Senate Bill 5927 amends existing workers' compensation statutes (RCW 51.32.072 and RCW 51.32.075) to limit future annual cost-of-living adjustments used in certain pension and compensation calculations to no more than 3.0 percent beginning July 1, 2026. The bill includes legislative findings stating the legislature's intent to implement a three percent adjustment cap solely for pension calculations. This is a statutory modification of existing law, not the creation of a new crime or penalty. Under the amended language, adjustments that were made annually July 1, 2012 through June 30, 2026 continue to be calculated as the percentage change in the state's average monthly wage for the preceding calendar year (rounded to the nearest whole cent). Beginning July 1, 2026, adjustments remain based on the same percentage change but are expressly capped at 3.0 percent (rounded to the nearest whole cent). The bill also restates that compensation due for July 1, 2011 through June 30, 2012 must be paid based on the average monthly wage computed on July 1, 2010, and that for claims with rights established on or after July 1, 2011 no adjustment under RCW 51.32.075(4) is made until the second July 1st following the date of injury or disease manifestation. The amendments affect persons receiving pensions or compensation under pre-July 1, 1971 schedules (including surviving spouses and permanently or temporarily totally disabled workers), claimants whose rights were established on or after July 1, 1971, the department (as the statutorily referenced agency), self-insurers, and related funds (supplemental pension fund, pension reserve, and accident fund). The text cites RCW 51.08.018 for the computation of the average monthly wage and references RCW 51.36.010, but those cross-referenced provisions are not included here. The bill header indicates a new section is created, but that new section’s text and an overall effective date for the act are not included in the provided material.

If enacted, the bill will limit annual cost-of-living increases for certain workers’ compensation pensions and scheduled payments to no more than 3.0 percent starting July 1, 2026, so surviving spouses, permanently and temporarily totally disabled workers, and claimants whose rights were established on or after July 1, 1971 will likely get smaller yearly increases than they would if adjustments followed full wage growth. That will lower payment obligations for the department, self-insurers, and the listed funds (supplemental pension fund, pension reserve, accident fund), reducing their future costs but also slowing the growth of recipients’ benefits in years when the state’s average wage rises more than three percent. The text continues current practices of annual adjustments made since 2012 and preserves timing rules such as using the July 1, 2010 wage for 2011–2012 payments and delaying some adjustments until the second July 1 after a newer claim’s injury date. Important details are missing here: the bill’s overall effective date, the exact agency referred to as “the department,” and the precise method for computing the state average monthly wage (which is set in another statute), so some administrative and budgeting impacts remain uncertain.