OLYMPIA—Imagine this. You dedicated your career to public service and have been retired for several years with Plan 1 of the state’s public employees’ retirement system (PERS1) or teachers’ retirement system (TRS1). Yet, with inflation and rising costs, it’s becoming increasingly difficult to afford basic goods and services while on a fixed income.
“The rising costs of living impact everyone, but I’m especially concerned about how these costs impact our seniors dependent on fixed incomes,” said Rep. Joe Timmons (D-Bellingham). “House Bill 1985, will provide a 3 percent benefit increase for retired state workers on the PERS1 or TRS1 plans, and help our retired public servants keep up with growing costs and be better equipped to age with the dignity they deserve.”
In Washington, the PERS1 and TRS1 basic retirement allowance does not assume an annual cost-of-living adjustment (COLA). Between 1995 and 2011, PERS1 and TERS1 retirees were eligible for an annual increase from a benefit known as the Uniform COLA, which included an additional 3 percent increase annually until it was repealed in 2011.
Since 2011, there have only been four Plan 1 benefit increases, including:
- In 2018, the Legislature provided a one-time increase of 1.5 percent—up to a maximum of $62.50 per month.
- In 2020, the Legislature provided a one-time increase of 3 percent—up to a maximum of $62.50 per month.
- In 2021, the Legislature provided a one-time increase of 3 percent—up to a maximum of $110.00 per month.
- In 2023, the Legislature provided a one-time increase of 3 percent—up to a maximum of $110.00 per month.
If enacted, HB 1985 would provide another much-needed one-time increase up to a maximum of $110 per month, effective July 1, 2024.
HB 1985 successfully passed out of the House Appropriations Committee earlier today and now heads to the House Rules committee for further consideration.