1

Senate vote • 3/12/2025

3rd Reading & Final Passage

Yes: 48 • No: 0 • Other: 1

Actions Timeline

  1. Effective date 7/1/2025.

    5/20/2025Senate

  2. Chapter 381, 2025 Laws.

    5/20/2025Senate

  3. Governor signed.

    5/20/2025legislature

  4. Delivered to Governor.

    4/27/2025legislature

  5. Speaker signed.

    4/26/2025legislature

  6. President signed.

    4/25/2025legislature

  7. Passed final passage; yeas, 29; nays, 19; absent, 0; excused, 0.

    4/24/2025Senate

  8. Senate concurred in House amendments.

    4/24/2025House

  9. Held for further consideration.

    4/24/2025Senate

  10. Third reading, passed; yeas, 80; nays, 17; absent, 0; excused, 1.

    4/23/2025Senate

  11. Vote on third reading will be reconsidered.

    4/23/2025Senate

  12. Third reading, passed; yeas, 82; nays, 14; absent, 1; excused, 1.

    4/23/2025Senate

  13. Rules suspended. Placed on Third Reading.

    4/23/2025Senate

  14. Floor amendment(s) adopted.

    4/23/2025Senate

  15. Committee amendment not adopted.

    4/23/2025Senate

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

    4/10/2025Senate

  17. Referred to Rules 2 Review.

    4/8/2025Senate

  18. APP - Majority; do pass with amendment(s).

    4/3/2025Senate

  19. APP - Executive action taken by committee.

    4/3/2025Senate

  20. First reading, referred to Appropriations.

    3/14/2025Senate

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

    3/12/2025Senate

  22. Rules suspended. Placed on Third Reading.

    3/12/2025Senate

  23. Floor amendment(s) adopted.

    3/12/2025Senate

  24. 1st substitute bill substituted.

    3/12/2025Senate

  25. Placed on second reading by Rules Committee.

    3/10/2025Senate

Bill Text

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