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Published on Friday, July 22, 2016

Pension committee discusses merger and rate increases

At a meeting last week, the Select Committee on Pension Policy discussed its study of a potential merger of the LEOFF 1 and TRS 1 retirement systems and potential rate increases. The committee is currently collecting stakeholder input via an online survey. See this previous article for more information. If your city has LEOFF 1 retirees, there is still time to complete the survey before the end of August. During the meeting, AWC staff shared our response to the survey and highlighted some city questions and issues that should be covered in the study.

The committee also considered possible recommendations for rate increases for next fiscal year. The committee makes recommendations to the Pension Funding Council, which adopts the rates. (However, the Legislature may revise the rates.) The committee opted to recommend a rate increase that includes current law requirements to update the investment return assumptions and phase in the second part of updated mortality rate assumption changes. The recommendations to the Pension Funding Council are:

 

Current rate

Proposed 2017-2019 rate

PERS

11.00%

12.52%

PSERS 2

11.36%

11.76%

The full rate presentation is available here. AWC will provide an update after the recommendations have been considered by the Pension Funding Council.

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