Budget & Taxes (Pensions)

HB 1467 establishes specific funding requirements for Washington state's public pension systems, directly affecting state employees, teachers, law enforcement officers, firefighters, school staff, and public safety workers. It mandates that pension plans be fully funded by set deadlines (e.g., law enforcement/firefighters plan 1 by June 2024) and requires spreading unfunded costs over 10-year or 15-year periods using actuarial methods. The bill details how contribution rates for employers (like the state) must be calculated to cover normal costs, amortize funding gaps, and pay for past benefit changes without exceeding set minimum or maximum rates. These changes apply to multiple systems, including public employees', teachers', and school employees' retirement plans, ensuring predictable long-term funding.

HB 2023 creates a work group to study how investment income is taxed under Washington's business tax code (RCW 82.04.4281), following a court decision that created uncertainty about whether investment income qualifies for a tax deduction. The bill temporarily blocks the Department of Revenue from taxing investment income for non-financial businesses (e.g., individuals, arts organizations, or pension funds) until July 2026, while requiring the work group to provide legislative recommendations by November 2025. The work group includes representatives from investment firms, arts organizations, pension funds, business associations, and accounting groups. It expires July 1, 2026, for the tax freeze and November 30, 2026, for the work group.