Contribution rates projections

Under current law, contribution rates are adopted every two years and follow the rate-setting process displayed in the table below.

Contributions are collected by the Department of Retirement Systems (DRS). The current (and historical) contribution rates are available on the DRS Website.

In the following table, we provide the adopted contribution rates for the 2025-27 biennium and the projected contribution rates for the 2027-2029 biennium. These contribution rates are based on our most recent projections model as of the publication date of this webpage, the 2023 Valuation Projections Model. The data, assets, assumptions, and methods used in this model are summarized on our Projections Model and Assumptions webpage.

For these projected contribution rates, we use the labels “Best Estimate”, “Optimistic”, and “Pessimistic”.

• “Best Estimate” contribution rates represent the outcome where future experience precisely matches our expectations.
• “Optimistic” and “Pessimistic” contribution rates were produced by simulating 2,000 scenarios of randomized investment earnings from the distribution summarized here and selecting the 25th and 75th percentiles, respectively, from this scenario output. However, there are factors other than investment earnings that can also impact future contribution rates. These include, but are not limited to, experience not matching demographic projections, changes to assumptions/methodology, changes to plan provisions, or the Legislature adopting different contribution rates. For these reasons, the actual contribution rates collected in the future may fall outside the range provided in the table.

We prepared the Contribution Rate Projections webpage to assist employers in budgetary planning by providing estimates for future contribution rates. Use of these projected rates for other reasons may not be appropriate. We believe the set of data, assets, assumptions, and methods are reasonable, but use of another set may also be reasonable and might produce different results. We expect this webpage will be updated during the Fall of each year when a new Projections Model is developed. At that time, any previous versions of this webpage will become outdated, and we advise you to not rely on those outdated results. In addition, projected contribution rates may become outdated when the Pension Funding Council and LEOFF 2 Board adopt contribution rates for the upcoming biennium in July of even numbered years. Kyle Stineman (ASA, MAAA) meets the Qualification Standards of the American Academy of Actuaries; he served as the reviewing and responsible actuary for the Projected Contribution Rates webpage. Please see the Projections Model and Assumptions webpage for additional disclosures and for the actuarial certification.