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Bill

SB 5718

Providing members of the teachers' retirement system plan 3 and school employees' retirement system plan 3 that were never offered a choice of plan 2 the opportunity to irrevocably transfer to plan 2 for future service.

2025-2026 Regular Session Introduced by John Lovick and 1 co-sponsor

Bill allows Washington teachers/school employees in Plan 3 who lacked choice to permanently transfer to Plan 2, addressing historical enrollment inequities in retirement benefits.

By resolution, reintroduced and retained in present status.
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Bill Summary · SB 5718

Legislative bill overview

SB 5718 allows certain Washington state teachers and school employees in retirement Plan 3 who were never given the option to choose Plan 2 to make a one-time, permanent transfer to Plan 2 for their future service contributions. This addresses a historical inequity where some workers were enrolled in Plan 3 without being offered the Plan 2 alternative that was available to their peers.

Why is this important

Retirement plan selection significantly affects lifetime benefits and contribution rates. Workers locked into Plan 3 without choice may face different benefit structures and costs than colleagues in Plan 2, creating fairness concerns. This bill provides a remedial opportunity for affected employees to align their retirement benefits with what they would have chosen had they been offered the choice initially.

Potential points of contention

  • Fiscal impact on state pension systems: Transfers to Plan 2 could increase the state's long-term pension liabilities and require actuarial rebalancing of retirement accounts
  • Identifying eligible employees: Determining which workers were "never offered a choice" requires historical record review and may involve disputes over who qualifies
  • Plan 2 sustainability concerns: If a significant cohort shifts to Plan 2, it could affect the plan's financial stability and contribution structures for all members

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

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