WA HB1292

Establishes an ongoing annual cost-of-living adjustment (COLA) for Plan 1 retirees of the Teachers' Retirement System (TRS) and Public Employees' Retirement System (PERS), beginning July 1, 2026, based on the Seattle-area Consumer Price Index

COLA adjustments are capped at 3% annually and cannot reduce benefits below the original retirement allowance amount; the initial adjustment also cannot exceed 3%

Provides a one-time 3% benefit increase effective July 1, 2025, for TRS and PERS Plan 1 beneficiaries receiving benefits as of July 1, 2024, with no dollar cap (removing previous $110 caps)

Consolidates costs of prior COLAs (from July 1, 2018 through June 30, 2025) with the new ongoing COLA, amortizing combined costs over a fixed 15-year period to maintain employer contribution rate stability

Takes effect July 1, 2025, and is declared an emergency measure; the legislature explicitly reserves the right to amend or repeal the COLA provisions with no contractual right to future adjustments