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Select committee bill would restore recurring COLA for Plan 1 retirees, amortize cost over 15 years

2145925 · January 23, 2025
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Summary

Senate Bill 5113, requested by the Select Committee on Pension Policy, would restore an annual COLA for PERS 1 and TRS 1 retirees (up to 3% tied to Seattle CPI) and require that the cost of benefit improvements be amortized over 15 years; supporters said it corrects an inequity, while employers and fiscal critics warned of added costs.

Senate Bill 5113, brought to the Senate Ways & Means Committee by the Select Committee on Pension Policy, would reinstate an ongoing cost‑of‑living adjustment for Plan 1 retirees and change amortization rules for benefit enhancements.

Amanda Cecil, staff to the committee, described the bill’s three main components: (1) create a recurring COLA for PERS 1 and TRS 1 retirees similar to the COLA available to Plan 2 and Plan 3 retirees (up to 3% based on inflation); (2) amortize the cost of that COLA and future benefit improvements over 15 years (current law generally uses 10 years); and…

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