The 2006 Legislature passed, and the Governor signed, three bills that impact the current contribution rates. The rate increases to support the cost of these expanded benefits and the impact of Engrossed Substitute House Bill 1044 from the 2005 legislative session are included with this notice.
Engrossed Substitute Senate Bill (ESSB) 6896 reinstates payments to the Plan 1 Unfunded Accrued Actuarial Liabilities. House Bill 2684 changes vesting requirements for Plan 3 members, and Senate Bill 6453 expands the earlier provisions for a Plan 1 retiree $1,000 minimum benefit.
The contribution rate charts reflect the effective dates for each system. Some rate changes are effective July 1, 2006, and others start September 1, 2006.
The Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Plan 2 Board adopted supplemental rate changes that are effective September 1, 2006. These increases reflect benefit enhancements passed during the 2006 legislative session.
The employer rates for PERS and PSERS will also change January 1, 2007. Those rates will be 5.46 percent for PERS and 8.53 percent for PSERS. That change is due to ESSB 6896. We will send you an email reminder of these changes prior to the end of the year.
| Contribution Rates Effective July 1, 2006 (Employer rates include 0.19% DRS administrative expense rate) |
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|---|---|---|---|---|
| Plan 1 | Plan 2 | |||
Public Employees’ Retirement System (PERS) |
Percent | Rate | Percent | Rate |
| Member Contribution Rate | 6.00% | 0.0600 | 3.50% | 0.0350 |
| Employer Contribution Rate | 3.69% | 0.0369 | 3.69%* | 0.0369* |
PERS State Government Elected Officials |
||||
| Member Contribution Rate | 7.50% | 0.0750 | 3.50% | 0.0350 |
| Employer Contribution Rate | 5.44% | 0.0544 | 3.69%* | 0.0369* |
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) |
||||
| Cities, Counties, Fire Districts, etc. | ||||
| Member Contribution Rate | 0.00% | 0.0000 | 7.79% | 0.0779 |
| Employer Contribution Rate | 0.19% | 0.0019 | 4.87% | 0.0487 |
| State Contribution Rate | 0.00% | 0.0000 | 3.11% | 0.0311 |
| Ports and Universities | ||||
| Member Contribution Rate | NA | NA | 7.79% | 0.0779 |
| Employer Contribution Rate | NA | NA | 7.98% | 0.0798 |
Public Safety Employees' Retirement System (PSERS) |
||||
| Member Contribution Rate | NA | NA | 6.57% | 0.0657 |
| Employer Contribution Rate | NA | NA | 6.76% | 0.0676 |
*Employer rates for Plan 3 are the same as for Plan 2.
| Contribution Rates Effective September 1, 2006 (Employer rates include 0.18% DRS administrative expense rate) |
||||
|---|---|---|---|---|
| Plan 1 | Plan 2 | |||
Teachers' Retirement System (TRS) |
Percent | Rate | Percent | Rate |
| Member Contribution Rate | 6.00% | 0.0600 | 3.01% | 0.0301 |
| Employer Contribution Rate | 4.74% | 0.0474 | 4.74%* | 0.0474* |
TRS State Government Elected Officials |
||||
| Member Contribution Rate | 7.50% | 0.0750 | 3.01% | 0.0301 |
| Employer Contribution Rate | 4.74% | 0.0474 | 4.74%* | 0.0474* |
School Employees' Retirement System (SERS) |
||||
| Member Contribution Rate | NA | NA | 3.79% | 0.0379 |
| Employer Contribution Rate | NA | NA | 4.85%* | 0.0485* |
*Employer rates for Plan 3 are the same as for Plan 2.
| Contribution Rates Effective September 1, 2006 (Employer rates include 0.18% DRS administrative expense rate) |
||||
|---|---|---|---|---|
| Plan 1 | Plan 2 | |||
Public Employees’ Retirement System (PERS) |
Percent | Rate | Percent | Rate |
| Member Contribution Rate | 6.00% | 0.0600 | 3.50% | 0.0350 |
| Employer Contribution Rate | 3.69%** | 0.0369** | 3.69%** | 0.0369** |
PERS State Government Elected Officials |
||||
| Member Contribution Rate | 7.50% | 0.0750 | 3.50% | 0.0350 |
| Employer Contribution Rate | 5.44%** | 0.0544** | 3.69%** | 0.0369** |
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) |
||||
| Cities, Counties, Fire Districts, etc. | ||||
| Member Contribution Rate | 0.00% | 0.0000 | 7.85% | 0.0785 |
| Employer Contribution Rate | 0.18% | 0.0018 | 4.90% | 0.0490 |
| State Contribution Rate | 0.00% | 0.0000 | 3.13% | 0.0313 |
| Ports and Universities | ||||
| Member Contribution Rate | NA | NA | 7.85% | 0.0785 |
| Employer Contribution Rate | NA | NA | 8.03% | 0.0803 |
Washington State Patrol Retirement System (WSPRS) |
||||
| Member Contribution Rate | 4.51% | 0.0451 | 4.51% | 0.0451 |
| Employer Contribution Rate | 4.69% | 0.0469 | 4.69% | 0.0469 |
Public Safety Employees' Retirement System (PSERS) |
||||
| Member Contribution Rate | NA | NA | 6.57% | 0.0657 |
| Employer Contribution Rate | NA | NA | 6.76%** | 0.0676** |
**Employer rates for Plan 3 are the same as for Plan 1 & 2. The PERS & PSERS employer rates reflect the 0.01% rate increase due to SB 6453 and the reduction in the administrative rate from 0.19% to 0.18%. Since both changes are effective on September 1, 2006, the net result is no change to the employer rate on this date.
If you have any questions regarding this DRS Notice, please contact Employer Support Services at (360) 664-7200, option 2, or 1-800-547-6657, option 6, option 2; or email us.
Cathy Cale
Assistant Director of Administrative Services