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L&I proposes increasing average workers’ compensation rates by 4.9% in 2027, well below the break-even point

Today the Department of Labor & Industries proposed increasing average workers’ compensation rates by 4.9% in 2027. According to L&I, rates would increase for 293 of the state’s 327 risk classes. As shown in the chart above, the proposal for 2027 would be the sixth increase in a row. However, these increases have not been […]

Workers’ compensation benefit costs are highest in Washington

Washington’s workers’ compensation benefit costs per covered worker remain the highest in the country, according to new data from the National Academy of Social Insurance (NASI). NASI’s August 2026 report covers data from 2023. In 2023, benefit costs in Washington were $875.41 per covered worker, up from $854.31 in 2022 (as revised). The next highest […]

Adopted pension contribution rates could save the state $325 million in 2027–29

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). […]

Average annual wage is up 4.9%, triggering increases to various state benefits and the UI taxable wage base

According to the Employment Security Department (ESD), the state average annual wage was $99,810 in 2025. That’s an increase of 4.9% over 2024. ESD reports that earnings increased by 4.7%, but covered employment declined by 0.2%. The state average annual wage is used to calculate state unemployment insurance (UI) taxes and benefits, paid family and […]

Paid family and medical leave rate structure changed again, but it does not improve program solvency

The Legislature has passed 2SSB 5292. If signed by Gov. Ferguson, the bill would change the paid family and medical leave (PFML) tax rate-setting formula. However, more will need to be done to address program solvency. Initially, the tax rate for the program was set at 0.4%. Beginning in 2021, the rate was set based […]

What will the Legislature do with the $4 billion in LEOFF 1?

The House and Senate have each passed different versions of HB 2034, the bill that would terminate the Law Enforcement Officers’ and Firefighters’ retirement system Plan 1 (LEOFF 1) and create a restated LEOFF defined benefit retirement fund. This would allow the state to extract expected surplus funds in the plan. The two versions differ […]

House-passed bill would make LEOFF 1 surplus easily accessible to budget writers

Last Friday, the House passed E2SHB 2034. The bill would terminate the Law Enforcement Officers’ and Firefighters’ retirement system Plan 1 (LEOFF 1), which has been closed to new members since 1977, and create a restated LEOFF defined benefit retirement fund. As of June 30, 2024, LEOFF 1 was estimated to be 160% funded. HB […]

Report describes options for LEOFF 1 surplus; state treasurer has concerns

There is a substantial expected surplus in the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System Plan 1. During the 2025 legislative session, there were several proposals to extract funds for use in the state operating budget. Ultimately, the enacted 2025–27 operating budget required the Select Committee on Pension Policy (SCPP) to “study and […]

New brief: SJR 8201: Investment Flexibility for Long-Term Care Funds

SJR 8201 would amend the state constitution to allow money in the long-term services and supports (LTSS) trust account to be invested as authorized by law. Effectively, the amendment would allow the funds to be invested in a broader range of vehicles, including stocks. Currently, the funds may only be invested in fixed-income securities. Over […]

Paid family and medical leave premium rate is projected to increase to 1.13% in 2026; solvency issues loom

The paid family and medical leave (PFML) premium rate is projected to increase to 1.13% in 2026. (The actual rate will be based on the account balance on Sept. 30, so this is not yet final.) Further, a presentation by the PFML actuary to the PFML advisory committee yesterday shows that the financial outlook for […]