Several important pensions policies made the cut this session, with impacts on cities. This includes a one-time, 3% cost-of-living-adjustment for PERS 1 retirees. AWC expressed concerns about this bill because it relies on continuing local governments’ unfunded liability surcharge to fund the COLA, rather than using the state’s ample general fund surplus.
The Legislature also passed benefits enhancements for the LEOFF 2 and LEOFF 1 retirement systems. These benefits enhancements will offer additional pensions benefits to career law enforcement and firefighters, but should not impact cities, since both plans 1 and 2 are currently in surplus and have the ability to pay for enhancements without additional employer contributions.
You can see more about which pensions bills did and didn’t pass in our 2022 bill chart below.
Bill # | Description | Status |
|---|
HB 1669 | Allows totally disabled PERS plan members to get disability benefits up to 70% of their final average salary. | Law; effective 6/9/2022. |
HB 1701 | Creates new benefits enhancements, including a lump sum benefit or an increasing benefits multiplier, for LEOFF 2 members. | Law; effective 6/9/2022. |
HB 1752 | Requires the state to offer post-tax ROTH options to public employees using deferred compensation plans. | Law; effective 6/9/2022. |
SB 5676 | Gives a one-time 3% COLA to PERS 1 members. | Law; effective 7/1/2022. |
SB 5791 | Creates a new lump sum benefit enhancement for LEOFF 1 members. | Law; effective 6/9/2022. |
HB 1804 | Expanding eligibility for interruptive military service credits for a wider range of public retirement plan members. | Did not pass. |