Video & Transcript : 'pension fund' :
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MN
Minnesota 2025-2026 Regular Session
Legislative Commission on Pensions and Retirement - 04/08/25
Minnesota Senate Floor Meeting
Transcript Highlights:
- That pension benefits are best delivered when funds are fully funded.
- for my mom's Tier 1 unfunded liabilities rather than solely pre-funding my own pension.
- Tier 2 pensions were fully funded in 1997 when I started teaching in 2009.
- for my mom's Tier 1 unfunded liabilities rather than solely pre-funding my own pension.
- Tier 2 pensions were fully funded in 1997 when I started teaching in 2009.
MN
Minnesota 2025-2026 Regular Session
Legislative Commission on Pensions and Retirement - 03/17/26
Minnesota Senate Floor Meeting
Transcript Highlights:
- It was for the purpose of funding teacher pensions.
- It was for the purpose of funding teacher pensions.
- And so, when funding teacher pensions.
- fund when they already have put significant in to the pension fund for this retired teacher.
- ><c> pension</c><01:13:36.840><c> programs,</c> want to fund 30-year pension programs, want to fund 30
OK
Oklahoma 2026 Regular Session
Banking, Financial Services and Pensions REVISED: HB1182 - Removed Feb 17th, 2026
Banking, Financial Services and Pensions
Transcript Highlights:
- You said it would be fully funded, but can you declare what the fiscal to the pension would be? Mr.
- Depending on per pension, or per pension fund, I think, depending on per pension or per pension fund,
- I think the total of all the pension funds for an increase in unfunded liability was $109 million.
- So we've been trying to bring our pensions up to a funding status that is light years beyond where they
- Being that, and I'll give TRS props, they have really gotten the pension system to a better funding level
Bills:
HB1784 , HB1245 , HB1268 , HB2116 , HB2193 , HB2206 , HB1739 , HB1889 , HB1904 , HB3172 , HB4225 , HB4352 , HB3625 , HB4263
Summary:
The Banking, Financial Services and Pensions Committee heard a series of retirement, banking, and school finance bills after announcing that several measures would be laid over or sent back to Rules and that the committee would recess briefly because of quorum and scheduling conflicts. The chair also explained the committee’s OPLA/safe-harbor process for pension bills and noted that many of the measures would still need oversight and floor consideration.
Among the bills advanced were HB 1245, allowing certain DHS CLEET-commissioned agents to join the law enforcement retirement system; HB 4352, helping people refinance homes or businesses while protecting lenders; HB 4263, giving certain retired teachers who go to work for CareerTech a choice between TRS and OPERS; HB 1268, creating a five-year DROP option for EMTs and county sheriffs in OPERS; HB 1739, reinstating a half-pay provision in the law enforcement retirement system for OHP recruitment and retention; HB 2116, expanding OLERS eligibility to certain Office of State Fire Marshal officers; HB 2206, allowing newly hired school resource officers into OLERS; HB 3625, expanding school district investment options; HB 1889, providing a catch-up COLA for older police and fire retirees; and HB 1784, requiring TRS’s assumed rate of return not fall below its past 20-year annualized return. HB 3172, the “Fair Banking Act,” would restrict adverse actions by very large financial institutions based on lawful economic activity and require explanations on request; members asked whether it would affect Oklahoma banks and whether it mirrored a presidential executive order. HB 2193 proposed a COLA for state retirement systems with caps on eligible benefits and salaries, and members raised concerns about differing actuarial estimates and the need for more work before oversight.
Most bills were reported out by committee votes ranging from 8-0 to 4-3. The chair and members repeatedly noted that several measures, especially the pension bills, would need further work with actuaries and oversight committees. The meeting ended with a brief acknowledgment of committee staff and support personnel before adjournment.
MN
Minnesota 2025-2026 Regular Session
Minnesota House passes SF2884, the Minnesota State Retirement System pensions bill 5/19/25
Minnesota House Floor Meeting
Transcript Highlights:
- </c><00:03:30.239><c> was</c><00:03:30.640><c> to</c> pension fund people really them was to pension
- When we get our pension funds moving in the right direction and our sufficiencies look good and our full
- When we get our<00:10:27.200><c> pension</c><00:10:27.680><c> funds</c><00:10:28.000><c> moving</c><00
- :10:28.240><c> in</c><00:10:28.480><c> the</c><00:10:28.560><c> right</c> our pension funds moving in
- the right our pension funds moving in the right direction<00:10:29.440><c> and</c><00:10:29.839><c>
KY
Kentucky 2025 Regular Session
Public Pension Oversight Board (2-24-25)
Transcript Highlights:
- Those are the only two things that would be shifted to the pension if there is 100% funding.
- Pension funding levels have not had the same type of trend, and over the same period from 2018 through
- U making sure the Pension funds are busy U making sure the pensions<00:24:36.000><c> are</c><00:24:36.279
- ><c> in</c> prevent Pension funds from investing in prevent Pension funds from investing in companies
- </c> increased activism by public Pension increased activism by public Pension funds<00:33:11.519><c>
Summary:
The committee first approved the minutes from its January 27 meeting and then took up House Bill 694, which would create a default rule for the Teachers’ Retirement System health insurance trust fund once it reaches 100% funding, currently anticipated around 2027. The bill would redirect two funding streams now going to the health trust—state payments on behalf of local districts and other employer contributions—into TRS pension benefits if the health fund reaches and maintains full funding. The sponsor said this would add about $154 million annually to TRS pensions and would only serve as a default if no other plan is adopted later.
Members asked whether the bill would shift the unfunded liability to teachers or affect employee contributions. The sponsor and staff said it would not shift liability to teachers and would not change the employee contribution; only the employer-side payments would be redirected. Several members asked about the meaning of actuarial 100% funding, whether the fund could fall back below 100%, and whether employee contributions might be reduced in the future. The sponsor said the bill is based on actuarial projections, would revert the money back to the health trust if funding fell below 100%, and does not prevent future legislative or board action. Senator Higdon and others spoke in support of discussing the issue, noting the 2010 shared-responsibility changes and the need for a default approach as full funding is reached.
The committee then heard Senate Bill 183, which would amend Kentucky law governing proxy advisers used by retirement systems. The sponsor said the bill would require proxy advisers, when handling shareholder-sponsored proposals, to act solely in the interest of retirement system members and beneficiaries and to provide an economic analysis when voting against a company board’s recommendation. He argued the measure is aimed at proxy advisers such as ISS and Glass Lewis, which he said often advance ESG-related proposals not tied to shareholder value. A guest from APCIA said the bill is meant to distinguish proxy advisers from investment managers and to strengthen the 2023 law by requiring a clearer economic justification for votes that depart from board recommendations.
Members asked how proxy advisers differ from other financial advisers, whether Kentucky uses them, and whether the bill would prevent pension funds from investing in companies with ESG factors if those investments are profitable. The sponsor and guest said the bill would not bar such investments; it is intended to regulate proxy voting recommendations, not investment decisions. They described the bill as a proactive measure to reinforce fiduciary responsibility and limit outside proxy influence on pension voting. No final vote on either bill was taken in the portion of the meeting provided.
MA
Massachusetts 2025-2026 Regular Session
Joint Committee on Public Service Jun 21st, 2026 at 01:00 pm
Joint Committee on Public Service
Transcript Highlights:
- , and taxpayers are on the hook if the pension funds run short.
- As a taxpayer that's paid into this pension fund, I'd like to ask...
- I am not naive to the fiduciary responsibilities of a pension fund.
- Without funding from pension funds such as ours, Israel would not be able to commit these atrocities
- The Massachusetts state pension plan must divest from companies, By our pension funds against her will
Committee:
Joint Joint Committee on Public Service
Summary:
The Joint Committee on Public Service held a hearing focused first on teacher retirement legislation, especially H. 2932 and S. 1884, which would give long-serving educators a one-time opportunity to enroll in Retirement Plus after the program’s 2001 rollout was described as confusing and inconsistently communicated. Legislators, union leaders, and many teachers testified that some educators missed the opt-in window because of faulty notices, leave status, transfers, or misinformation about payroll deductions, and that many have had to work several extra years as a result. Supporters said the bills would correct an unfair administrative error, provide a buyback option with interest, and could also save local school districts money by allowing earlier retirements. Representative Mark Sylvia also testified for H. 4234, a Fairhaven-specific bill to raise the age limit for special police officers from 65 to 70 and clarify appointing authority, citing experience and budget needs.
The committee then heard testimony on several pension investment and divestment bills. Supporters of H. 2811 and related climate-risk measures argued that PRIM should assess, disclose, and address climate-related financial risk in the state pension fund, warning that fossil fuel investments could threaten long-term returns and public finances. Environmental advocates and financial experts said climate risk is systemic and urged transparency, divestment planning, and alignment with the Commonwealth’s climate goals. Another set of speakers supported H. 2984, which would divest pension investments from companies selling weapons to Israel; they argued the state should not be complicit in violence in Gaza and cited humanitarian and human rights concerns. Additional testimony supported H. 2900 and S. 1869 to divest from the firearm industry, with speakers saying pension investments should not undermine Massachusetts gun laws.
No votes were taken during the hearing. The chairs repeatedly thanked speakers, limited testimony time, and noted that written testimony could be submitted later. The hearing concluded with the committee moving through the sign-up list and hearing extensive public testimony on the teacher retirement and divestment proposals.
MN
Minnesota 2025-2026 Regular Session
Minnesota House passes omnibus pensions and retirement bill 5/13/26
Minnesota House Floor Meeting
Transcript Highlights:
- </c> funds, it's it's amazing. funds, it's it's amazing.
- </c> strong public pensions. strong public pensions.
- </c> the pensions commission. the pensions commission.
- </c> be serving on pensions. be serving on pensions.
- technical,</c> pensions, pensions are super technical, pensions, pensions are super technical, but<00
Summary:
House File 4074, the second engrossment of the retirement bill, was presented as a broad pension package with changes affecting multiple public retirement systems. Rep. Lilly described provisions including bringing St. Paul teachers closer to parity with TRA, reducing the COLA waiting period for police and fire retirees from two years to one, lowering the retirement age for certain probation, corrections, and 911 telecommunicator workers from 60 to 55, addressing a State Board of Investments fix, and creating or continuing work on Secure Choice and other retirement-related issues. Members also noted help for volunteer firefighters, EMS-related workers, and a local fix for Maple Plain’s volunteer fire system. The bill was repeatedly described as bipartisan and the product of successful working groups and negotiations with the Senate.
Several members spoke in support, emphasizing the importance of public pensions, the impact of inflation on retirees, and the value of the bill’s targeted improvements for workers who are often not covered by Social Security. Rep. Johnson, Rep. Hill, Rep. Vega, Rep. Robbins, Rep. Cha, and others praised the work of the pension commission, staff, and the co-chairs. They highlighted the St. Paul teachers changes, the police and fire COLA adjustment, and the bill’s efforts to honor promises made to public employees. Some members also pointed to the importance of work groups as a way to develop better long-term solutions.
The main point of debate centered on the duty disability amendment, which would have addressed disability issues for first responders. Supporters said the issue is serious and needs a work group solution rather than piecemeal changes, while Rep. Johnson and others warned that the proposal could create problems by treating psychological injuries differently from physical injuries. Rep. Roach said the body should not have passed the prior law and urged a fix for disabled law enforcement and first responders. After discussion, Rep. Lilly withdrew the A3 amendment. Earlier technical amendments A9 and A10 were adopted by voice vote, with members noting they were non-substantive and intended to keep House and Senate language identical and avoid a conference committee. The bill then moved to third reading as amended, with members urging a green vote.
WA
Washington 2025-2026 Regular Session
Select Committee on Pension Policy May 20th, 2025 at 10:00 am
Select Committee on Pension Policy
Transcript Highlights:
- And is that where the Pension Funding Council was on that issue?
- And is that where the Pension Funding Council was on that issue?
- And there's a number of issues here that impact the funding of our pensions.
- on the costs, risks, and funding policies related to the pension systems.
- So if you want your pension fund to get out of coal effectively, you should use that list.
Committee:
Joint Select Committee on Pension Policy
Summary:
The Select Committee on Pension Policy opened its 2025 interim with roll call, approval of the prior minutes, and a brief administrative update on meeting procedures, new members, and a planned change to hold officer elections in June rather than immediately. Staff then presented a high-level recap of the 2025 legislative session, focusing on pension-related bills affecting Plans 1, 2, and 3, including the failed Plans 1 COLA and month-of-death bills, enacted changes on retire/rehire rules, state actuary appointments, service credit purchases, excess compensation, and a budget proviso directing study of proposed LEOFF 1 merger/termination concepts. Staff also highlighted ESSB 5357, which changes funding policy and the assumed rate of return, and noted that a deeper briefing on that complex bill may be needed.
The committee then received an interim kickoff presentation explaining the SCPP’s role, membership, meeting structure, public participation, and the typical process for studying issues. Staff reviewed the draft interim work plan, which will be shaped by statutory studies, annual agency reports, legislative outcomes, stakeholder requests, and committee goals. Key upcoming work includes the mandated study of LEOFF 1 merger and termination concepts, the state actuary’s odd-year economic assumption recommendations, annual updates from DRS, OSA, the LEOFF 2 Board, and the State Investment Board, and other recurring reports such as the DRS benchmarking study and actuarial valuation materials. Members also discussed the importance of understanding asset smoothing and long-term funding impacts, and staff said updated contribution projections will be available later in the fall.
During public comment, several speakers urged the committee and the State Investment Board to address climate-related financial risk and divest from fossil fuels, arguing that current coal, oil, and gas holdings are too large and that existing screening methods undercount exposure. One commenter also asked the committee to consider climate risk in the upcoming long-term economic assumptions study. Another public commenter, representing school retirees and administrators, urged continued study of COLA proposals and asked the committee to review the recently enacted funding bill and a separate bill related to COLA financing. The meeting concluded with a short break and adjournment of the full committee portion before the executive committee session.
WA
Washington 2025-2026 Regular Session
Pension Funding Council Oct 8th, 2025 at 02:00 pm
Pension Funding Council
Transcript Highlights:
- that feed into the Pension Funding Council.
- And the Pension Funding Council, I'll talk about the State Investment Board and the Pension Funding Council's
- to the Pension Funding Council.
- funding council Thank you again, Madam Chair, members of the Pension Funding Council.
- Thank you, chair members of the Pension Funding Council.
Committee:
Joint Pension Funding Council
Summary:
The Pension Funding Council met on October 8 with introductions from council members and then heard a presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems were 100% funded as of June 30, 2024, with open plans above 95% funded, and explained that strong investment returns and prior funding policy decisions contributed to that position. The actuaries recommended increasing the inflation assumption from 2.75% to 3%, increasing general salary growth by 0.25%, keeping the Plan 1 membership growth assumption at 1%, and raising the assumed investment return to 7.25% for all plans. They also reviewed estimated budget impacts and explained that investment gains are smoothed over up to eight years, while other assumption changes flow directly into future valuations.
The council also heard comments from the Economic and Revenue Forecast Council and the State Investment Board, both of which said their inflation and return outlooks were broadly consistent with the actuary’s recommendations. ERFC discussed inflation trends, the Federal Reserve’s 2% target, and why Seattle-area inflation tends to run above the national average, while SIB said its 15-year inflation assumption is 2.5% and that 7.25% is a reasonable long-term return assumption. Public testimony included support for maintaining Plan 1 funding efforts and caution from the Association of Washington Cities about the budget impact of higher assumptions and the risk of overfunding pensions.
The council then considered and adopted a motion to maintain the current prescribed long-term economic assumptions, with a roll call vote of 4-2. It next considered the long-term services and supports trust program and, after hearing an overview from DSHS and OSA, adopted the recommended WA Cares premium rate of 0.58% by a unanimous 6-0 vote. OSA said the WA Cares program is still in its learning phase, with no benefits yet paid, and recommended no premium change at this time regardless of the outcome of the related ballot measure. The council also elected Katie Chapman as chair and then adjourned.
MN
Minnesota 2025-2026 Regular Session
House Floor Session - part 2 May 19th, 2025
Minnesota House Floor Meeting
Transcript Highlights:
- This is the This is a bipartisan pension bill from the Pension Commission.
- When we get our pension funds moving in the right direction and our sufficiencies look good, and our
- gave last biennium was one-time funding, and we are already a third through that funding.
- pension.
- And I just have a hard time pitting teachers' pension versus police's pension.
KY
Kentucky 2025 Regular Session
Public Pension Oversight Board (10-21-25)
Transcript Highlights:
- They're evaluate pension fund returns?
- </c><00:11:52.320><c> fund</c> for example KS non-haz pension fund for example KS non-haz pension fund
- ><c> their</c><00:12:06.959><c> policy</c> pension funds all beat their policy pension funds all beat
- </c><00:12:44.720><c> funds</c> and all of our state pension funds and all of our state pension funds
- > largely</c><00:26:32.640><c> reduce</c> Uh, pension funds have largely reduce Uh, pension funds have
Summary:
The committee met with a quorum, approved the prior meeting minutes, welcomed new staff member Sean Parks, and announced that it would not meet in November. The next meeting was scheduled for December 8 at 10:00 a.m., with the chair noting that pension bills would be heard then and emphasizing that all pension bills must go through the full process and include actuarial analysis.
Brad Gross of the Public Pension Oversight Board presented a detailed review of Kentucky retirement systems’ investments and funding. He said fiscal year 2025 ended with about $50.5 billion in pension assets and $12.52 billion in retiree health assets, both up from the prior year. He reported strong investment performance across the systems, with all Kentucky public pension funds exceeding their policy benchmarks and the median peer return of 10.4%. He also discussed long-term return trends, asset allocation differences among the systems, fee levels, and cash flow, noting that cash flow remains a key monitoring issue and that supplemental appropriations have improved the cash position of some funds, especially the Kentucky State Police and TRS systems.
Gross also explained that assumed rates of return have generally fallen over time, which increases unfunded liabilities and required contributions, and said the systems’ current assumptions range from 5.25% to 7.1%. He noted that the committee’s materials included peer comparisons and historical charts, and that all asset classes were within target ranges. In response to a question from Senator Funky From, Gross was asked about pension spiking and whether supplemental general fund contributions could create a false sense of security in cash flow analysis; the question was raised but not resolved in the portion of the transcript provided.
MN
Minnesota 2025-2026 Regular Session
Legislative Commission on Pensions and Retirement - 04/01/25
Minnesota Senate Floor Meeting
Transcript Highlights:
- Pensioners in the police and fire fund are currently only receiving a 1% cost of living adjustment.
- Pensioners in the police and fire<00:20:10.320><c> fund</c><00:20:10.480><c> are</c><00:20:10.720><c>
- </c> the degradation of their pensions. the degradation of their pensions.
- And these members in the pension funds have understood that it is shared sacrifice.
- towards full funding.
MN
Minnesota 2025-2026 Regular Session
Legislative Commission on Pensions and Retirement - 04/21/26
Minnesota Senate Floor Meeting
Transcript Highlights:
- <c> and</c><00:52:49.000><c> Fire</c><00:52:49.240><c> Fund</c> Pensioners in the Police and Fire Fund
- Pensioners in the Police and Fire Fund are<00:52:49.520><c> currently</c><00:52:49.920><c> only</c><
- And I understand that Representative O'Driscoll's aim here is to bring more funding into the pension
- </c><01:21:13.160><c> to</c><01:21:13.320><c> try</c> funding into the pension system to try funding
- these pensions, this is one way to make sure that those dollars that are intended to go here to fund
WA
Transcript Highlights:
- Risk is inherent in pension systems, so it's important to remember that pension funding is a long-term
- that feed into the Pension Funding Council.
- And the Pension Funding Council, I'll talk about the State Investment Board and the Pension Funding Council's
- In addition, the Pension Funding Council must set the premium.
- Thank you, Chair members of the Pension Funding Council.
Committee:
Joint Pension Funding Council
Summary:
The Pension Funding Council met on October 8 with introductions from council members and staff, then received a detailed presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems are currently 100% funded on a smoothed basis, with open plans above 95% funded, and that legacy Plan 1 systems remain on a path toward full funding under current policy. The actuaries recommended updating assumptions to 3% inflation, 3.5% general salary growth, and a 7.25% investment return, while keeping Plan 1 membership growth at 1%. They also explained asset smoothing, the role of recent strong investment returns, and the expected budget impacts of the recommended changes. Representatives from the Economic and Revenue Forecast Council and the State Investment Board offered supporting perspectives, generally describing the assumptions as reasonable and consistent with their own outlooks.
The council also heard an overview of the Long-Term Services and Supports Trust Program (WACares) from DSHS and OSA. Program staff described the program’s social insurance structure, premium collection, benefit eligibility, and upcoming implementation milestones. OSA reported that the program’s first actuarial valuation showed a positive actuarial balance under the base scenario and recommended no change to the current 0.58% premium rate during the program’s early learning phase, noting that future changes would depend on experience and the program’s risk-management framework. OSA also said the recommendation would remain the same regardless of the outcome of the pending ballot measure affecting investment options.
During public comment, a representative of the Washington State School Retirees Association urged continued work on Plan 1 funding and related legislation, while the Association of Washington Cities cautioned against increasing pension assumptions in a way that could raise future employer costs and reduce flexibility for current local government services. In action, the council adopted a motion to maintain the current long-term economic assumptions by a 4-2 vote, adopted the recommendation to keep the WACares premium rate at 0.58% by a 6-0 vote, and then elected Katie Chapman as council chair by unanimous vote. The meeting then adjourned.
WA
Washington 2025-2026 Regular Session
Select Committee on Pension Policy Jun 17th, 2025 at 10:00 am
Select Committee on Pension Policy
Transcript Highlights:
- So the pension systems are partially funded through contributions by employers and members, and these
- So how does this law, which is a short-term reduction in pension funding, impact these plan metrics?
- A fully funded pension fund is critical. The security of our well-earned pension.
- A fully funded pension fund is critical to our members' peace of mind.
- In this state, in the House bill plan, when this goes out of the pension fund into a special fund under
Committee:
Joint Select Committee on Pension Policy
Summary:
The Select Committee on Pension Policy met on June 17, 2025, with Vice Chair Fitzgibbon presiding initially in Chair Benke’s absence. The committee approved the May minutes and then held its annual election of officers. Representative Travis Couture was elected chair, Senator Steve Conway was elected vice chair, and the executive committee seats were filled by Member Yistramski for actives, Bev Hermanson for retirees, and Anthony Murrietta for employers. The committee also recognized Pat Thompson for her long service and upcoming departure from the committee.
Staff then briefed the committee on Engrossed Substitute Senate Bill 5357, which changed pension funding by increasing the assumed long-term investment return from 7% to 7.25%, lowering normal cost contribution rates, suspending Plan 1 UAAL contributions for four years, and extending the amortization period for Plan 1 benefit improvements from 10 to 15 years. The Office of the State Actuary explained that the bill produces significant short-term budget savings but increases the risk of higher contribution rates later if investment experience underperforms. Members asked about the suspension of Plan 1 UAAL rates and the implications for future rates and funding risk.
The committee also received an introduction to the required study of proposed LEOFF 1 merger and termination legislation under the 2025-27 operating budget proviso, covering Substitute Senate Bill 5085 and Substitute House Bill 2034. Staff outlined the study plan, including legal, tax, actuarial, administrative, and pension policy analysis, with input expected from the Attorney General’s Office, Ice Miller LLP, the Office of the State Actuary, DRS, the State Investment Board, and the State Treasurer. Members discussed the unusual issue of an overfunded plan and possible IRS implications. Public testimony was split, with some speakers supporting a merger as a way to create room for a Plan 1 COLA and others opposing any diversion of LEOFF 1 assets, citing legal, tax, and member-rights concerns. The meeting adjourned before the scheduled executive session.
MN
Minnesota 2025-2026 Regular Session
Committee on State and Local Government - 05/07/26
State and Local Government
Transcript Highlights:
- funds.
- funds.
- funds.
- funds.
- </c> the improving nature of our pension the improving nature of our pension funds.<00:20:59.320><c>
Committee:
Senate State and Local Government
MN
Transcript Highlights:
- </c><01:17:01.840><c> was</c> I don't know is the Tier 1 pension was not fully funded.
- : teacher pensions, more funding for charter schools, long-term facility maintenance, lunchrooms, and
- Um teacher pensions, pensions, pensions, um<01:40:26.800><c> more</c><01:40:27.040><c> funding</c><01
- </c><01:41:36.080><c> We</c><01:41:36.239><c> could</c> and fund teacher pensions.
- We could and fund teacher pensions.
Bills:
HF2433
Committee:
Senate Education Finance
WA
Washington 2025-2026 Regular Session
Select Committee on Pension Policy Sep 16th, 2025
Select Committee on Pension Policy
Transcript Highlights:
- Pension funding, long-term pension funding, determining contribution rates, measuring the program's funded
- of pension funds to fund pension issues.
- funds to fund and pension issues.
- pension fund.
- funded, which would have a significant impact on the LEOFF 1 pension fund.
Committee:
Joint Select Committee on Pension Policy
Summary:
The committee approved the July minutes and then received an informational presentation from the Office of the State Actuary on the financial condition of the state retirement systems. The actuary reported that employer contribution rates are generally declining, helped by strong investment returns and reduced funding for PERS 1 and TERS 1, while funded ratios have continued to improve; on a combined basis the plans were reported at 100% funded in 2024, with open plans above 95% and legacy plans varying by system. The presentation also reviewed projected rates and funded ratios under current assumptions, noted that pension costs are taking a smaller share of the state general fund, and discussed risks from investment volatility, policy changes, and demographic experience. Committee members asked about savings from lower rates, deferred asset smoothing, and how Washington compares with other states.
The committee then considered the state actuary’s recommendation on long-term economic assumptions and adopted all four recommendations by roll call votes: inflation at 3.0%, general salary growth at 3.5%, membership growth for Plan 1 funding at 1.0%, and investment rate of return at 7.25%. The actuaries explained that the inflation and salary growth increases were driven largely by higher long-term inflation expectations, while the investment return recommendation matched the current statutory assumption. Members discussed the timing of the Pension Funding Council’s decision, the effect of tariffs and inflation uncertainty, and how assumption changes would affect future contribution rates and budgets, particularly for open plans.
Staff then gave an update on the LEOFF 1 study, explaining the difference between being “ahead of schedule” and truly overfunded, and summarizing responses received from DRS, the State Treasurer, and the State Investment Board on the merger and restatement proposals. DRS said both bills could be administered, though the merger bill’s COLA banking provision would be challenging until its new system is ready; the Treasurer urged caution, especially about the restatement bill and the use of one-time funds; and the Investment Board said removing assets from the trust would have some transaction costs but likely small impacts. The committee discussed whether to invite additional agencies and local government groups to testify, and staff said more responses, including from Ice Miller and the State Actuary, were expected for the October meeting.
Finally, the committee heard a briefing on PERS 1/TERS 1 COLA policy and related bills from the last session. Staff reviewed the committee’s prior ongoing COLA recommendation, the SCPP-endorsed bills that would have created a one-time 3% COLA followed by an ongoing COLA, the Senate merger bill, and a separate ad hoc COLA bill. Public testimony largely supported Plan 1 COLAs and stable contribution rates, while several speakers urged caution about transferring LEOFF 1 surplus assets or merging legacy plans, and others raised concerns about climate risk and the pension fund’s investments. No further committee action was taken on the COLA item during this portion of the meeting.
NM
New Mexico 2025 Regular Session
IC - Investments and Pensions Oversight Oct 9th, 2025
Investments & Pensions Oversight Committee
Transcript Highlights:
- The second metric that we look at is whether the pension funds are being funded in a sustainable way.
- Montana, for example, their fund ended up being a joint fund for pensions.
- For these pension funds, we're already paying their management fees.
- I'm thinking about how, you know, all of these pension funds are being compared, and all of these pension
- It's all of the U.S. public pension funds that are over 1 billion in assets.
NM
New Mexico 2025 Regular Session
IC - Investments and Pensions Oversight Oct 8th, 2025
Investments & Pensions Oversight Committee
Transcript Highlights:
- On the next slide, you'll see this experience of public pension funding levels.
- The public pension community, as a group, was fully funded.
- New Jersey has developed a policy to fully fund their pension plans.
- Some of the well-funded pension funds across the country have variable rates.
- Each pension fund across the country is different.