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Agency 740
Contributions to
Retirement Systems
Request | $159,500,000 | ||||||||||||||||||
Net change from current biennium | $30,100,000 | Decrease | |||||||||||||||||
Percent change from current biennium | 15.9% | Decrease | |||||||||||||||||
Contributions to Retirement Systems is a budgeting entity established
to separate Department of Retirement Systems' administrative costs
from those costs related to direct state contributions to the
various state retirement systems. With the exception of the Law
Enforcement Officers' and Fire Fighters' (LEOFF) Retirement System,
most state contributions to the various retirement systems will
be made through the agency employing the system member. Occasionally,
the Legislature will make supplemental appropriations directly
to the affected systems. When this occurs, these costs are shown
in this budgeting entity.
Because the members of the LEOFF system are not state employees,
the entire amount of state funding to that system is shown as
a program in this entity.
Links to Program Level Detail
Public Employees' Retirement System
Law Enforcement Officers' and Fire Fighters' Retirement System
State Patrol Retirement System
Operating Budget: Summary
| |||||||||||||||||||||
1995-97 Appropriations | Appropriated Funds | Expenditures | |||||||||||||||||||
Amount | Estimated Balance | 1993-95 Actual | 1995-97 Estimated | 1997-99 Proposed | |||||||||||||||||
189,600,000 | General Fund - Basic Account - State | 169,979,000 | 189,600,000 | 159,500,000 | |||||||||||||||||
Operating Budget: Summary by Object
| ||||||||||||||||||
1994-95 Actual | 1995-96 Estimated | 1996-97 Estimated | 1997-98 Proposed | 1998-99 Proposed | ||||||||||||||
Grants, Benefits & Client Services | 88,085,000 | 94,800,000 | 94,800,000 | 79,750,000 | 79,750,000 | |||||||||||||
Annual Total |
88,085,000 |
94,800,000 |
94,800,000 |
79,750,000 |
79,750,000 | |||||||||||||
Operating Budget: Program Summary
| ||||||||||||||||||
1994-95 Actual | 1995-96 Estimated | 1996-97 Estimated | 1997-98 Proposed | 1998-99 Proposed | ||||||||||||||
Law Enfcnt Offc and Firefighter Ret | 82,985,000 | 87,500,000 | 87,500,000 | 70,500,000 | 70,500,000 | |||||||||||||
Judicial Retirement System | 4,450,000 | 6,500,000 | 6,500,000 | 8,500,000 | 8,500,000 | |||||||||||||
Judges Retirement System | 650,000 | 800,000 | 800,000 | 750,000 | 750,000 | |||||||||||||
Annual Total |
88,085,000 |
94,800,000 |
94,800,000 |
79,750,000 |
79,750,000 | |||||||||||||
Fiscal Year 1993-94 | 81,894,000 | |||||||||||||||||
Biennium Total |
169,979,000 |
189,600,000 |
159,500,000 | |||||||||||||||
Operating Budget: Change from Preceding Biennium
| ||||||||||||||||||||||||||
1993-95 Actual | 1995-97 Estimated | 1997-99 Proposed | ||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||
Law Enfcnt Offc and Firefighter Ret | 17,287,000 | 12.1% | 15,221,000 | 9.5% | (34,000,000) | (19.4)% | ||||||||||||||||||||
Judicial Retirement System | 2,158,000 | 32.0% | 4,100,000 | 46.1% | 4,000,000 | 30.8% | ||||||||||||||||||||
Judges Retirement System | 288,000 | 28.5% | 300,000 | 23.1% | (100,000) | (6.3)% | ||||||||||||||||||||
Total |
19,733,000 |
13.1% |
19,621,000 |
11.5% |
(30,100,000) |
(15.9)% | ||||||||||||||||||||
Program Level Detail
Public Employees'
Retirement System
This program is a budgeting entity established to reflect direct contributions made by the Legislature to the Public Employees' Retirement System. Normally, all contributions will be made through the agency which employs the system member. However, the Legislature occasionally may provide an appropriation directly to the system for specific purposes.
This program is a budgeting entity established to reflect direct contributions made by the Legislature to the Teachers' Retirement System. Normally, all contributions will be made through the agency which employs the system member. However, the Legislature occasionally may provide an appropriation directly to the system for specific purposes.
Law Enforcement
Officers' and Fire Fighters' Retirement System
The purpose of this program is to provide for an actuarial reserve
system for the payment of death, disability, and retirement benefits
to law enforcement officers and fire fighters and to their beneficiaries.
Retirement benefits are financed by employee contributions, employer
contributions, and, beginning in Fiscal Year 1991, transfers from
the state General Fund. The state contribution covers the unfunded
liability rate and that portion of the normal cost rate not covered
by employer and employee contributions. These rates are based
on an actuarial study of accrued liabilities and normal costs
of the system. The system's portion of the Department of Retirement
Systems' administrative costs is paid by employers.
The program's objective is to provide funding consistent with the current statutes that require full funding of benefits by the year 2024.
Expenditure Detail
| ||||||||||||||||||
1994-95 Actual | 1995-96 Estimated | 1996-97 Estimated | 1997-98 Proposed | 1998-99 Proposed | ||||||||||||||
Grants and Subsidies | 82,985,000 | 87,500,000 | 87,500,000 | 70,500,000 | 70,500,000 | |||||||||||||
Annual Total |
82,985,000 |
87,500,000 |
87,500,000 |
70,500,000 |
70,500,000 | |||||||||||||
Fiscal Year 1993-94 | 76,794,000 | |||||||||||||||||
Biennium Total |
159,779,000 |
175,000,000 |
141,000,000 | |||||||||||||||
Source of Funds - General Fund - Basic Account - State | |||||||||||||||||||
State Patrol
Retirement System
This program is a budgeting entity established to reflect direct contributions made by the Legislature to the State Patrol Retirement System. Normally, all contributions will be made through the agency which employs the system member. However, the Legislature occasionally may provide an appropriation directly to the system for specific purposes.
This program is a budgeting entity established to reflect direct contributions made by the Legislature to the Judicial Retirement System. Normally, contributions are made through the agency which employs the system member and legislative appropriations. The Legislature occasionally may provide an appropriation directly to the system for specific purposes.
Expenditure Detail
| ||||||||||||||||||
1994-95 Actual | 1995-96 Estimated | 1996-97 Estimated | 1997-98 Proposed | 1998-99 Proposed | ||||||||||||||
Grants and Subsidies | 4,450,000 | 6,500,000 | 6,500,000 | 8,500,000 | 8,500,000 | |||||||||||||
Annual Total |
4,450,000 |
6,500,000 |
6,500,000 |
8,500,000 |
8,500,000 | |||||||||||||
Fiscal Year 1993-94 | 4,450,000 | |||||||||||||||||
Biennium Total |
8,900,000 |
13,000,000 |
17,000,000 | |||||||||||||||
Source of Funds - General Fund - Basic Account - State | |||||||||||||||||||
This program is a budgeting entity established to reflect direct contributions made by the Legislature to the Judges' Retirement System. Normally, contributions are made through the agency which employs the system member and legislative appropriations. The Legislature occasionally may provide an appropriation directly to the system for specific purposes.
Expenditure Detail
| ||||||||||||||||||
1994-95 Actual | 1995-96 Estimated | 1996-97 Estimated | 1997-98 Proposed | 1998-99 Proposed | ||||||||||||||
Grants and Subsidies | 650,000 | 800,000 | 800,000 | 750,000 | 750,000 | |||||||||||||
Annual Total |
650,000 |
800,000 |
800,000 |
750,000 |
750,000 | |||||||||||||
Fiscal Year 1993-94 | 650,000 | |||||||||||||||||
Biennium Total |
1,300,000 |
1,600,000 |
1,500,000 | |||||||||||||||
Source of Funds - General Fund - Basic Account - State | |||||||||||||||||||
Postretirement Adjustments Established After July 1, 1993 (Dollars in Millions)
| ||||||||||||||||
1993-95 | 1995-97 | 1997-99 | ||||||||||||||
February Cost of Living Adjustment1 | ||||||||||||||||
Public Employees' Retirement System Plan | 7.8 | 2.4 | 2.7 | |||||||||||||
Teachers' Retirement System Plan I | 11.1 | 2.7 | 3.0 | |||||||||||||
Total |
18.9 |
5.1 |
5.7 | |||||||||||||
Age 70 Cost of Living Adjustment2 | ||||||||||||||||
Public Employees' Tetirement System Plan | 10.0 | |||||||||||||||
Teachers' Retirement System Plan I | 5.8 | |||||||||||||||
Total |
15.8 | |||||||||||||||
Uniform COLA3 | ||||||||||||||||
PERS | 22.0 | 23.9 | ||||||||||||||
TRS | 7.2 | 7.8 | ||||||||||||||
Total |
29.2 |
31.7 | ||||||||||||||
WSP Survivor Benefits4 | ||||||||||||||||
WSP | 0.004 | 0.01 | ||||||||||||||
1 Chapter 519, Laws of 1993, Section 1 and Chapter 247, Laws of 1994, Section 1 | ||||||||||||||||
2 Chapter 519, Laws of 1993, Section 2 | ||||||||||||||||
3 Chapter 345, Laws of 1995 | ||||||||||||||||
4 Chapter 226, Laws of 1996, Section 2 | ||||||||||||||||
Unfunded Actuarial Accrued Liability | |||
Public Employees' Retirement System Plan I (PERS I) | |||
The results of the December 31, 1995 Actuarial Valuation of PERS I indicated an Unfunded Actuarial Accrued Liability (UAAL) of $3,709 million. The contribution rate necessary to fund the UAAL as of June 30, 2024 is 2.67 percent (as a level percentage) of total PERS compensation. The estimated 1997-99 contributions will be $354.9 million for all PERS employers, the state's share is $163.9 million, and the General Fund's share is $87.4 million. These amounts are assumed to grow approximately 13 percent per biennium (with salary increases and increased PERS membership). | |||
Teachers' Retirement System Plan I (TRS I) | |||
The results of the June 30, 1995 Actuarial Valuation of TRS I indicated an Unfunded Actuarial Accrued Liability of
$3,394 million. The contribution rate necessary to fund the UAAL as of June 30, 2024 is 5.72 percent (as a level percentage) of total TRS compensation. The estimated 1997-99 contributions will be $341.4 million for all TRS employers, the state's share will be $259.2 million, which would come entirely from the General Fund. These amounts are assumed to grow approximately 12 percent per biennium (with salary increases and increased TRS membership). | |||
Law Enforcement Officers' and Firefighters' Retirement S | |||
The results of the December 31, 1995 Actuarial Valuation of LEOFF I indicated an Unfunded Actuarial Accrued Liability of $931 million. The contribution rate necessary to fund the UAAL as of June 30, 2024 is 5.81 percent (as a level percentage) of total LEOFF compensation. The estimated 1997-99 contributions will be $88.9 million. This will come entirely from the General Fund. This amount is assumed to grow approximately 13 percent per biennium (with salary increases and increased LEOFF membership). | |||
Washington State Patrol Retirement System (WSP) | |||
The results of the December 31, 1995 Actuarial Valuation of WSP I indicated a negative Unfunded Actuarial Accrued Liability (a surplus) of $49 million. The reduction in contribution rate necessary to amortize the surplus UAAL as of June 30, 2024 is -4.70 percent (as a level percentage) of total WSP compensation. The estimated 1997-99 savings will be $4.7 million for all of WSP, and the General Fund's share will be $300,000. These amounts are assumed to grow approximately 13 percent per biennium (with salary increases and increased WSP membership). | |||