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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

Teachers' Retirement System

Law Enforcement Officers' and Fire Fighters' Retirement System

State Patrol Retirement System

Judicial Retirement System

Judges' Retirement System


Agency Level Summary

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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

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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.




Teachers' Retirement System

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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

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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

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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.




Judicial Retirement System

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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




Judges' Retirement System

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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).