State pension funding at 96%
Public employees in Washington State can take comfort in the security of their retirement funds. Our state pension system, administered through the Department of Retirement Systems, is 96% funded. This places us among the top 5 pension systems in the nation. The Office of the State Actuary calculates this funding status yearly.
Washington is a leader in designing and maintaining sustainable public pensions. Our state is one of the first to use hybrid defined contribution/defined benefit plans. Combined with the investment success of the Washington State Investment Board, these innovations have landed Washington’s system of public pensions among the top in the nation.
Your pension is funded primarily by investment gains on the contributions you and your employer make during your working career. Over the last decade, DRS pension funds have returned a net 9.26% a year. Every $100 paid to you as a retiree comes from three sources:
• $10 from when you were working
• $20 from your employer
• $70 in investment gains
Our pension system is governed and overseen by a variety of experts and entities, including:
• Washington State Legislature
• Select Committee on Pension Policy
• Office of the State Actuary
• Law Enforcement Officers’ and Fire Fighters Plan 2 Retirement Board
• Pension Funding Council
• Washington State Investment Board
Together, these groups create policies, perform valuations, determine health and funding status, evaluate funding assumptions and contribution rates and invest responsibly, helping your funds grow. Find out more about these groups or listen to this podcast about how pensions are guaranteed.
