The Pension Funding Council and the LEOFF 2 Board both met in July and recommended no change in pension rates for PERS and LEOFF 2 for the 2023-2025 biennium.
The Pension Funding Council oversees rate setting for the PERS and other state pension programs while the LEOFF 2 Board oversees rates for the LEOFF 2 system.
The Pension Funding Council considered data from the State Actuary that showed the possible need for a modest increase in rates for 2023-25, but looking further out indicated a rate decrease. By holding rates steady for the coming year, the Council is
recommending a smoothing approach that would keep rates steady without an increase now and smaller decrease in the future.
The LEOFF 2 Board had previously recommended holding rates steady, and legislation passed in 2022 regarding benefit enhancements also temporarily froze rates.
The recommended employer rates for 2023-25 are as follows:
Employer rates | Current rates – No change for 2023 |
|---|
PERS | 10.21% |
PSERS 2 | 10.45% |
LEOFF 2 | 5.12% |
Note: Rates exclude the current administrative expense rate of 0.18%
The recommended employee rates for 2023-25 are as follows:
Employee rates | Current rates – No change for 2023 |
|---|
PERS | 6.36% |
PSERS 2 | 6.60% |
LEOFF 2 | 8.53% |
AWC will continue to monitor how the Legislature addresses pension rates in the 2023 session. The Legislature has the ability to deviate from these recommendations, but generally doesn’t. Additionally, there could be legislation that would impact
rates such as an increase in COLAs for PERS 1.