05/04/2026
End of 2026 Session Legislative Update – By Emmett Mills
On March 30, Governor Bob Ferguson signed Substitute Senate Bill 5862, which will provide a one-time 3% cost-of-living adjustment to TRS 1 and PERS 1 retirees not to exceed $110 per month. This means that every retiree with a state-managed pension will see their monthly benefit increase at the end of July (except those who retired after July 1, 2025).
The Governor also signed the state’s supplemental operating budget, which maintains a critical benefit for Medicare eligible retirees who purchase health insurance through the Public Employees Benefits Board (PEBB). Earlier this year, the Senate passed a budget that would have reduced the benefit from $183 to $150 per month. While the proposed cut didn’t make it into the final budget, we fear that the legislature might revisit the idea next year. For this reason, it is crucial that current and future retirees understand how the benefit works.
The state subsidizes the Medicare Supplement and Medicare Advantage plans offered through PEBB. The subsidy automatically reduces retiree premiums by 50%, not to exceed $183 per month. Without this benefit, all Medicare eligible retirees who purchase insurance through PEBB would see their premiums either double or increase by $183 per month. Over the course of a 20-year retirement, the benefit could save an individual retiree almost $44,000 dollars.
Unlike pensions, our health insurance benefit is not contractually guaranteed, meaning that the legislature could reduce or eliminate it. With another budget deficit likely in 2027, this possibility is very much on the table. Together, we must spend the rest of this year educating our state legislators. All WSSRA units are strongly encouraged to invite their local legislators to their meetings to discuss how the PEBB Medicare benefit keeps health insurance affordable for retired teachers and school employees.
