On July 25, the Select Committee on Pension Policy adopted new rates that will be effective next year on July 1, 2013. There is a significant increase in PERS 2 rates for employers and a modest PERS 2 rate increase for employees. This will put additional pressure on the new biennium’s state budget, as well as result in a small decrease in take home pay for employees under PERS 2.
These pension fund increases are due to the unfunded anticipated liability for PERS 1, low rates of return, and the legislature’s goal of catching up the PERS Plan 1 by June 30, 2024. (All PERS pension funds are pooled together.)
Legislative action to reduce these rates is unlikely. This is because any reductions or deferrals will cause these pensions to get even further behind in future bienniums.
Below is a table showing the current and future contribution rates among many of the state’s retirement systems, including Public Employees' Retirement System (PERS), Teachers' Retirement System (TRS), School Employees' Retirement System (SERS), Public Safety Employees' Retirement System (PSERS), and Washington State Patrol Retirement System (WSPRS).
For additional information, go to the Department of Retirement Systems website.
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