Retiree witnesses urge committee to pass ad hoc COLA for PERS 1 retirees; cities warn of local cost impacts

David Pringle, committee staff, briefed members on substitute Senate Bill 5862, which would provide a one-time 3% increase (up to $110 per month) to PERS 1 and TRS 1 retirees who have been retired for at least one year by 07/01/2026. Pringle said similar ad hoc increases have been provided in recent years and that the state actuary estimates contribution-rate impacts of about $10.3 million GF-S in FY27 and an approximate present value cost of $207 million amortized over 15 years.

Public testimony consisted largely of Plan 1 retirees describing financial hardship. Phyllis Farrell (WA Retired member) said rising fixed costs and loss of buying power made the COLA necessary: "My property taxes since 2011 have gone up 52%...My lifestyle has been impacted, and fear of financial insecurity is real without this COLA." Barb Church (Washington State School Retirees Association) called it an equity and justice issue and said many Plan 1 retirees are women with low retirement incomes; she urged the committee to fund the ad hoc COLA.

Candace Bach, representing the Association of Washington Cities, said while they sympathize with retirees they worry the added cost could affect local employers and asked that any move avoid shifting costs to local employers or PERS 2 members. Committee members asked clarifying questions about funding and the timing of contributions. No vote occurred at the hearing; supporters urged inclusion of funding in the final budget.