Chris Gildon — Voted aye on the motion to elect a chair.
Timm Ormsby — Representative Timm Ormsby was introduced and then identified himself as representing the House Democratic Caucus.
Timm Ormsby — The chair calls on Representative Ormsby to proceed.
Timm Ormsby — Asked whether motions are appropriate at this point in the agenda and prepared to move a motion.
Timm Ormsby — Moved to maintain the current prescribed long-term economic assumptions.
Timm Ormsby — Thanked agencies and groups involved in pension policy and administration before supporting the motion.
Timm Ormsby — Said the pension system is well managed and explained why he supports maintaining the current assumptions.
Timm Ormsby — Stated his support for maintaining the current long-term economic assumptions.
Timm Ormsby — Voted aye on the motion.
Timm Ormsby — His motion to maintain current assumptions was adopted.
Timm Ormsby — Recognized to make a motion on the premium rate item.
Timm Ormsby — Moved to adopt the recommended contribution rate of 0.58%.
Timm Ormsby — Spoke in support of maintaining the current premium rate and emphasized stability for the program.
Timm Ormsby — The motion being voted on is identified as Representative Ormsby's motion.
Timm Ormsby — Voted aye on the motion.
Timm Ormsby — Voted aye in the roll call on electing a chair.
Timm Ormsby — Voted aye on the motion to elect a chair.
Travis Couture — Was invited to introduce himself next.
Travis Couture — Referenced as chair of the Select Committee on Pension Policy.
Travis Couture — Representative Couture was included in the roll call voting sequence, first voting aye on a motion and then being listed again during the roll call vote to elect a chair.
June Robinson — June Robinson was introduced as present, then identified herself as the State Senator for the 38th Legislative District and Chair of Ways and Means.
June Robinson — Speaker says the association prefers Senator Robinson's bill and wants it to advance.
June Robinson — June Robinson participated in the meeting by seconding motions and voting aye on them, including a vote to elect a chair.
SB5357 — Referenced as the 2025 legislation that paused all Plan 1 funding for four years and increased the assumed rate of return.
Luke — Luke concludes his presentation and hands the discussion over to Matt.
Luke — Will speak to actuarial perspectives on the program.
Matt — Matt presents the recommendation on the investment rate of return and explains the assumption’s role in modeling future returns for the commingled trust fund.
Matt — Matt was discussed in relation to the long-term return assumptions: he was credited with laying them out well, and it was added that he would likely view some of the assumptions as slightly high in some areas and slightly low in others, but generally reasonable.
Dave Reich — Dave Reich of the Economic and Revenue Forecast Council is introduced and then begins his testimony, indicating he will present the council’s perspective on the recommendations and share his screen to discuss the issues, including inflation and the shorter time horizon.
Dave — Closed his remarks and invited questions.
David Schumacher — David Schumacher, speaking for the Washington State Investment Board, explained that the board’s inflation assumption is part of its capital market assumptions and strategic asset allocation process. He said the process is open and shared with OSA, OFM, and others, and noted that the board’s inflation assumption is 2.5% over the next 15 years, a national figure. He added that differences in other assumptions may reflect local, regional, or timing factors, but the figures are generally within a similar range. Schumacher also said both the SIB and related groups have arrived at a 7.25% overall return assumption, which he characterized as reasonable, and closed by offering the SIB as a resource to the Pension Funding Council and related groups.
Ben Vecti — Ben Vecti presented an overview of Washington’s long-term services and supports trust program, explaining its origins in 2014 policy research aimed at protecting the Medicaid budget, shielding middle-class families from long-term care costs, and creating a financially sustainable, affordable public benefit. He described how the program was enacted in 2019 as the Altus Trust Act and later renamed the WAC CARES Fund, then outlined several legislative corrections: a 2022 near-retiree pathway for people born before 1968, a 2024 portability fix allowing contributors with at least three years of payments to continue coverage and claim benefits after leaving the state, and a 2025 change addressing benefit limitations and public demand for more coverage. He also noted that the program is self-funded, that an initial general fund loan was repaid at the end of 2023, and that the 2025 legislature created a framework for a supplemental private market expected to launch in late 2026 or early 2027.
Michael Moran — Introduced as a public commenter speaking on behalf of the Washington State School Retirees.
Candace Bach — Candace Bach, speaking during public comment, said her organization generally supports the well-managed and well-resourced pension system but urged caution about adopting more aggressive long-term economic assumptions. She argued that in a difficult budget environment, overfunding pensions could divert scarce resources from current services, create unnecessary sunk costs, and push future rates and funding levels too high, potentially beyond 100%.
Mike Moran / Michael Moran — Identifies himself and says he is speaking on behalf of the Washington State School Retiree Association.
Michael Moran / Mike Moran — Concludes his public comment and thanks the council.
Candace — Next public commenter is introduced after Michael concludes.
Candace Spock — Introduces herself as government relations director for the Association of Washington Cities.
Mike Moran — The chair asks whether there are questions for Mike or Candace after public comment.
Ms. Bach — Ms. Bach was praised for speaking eloquently about the challenges of delivering services in this area during this time.
Chris Gildon — Introduced himself as the senator for the 25th legislative district.
Chris Gildon — The chair calls on Senator Gildon to comment next.
Chris Gildon — Said he was influenced by OSA comments supporting the current course and reasonable rates.
Chris Gildon — Argued for a long-term view and acknowledged short-term pain versus future risk.
Chris Gildon — Opposed the motion, warning that underfunding would cost more later.
Chris Gildon — Voted nay on the motion; transcription says 'Gilgely,' corrected to Gildon.