On Tuesday, the Pension Funding Council adopted 2027–29 employer contribution rates for state pension plans. The rates for 2027–29, as calculated by the Office of the State Actuary (OSA), are expected to decline compared to 2025–27.

OSA estimates that the adopted rates will reduce state spending by $325 million in 2027–29 (compared to current rates). Of that, $260 million will be saved in the general fund–state. The adopted rates are estimated to save local governments $165 million.

The new calculated rates are based on the 2025 Actuarial Valuation Report. This is a study that is completed every two years; the 2025 report is not yet published. Additionally, the calculated rates reflect the pause in contributions toward the unfunded actuarial accrued liability in the public employees’ retirement system plan 1 and teachers’ retirement system plan 1 that was adopted in 2025 (ESSB 5357). The pause is scheduled to last through FY 2029. OSA notes that many of the contribution rates will probably increase in 2029–31.

The OSA presentation to the Pension Funding Council includes a comparison of pension membership data in 2023 and 2025. Notably, the average annual salary of pension plan members increased by 11% from 2023 to 2025. OSA said that the 11% growth is “a little bit elevated compared to some historical values, but it’s not out of the ordinary from trends that we’ve seen recently.”