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Committee advances work on Plan 1 COLA options, directs staff to draft ad hoc COLA language
Summary
The executive committee reviewed staff proposals to keep cost-of-living adjustments for Plan 1 retirees on the budget table, asked staff for draft language and actuarial data, and scheduled an ad hoc COLA briefing for July. Retiree groups urged action; members debated funding trade-offs and fiscal constraints.
The executive committee continued work on restoring cost-of-living adjustments for Plan 1 retirees, asking staff to prepare bill language and actuarial options and to bring an informational briefing on ad hoc COLA proposals to the July meeting. Chair Senator Conway said the goal is "to ensure that our budget writers will recognize a priority that the state has to a COLA for our Plan 1 members."
Committee staff presented a handout with three main approaches: a permanent statutory COLA (which members said carries a large long-term fiscal cost), an ad hoc COLA that would only take effect if specific budget funding is provided, or delaying an effective date (for example to 2029) when proceeds from the Lehi termination were expected to be available. Staff credited Amanda Cecil of the Ways and Means Committee with the draft options.
Members repeatedly stressed the difference between recommending legislation and enacting it. One member said the committee can "require" budget writers to consider the issue but cannot unilaterally obligate the legislature to appropriate funds. Members also discussed whether a capped ad hoc COLA would be preferable to a permanent increase, given budget constraints. The committee referenced a committee discussion that a permanent COLA could carry a large fiscal note (discussion cited a figure of about $2,000,000,000).
Representatives of retiree organizations urged the committee to advance concrete legislation. Pete Diedrich of the Washington State School Retirees Association said the proposals "move retirees closer" to desired outcomes and recommended filing a bill each session to maintain momentum. Derek Vanspoor of the Retired Public Employees Council echoed those sentiments and said the groups would confer and follow up with staff.
The committee asked staff to: assemble comparative data on plan membership and vesting differences that would inform actuarial cost estimates; prepare an ad hoc COLA bill draft for next session; and bring an informational briefing on options for July. The discussion concluded with the committee placing ad hoc COLA and related items on the July agenda for further action.
