Pension Council sets contribution rates that will jump up in 2015 for state workers, taxpayers

Contribution rates for state pensions are going up next year for Washington state employees, state government and local governments. The Pension Funding Council, which includes budget writers and the state director of retirement systems, agreed Monday to take six years to buy down new obligations in the system that runs more than a half-dozen plans for public-sector workers.

The new costs are caused by retirees living longer. Assumptions devised by state Actuary Matt Smith show that a worker retiring in 20 or 30 years will live up to two years longer than those retiring today, which drives up pension costs. State investment returns also are assumed to be falling in the long term, which requires more money to be put into the system.