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Home » Budget » State budgets » 2021-23 Gov. Inslee's proposed budgets » Agency recommendation summaries » Department of Retirement Systems

Department of Retirement Systems

  Annual FTEs General Fund State Other Funds Total Funds
  (Dollars in Thousands)
Estimated Expenditures 263.2 0 74,098 74,098
2021-23 Maintenance Level 259.1 0 74,057 74,057
Difference from 2019-21 (4.1) 0 (41) (41)
% Change from 2019-21 (1.6%) 0.0% (0.1%) (0.1%)

2021-23 Policy Other Changes

CORE: Pension Admin Modernization 13.0 0 6,238 6,238
Diversity/Equity/Inclusion Resource 1.0 0 272 272
Reduce Use of Last 4 Digits of SSN 0.30 0 181 181
Pension Benefit Calculations 1.6 0 286 286
2021-23 Policy Other Changes Total 15.9 0 6,977 6,977

2021-23 Policy Comp Changes

Pension Adjustments, nonrate 0.0 0 36 36
State Employee Benefits 0.0 0 (93) (93)
Temporary Layoffs and Other Savings 0.0 0 (2,060) (2,060)
Non-Rep General Wage Increase 0.0 0 (390) (390)
2021-23 Policy Comp Changes Total 0.0 0 (2,507) (2,507)

2021-23 Policy Central Services Changes

Archives/Records Management 0.0 0 8 8
Audit Services 0.0 0 (6) (6)
Legal Services 0.0 0 (23) (23)
CTS Central Services 0.0 0 73 73
DES Central Services 0.0 0 25 25
OFM Central Services 0.0 0 328 328
Self-Insurance Liability Premium 0.0 0 1 1
2021-23 Policy Central Services Changes Total 0.0 0 406 406
Total Policy Changes 15.9 0 4,876 4,876
2021-23 Policy Level 275.0 0 78,933 78,933
Difference from 2019-21 11.8 0 4,835 4,835
% Change from 2019-21 4.5% 0.0% 6.5% 6.5%

Policy Changes

CORE: Pension Admin Modernization

This funding supports the replacement of legacy systems that serve over 835,000 current and former public employees and process benefit payments totaling over $5.6 billion a year to approximately 197,000 annuitants, most of whom reside in Washington state. The original 1990s design and underlying architecture of these systems make them difficult to maintain and enhance. There is a declining pool of resources to support this technology, creating a high risk of system failure that increases each year. These systems are also difficult to efficiently modify for changes in state or federal pension law. (Dept of Retirement Systems Expense - State, Deferred Compensation Admin Account - Non-Appropriated)

Diversity/Equity/Inclusion Resource

The Department of Retirement Systems (DRS) is committed to workplace diversity and a culture of equity and inclusion. A diverse workforce is more than just hiring the right people; it takes ongoing work and dedication to support an environment where diverse backgrounds, cultures and perspectives are respected and people can perform at their best. This funding will provide a diversity, equity and inclusion (DEI) officer to plan and implement strategies for initiatives, programs, policies, training and communication that support DEI, and to ensure that it remains an integral part of the agency’s culture. (Dept of Retirement Systems Expense - State, Deferred Compensation Admin Account - Non-Appropriated, OASI Revolving Account - Non-Appropriated)

Reduce Use of Last 4 Digits of SSN

This funding will allow the Department of Retirement Systems to minimize the use of the last four digits of a member’s social security number (SSN). This information was added to the definition of personal information for the purposes of data breach notification by Senate Bill 6187 (Chapter 65, Laws of 2020). DRS previously removed the full SSN from numerous processes, typically replacing it with the last four digits. Now is the time to remove the last four digits so that the only “use” of a SSN occurs when it is required by the Internal Revenue Service or through secure transactions with members or their public employer. (Dept of Retirement Systems Expense - State)

Pension Benefit Calculations

This item will provide resources for the department to implement agency request legislation to protect pension benefit calculations from the negative effect of temporary furloughs and other employer budget reductions. (Dept of Retirement Systems Expense - State)

Pension Adjustments, nonrate

This funds the potential impact of Department of Retirement Systems request legislation on pension service credit and benefit calculation. It will prevent budget reductions such as temporary layoffs from negatively affecting employee retirement benefits. (Deferred Compensation Admin Account - Non-Appropriated, Dept of Retirement Systems Expense - State)

State Employee Benefits

Health insurance funding is provided for state employees who are not represented by a union, who are covered by a bargaining agreement that is not subject to financial feasibility determination, or who are not part of the coalition of unions for health benefits. The insurance funding rate is $988 per employee per month for fiscal year 2022 and $1,018 per employee per month for fiscal year 2023. (Dept of Retirement Systems Expense - State, Deferred Compensation Admin Account - Non-Appropriated)

Temporary Layoffs and Other Savings

This item reflects savings achieved from temporary layoffs or similar actions. (Deferred Compensation Admin Account - Non-Appropriated, Dept of Retirement Systems Expense - State, OASI Revolving Account - Non-Appropriated)

Non-Rep General Wage Increase

This reflects savings from the cancellation of the July 1, 2020 general wage increase for some non-represented, non-classified employees. (Deferred Compensation Admin Account - Non-Appropriated, Dept of Retirement Systems Expense - State, OASI Revolving Account - Non-Appropriated)

Archives/Records Management

Adjustments are made for each agency’s anticipated share of charges for archives and records management services provided by the Secretary of State’s Office. (Dept of Retirement Systems Expense - State)

Audit Services

Adjustments are made for each agency’s anticipated cost of audits performed by the State Auditor’s Office. (Dept of Retirement Systems Expense - State)

Legal Services

Adjustments are made for each agency’s anticipated cost of legal services provided by the Attorney General’s Office. Because legal services expenditures are based on consumption, funding provided in the central service model is not all inclusive. (Deferred Compensation Admin Account - Non-Appropriated, Dept of Retirement Systems Expense - State)

CTS Central Services

Adjustments are made to reflect each agency’s anticipated share of charges for Microsoft 365 G5 licenses contracted for state agencies by the Consolidated Technology Services agency. This contract allows the state to achieve economies of scale and administrative efficiencies in the management of licenses. (Dept of Retirement Systems Expense - State, Deferred Compensation Admin Account - Non-Appropriated)

DES Central Services

Adjustments are made to reflect each agency’s anticipated share of charges from the Department of Enterprise Services (DES) for campus rent, utilities, parking, and contracts; capital project surcharges; financing cost recovery; public and historic facilities; real estate services; risk management services; personnel service rates; the Perry Street child care center; small agency services; and the department’s enterprise applications. (Deferred Compensation Admin Account - Non-Appropriated, Dept of Retirement Systems Expense - State)

OFM Central Services

Adjustments are made to reflect each agency’s anticipated share of charges for existing statewide financial applications, One Washington, and other central services provided by the Office of Financial Management. (Deferred Compensation Admin Account - Non-Appropriated, OASI Revolving Account - Non-Appropriated, Dept of Retirement Systems Expense - State)

Self-Insurance Liability Premium

Adjustments are made to reflect each agency's share of actuarily projected costs of the Self-Insurance Liability Account. This includes adjustments to existing funding levels as well as enhancements for anticipated liabilities in the 2021-23 biennium. (Dept of Retirement Systems Expense - State)