| Momentum Bucket | Early Stage |
| Legal Title | AN ACT Relating to increasing defined benefit accrual for specified years of service in the state retirement systems; |
| Bill Description | Increasing defined benefit accrual for specified years of service in the state retirement systems. |
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What this bill does
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House Bill 1790 (69th Legislature, 2025) amends existing state retirement statutes to change how defined benefit retirement accruals are calculated for members covered by the cited RCWs. It modifies RCW 41.32.760; 41.32.840; 41.35.400; 41.35.620; 41.40.620; and 41.40.790 to establish or confirm base retirement accrual rates and to add additional accruals for certain years of service.
Specifically, the bill sets base accruals of 2.0% of average final compensation per year of service for the sections identified as RCW 41.32.760, 41.35.400, and 41.40.620, and base accruals of 1.0% per service credit year for RCW 41.32.840, 41.35.620, and 41.40.790. It also adds an extra accrual of 0.5% of average final compensation for each year of service beyond 30 years, but only for years of service earned after the section’s effective date. For members who separate after completing at least 20 service credit years, the retirement allowance payable under statutes that reference RCW 41.32.875, 41.35.680, and 41.40.820 is increased by 0.25% compounded for each month from separation to the date the retirement allowance begins.
The bill modifies existing law rather than creating an entirely new retirement system. Important details are not included in the provided text: the specific effective date(s) for the amendments, statutory definitions of terms used (such as "average final compensation," "service credit year," and "member"), the specific named plans or systems covered beyond the RCW citations, and any fiscal or implementation provisions. The bill was read the first time on 02/03/25 and was referred to the Washington State House Committee on Appropriations.
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Why it matters
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If enacted, the bill would raise future pension accruals for members of the state retirement systems cited by setting new base accrual rates (either 2.0% or 1.0% of average final pay depending on the statute) and adding an extra 0.5% of average final compensation for each year of service beyond 30 years, but only for years earned after the law takes effect. It would also boost the retirement allowance for people who leave with at least 20 years of service by adding a 0.25% increase compounded each month from the date they separate until they begin their retirement benefit. Those changes most directly affect long‑service state retirement plan members — especially those near or past 20 or 30 years of service — who will likely see larger monthly pensions under the new rules.
The practical consequence for the retirement systems and employers is likely higher future pension payouts and increased long‑term liabilities, which could translate into higher contribution requirements or budget pressure for the state or participating employers. The bill text provided does not include an effective date, fiscal estimates, or definitions of key terms, so the timing and magnitude of cost and funding impacts are unclear.
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| Official Documents | View Full Bill Text |
| Date Introduced | 02/03/2025 |
| Originating Chamber | House |
| Biennium | 2025-26 |
| Total Campaign Dollars Backing Bill | $473,633.84 |
| RETIREMENT AND PENSIONS |