WA SB5357

Updates long-term economic assumptions for state pension actuarial calculations effective July 1, 2025: inflation reduced from 3.5% to 2.75%, salary growth from 4.5% to 3.25%, investment return from 8% to 7.25%, and system membership growth from 1.25% to 1.00%

Suspends employer contribution rates for amortizing Plan 1 unfunded liabilities during the 2025-2027 and 2027-2029 fiscal biennia, setting rates at 0.00% for public employees', school employees', and teachers' retirement systems during this period

Extends the amortization period for Plan 1 benefit improvements from 10 years to 15 years for public employees' retirement system and teachers' retirement system

Sets specific employer and member contribution rates for July 2025 through June/August 2027, including 5.38% for public employees' retirement system, 7.54% for teachers' retirement system, 6.87% for school employees' retirement system, and 15.85% employer/8.75% member for Washington state patrol retirement system

Declared an emergency measure, effective July 1, 2025, passed with bipartisan support (Senate 29-19, House 80-17) and signed by Governor Ferguson on May 20, 2025