The Pension Funding Council (PFC) is responsible for setting basic pension contribution rates and various long-term economic assumptions for most of the state's open pension systems.  In odd-numbered years, the PFC adopts long-term economic assumptions, such as the assumed rate of return, that are used to value liabilities and assets of the systems.  In even-numbered years, the PFC adopts pension contribution rates for the subsequent fiscal biennium based on the adopted assumptions and updated actual experience.  Pension contribution rates set by the PFC may be changed by the Legislature.

The following rates were adopted by the PFC on July 17, 2024, for the 2025-2027 fiscal biennium.  The employer unfunded actuarial accrued liability (UAAL) rates shown here are a combination of base UAAL rates that are specified in statute and supplemental rates for benefit improvements enacted prior to July 17, 2024.

The Public Employees' Retirement System Plan 1 (PERS Plan 1) and the Teachers' Retirement System Plan 1 (TRS Plan 1) closed to new members in 1977.  When the PERS and TRS Plans 1 were closed, they were significantly underfunded.  The unfunded portion of the funded status of PERS and TRS Plans 1 has been amortized over a rolling 10-year period through a UAAL rate paid by employers for all employees covered by PERS, TRS, the School Employees' Retirement System (SERS), and the Public Safety Employees' Retirement System (PSERS) Plans 2 and 3, as well as employees in PERS and TRS Plans 1.  

PERS Plan 1 is projected to reach a nominal fully funded status at the end of fiscal year (FY) 2027, and Plans 2 and 3 employers will pay a UAAL rate of 1.5 percent in FY 2026 and 0.5 percent in FY 2027.  TRS Plan 1 is projected to reach a nominally fully funded status at the end of FY 2025, and the UAAL rate for that system will be retired at that time.

When PERS and TRS Plans 1 benefit increases are enacted, the cost is paid through a supplemental pension contribution rate paid by employers for employees covered by PERS, TRS, SERS, and PSERS Plans 2 and 3 over a fixed 10-year period.

Five PERS Plan 1 and TRS Plan 1 benefit increases were enacted between 2018 and 2024, resulting in supplemental rate increases.  The current supplemental benefit enhancement rate for PERS Plan 1 is 0.55 percent and for TRS Plan 1 is 1.1 percent.  Both rates will start to decrease beginning in FY 2029 and be completely retired after FY 2034.

The supplemental pension contribution rate for PERS and TRS Plans 1 benefit improvements enacted between 2009 and 2024 are reamortized over a 15-year period.

The cost of new PERS and TRS Plans 1 benefit improvements will be amortized over a fixed 15-year period instead of the current 10-year period.

The Plans 2 and 3 employer contribution rates adopted by the PFC on July 17, 2024, are modified as follows:

• for PERS, the total employer rate is 7.91 percent in FY 2026;
• for PSERS, the total employer rate is 9.16 percent in FY 2026;
• for SERS, the total employer rate is 9.29 percent in school year 2025-26;
• for TRS, the total employer rate  9.05 percent in school year 2025-26; and
• for the Washington State Patrol Retirement System, the total employer rate of 16.35 percent in FY 2026.

The Plans 2 member contribution rates for the 2025-27 biennium are modified as follows:

• for PERS, the rate is 5.86 percent;
• for PSERS, the rate is 7.11 percent;
• for SERS, the rate is 7.24 percent; and
• for TRS, the rate is 7.95 percent.