PERS 1 COLA passes, but few other pension changes

PERS 1 cost of living adjustments (COLAs) were approved by the Legislature, but no other significant changes were made this session to the pension systems.

There were multiple competing bills to provide PERS 1 and TRS 1 cost of living adjustments for retirees. During the recession, the statutory COLAs that retirees had been receiving were repealed. After a decision at the state Supreme Court solidified the repeal, retiree groups have been actively advocating the Legislature for the reinstitution of some form of COLA.

This year the groups succeeded and the Legislature passed SB 6340, which provides a one-time, 1.5 percent COLA for PERS 1 and TRS 1 retirees with the annual increase capped at $750.

AWC’s next steps

AWC will:

• Continue to monitor and engage with the Select Committee on Pension Policy, Pension Funding Council, and the LEOFF 2 board; and
• Develop an action plan related to the LEOFF 2 third-party budget proviso.