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Bill

HB 1459

Providing an annual adjustment in the public employees' retirement system and teachers' retirement system plan 1 benefits capped at $110 per month by adjusting the long-term investment rate of return assumption.

2023-2024 Regular Session Introduced by Jess Bateman and 15 co-sponsors

Bill caps annual pension benefit increases at $110/month for Washington public employees and teachers by adjusting investment return assumptions in Plan 1 retirement calculations.

By resolution, reintroduced and retained in present status.
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Bill Summary · HB 1459

Legislative bill overview

HB 1459 proposes to provide annual benefit adjustments for public employees and teachers in Washington's retirement systems (Plan 1) with a maximum increase of $110 per month. The adjustment mechanism would be funded by modifying the long-term investment rate of return assumption used in actuarial calculations for these pension systems.

Why is this important

Public pension beneficiaries, particularly retirees on fixed incomes, face the erosive effects of inflation over decades of retirement. This bill directly addresses purchasing power loss by indexing benefits to inflation, though at a capped amount. The funding mechanism—adjusting investment return assumptions—affects how much money the state and employers must contribute to maintain the pension systems' solvency.

Potential points of contention

  • Funding sustainability: Lowering investment return assumptions increases required employer/state contributions, raising questions about long-term budget impact and whether the $110 cap adequately reflects actual inflation
  • Equity concerns: A flat $110 monthly cap may disproportionately benefit lower-income retirees while providing minimal help to those with higher pensions, creating disparate outcomes
  • Investment assumption changes: Altering actuarial assumptions is technically complex; critics may argue this masks budget problems, while supporters contend it reflects more conservative, realistic market expectations

Compiled from official sources — confirm details with the bill’s official record.

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