Statement from State Treasurer Mike Pellicciotti on State Pension Funding in Today’s Budget
It is a priority for State Treasurer Mike Pellicciotti that Washington remain on track to fully fund our state pension obligations. Today the Governor signed the legislature’s budget that appropriates $800 million in state funds to reduce the amount of unfunded actuarial accrued liability in the Teachers’ Retirement System plan 1 fund on June 30, 2023.
“The people of a Washington can thank the legislature and Governor for showing the country that our state is one of the more responsible states when it comes to pension funding. Today’s budget that dedicates an extra $800 million to shore up our future pension obligations is a great step in reducing our state debt obligations, maintaining our strong credit, and saving the people of Washington millions of dollars in future costs. By the end of this decade, I am dedicated to having Washington become one of the few states in the nation to fully fund our state pensions. Today is a key moment in keeping that goal on track.”
The legislature’s decision to reduce Washington’s unfunded liability will benefit the people of Washington by helping maintain the state’s high credit ratings, which will reduce borrowing costs for funds to support future capital projects.