Department of Retirement Systems collects all contribution rates currently in effect, please refer to the following link for more details.
The Pension Funding Council and LEOFF 2 Board adopted contribution rates for the 2021-23 Biennium which can be found in the Projected Contribution Rates table below. These rates are subject to review by the Legislature. The adopted contribution rates for the 2021-23 biennium do not include any COVID-19 impacts as they reflect data and asset returns through June 30, 2019.
To help employers with budgetary planning, we projected contribution rates for the 2023-25 biennium. Under the contribution
rate-setting cycle in current law, the impact of COVID-19 during fiscal years (FYs) 2020 and 2021 on plan experience and assets will be reflected in contribution rates beginning in the 2023-25 biennium. As of the publication of this webpage, we do not reflect any impact to plan experience; however, we do have some information on the impact to assets. These projections include market returns through June 30, 2020.
The employer contributions are expected to decline as soon as the Plan 1 Unfunded Actuarial Accrued Liability (UAAL) is fully funded since the Revised Code of Washington
41.45.150 requires employers to make Plan 1 UAAL contributions until the plans reach 100 percent funded status. As of June 30, 2019, and using the assumptions, methods, data, and assets disclosed in the Disclosures section, we expect the TRS Plan 1 UAAL and PERS Plan 1 UAAL will become fully funded in FYs 2026 and 2027, respectively. However, the expected pay-off date of the UAAL can increase (or decrease) each measurement when actual experience varies from our expectations.
Disclosures: For informational purposes only, our office calculates projected contribution rates based on the most recent AVR, asset returns, and legislative changes. Please see the
projection disclosures for assumptions beyond the AVR.
Please note that the table below is limited because it displays projected contribution rates under a range of simulated
Investment Returns but does not include potential changes to data. The adopted rates for the 2023-25 biennium will be based on a future AVR and reflect updates to data, assets, and any legislative changes. Also, contribution rates may be impacted by a change to our assumptions studied as part of our
Economic Experience Study and a
Demographic Experience Study, conducted every two and six years, respectively.