Concerning cost-of-living adjustments for plan 1 retirees of the teachers' retirement system and public employees' retirement system.

SB 5113 establishes a new annual cost-of-living adjustment (COLA) for retirees in Plan 1 of Washington’s Teachers’ Retirement System and Public Employees’ Retirement System, effective July 2026. It uses the Seattle-area Consumer Price Index to calculate yearly increases, capping annual adjustments at 3% and ensuring payments never fall below the original benefit amount. The bill consolidates past COLA costs into a 15-year funding plan while keeping future benefit improvements on a standard 10-year amortization schedule. This directly affects current and future retirees in these systems who have been enrolled for at least one year, providing predictable, inflation-linked increases to their monthly retirement payments.