Committee hears support for one‑time COLA for Plan 1 retirees; advocates urge permanent restoration

A House Appropriations Committee public hearing on House Bill 1474 focused on a proposed one‑time cost‑of‑living adjustment for Plan 1 retirees and broader calls to restore a recurring COLA.

Proponents told the committee that many Plan 1 retirees face steep increases in housing, health care and utility costs and said a one‑time COLA would provide immediate, limited relief while urging the legislature to restore a permanent, recurring COLA that was revoked in 2011.

"I think there's quite broad understanding and and support, for ensuring that the, plan 1 retirees don't at at the very least, don't fall any further behind," Jared Mason Greer, representing the Washington Education Association, told the committee. The WEA and retired educators asked the panel to pursue an ongoing COLA rather than a single ad hoc payment.

Eileen Perfrimit of the Washington State School Retirees Association said House Bill 1474 would provide "much needed short term relief" but does not deliver the ongoing protection retirees seek. Perfrimit noted an alternate approach under Senate Bill 5085 that, she said, "would improve upon this bill by restoring an ongoing COLA to TRS 1 and PERS 1 retirees and also saving the state $600,000,000 over the next 4 years" by combining plans and addressing funding levels. She described that combining TRS 1 and PERS 1 with LEOFF 1 (described in testimony as roughly 49% funded) would produce larger employer savings.

Several retirees described the personal effects of inflation. Linda Nelson, a PERS 1 retiree and member of the Retired Public Employees Council of Washington, testified: "The entire COLA received last year was spent on a hearing aid. I fear that without inflationary protection, my pension will be inadequate for me to remain in my Seattle area home." Nelson said the Seattle area has experienced almost 16% inflation in four years and called for reinstating a recurring COLA while supporting the one‑time payment proposed in HB 1474.

Bonita Jacques, Leanne Prelip and other members of the Retired Public Employees Council and WEA Retired told the committee that Plan 1 retirees are disproportionately female and that many have annual pensions under $25,000. Jacques said, "Retirees like me are struggling. Ever increasing health care costs, housing, food, basic necessities have become a strain on our stagnant fixed incomes." Testimony described an offered benefit in HB 1474 of up to $110 per month in 2025 for eligible Plan 1 retirees.

Sherry Sawyer of the Office of Financial Management, speaking in support of the bill as an OFM request, said bringing forward a proposal that "actually costs the state money" was undertaken deliberately to address retirees' costs: "We really feel like it's important to keep pace with, the cost of living and ask that you support the bill."

Local government representatives raised concerns about employer costs if the state does not assume them. Candace Bach, representing the Association of Washington Cities, said cities are "very concerned about the cost of this proposal" and warned that passing costs to city employers would mean "less services on our streets" and could compete with funding for public safety, parks and streets.

Supporters repeatedly asked the panel to consider alternatives that would restore a recurring COLA. Claire Olivers, president of the Retired Public Employees Council of Washington, referenced recommendations from the Select Committee on Pension Policy and other bills (policy work listed in testimony as House Bill 1292 and Senate Bill 5113) that would both provide an ad hoc COLA and reinstate a recurring COLA in 2026.

The public hearing on House Bill 1474 concluded after testimony from the listed panels; committee members asked no immediate procedural questions during the session.

Ending: With testimony concluded, the committee kept the record open to consider testimony and related pension proposals as it continues work on the state budget and pension policy.